Houston Daily

Texas Governor Greg Abbott has announced a new Texas Energy Fund (TxEF) loan agreement to support the construction of a 1,350 megawatt natural gas power plant in Ward County. The project, known as Competitive Power Ventures (CPV) Basin Ranch, is scheduled to begin generating electricity for the Electric Reliability Council of Texas (ERCOT) region in 2029.

“The Texas Energy Fund secured the largest capacity project to date, with 1,350 MW of new, reliable power generation coming online that will further fortify our state grid and support our growing economy for decades,” said Governor Abbott. “As one of the largest sources of dispatchable power generation for the grid, this investment is just the latest example of why Texas is the energy capital of the world. We will take every step necessary to ensure affordability and electric reliability for Texas homes and businesses across our great state.”

Public Utility Commission of Texas (PUC) Chairman Thomas Gleeson commented on the progress made through TxEF investments: “The Texas Energy Fund has now financed the addition of over 3,100 MW of new, reliable power for the State of Texas. There is important work still ahead, but this newest commitment to invest in Texas is a clear demonstration of the value and reliability benefits the TxEF is bringing to bear.”

Competitive Power Ventures CEO Sherman Knight expressed appreciation for state officials’ support: “We thank Governor Greg Abbott, his administration, the Texas Legislature, the PUC, and Ward County for their continued support of the CPV Basin Ranch Energy Center that will provide critical baseload power to the citizens of Texas. Through incentives and available natural resources, Texas is paving the way for new investments and development across the state; CPV looks forward to playing a role in that future.”

This facility represents both TxEF’s largest capacity project so far and one of ERCOT’s biggest planned sources for dispatchable electricity once it comes online. The loan agreement between PUC and CPV marks TxEF’s fifth under its In-ERCOT Generation Loan Program.

Under this arrangement, total costs are estimated at $1.88 billion. Of this amount, $1.12 billion—or about 60%—will be provided as a low-interest loan by PUC over twenty years at an interest rate of 3%. The term extends from October 28, 2025 through October 28, 2045.

The plant will be constructed at CPV’s Basin Ranch Energy Center in Ward County and connect into ERCOT’s West Load Zone. It must also meet minimum performance standards set by program rules.

TxEF loans are administered through a competitive application process involving financial review by PUC staff. Currently there are twelve additional applications under due diligence review within this program; together they could add nearly 5,900 megawatts more dispatchable generation capacity to ERCOT if approved.

More information about TxEF and its In-ERCOT Generation Loan Program can be found on the Public Utility Commission's website.