TXU Corp. has offered a new proposal to appease environmental groups that oppose construction of the 600-MW Sandow 5 coal-fired unit, that TXU wants to put into operation in the first quarter of 2009. TXU and Alcoa want to amend a 2003 consent decree so that TXU can assume an existing air permit granted to Alcoa to build a new power plant at the Sandow site. Environmental groups want to force TXU to apply for a new permit for the Sandow plant that would include more stringent emission standards than the existing permit.

The motion proposes a payment of $859,000 to resolve Alcoa’s failure to begin operating the plant in the time outlined in the consent decree. The proposal also calls for the three aging Alcoa units to be shut by the end of the year, four months ahead of the schedule in the consent decree. The proposal says TXU will “strive” for a NO_x emission rate 20 percent below the level outlined in the consent decree. TXU also said it will install a SCR system at Sandow 4.