452MW West Texas Power Plant Secures State Loan
Pecos Power has finalized a Texas Energy Fund loan for a gas-fired plant targeting electricity deliveries in 2027. The financing milestone adds another project to the state-backed generation pipeline.
Pecos Power Plant LLC has finalized the ninth loan under the Texas Energy Fund’s In-ERCOT Generation Loan Program, backing a 452MW natural-gas plant in Reeves County. The governor’s October 7 announcement places the project on a 2027 target for supplying the ERCOT market.
The milestone moves the project beyond an application for state support. The announcement does not disclose the loan amount, total construction cost or a general contractor, so the financing approval should not be converted into an invented project budget or contract award.
Project at a Glance
- Generation capacity:
- 452MW
- Project company:
- Pecos Power Plant LLC
- Sponsors:
- Mercuria / Continental Resources
- Operating target:
- 2027
- Loan value:
- Not disclosed in the announcement
Dispatchable capacity for the ERCOT market
The state identifies Mercuria and Continental Resources as the project’s co-sponsors. It describes a plant with quick-start capability and design provisions for West Texas winter conditions. Those features concern how the facility is intended to serve the system, rather than evidence that commissioning has already been completed.
The project adds a defined 452MW to the state-backed pipeline. It is distinct from the far larger announced power campuses associated with AI development elsewhere in Texas. Keeping each plant’s capacity, location and delivery target separate helps avoid overstating how much new generation will arrive in any particular year.
Financing is one part of the delivery program
A finalized loan is meaningful because it establishes a funding step that an application-stage proposal has not reached. Delivery still depends on construction, equipment installation, testing and the connection required to export power. The 2027 operating target should be followed against those physical milestones.
For contractors, the missing information is the package map: plant delivery responsibility, major equipment, civil work and electrical infrastructure. The public release does not establish those appointments. It would be premature to describe unnamed scopes as available bids, or to assign the work to companies involved in other plants backed by the same sponsors.
Next evidence to watch
The next useful updates will be a dated construction report and a clearer commissioning sequence. Together, those would show whether the project is progressing toward the stated operating year and when the plant is expected to become available to ERCOT.