Governor Abbott Announces Texas Energy Fund Loan For 570 MW North Texas Natural Gas Power Plant

~ In a recent announcement, Governor Greg Abbott revealed that the seventh Texas Energy Fund (TxEF) loan agreement has been finalized for a new natural gas power plant in Sherman, Texas. The plant, which will have a capacity of 570 megawatts (MW), is expected to begin generating power for the Electric Reliability Council of Texas (ERCOT) region in 2028.

Governor Abbott emphasized the importance of investing in reliable power to support the growth of the state, stating that Texas is known as the energy capital of the world for a reason. He believes that this project is another step towards keeping the grid strong and maintaining a thriving economy.

The Chairman of the Public Utility Commission of Texas (PUCT), Thomas Gleeson, also expressed his support for the project. He stated that when Texas voters approved the creation of TxEF, it was with the intention of securing new and reliable power generation for the state. He believes that this loan agreement with Rayburn Electric Cooperative is proof that they are delivering on that promise.

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David A. Naylor, President and CEO of Rayburn Electric Cooperative, shared his excitement about this milestone and strategic investment in reliability for their four member cooperatives and communities across North Texas. He emphasized the importance of investing in safe, reliable, and affordable power as their region continues to grow. Naylor also expressed gratitude towards Governor Abbott, legislators, and PUCT for their leadership and focus on strengthening ERCOT's grid.

The loan agreement between PUCT and Rayburn Electric Cooperative is part of TxEF's In-ERCOT Generation Loan Program. This program provides low-interest loans for projects that add new dispatchable power to ERCOT's grid. The total project cost is estimated to be less than $685 million, with PUCT providing a 20-year loan up to $411 million at a 3% interest rate.

The facility will be built near Rayburn Energy Station 1 in Sherman and will interconnect in the ERCOT North Load Zone. It must meet minimum performance standards outlined in program rules. The TxEF is administered by PUCT through a competitive application process and rigorous financial review.

Currently, there are six other applications for the In-ERCOT Generation Loan Program under review, representing an additional 3,216 MW of proposed new dispatchable generation for ERCOT's grid. More information about TxEF and the loan program can be found on PUCT's website.

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