The PUCT’s selections mark a significant step for the TEF In-ERCOT Loan Program, which was established under the Powering Texas Forward Act following a constitutional amendment approved by Texas voters on November 7, 2023. The PUCT authority stems from SB 2627, which Texas enacted in June 2023 as part of its efforts to shore up the state’s power sector in the wake of the Winter Storm Uri, the deadly February 2021 storm that prompted an average 34 GW of unplanned generation outages across the Electric Reliability Council of Texas (ERCOT) grid for more than two consecutive days.
SB 2627 establishes a low-interest loan and grant program of up to $7.2 billion (of a legislated total of $10 billion) for “dispatchable” generation. The term under Texas law refers to power sources whose “output can be controlled primarily by forces under human control,” (for example, natural gas, coal, and nuclear), as opposed to variable resources that depend on natural forces (for example, wind and solar). Notably, the law explicitly deems electric energy storage facility ineligible for loans.
The TEF loans, which must have a term of 20 years with an interest rate of 3%, may be used to either finance upgrades to existing dispatchable generation facilities that increase capacity by at least 100 MW or fund the construction of new dispatchable generation projects with a minimum capacity of 100 MW. Eligible new projects, notably, also qualify for a completion bonus grant of up to $120,000 per MW if interconnected by June 1, 2026, or up to $80,000 per MW if interconnected before June 1, 2029.
Seventeen New Gas-Fired Projects
The PUCT on Thursday noted it received 72 applications—requests to finance a combined 38.4 GW—for loans totaling $24.41 billion. “The projects selected to advance today would provide dispatchable power generation and reliability benefits to multiple regions of the state,” the PUCT said.
**1. No loans for energy storage which would help to stabilize the ERCOT grid. **
2. No loans to make the existing natural gas systems and power plants weather proof which were the cause of the problem.
The people of Texas are being exploited by the fossil fuels industry and the elected weird government representatives who double as fossil fuels representatives.