Rayburn Electric Cooperative officials broke ground on Rayburn Electric Station II at the utility’s Sherman campus on Tuesday. The new natural gas facility is designed to deliver 570 megawatts of dispatchable power to the Electric Reliability Council of Texas’ north load zone, potentially serving approximately 500,000 homes. The plant is scheduled to begin operations in June 2028.
Designed as a peaking plant, the facility can reach full capacity within ten minutes to address gaps in supply during high-demand periods. The project is the seventh initiative funded through the Texas Energy Fund, a state program established after the 2021 winter storms to increase dispatchable power. Approximately 60 percent of the estimated $685 million cost will be covered by a low-interest loan from the Public Utility Commission of Texas, while the remaining 40 percent is financed through private bonds.
Construction is expected to generate 250 temporary jobs, with 14 permanent positions available once the plant is operational. Local leaders emphasized the project’s role in preventing future blackouts and water system failures similar to those experienced in 2021. Rayburn officials stated that the financing structure should not result in rate increases for customers.