The projects were selected from among 72 applications for the PUC to consider under the state’s low-interest “In-ERCOT Loan Program,” which is part of the Texas Energy Fund established after Winter Storm Uri in 2023.
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Seventeen electric power developers potentially will receive a combined $5 billion in taxpayer-subsidized loans for the construction of new gas-fired plants inside ERCOT, according to an Aug. 29 decision by the Public Utility Commission of Texas.
The projects were selected from among 72 applications under the state’s low-interest “In-ERCOT Loan Program,” which is part of the Texas Energy Fund established after Winter Storm Uri in 2023. With initial approval in hand, the 17 projects now proceed to a due-diligence phase that will last four to eight months.
The PUC put the total amount of loans approved at $5.38 billion, and said that the money should be dispersed by the end of next year. The applicants have committed to building dispatchable energy units with a combined capacity of 9,781 megawatts, according to the PUC. One megawatt is roughly enough to power 200 homes on a hot summer day.
In addition to the loan program, other Texas Energy Fund programs include one providing grants for the completion of new dispatchable energy plants, one providing funds for companies that secure back-up power resources, and one intended to improve the resiliency of electric utility service outside the ERCOT region.
Each of the Texas Energy Fund programs were authorized by the Texas Legislature through the passage of Senate Bill 2627 during the 88th regular session, and through voter approval of a Texas Constitutional amendment.