en.Wedoany.com Reported - The U.S. Department of Energy (DOE) announced on Wednesday that it has provided a loan of up to $3.26 billion to AEP Texas, a subsidiary of American Electric Power (AEP), to fund approximately 100 transmission projects and upgrades to existing facilities in Texas.

The DOE stated that these projects are expected to save households and businesses approximately $685 million in electricity costs over the next 30 years. The scope of work includes rebuilding or replacing existing transmission line conductors, as well as constructing approximately 2,800 miles of new transmission infrastructure.

The DOE noted that the upgrades will double the transmission capacity of existing infrastructure to "help meet rapidly growing electricity demand from data centers, advanced manufacturing, and oil and gas development in the Permian Basin." AEP Texas revealed that it has signed relevant support agreements, enabling it to accommodate up to 41 gigawatts of new potential load by 2030.

Adrian Rodriguez, President and Chief Operating Officer of AEP Texas, stated in a press release that Texas will experience "phenomenal growth" over the next five years. He indicated that this loan will support critical upgrades to transmission infrastructure to enhance reliability, connect new load and generation resources, and effectively manage affordability.

According to the company announcement, this loan is part of AEP's "broader strategy" across its 11-state service area to secure federal funding to lower customer costs while supporting growth and investing in grid reliability and resilience. Another AEP subsidiary, AEP Transmission, received a $1.6 billion loan guarantee in October to replace conductors and rebuild approximately 5,000 miles of transmission lines in Indiana, Michigan, Ohio, Oklahoma, and West Virginia.

AEP Texas is the fourth utility company to secure financing through the Trump administration's "Energy Dominance Financing" program. In February, the DOE announced $26.5 billion in loans to Alabama Power and Georgia Power, subsidiaries of Southern Co., to build or upgrade 16.7 gigawatts of grid resources, including 5 gigawatts of new natural gas generation capacity. In June, the program provided a $1.6 billion loan to DTE Gas Company in Michigan to update approximately 800 miles of gas distribution mains and service lines, and to rebuild an existing compressor station.