Regulators: TXU OK to Build Oak Grove Plant

By  | 

AUSTIN -- Environmental regulators have given TXU Corporation the go-ahead to build a coal-fired power plant in Central Texas.

The Texas Commission on Environmental Equality Wednesday overruled two arbitrators who questioned the utility's claim that the Oak Grove plant won't make area pollution worse.

Opponents say they'll appeal. But if Dallas-based TXU prevails, it could salvage at least a portion of its one-time plan to build a fleet of new coal-fired plants.

The TCEQ voted 2-to-1 to approve an air permit for the two-unit plant in Robertson County, about 100 miles northeast of Austin.

The vote came after a four-hour hearing in the commission's Austin chambers, which were packed residents who favor the plant and its jobs and environmentalists.

TXU says the plant, and another proposed near Bryan, are needed to meet future energy demand.