Texas approved its ninth loan under the Texas Energy Fund for a natural gas power plant in Reeves County, Governor Greg Abbott announced, marking a continued push to expand reliable generation on the state's grid.
Pecos Power Plant LLC is developing the 452-megawatt facility with co-sponsors Mercuria and Continental Resources. The plant is designed to provide dispatchable power to the Electric Reliability Council of Texas (ERCOT) power region, with capacity sufficient to serve approximately 110,000 Texas homes. The project is scheduled to begin generating power in 2027.
According to PUCT Chairman Thomas Gleeson, the facility's "quick start capabilities to meet fluctuating demand and a design suited for West Texas winters" will "add a dependable source of power for Texas families and businesses." Abbott said the loan "adds more than 450 megawatts of new, reliable natural gas generation in West Texas and fortifies the grid for Texas homes and businesses."
Eight projects previously approved through the Texas Energy Fund's In-ERCOT Generation Loan Program represent 4,994 megawatts of new capacity for the grid.