CenterPoint Energy Inc. (NYSE: CNP) is moving forward with its electricity project, despite opposition from NRG Energy (NYSE: NRG) and Calpine Corp. (NYSE: CPN).
The Public Utility Commission of Texas unanimously declined complaints filed by both power generators to prevent the project. NRG and Calpine both argued the project is too costly, an invasion of private property, and unnecessary.
According to CenterPoint CEO Scott Prochazka, the project will provide Houston area businesses and homes with long-term electricity capacity and is on track to be built by 2017 or early 2018.
The project consists of building a double-circuit, 345-kilovolt line that spans 130 miles and upgrades three stations. Additionally, the project includes upgrading existing lines. Prochazka states, “You want the area to keep growing and be vibrant, and continue to attract businesses here. They have to be comfortable that their power is going to continue to be reliable and readily available out into the future. That’s the message you create by doing this project.”
CenterPoint will build the $300 million southern track, and the northern track will be built by Garland Power & Light and Cross Texas Transmission.