The Public Utility Commission of Texas (PUCT) recently made headlines by denying an application submitted under the Texas Energy Fund (TEF) In-ERCOT Generation Loan Program. The application, labeled “Application 162 – NextEra and Aegle Power,” did not pass the due diligence phase, marking a significant step in ensuring that only financially sound and viable energy projects benefit from the fund.

NextEra Energy Withdraws, PUCT Upholds Integrity

NextEra Energy, a leading player in the energy sector, officially notified the PUCT that it was not involved in the loan application process, leaving Aegle Power as the sole entity behind the proposal. The PUCT, standing firm in its commitment to rigorous oversight, ensured that projects must meet stringent requirements at every stage of the application process. 

“We’re still a long way from selecting any company to receive a Texas Energy Fund loan,” said PUCT Executive Director Connie Corona. “Proposed projects that have reached this stage have only met the initial requirements for applications. We have a multi-stage application and verification process that gets more rigorous at every step to ensure only financially sound applicants with viable projects receive these loans.”

PUCT’s Commitment to Accountability

The denial of this application isn’t just a story about a missed opportunity; it’s a testament to the PUCT’s diligence in overseeing the Texas Energy Fund. The Commission also announced that it would pursue a minimum 10% reduction in the contract payment to Deloitte, the TEF contractor responsible for the initial review process, underscoring its commitment to fiscal responsibility and transparency.

In-ERCOT Generation Loan Program: A Key to Powering Texas Forward

The In-ERCOT Generation Loan Program, one of four programs under the *Powering Texas Forward Act*, is designed to offer low-interest loans aimed at financing new construction or upgrading existing dispatchable electric generating facilities. These facilities are critical to maintaining the resilience of the ERCOT power grid, which serves over 26 million Texans.

To qualify for a loan, projects must add at least 100 MW of new generation capacity to the ERCOT grid, a benchmark that helps ensure Texas can meet its growing energy demands. The 16 remaining applications under review will undergo rigorous due diligence, a process expected to last up to eight months. This phase includes verification of financial stability, construction plans, interconnection capabilities, and the ability to repay loans. At any point, applications that do not meet these standards can be denied or withdrawn.

Loan Disbursements and Next Steps

For projects that make it through this rigorous evaluation process, initial loan disbursements are slated to be issued by December 31, 2025. With the PUCT taking every precaution to ensure only the most viable and beneficial projects proceed, the Texas Energy Fund continues to be a critical part of the state's efforts to enhance energy infrastructure.

By balancing innovation and accountability, the Texas Energy Fund Loan Program is set to drive Texas forward, helping to meet future energy demands while maintaining the state's commitment to transparency, financial responsibility, and grid reliability.

For more info, visit puc.texas.gov