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US DOE Approves $3.26 Billion Financing for AEP Texas Transmission Expansion

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The US Department of Energy approved financing of up to $3.26 billion for American Electric Power (AEP) Texas to expand the state's transmission network, improve grid reliability and lower electricity costs, it said Wednesday.

Over 1 million Texas households and businesses are expected to save about $685 million on electricity over the next 30 years, while the investment will also create thousands of jobs and strengthen long-term energy reliability, the department said.

Through its Office of Energy Dominance Financing, the department will fund about 100 transmission projects across Texas, including rebuilding aging power lines, reconductoring existing infrastructure and adding new transmission facilities.

The projects will install roughly 2,800 miles of transmission infrastructure under President Donald Trump's Unleashing American Energy executive order, expanding the state's power delivery network, the department said.

Modernizing the transmission system will double the carrying capacity of upgraded lines, reduce outages and bring additional reliable baseload generation onto the Texas grid.

The expanded network will support rising electricity demand from data centers, advanced manufacturing operations and oil and natural gas production in the Permian Basin, the department said.

The financing marks the Trump administration's third concurrent conditional commitment and financial close, as well as the third utility transaction completed through the EDF program.

"This investment will modernize Texas' electric grid, support the energy needed for AI, advanced manufacturing, the Permian Basin, and help keep electricity costs down for Texans," said US Energy Secretary Chris Wright.

Price: $137.45, Change: $-0.08, Percent Change: -0.06%

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