NRG · 10-Q · 2026Q2 · Full report
Texas Energy Fund Financing
NRG ENERGY, INC. · 2026-08-04 · Importance 71 · Surprise 60 · In source text
Texas created the Texas Energy Fund through SB 2627 to provide 3% loans and completion bonus grants for dispatchable generation in ERCOT. NRG received approval for more than 1,500 MW across three projects and entered into loan agreements totaling $1.148 billion: $216 million for the 415 MW T.H. Wharton facility, $562 million for the 689 MW Cedar Bayou 5 facility, and $370 million for the 443 MW Greens Bayou 6 facility. T.H. Wharton began commercial operations on May 26, 2026. On June 17, 2026, NRG entered into an agreement for up to $54.72 million in completion bonuses payable over ten annual installments, subject to performance.
Key facts
- On September 26, 2025, NRG entered into a $562 million loan agreement with the PUCT under the TEF to support development of Cedar Bayou 5, a 689 MW facility. source
- On November 20, 2025, NRG entered into a $370 million loan agreement with the PUCT under the TEF to support development of Greens Bayou 6, a 443 MW facility. source
- On July 31, 2025, NRG entered into a $216 million loan agreement with the PUCT under the TEF to support the development of T.H. Wharton, a 415 MW facility. source
- On June 17, 2026, NRG entered into a completion bonus grant agreement with the PUCT for T.H. Wharton for up to $54.72 million, to be paid in ten annual installments, subject to performance of the facility. source
- The PUCT completion bonus grant program provides for grants of $120,000 per MW for dispatchable generation projects interconnected before June 1, 2026, or $80,000 per MW for projects interconnected on or after June 1, 2026 but before June 1, 2029, subject to performance requirements. source
- Through SB 2627, the Texas Legislature created the Texas Energy Fund (TEF) to provide grants and low-interest loans (3%) to incentivize development of more dispatchable generation and smaller backup generation in ERCOT. source
- NRG filed and received approval from the PUCT for loan proceeds for three separate projects totaling more than 1,500 MW of capacity. source
- T.H. Wharton’s first test period runs from June 1, 2026 through May 31, 2027, after which NRG will be eligible for its first grant payment. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | negative | realized | -1.4% | On September 26, 2025, NRG entered into a $562 million loan agreement with the PUCT under the TEF to support development of Cedar Bayou 5,… |
| liability | negative | realized | -0.9% | On November 20, 2025, NRG entered into a $370 million loan agreement with the PUCT under the TEF to support development of Greens Bayou 6,… |
| cash | positive | contingent | +0.0% | On June 17, 2026, NRG entered into a completion bonus grant agreement with the PUCT for T.H. Wharton for up to $54.72 million, to be paid… |
| cash | positive | contingent | — | The PUCT completion bonus grant program provides for grants of $120,000 per MW for dispatchable generation projects interconnected before… |
| cash | positive | committed | — | NRG filed and received approval from the PUCT for loan proceeds for three separate projects totaling more than 1,500 MW of capacity. |
| liability | negative | committed | — | NRG filed and received approval from the PUCT for loan proceeds for three separate projects totaling more than 1,500 MW of capacity. |
| cash | positive | probable | — | T.H. Wharton’s first test period runs from June 1, 2026 through May 31, 2027, after which NRG will be eligible for its first grant payment. |