Energy Department Closes Loan to AEP Texas, Delivering Millions in Electricity Cost Savings for Texans

WASHINGTON-The U.S. Department of Energy's (DOE) Office of Energy Dominance Financing (EDF) today announced it has closed a loan up to $3.26 billion to AEP Texas to lower electricity costs and strengthen and modernize the Texas grid. Thanks to President Trump's Working Families Tax Cuts Act, the investment will save more than one million Texas households and businesses approximately $685 million in electricity costs over the next 30 years, improve grid reliability, create thousands of jobs, and help ensure Americans have access to affordable, reliable, and secure energy.

"President Trump's Working Families Tax Cuts Act is driving investments that strengthen America's energy infrastructure while lowering costs for hardworking families," said U.S. Energy Secretary Chris Wright. "This investment will modernize Texas' electric grid, support the energy needed for AI, advanced manufacturing, the Permian Basin, and help keep electricity costs down for Texans."

In accordance with President Trump's Executive Order, Unleashing American Energy, the loan will finance approximately 100 transmission projects across Texas, including rebuilding or reconductoring existing transmission lines, and constructing new transmission infrastructure spanning roughly 2,800 miles.

These projects will double the power-carrying capacity of upgraded transmission infrastructure, reduce power interruptions, and connect new sources of reliable baseload generation to the grid. By expanding transmission capacity, the projects will help meet rapidly growing electricity demand from data centers, advanced manufacturing, and oil and natural gas development in the Permian Basin.

This loan marks the Trump Administration's third concurrent conditional commitment and financial close, and the third utility financing completed through the Energy Dominance Financing Program.

Under President Trump's leadership, EDF is committed to financing American energy and manufacturing projects that meaningfully contribute to U.S. energy security, grid reliability, and lowering costs for all Americans. EDF empowers the private sector to invest in the future, win the AI race, strengthen American industry, and restore American Energy Dominance.