The Lower Colorado River Authority (LCRA) has signed an agreement to buy a portion of the electricity from a generation plant near Waco that will burn crushed coal.

LCRA has reached a deal with Sandy Creek Energy Associates (SCEA) for a combined 22.28 percent of the total plant output from the Sandy Creek Energy Station, a 900-megawatt pulverized coal facility under construction near Waco.

Terms of the deal were not revealed. LCRA is the wholesale supplier of electricity for the city of Brenham and the Bluebonnet Electric Cooperative.

In accordance with the Texas Commission on Environmental Quality (TCEQ) and the U.S. Environmental Protection Agency requirements, the facility will employ the best available control technology to minimize emissions and ensure the facility is protective of the environment.

“As the Central Texas economy and population continue to grow, so does the need for new sources of cleaner power,” said Rebecca A. Klein, LCRA’s board chairwoman. “The Sandy Creek Energy Station will extend LCRA’s ability to keep costs down for our wholesale power customers.

“Adding coal-fueled base-load generation helps reduce LCRA’s reliance on power from natural gas, which has more price volatility.”

LCRA is a nonprofit entity that provides electricity at cost-based rates.

Under the agreement, LCRA will purchase an estimated 100 megawatts (11.14 percent) of energy and capacity under a 30-year agreement and an additional 100 megawatts (11.14 percent) in an equity ownership position.

LCRA’s equity interest would be governed by the terms of a participation agreement which LCRA is joining with SCEA and other project owners.

“Given Texas’ robust population and economic growth, and the expected retirement of older, inefficient plants, we are going to need everything, including new nuclear, clean coal, gas, renewables, energy efficiency, and advanced meters, to satisfy our future demand for electricity,” said Barry T. Smitherman, chairman of the Public Utility Commission of Texas.

“An over-reliance on any one source of energy places consumers at risk. I support the addition of new, cleaner coal plants like the Sandy Creek Energy Station, and continue to encourage research, development and investment in new clean coal-related technologies.”

The Sandy Creek Energy Station’s environmental controls will include equipment to control nitrogen oxide, sulfur dioxide and mercury emissions.

It will emit less carbon dioxide per kilowatt-hour than any coal plant currently operating in Texas, LCRA officials said.

SCEA received its air permit from the TCEQ in July 2006.

Construction at the station began last fall in McLennan County and operations are scheduled to begin in 2012.