June 7, 2024—The Kerrville Public Utility Board (KPUB) is taking the first steps in a lengthy process of exploring the possibility of owning its own generation. This strategic move has been a long-term consideration for the electric utility company for several decades. On May 30, 2024, the utility filed a notice of intent with the Public Utility Commission of Texas (PUCT). This non-binding notice positions KPUB as a potential applicant for the five-billion-dollar Texas Energy Fund’s (TEF) In-ERCOT Generation Loan Program and Completion Bonus Grant Program.
The TEF In-ERCOT Generation Loan Program was developed by the Texas Legislature and the Public Utility Commission of Texas (PUCT) to provide low-interest loans for the construction of or upgrades to dispatchable electric generating facilities in the ERCOT region. TEF is a crucial component of the state’s plan to improve grid reliability by incentivizing natural gas-fired power plants with a goal of adding up to 10,000 new megawatts (MW) of generation to the state’s power supply.
“The energy market has become increasingly volatile, and owning our generation would better position KPUB to continue to maintain stable rates for our customers for decades to come,” said Mike Wittler, KPUB General Manager & CEO. “As we go through this far-reaching decision process, we look forward to engaging with our customers to discuss and receive feedback on KPUB’s path for the future.”
The PUCT began accepting applications for the In-ERCOT Generation Loan Program on June 1, 2024, and initial disbursements for approved loans will be issued by Dec. 31, 2025. Additional information about the TEF and the in-ERCOT Generation Loan Program is available on the PUCT website at puc.texas.gov.
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