There are several power plants in and around Kakinada. Spectrum Power Generation has a 208-MW plant and was one of the first Independent Power Producers in the country. The company is planning to expand its capacity to 1350 MW in phases. Tenders for a 350-MW expansion have been requested. A 220-MW power station (being expanded to 2400 MW at a cost of Rs 100 billion) owned by Reliance Energy and a 464-MW combined-cycle power plant by GVK Group are in operation at Samalkota (Kakinada Rural). These plants supply electricity to the state's transmission utility, AP Transco, under a power purchase agreement.