Under development by Pecos Power Plant LLC, the West Texas project eventually should generate enough power to serve approximately 111,000 homes. Co-sponsors Mercuria and Continental Resources also are participating in the project.
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The ninth Texas Energy Fund loan for a generation project inside ERCOT — this one to bring more than 450 megawatts of power online in Reeves County — has been approved by the Public Utility Commission.
Under development by Pecos Power Plant LLC, the West Texas project eventually should generate enough power to serve approximately 111,000 homes, according to an Oct. 7 release. Co-sponsors Mercuria and Continental Resources also are participating in the project.
“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,” said PUC chairman Thomas Gleeson.
This is the ninth finalized agreement under the Texas Energy Fund’s In-ERCOT Generation Loan Program that provides low-interest loans for projects that add new power inside ERCOT. The eight other projects already approved through In-ERCOT Generation Loan Program will add another 4,994 MW of power for the grid, according to the PUC.
Under the “Texas Energy Fund” — which was created through the passage of Senate Bill 2627 during the 88th Texas Legislature — generation developers can apply for completion grants or loans for the development of natural gas-fired plants. The Texas Legislature initially appropriated $5 billion in 2023 but subsequently authorized an additional $5 billion in 2025 through Senate Bill 2268 and related budget legislation. This brings the fund’s total financing to $10 billion. Funding for the program is backed by the state treasury.
In addition to the In-ERCOT Generation Loan Program, the Texas Energy fund also includes:
- The Completion Bonus Grant Program that provides performance-based financial grants to companies that complete new dispatchable power plants inside ERCOT;
- The Outside-ERCOT Grant Program that provides grants for electric infrastructure improvements, weatherization, and reliability enhancements in Texas areas outside ERCOT;
- and the Texas Backup Power Package Program that provides grants and loans for backup power systems serving critical facilities.
Additional information about the Texas Energy Fund is available on the PUC website.