EV deal

Texas energy company partners with Ford for first-of-its-kind deal

Ford Motor Company and TXU Energy are partnering to create a first-of-its-kind retail energy offering for Ford electric SUV and truck customers in Texas via the TXU Free EV Miles program. Photo courtesy of Ford

Buckle up, Ford drivers and TXU Energy customers — you're going to want to speed toward this deal.

Ford Motor Company and TXU Energy are partnering to create a first-of-its-kind retail energy offering for Ford electric SUV and truck customers in Texas via the TXU Free EV Miles program.

The program offers Ford EV customers the opportunity to charge their vehicle at home for free during an 18-hour window. Enrollment for the “Free EV Miles program” is open to interested Ford and TXU Energy customers.

“This partnership with Ford fits squarely into TXU Energy’s broader strategy of educating customers on the benefits of owning an EV, removing barriers to making the switch, and increasing grid resiliency,” Sam Sen, vice president of energy transition solutions for TXU Energy, says in a news release. “We are proud to support Ford’s Texas EV customers with flexible, free charging hours and the significant cost savings that come with it.”

Ford EV customers will receive a credit on their TXU Energy bill for all home energy used for vehicle charging during all year free charging hours from 7 p.m an 1 p.m. The program hopes to help support grid reliability efforts and clean energy usage since it will encourage energy consumption during off-peak hours.

According to Ford, around 80 percent of charging takes place at home. Charging can even be scheduled through the Preferred Charge Times feature in the FordPass app or in-vehicle touchscreen. If customers need to charge outside of the free hours, they will pay a fixed rate, which is the same rate as the rest of their home according to Ford.

“Encouraging our electric vehicle customers to charge at off-peak hours through programs like Free EV Miles helps to save them money while supporting a more sustainable, resilient electrical grid,” Bill Crider, senior director, global charging and energy services at Ford, says in a news release. “Ford electric SUV and trucks already have a lower operating and maintenance cost compared to gas-powered vehicles, and at-home charging offers additional financial perks and future vehicle-to-grid services never before possible, which Ford is committed to leading for our customers.”

The program will allow Ford F-150 Lightning, Mustang Mach-E, and Escape Plugin Hybrid customers to benefit from bill credits when they enroll in the Free EV Miles energy plan. They can also earn additional benefits from both Ford and TXU Energy like a $100 welcome bonus from Ford and a $250 bonus from TXU Energy. Enrolled customers will begin receiving automatic rebates for at-home charging costs during the free charging hours.

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A View From HETI

Fervo Energy has closed financing to support the remaining construction costs for the first phase of Cape Station. Photo via fervoenergy.com

Houston geothermal unicorn Fervo Energy has closed $421 million in non-recourse debt financing for the first phase of its flagship Cape Station project in Beaver County, Utah.

Fervo believes Cape Station can meet the needs of surging power demand from data centers, domestic manufacturing and an energy market aiming to use clean and reliable power. According to the company, Cape Station will begin delivering its first power to the grid this year and is expected to reach approximately 100 megwatts of operating capacity by early 2027. Fervo added that it plans to scale to 500 megawatts.

The $421 million financing package includes a $309 million construction-to-term loan, a $61 million tax credit bridge loan, and a $51 million letter of credit facility. The facilities will fund the remaining construction costs for the first phase of Cape Station, and will also support the project’s counterparty credit support requirements.

Coordinating lead arrangers include Barclays, BBVA, HSBC, MUFG, RBC and Société Générale, with additional participation from Bank of America, J.P. Morgan and Sumitomo Mitsui Trust Bank, Limited, New York Branch.

“As demand for firm, clean, affordable power accelerates, EGS (Enhanced Geothermal Systems) is set to become a core energy asset class for infrastructure lenders,” Sean Pollock, managing director, project Finance at RBC Capital Markets, said in a news release. “Fervo is pioneering this step change with Cape Station, a vital contribution to American energy security that RBC is proud to support.”

The oversubscribed financing marks Cape Station’s shift from early-stage and bridge funding to a long-term, non-recourse capital structure, according to the news release.

“Non-recourse financing has historically been considered out of reach for first-of-a-kind projects,” David Ulrey, CFO of Fervo Energy, said in a news release. “Cape Station disrupts that narrative. With proven oil and gas technology paired with AI-enabled drilling and exploration, robust commercial offtake, operational consistency, and an unrelenting focus on health and safety, we have shown that EGS is a highly bankable asset class.”

Fervo continues to be one of the top-funded startups in the Houston area. The company has raised about $1.5 billion prior to the latest $421 million. It also closed a $462 million Series E in December.

According to Axios Pro, Fervo filed for an IPO that would value the company between $2 billion and $3 billion in January.

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