"Taxpayers must be protected, so the legislature will also review the state’s other existing contracts with Deloitte."
Texas Insider Report: AUSTIN, Texas – Lt. Gov. Dan Patrick issued this statement today following the Texas Energy Fund Advisory Committee hearing:
“The fact that Texas needs to add dispatchable power to our grid due to our growing economy is clear for all to see. Voters overwhelmingly approved the Texas Energy Fund in 2023 to accomplish that goal.
“Deloitte, the contractor hired to administer the Texas Energy Fund, allowed for a falsified application to move forward in the process. When questioned at today's hearing, Deloitte had no believable explanation for the many troubling details they failed to uncover during their vetting process. These details could have been revealed to them by a quick Google search. Their senior partner did not even know the value of their contract with the state of Texas for this project.
“Deloitte’s failure to uncover the falsified application presented by Aegle Power, whose CEO was previously convicted of embezzlement, is outrageous, and the Public Utility Commission of Texas’ (PUC) advancement of this unvetted project is extremely troubling.
“The PUC must follow through with their demand of clawing back at least 10% of Deloitte's contract value to account for their blunder that set back the Texas Energy Fund's ability to help deliver more megawatts of dispatchable power in a timely fashion. Taxpayers must be protected, so the legislature will also review the state’s other existing contracts with Deloitte.
“It is of utmost importance for the PUC to quickly replace the 1,200-megawatt gap left by the fraudulent Aegle Power application with well-qualified projects, and not hold those funds for non-loan completion bonuses. Our grid needs more dispatchable power as quickly as possible, and the Texas Energy Fund loan program is the most expeditious way to get more dispatchable megawatts online. Deloitte has only slowed down this important program. They need to correct their errors now or be gone.”
“Deloitte, the contractor hired to administer the Texas Energy Fund, allowed for a falsified application to move forward in the process. When questioned at today's hearing, Deloitte had no believable explanation for the many troubling details they failed to uncover during their vetting process. These details could have been revealed to them by a quick Google search. Their senior partner did not even know the value of their contract with the state of Texas for this project.
“Deloitte’s failure to uncover the falsified application presented by Aegle Power, whose CEO was previously convicted of embezzlement, is outrageous, and the Public Utility Commission of Texas’ (PUC) advancement of this unvetted project is extremely troubling.
“The PUC must follow through with their demand of clawing back at least 10% of Deloitte's contract value to account for their blunder that set back the Texas Energy Fund's ability to help deliver more megawatts of dispatchable power in a timely fashion. Taxpayers must be protected, so the legislature will also review the state’s other existing contracts with Deloitte.
“It is of utmost importance for the PUC to quickly replace the 1,200-megawatt gap left by the fraudulent Aegle Power application with well-qualified projects, and not hold those funds for non-loan completion bonuses. Our grid needs more dispatchable power as quickly as possible, and the Texas Energy Fund loan program is the most expeditious way to get more dispatchable megawatts online. Deloitte has only slowed down this important program. They need to correct their errors now or be gone.”
