092420 Press Release - Gibbons Creek Sale Update Io`F FOR IMMEDIATE RELEASE
DENTON Ryan Adams • (940) 349-8565 •Rvan.AdamS(c cityofdenton.com
Texas Municipal Power Agency and Charah Solutions Finalizing Execution of
Asset Purchase Agreement for the Gibbons Creek Steam Electric Station and
Reservoir
Prospective Buyer Would Not Restart Coal Plant; Decommissioning Process Would Begin
DENTON, TX, Sept. 24, 2020— The Texas Municipal Power Agency("TMPA"), of which the
City of Denton is a partial owner and beneficiary, has issued a joint press release (attached) with
Charah Solutions announcing they are finalizing execution of an asset purchase agreement for
the Gibbons Creek Steam Electric Station and Reservoir.
A municipally owned utility, TMPA was created in 1975 by the cities of Bryan, Denton,
Garland, and Greenville, Texas (the "Member Cities"), for the purposes of generating, selling,
and transmitting electric power, on a wholesale basis, to the Member Cities. TMPA constructed
and owns:
• the retired Gibbons Creek Steam Electric Station(the "Power Plant"),
• an adjacent 11,000-acre lignite mine, which is undergoing mine reclamation
operations (the "Mine"), and
• an electric transmission system, consisting of hundreds of miles of transmission
lines, and associated electrical substations, located in the vicinities of the Power
Plant and the Member Cities (the "Transmission System").
The transaction being considered will involve the conveyance to Gibbons Creek Environmental
Redevelopment Group, LLC ("CCERG"), a subsidiary of Charah Solutions, Inc., of the Power
Plant site, a 6,166-acre area that includes the retired Power Plant, cooling reservoir, and
associated landfills and ash ponds. Not included in the conveyance, and to be reserved to
TMPA, are the Mine and the Transmission System.
GCERG will be responsible for the shutdown and decommissioning of the retired Power Plant, as
well as for the performance of the environmental remediation and closure operations, associated
with the Power Plant's landfills, and ash ponds. The transaction is expected to save TMPA and its
Member Cities millions of dollars in avoided environmental remediation costs.
While GCERG's site redevelopment options do not include a re-opening of the Power Plant,which
shall be decommissioned,they do include renewable energy, agricultural, commercial or industrial
redevelopment opportunities.
This transaction is still in the negotiation stage. Once negotiations are completed, and a final
agreement is posted for consideration and action by the TMPA Board, the proposed agreement
will become public information, and additional details of the transaction will be available for
public consideration. The agreement will not be finalized until it is considered and approved by
the governing bodies of the Member Cities.
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Visit www.cityofdenton.com for more news and to stay updated.
2
FOR IMMEDIATE RELEASE
Charah,
Solutions
Charah Solutions Finalizing Execution of Agreement with TMPA for the Acquisition,
Remediation and Redevelopment of Gibbons Creek Steam Electric Station and Reservoir
Will Provide Turnkey Environmental Risk Transfer Services to Remediate
Existing Ash Ponds and Landfills and Redevelop Property;
The Coal Plant Will Not Be Restarted and Will Begin the Decommissioning Process
LOUISVILLE, KY(September 24, 2020)—Charah°Solutions, Inc. (NYSE: CHRA) (the "Company"), a
leading provider of environmental and maintenance services to the power generation industry, today
announced that it is negotiating an Asset Purchase Agreement with the Texas Municipal Power Agency
(TMPA)to acquire, remediate and redevelop the Gibbons Creek Steam Electric Station and Reservoir in
Grimes County, Texas ("Gibbons Creek"). TMPA, which was created to supply electricity on a wholesale
basis to its member cities of Bryan, Denton, Garland and Greenville, operated Gibbons Creek from its
construction in 1982 until 2018.
As part of this agreement, Charah Solutions, through its subsidiary Gibbons Creek Environmental
Redevelopment Group, LLC (GCERG), will take ownership of the 6,166 acre area which includes the
closed power station, the 3,500 acre reservoir, dam and spillway and assume all environmental
responsibilities. GCERG will be responsible for the shutdown and decommissioning of the coal power
plant as well as performing all environmental remediation work for the site landfills and ash ponds.
As a sustainability leader in utility services for over 30 years, Charah Solutions is dedicated to preserving
natural resources in an environmentally conscious manner through projects such as this with TMPA.
Sustainability is a Charah Solutions core value, and the Company focuses its business on developing
innovative solutions to complex environmental issues for the betterment of the planet, the communities in
which it operates and its customers.
According to Scott Sewell, Charah Solutions President and CEO, "Our Environmental Risk Transfer
services represent an innovative solution designed to meet the evolving and increasingly complex needs
of our utility partners. Many utilities are experiencing an increased need to retire and decommission older
or less economically viable generating assets while minimizing costs and maximizing the value of the
assets and improving the environment. This is a perfect example of Charah Solutions providing a custom
approach for these complex projects, as we are able to provide not only the environmental remediation
expertise needed to meet regulations but also bring the right partners to the table to redevelop the
property while creating local jobs and lowering the cost for our utility partner."
GCERG's site redevelopment options do not include a restart of the coal plant but do include renewable
energy, agricultural, commercial or industrial redevelopment opportunities. The Gibbons Creek Reservoir
RV Park and campground will continue to operate going forward as it is a very popular recreational
destination for local lake enthusiasts, regularly drawing over 200 people per day.
"We are pleased to work with Charah Solutions to reduce the environmental risk and costs for TMPA and
its member cities and ratepayers while redeveloping the plant and property to expand economic activity
and support the tax base, including the Grimes County Schools," said Bob Kahn, TMPA General
Manager. "The transaction will save member cities millions in expenses associated with decommissioning
and environmentally remediating the plant site."
About Charah Solutions, Inc.
With 30 years of experience, Charah° Solutions, Inc. is a leading provider of environmental and
maintenance services to the power generation industry, with operations in fossil fuel and nuclear power
generation sites across the country. Based in Louisville, Kentucky, Charah Solutions assists utilities with
all aspects of managing and recycling ash byproducts generated from the combustion of coal in the
production of electricity as well as routine power plant maintenance and outage services for the fossil fuel
and nuclear power generation industry. The Company also designs and implements solutions for ash
pond management and closure, landfill construction, fly ash sales, and structural fill projects. Charah
Solutions is the partner of choice for solving customers' most complex environmental challenges, and as
an industry leader in quality, safety, and compliance, the Company is committed to reducing greenhouse
gas emissions for a cleaner energy future. For more information, please visit www.charah.com.
About Texas Municipal Power Agency
Texas Municipal Power Agency (TMPA) is a municipally owned utility created by its member cities of
Bryan, Denton, Garland and Greenville, Texas. In addition to Gibbons Creek, TMPA owns a lignite mine
that is undergoing reclamation, and owns approximately 350 circuit miles of transmission lines (both 345
kV and 138 kV), 1 mile of 69kV transmission line, and 13 substations. For more information, please visit
http://www.texasmpa.org/default.aspx
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21 E of the Securities Exchange Act of 1934. All statements, other than
statements of historical facts, included in this press release that address activities, events or
developments that the Company expects, believes or anticipates will or may occur in the future are
forward-looking statements. These forward-looking statements are identified by their use of terms and
phrases such as "may," "expect," "estimate," "project," "plan," "believe," "intend," "achievable," "anticipate,"
"will," "continue," "potential," "should," "could," and similar terms and phrases. These statements are
based on certain assumptions made by the Company based on management's experience and
perception of historical trends, current conditions, anticipated future developments, and other factors
believed to be appropriate. Such statements are subject to a number of assumptions, risks, and
uncertainties, many of which are beyond the control of the Company, which may cause actual results to
differ materially from those implied or expressed by the forward-looking statements. Any forward-looking
statement speaks only as of the date on which such statement is made, and the Company undertakes no
obligation to correct or update any forward-looking statement, whether as a result of new information,
future events or otherwise, except as required by applicable law.
Investor Contact
Roger Shannon
Charah Solutions
(502) 245-1353
ir(@charah.com
Media Contacts
Keaton Price
Charah Solutions
(502) 593-4692
media(a)charah.com
Bob Kahn
TMPA General Manager
(936) 873-1100
BKahn(a)texasmpa.org