The "Tenaska Project" was a terminated project to develop the Tenaska Brownsville Generating Station and associated water and gas facilities. BPUB recognizes that this was a significant capital project that created many questions among citizens and ratepayers.
Financial Overview
From power plant rate increases
Held for construction costs
Through Bill Reduction Program
Transferred to City of Brownsville
Project Background
Assessing Brownsville's Power Needs
In 2009, the "Imagine Brownsville Comprehensive Plan" was published and established community goals for the next 10 years. BPUB contributed to the "Utilities Plan" section, which acknowledged future needs:
"Beyond 2019, BPUB will need to plan for and implement the most economically effective combination of generated and purchased power supply."
BPUB was exploring opportunities to meet growing energy demand when Tenaska approached BPUB in 2011. As a reputable generation developer who had worked successfully with BPUB for years, Tenaska discussed building a new power plant in Brownsville.
Project Timeline
2009: Comprehensive Planning
The "Imagine Brownsville Comprehensive Plan" identified future energy needs and established community goals. The city of Brownsville, Greater Brownsville Incentives Corporation, Brownsville Community Improvement Corporation, and the Imagine Brownsville Task Force led the plan.
2011: Tenaska Partnership Begins
Tenaska approached BPUB to develop a new power plant in Brownsville. Preliminary agreements were made, and Tenaska created Tenaska Brownsville Partners, LLC to develop the project.
December 2012: Rate Increases Approved
The Brownsville city commission approved rate increases to fund the power plant project, ongoing growth, and operations & maintenance. A percentage of the increases was set aside for constructing the power plant.
2013-2016: TEF Collection Period
BPUB collected $29 million to cover debt service for expected construction costs. These funds became the Tenaska Equity Fund (TEF).
2017-2022: Bill Reduction Program
Funds from the power plant portion of rate increases were returned to customers through a reduction in the Fuel and Energy Charge on their bills. BPUB returned $74.3 million through this program.
February 4, 2020: Project Terminated
Market conditions changed significantly. Renewable energy became more economical than fossil-fueled generation, reducing interest in long-term electric capacity contracts. The project officially ended.
September 30, 2020: Oklaunion Decommissioned
BPUB's 18% ownership (124 MW) in the Oklaunion Coal-fired power plant was decommissioned due to increased emissions regulations and aging infrastructure.
May 2, 2023: TEF Distribution Approved
The Brownsville city commission approved the TEF distribution plan. Eligible electric customers began receiving refunds totaling $31.35 million.
Proposed Facility Details
The Tenaska Brownsville Generating Station was planned as:
- Capacity: 800 MW natural gas power plant
- Location: 270 acres in north Brownsville near the Southmost Regional Water Authority (SRWA)
- BPUB Ownership: 200 MW of the plant's output
- Service Area: Electricity for approximately 400,000 Texas homes
Related Infrastructure Projects
Natural Gas Pipeline
The city commission approved a natural gas utility under BPUB's control to develop lines to transport gas to Brownsville. This 50-mile pipeline from the Edinburg area would have alleviated supply constraints and created opportunities, including potential service to the Silas Ray Power Plant on the west side of Brownsville.
Wastewater Reuse
The project planned to create a new revenue stream using treated wastewater from Robindale Wastewater Treatment Plant. The water would be delivered to the power plant for cooling purposes, while BPUB would also provide potable water to the plant.
Why the Project Was Terminated
Market conditions changed significantly over time:
- Renewable energy became more economical than fossil-fueled generation
- Reduced interest in long-term electric capacity contracts within ERCOT
- Open market purchasing became more favorable than investing in new plant capacity
- Tenaska could not secure subscribers for the remaining plant capacity
TEF Distribution
On May 2, 2023, the city of Brownsville Commission approved the Tenaska Equity Fund distribution plan. The TEF includes $29 million collected from April 2013 to September 2016, plus interest earned through March 2023, totaling $31.35 million.
Distribution Details
- Eligible customers: BPUB electric customers active between April 2013 and September 2016
- Active accounts: Received statement credits labeled "Tenaska Equity Fund Refund"
- Inactive accounts: Received refund checks mailed to last known address
- Additional credit: Active account holders as of May 1, 2023 received an additional $48.91 credit
Related Documents
Tenaska Project Documents
Contact Information
For additional inquiries regarding the Tenaska Project or TEF distribution:
- Email: TEFInquiries@brownsville-pub.com
- Phone: (956) 983-6247 (Communication & Public Relations Department)
- Customer Service: (956) 983-6121 (for account-specific questions)
For Public Information Requests, please visit the Public Information section of our website.