Gas

Arkansas electric co-op invests $1B for over 1 GW of new natural gas generation

The plant will be AECC’s biggest generating facility, and its first outside Arkansas, once built.
Arkansas electric co-op invests $1B for over 1 GW of new natural gas generation
(A schematic of Arkansas Electric Cooperative Corp.'s planned $850 million gas plant near Naples, Texas.)

Arkansas Electric Cooperative Corp. (AECC) announced it is investing close to $1 billion for over 1 gigawatt (GW) of new natural gas generation.

The cooperative recently purchased 100 acres outside Naples, Texas, where it plans to break ground in 2026 on a $850 million gas plant. The plant will be AECC’s biggest generating facility, and its first outside Arkansas, once built. The Naples plant is a 900 MW, two-turbine, simple cycle plant, and it will be located near three existing pipelines and electric transmission. Commercial startup is expected by November, 2028, AECC said, and the facility will operate in the Southwest Power Pool’s wholesale electricity market.

Additionally, AECC is investing $93 million in an effort to expand its Thomas B. Fitzhugh Generating Station from 170 MW to 270 MW, spurred by a forecasted SPP capacity shortage expected to begin next year. The plant will receive two new units, and is expected to reach commercial operation by the end of 2025, AECC said.

AECC said the new generation was necessitated by “steady, normal consumer load growth” of around 1.5% to 2% in the region each year, in addition to the planned retirement of about 1,200 MW of coal by 2030.

“Natural gas is an accessible, dispatchable resource we can rely on, and it gets full accreditation in SPP to meet capacity to serve the market,” said Jonathan Oliver, AECC’s chief operations officer. “Plus, gas prices are fairly stable now, offering members a least-cost reliable resource.”

In addition to new gas generation, AECC has been introducing new solar as well. The 122-MW Woodruff County Solar Project, interconnected through existing infrastructure at the adjacent and retired Carl Bailey Generation Station, began operations in October.