The Public Utility Commission of Texas (PUCT) has approved a new rule to establish the Texas Energy Fund (TEF) Outside of ERCOT Grant Program (OEGP), designed to enhance electric reliability outside the Electric Reliability Council of Texas (ERCOT) region. The program will provide grants to electric utilities and power generators to fund modernization, weatherization, reliability, resiliency improvements, and vegetation management.
PUCT Chairman Thomas Gleeson emphasized the importance of ensuring that all Texas utilities and power generators, regardless of location, maintain resilient systems. “Every corner of our state faces unique weather threats, and this rule will ensure the TEF improves electric reliability for all Texans,” Gleeson said.
The rule, TAC 16 §25.512, implements provisions of Senate Bill 2627, passed by the 88th Texas Legislature and signed into law by Governor Greg Abbott in 2023. It outlines grant application procedures, eligibility criteria, and award terms.
The ERCOT region covers roughly 75 percent of Texas, and some electric utilities operate outside this area. Eligible projects for grants include facility modernization, weatherization, and improvements to reliability, resiliency, and vegetation management. However, grants cannot be used to pay debt or upgrade facilities located outside Texas.
Detailed procedures for grant applications, review, and performance assessments will be specified in the rule. The Outside ERCOT Grant Program is part of the broader Texas Energy Fund, established under the Powering Texas Forward Act, which includes three additional programs aimed at improving energy infrastructure.
Related topics: