White Stallion Energy suspends coal plant project

Published on NewsOK Modified: February 15, 2013 at 4:34 pm •  Published: February 15, 2013

BAY CITY, Texas (AP) — A Gulf Coast coal-fired power plant that ran into fierce local opposition over concerns that it would use immense amounts of public water in the drought-stricken area will not be developed, an energy company announced Friday.

The White Stallion Energy Center said it was suspending work on the 1,200-megawatt power project in Matagorda County, about 90 miles southwest of Houston.

Chief Operating Officer Randy Bird blamed proposed U.S. Environmental Protection Agency rules and the specter of more regulations. He also said low natural gas prices have made the price of electricity from coal uncompetitive.

White Stallion planned to build its plant on the banks of the Colorado River at Bay City, which feeds estuaries that serve as oyster and shrimp nurseries and irrigation for the pastures and fields of the massive ranches. But the project had faced challenges since it was proposed in 2008.

Ranchers, farmers and other residents opposed plans to build the plant in the pristine rural area, arguing there was not enough water to support the facility and the community's agricultural needs.

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