Texas Governor Greg Abbott announced the third Texas Energy Fund loan agreement for a 721 megawatt natural gas power plant near Baytown. NRG Energy (NRG) will build the plant, which is estimated to begin generating power by summer 2028 and will serve the Electric Reliability Council of Texas power region, Abbott said in a statement. The loan agreement between the Public Utility Commission of Texas and NRG “provides low-interest loans for projects that add new, dispatchable power to the ERCOT region.” Under the loan agreement, total project costs are estimated to be $936M. The PUC is providing a 20-year loan of $562M, or 60% of the total project cost, at a 3% interest rate. The loan term runs from Sept. 26, 2025, through Sept. 25, 2045.
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