A new natural gas plant in Reeves County has secured Texas's ninth Texas Energy Fund loan, Governor Greg Abbott announced. The project tops 450 megawatts of capacity, enough electricity for an estimated 110,000 Texas homes, and is being developed by Pecos Power Plant LLC to add new generation to the West Texas power grid.
Abbott said Texas remains "the energy capital of the world" because the state builds the power its economy needs, and described the loan as strengthening the West Texas grid for homes and businesses statewide.
Power expected on the grid by 2027
The plant is set to begin generating power for the Electric Reliability Council of Texas, the grid operator known as ERCOT, in 2027.
Thomas Gleeson, chairman of the Public Utility Commission of Texas, said the project adds flexible, dispatchable capacity and investment to the West Texas grid, calling it a benefit for grid reliability statewide. He also noted the plant can ramp up quickly during demand spikes and is designed to handle West Texas winter conditions, calling it "a dependable source of power" for Texas households and businesses.
Ninth loan under the program
The loan agreement is between the Public Utility Commission of Texas and Pecos Power Plant LLC, with Mercuria and Continental Resources as co-sponsors. It is the ninth loan finalized under the Texas Energy Fund's In-ERCOT Generation Loan Program, which issues low-interest loans for projects that add new, reliable power to the ERCOT region.
Eight projects already approved under the program represent 4,994 megawatts of new power for the grid. The Reeves County plant adds more than 450 megawatts on top of that.
