March 14, 2025—

The Kerrville City Council unanimously approved the funding for the Kerrville Public Utility Board’s (KPUB) proposed natural gas-fired power generation facility this week, marking a significant milestone in the utility’s strategic plan to provide long-term cost stability for customers.

With this approval, KPUB will move forward with the financing and development of the project, which will be a natural gas-fired reciprocating internal combustion engine (RICE) generation plant. Project costs to build the facility are estimated to be up to $175 million, with 60% funded through a low-interest loan from the Texas Energy Fund (TEF) and the remaining 40% through tax-exempt revenue bonds issued by KPUB. Construction is set to begin by summer 2025, with the plant expected to be operational by June 2027.

“Our Board, members of City Council, and staff have invested countless hours and participated in numerous meetings to thoroughly review, evaluate, and advance this project,” said Mike Wittler, KPUB General Manager & CEO. “Their commitment and thoughtful decision-making have been instrumental in ensuring this investment is the right path forward for our utility and the community we serve.”

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