New coal fired power facility

Goliad County, Texas, June 17, 2010–International Power and South Texas Electric Cooperative (STEC) selected the joint venture team of Burns & McDonnell, Zachry Industrial and Mitsubishi Power Systems to design and build the Coleto Creek Unit 2 coal-fired power facility. The 650-megawatt, ultrasupercritical power facility will be the second unit of the Coleto Creek power station, located in Goliad County, Texas.

Construction is estimated to begin in late 2011. The joint venture partners will be responsible for engineering design, procurement of equipment and materials and construction of the facility. Coleto Creek 2 will be built with air quality control systems that will enable the facility to comply with the most stringent state and federal emissions standards.

The $1.4 billion Coleto Creek 2 power station will be jointly owned by International Power and STEC. The new power facility will be operated by International Power. STEC, a generation and transmission cooperative supplying eight member distribution cooperatives serving 170,000 customers located in 65 counties throughout South Texas, will own 49 percent of the facility.

The EPC joint venture team will establish an employment office to recruit approximately 1,000 local workers for the project.

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