Governor Abbott Announces Texas Energy Fund Loan To 460 MW Natural Gas Facility In Freestone County

TEXAS, October 14 - October 14, 2025 | Austin, Texas | Press Release

Governor Greg Abbott today announced the fourth Texas Energy Fund (TxEF) loan agreement for a 460 megawatt (MW) natural gas power plant in Fairfield, Texas. Calpine Corporation will build the plant which is estimated to begin generating power for the Electric Reliability Council of Texas (ERCOT) power region before summer 2026.

“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,” said Governor Abbott. “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.”

“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,” said Public Utility Commission of Texas (PUC) Chairman Thomas Gleeson. “We are investing in the future of every region of our state and strengthening the foundation for continued electric reliability and growth.”

“Calpine is proud to demonstrate our commitment to Texas with our new Pin Oak Creek Energy Center in Freestone County,” said Calpine Executive Vice President of Commercial Operations Caleb Stephenson. “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 the PUC and Calpine is the fourth finalized under the TxEF’s In-ERCOT Generation Loan Program, which provides low-interest loans for projects that add new, dispatchable power to the ERCOT region. Under the loan agreement, total project costs are estimated to be $464 million. The PUC is providing a 20-year TxEF loan of $278.3 million, or 60% of the total project cost, at a 3% interest rate. The loan term runs from October 13, 2025, through October 13, 2045. 

The natural gas generation facility is under construction adjacent to Calpine's Freestone Energy Center in Freestone County. The project will interconnect in the ERCOT North Load Zone, which includes the Dallas-Fort Worth metroplex.   

Under the loan agreement, the facility must meet minimum performance standards, as outlined in the In-ERCOT Generation Loan Program rules. 

The TxEF is administered by the PUC through a competitive application process and rigorous financial review of proposed projects. 

In addition to the four loan agreements already approved, there are currently 13 applications to the TxEF In-ERCOT Generation Loan Program moving through a due diligence review process. Together, the projects represent an additional 7,211 MW of proposed, new dispatchable generation for the ERCOT grid.  

Additional information about the TxEF and the In-ERCOT Generation Loan Program is available on the PUC website.