KPUB selects Colorado County site for $100M power plant

The Kerrville Public Utility Board chose a location 10 miles south of Columbus, Texas, for its new natural gas power plant, prioritizing infrastructure access over proximity to customers.

KPUB officials announced Thursday at a Kerrville Area Chamber of Commerce luncheon that Colorado County beat out potential sites in Kerr County because of its immediate access to four natural gas pipelines—a critical advantage the utility’s home county lacks.

“The location was selected due to its strong infrastructure,” said Mike Wittler, KPUB general manager and CEO. The decision means the 122-megawatt facility will sit roughly 200 miles from most of KPUB’s 24,500 customers in the Kerrville area.

Sky Global, a power plant developer, will lead the project and operate the facility long-term. The company already runs a 50-megawatt plant at the same Colorado County site that maintained 99.6% availability during the February 2021 winter storm that crippled much of Texas’ power grid.

KPUB’s facility will feature six reciprocating internal combustion engines supplied by German manufacturer MAN Energy Solutions, a 266-year-old company headquartered in Augsburg that has installed more than 1,500 similar engines worldwide. Summit Industrial will serve as general contractor, while longtime KPUB partner SEnergy will handle engineering and design. Kinder Morgan will supply natural gas.

The project faces potential cost increases from current U.S. tariffs on German imports. President Trump’s trade policies impose a baseline 18% tariff on German goods, with steel and aluminum components subject to 25% duties—potentially adding millions to the project’s cost as equipment and materials are imported.

The utility applied for low-interest financing through the Texas Energy Fund and plans to issue tax-exempt revenue bonds for additional funding. Construction begins this fall, with commercial operations starting in June 2027.

KPUB serves Kerrville, Center Point, Ingram, Hunt and surrounding Kerr County areas. The utility promises the new plant will help maintain some of Texas’ lowest electric rates while providing reliable backup power during peak demand and emergencies.

The Colorado County site leverages existing infrastructure from Sky Global’s neighboring facility, reducing development costs and construction time. The location also provides redundant natural gas supply options, a lesson learned from the 2021 freeze when fuel shortages forced many Texas power plants offline.

For more information, visit kpub.com/power.