U.S. Department of Energy approves $3.26 billion loan to AEP Texas for transmission grid modernization
Type: Financing · Technology: Transmission · Country: United States · Value: $3.26B · Announced: 2026-07-09
The U.S. Department of Energy approved a $3.26 billion loan to AEP Texas to modernize its electricity transmission network. The financing will support upgrades that improve grid reliability and lower electricity costs across Texas. The project is projected to create jobs and generate $685 million in savings for Texas residents over a 30‑year horizon. By enhancing the transmission infrastructure, the deal aims to meet growing energy demand and facilitate economic growth in the region. The loan reflects the federal government’s commitment to invest in critical grid infrastructure and will be administered under the DOE’s loan program.
Counterparties
- U.S. Department of Energy (Lender)
- AEP Texas (Borrower)