Gov. Abbott Announces Texas Energy Fund Loan for 452 MW West Texas Power Plant

 

AUSTIN, TX — Gov. Greg Abbott announced Wednesday the ninth Texas Energy Fund loan, which will support the development of more than 450 megawatts of new natural gas generation in Reeves County.

Pecos Power Plant LLC is developing the project, which is expected to add enough electricity to the West Texas power grid to power approximately 110,000 Texas homes.

“Texas is the energy capital of the world because we build the power our economy needs,” Abbott said. “This Texas Energy Fund loan adds more than 450 megawatts of new, reliable natural gas generation in West Texas and fortifies the grid for Texas homes and businesses.”

The project is expected to begin generating electricity for the Electric Reliability Council of Texas power region in 2027.

“This project brings significant investment and more dispatchable power to West Texas, while benefitting all Texans by strengthening grid reliability,” Public Utility Commission of Texas Chairman Thomas Gleeson said. “With quick start capabilities to meet fluctuating demand and a design suited for West Texas winters, this facility will add a dependable source of power for Texas families and businesses.”

The loan agreement between the PUCT and Pecos Power Plant LLC, with co-sponsors Mercuria and Continental Resources, is the ninth finalized through the Texas Energy Fund's In-ERCOT Generation Loan Program.

The program provides low-interest loans for projects designed to add new, reliable power generation to the ERCOT region.

The eight projects previously approved through the In-ERCOT Generation Loan Program represent 4,994 megawatts of new power generation for the Texas grid.

Additional information about the Texas Energy Fund and its In-ERCOT Generation Loan Program is available through the Public Utility Commission of Texas.

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