Pecos City Council on Thursday authorized the city manager to pursue a payment-in-lieu-of-taxes agreement with Perian Pecos Power Plant LLC for a proposed 250-megawatt, fast-start natural gas power plant to be sited south of town near County Road 118.

The company’s local representative, Edward Torres of Pecos Power Plant, told the council the plant would be a quick-start backup resource that could deliver up to 250 megawatts into the ERCOT grid and be online within about five minutes to help stabilize regional power. Linda Nance of Perian Energy Group said the developer expects roughly 300 construction workers at peak and several full‑time staff once the plant is operating; the company aims to be operational in 2027 and to hire local employees during operations and construction.

Council members heard that, as part of the community package, the developer has committed to build a minimum of 30 homes (or enough units to reach 60,000 square feet of livable space) inside the city limits for workers and community benefit. Torres said the contract includes a prorated financial penalty if the housing threshold is not met, with a stated penalty pool of $6 million tied to homes not built. The company proposed a $75,000-per-year payment in lieu of taxes for the houses and requested a multi‑year abatement for the plant; staff materials estimated the net abatement on the plant portion would amount to about 64 percent over the proposed 10‑year term as drafted.

City Manager Charles Leno said the version of the contract provided in the council packet did not reflect late edits requested by the Texas Energy Fund and that revised paper copies had been distributed at the dais. The council opened a required public hearing on the abatement before discussing contract timing and safeguards. Leno and municipal attorneys noted two drafting items to correct: (1) the abatement should begin the first full year after the plant is completed and operational rather than immediately on execution; and (2) an assignment/consent clause should require the city’s consent for assignment of the agreement.

During the hearing, several council members and members of the public pressed the company and staff on interconnection plans, local housing commitments, and mechanisms that prevent an outside buyer from assuming the abatement without the city’s approval. The company said major equipment has already been procured and that an interconnection agreement is in process with nearby transmission providers; they also said they have purchased lots on Jackson Street as part of their housing commitment.

A motion by Councilman Saldana, seconded by Councilman Carrasco, authorized the city manager to enter the tax abatement agreement with Perian Pecos Power Plant LLC for the plant located off Colorado Road at County Road 118. The motion carried on voice vote.

The contract remains subject to final editing and a recommendation from staff to ensure the abatement does not begin until the first full year of commercial operation, and staff said the city would ask other taxing entities (for their participation) before finalizing intergovernmental details. Council members said they expect to receive a final, corrected contract and confirmed follow-up with the company before recordation.