State Senators Investigate Texas Energy Fund After Applicant Fraud

Will the Texas Energy Fund Work?

Seriously? The Texas Energy Fund was set up to boost power to the electric grid. But then a company lied on its application to cash in. Now, angry lawmakers are taking a closer look into the PUCT's vetting processes.

The Texas Energy Fund (TEF) was supposed to be a safe bet for boosting the state's power grid. But recent events have raised serious doubts about how secure it really is. Some now worry the fund might be as risky as handing over the keys to a 16-year-old for a long, costly joyride. Propping up new Texas power projects must be in good hands. But the TEF is off to a rocky start. 

The Texas Energy Fund Comes Under Fire

The TEF offers grants and low-interest loans to add dispatchable power to the Texas grid. The logic is that Texas will have more power making capacity in the future. Plus, these power plants can get the juice flowing in a jiffy. But not all projects can receive a loan or grant. Solar, wind, and battery projects don’t qualify for funding. So, natural gas plants are the primary target for this money. 

The Public Utility Commission of Texas (PUCT) denied a loan to Aegle Power after it found serious problems with its application. Aegle Power claimed NextEra Energy as a co-sponsor for its 1,292 MW natural gas project. However, NextEra never agreed to be part of the project. In fact, it had no idea it was even listed. Oops! 

This raised major concerns about how the PUCT and its contractor, Deloitte, vet projects for the Texas Energy Fund. According to official documents, Deloitte has a four-year contract worth $107.4 million. And for that amount of money, state officials expect top-notch vetting. So, some explanation is needed. Soon, state leaders will get just that. 

Lawmakers Want Answers

Six lawmakers serve on an advisory committee for the TEF. That advisory committee’s next hearing, scheduled for October 8, will focus on how Deloitte reviewed the initial submissions. At some point, the advisory panel will convey more details to the Senate Finance Committee.  

Aegle Power’s fraudulent attempt now calls into question whether the process is tight enough to catch any other dishonest actors. The success or failure of the TEF could have a major impact on whether Texas has cheap electricity in the future. 

Is the Texas Energy Fund at Risk?

NextEra’s requested removal from the Aegle project shook confidence in the Texas Energy Fund. The PUCT promised that Deloitte carefully reviewed each application before setting it to advance. Yet, lawmakers want to know how a convicted fraudster like Aegle Power’s CEO could slip through.

With so much money at stake, officials are concerned. The upcoming scrutiny should give Texans answers, but many wonder if others may game the system. But for now, PUCT must ensure the fund does what it should: support reliable power projects.

Fortunately, you don’t have to ride these political waves. Secure your home’s power with a new plan at https://www.texaselectricityratings.com/electricity-rates. So no matter what’s happening with PUCT, you’ll have the best rate you can.