Note: Single-source report; awaiting corroboration.
The U.S. Department of Energy’s Office of Energy Dominance Financing has closed a loan of up to $3.26 billion to AEP Texas to help lower electricity costs and modernize the state’s electric grid. The investment is projected to save over one million Texas households and businesses about $685 million over the next 30 years, while improving grid reliability and creating thousands of jobs, according to the department's statement.
The loan will fund nearly 100 transmission projects across Texas, including rebuilding or reconductoring existing lines and constructing new infrastructure spanning roughly 2,800 miles. This work is expected to double the power-carrying capacity of upgraded transmission networks, reduce power interruptions, and connect new reliable baseload generation to the grid. It aims to meet rising electricity demand from sectors such as data centers, advanced manufacturing, and oil and gas development in the Permian Basin.
According to the DOE, the financing is enabled by the Working Families Tax Cuts Act and aligns with President Trump’s Executive Order on Unleashing American Energy. This loan is the third concurrent conditional commitment and financial closing through the Energy Dominance Financing Program, which supports U.S. energy security, grid reliability, and lower costs for Americans.