New power plant against annexation
By BENJAMIN C. SHARP bensharp@journal-spectator.com

The Wharton City Council wants to annex the Colorado Bend Energy Center site. Power company officials are urging them not to.

Navasota Energy's Andy Morris told City Council Monday that being brought into the city limits would pose little benefit to the power plant. In fact, it might present a hindrance to future construction phases.

"We do not see a benefit to the proposed annexation," he said.

In a letter to city officials earlier this month, Navasota Energy officials said the annexation would prove "burdensome and expensive" for the city.

That's because the city would have to bring services - such as water and sewer - to the site once it was brought into the city limits.

The city would likely be unable to get those services on line in time for the construction of Phase 3, Navasota officials said.

An initial building phase was completed earlier this year, and a second phase is expected to be finished by spring of 2008. The cost is roughly $180 million per phase.

Once complete, the power plant will be capable of generating 550 megawatts. A third phase, now planned, will boost that to 825 megawatts.

"Delays to the project as it waits for the city to develop their infrastructure plan, finance and build the necessary infrastructure would cause the Phase 3 to be put on hold until such facilities were available," wrote Navasota Energy's Frank Giacalone.

"Such a delay might become indefinite forcing us to focus our attention and resources to other sites and other projects."

City officials have pursued the annexation in the hopes of tapping into the property taxes the plant will have to pay. They began annexation proceedings in July for more than 150 acres.

Two public hearings are required before City Council can take definitive action. The first was held Monday night, with a subsequent hearing scheduled for Sept. 24.

Morris asked the council to reconsider the annexation and to instead pursue an Industrial District Agreement.