Greg Abbott Announces $278 Million Loan for New Power Plant

Governor Greg Abbott announced a new Texas Energy Fund (TcEF) loan agreement to support the construction of a 460-megawatt natural gas power plant in Fairfield, Texas.

The project, developed by Calpine Corporation, is expected to begin generating power for the Electric Reliability Council of Texas (ERCOT) 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," said Governor Abbott. "This 460 MW investment will further grow our power supply and keep prices affordable for homes and businesses in North Texas."

The Public Utility Commission of Texas (PUC) will provide a $278.3 million, 20-year loan, which represents 60% of the project's total $464 million cost, at a 3% interest rate. The facility, Pine Oak Creek Energy Center, will be located near Calpine's Freestone Energy Center in Freestone County and connected to the ERCOT North Load Zone, which serves the Dallas-Fort Worth Metroplex.

PUC Chairman Thomas Gleeson highlighted the milestone, highlighting that the TEF has now financed nearly 1,800 megawatts of new, reliable generation for Texas, with additional projects under review.

"We are investing in the future of every region of our state and strengthening the foundation for continued electric reliability and growth," said Gleeson.

Calpine Executive Vice President Caleb Stephenson emphasized the project's flexibility and reliability.

"This 460-megawatt, state-of-the-art facility is designed to start within minutes and deliver safe, reliable power exactly when Texans need it most," said Stephenson.

Currently, 13 additional TxEf applications are under review, representing more than 7,200 megawatts of proposed dispatchable generation for the ERCOT grid.