Entergy Texas, Inc. (ETI) announced that it filed an application with the Public Utility Commission of Texas (PUC) for the construction of Montgomery County Power Station, a 993 MW combined-cycle natural gas unit.

Entergy Texas claimed that fuel savings from the plant, "will pay off the cost of construction after only 10 years of operation – a third of the plant’s lifecycle."

Pending approval from the Public Utility Commission of Texas, Entergy Texas is proposing to begin construction in the first quarter of 2019. Entergy Texas expects the plant to be in service by summer 2021.

Entergy Texas had previously disclosed plans for new utility-owned generation, which prompted EnergyChoiceMatters.com to note in July that advocates seeking to expand retail choice to Entergy had better act fast to preserve any future transition to competition, as new generation means the potential for new stranded costs in any future transition to competition

EnergyChoiceMatters.com noted that Entergy Texas customers pay well above competitive rates in ERCOT (an Entergy Texas customer using 1,000 kWh in August paid $98.89, or nearly 10¢/kWh)

While there is legislative history which stopped a prior transition to competition at Entergy Texas, EnergyChoiceMatters.com noted that such actions occurred before Entergy Texas was part of MISO (and now subject to federal edits for certain policies), and when Entergy Texas rates were below ERCOT competitive rates. Moreover, while certainly there will be heavy lifting associated with any Entergy Texas transition to competition, EnergyChoiceMatters.com mused whether the path to competition was any easier in other favorite targets: Indiana, Wisconsin, Virginia, and (for full choice) California and Michigan.

Entergy Texas serves about 434,000 customers

See EnergyChoiceMatters.com for further discussion of choice prospects at Entergy Texas