The Lower Colorado River Authority Board of Directors has authorized $1.63 billion in capital investments for energy, water, and public service projects in Texas for fiscal year 2026.

The Lower Colorado River Authority is the primary wholesale provider of electricity in Central Texas and manages the lower Colorado River and six Highland Lakes. LCRA Transmission Services Corporation is one of the largest electric transmission service providers in Texas. Capital projects include power generation and infrastructure improvement, dam rehabilitation, and water supply projects, as well as projects for LCRA’s park system, per the American Public Power Association.

LCRA plans to build two electric generating units at LCRA’s natural gas-fired peaker Timmerman Power Plant in Caldwell County, with the first unit expected to be online later this year.

LCRA TSC plans to invest about $5.9 billion over the next five years to build new transmission facilities and improve existing ones. LCRA TSC will undertake projects intended to increase reliability, meet existing and projected needs for electricity, and connect new electric generators to the state’s power grid.

“LCRA is continuing to make significant investments in all our areas of business, including power, water, broadband and transmission,” LCRA General Manager Phil Wilson said. “These investments align with our mission and vision and demonstrate our commitment to finding strategic and innovative solutions to help meet the needs of current and future generations of Texans in our growing state.”

Last month, LCRA announced plans to double the energy production from the new peaker plant it is building in Central Texas by adding a second generating unit. Each of the units can supply up to 190 MW of dispatchable power to the grid. When operating at full capacity, the Timmerman Power Plant will be able to supply enough electricity to power more than 100,000 homes during periods of peak demand.

The new unit will be built on the same 51-acre site near Maxwell in Caldwell County where construction on the first unit of a new LCRA peaker plant is underway. LCRA initially announced the construction of the plant early last year.

Each unit will be powered by 10 Wärtsilä reciprocating engines. Minnesota-based Fagen, Inc., will be the Engineering, Procurement and Construction contractor for both units.

The new plant will be the second peaker plant in LCRA’s generation fleet. LCRA also owns and operates Winchester Power Park, a 184-MW natural-gas fired peaker plant in Fayette County.