Texas A&M Saving Money With New Power Plant

Texas A&M's new power plant went online the first of this month and has already saved the university more than a million dollars in energy costs.

The $73.25 million combined heat and power system is natural gas powered and can provide power for up to two / thirds of the A&M campus.

Exhaust steam from the plant also provides hot water and other heating needs for university buildings.

The U.S. Department of Energy supplied a $10 million grant for the construction.

"Heat has been at record levels and power demand has been at record levels and so when that happens the cost of electricity goes through the roof actually and gets very, very high so we've been base loading our new CHP our combined heating and power system and that's allowed us to basically cost avoid that significantly high cost of electricity during these peak periods," said Jim Riley, Texas A&M Utilities and Energy Management Director.

We're told the money being saved is able to go toward teaching, research, and other functions on campus.


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