A loan agreement from the Texas Energy Fund will pay for the construction of a 456 megawatt power plant in Northwest Houston, according to an Aug. 4 news release from Gov. Greg Abbott.

What we know

The new natural gas plant will be constructed at the existing TH Wharton Generating Station—located at 16301 Hwy. 249—which is one of NRG Energy's 18 power plants in Texas.

According to the release, the agreement is part of the state’s In-ERCOT Generation Loan Program, which provides low-interest loans to energy companies under the condition that the project adds at least 100 megawatts of generating capacity to the Electric Reliability Council of Texas' grid.

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.