Texas voters have passed a constitutional amendment, known as Proposition 7, which aims to create a $10 billion energy fund to improve the reliability of power-generating infrastructures in the state. This fund will be administered by the Public Utility Commission of Texas (PUCT) and will provide lower interest loans and incentives to make the state's grid more reliable. The proposal received support from 1.6 million voters, or 64.9%, in the Nov. 7 constitutional amendment election.

The primary objective of the Texas Energy Fund is to enhance the state's power-generating facilities by financing the construction of new ones and maintaining existing infrastructure. Lawmakers and regulators in Texas are determined to prevent another energy crisis like Winter Storm Uri in February 2021, which left millions of Texans without power, water, and heat for days. The catastrophic impact of that storm has urged policymakers to prioritize incentives for more dispatchable generation, with a particular focus on natural gas-fired power plants.

Winston Skinner, counsel at Vinson & Elkins, highlighted the significance of the Texas Energy Fund in achieving the goal of new infrastructure, stating, "The Texas Energy Fund represents a very significant step towards that goal of new steel in the ground." The bulk of the funds, amounting to $7.2 billion, will be allocated to building and upgrading power-generating facilities in the ERCOT region. This region, managed by the Electric Reliability Council of Texas, was heavily impacted by Winter Storm Uri.

Additionally, $1.8 billion of the fund will be dedicated to supporting the development of backup power sources for facilities throughout the state. This investment aims to ensure that Texas is better prepared to handle future extreme weather events and prevent widespread power outages. The remaining funds will be utilized to enhance the reliability of transmission, distribution, and power generation facilities outside of the ERCOT region.

Texans are acutely aware of the devastating consequences of an unreliable energy grid, as exemplified by the aftermath of Winter Storm Uri. Therefore, the passage of Proposition 7 demonstrates the determination of voters to address these issues and invest in the state's energy infrastructure. By creating the Texas Energy Fund, Texas aims to foster a more resilient power system, reducing the likelihood of future power outages and ensuring the well-being of its residents during extreme weather events.