Texas lawmakers question agency’s ability to oversee $5 billion energy loan program after glitch

The Texas agency overseeing a $5 billion low-interest loan program to help build new power plants, and the firm it’s paying millions to manage it, missed red flags on an application and chose the project as a finalist for a loan.

When the issues came to light, the Public Utility Commission of Texas rejected the application on Sept. 4. But the incident put a cloud over the rollout of the newly-created Texas Energy Fund, angering lawmakers and raising questions about the agency’s ability to implement the program.

The PUC initially advanced the project put forth by Aegle Power, whose CEO Kathleen Smith in 2017 was convicted in what the U.S. Justice Department called an “ embezzlement scheme.” Aegle Power also included the name of another company, NextEra, which told the PUC it was included on the application without its knowledge or consent.

The PUC was created to regulate Texas’s electric utilities market. After Winter Storm Uri in 2021, its responsibilities ballooned as lawmakers passed measures aimed at strengthening the state’s power grid. Its staff grew by about 50% and its budget increased significantly, too.

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