KERRVILLE PUBLIC UTILITY BOARD
THE KPUB
Energy Hub | SPRING 2025
Powering Ahead Together:
City Council Approves KPUB Generation Project KPUB is entering an exciting new chapter in the power generation market to help ensure stable rates for our customers for decades to come. In March, the Kerrville City Council unanimously approved our plan to build a natural gas-fired power generation facility, marking a historic step forward for our locally owned and controlled utility. This strategic initiative has been a long-term consideration for KPUB. Our mission is to be a responsive and efficient, locally-owned provider of safe and reliable utility service at the lowest responsible price. Owning our own generation allows us to live that mission, giving us greater control over our power supply and better protecting customers from market price volatility.
We’re grateful for the countless hours our board, city council, and staff invested in reviewing and advancing this project. Their thoughtful leadership made this milestone possible.
Construction is expected to begin this fall, with the 122 MW facility operational by June 2027. While KPUB will remain part of the ERCOT market, this project—combined with an updated hedging program—will provide added protection from price volatility, especially during extreme weather events such as Winter Storm Uri in 2021.
We’re proud to be one of only 16 finalists initially selected for the Texas Energy Fund’s (TEF) In-ERCOT Loan Program—and the only municipally owned utility among them. Project costs are estimated at $160-165 million, with 60% funded through a low-interest TEF loan and the remaining 40% through tax-exempt revenue bonds issued by KPUB. This project strengthens KPUB’s ability to protect our ratepayers and continue offering some of the lowest electric rates in Texas and across the nation. As we take this exciting step forward, we’re proud to be creating a brighter, more resilient energy future— powering ahead together. Visit kpub.com/power to explore FAQs and view additional community resources for this project. Mike Wittler
KPUB General Manager & CEO