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Texas grid OKs Luminant plan to mothball Texas coal unit

HOUSTON (Reuters) - The Texas electric grid operator approved Luminant's request to suspend operation of the 750-MW Martin Lake 3 coal unit located in Rusk County, according to a notice issued on Thursday.

Luminant plans to shut the unit by mid-December and to operate it in the summer months only from June to September. Two other coal-fired units at the site will continue to operate year-round.

Overall, Luminant will mothball three coal units totaling 1,880-MW over the winter months when power demand in Texas tends to be much lower than in the summer.

A mothball plant can return to service, but might require weeks or months of advance notice.

One megawatt will supply about 500 Texas homes during mild weather and about 200 homes during peak summer demand.

Luminant is a unit of Energy Future Holdings, which is owned by a group of private equity firms, including Kohlberg Kravis Roberts & Co.

(Reporting by Eileen O'Grady in Houston. Editing by Andre Grenon)

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