[USA] 2 Entergy gas plants approved by Texas regulators with $2.4B cap

As of September 11, 2025, the Public Utility Commission of Texas (PUCT) approved a pair of new gas plants proposed by Entergy, but imposed a hard cap on costs of $2.4 billion to protect ratepayers. [1] This followed regulatory concerns that the utility had not made sufficient efforts to ensure the projects were cost-effective. [2] In a statement, Entergy CEO stated that the 754-MW Legend Power Station and 453-MW Lone Star Power Station plants are critical to serve significant growth in southeast Texas. [3] Entergy expects summer coincident peak load to increase 20% by 2028. According to a memo filed by PUCT Chair Thomas Gleeson, the capital costs for the dispatchable portfolio, inclusive of allowance for funds used during construction on which Entergy Texas may seek a recovery and a rate of return are capped at Entergy Texas’ modified estimated costs for each project in the portfolio ($1.6 billion for the Legend power station and $799 million for the Lone Star). A previous memo by Gleeson had contemplated a lower cost cap of $1.8 billion.

[1] https://interchange.puc.texas.gov/Documents/56693_471_1537672.PDF

[2] https://www.entergy.com/news/entergy-texas-receives-puct-approval-for-two-power-plants-to-support-southeast-texas-growth#top

[3] https://interchange.puc.texas.gov/Documents/56693_453_1532808.PDF