Governor Greg Abbott Announces $200 Million Texas Energy Fund Grant For Electric Reliability In Northeast Texas

~ Governor Greg Abbott has announced a new agreement under the Texas Energy Fund (TxEF) Outside-ERCOT Grant Program (OEGP) with Southwestern Electric Power Company (SWEPCO). This grant, which is being administered by the Public Utility Commission of Texas (PUCT), will fund a project to upgrade power equipment in Northeast Texas. The project is expected to benefit over 192,000 consumers by ensuring reliable electricity for their daily lives.

In a statement, Governor Abbott emphasized the importance of reliable electricity for Texans and stated that as the state continues to grow, it is crucial to ensure families, businesses, and communities have access to affordable and dependable power. He also expressed his confidence that these investments in upgrading power line infrastructure will help Texas maintain its position as the energy capital of the world.

PUCT Chairman Thomas Gleeson also praised the TxEF for producing tangible results for Texans. He highlighted how this project will modernize critical electric equipment and strengthen reliability for over 192,000 consumers in Northeast Texas. He also noted that this aligns with the TxEF's goal of supporting lasting improvements in energy infrastructure.

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SWEPCO President and Chief Operating Officer Brett Mattison echoed these sentiments, stating that this grant will allow them to accelerate critical infrastructure improvements while minimizing financial impact on customers. He emphasized that this project is a win for reliability, affordability, and the communities they serve. Mattison also mentioned SWEPCO's dedication to serving customers and their efforts to secure state and federal grants to improve service while keeping customer costs low.

The project itself will involve upgrading approximately 700 miles of powerline infrastructure and improving nearly 200 circuits in Northeast Texas. This includes replacing aging copper wire with stronger aluminum alloy conductors and replacing existing utility poles. These upgrades are expected to improve reliability and resilience of the electric distribution system as well as storm resilience in SWEPCO's territory.

The PUCT has approved a grant award of approximately $200 million for this project through the OEGP. This program provides funding for electric infrastructure projects that enhance reliability and resiliency for Texans served by electric utilities outside the ERCOT region. The project is estimated to be completed by early 2031.

The OEGP is one of four programs under the TxEF, and more information about these programs can be found on the PUCT's website. With this latest agreement, it is clear that the TxEF is making significant strides in improving energy infrastructure and ensuring reliable electricity for Texans.

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