Texas Energy Fund Awards $240M to Boost Power Grid Resilience Outside ERCOT

The Public Utility Commission of Texas (PUCT) has selected the first four projects under the Texas Energy Fund Outside ERCOT Grant Program. The projects total over $240 million in funding. They aim to improve electric reliability for nearly 400,000 Texans outside the ERCOT service area.

The next step will involve finalizing grant agreements between the PUCT and each project sponsor.

PUCT Chairman Thomas Gleeson emphasized the program’s broad reach and critical role in ensuring statewide energy security.

“The Texas Energy Fund was created to benefit every citizen of our state regardless of which grid or provider they get their power from,” Gleeson said. “While it’s critically important to add more power to the electric grids that serve Texas, we must also do everything we can to enhance and strengthen the systems we have in place, and that’s what these four projects will do.”

Among the approved projects, the commission awarded El Paso Electric $17.7 million for its Continuous Online Monitoring Project, which implements real-time analytics and monitoring systems to improve power generation availability and operational resilience.

North Plains Electric Cooperative received $22.3 million for two initiatives. They got $20.4 million to build a 115kV transmission loop. This loop will improve reliability in five northeast Texas counties. They also received $1.88 million to expand the Ochiltree Interchange. This expansion increases electric service capacity in northeast and panhandle Texas.

Southwestern Electric Power Company (SWEPCO) received the largest grant of $200 million. They will replace aging copper wire and utility poles across 700 miles of transmission lines. This project meets the maximum grant limit set by 16 TAC §25.512, the regulation governing awards under the program.

Eligible OEGP projects must focus on infrastructure modernization, weatherization, resiliency improvements, or vegetation management. All grants are contingent upon available funding and mutual agreement on terms outlined in forthcoming contracts.

TThese first awards under the Texas Energy Fund highlight a significant investment in infrastructure. The focus is on communities historically underserved by the state’s energy planning priorities.