Corpus Christi – October 12, 2026 -- AEP Texas, a subsidiary of American Electric Power (Nasdaq: AEP), has agreed to a loan of up to $3.26 billion from the U.S. Department of Energy's Office of Energy Dominance Financing, with projected customer savings of $685 million over 30 years.
The financing will fund a portfolio of nearly 100 projects aimed at improving grid reliability and supporting load growth in one of the fastest-growing regions in the United States.
AEP Texas plans work on about 2,800 miles of transmission lines
The utility intends to rebuild or reconductor existing transmission lines and build new ones, covering approximately 2,800 miles. The investment is projected to increase the capacity of existing transmission infrastructure and reduce power interruptions for customers.
Letters of agreement cover up to 41 GW of potential new load through 2030
AEP Texas has signed letters of agreement supporting up to 41 gigawatts of potential new load additions through 2030. The loan is intended to help connect that new load and new generation resources while managing affordability.
Adrian Rodriguez, president and chief operating officer of AEP Texas, said the loan supports critical transmission updates to strengthen reliability, connect new load and generation, and manage affordability.
AEP extends federal funding strategy across 11 states
The loan is part of AEP's broader strategy across its 11-state service territory to secure federal funding to reduce customer costs while supporting growth and investing in reliability and resiliency.