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Back in September, the City of Houston agreed to buy all the solar power from a proposed NRG $40-million solar plant on a 25-year power purchase agreement, or PPA. The deal called for NRG to foot the bill for the plant, and the city to pay for the power at a rate of 8.2 cents per kilowatt-hour for the first year. What this meant, in real-world terms, was that NRG would supplant some of the solar output with power from other plants, giving the city an effective rate of 8.2 cents, though the agreement overall calls for Houston to pay 19.8 cents per kilowatt-hour. If built, the 10-megawatt solar plant would have been the biggest in the state, providing up to 1.5 percent of the city's electrical needs at a locked-in price on 90 percent of production - a fixed rate that would have served the city well if Reliant Energy raised its rates due to rising costs of oil, gas or coal. Reliant Energy's generation mix is 39.8 percent, followed by natural gas at 23 percent and coal at 22.5 percent - the former two prices likely to rise as the recession eases and tension over Middle East oil prices and production rises.

Back in September, the City of Houston agreed to buy all the solar power from a proposed NRG $40-million solar plant on a 25-year power purchase agreement, or PPA. The deal called for NRG to foot the bill for the plant, and the city to pay for the power at a rate of 8.2 cents per kilowatt-hour for the first year. What this meant, in real-world terms, was that NRG would supplant some of the solar output with power from other plants, giving the city an effective rate of 8.2 cents, though the agreement overall calls for Houston to pay 19.8 cents per kilowatt-hour. If built, the 10-megawatt solar plant would have been the biggest in the state, providing up to 1.5 percent of the city's electrical needs at a locked-in price on 90 percent of production - a fixed rate that would have served the city well if Reliant Energy raised its rates due to rising costs of oil, gas or coal. Reliant Energy's generation mix is 39.8 percent, followed by natural gas at 23 percent and coal at 22.5 percent - the former two prices likely to rise as the recession eases and tension over Middle East oil prices and production rises.

NRG Energy, based in Princeton, NJ, is a wholesale power generation company with ownership in 47 coal, oil, and natural gas plants worldwide. The company's portfolio of projects totals approximately 22,735MW in the United States, about half of which is generated in Texas. NRG also has plants in Australia, Europe, and Latin America with a total of about 1,216MW of generation

The cost to build a new nuclear power plant in Texas has risen to $10 billion, up from early estimates, but much below price tags of other proposed U.S. nuclear projects, an executive with NRG Energy Inc's nuclear development arm said on Tuesday. The "all in" cost to build two 1,350-megawatt nuclear reactors in South Texas has risen 40 percent from 2006 estimates which did not include financing costs, Steve Winn, chief executive of Nuclear Innovation North America (NINA), told the Reuters Global Energy Summit. While higher, NINA's current estimate is more than $10 billion under estimates from other nuclear developers that operate in states where regulators determine how much money utilities can charge customers for new power plants.