Governor Greg Abbott has announced a new Texas Energy Fund (TxEF) loan agreement to support the construction of a 460 megawatt natural gas power plant in Fairfield, Texas. The facility will be built by Calpine Corporation and is expected to begin supplying electricity to the Electric Reliability Council of Texas (ERCOT) region before the summer of 2026.
Governor Abbott said, “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 commented, “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.”
Caleb Stephenson, Executive Vice President of Commercial Operations at Calpine, stated, “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.”
The loan agreement between PUC and Calpine marks the fourth finalized under TxEF’s In-ERCOT Generation Loan Program. The program provides low-interest loans for projects that add new dispatchable power capacity within ERCOT’s service area. The total estimated cost for this project is $464 million. Of this amount, $278.3 million—about 60%—will be provided through a TxEF loan at a 3% interest rate over a term running from October 13, 2025 through October 13, 2045.
Construction is underway next to Calpine’s existing Freestone Energy Center in Freestone County. Once operational, the plant will connect into ERCOT’s North Load Zone that includes Dallas-Fort Worth.
As part of its requirements under this agreement, Calpine’s facility must meet minimum performance standards as set by program rules.
The TxEF operates through a competitive application process overseen by PUC involving detailed financial reviews. In addition to these four approved loans so far, there are currently thirteen more applications undergoing due diligence review which together represent an additional proposed capacity of over 7 gigawatts for ERCOT.
Further details about TxEF and its programs can be found on the PUC website.
