South Texas Electric Cooperative

What South Texas Electric Cooperative does

South Texas Electric Cooperative (STEC) is a not-for-profit, member-owned electric cooperative headquartered in Nursery, Texas, founded in 1944 and operating in the ERCOT Texas market. The cooperative distributes electricity to consumer-members across rural Texas and public lands, and in April 2026 STEC substantially expanded its asset base by acquiring the Braes Bayou and Brotman Generating Stations from PROENERGY for $768 million. The two facilities together deliver 768 MW of fast-start power generation capacity using PROENERGY-manufactured PE6000 turbines developed and constructed between 2021 and 2023; PROENERGY continues to provide Operations and Maintenance and Total Care Services under separate agreements following the divestiture.

STEC is affiliated with the National Rural Electric Cooperative Association (NRECA), through which General Manager Clif Lange testified at a 2025 FERC technical conference on wildfire risk mitigation, and NRECA is supporting related federal legislation for cooperative-friendly wildfire standards. As a not-for-profit cooperative, STEC passes cost increases directly to consumer-members through electricity rates rather than retaining profits, distinguishing its economics from investor-owned utilities and providing structural flexibility.

The cooperative employs 101-250 people, holds no parent company or institutional ownership, and is not publicly traded. Strategic positioning has shifted from primarily distribution activity to a hybrid distribution-plus-generation model, with the new fast-start capacity positioning STEC to participate in ERCOT's growing power demand driven by load growth in Texas.

Name

South Texas Electric Cooperative

Legal name

South Texas Electric Cooperative

Website

https://stec.org

Company type

Private

Founded year

1944

Operating status

Operating

Headcount range

101–250 employees

Short description

South Texas Electric Cooperative (STEC) is a not-for-profit, member-owned electric cooperative in Texas that distributes electricity to consumer-members across rural areas and now owns 768 MW of fast-start generation capacity acquired from PROENERGY for $768 million in 2026.

Ownership category

akta.pro rank

Product category

Electric Utility Services

NAICS

Electric Power Generation, Transmission and Distribution (2211), Electric Power Generation (22111), Electric Power Distribution (221122)

SIC

Cogeneration Services & Small Power Producers (4991), Electric Services (4911)

akta.pro primary industry

Electric Cooperatives (Rural/Member-Owned Utilities) (EUADABAC)

akta.pro secondary industry

Electric Distribution System Owners (Wires-Only Companies) (EUADABAI)

Keywords

• Electric cooperative services
• Fast-start power generation
• Rural electricity distribution
• ERCOT power generation
• Not-for-profit utility

Headquarters

HQ city

Nursery

HQ country

United States

HQ region

North America

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Infrastructure, Personnel, Supply Chain, Technology or R&D

Distribution channels1 record

Core offering

South Texas Electric Cooperative is a not-for-profit electric cooperative that owns and operates power generation assets and distributes electricity to consumer-members across its rural Texas service territory. It recently acquired the Braes Bayou and Brotman Generating Stations from PROENERGY for $768 million, adding 768 MW of fast-start power generation capacity using PROENERGY PE6000 turbines, and continues to receive Operations & Maintenance and Total Care Services from PROENERGY.

Product overview

South Texas Electric Cooperative (STEC) is a not-for-profit electric cooperative that owns and operates power generating assets. The cooperative acquired two fast-start natural gas power plants—Braes Bayou Generating Station and Brotman Generating Station—from PROENERGY for $768 million. Together, these facilities provide 768 MW of generation capacity in the ERCOT Texas market, utilizing PROENERGY PE6000 turbines. PROENERGY continues to provide Operations and Maintenance and Total Care Services under separate service agreements following the divestiture.

Differentiator

Problem solved

Functional benefit

Products and services

• Braes Bayou Generating Station A 384 MW fast-start natural gas power generating station in the ERCOT Texas market using PROENERGY-manufactured PE6000 turbines; operates with PROENERGY providing Operations & Maintenance and Total Care Services under separate agreements, providing wholesale fast-start capacity to ERCOT and supporting STEC's consumer-members.
• Brotman Generating Station A 384 MW fast-start natural gas power generating station in the ERCOT Texas market using PROENERGY-manufactured PE6000 turbines; operates with PROENERGY providing Operations & Maintenance and Total Care Services under separate agreements, providing wholesale fast-start capacity to ERCOT and supporting STEC's consumer-members.
• Electricity distribution to consumer-members Distribution of electricity to consumer-members across STEC's rural Texas service territory and public lands; provided on a not-for-profit basis, with any compliance or operating cost increases passed directly to consumer-members through electricity rates. Intended for STEC's member-owners across rural and public-lands areas.

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Two partnerships are on record, tiered core.

• PROENERGYcoreStrategic or Co-development PartnerPROENERGY divested Braes Bayou and Brotman Generating Stations (768 MW combined) to STEC for $768 million. Despite divestiture, PROENERGY continues to staff, operate, and maintain the units under Operations and Maintenance and Total Care Services agreements. Facilities use PROENERGY-manufactured PE6000 turbines and were developed and constructed from 2021 to 2023.
• NRECA (National Rural Electric Cooperative Association)coreStrategic or Co-development PartnerSTEC General Manager Clif Lange testified on behalf of NRECA at a Federal Energy Regulatory Commission technical conference on wildfire risk mitigation. NRECA is backing related legislation in Congress for flexible, opt-in federal wildfire mitigation standards. NRECA advocates for electric cooperatives' interests in federal regulatory matters.

Scale indicators3 records

Recent moves4 records

Expansion highlights4 records

Broad incumbents

• Vistra Corp: Vistra Corp is a large Texas-based independent power producer with a substantial natural gas and renewables generation portfolio serving the ERCOT market. Comparable because it competes directly with STEC's newly acquired fast-start generation assets for capacity payments and ancillary services revenue.
• CPS Energy: CPS Energy is the largest municipally-owned combined natural gas and electric utility in the United States, based in San Antonio and operating in the ERCOT market. Comparable as a Texas utility serving consumer-members with a diversified generation portfolio including fast-start and natural gas assets.
• Lower Colorado River Authority: LCRA is a Texas public utility that owns and operates generation assets in the ERCOT market and provides wholesale power and transmission services. It is comparable as an incumbent Texas generation-and-distribution entity with which STEC competes for capacity revenues and market share.
• NRG Energy: NRG Energy is a major competitive power generator and retail electricity provider with significant ERCOT market exposure. Comparable as a competing wholesale generator that benefits from the same ERCOT scarcity pricing dynamics STEC's new assets target.

Direct peers

• Pedernales Electric Cooperative: Pedernales Electric Cooperative is one of the largest electric distribution cooperatives in Texas, serving members across central Texas. It directly mirrors STEC's member-owned cooperative structure, rural distribution focus, and ERCOT market exposure.
• CoServ Electric: CoServ Electric is a Texas electric and gas cooperative serving members north of Dallas within the ERCOT market. It shares STEC's cooperative ownership model, member-pass-through economics, and regulated utility characteristics, while also operating distribution infrastructure.
• Bluebonnet Electric Cooperative: Bluebonnet Electric Cooperative is a member-owned Texas distribution cooperative serving rural and suburban members in the ERCOT market. Like STEC, it is affiliated with NRECA, passes costs to consumer-members, and faces similar wildfire and weather risks across rural service territory.

Regional players

• Entergy Texas: Entergy Texas is a regulated transmission and distribution utility operating in Southeast Texas within the ERCOT market. Comparable as a Texas utility serving retail customers with similar regulatory, weather, and operational exposure, though investor-owned rather than cooperatively structured.
• Austin Energy: Austin Energy is a municipally-owned electric utility serving Austin and surrounding areas in the ERCOT market. Comparable as a Texas community-focused utility with owned generation assets and a similar rate-regulated structure, though serving a more urban footprint than STEC's rural territory.

Others

• ProEnergy Services: ProEnergy is a turbine manufacturer and O&M provider that built the Braes Bayou and Brotman plants and continues to operate them under service agreements. It is comparable as STEC's ecosystem partner, providing manufacturing, operations, and maintenance services underpinning the cooperative's new generation assets.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights6 records

Customer concentration

• Xx.com/stec18
• Facebookfacebook.com/South-Texas-Electric-Cooperative-Inc-418213724898913
• LinkedInlinkedin.com/company/south-texas-electric-cooperative

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about South Texas Electric Cooperative