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TXU Parent Announces Plans to Build New Gas-Fueled Dispatchable Power Units In Texas, Also Inks 1,200 MW PPA To Supply Nuclear Power
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Vistra Corp. today announced that it will build two new natural gas power units, together totaling 860 megawatts, on-site at its Permian Basin Power Plant
Vistra also announced that it has entered into a 20-year power purchase agreement (with options to extend for up to an additional 20 years) (the 'PPA') with, "a large, investment grade company (the 'Customer')," pursuant to which Vistra has agreed to supply to the Customer 1,200 MW of carbon-free power from the Comanche Peak Nuclear Power Plant.
Under this PPA, Vistra anticipates power delivery to begin in the fourth quarter of 2027 and ramp to full capacity by 2032.
"Assuming forwards as of Aug. 29, 2025, an Adjusted EBITDA Midpoint Opportunity consistent with Vistra’s previously communicated fiscal year 2026 expectation, and Vistra’s medium-term expected conversion ratio of Adjusted Free Cash Flow before Growth to Adjusted EBITDA, Vistra expects incremental Adjusted Free Cash Flow before Growth accretion to be in the range of approximately 8-10% if the Customer utilizes the full capacity," Vistra said
Concerning the new gas-fired plants, in 2024, Vistra had identified more than $1 billion worth of potential capital additions in generation capacity within the Texas ERCOT market by 2028 if market conditions were supportive.
"Now, based on customer demand and to meet West Texas' growing power needs, particularly the state's expanding oil and natural gas industries, Vistra has reached a final investment decision on a key element of this plan and confirms it will build two new advanced natural gas power units, together totaling 860 megawatts, on-site at its Permian Basin Power Plant," Vistra said
This expansion more than triples the site's current capacity from 325 MW to 1,185 MW.
"As the leading competitive generator in Texas, customers from residential to commercial and industrial are turning to Vistra to help them meet their energy needs," said Jim Burke, president and CEO of Vistra. "We recognize that energy is critical to powering this economic opportunity, and we expect Texas will play an outsized role. Based on our ongoing conversations with customers, we are affirming our multi-year plan to add more than 2,000 MW of new capacity in ERCOT between 2024 and 2028. Given Vistra's fleet, interconnections, and experience in improving, redeveloping, and building power plants, we are uniquely positioned to deliver solutions that provide reliable, affordable power to our residential customers as well as industries across Texas and the United States to ensure our economic competitiveness and national security."
Vistra also noted that, over the past year, Vistra has invested in technologies and upgrades that added more than 400 MW of generation capacity across its existing Texas gas-fueled power plant fleet.
"The company is working on additional projects over the next year and expects that when finished, all the upgrades will have added a total of 500 MW of additional capacity," Vistra said
Vistra is also repowering the Coleto Creek Power Plant, which was scheduled for retirement in 2027.
"By investing in plant upgrades and supporting pipeline expansion, the company will create a dispatchable gas plant on the property and repurpose the considerable existing infrastructure. This will restore approximately 630 MW of generation to the grid, and the new gas-fueled capacity can serve Texans for decades to come, while retaining the important economic and tax benefits to the Goliad area," the company said
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September 29, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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