The Carters share a great love
for wildlife. At their ranch,
they raise deer and help to
bring back the quail population.
“We’re actually a profitable
organization on this ranch, too,”
says Bob.
Texan businessmen and modern-day cowboys
Bob and Todd Carter of Panda Power Funds
are blazing new trails – in the energy
­industry and on their ranch. With Siemens,
they’re building some of the fastest, cleanest
and most efficient power plants in the USA.
Text: Diana Smith Photos: Kael Alford
TRUE GRIT
Visit the online version of
Living Energy to view the
short documentary “True
Grid – Energizing Texas”
and an interview film with
Panda Power Funds’ Bob
and Todd Carter.
54 Living Energy · No. 11 | December 2014
Living Energy · No. 11 | December 2014 55
Reportage
Panda Power Funds CEO Bob Carter at the Panda headquarters.
“Shale gas has been a game changer for Texas,” he says. “We’re
now the Saudi Arabia of shale gas.”
A
Panda Power Funds new
­combined cycle power plant
Temple I is already in operation. Its twin sister, Temple II,
is seen under construction in
the background.
“The Flex Plant™ design is
a perfect dance partner
for plants that use renewable resources like wind,”
says Todd Carter, who is
­holding the reins as Panda
Power Funds President.
56 Living Energy · No. 11 | December 2014
rmed with little more than sheer
determination and grit, rugged
Western cowboys were able to
overcome virtually any obstacle. That
tradition continues at Panda Power
Funds, the Dallas-based private equity firm run by the father-son team
of Bob and Todd Carter. In fact, a notso-symbolic sign is prominently displayed in the company’s boardroom.
“No Excuses,” it reads. During a threeday tour, the Carters welcomed Living
Energy to their high-rise headquarters in metropolitan Dallas, to the
company’s state-of-the-art power
plant in Temple and to the family’s
impressive ranch in rural West Texas.
Today, the company is reshaping the
energy business in Texas and in the
USA. Panda Power Funds is investing
in and building six large-scale projects to supply homes with critical
power. Three of those are located in
Texas, where the population is exploding and demand is at an all-time
high. In fact, according to September
2012 United States Census Bureau data, eight of the fastest-growing cities
in the USA are in the Lone Star State.
“We’re keeping the lights on in ­Texas,”
says CEO Bob Carter. Working with
Siemens, Panda Power Funds is constructing or operating 758-megawatt,
natural gas-fired combined ­cycle
power plants, one in Sherman and
two in Temple. All told, the three
plants will be able to supply the ­power
needs of more than 2 million homes
in Texas.
Better for the Environment,
Better for Customers
The Texas power plants use Siemens
state-of-the-art Flex-Plant™ technology, which provides environmental and
consumer benefits. Combined ­cycle
power plants use the hot exhaust gas
produced by a gas turbine to generate
steam, which in turn drives a steam
turbine. Both turbines transfer their
energy to a generator that produces
electricity. The combined cycle
u
Living Energy · No. 11 | December 2014 57
Reportage
Panda Power Funds – the Business Side
Panda Power Funds was
formed in 2010 by the former
senior management team and
energy professionals of Panda
Energy International, an independent power development
and management company
founded in 1982. While at Panda Energy, the e
­ xecutive team
around Bob and Janice Carter
financed, developed, built and
operated 9,000 megawatts of
generating capacity, at an approximate cost of US$6 billion,
including the two largest natural gas-fueled power plants
ever built in the United States.
Panda Power Funds closed its
initial private equity fund
with US$420 million of commitments in 2011. In addition
to evaluating third-party opportunities and management
teams, Panda Power Funds
has the ability to internally
source proprietary, largescale power generation development and other investment
opportunities.
At their ranch in Seymour, Texas, the Carters employ the same philosophy as in their business – everything is an investment,
and a well-laid-out legacy for future generations.
“With conservation,
we can’t just sit
back and wait on
the biologists,” Bob
says. “It’s got to be
a combined effort.
We’re doing our
part on this ranch.”
Bob Carter,
CEO of Panda Power Funds
significantly increases the electrical
energy yield from the fuel, which is
good for the environment and also reduces fuel costs.
Additionally, the plants’ “quick start”
technology provides an optimum solution to help support the integrity of
the state’s electrical grid and supplement other renewable resources.
Todd Carter, senior partner and president of Panda Power Funds, says:
“The Flex-Plant™ design makes it a
perfect dance partner for plants that
use renewable resources like wind.”
Natural Gas – Salvation of
the Energy Market
The original Texas energy boom literally erupted when the famous East
Texas oilfield Spindletop hit more
58 Living Energy · No. 11 | December 2014
than a century ago, its first well gushing black gold into the air more than
100 feet high. Most recently, the Texas-led shale revolution has made the
Lone Star State the epicenter of a
worldwide energy revolution. Thanks
to George Mitchell, a Texas oil and
gas producer who cracked the code
for horizontal shale extraction, the
state’s production has skyrocketed,
and Texas has become the world’s
largest producer of oil and gas.
With four major shale formations in
the state – the Barnett Shale in North
Texas, the Haynesville in East Texas,
the Eagle Ford in South Texas and the
Permian in West Texas – Panda Power
Funds’ plants are ideally situated.
Their proximity to the state’s natural
gas is expected to provide significant
The Panda Funds currently has
a number of power projects
near completion. These include two generation projects,
representing approximately
US$1.5 billion in financing,
that recently completed construction. Panda’s 758-megawatt Sherman, Texas, and
758-megawatt Temple I projects: The Funds’ 758-megawatt
Temple II project is under construction and expected to go
online in 2015.
In late 2011, Panda Power Funds
developed and constructed the
largest solar facilities in the
northeastern United States in
Pilesgrove, New Jersey. The
20-megawatt Pilesgrove Solar
Farm was a joint development
project between Panda Power
Funds and ConEdison Development, an affiliate of the utility that serves New York City.
Panda Power Funds is continually exploring investment
opportunities in both conventional and renewable energy.
Janice Carter has been in the energy
business with her husband Bob for more
than 30 years.
Living Energy interview with
Panda Power Funds
During a three-day visit with the Carters, the Living Energy
team had the chance to sit down for an in-depth business
interview with Bob and Todd Carter – “Living Energy Face-toFace with Panda.” On the right side: journalist Diana Smith.
siemens.com/living-energy/panda-interview-yt
The Living Energy app with additional features can
be downloaded for free from the Google Play Store
and the Apple App Store.
u
Living Energy · No. 11 | December 2014 59
Panda Temple Power Facts
In Texas the large amount of wind
Reportage
generation requires natural gas-fueled backup generation.
The Temple plants support the development of additional renewable generation by closing the generating gap caused
when renewable energy suddenly drops offline. The clean
and efficient Flex PlantsTM provide higher
power output during high temperature conditions, making the plant ideal for Texas’ hot summers.
Panda Power Funds, www.pandafunds.com, retrieved Sept. 11th 2014
operating cost advantages. That also
holds true for the company’s Pennsylvania plants, Liberty and Patriot, now
under construction and sited in the
heart of the Marcellus Shale.
Innovative Investing
“That’s very important,” explains Todd
Carter. “As a private equity company,
we have partners. We have partners
who invest in us, and we invest their
capital. Our investors are pension
funds. They’re from police, teachers
and firemen – hard-working men and
women of this country. We take that
seriously.”
He relates, that during negotiations,
“Siemens asked us why we were pushing so hard. We’re tough because of
who our investors are.”
The Panda Connection
The Carter family has long been veterans of the energy industry and
champions of highly efficient, environmentally friendly power generation facilities. In 1982, Bob Carter and
his wife Janice started Panda Energy
International. The company built the
two largest gas-fueled electric generation facilities in the USA totaling
4,400 megawatts of generating capacity, was responsible for the first USsponsored, internationally financed
run-of-the-river project in Nepal and
obtained the first US capital markets
financing for construction of a power
plant in the People’s Republic of
­China.
Long before environmental stewardship was popular, they named the
company Panda, after the endangered
giant panda bear and a symbol of
­environmental responsibility. Recognized by Newsweek as one of the top
ten eco-friendly energy companies
60 Living Energy · No. 11 | December 2014
Bob and Todd Carter on a tour of Temple I with Power Plant Manager
Sean Hausman. “From a technological and an environmental standpoint,
there’s nothing like this plant,” says Hausman.
“This is by far the best plant I have
ever worked at. The automation
is incredible. There was thought
behind it.”
Sean Hausman, Panda Temple Power Plant Manager
in America, Panda Energy is Panda
­Power Funds’ predecessor company
headed by Janice Carter.
Field of Dreams
Five years ago, Todd Carter was standing in a rural Texas field with waisthigh grass and overgrown sunflowers.
He said: “Boys, we’re going to build
a power plant here.” That field was in
Temple, Texas, a rural enclave with
about 71,000 residents located on the
important I-35 corridor halfway between Dallas and Austin/San ­Antonio.
“Originally, when we look to build a
power plant, we need access to transmission power lines, natural gas,
water, but the most important thing
that we look for is a community that
supports us,” says Todd Carter.
“When we first came to this city, there
was an incredible amount of support
that we received.”
Business and civic leaders and residents welcomed Panda, due in large
part to the expanding tax base it represented but also because a power
plant requires little from the city in
terms of infrastructure and services,
such as fire, police, emergency services
or additional schools.
According to Temple Mayor Danny
Dunn, Panda’s Temple projects have
been critical in the city’s economic u
Living Energy · No. 11 | December 2014 61
Reportage
An optimistic outlook on the energy future
of Texas and the USA: Todd Carter and
Panda Power Funds are putting together the
cleanest power fleet in the state.
“Our investors are pension funds.
They’re from police, teachers and
firemen – hard-working men and women
of this country. We take that seriously.”
Todd Carter, President of Panda Power Funds
country. “The fast-start capability is
really what sets this plant apart,” he
says. “The Siemens’ combustion turbines can synchronize in 10 minutes
and reach full load within 30 minutes.
The entire plant can achieve full power production within 60 minutes.”
That is particularly important, allowing rapid response to changing market
conditions, in a state where summers
are relentless and demand is through
the roof.
Temple I’s sister plant, Temple II, is
expected to be online by the end of
summer 2015. “When Temple II is
constructed, it is not unrealistic that
we will be able to supply the power
grid with well over 800 megawatts
within 30 minutes,” adds Hausman.
“That’s very impressive. A normal
combined cycle power plant wouldn’t
be able to produce that type of power
for a good hour or more.”
Both plants will incorporate the latest
emissions-control technology, use
treated effluent water, and are permitted as zero-liquid-discharge sites.
No wastewater is discharged from
the site, a feature that incurs more
cost, but was important to the
­Carters as leaders in producing
­environmentally friendly power
­generation facilities.
Ranch Revitalization
development. “Panda Power is the single largest private investment in the
city of Temple. It is a game changer.”
State-of-the-Art Technology
At the bustling, 250-acre power plant
in Temple, Plant Manager Sean Hausman says the Siemens’ Flex-Plant™
design is very efficient, making Temple I one of the most efficient combined cycle power plants in the
62 Living Energy · No. 11 | December 2014
Visiting the Carter’s Circle J & B Ranch
on a sweltering August day, Living
Energy found a veritable oasis carved
out on the arid West Texas plains near
Seymour. The ranch, which includes
hundreds of acres of natural habitat,
along with colorful, drought-resistant landscaping and a waterfall
carved from natural rock, is a 28-minute trip by air or three hours by automobile from Dallas. The home at the
ranch is fully equipped, identical to
their Dallas office, so they can run
Panda Power Funds seamlessly away
from the office.
At the conference room in the Temple plant, there are paintings of Republican as well as Democratic Presidents
of the USA. “Our investors are firemen, police, teachers... the working men and women of this country,”
explains Todd Carter.
Ranching has always been a perilous
business, but the Carters approach it
the same way as they do their energy
company. “We try to take the business
practices we have with our company,
Panda, and incorporate those into
this ranch,” explains Bob. “So we’re
not just looking for someplace for a
hobby. We’re actually a profitable organization on this ranch as well as in
our businesses.”
He continues, “We see conservation as
an investment. The return that we
get here is improving genetics and
the habitat, the ability of our ranch.”
The sprawling ranch includes a profitable deer raising operation, a lake
stocked with black bass, blue gill, and
u
“On the ranch, we are not just looking for a hobby. We have everything here
to run Panda away from the office in Dallas,” says Bob Carter.
Living Energy · No. 11 | December 2014 63
Reportage
Reportage
Texas
Panda Temple I and II Power Plants in Numbers
1,500
megawatts
will be provided to the Texas grid by
­Temple I and II, two clean natural
­gas-fueled, combined cycle facilities.
1.5 million homes will be
The control room at Temple. Once
Temple II comes online, both plants
will be run from this single center.
­supplied with power from Temple I and II.
US$1.6 billion
will ­approximately be infused into the
­Central Texas economy.
250
acres
of land are covered by the plants, ­located
in Synergy Industrial Park in Temple, Texas.
830 jobs were created during peak construction time
“She’s stood shoulder to
shoulder with me for
32 years in business and
52 years in life,” Bob Carter
says about Janice.
Together, they built Panda
to be a force to be reckoned with in the energy
industry.
of the Temple plants, and 35 skilled workers and 35 skilled workers manage
the plants.
50% power production can be achieved in 30 minutes
employing quick-start turbines. Full base-load capacity is reached in
60 minutes.
10.5 % in 2015 8.5 %
and
in
2016 – ERCOT, the E­ lectric
Reliability Council of Texas, has forecast reserve ­margins declining ­below the
13.75% reserve requirement necessary for grid ­reliability.
Join Jonny Carroll and his film crew to visit
Panda Power Funds in Texas. See their new
Flex Plant in Temple and find out about the
Carters’ life and business philosophy in the
Living Energy short documentary “True Grid –
­Energizing Texas.”
45 % of Texas’ 21 million citizens
live within 50 miles of the I-35. The
­facility has been strategically ­sited
half of the
I-35 corridor, one of the ten
along the Texas
siemens.com/living-energy/panda
most concentrated, and ­rapidly growThe Living Energy app with additional
ing, population centers in the USA.
The Temple power plants provide a
template for future energy generation in the state.
64 Living Energy · No. 11 | December 2014
features can be downloaded for free
from the Google Play Store and the
Apple App Store.
hybrid stripers, Missouri walking
horses, a shooting range and a quail
conservation program. “You won’t
find cattle here,” Bob reports. “Cattle
have overgrazed the land out here for
many years, but we believe that conservation is much better than leaving
a scorched earth.”
The main business of the Circle J & B
Ranch is raising trophy white-tailed
deer. “Hunting is a US$2 billion industry in Texas, so we have a very
unique place in that we do only management hunting,” Bob adds. The deer
on the ranch are carefully monitored
by ranch manager Chris ­T immons,
a graduate of Texas Tech University.
“They’re on a strict nutritional program; they receive nutrients and get
medication,” says Timmons.
Bringing Back the Bobwhite
Raising trophy deer is the moneymaking operation of the ranch, but
reviving the bobwhite quail popu­
lation is Bob’s passion. In the last
­decade, the quail population in the
USA has experienced a tremendous
decline. Though scientists studying
the issue cite increasing crowding
of habitats, parasites and other problems, there has not been a definitive
answer for the decrease. It is a problem Carter aims to solve.
“We can’t just sit back and wait on
the biologists,” Bob says. “It’s got to
be a combined effort on the parts of
­universities, institutions and private
­organizations. We’re doing our part
on this ranch.” In 2010, Bob Carter was
the recipient of the T. Boone Pickens
Lifetime Sportsman Award presented
by Park Cities Quail for his efforts to
help bring back the ­endangered bobwhite quail population.
The Cowboy Way
In Texas, there’s an expression, “cowboy up,” which means do the right
thing and put the work in even when
the going is tough. The Carters live
it daily. “We invest in only the best
technology, only the cleanest technology, and we use the same principles
in our business that we use on this
ranch,” says Bob Carter. “We know
that by being good corporate citizens
and by protecting the environment
we are doing the things that are best
for this country and this planet.” p
A native of Texas, Diana Smith is a business,
science and technology writer based in Austin.
Living Energy · No. 11 | December 2014 65