South Texas Electric Cooperative, Inc. Issues Request for Proposals To Meet Long-Term Capacity and Energy Needs

­South Texas Electric Cooperative, Inc. (STEC) issued a request for proposals (RFP) through which it seeks to obtain long-term generating capacity and associated energy. The RFP solicits bids for up to 500 megawatts (MW) of firm, dispatchable capacity and associated energy. 

Under this RFP, STEC will consider proposals for the acquisition of dispatchable generation facilities in development, construction or operation. For generation facilities that are not yet operating, STEC prefers to enter into a Purchase and Sale Agreement currently and to consummate the acquisition upon the commercial operation of the generation facility, although STEC will consider alternate transaction structures.

STEC will consider for purchase all dispatchable generation technologies and all fuel types. Any generation facility submitted for acquisition must be currently operating or have an expected commercial operation date of no later than December 1, 2028. All generation facilities that are the subject of a Proposal must be located in the ERCOT region, preferably located in an area near to or within the service territory of one of STEC's members.

For PPA Proposals, STEC will consider proposals for PPAs in the ERCOT market with terms of 20 to 30 years under which the Participant would agree to deliver dispatchable power to STEC beginning no earlier than June 1, 2027, and no later than December 1, 2028. STEC will consider all-in PPAs, tolling agreements or other contract structures for PPA Proposals. The deadline to submit a Notice of Intent to Respond for the RFP is August 6, 2025, and the initial bids are due September 10, 2025.