Commissioners from the Public Utility Commission of Texas recently selected 17 companies from among 72 applicants to consider for low-interest loans for natural gas power plants in Texas. They include four in Permian Basin. Commissioners selected proposals capable of generating enough electricity (9,781 megawatts) to power about 2.4 million homes for three-percent loans from Texas Energy Fund. Texas legislature created the fund in 2023 to finance about 10 gigawatts of electric generation to support the state’s ERCOT power grid.
The fund currently includes $5 billion, but Gov. Greg Abbott and Lt. Gov. Dan Patrick have promised to double the funding. The 17 loan applications selected amount to about $5.4 billion. Ellie Breed of the PUC told Dallas Morning News, “(The) action to advance a set of applications to due diligence does not guarantee that those applications will enter into a loan agreement.”
PUC executive director Connie Corona said commissioners favored proposed power plants spread throughout the state that can be completed quickly and reduce strain on the electricity transmission network. Corona said loans will be distributed in 2025.
Midland Reporter Telegram said proposed plants in Permian Basin include a 1,350-megawatt combined cycle project in Reeves County by Competitive Power Ventures and GE Vernova. A 440-megawatt proposal by Vistra Corp. would be built adjacent to its gas-fired plant in Monahans. TXOGA president Todd Staples told Reporter Telegram, “Permian Basin has a built-in customer base ready to go.”
S&P Global Commodity Insights has been retained to create a forecast of Permian Basin electric demand.