AUSTIN The Public Utility Commission of Texas (PUCT) on Wednesday denied Texas Energy Fund (TEF) “Application 162 – NextEra and Aegle Power” for the In-ERCOT Generation Loan Program. The application has failed the due diligence phase of the loan application process, and the project will not be eligible to receive a loan from the TEF. NextEra Energy notified the PUCT this week that it is not a party to the loan application.
“We’re still a long way from selecting any company to receive a Texas Energy Fund loan. Proposed projects that have reached this stage have only met the initial requirements for applications,” PUCT Executive Director Connie Corona said in a news release. “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.”
In addition to denying the application, the PUCT will also pursue a minimum 10 percent reduction in the contract payment amount owed to the agency’s TEF contractor Deloitte, which conducted the first round of application review, the release said.
At this time, 16 applications for the In-ERCOT Generation Loan Program remain in due diligence review. During this phase, which is expected to take up to eight months to complete, PUCT and Deloitte staff will verify each project’s details, including, but not limited to participating companies, financial viability, construction plans, interconnection capabilities, ability to complete the project and ability to pay back the loan.
An application may be denied at any point in the due diligence process. An applicant may also choose to withdraw their project. Those applications will then be removed from consideration by Commission order. One or more projects in the pool of remaining applications could replace applications removed from consideration.
The In-ERCOT Generation Loan Program is one of four TEF programs established under the Powering Texas Forward Act and will provide low-interest loans to finance new construction or upgrades to existing dispatchable electric generating facilities within the ERCOT power region.
To be eligible for a loan, a proposed project must add a minimum of 100 MW new generation to the ERCOT grid. Additional information on the project eligibility requirements and evaluation criteria can be found on the TEF Online website and in PUCT rule 16 TAC §25.510, which was adopted on March 21, 2024.
Initial disbursements for approved loans will be issued by December 31, 2025. Additional information about the TEF and the In-ERCOT Generation Loan Program is available on the PUCT website.
