South Texas Electric Cooperative Issues Request for Proposals to Meet Long-Term Capacity and Energy Needs

Proposals of up to 500 MW of firm, dispatchable capacity and associated energy requested.

NURSERY, Texas, July 14, 2025 — South Texas Electric Cooperative Inc. (STEC) today 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. Information regarding the RFP is available at: http://www.STECFIRMRFP2025.com.

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 Electric Reliability Council of Texas (ERCOT) region, preferably located in an area near to or within the service territory of one of STEC’s members.

For power purchase agreement (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.

More information regarding the RFPs is available at: www.STECFIRMRFP2025.com. Questions regarding either RFP should be made only by e-mail to: [email protected].

About STEC STEC was formed in 1944 to provide wholesale electric power to member cooperatives. Presently, STEC serves nine Texas electric distribution cooperatives: Karnes Electric Cooperative Inc., Wharton County Electric Cooperative Inc., Victoria Electric Cooperative Inc., Jackson Electric Cooperative Inc., San Patricio Electric Cooperative Inc., San Bernard Electric Cooperative Inc., Nueces Electric Cooperative Inc., Magic Valley Electric Cooperative Inc., and Medina Electric Cooperative Inc. These cooperatives provide service to over 340,000 members in 47 South Texas counties.