KNOXVILLE, Iowa — A new hydroelectricity plant to be built at Red Rock Reservoir is expected to provide enough power for 18,000 homes.

Officials say construction is scheduled to begin early next year on the $260 million project. The reservoir sits about four miles north of Knoxville in south-central Iowa.

Missouri River Energy Services will develop the plant by installing turbines at the current dam on the Des Moines River. Missouri River Energy Services is a consortium, based in Sioux Falls, S.D., that includes municipal utilities from Iowa, Minnesota, South Dakota and North Dakota.

The new plant is expected to be ready for operation in late 2016.