Texas public power utility Kerrville Public Utility Board marked a major milestone on April 17 with a groundbreaking ceremony for its new power generation plant.
Approximately 100 guests attended the event, including community leaders, project partners, stakeholders, and members of the Kerrville Area and Columbus Chambers of Commerce and the Texas PUC.
The ceremony marked the start of construction on a project that represents a significant step in KPUB’s long-term power supply planning and the first dispatchable generation project in the state financed by the Texas Energy Fund (TxEF) administered by the Public Utility Commission of Texas.
As the utility prepares for the expiration of a major power supply contract that currently provides a substantial portion of its energy portfolio, the new facility will play an important role in helping KPUB manage future energy needs, KPUB noted.
As a community-owned, not-for-profit utility, KPUB provides electricity to homes and businesses at some of the lowest rates in Texas and across the U.S., it said.
“With changes in the energy market and increasing demand across Texas, this project is about planning ahead for our customers,” said Mike Wittler, KPUB General Manager & CEO. “By investing in our own generation, we are working to maintain stable, affordable rates for our community.”
The new facility will be a natural gas-fired reciprocating internal combustion engine (RICE) plant capable of generating up to 122 megawatts of dispatchable power.
Because the plant can be brought online quickly, it will operate strategically based on market conditions -- generating power during periods of high demand or elevated prices, and allowing KPUB to purchase lower-cost power when market prices are more favorable. This flexible approach is designed to help manage overall power supply costs and support long-term rate stability.
The RICE generation plant offers key advantages, including high efficiency, minimal water usage, and the ability to respond quickly to changes in power demand.
“As energy demand continues to grow and costs become more volatile, this project is a proactive step to shield our customers from those rising costs,” said Amy Dozier, KPUB Assistant General Manager.
The facility will be located in Colorado County, approximately 10 miles south of Columbus, Texas, on a site selected for its strong infrastructure and access to four major natural gas pipelines.
The plant is modeled after Sky Global Power One, a 50-megawatt RICE plant located next door. That facility achieved 99.6% availability during Winter Storm Uri in 2021—despite widespread power generation failures statewide.
Building on that success, KPUB’s new natural gas-fired power generation plant will be equipped with six larger, more advanced engines provided by Everllence (formerly MAN Energy Solutions), a global leader in engine manufacturing.
The project’s engineering and design are led by SEnergy, a trusted KPUB partner, with Summit Industrial serving as general contractor and Sky Global Partners managing development and long-term plant operations.
The $175 million project is being financed through two sources.
In 2025, KPUB became the first -- and only municipally owned utility -- to receive a loan from the TxEF. This voter approved program, administered by the Public Utility Commission of Texas, provides low interest financing for eligible power generation projects to strengthen the ERCOT grid. The remainder of the project is funded through tax-exempt revenue bonds issued in July 2025.
