News Release > Entergy Texas announces strategic plan to keep Southeast Texas a STEP Ahead of growing energy needs

Entergy Texas announces strategic plan to keep Southeast Texas a STEP Ahead of growing energy needs

05/30/2024

The company announces the need for a 40% increase in generation capacity within the next four years to meet significant customer demand

THE WOODLANDS, Texas – Texas is one of the fastest-growing states in the nation, with a population that is projected to reach 40 million by 2050. This rapid growth brings many benefits, such as economic development and job creation, but it also poses significant challenges, especially in terms of meeting the energy needs of expanding communities.

Entergy Texas expects to see a significant increase in energy demand across its residential, commercial and industrial customer base over the next few years. This anticipated surge in energy consumption requires the Southeast Texas power grid to have an additional 1,600 MW of generation capacity by 2028, which is approximately 40% of Entergy Texas’ current generation capacity.

"Over the last three years, Entergy Texas reached commercial operation on a state-of-the-art 993 MW natural gas plant, contracted a 150 MW solar facility, and started construction on a highly advanced 1,215 MW natural gas plant, but that’s still not enough to support the extraordinary growth we’re seeing in Southeast Texas,” said Eliecer Viamontes, president and CEO of Entergy Texas. “To support the everyday energy needs of our growing communities, we’ve developed a strategic plan that will provide a diverse mix of generation, strengthen the Southeast Texas power grid, and drive economic growth – all while striving to keeping rates affordable for our customers.”

Entergy Texas developed the Southeast Texas Energy Plan, also known as STEP Ahead, to meet the generation capacity necessary to keep the lights on and power the economic growth. The six-step plan also aims to develop more reliable, affordable, and sustainable power so Texas can remain a premier destination for families and businesses.

The key components of STEP Ahead include:

• Keeping rates affordable. Entergy Texas rates have consistently been below the national and state averages, and the company will strive to maintain that position during the buildout of this plan to responsibly serve Southeast Texas customers.
• Building more power generation immediately. A robust, integrated plan will be submitted to the Public Utility Commission of Texas to augment existing generation facilities with new power plants as soon as possible to reach the required 40% increase in capacity by 2028.
• Sufficient 24/7 dispatchable power. This step involves leveraging Southeast Texas’ existing infrastructure and unique regional characteristics to build new natural gas power plants. The design of these plants will enable carbon capture and hydrogen technology to help meet customer sustainability goals and position Entergy Texas to comply with current and potential changes to federal regulatory requirements.
• “All-of-the-above” generation. The majority of the large-scale businesses relocating and expanding their operations in Texas are seeking a diverse portfolio of power generation resources for siting new investments. Adopting an “all-of-the-above" approach inclusive of renewables will help give Southeast Texas an advantage in economic development moving forward.
• Routing power to where it’s needed. This portion of the plan calls for upgrading existing transmission infrastructure and installing new transmission lines to quickly transport reliable power to the fast-growing areas of Southeast Texas.
• Protecting the power grid from extreme weather. The Gulf Coast region is experiencing an increase of extreme weather events. To reduce the duration of weather-related outages and restoration costs, Entergy Texas developed a resiliency plan that will go before the PUCT for approval later this year. The company plans to leverage grants from the recently passed Texas Energy Fund to make necessary resiliency investments at an affordable cost.

Entergy Texas will file its first set of proposals for STEP Ahead in early June, which will require approval from the PUCT. The company plans to announce additional details regarding the next set of proposals in the coming months.

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About Entergy Texas

Entergy Texas, Inc. provides electricity to approximately 512,000 customers in 27 counties. Entergy Texas is a subsidiary of Entergy Corporation, a Fortune 500 electric company. Entergy powers life for 3 million customers through its operating companies in Arkansas, Louisiana, Mississippi and Texas. We’re investing in the reliability and resilience of the energy system while helping our region transition to cleaner, more efficient energy solutions. With roots in our communities for more than 100 years, Entergy is a nationally recognized leader in sustainability and corporate citizenship. Since 2018, we have delivered more than $100 million in economic benefits each year to local communities through philanthropy, volunteerism and advocacy. Entergy is headquartered in New Orleans, Louisiana, and has approximately 12,000 employees. For the latest news from Entergy Texas, visit the Newsroom and connect with @EntergyTX on social media.