Governor Abbott announces major investment in Texas power infrastructure with new Freestone County plant
Fairfield Texas – Governor Greg Abbott has announced a major step toward strengthening Texas’ power infrastructure with the approval of a new loan agreement under the Texas Energy Fund (TxEF). The agreement supports a 460-megawatt natural gas power plant to be built by Calpine Corporation in Fairfield, Texas. This plant is expected to supply electricity to the Electric Reliability Council of Texas (ERCOT) power region and begin operations before the summer of 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.”
This marks the fourth loan agreement approved under the In-ERCOT Generation Loan Program, a part of the TxEF. The fund, administered by the Public Utility Commission of Texas (PUC), provides low-interest loans to incentivize the construction of new, dispatchable energy sources across the ERCOT region.
Multi-Million Dollar Investment in Energy Stability
The total project cost for Calpine’s new facility is estimated at $464 million. Of that, the PUC will provide a 20-year, low-interest loan of $278.3 million at a 3% interest rate, covering 60% of the project’s expenses. The loan period will run from October 13, 2025, through October 13, 2045.
PUC Chairman Thomas Gleeson emphasized the importance of the initiative, stating, “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.”
Quick-Start Technology for Grid Emergencies
Calpine’s new plant, named the Pin Oak Creek Energy Center, is being constructed in Freestone County, adjacent to the company’s existing Freestone Energy Center. The facility will interconnect with the ERCOT North Load Zone, which covers the Dallas-Fort Worth area—a region with rapidly growing energy demand.
Calpine Executive Vice President of Commercial Operations Caleb Stephenson said, “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.”
More Projects in the Pipeline
The TxEF is currently reviewing 13 additional applications for similar projects. If approved, they would bring another 7,211 megawatts of new dispatchable power to the ERCOT grid. These applications are undergoing a detailed financial and technical review to ensure they meet performance standards set by the In-ERCOT Generation Loan Program.
The TxEF aims to address growing energy needs in Texas by backing infrastructure that can deliver dependable, on-demand power. More information about the program and application process is available through the PUC’s official website.
