PUC Publishes Proposal for Backup Power Program: Texas Grid Roundup #85

PUC advanced multiple Texas Energy Fund projects; commissioners adopt refined energy efficiency rules; PUCT staff publish proposal to implement the Texas Backup Power Package Program.

In this edition:

• The Public Utility Commission of Texas issued two notices of eligibility under the Texas Energy Fund Completion Bonus Grant Program — totaling $109.9 million — and provided extension requests for 10 projects;

• Commissioners adopted targeted updates to energy efficiency rules while signaling a broader review ahead; and

• Commission staff issued a proposal for publication for the Texas Backup Power Package.

These Grid Roundups, along with the full archives, select episodes of the Energy Capital Podcast including this one on how batteries are reshaping the grid with Fluence VP Suzanne Leta, Reading and Podcast Picks, and more – are for paid subscribers.

Commission approves Texas Energy Fund loan extension requests, $109 million for Completion Bonus Grants

The Public Utility Commission this month approved market factor extension requests for seven applicants participating in the Texas Energy Fund In-ERCOT Loan Program, extending the deadline for initial loan disbursements for approved projects within the state’s generous publicly funded program. The requests cover ten generation projects currently in due diligence; granting them will extend initial loan disbursement deadlines beyond the initial deadline of December 31, 2025.

Applicants blamed the delays on factors largely outside their control, including long lead times for critical equipment, contractor and labor availability, construction and permitting delays, and broader financing constraints. Some of these factors speak to the general hurdles that developers face in building new gas plants, further demonstrating the importance of continuing to invest in resources with shorter deployment times, such as solar and battery storage.

The commission also issued two notices of eligibility under the Texas Energy Fund Completion Bonus Grant Program.

Calpine Energy’s 460 megawatt project is eligible for up to $55.2 million in completion bonus grants, and NRG’s 456 megawatt project is eligible for up to $54.7 million.

If the projects successfully interconnect, grants will be paid in annual installments over a 10-year performance period, contingent on the plants meeting required performance standards. These approvals represent the fourth and fifth projects recommended for eligibility under the program, signaling continued momentum for the completion bonus program.