Houston power plant to expand using $216M loan from Texas Energy Fund

The Public Utility Commission of Texas is providing a 20-year loan for $216 million, and total project costs are estimated at less than $360 million, per the release. This is the second agreement finalized under the loan program.

The new facility is expected to begin operations by summer 2026 and will interconnect in the ERCOT Houston Load Zone, which includes Houston, Pasadena and The Woodlands.

“This 456-megawatt investment in the Texas grid will help bear the load of the largest electricity demand area in the state, further ensuring reliable and affordable power for countless homes and businesses in the greater Houston area,” Abbott said in the release.

Another detail

The TH Wharton facility currently has a total generation capacity of approximately 1,001 megawatts, enough to support about 820,000 homes, according to NRG’s website.

The new power plant will exclusively connect with CenterPoint Energy and serve Texas consumers, NRG confirmed in an email.

“The development of our new units at TH Wharton is already providing significant construction jobs, and once online next year will provide additional permanent jobs, enhanced grid stability and regional economic growth,” Robert J. Gaudette, executive vice president and president of NRG Business and Wholesale Operations, said in the release.

Looking ahead

The Public Utility Commission of Texas is expected to make initial disbursements for the approved loan by Dec. 31.