[2] Twin Oaks Reservoir was developed by impounding Duck Creek in 1982 to act as a cooling source for the plant.

[3] In 1983, Alcoa attempted to sell its stake in Twin Oak to Halliburton who was seeking electricity to offer to the owners of the troubled South Texas Nuclear Generating Station.

As electricity demand in Texas stagnated, construction on Twin Oak continued to be deferred until the air permit was withdrawn in 1994.

[5][6] Construction resumed in order to meet future electricity demand and following the Texas Commission on Environmental Quality (TCEQ) granting Luminant a new air permit for Oak Grove.

This included the addition of selective catalytic reduction (SCR) systems to reduce nitrogen oxide (NOx) emissions and activated carbon which prevents mercury from being released.