The Kerrville City Council (Texas) unanimously approved funding for the Kerrville Public Utility Board’s (KPUB) proposed natural gas-fired power generation facility. The step towards enhancing local energy infrastructure was announced Friday.
The project, estimated to cost up to $175 million, will use a natural gas-fired reciprocating internal combustion engine (RICE) generation plant designed to provide long-term cost stability for customers. KPUB is a community-owned, not-for-profit electric company located about an hour west of San Antonio.
The project’s financing will be split, with 60% coming from a low-interest loan through the Texas Energy Fund (TEF) In-ERCOT Generation Loan Program and the remaining 40% through tax-exempt revenue bonds issued by KPUB.
In a statement, Mike Wittler, KPUB General Manager, and CEO said, “Our Board, members of City Council, and staff have invested countless hours and participated in numerous meetings to thoroughly review, evaluate, and advance this project.”
Utility officials said the new power plant is expected to generate up to 122 MW at peak capacity, offering high efficiency, minimal water usage, and quick response to power demand fluctuations. [What’s a Mega Watt?]
Construction is expected to begin by summer 2025, with the facility projected to be operational by June 2027.
KPUB provides electricity to approximately 24,000 customers throughout Texas in a 146-square-mile area, shown here, and includes Kerrville, Center Point, Ingram, Hunt, and surrounding areas. Image: KPUB
The electrification of the economy is addressed in the ConstructConnect 2025 Construction Outlook, where Chief Economist Michael Guckes writes that trends “will continue to drive significant demand for power generation and power infrastructure projects.”
Guckes said, “The growth of artificial intelligence, the increasing adoption of electric vehicles, and the growing reliance on electric appliances and devices will further stimulate the need for electric generation and infrastructure construction in the coming years.”
KPUB’s project is one of only 16 selected from 72 applicants for the TEF program and the only municipally owned project, KPUB said in its news release.
The initiative aligns with the Lone Star State’s broader efforts to bolster electrical grid reliability. The TEF program aims to add up to 10,000 MW of new dispatchable power generation across the state.
The exact location of the plant was not disclosed. KPUB officials said it would be situated outside its service area due to limitations in the local natural gas pipeline infrastructure.
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