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Developers of the natural gas-fired Friendswood energy center in Texas are in purchase talks as one of a few options for their peaker project being proposed in a world of regulatory uncertainty about a forward capacity market in the state.
Kenny Koncaba, CEO of developer Friendswood Energy Genco, told SNL Energy on Dec. 16 that the developer is in active negotiations with three firms pertaining to a possible purchase of the project, and one has made an offer now being considered. Under nondisclosure agreements so mum on whether a sale agreement is imminent, he would not disclose his company's asking price but said $400/kW to $450/kW was approximately the value range for the 350-MW project within the Electric Reliability Council of Texas Inc. footprint.
Located in the city of Houston in Harris County, the Friendswood project is a brownfield project consisting of building two simple-cycle 175-MW units on a site adjacent to a major switchyard operated...