Texans on Tuesday cast ballots on a slate of constitutional amendments, with Proposition 7, which supplies state funds to add natural gas-fired power plants, resoundingly approved. 

Proposition 7, a constitutional amendment to create the Texas Energy Fund, passed with about 65% of the popular vote. With its passage, the Public Utilities Commission of Texas (PUCT) would have authority to issue low interest loans to power plant operators seeking to add generation capacity.

Loans could be up to $7.2 billion for a single facility within the Electric Reliability Council of Texas (ERCOT) grid territory, according to state Senate Bill (SB) 2627. The bill determined how state funds would be managed under the program. Power plant operators could also capture completion bonus grants for...