Texas Voters Approve Billions in Funding for Power Plants and Grid Reliability

Texas voters have approved a constitutional amendment creating the Texas Energy Fund, which will inject $10 billion into energy infrastructure, including $7.2 billion for power plant construction. The Public Utility Commission of Texas will oversee the fund, a new responsibility for the agency. However, doubts remain about the effectiveness of the incentive program in spurring investment in natural gas power plants, as underlying market realities make building new plants a risky bet. The money will be distributed as low-interest loans, but there are concerns about the ability to recoup the investment due to advances in energy technology and the transition away from fossil fuels. The Texas Energy Fund will also support energy resilience projects and grid overhauls.