A Koch Energy Services Unit to Buy Natural Gas Plant in Texas
A Koch Energy Services LLC unit will buy a natural gas-fired power plant in Texas, the company said on Tuesday, confirming that the purchase of the 1,055-megawatt Odessa Power plant from an affiliate of Energy Capital Partners LLC will be the Koch unit’s first foray into the power generation market.
Koch Energy Services itself is a unit of Koch Industries Inc , of the largest privately held companies in the United States. The plant is near the Permian Basin of West Texas where energy companies tapping into tight deposits of oil and gas have a growing and voracious appetite for electricity.
Koch Industries is a closely held company that does not reveal much information about its many subsidiaries.
The deal comes with some element of regulatory risk as the Texas Public Utility Commission (PUC) and the grid overseen by the Electric Reliability Council of Texas (ERCOT) are looking for ways to clarify wholesale price signals to entice developers to build much-needed new generation.