The Public Utility Commission of Texas (PUCT) has selected the first four projects for its landmark program to sponsor electric generation projects outside the Electric Reliability Council of Texas (ERCOT) grid. The projects selected for the first round of the Texas Energy Fund (TxEF) Outside ERCOT Grant Program (OEGP) cost a total of $240 million.
The OEGP was established as a facet of the Powering Texas Forward Act on Nov. 7, 2023. The law created four programs to promote and advance facilities designed to supplement the state’s power grid, with the OEGP targeting transmission and distribution infrastructure and electric generating facilities outside the ERCOT grid. The program funds a variety of improvements, including:
- Facility modernization.
- Facility weatherization.
- Reliability and resiliency facility enhancements.
- Vegetation management.
Although the ERCOT grid is the most widely used electrical grid in Texas, it is not all encompassing. There are many areas not serviced by ERCOT that require their own dedicated grid to provide power. Ensuring these networks remain operational with minimal disruptions is critical to safeguarding the health and safety of Texas residents. By investing in these projects, PUCT will help strengthen these regions’ electric resiliency and reliability.
The projects receiving OEGP awards include:
- The Southwestern Electric Power Company will receive $200 million to replace aging copper wire and utility poles over 700 miles.
- The North Plains Electric Cooperative (NPEC) will spend $20.4 million to build a 115 kilovolt (kV) transmission loop. The loop will provide reliable service for customers in five counties.
- El Paso Electric will use $17.7 million to support the Continuous Online Monitoring Project, providing real-time monitoring and analytics to improve power generation availability and resilience.
- The NPEC will receive an additional $1.9 million for a separate project to expand the Ochiltree Interchange, increasing electric service capacity in the northeast and panhandle regions.
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