On August 29, the Public Utility Commission of Texas decided which projects will move forward to receive subsidies from the Texas Energy Fund - a $10 billion fund created through legislation and a constitutional amendment in 2023.
The agency approved 17 gas-fired power plant proposals totaling 9,781 megawatts of power, which means the projects will move forward to the “due diligence” phase as they seek to tap up to $5.38 billion in state taxpayer funds. The Commission made clear that making the list did not guarantee funding since contracts would still need to be finalized.
A full list of the projects can be found here.
The main Texas Energy Fund program, known as the In-ERCOT Generation Loan Program, was designed to apply only to limited types of power generation - currently all methane gas fired power plants - excluding cleaner, more reliable resources to meet growing demand and stress on the electric grid.
This year marks the first round of projects that could be subsidized with funds from taxpayers. The Texas Legislature allocated $5 billion to the PUCT, which represents half of the $10 billion authorized.
While the loans are the largest program, there are other programs within the Fund that the PUCT has not yet developed, including the Texas Power Promise backup generation and outside of ERCOT resiliency projects, which would protect communities during climate extremes. The PUCT also has the decision-making power to move forward on new rules for energy efficiency and demand response programs, which would save consumers money, ease stress on the grid, and not pollute the environment.
In response, Cyrus Reed, Conservation Director of the Sierra Club’s Lone Star Chapter, issued the following statement:
“This represents a giveaway of taxpayer money to the wealthy gas industry, including many existing large politically well-connected companies, plain and simple. Yes this was required by the Legislature, but if there was less political influence imposed on the PUCT, it would be moving much faster on grid solutions like energy efficiency, demand response, energy storage, and microgrids, that would save Texas families money instead of throwing it at companies that will take years to build more polluting infrastructure.”
“The PUCT needs to move forward on the other programs in the Texas Energy Fund that are much better suited to increase grid resiliency and don’t cost so much, and the Legislature needs to fund those programs rather than additional monies for dirty gas plants, and the Commission must also move forward on required rulemakings on demand response, energy efficiency and distributed energy resources.”
“I hope our lawmakers are paying attention to the growing opposition to these new gas plants across Texas, in places like Granbury and Sugar Land. Texans are waking up to the fact that gas plants take too heavy a toll on our water, air, and pocketbooks, and we should prioritize cleaner, faster, and more affordable solutions to meeting our rising electric demand.”
What's Sierra Club's position?
Our state leaders need to refocus their priorities on policies that invest in a 21st century grid system, that help Texas families reduce wasted energy, and prepare us to weather the impacts of the climate crisis. Rather than using our hard-earned money to subsidize wealthy corporations to build more polluting fossil fuel power plants, we should:
- Invest in a modern electric grid by developing regional microgrids, expanding the use of local clean energy and battery storage resources, burying power lines where it makes sense, and making high voltage transmission systems stronger.
- Pay Texans the same way wealthy corporations are paid to use less electricity when energy conservation calls are made.
- Increase investments in energy savings programs that lower electric bills, make homes more livable, and reduce stress on the grid.
- Remove anti-renewable policies that have made it harder to develop solar energy and energy storage.