Texas Governor Greg Abbott announced a $278.3 million loan under the state’s new Texas Energy Fund for a 460-megawatt natural gas power plant in Freestone County.
The facility, built by Calpine Corporation, is expected to come online before summer 2026 to strengthen grid reliability in the Dallas-Fort Worth region.
The investment marks the fourth Texas Energy Fund loan, bringing nearly 1,800 megawatts of new power generation to the state’s grid as energy demand continues to grow.
“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. The plant will operate in Fairfield, adjacent to Calpine’s existing Freestone Energy Center.
The Public Utility Commission of Texas approved a 20-year loan covering 60% of the $464 million project cost at a 3% interest rate. The facility must meet strict performance standards under program rules.
“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 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’s new Pin Oak Creek Energy Center will feature quick-start technology, capable of ramping up within minutes to meet demand spikes.
“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,” said Calpine Executive Vice President Caleb Stephenson.
The loan term runs from October 2026 through December 2045. Texas voters approved the Texas Energy Fund in 2023 to expand dispatchable power generation and prevent outages like those experienced during the 2021 winter storm.