Governor Greg Abbott Announces Texas Energy Fund Grant To Strengthen Electric Reliability In East Texas

~ In a recent announcement, Governor Greg Abbott revealed the first agreement made under the Texas Energy Fund (TxEF) Outside of ERCOT Grant Program (OEGP). The recipient of this grant is Sam Houston Electric Cooperative, and the funds will be used to replace and upgrade nearly 10,000 electric poles in East Texas. This project aims to strengthen the equipment and ensure reliable electricity for over 38,000 consumers in the state.

Governor Abbott expressed his satisfaction with the results of the Texas Energy Fund, stating that it delivers tangible benefits for Texans and reinforces the electric systems that are crucial for families, businesses, and communities. He also emphasized that this grant to Sam Houston Electric Cooperative will replace thousands of vulnerable utility poles and improve their ability to withstand severe weather conditions.

The Chairman of the Public Utility Commission of Texas (PUCT), Thomas Gleeson, also praised the Outside-ERCOT Grant Program for its positive impact on consumers both within and outside the ERCOT footprint. He stated that this program is delivering concrete improvements for Texans and fulfilling its promise of enhancing reliability across the entire state.

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Doug Turk, CEO of Sam Houston EC, expressed his gratitude for receiving this grant on behalf of their consumer-members. As a not-for-profit electric cooperative, they are honored to have been chosen for this project. Turk also mentioned that over the past decade, they have strategically replaced poles to strengthen their electricity distribution system. This grant will further support their ongoing efforts to harden and improve resilience in their grid.

The project, named Steel Anchor, will involve replacing 9,838 wooden utility poles with stronger steel and ductile iron poles in Montgomery, Liberty, and Hardin counties. These upgrades will significantly enhance reliability and resilience in some of the most hurricane-prone areas within Sam Houston Electric Cooperative's service territory.

The PUCT has approved a grant award of approximately $73 million for this project through OEGP. This program provides funding for electric infrastructure projects that aim to improve reliability and resilience for Texans served by electric utilities outside the ERCOT region. The Steel Anchor project is expected to be completed by June 2031.

The OEGP is one of four programs under the Texas Energy Fund, and more information about these programs can be found on the PUCT's website. With this first agreement in place, it is evident that the Texas Energy Fund is making significant strides in strengthening the state's electric systems and ensuring reliable electricity for all Texans.

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