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Denton board backs 100 MW battery PPA as financial hedge against evening price spikes

September 29, 2025 | Denton City, Denton County, Texas


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Denton board backs 100 MW battery PPA as financial hedge against evening price spikes
The Denton Public Utilities Board on Sept. 29 recommended City Council approve an ordinance to enter a 10-year power purchase agreement for 100 megawatts of battery storage known as Tudewell Prairie 2, available beginning June 2026.

Jose Gaetan, executive manager of power supply for Denton Municipal Electric (DME), presented the proposal, describing the battery as a financial hedge to mitigate price spikes that occur as solar output falls in the evening — the so-called “duck curve.” The contract term is 10 years with two hours of duration; pricing is quoted inclusive of federal investment tax credits. The board voted unanimously to recommend adoption; Mr. Newquist seconded the motion, according to meeting remarks.

Gaetan said the facility is expected to be commercially available in June 2026 and is owned and operated by Jupiter Power, a large battery-storage owner in ERCOT. The project site is in Central Texas about 70 miles southeast of Waco. Staff told the board most of the project is not subject to tariffs, which the presentation said helps reduce costs. Gaetan called the PPA a way for the utility to avoid higher market purchases in extreme events, citing a prior year (2023) example when purchase-power costs increased by about $30 million.

A board member commented that the PPA would give DME operational experience with battery assets while providing risk mitigation. Gaetan and board members characterized the project as a complementary measure to existing renewables procurement and a step toward broader storage adoption in ERCOT.

Staff recommended the board forward the Tudewell Prairie 2 PPA to council for approval as part of the Denton Renewable Resource Plan. The board voted unanimously to recommend adoption.

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Scribe from Workplace AI
Scribe from Workplace AI