First Texas Energy Fund Completion Bonus Grant Awarded to 188-Megawatt Timmerman Power Plant

The Public Utility Commission of Texas on Nov. 10 approved the first award under the Texas Energy Fund Completion Bonus Grant Program, signing an agreement with the Lower Colorado River Authority for the 188-megawatt Timmerman Power Plant Unit 1 in Caldwell County. The natural gas-fired facility, which joined the Electric Reliability Council of Texas grid in August 2025, can reach full capacity within five minutes, offering fast-starting generation to support reliability during high demand.

Under the agreement, the LCRA will be eligible for a total grant of up to $22.56 million, paid in annual installments of $2.256 million over 10 years, based on operational performance verified by the Electric Reliability Council of Texas. The first evaluation period will run from June 1, 2026, through May 31, 2027, after which the authority may qualify for its initial payment.

The Completion Bonus Grant Program is one of four funding streams under the $10 billion Texas Energy Fund, approved by voters in 2023 to strengthen the electricity grid and encourage investment in dispatchable generation. The fund also offers low-interest loans and grants for new or expanded generation within the grid operator’s territory, and for resilience projects outside it. According to the commission, projects that add at least 100 megawatts of dispatchable capacity before June 1, 2029, qualify for completion bonuses, with higher incentives for earlier completion.

By awarding the first grant, the commission underscores its commitment to strengthening reliable energy infrastructure and attracting investment in fast-responding generation that can stabilize the Texas power system during critical events. The move also reflects Texas’ strategy to balance reliability needs with its transition toward cleaner and more diversified energy resources.