2018-027 Gibbons Creek Power Plant UpdateDate: March 9, 2018 Report No. 2018-027
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Update on Gibbons Creek Power Plant
EXECUTIVE SUMMARY:
Currently, the Gibbons Creek coal-fired power plant is scheduled to return to operation by June
1, 2018. Given the projected tight electricity market in ERCOT during the July-August period,
the plant’s operation is expected to be of significant benefit to the member cities and to ERCOT.
The plant is scheduled to shutdown again on September 30, 2018.
The project’s current participants (Bryan, Garland, Greenville and Denton) are
considering/negotiating an offer to purchase Gibbon Creek assets with a possible transaction date
of September 1, 2020. A second offer involving a long-term sale of power from the plant to a
third party is judged to be less attractive but is also being considered.
The member cities with generation entitlement (Bryan, Garland and Denton) continue to evaluate
the feasibility of operating the plant during the summer 2019 period, i.e. prior to implementation
of any sale transaction. Among the factors to be considered are (i) plant performance during
summer 2018, (ii) fuel cost for 2019 operation, and (iii) electric market price projections for
summer 2019. A decision on this item is unlikely to be made until later this year.
Denton’s entitlement in the 470 MW steam electric plant is 21.3% (100 MW) through August 31
and 23.7% (111 MW) thereafter.
STAFF CONTACT:
George F. Morrow, DME General Manager
940-349-8487
gmorrow@cityofdenton.com