Arkansas cooperative begins plans to build a 900-MW gas plant in SPP footprint

The Arkansas Electric Cooperative Corporation recently announced it has started the process to bring a 900-MW natural gas-based generation plant online in northeast Texas by 2029.

Construction of the facility, located in the Southwest Power Pool footprint, is slated to begin in summer 2026 as part of AECC's plan to address wholesale generation needs.

"SPP evaluates proposed new resources, such as AECC's new 900-MW gas plant, as part of our normal transmission and operational planning processes," SPP spokesperson Meghan Sever said Aug. 20. "We will work closely with our members to ensure the proper operating procedures and transmission infrastructure are in place to reliably accommodate the additional generation and any associated fuel mix changes. The new generating facility, which will be operational in 2029, will bring economic benefits to the region and help ensure reliable operation of the bulk electric system."

SPP market share

Historically, coal-fired generation led the SPP fuel mix until recent years when wind-powered generation started climbing and topped the annual mix three times in the last four years – 2020, 2022 and 2023. However, gas-fired generation started competing with coal and wind in 2023, leading the SPP fuel mix for June 2023, September 2023 and July 2024. So far in August, gas has averaged over 36% of market share, compared to 31.5% coal and 24.4% wind, according to SPP data.

Even though gas ranked third for energy production in 2023, it has led SPP's generating capacity at 46.8% for the first half of 2024, followed by coal at 32.3% and wind at 8.2%, according to SPP.

The SPP generation queue lists over 115.495 GW total projects, including around 1.4 GW of gas that are in the Definitive Interconnection System Impact Study stage. However, none of the gas projects currently listed in the queue are located in Texas.

The S&P Global Commodity Insights North American Electricity Short-term Forecast projects SPP's monthly gas generation to average 6.45 GW in 2028, behind wind at 17.945 GW and ahead of coal at 6.12 GW.

Location, location, location

"The facility in Morris County, Texas, is crucial to maintaining reliable energy resources," AECC President/CEO Vernon "Buddy" Hasten said in an Aug. 15 statement. "AECC continues to review proven, readily dispatchable power generation technologies to provide our members with reliable, affordable electricity."

AECC evaluated potential site locations in Arkansas prior to selecting the Texas location according to Hasten, adding the Morris County site's proximity to natural gas pipelines and transmission are the primary factors in the location selection.

Nearby pipelines include the Natural Gas Pipeline of America, Gulf Crossing Pipeline and Enable Gas Transmission.

The two-turbine, simple cycle generation facility will sit on approximately 100 acres.

"This new state-of-the-art asset will be among the highest-performing, lowest-emitting and most efficient natural gas plants in AECC's fleet," AECC said in the statement.

SPP has members in 14 states: Arkansas, Colorado, Iowa, Kansas, Louisiana, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, Texas and Wyoming.