Southern Power, a subsidiary of Southern Company, owns the the proposed biomass power plant, which has been under construction since November 2009 and will be operational in mid-2012.
Austin Energy has signed a 20-year power purchase agreement to buy the electricity generated by the facility.
Once operational, the plant will produce 100MW of electricity and use 1.1 million tons of wood waste per year.
Southern Power president and CEO Oscar Harper said Southern Power provides customers the affordable, reliable energy they need through modernization and innovation.
"The Nacogdoches Generating Facility will provide electric service to the citizens of Austin in a cost-effective, reliable and environmentally responsible manner," Harper said.
Southern Company is engaged in developing and deploying smarter and more efficient energy technologies.
