daily · Energy Policy

Texas announces energy-fund loan for 452 MW Pecos gas power project

The ninth finalized Texas Energy Fund generation loan backs a Reeves County gas project. The state expects ERCOT generation in 2027; this is planned capacity, not current output.

By Greener Numbers Editorial Team · Published October 7, 2026 · Updated 10/7/2026

Governor Greg Abbott's office announced on October 7, 2026 that Texas has finalized its ninth Texas Energy Fund loan for a 452 MW natural-gas power project in Reeves County. Pecos Power Plant LLC is developing the project, with Mercuria and Continental Resources as co-sponsors.

The governor's announcement says the facility is set to begin generating for the ERCOT power region in 2027. That is a planned operating milestone, not confirmation that the new capacity is already supplying the grid.

The loan agreement is part of the Public Utility Commission of Texas's In-ERCOT Generation Loan Program. The state describes the program as providing low-interest loans for new dispatchable generation. The announcement does not disclose this project's loan amount.

PUCT Chairman Thomas Gleeson says the plant will have quick-start capabilities to respond to fluctuating demand and a design suited for West Texas winters. Those are the state's descriptions of the planned facility, not operating performance verified by this publication.

The governor's office says the eight projects already approved through the program represent 4,994 MW of planned new power. The Pecos announcement is a financing milestone in that buildout, and construction and commissioning will determine when the capacity becomes available.

This is natural-gas generation, not a renewable-energy project. The release does not provide quantified emissions, household-bill savings or a guarantee that the plant will prevent future outages.

Official source: gov.texas.gov ↗