Texas PUC Approves Entergy Gas Plants, Caps Costs

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The Texas Public Utility Commission (PUC) has approved Entergy Texas' plan to construct two natural gas-fired generating units, while capping the recoverable construction costs at $2.4 billion. This decision, made during a meeting on September 11, aims to protect ratepayers from potentially higher costs during the construction phase. Although an administrative law judge had previously recommended denying Entergy's application due to concerns over cost-effectiveness, the PUC acknowledged an urgent need for additional capacity in the region by 2028, leading to the approval with specific conditions.

The two plants, Legend Power Station and Lone Star Power Station, are expected to provide a combined 1,207 MW of energy and generate significant economic activity during construction. Entergy Texas emphasized the necessity of these facilities to support the growing demand for power in Southeast Texas, with plans for both plants to be operational by 2028. The PUC's approval also includes requirements for weatherization and future implementation of hydrogen operations and carbon capture technologies, reflecting a commitment to sustainable energy practices.