AEP Texas to execute three-year plan to boost resiliency for customers and improve infrastructure

Rhea-AI Summary

AEP Texas, a subsidiary of American Electric Power (Nasdaq: AEP), has received approval from the Public Utility Commission of Texas for a three-year infrastructure resiliency plan. The $318 million investment initiative aims to strengthen distribution infrastructure and enhance wildfire prevention capabilities.

The comprehensive plan focuses on replacing approximately 80% of aging assets with superior weather-resistant equipment, implementing targeted tree trimming, and introducing advanced technologies for wildfire management. This strategic investment is projected to prevent 1.3 billion minutes of customer interruptions and generate $71 million in restoration cost savings over the project lifetime.

AEP Texas serves over one million customers across a nearly 100,000 square mile territory, representing the largest coastal exposure among Texas utilities. The service area spans from the Texas panhandle to the Rio Grande Valley, facing various extreme weather challenges including hurricanes, wildfires, and flooding.

Positive

• Secured regulatory approval for $318 million infrastructure investment plan
• Expected to save $71 million in restoration costs
• Will prevent 1.3 billion minutes of customer interruptions
• 80% of plan dedicated to upgrading aging infrastructure with superior equipment

Negative

• Significant capital expenditure requirement of $318 million over three years
• Large exposure to extreme weather risks across coastal areas

News Market Reaction

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-0.30% News Effect

On the day this news was published, AEP declined 0.30%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

CORPUS CHRISTI, Texas, April 24, 2025 /PRNewswire/ -- AEP Texas will implement a three-year resiliency plan to harden its distribution infrastructure, complete targeted tree trimming and vegetation management work and introduce technologies that will provide better situational awareness to assist in the prevention and mitigation of wildfires.

The purpose of the system resiliency plan is to reduce the duration of outages and lower the restoration costs of future storm events. Approximately 80 percent of the resiliency plan involves replacing aging assets with newer equipment that is designed to a higher standard that can better withstand forces from extreme weather events.

The Public Utility Commission of Texas (PUCT) approved the unopposed settlement AEP Texas reached with parties at the April 24 open meeting. 

The plan includes approximately $318 million of investments over the next three years for a broad set of projects that will prevent approximately 1.3 billion minutes of customer interruptions and save about $71 million in projected restoration costs over the life of these projects.

AEP Texas operates as one of the fastest growing transmission & distribution utility companies in Texas. Its service territory extends from the Texas panhandle in the north to the Rio Grande Valley in the south, and from Bay City in the east to Presidio in the west. The AEP Texas service territory has the largest coastal exposure of any Texas utility, and is exposed to a number of extreme weather events including hurricanes, wildfires, icing events, wind events, flooding, tornadoes, tropical storms, etc.

For more information, please visit AEPTexas.com

About AEP Texas

AEP Texas, an American Electric Power (Nasdaq: AEP) company, is connected to over one million customers in the deregulated Texas retail electric marketplace. As an energy delivery (wires) company, AEP Texas delivers electricity safely and reliably to homes, businesses and industry across its nearly 100,000 square mile service territory in south and west Texas. AEP Texas also builds new power lines, restores service following outages and reads the meters via advanced meter technology for retail electric providers (REPs) throughout its service territory. The company also connects or disconnects service upon orders from the REPs. Connect with AEP Texas at AEPTexas.com, on Facebook and on X @aeptexas.

 

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SOURCE AEP Texas

FAQ

What is the total investment in AEP Texas's new three-year infrastructure plan?

AEP Texas is investing $318 million over three years to improve infrastructure resilience and prevent service interruptions.

How much will AEP's infrastructure plan save in restoration costs?

The infrastructure improvements are expected to save approximately $71 million in projected restoration costs over the lifetime of the projects.

How many customer interruption minutes will AEP Texas's new plan prevent?

The plan is projected to prevent approximately 1.3 billion minutes of customer interruptions.

What percentage of AEP Texas's resiliency plan involves asset replacement?

Approximately 80% of the resiliency plan involves replacing aging assets with newer, more weather-resistant equipment.

How many customers does AEP Texas serve in its service territory?

AEP Texas serves over one million customers across its nearly 100,000 square mile service territory in south and west Texas.