Gov. Greg Abbott announced the ninth Texas Energy Fund loan, for a natural gas power plant of more than 450 megawatts in Reeves County, according to an Oct. 7 news release from the governor’s office.
The release said the project, being developed by Pecos Power Plant LLC, will add new natural gas generation to the West Texas power grid, enough electricity to power approximately 110,000 Texas homes. It is set to begin generating power for the Electric Reliability Council of Texas region in 2027.
“Texas is the energy capital of the world because we build the power our economy needs,” Abbott said in the release. “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.”
Public Utility Commission of Texas Chairman Thomas Gleeson also commented in the release. “This project brings significant investment and more dispatchable power to West Texas, while benefitting all Texans by strengthening grid reliability,” 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 under the Texas Energy Fund’s In-ERCOT Generation Loan Program, which provides low-interest loans for projects that add new, reliable power to the ERCOT region, the release said.
The governor’s office said the eight projects already approved through the program represent 4,994 megawatts of new power for the grid. Additional information about the Texas Energy Fund and the loan program is available on the PUCT website, according to the release.