Rayburn Electric Cooperative Executes Texas Energy Fund Loan Agreement for Rayburn Energy Station II

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ROCKWALL, Texas - June 4, 2026 -Rayburn Electric Cooperative today announced it has executed a Texas Energy Fund (TEF) loan agreement with the Public Utility Commission of Texas (PUCT) to finance the development of Rayburn Energy Station II (RES II), a 570-megawatt natural gas generation facility to be located adjacent to Rayburn's existing Rayburn Energy Station in Sherman, Texas. RES II is scheduled to come online in June 2028.

Rayburn's investment in RES II is a direct response to the rapid load growth, economic expansion, and increasing reliability demands experienced by its four Member cooperatives across North Texas - one of the most constrained and fastest-growing load pockets in the ERCOT grid. Sherman is part of that story, and RES II will provide firm, dispatchable capacity where it is needed most. The facility will be locally owned and operated and built to perform during extreme weather and peak demand conditions.

"After Winter Storm Uri, we understood that generation ownership was a critical component of our core mission. Expanding our generation portfolio is our responsibility to our Members and the more than 650,000 Texans we serve," said David A. Naylor, President and CEO of Rayburn Electric Cooperative. "Rayburn Energy Station II is the next chapter in that commitment. The communities we serve are growing and our Members need us to be ready. This project keeps that promise. Governor Abbott and the Texas legislature saw that need across Texas, and we are proud to be the first electric cooperative to qualify for and receive loan funding through the PUCT's management and oversight of the Texas Energy Fund loan program."

RES II will be developed adjacent to Rayburn Energy Station, a 758 MW natural gas facility that Rayburn acquired following Winter Storm Uri in 2021. That acquisition gave Rayburn direct operational control over a critical generation asset and became a cornerstone of its long-term reliability strategy. RES II builds on that foundation by expanding Rayburn's owned generation portfolio and strengthening its ability to support local voltage stability, relieve congestion, and provide black start capability within ERCOT.

The Texas Energy Fund, created by the Texas Legislature and approved by voters in November 2023, was established to add up to 10,000 megawatts of new, dispatchable power generation across the ERCOT system. Rayburn was selected from a competitive field of applicants and is the only electric cooperative selected and approved to receive TEF financing.

"We are deeply grateful to the Public Utility Commission and the Texas Energy Fund program for selecting Rayburn for this opportunity. Being chosen is a recognition that the infrastructure we are building here is critically needed. Getting to this moment is a direct reflection of the preparation and commitment everyone at Rayburn brought to this effort, and we are proud of what this project means for the communities we serve," said Christian Nagel, Senior Director of Power Supply and Production at Rayburn Electric Cooperative.

Rayburn will break ground on RES II this summer, with commercial operations targeted for Summer 2028. The project will increase power generation capacity for Rayburn's Member cooperatives - Fannin Electric Cooperative, Farmers Electric Cooperative, Grayson-Collin Electric Cooperative, and Trinity Valley Electric Cooperative - and the communities they serve.

Rayburn's internal legal and commercial teams were assisted by Dentons US LLP and Eversheds Sutherland (US) LLP in connection with the Texas Energy Fund loan agreement and project financing. Jefferies LLC served as financial advisor to Rayburn, providing strategic advisory services in support of the transaction financing.

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About Rayburn Electric Cooperative

Rayburn Electric Cooperative, headquartered in Rockwall, Texas, is a not-for-profit generation and transmission cooperative dedicated to providing dependable and cost-effective wholesale electric energy solutions. Rayburn serves four Member-owned distribution cooperatives - Fannin Electric Cooperative, Farmers Electric Cooperative, Grayson-Collin Electric Cooperative, and Trinity Valley Electric Cooperative - collectively serving more than 650,000 Texans in one of the fastest-growing regions in the country. Governed by a Board of Directors comprised of Member cooperative leaders, Rayburn's mission is to deliver competitive, reliable wholesale power while exemplifying integrity and excellence in service to its Members. For more information, visit www.rayburnelectric.com.

About the Texas Energy Fund

Created by the Texas Legislature and ratified by voters in November 2023, the Texas Energy Fund supports the development of new dispatchable power generation resources within the ERCOT market. The program is administered by the Public Utility Commission of Texas.

Read more about RES II, Rayburn's latest generation portfolio expansion: