AEP Unit Secures Up to $3.26 Billion DOE Loan for Texas Grid Projects
By Anvee Bhutani
American Electric Power Co.'s Texas utility said Wednesday it entered an agreement for a loan of up to $3.26 billion from the U.S. Department of Energy to help fund transmission projects aimed at improving grid reliability and supporting growing electricity demand.
AEP Texas said the loan from the DOE's Office of Energy Dominance Financing is expected to save customers an estimated $685 million over 30 years.
The utility plans to use the funds to finance nearly 100 projects, including rebuilding and upgrading existing transmission lines and constructing new ones spanning about 2,800 miles.
AEP Texas said it has signed letters of agreement supporting up to 41 gigawatts of potential new electricity demand through 2030.
The company said the projects are expected to strengthen grid reliability, connect new generation and customer load, increase transmission capacity and reduce power interruptions.
AEP Texas serves more than one million customers across south and west Texas. Its parent company, American Electric Power, said the loan is part of a broader strategy to secure federal funding across its 11-state service territory to help lower customer costs while investing in grid reliability.
Write to Anvee Bhutani at anvee.bhutani@wsj.com
(END) Dow Jones Newswires
July 08, 2026 11:03 ET (15:03 GMT)
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