AEP Texas Secures Up to $3.26 Billion DOE Loan for Grid Modernization

SAN ANGELO, TX – AEP Texas, a subsidiary of American Electric Power (Nasdaq: AEP), has entered into an agreement for a loan of up to $3.26 billion from the U.S. Department of Energy’s (DOE) Office of Energy Dominance Financing (EDF) to help fund infrastructure investments to improve resiliency and deliver an estimated $685 million in total savings to customers over 30 years.

The loan is to finance a portfolio of nearly 100 projects to enhance grid reliability and support growth in one of the nation’s fastest-growing regions. AEP Texas has signed letters of agreement (LOAs) supporting up to 41 gigawatts (GW) of potential new load additions through 2030.

“Texas is poised for incredible growth over the next five years. AEP Texas is committed to enabling this opportunity, while leveraging resources to deliver future savings for our customers,” said Adrian Rodriguez, president and chief operating officer of AEP Texas. “This loan supports critical updates to our transmission infrastructure to strengthen reliability, connect new load and generation resources and manage affordability.”

AEP Texas plans to use the funds to rebuild or reconductor existing transmission lines, as well as build new transmission lines, spanning approximately 2,800 miles. This investment is projected to increase capacity of existing transmission infrastructure and reduce power interruptions for customers. 

This loan is part of AEP’s broader strategy across its 11-state service territory to secure federal funding to reduce customer costs while supporting growth and investing in reliability and resiliency.