October 7, 2026 — The planned 452 MW natural gas power plant in Reeves County, Texas, has reached a financing milestone. On October 7, Governor Greg Abbott announced that the loan agreement between the Public Utility Commission of Texas (PUCT) and Pecos Power Plant LLC had been finalized under the Texas Energy Fund. Mercuria and Continental Resources are co-sponsors of the project.
Pecos Power Plant is expected to begin generating electricity for the ERCOT grid in 2027. Once operational, the facility will add dispatchable power in West Texas, with enough capacity to serve approximately 110,000 Texas homes.
The plant is designed with quick-start capabilities to respond to changing electricity demand and features suited to West Texas winters. These capabilities will help provide a dependable source of power for homes and businesses while supporting reliability across the ERCOT grid.
The agreement is the ninth finalized through the Texas Energy Fund’s In-ERCOT Generation Loan Program, which offers low-interest financing for new power generation projects. The eight projects approved before Pecos Power Plant represent a combined 4,994 MW of planned capacity. Pecos Power Plant adds to that investment in the infrastructure needed to meet Texas’ growing electricity needs.
