Outside ERCOT Grant Program

The Outside ERCOT Grant Program (OEGP) is administered by the Texas Energy Fund under the oversight of the Public Utility Commission of Texas (PUCT). This program provides targeted funding to enhance electric reliability and infrastructure in areas of Texas that fall outside the Electric Reliability Council of Texas (ERCOT) power region. As Texas experiences growing energy demands and increasing stress on grid infrastructure, the OEGP seeks to invest in modernized energy systems and facilities that serve non-ERCOT regions, thereby improving statewide energy resilience and reliability. The program supports projects that address four primary objectives: facility modernization, facility weatherization, reliability and resiliency improvements, and vegetation management. These investments are designed to protect infrastructure from extreme weather, reduce outages, and enhance the capacity of utilities to meet regional energy needs. The OEGP explicitly excludes projects serving industrial or private use networks, operations expenses, new electric generation resources for wholesale or end-user load, and several other categories, ensuring the funds are directed toward public-serving electric infrastructure improvements. Eligible applicants include existing electric utilities, electric cooperatives, municipally owned utilities, river authorities, and entities owning qualifying facilities under PURPA that operate in Texas but outside the ERCOT region. Entities must demonstrate compliance with the Lone Star Infrastructure Protection Act and, if applicable, certify that they are not barred from receiving state grants under the Texas Family Code. Projects must align with one of the four stated objectives, and applicants are restricted from submitting new applications for the same objective within 24 months of an award. The application process is conducted via the TxEF Portal, where applicants must create an account, complete the full application with all required uploads, notarize and upload an attestation form, and finally, file a submission statement under PUCT Project Number 57830 via the Commission’s Interchange. Applications are evaluated in the order they are received. The review process includes checks for eligibility and completeness, a Know Your Customer review, and a technical review based on criteria in 16 TAC §25.512(d). Selected projects are forwarded to the Commission for consideration and, if approved, move into the grant agreement phase. The grant program opened for applications on May 28, 2025, and has continued to accept submissions. As of November 14, 2025, the PUCT had selected 15 projects totaling $683 million for advancement toward grant agreements. The maximum amount a single applicant may receive is $200 million, while the total program allocation is capped at $1 billion. Projects are selected based on completeness, technical merit, and alignment with published policy priorities. Multiple projects may be submitted within a single application if they fall under the same objective, or separately if addressing different objectives. Support is available through the TxEF Contact Center by phone or email. Additional guidance, including FAQs, manuals, and webinars, is available on the program’s website. The OEGP is a recurring grant program, and while no specific annual cycle is guaranteed, future rounds can be anticipated based on the current program’s timeline. Applications will continue to be evaluated as received, and entities interested in submitting should review 16 TAC §25.512 and associated program manuals to ensure compliance with submission and eligibility requirements.

Submit early to ensure place in review queue; ensure full alignment with objectives and eligibility criteria.