PUCT Selects Initial Projects for Texas Energy Fund’s Outside ERCOT Grant Program

The Public Utility Commission of Texas (PUCT) has selected the first four projects under the Texas Energy Fund (TxEF) Outside Electric Reliability Council of Texas (ERCOT) Grant Program (OEGP). The next step will involve the PUCT and project sponsors finalizing grant agreements. The selected projects total $240,036,592 and are intended to strengthen electric resiliency and reliability for nearly 400,000 customers served by grids outside the ERCOT region.

“The Texas Energy Fund was created to benefit every citizen of our state regardless which grid or provider they get their power from,” said PUCT Chairman Thomas Gleeson. “While it’s critically important to add more power to the electric grids that serve Texas, we must also do everything we can to enhance and strengthen the systems we have in place, and that’s what these four projects will do.”

The approved projects include:

• El Paso Electric

  • $17,726,592 for the Continuous Online Monitoring Project to provide real-time monitoring and analytics to improve generation availability and operational resilience.

• North Plains Electric Cooperative

  • $20,430,000 for a 115kV transmission loop to improve service reliability for residential, commercial, and industrial customers in five northeast Texas counties.

  • $1,880,000 to expand the Ochiltree Interchange to increase electric service capacity in the northeast and panhandle regions.

• Southwestern Electric Power Company (SWEPCO)

  • $200,000,000 to replace aging copper wire and utility poles over 700 miles exposed to severe weather.

  • SWEPCO’s grant award meets the cap set by 16 TAC §25.512.

Eligible OEGP projects must focus on modernization of infrastructure, weatherization, reliability and resiliency improvements, or vegetation management. Grant payments are subject to funding availability and mutual agreement on the terms and conditions outlined in the grant agreements.

The OEGP is one of four TxEF programs established under the Powering Texas Forward Act (S.B. 2627), approved by Texas voters in a constitutional election on November 7, 2023.