AUSTIN, TX – Governor Greg Abbott announced a new Texas Energy Fund (TxEF) loan agreement supporting construction of a 460 megawatt natural gas power plant in Fairfield, Texas. The facility, named the Pin Oak Creek Energy Center, will be built by Calpine Corporation and is scheduled to begin supplying power to the ERCOT grid before summer 2026.
According to the Governor, the project represents the fourth TxEF loan agreement and continues the state’s efforts to expand grid reliability and affordability. “This 460 MW investment will further grow our power supply and keep prices affordable for homes and businesses in North Texas,” said Governor Abbott.
PUC Chairman Thomas Gleeson stated that the TxEF has now backed nearly 1,800 MW of new generation statewide. “We are investing in the future of every region of our state and strengthening the foundation for continued electric reliability and growth,” he said.
Calpine’s Executive Vice President of Commercial Operations Caleb Stephenson emphasized the facility’s quick-start capabilities, saying the plant is “designed to start within minutes and will deliver safe, reliable power exactly when Texans need it most.”
The Public Utility Commission of Texas is issuing a $278.3 million low-interest loan to Calpine under the TxEF’s In-ERCOT Generation Loan Program, which covers 60% of the project’s estimated $464 million total cost. The 20-year loan will carry a 3% interest rate and run from October 27, 2026, through December 31, 2045.
The facility will be located adjacent to Calpine’s existing Freestone Energy Center in Freestone County and will interconnect within the ERCOT North Load Zone, which includes the Dallas-Fort Worth metroplex. Performance standards are required under the terms of the loan agreement.
Thirteen additional TxEF loan applications, totaling 7,211 MW of proposed generation, are currently under review.
