Energy

Fowler: AEP its investing more than a billion dollars in electricity upgrades in South Texas

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I just want to say that with respect Beverley question on what is AEP physically doing to help meet the challenges of the new load… you're correct. Today's marketplace and the interest in Texas and certainly the Rio Grande Valley from prospective industries is greater than ever before. Not only are the number of projects greater than ever before, but the size in terms of electrical requests seems to be larger than we've ever seen in the past. 

So, I think it was back in late 2021, AEP Texas embarked on what we call the Rio Grande Valley Transmission Improvements Project. Some of you are starting now to see the finishing up portions of that. It is over a billion dollars of investment, and about 190 miles of 345-kilovolt transmission upgrades. 345 is the largest transmission that we have in Texas today, and almost 109 miles are here in the Rio Grande Valley to help beef things up. To help improve resiliency and reliability for the Rio Grande Valley. 

Much of that is to help do those things for the customers we have, and also with some headroom for new industry. You may have also seen some of AEP’s 138-kilovolt projects, such as at Highway 34 down along the (Port of Brownsville) ship channel. There's a new 138-kV line down there, recently built to help serve some of the larger industry that's coming in there. So that's what's happening. 

What we're proposing to have happen and we recently filed, or I guess it was late last year… we filed with the Electrical Living Council of Texas, or ERCOT regional planning group. Like Mike said earlier, the RPG is basically a regional planning group study. It's our proposal to help justify the need for more large transmission in the Rio Grande Valley. And so we're anxious to see how that turns out because obviously we would like to build more. We think there's going to be a need for more, and as more large loads come to this region, we're going to be there to help serve that. 

It's important to note that ERCOT… because I heard the concern about folks saying how is this going to negatively impact things… I got this from the open comments… that it will negatively impact us. Well, that's ERCOT's job and their role as that air traffic controller. And with some of the various projects, I have had to tell them that it could take three years to get them power or maybe longer. Well, that's because ERCOT requires us to upgrade the transmission system to the capacity and capability of handling that new load before they energize, so that it doesn't negatively impact the rest of the customers. So that's an important component that you need to be aware of.

Editor’s Note: The above remarks were delivered by Dale Fowler, manager of economic and business development for AEP Texas. Fowler delivered them at a forum titled "Powering Texas and Regional Growth. "It was co-hosted by the Institute of Leadership in Capital Projects and Harlingen Economic Development Corporation and held at Harlingen Convention Center.

Editor’s Note: The “Beverly” Flower referenced was Beverly Loftus, chief operating officer of Harlingen EDC. The “Mike” Fowler referenced was Mike Hoke, director of public engagement for the Public Utility Commission of Texas.