The Energy Department announced on Wednesday it finalized a $3.26 billion loan to help boost electricity transmission infrastructure and reduce power interruptions in Texas.
The financing from the Office of Energy Dominance Financing to AEP Texas, a subsidiary of American Electric Power, will support a portfolio of nearly 100 projects to enhance grid reliability, the company said.
AEP Texas said it signed letters of agreement supporting up to 41 gigawatts of potential new load additions through 2030. The agreement is expected to provide an estimated $685 million in total savings to customers on electricity costs over 30 years.
The company intends to use the loan to rebuild or reconductor existing transmission lines, as well as build new transmission lines spanning about 2,800 miles.
