Rayburn Electric Cooperative, headquartered in Rockwall, Texas, has secured a significant $411 million loan from the Texas Energy Fund to construct a new 570-megawatt natural gas power plant in Sherman. This project marks the first time an electric cooperative has received funding from the Texas Energy Fund, a program designed to enhance the Electric Reliability Council of Texas (ERCOT) grid with new dispatchable generation.
Strengthening Local Power Supply
The new facility, named Rayburn Energy Station II, will be located near the existing Rayburn Energy Station 1 site in Sherman. It is expected to come online in 2028, providing reliable power to North Texas, one of the fastest-growing regions in the country. Rayburn Electric Cooperative serves over 625,000 Texans through its four member-owned distribution cooperatives: Fannin Electric Cooperative, Farmers Electric Cooperative, Grayson-Collin Electric Cooperative, and Trinity Valley Electric Cooperative.
Governor Greg Abbott announced the loan agreement, emphasizing Texas’s commitment to maintaining its status as the energy capital of the world. “The Texas Energy Fund brings new, reliable generation online to ensure our power supply meets demand,” Abbott stated. “This project is another step toward keeping our grid strong and our economy the envy of the world.”
Community and Economic Impact
Rayburn Electric Cooperative President and CEO David A. Naylor highlighted the strategic importance of the project, stating, “Rayburn Energy Station II represents a major milestone and strategic investment in reliability for our four Member cooperatives and the communities we serve across North Texas.” The cooperative’s focus on providing dependable and cost-effective energy solutions aligns with the broader goals of the Texas Energy Fund, which was approved by voters to secure new power generation for the state.
The Public Utility Commission of Texas (PUCT) is administering the loan, which covers up to 60% of the project’s estimated $685 million total cost. The loan features a 3% interest rate over a 20-year term, from June 2026 to June 2046. PUCT Chairman Thomas Gleeson noted the program’s success in fulfilling its voter-approved mandate, stating, “The TxEF is delivering on that promise, and Rayburn Electric Cooperative’s new 570 MW power plant is proof. We are ensuring Texas families and businesses have power they can depend on for years to come.”
As the first cooperative to qualify for this funding, Rayburn’s project sets a precedent for future applications. Currently, six additional applications are under review, representing a combined 3,216 MW of proposed new dispatchable generation for the ERCOT grid.
Original reporting: The Dallas Express — read the source article.
