Calpine Corporation has finalized a $278.3 million loan agreement with the Public Utility Commission of Texas (PUC) to support construction of a $464 million, 460-megawatt (MW) natural gas power plant in Fairfield, Texas. The new Pin Oak Creek Energy Center will provide dispatchable power to the Electric Reliability Council of Texas (ERCOT) grid and is expected to begin operations before summer 2026.
The new facility sits near Calpine’s operating Freestone Energy Center in Freestone County and will supply power to ERCOT’s North Load Zone, which serves the Dallas–Fort Worth area. Designed for rapid startup, it will deliver peak-demand support and strengthen grid reliability during periods of high electricity use.
The PUC will provide a $278.3 million loan—about 60% of the project cost—under the funding agreement through the Texas Energy Fund (TxEf). The 20-year loan carries an interest rate of 3% with an original maturity date of October 27, 2026, through December 31, 2045.
Calpine Executive Vice President of Commercial Operations Caleb Stephenson revealed the state-of-the-art power plant is to supply secure and reliable energy in minutes, supporting Texas communities as energy demand escalates.
Texas Energy Fund
The Texas Energy Fund’s In-ERCOT Generation Loan Program supports the construction of new, on-demand power projects that meet defined performance and reliability standards. The Calpine project is the fourth to receive TxEF funding, adding to nearly 1,800 MW of new generation capacity already financed across Texas.
The first loan issued through the Texas Energy Fund was announced on June 26, 2025, marking the program’s launch. The state approved a $105 million, 20-year loan to support construction of the Rock Island Generation Project, a 122-megawatt natural gas facility in Colorado County sponsored by the Kerrville Public Utility Board.
Currently, 13 additional projects, representing around 7,200 MW of new capacity, are undergoing due diligence review through the PUC.
Once operational, the Pin Oak Creek Energy Center will bolster the ERCOT grid. And help ensure consistent power availability across North Texas.
Pin Oak Creek Energy Center Project Factsheet
Project Overview
Developer: Calpine Corporation
Location: Fairfield, Freestone County, Texas (adjacent to existing Freestone Energy Center)
Capacity: 460 MW (Natural gas power plant)
Expected Operations: Before summer 2026
Financial Structure
Total Project Cost: $464 million
PUC Financing: $278.3 million (~60% of total cost)
Funding Source: Texas Energy Fund (TxEF) – In-ERCOT Generation Loan Program
Loan Terms:
20-year duration (October 27, 2026 – December 31, 2045)
3% interest rate
Technical Specifications
Technology: Natural gas-fired dispatchable generation
Grid Connection: ERCOT North Load Zone (Dallas–Fort Worth region)
Design Features: Rapid startup capability for peak demand response
Strategic Importance
Grid Reliability: Provides on-demand power during high-usage periods
Program Milestone: Fourth project approved under TxEF funding
Regional Impact: Serves growing energy demand in Dallas–Fort Worth area
Program Context: Part of 1,800 MW of new capacity already financed; 13 additional projects (~7,200 MW) under PUC review
