Governor Abbott Announces $216M Texas Energy Fund Loan for NRG's Houston Power Plant

Houston, TX — On August 6, 2025, Governor Greg Abbott announced a second Texas Energy Fund (TEF) loan agreement to fund a 456 megawatt (MW) natural gas power plant in Houston, built by NRG Energy Inc. (NRG), with operations expected by Summer 2026, as detailed in a press release today.

The Details:

• Governor Abbott said, “This 456 megawatt investment… will help bear the load of the largest electricity demand area in the state, ensuring reliable and affordable power.”

• The Public Utility Commission (PUC) is providing a 20-year, $216 million loan at 3% interest, covering 60% of the $360 million project cost, to serve the ERCOT Houston Load Zone.

• PUC Chairman Thomas Gleeson noted, “The Texas Energy Fund is accomplishing… securing reliable, on-demand power to fuel Texas’ rapid growth.”

• NRG’s Robert J. Gaudette added, “The development… is already providing significant construction jobs and will enhance grid stability.”

• The plant, at the TH Wharton Generating Station, will create permanent jobs and support the fifth-largest U.S. metro area, including Houston and Pasadena.

Why It Matters:
This project strengthens Texas’s energy grid and economy amid growing demand, with 15 additional TEF projects proposing 8,392 MW.