Cobisa start drawing close

By BRAD KELLAR
Herald-Banner Staff

GREENVILLE July 11, 2007 12:54 am

— The start of construction on the Cobisa electric generating plant is now expected in the spring of next year, and the facility could be up and running about two years later.
Greg Platt, vice president of the Houston-based Cobisa Corporation, said the company hopes to make an announcement soon of a partner in the estimated $500 million project.
“We’ve been working behind the scenes very diligently in order to bring this project to fruition,” Platt said. “It is our sincere hope that we can begin working on this project very soon. We are fully permitted and ready to start construction.”
Platt presented a progress report on the plant to a large audience gathered for Tuesday’s “Wake Up To The Issues” breakfast, sponsored by the Greenville Chamber.
In the summer of 2002, officials with Cobisa announced plans to build a 1,750 megawatt natural gas-fired electric generating plant on 104 acres off of U.S. Highway 69 just north of the Greenville city limits.
Cobisa agreed to pay for an upgrade of the city's water supply line to Lake Tawakoni and buy the water it needs to operate the plant from the city. The company also agreed to a $1 million contribution to the City of Greenville when construction begins on the plant and to ask for the property to be annexed into the city limits.
Company officials initially thought construction would begin in 2004, then 2005, and 2006, and take about two years to complete. Once finished, the plant would provide electricity to the Electric Reliability Council Of Texas (ERCOT), the organization which runs the state’s power grid.
Platt admitted the process had taken longer than anticipated due to a variety of factors, including perceived competition from TXU when it first announced it was building several coal-fired plants, then changed plans.
Platt said the company has also been seeking an investment partner. Cobisa launches a project, then sells a controlling interest to the partner. With a similar plant in Forney, Cobisa sold 95 percent of the facility to Florida Power and Light.
“That’s really what’s been kind of holding us up,” Platt said.
However, a potential partner has shown interest, enough to where Platt hoped to be able to make the announcement Tuesday, although he said the company has asked for about another month before going public.
Once the Cobisa plant does get underway, Platt said the City of Greenville, the Greenville Independent School District and Hunt County will all benefit. For example, Platt said upon completion, the plant is expected to raise the city’s property tax roll by $500 million.
“That means every year, the project will see a tax bill of $15 million,” Platt said. “That’s every single year the project operates.”
Approximately 1,000 jobs will be created during the construction phase, with a payroll of $30 million. About 30 employees will work at the plant once completed, with an estimated $2 million payroll.
The company will be paying for the water, electric and gas infrastructure to the site, which is already zoned for industrial development.
“That can help kick start additional opportunities in that area,” Platt said.
And, while it has taken a while to get to this point, Platt said the cooperation the company has experienced with local government and business officials has made things easier.
“We can’t say enough about the support we’ve had,” Platt said.