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SAN DIEGO (AP) _ Sempra Energy Resources is buying a 305-megawatt, coal-fired power plant in Texas for $120 million, the company announced Monday.

The 12-year-old plant, located about 100 miles east of Austin, will give Sempra a foothold in the state.

Sempra Energy Resources, a subsidiary of San Diego-based Sempra Energy, has signed a five-year contract to sell all of the plant's power output. Sempra said power from the plant will continue to be sold into Texas' electric grid.

Sempra expects to close the deal on Aug. 1 with Texas-New Mexico Power Co., which is selling the plant as a result of the state's new deregulated electricity market. Workers at the plant will become employees of Sempra once the sale is completed.