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

Gov. Greg Abbott (R) announced the ninth Texas Energy Fund loan for a 452-megawatt natural gas power plant in Reeves County, which is expected to begin generating electricity for ERCOT in 2027.

What is the new project?

Gov. Greg Abbott announced on October 7 that Pecos Power Plant LLC will receive the ninth finalized loan through the Texas Energy Fund's In-ERCOT Generation Loan Program.

The project will add 452 megawatts of natural gas generation to the West Texas power grid, providing enough electricity to power approximately 110,000 Texas homes. The facility is expected to begin generating electricity for the Electric Reliability Council of Texas (ERCOT) region in 2027.

Gov. Greg Abbott: "Texas is the energy capital of the world because we build the power our economy needs. 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."

Why is the project important for the grid?

Public Utility Commission of Texas Chairman Thomas Gleeson said the project will add dispatchable generation to West Texas and is designed with quick-start capabilities to respond to changes in electricity demand.

PUCT Chairman Thomas Gleeson: "This project brings significant investment and more dispatchable power to West Texas, while benefiting all Texans by strengthening grid reliability."

The project is being developed with co-sponsors Mercuria and Continental Resources.

How much power has the Texas Energy Fund supported?

The Pecos Power Plant agreement is the ninth finalized loan under the In-ERCOT Generation Loan Program, which provides low-interest financing for projects that add new generation to the ERCOT region.

The eight projects previously approved through the program represent 4,994 megawatts of new power, according to the governor's office.

The Texas Energy Fund was created to support new dispatchable generation and improve electric reliability as electricity demand grows across the state. The PUCT administers the program through an application and financial review process.

Raeylee Barefield

Raeylee Barefield is a Legislative Correspondent based in Austin, Texas, specializing in state government and public policy. With one year of reporting under her belt, she covers legislative developments, committee hearings, and policy debates. She has been cited by Texas Politics and Big Energy for her coverage and analysis of legislative and regulatory issues. Her reporting typically focuses on Public policy, Stare government, environmental policy, and energy regulation. To contact her, please reach out at Raeylee@dnm.news

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