PUC Adds 2 More Projects to Texas Energy Fund

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The Texas Public Utility Commission (PUC) has approved the addition of two new generation projects to the Texas Energy Fund (TEF) as part of its In-ERCOT loan program. This decision comes after two previous proposals were withdrawn due to supply chain issues. The new projects, proposed by NRG Energy and Vistra, aim to secure a total of $548 million in TEF funds to develop 895 MW of new generation capacity. NRG plans to construct a 455-MW natural gas peaker at its Greens Bayou facility, while Vistra intends to build a 440-MW natural gas peaker in the Permian Basin.

PUC staff emphasized the importance of selecting projects that align with the commission's priorities, such as quick market entry and the ability to alleviate transmission constraints. The TEF, established by the Texas Legislature in 2023, aims to enhance the state's grid by providing financial support for the construction and operation of electric facilities. Currently, the In-ERCOT portfolio includes 19 applications totaling 9,774 MW of new gas generation, with a total of $5.37 billion in TEF funds requested.