Texans to Vote on Funding for Modernizing Electricity Generation, According to Reuters

By Nicole Jao

Texans are preparing to vote on a constitutional amendment this Tuesday that could establish a dedicated fund for the "construction, maintenance, and modernization" of the state’s electric generating facilities.

The proposed energy fund would be managed solely by the Public Utility Commission of Texas, which would oversee the distribution of loans and grants aimed at maintaining and upgrading electricity generation infrastructure.

A significant portion of the fund, $7.2 billion, is earmarked for loans and incentives to support the development of new power-generating facilities, particularly within the Electric Reliability Council of Texas (ERCOT) region.

This initiative, known as Proposition 7, is part of a broader strategy by Texas lawmakers and regulators to prevent a recurrence of the energy crisis that emerged during Winter Storm Uri in February 2021. That severe storm resulted in millions of residents being left without power, water, and heat for extended periods, as ERCOT grappled with grid stability after a substantial number of generating units went offline.