Texas is investing another $113 million to strengthen electric reliability across the Panhandle and South Plains, with Governor Greg Abbott announcing a new round of grants through the Texas Energy Fund (TxEF) to modernize infrastructure and improve grid resilience outside the ERCOT service area.
The funding will support projects by Southwestern Public Service Company (SPS), the Texas utility subsidiary of Xcel Energy, aimed at reducing outages, improving system monitoring, and upgrading aging electrical infrastructure serving communities throughout the region.
The announcement highlights Texas' continued focus on improving grid reliability not only within ERCOT but also in areas served by utilities operating outside the state's primary electric market. The Public Utility Commission of Texas (PUCT) administers the Outside ERCOT Grant Program, which finances projects designed to strengthen electric service for Texans served by those utilities.
Governor Abbott said the investment reflects the state's commitment to dependable energy infrastructure across every region of Texas.
"Texans leads the nation in energy because we invest in dependable power in every corner of our state," said Governor Abbott. "This grant will improve infrastructure that families and businesses across Texas can reliably use for generations."
The projects include a wide range of system improvements intended to harden the electric distribution network against equipment failures and severe weather. SPS plans to repair or replace power poles, strengthen higher-risk sections of the distribution system, and install advanced monitoring technology capable of identifying problems before they lead to widespread outages.
One of the largest initiatives funded through the grant is a drone-based inspection program that will evaluate more than 273,000 utility poles across the SPS service territory. The inspections are intended to identify deteriorating equipment and other vulnerabilities before they become reliability issues.
The utility will also install pole-mounted sensors that continuously monitor distribution lines in real time. The technology is expected to improve hazard detection, provide more precise outage locations, and allow crews to respond more quickly when problems occur. Additional upgrades will modernize equipment throughout the system while enhancing public safety.
PUCT Chairman Thomas Gleeson said the projects work together to strengthen every stage of electric delivery.
"Each reliability project complements the next, creating multiple layers of protection for consumers and businesses," said PUCT Chairman Thomas Gleeson. "From substations and poles in the ground to the wires overhead delivering power to homes and businesses, this grant program is helping make every step in the process stronger for Texans."
Xcel Energy officials said the state funding will accelerate planned improvements while helping limit costs passed on to customers.
"This TxEF grant allows us to expand important system improvements while helping to reduce costs for our customers across the Texas Panhandle and South Plains," said Xcel Energy – Texas Interim President Brad Baldridge. "We're making these investments to strengthen our grid and improve reliability and public safety. These grant funds will advance the resiliency of our grid and minimize costs."
