DOE, AEP Texas Announce $3.26B Package Supporting Energy Affordability, Reliability
More than 1 million AEP Texas customers will save $685 million in electricity costs during the next 30 years as a result of a new DOE loan.
In July, the U.S. Department of Energy (DOE) announced the closure of a $3.26 billion loan that will support AEP Texas in its work to lower customer costs and enhance energy grid reliability and resilience.
More than 1 million AEP Texas customers will save $685 million in electricity costs during the next 30 years as a result of the loan, which will help fund 100 AEP Texas transmission projects, including the construction of 2,800 miles of new transmission lines.
“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,” AEP Texas President and COO Adrian Rodriguez said in a statement. “This loan supports critical updates to our transmission infrastructure to strengthen reliability, connect new load and generation resources, and manage affordability.”
The loan will also support up to 41 gigawatts of new load growth by 2030, as AEP Texas invests in the grid to meet energy demand while maintaining reliability and affordability for current customers.
“This investment will modernize Texas’ electric grid, support the energy needed for AI, advanced manufacturing, the Permian Basin, and help keep electricity costs down for Texans,” Energy Secretary Chris Wright said in a statement.
The loan is the third significant package to be announced by DOE in recent months as the government supports electric companies’ efforts to maintain a reliable and resilient grid and deliver reliable, affordable energy to customers.
In June, DOE and DTE Energy announced a similar $1.6-billion loan package that will deliver more than $700 million in cost savings to Michigan customers. In February, DOE issued its largest-ever loan guarantee to Southern Company, supporting $26.5 billion in energy projects in Alabama and Georgia.
“These loans will help lower the cost of investments in our grid that will enhance reliability and resilience for the benefit of our customers,” Chris Womack, chairman, president and CEO of Southern Company, said in a statement at the time.
DOE’s Gregory Beard appeared on a recent episode of the Electric Perspectives podcast to discuss the department’s Office of Energy Dominance Financing and how it is supporting the work that electric companies do in their communities every day. Listen here.