Governor Greg Abbott Announces $200 Million Texas Energy Fund Grant For Electric Reliability In Northeast Texas

TEXAS, June 3 - June 3, 2026 | Austin, Texas | Press Release

Governor Greg Abbott today announced the second agreement under the Texas Energy Fund (TxEF) Outside-ERCOT Grant Program (OEGP) with Southwestern Electric Power Company (SWEPCO). The grant, administered by the Public Utility Commission of Texas (PUCT), funds a project that will upgrade approximately 700 miles of power equipment in Northeast Texas, ensuring electric reliability for more than 192,000 Texas consumers.

“Reliable electricity powers every part of Texans’ daily lives,” said Governor Abbott. “As our state grows, we will ensure families, businesses and communities have the reliable, affordable power they need. Through these investments to upgrade power line infrastructure, Texas will remain the energy capital of the world.”

“The TxEF is producing tangible results for Texans,” said PUCT Chairman Thomas Gleeson. “This project will modernize critical electric equipment, strengthen reliability for more than 192,000 consumers, and ensure Northeast Texas communities have the dependable power they deserve. This is exactly the kind of lasting improvement the TxEF was created to support.”

“This TxEF grant allows us to accelerate critical infrastructure improvements while minimizing the financial impact on our customers,” said SWEPCO president and chief operating officer Brett Mattison. “It’s a win for reliability, affordability and the communities we serve. Across SWEPCO, our teams are united in our shared mission to serve customers, and we work diligently to pursue state and federal grants that help improve service while minimizing customer costs.” 

The project will upgrade approximately 700 miles of powerline infrastructure and improve nearly 200 circuits in Northeast Texas. Upgrades include replacing aging copper wire with stronger aluminum alloy conductors and replacing existing utility poles. The project will improve the reliability and resilience of the electric distribution system and improve storm resilience in SWEPCO’s territory.

The PUCT approved a grant award of approximately $200 million for the project through the OEGP, which provides funding for electric infrastructure projects that improve reliability and resiliency for Texans served by electric utilities outside the ERCOT region.

SWEPCO's project is expected to be completed by early 2031.

The OEGP is one of four TxEF programs. More information about these programs is available on the PUCT’s website.