Lawmakers expect better vetting from Public Utility Commission for power plant loans

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Last year, Texas voters approved $5 billion for the Texas Energy Fund, created to assist in funding new power plants or upgrades to strengthen the state's power grid following winter storms that left many Texans without power and heat for extended periods in 2021 and 2023. The Public Utility Commission of Texas is tasked with selecting projects to receive loans from this fund, but lawmakers are now raising concerns about the commission's vetting process after serious issues were discovered regarding a finalist's application.

Doug Lewin, an expert on energy and power in Texas, highlighted problems with a power plant project in the Rio Grande Valley that had been set to receive funding. The project was canceled by the PUC after it was revealed that the CEO of the company behind the project had a history of involvement in an embezzlement scheme. Lawmakers expressed displeasure over this oversight and questioned the PUC's ability to effectively manage the fund, given their limited resources and the magnitude of their responsibilities. The incident has raised doubts about the PUC's management and the overall strategy of the Texas Energy Fund, which aims to support the construction of new gas power plants and upgrades, amidst the state's increasing focus on renewable energy sources.