CPS Energy began construction of a state-of-the-art, coal-fired power plant on Calaveras Lake in 2005. Unit 2 of the J. K. Spruce Power Plant will be located adjacent to three existing coal units.

Spruce 2 is a key element of CPS Energy's Strategic Energy Plan adopted by the Board of Trustees in June 2003. The company uses cheaper fuels for electrical production such as nuclear and low-sulfur coal from Wyoming to maintain our enviable position as the lowest-cost provider of electricity and natural gas among the nation's largest cities. CPS Energy should have the Spruce 2 plant on line by 2010 to help keep pace with Greater San Antonio's continued growth and to help keep customers' energy bills affordable. At 750 megawatts, the new plant will be the largest of the coal units at Calaveras Lake.

As part of our Strategic Energy Plan and our commitment to the environment, CPS Energy is investing more than $200 million in the best-available emissions-control technology and equipment on Spruce 2. Another $500 million is being spent to upgrade emissions controls on the existing units adjacent to Spruce 2. Emissions reductions from existing plants will more than offset emissions from the new plant and reduce overall coal emissions by more than 60 percent.