The Public Utility Commission of Texas on Nov. 10 entered into the first agreement under the Texas Energy Fund (TxEF) Completion Bonus Grant Program with the Lower Colorado River Authority for its 188-megawatt power plant in Caldwell County.
The CBG program provides funding for electric generation projects that will supply power to the Electric Reliability Council of Texas (ERCOT) grid before June 1, 2029.
“Texas’ electric grid is evolving rapidly to meet the needs of our growing economy and rising energy demand,” PUCT Chairman Thomas Gleeson said. “I am pleased to see the TxEF’s Completion Bonus Grant Program is already incentivizing ‘speed to market’ in the construction of safe, reliable power plants in Texas. This LCRA power plant will help us both meet the needs of today and prepare our grid for the future.”
Under the grant agreement, LCRA will be eligible to receive a maximum total grant award of $22.56 million for the project, Timmerman Power Plant Unit 1. This grant may be paid in annual payments of up to $2.256 million per year, over a 10-year period.
Annual payments are contingent upon the performance of the power plant. Performance is measured by ERCOT during an annual “test period” and compared to the performance of a reference group of other generation resources in the ERCOT region.
Specific performance metrics are outlined in the PUCT’s CBG rule. Timmerman Power Plant Unit 1’s first test period will run June 1, 2026 to May 31, 2027, after which LCRA may receive its first grant payment, the PUC said.
Timmerman Power Plant Unit 1 is a natural gas power plant, capable of starting within 45 seconds and reaching full capacity within five minutes. It connected to the ERCOT grid on August 14, 2025.
The TxEF CBG Program is one of four TxEF programs.
LCRA serves customers and communities throughout Texas by managing the lower Colorado River; generating and transmitting electric power; providing a clean, reliable water supply; and offering outdoor adventures at more than 40 parks along the Colorado River from the Texas Hill Country to the Gulf Coast.
