DOE closes $3.26B transmission loan to AEP Texas
Type: Financing · Technology: Transmission · Country: United States · Value: $3.26B · Announced: 2026-07-08
The U.S. Department of Energy provided a loan of up to $3.26 billion to AEP Texas on July 8 2026. The financing will support the rebuilding, reconductoring, and new construction of roughly 2,800 miles of transmission lines across a portfolio of nearly 100 projects. The projects span multiple regions in Texas and aim to modernize the grid to accommodate growing electricity demand. This loan, administered by the DOE's Office of Energy Dominance Financing, strengthens AEP Texas's transmission capacity and aligns with broader U.S. energy security goals. The deal underscores federal commitment to upgrading critical transmission infrastructure in the United States.
Counterparties
- U.S. Department of Energy (Lender)
- American Electric Power (Parent Company)
- AEP Texas (Borrower)