AEP Texas set to construct one of the first 765-kV transmission lines in Texas | AEP Stock News

Article's Main Image
  • AEP Texas, a subsidiary of American Electric Power (AEP, Financial), will construct a 765-kV transmission line to support Permian Basin's growing electricity demands.
  • The Howard-Solstice Transmission Line Project spans approximately 300 miles and is one of the first of its kind in Texas.
  • The project is part of AEP's $54 billion investment plan for 2025-2029, enhancing infrastructure and grid resilience in Texas.

AEP Texas has announced the construction of one of the first 765-kV transmission lines in the state, a key component of the Permian Basin Reliability Plan. This development was approved on April 24 by the Public Utility Commission of Texas (PUCT) under Texas House Bill 5066. The Howard-Solstice Transmission Line Project will extend approximately 300 miles, connecting the AEP Texas' Solstice Substation located near Fort Stockton to another substation near San Antonio.

Designed to address the growing electricity demands in the Permian Basin, this project focuses on supporting the expansion and electrification of the oil and gas industry and enhancing the reliability of the electric grid. AEP Texas is leveraging its parent company's significant experience with 765-kV transmission lines. American Electric Power (AEP, Financial) currently operates 2,110 miles of such infrastructure, the largest network in North America.

This strategic initiative is part of AEP's broader $54 billion investment plan from 2025 to 2029. It supports the overarching goal of providing reliable and efficient power delivery systems across regions experiencing rapid industrial growth. The implementation of 765-kV transmission lines marks a significant technological advancement, enabling long-distance power transmission with minimized energy losses, crucial for the high-growth Permian Basin region.

AEP Texas plans to engage local communities through open houses along the transmission line route during the summer of 2025. These events aim to discuss potential routing options and gather community feedback. The project positions AEP Texas favorably within the state's energy market, aligning their development goals with state-mandated infrastructure plans to ensure reliable service delivery.

About AEP Texas: As a major energy delivery company, AEP Texas is integral to the deregulated Texas retail electric market, providing safe and reliable electricity services to over one million customers across south and west Texas. The company is keen on modernizing infrastructure to support future community and industrial growth.

About American Electric Power (Nasdaq: AEP): Headquartered in Columbus, Ohio, AEP is a leading electric utility company in the United States, operating the largest electric transmission system and owning diverse generation capacities. Committed to enhancing customer service, the company is making significant investments to support growing community energy needs.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.