AUSTIN, Texas — The Public Utility Commission of Texas (PUCT) has executed the fourth agreement under the Texas Energy Fund (TxEF) Completion Bonus Grant (CBG) Program, awarding support to NRG Energy, Inc. for a major expansion of its TH Wharton generating station in northwest Houston.
The agreement covers a 456-megawatt (MW) expansion project that will provide additional power to the Electric Reliability Council of Texas (ERCOT) grid. The Completion Bonus Grant Program is designed to incentivise qualifying electricity generation projects that can deliver power to the grid before June 1, 2029, helping the state address increasing demand and maintain system reliability.
The latest agreement marks another milestone in Texas’ efforts to expand its power generation capacity as population growth, industrial development and economic expansion continue to drive higher electricity consumption across the state.
“The Texas Energy Fund is providing reliable power to meet consumer demand today and setting up the state for a future of continued electric reliability,” PUCT Chairman Thomas Gleeson said. “We are prioritizing “speed-to-market” through the Completion Bonus Program and delivering immediate, measurable results for Texans.”
Under the agreement, NRG Energy is eligible to receive a maximum total grant award of $54.72 million. The funding may be distributed in annual payments of up to $5.47 million over a ten-year period, subject to the project meeting established performance requirements.
Unlike traditional grant programmes that provide funding upfront, the Completion Bonus Grant Program ties payments to operational performance. Annual payments will depend on how the facility performs during designated testing periods monitored by ERCOT.
The grid operator will evaluate the performance of the TH Wharton expansion and compare it against a reference group of generation facilities within the ERCOT region that do not receive grant funding. The performance benchmarks and eligibility requirements are outlined in the PUCT’s Completion Bonus Grant Program rules.
According to programme guidelines, the first test period for the TH Wharton expansion began on June 1, 2026, and will continue through May 31, 2027. Upon successful completion of this period and achievement of the required performance standards, the facility may qualify for its first grant payment.
The expansion adds two natural gas-fired combustion turbines to the TH Wharton site, significantly increasing the plant’s generation capacity. The new units were connected to ERCOT’s Houston Load Zone on May 26, 2026, allowing the project to begin contributing power to the Texas grid.
The addition of dispatchable natural gas generation is viewed as an important component of Texas’ strategy to improve grid resilience and reliability. Such facilities can provide electricity when demand peaks or when output from intermittent renewable energy sources fluctuates.
The TH Wharton project has also benefited from another Texas Energy Fund initiative. On July 31, 2025, the expansion received a low-interest, twenty-year loan worth $215.56 million through the TxEF In-ERCOT Generation Loan Program. The financing was intended to support construction and accelerate the delivery of new generation capacity to the state’s power network.
The project represents the first of three NRG Energy developments participating in both the Completion Bonus Grant Program and the In-ERCOT Generation Loan Program to successfully reach interconnection with the ERCOT grid.
State officials have increasingly focused on expanding power generation resources following periods of high electricity demand and concerns surrounding long-term grid reliability. The Texas Energy Fund was established to encourage investment in new generation infrastructure and support projects capable of strengthening the state’s electricity system.
The Completion Bonus Grant Program is one of four initiatives operating under the Texas Energy Fund framework. Together, the programmes are designed to promote the development of reliable generation resources while supporting Texas’ broader energy security objectives.
As demand for electricity continues to rise across the state, regulators and energy providers are expected to prioritise projects capable of delivering dependable generation capacity, with performance-based incentives playing a growing role in future infrastructure development.
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