Governor Greg Abbott has announced a new Texas Energy Fund (TxEF) loan for the construction of a 460-megawatt natural gas power plant in Fairfield, Texas. Calpine Corporation will build and operate the facility, which is expected to begin supplying electricity to the Electric Reliability Council of Texas (ERCOT) region before summer 2026.
According to Governor Abbott, “Texans across our great state are benefiting from the reliable, affordable power that the Texas Energy Fund is helping add to the state grid, with hundreds of megawatts coming online. This 460 MW investment will further grow our power supply and keep prices affordable for homes and businesses in North Texas. We will ensure continued reliability for all Texans as we add more power and fortify the state grid.”
Public Utility Commission of Texas (PUC) Chairman Thomas Gleeson stated, “The Texas Energy Fund has now brought nearly 1,800 megawatts of new, reliable power generation to the state of Texas – and there’s more on the way. We are investing in the future of every region of our state and strengthening the foundation for continued electric reliability and growth.”
Calpine Executive Vice President of Commercial Operations Caleb Stephenson added, “Calpine is proud to demonstrate our commitment to Texas with our new Pin Oak Creek Energy Center in Freestone County. This 460-megawatt, state-of-the-art facility is designed to start within minutes and will deliver safe, reliable power exactly when Texans need it most. We’re grateful for the leadership of Governor Abbott and the Texas Legislature and for their dedication to keeping energy reliable and affordable for all Texans. Calpine is excited to keep investing in Texas to support our growing communities.”
This loan agreement between PUC and Calpine marks the fourth finalized under TxEF’s In-ERCOT Generation Loan Program. The program provides low-interest loans aimed at increasing dispatchable electricity generation capacity within ERCOT’s jurisdiction. The total cost for this project is estimated at $464 million, with PUC offering a 20-year TxEF loan covering $278.3 million—about 60% of total costs—at a 3% interest rate from October 13, 2025 through October 13, 2045.
The facility is being built next to Calpine’s existing Freestone Energy Center in Freestone County and will connect into ERCOT’s North Load Zone serving areas including Dallas-Fort Worth.
The loan agreement requires that minimum performance standards are met as set by In-ERCOT Generation Loan Program rules. The TxEF itself is managed by PUC using a competitive application process along with detailed financial reviews.
Beyond these four approved agreements so far, there are currently thirteen additional applications under review representing over 7,200 MW in proposed new dispatchable capacity across ERCOT.
Further details about TxEF and its programs can be found on the Public Utility Commission’s website.
