Two administrative law judges Thursday recommended TXU be denied a permit for its proposed Oak Grove coal-fired power plant in Robertson County.
The judges in Austin say Dallas-based TXU failed to demonstrate that the plant would use the best available control
technology for reducing pollution.
TXU says it disagrees with the recommendation and will continue to make its case with regulators.
The recommendations now go to the Texas Commission on Environmental Quality.
Robertson County Judge Fred Elliott said the TCEQ is the agency charged with that responsibility.
"I believe in a free economy, and that everyone should have a job. This (power plant) has been an economic boost, much like Sanderson Farms, which has produced thousands of jobs. Jobs is what my focus is for our people," said Elliott.
The facility is planned in Robertson County, near Franklin.