Gov. Greg Abbott announced the first new agreements in the Texas Energy Fund’s “Outside of ERCOT Grant Program.”
The Public Utility Commission of Texas has approved $964.5 million for allocation for OEGP projects.
TxEF is set to partner with Sam Houston Electric Cooperative to upgrade outdated utility poles in regions not supported by ERCOT. The project, named “Steel Anchor,” is set to cost $73 million. It will replace nearly 10,000 wooden utility lines with steel and ductile poles across parts of Montgomery, Liberty, and Hardin counties.
“This grant to Sam Houston Electric Cooperative will replace thousands of vulnerable utility poles to better withstand severe weather and ensure a more reliable and resilient grid in East Texas,” said Abbott.
The goal of this project is to strengthen and increase reliability for areas outside of Texas’ main service area in the event of natural disasters, such as hurricanes.
Founded in 1939, Sam Houston Electric Cooperative is guided by an 11-member board of directors servicing 177,211 utility poles outside ERCOT’s jurisdiction.
“As a not-for-profit electric cooperative, Sam Houston EC is honored to receive this grant to reinforce our system on behalf of our consumer-members,” said CEO Doug Turk. “Sam Houston EC has strategically replaced poles to improve the strength of its electricity distribution system. This grant will boost the Cooperative’s ongoing grid-hardening and resiliency program.”
However, the OEGP is not stopping solely with Steel Anchor. An additional $891.5 million in funding has been allotted to further weatherize and ensure reliability for nearly 1.5 million Texans.
“Texans in every corner of our state expect and deserve reliable electricity,” said PUCT Chairman Thomas Gleeson.
Abbott announced Wednesday that an additional 700 miles of power equipment will be upgraded in northeast Texas, serving more than 192,000 Texans. The project is expected to cost about $200 million and be completed by early 2031.
“As our state grows, we will ensure families, businesses and communities have the reliable, affordable power they need,” said Abbott. “Through these investments to upgrade power line infrastructure, Texas will remain the energy capital of the world.”
The contract will be conducted by Southwestern Electric Power Company. Tracing its roots to 1912, the company currently manages infrastructure and provides electricity to more than half a million customers, including some in Arkansas and Louisiana.
The program will upgrade aging infrastructure with more durable equipment, including replacing aging copper wire with aluminum alloy conductors, and will upgrade nearly 200 circuits to improve overall resilience and reliability in the face of major weather events in the region.
“This TxEF grant allows us to accelerate critical infrastructure improvements while minimizing the financial impact on our customers,” said SWEPCO CEO 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.”
