The Texas Public Utility Commission has advanced two generation projects for due diligence review as part of the Texas Energy Fund’s In-ERCOT loan program, filling a hole left by two proposals that dropped out earlier this year.
The PUC accepted staff’s recommendation during its open meeting March 13 to add NRG Energy and Vistra projects to the TEF portfolio. The companies are seeking $548 million in TEF funds for their 895 MW of potential new generation (56896).
NRG plans to add a 455-MW, quick-start natural gas peaker at its Greens Bayou facility outside Houston. Vistra has proposed a second Permian Power 440-MW natural gas peaker in the Permian Basin. Permian Power I, one of the first projects selected, would be built next to Vistra’s existing 325-MW gas unit near Monahans in West Texas.
PUC attorney Laurie Hobbs said staff prioritized applicants that meet the commission’s priorities, including speed to market, ability to relieve transmission constraints and diversity of dispatchable resource types.
“We’re really trying to still balance as many of the [commission’s] original policy priorities … but we must present you with applicants that can begin timely construction of their projects,” she told the commissioners.
ENGIE Flexible Generation NA withdrew a 930-MW peaking facility from consideration in February, and Howard Energy Partners pulled back a co-generation facility in January. Both companies said supply chain issues would delay the projects and keep them from meeting a December 2025 deadline for initial loan disbursements. (See 2 Companies Withdraw Texas Energy Fund Projects from Consideration.)
“We need to make sure as best as we can that any project we approve going forward can meet these deadlines and be online,” PUC Chair Thomas Gleeson said.
The In-ERCOT portfolio has 19 applications, totaling 9,774 MW of new gas generation, for $5.37 billion in loaned TEF funds.
Deputy Executive Director Barksdale English told the commission that Vistra generator Luminant, NRG, Constellation Energy and Calpine account for 35% of the TEF projects. He said adding more participants would increase competition.
Constellation said in January it plans to acquire Calpine, the nation’s largest operator of geothermal and natural gas power generation. (See Constellation to Acquire Calpine for $29.1B.)
The TEF was created by the Texas Legislature in 2023 to add more dispatchable generation to the grid and was approved by voters later that year. Managed by the PUC, it is designed to provide grants and loans to finance construction, maintenance, modernization and operation of electric facilities in the state.
The fund is composed of four programs: In-ERCOT Generation Loans; In-ERCOT Completion Bonus Grants; Outside-ERCOT Grants; and Texas Backup Power Package.
