The Public Utility Commission of Texas (PUCT) has executed the third agreement under the Texas Energy Fund (TxEF) Completion Bonus Grant (CBG) Programme, marking another step in the state’s effort to strengthen grid reliability as electricity demand continues to rise across Texas.
The agreement has been signed with Calpine, a business unit of Constellation Energy Generation, for the company’s 460-megawatt Pin Oak Creek Energy Center in Freestone County. The natural gas-fired facility is among a number of projects expected to support the Electric Reliability Council of Texas (ERCOT) grid before the programme’s June 2029 deadline.
The Completion Bonus Grant Programme forms part of the broader Texas Energy Fund initiative, which was established to encourage investment in reliable power generation projects capable of supporting the state’s expanding population and industrial growth.
“Every new megawatt of reliable generation makes the Texas grid stronger and helps us meet the demands of our growing state,” PUCT Chairman Thomas Gleeson said. “The Completion Bonus Grant Program is bringing new power online quickly and rewarding projects for reliable performance over time. This grant agreement is further proof the TxEF is delivering on its promise and providing real reliability benefits for Texans.”
Under the agreement signed on 28 May 2026, Pin Oak Creek Energy Center could receive a maximum total grant award of $55.2 million. The funding would be distributed over a ten-year period, with annual payments capped at $5.52 million.
The payments will depend on the operational performance of the facility. ERCOT will assess the plant during an annual test period and compare its results with a reference group of non-grant recipient generation resources operating within the ERCOT region.
Specific performance standards are outlined under the PUCT’s Completion Bonus Grant rules. The first testing period for Pin Oak Creek Energy Center began on 1 June 2026 and will continue until 31 May 2027, after which the project may become eligible for its first grant payment.
Pin Oak Creek Energy Center is located in Fairfield, Texas, and operates as a simple-cycle peaking facility fuelled by natural gas. Peaking plants are designed to supply electricity during periods of elevated demand, helping grid operators maintain reliability during extreme weather conditions and heavy consumption periods.
The facility connected to ERCOT’s North Load Zone on 29 April 2026, adding new generating capacity to the state’s electricity network at a time when officials continue to focus on grid resilience and energy security.
The project has also secured funding through another Texas Energy Fund initiative. In October 2025, the facility received a low-interest, 20-year loan worth $278.3 million under the TxEF In-ERCOT Generation Loan Programme. According to the PUCT, Pin Oak Creek Energy Center is the first project participating in two Texas Energy Fund programmes to achieve interconnection with the ERCOT grid.
Texas lawmakers and regulators have increased efforts to support dispatchable power generation following several years of heightened scrutiny over the reliability of the state’s electricity infrastructure. Rapid population growth, increased industrial activity and extreme weather events have all contributed to rising pressure on the grid.
The Completion Bonus Grant Programme is one of four initiatives operating under the Texas Energy Fund framework. State officials say the programme is intended to accelerate the development of reliable electricity generation projects while linking public funding to long-term operational performance.
The latest agreement represents continued progress for the state-backed initiative as Texas seeks to bring additional generation online and strengthen the resilience of the ERCOT system in the years ahead.
