Entergy Texas advances STEP Ahead plan to meet Southeast Texas' growing power needs

Entergy Texas (NYSE:ETR) announced PUCT approval of the Cypress to Legend 500-kV transmission line, a ~41-mile project through Hardin and Jefferson counties, completing all major 2025 approvals under its STEP Ahead plan.

Rhea-AI Summary

Entergy Texas (NYSE:ETR) announced PUCT approval of the Cypress to Legend 500-kV transmission line, a ~41-mile project through Hardin and Jefferson counties, completing all major 2025 approvals under its STEP Ahead plan.

Key 2025 highlights include a $137 million Phase I resiliency investment, new Legend and Lone Star 24/7 dispatchable power stations, the SETEX 500-kV line, the Legend–Sandling 230-kV and Southline–Jacinto 138-kV lines, and a $200 million Texas Energy Fund grant. Construction activity is slated to ramp in 2026 to support reliability, growth, and jobs while aiming to limit rate impacts for customers.

Positive

• PUCT approval completed for all major 2025 STEP Ahead projects
• $137 million Phase I resiliency investment to harden the grid
• $200 million Texas Energy Fund grant provided at no added cost to customers
• New 24/7 dispatchable Legend and Lone Star power stations to add generation capacity
• Projects support thousands of construction jobs across the region

Negative

• None.

Argus Dec 12 session

-1.04% close to close Open Argus

Details

News Market Reaction – ETR

On Dec 12, the day this news came out, ETR closed 1.04% below the previous close.

Data tracked by StockTitan Argus for the Dec 12 session.

Market Context

This announcement highlights continued execution of Entergy Texas’ STEP Ahead plan, including PUCT a...

Analysis

This announcement highlights continued execution of Entergy Texas’ STEP Ahead plan, including PUCT approval for the Cypress–Legend 500-kV line and a $137 million resiliency effort. Together with prior moves like adding about 1,500 MW of new generation and raising the dividend to $0.64 per share, the company underscores a focus on reliability and long-term growth. Investors may track project milestones, regulatory relationships and future funding sources as key markers of ongoing progress.

Key Figures

Current share price: $93.32 Texas resiliency plan: $137 million Texas Energy Fund grant: $200 million +5 more

Current share price

$93.32

Prior to STEP Ahead Texas approval news

Texas resiliency plan

$137 million

Texas Future Ready Resiliency Plan Phase I grid hardening

Texas Energy Fund grant

$200 million

State funding to bolster grid resilience at no added customer cost

Cypress–Legend line length

41 miles

500-kV transmission line through Hardin and Jefferson counties

Transmission voltage

500 kV

Cypress to Legend and SETEX backbone transmission projects

New generation capacity

1,500 MW

Entergy Louisiana combined-cycle plants announced Dec 1, 2025

Construction jobs

5,000 jobs

Jobs supported by Louisiana generation projects for nearby data center

Quarterly dividend

$0.64 per share

Dividend level after $0.04 increase announced Oct 31, 2025

Historical Context

5 past events · Latest: Dec 01

5 events

1. Dec 01

   Generation expansion

   24h Move

   -3.0%

   Announced two CCGT plants adding about 1,500 MW in Louisiana.

2. Nov 06

   Management transition

   24h Move

   +1.6%

   General counsel retirement and succession with continued leadership continuity.

3. Nov 05

   Investor conference

   24h Move

   -0.6%

   Participation in EEI Financial Conference and posting of meeting materials.

4. Nov 03

   Board appointment

   24h Move

   +0.8%

   Elected retired admiral with nuclear operations experience to board committees.

5. Oct 31

   Dividend increase

   24h Move

   +0.0%

   Raised quarterly dividend to $0.64 per share, continuing payouts since 1988.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

transmission line, dispatchable, LNG

3 terms

transmission line technical

"approved Entergy Texas' Cypress to Legend 500-kV transmission line, a project spanning"

A transmission line is the infrastructure—wires, towers, ducts or cables—that carries electricity or data over long distances from producers to users or networks. Investors care because these lines determine how reliably and cheaply power or communications can be delivered; like a highway for goods, congested or aging lines can cause delays, extra costs, outages or regulatory expenses that affect revenue, maintenance needs and future growth prospects.

dispatchable technical

"Legend and Lone Star power stations: Adding new, 24/7 dispatchable power generation"

Dispatchable describes an energy source or power system that can be turned on, off, or adjusted on demand to match electricity needs. Investors care because dispatchable assets act like a reliably available backup—similar to a faucet you can open when the tap runs dry—helping stabilize the grid, earn steady revenue in capacity or reserve markets, and reduce the risk of outages that can disrupt other, less-flexible generation.

LNG technical

"including Sempra's Port Arthur LNG facility.Southline-Jacinto 138-kV transmission"

Liquefied natural gas (LNG) is natural gas that has been cooled into a liquid so it takes up far less space for transport and storage, like turning a bulky bundle into a compact package for shipping. Investors care because LNG enables gas trade across regions without pipelines, so changes in production, export capacity, shipping, or demand can quickly affect energy company revenues, infrastructure operators and commodity prices, amplifying both opportunity and risk.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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PUCT approves Cypress to Legend 500 kV transmission line, marking completion of all major project approvals for the year – to benefit all customers 

THE WOODLANDS, Texas, Dec. 12, 2025 /PRNewswire/ -- As Southeast Texas experiences rapid growth, Entergy Texas is investing in a stronger, more reliable power grid to support the region's expanding communities and economy. Through its long-term Southeast Texas Energy Plan, known as STEP Ahead, the company is advancing major projects that will enhance reliability, and strengthen the grid to ensure the region is prepared for future energy demands — all while keeping rates as low as possible.

On Friday, the Public Utility Commission of Texas or PUCT, approved Entergy Texas' Cypress to Legend 500-kV transmission line, a project spanning approximately 41 miles through Hardin and Jefferson counties. This decision follows the recent approval of the Southline-Jacinto transmission line and marks the completion of all major project approvals Entergy Texas planned for this year. Together, these projects will help strengthen the grid to meet the power needs of our growing region and improve the system to be more reliable and resilient.

"These projects are about positioning Southeast Texas for the growth ahead and supporting job creation," said Eliecer Viamontes, CEO of Entergy Texas. "By planning ahead and working closely with local leaders and community partners, our team is delivering on our commitment to strengthen the power grid, while keeping costs as low as possible for all of our customers."

With today's approval, Entergy Texas has secured all key 2025 approvals under STEP Ahead — signifying strong progress in moving major reliability projects from planning into construction.

Highlights this year that benefit Entergy Texas' customers include:

• Texas Future Ready Resiliency Plan, Phase I: A $137 million effort to harden the grid against extreme weather, lower storm restoration costs and reduce outages over time.
• Legend and Lone Star power stations: Adding new, 24/7 dispatchable power generation resources to help meeting growing energy needs and support thousands of construction jobs across the region.
• SETEX 500-kV transmission line: Improving reliability and routing power efficiently to fast-growing communities across Southeast Texas.
• Texas Energy Fund grant: $200 million in state funding to bolster grid resilience and reliability at no added cost to customers.
• Legend–Sandling 230-kV transmission line: Providing essential power to support industrial growth, including Sempra's Port Arthur LNG facility.
• Southline-Jacinto 138-kV transmission line: Supporting new development and everyday electricity demands as more families and businesses move into our region.

As these projects move into construction and more work begins in 2026, Entergy Texas will continue focusing on delivering energy that is affordable, reliable, and sustainable. Through long-term planning, strategic investments and close collaboration with state and local partners, we're committed to staying a STEP Ahead of Southeast Texas' growing energy needs.

To learn more about STEP Ahead, visit EntergyTexasStepAhead.com.

About Entergy Texas
Entergy Texas provides electricity to approximately 524,000 customers in 27 counties. Entergy Texas is a subsidiary of Entergy Corporation. Entergy produces, transmits and distributes electricity to power life for 3 million customers through our operating companies in Arkansas, Louisiana, Mississippi and Texas. Its customers are connected to the Midcontinent Independent System Operator Inc. power grid, which is a regional transmission organization responsible for administering the transmission systems of member utilities in 15 states stretching across the central region of the United States and Manitoba, Canada. We're investing for growth and improved reliability and resilience of our energy system while working to keep energy rates affordable for our customers. We're also investing in cleaner energy generation like modern natural gas, nuclear and renewable energy. A nationally recognized leader in sustainability and corporate citizenship, Entergy delivers more than $100 million in economic benefits each year to the communities we serve through philanthropy, volunteerism and advocacy. Entergy is a Fortune 500 company headquartered in New Orleans, Louisiana, and has approximately 12,000 employees. Learn more at EntergyTexas.com and connect with @EntergyTX on social media.

View original content to download multimedia:https://www.prnewswire.com/news-releases/entergy-texas-advances-step-ahead-plan-to-meet-southeast-texas-growing-power-needs-302640373.html

SOURCE Entergy Corporation

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Entergy Texas announce on December 12, 2025 about the Cypress to Legend line (ETR)?

Entergy Texas said the PUCT approved the Cypress to Legend 500-kV, ~41-mile transmission line, completing its key 2025 STEP Ahead approvals.

How much is Entergy Texas investing in Phase I of the Texas Future Ready Resiliency Plan (ETR)?

Phase I is a $137 million effort to harden the grid against extreme weather and reduce outages over time.

What state funding did Entergy Texas secure under STEP Ahead (ETR)?

Entergy Texas secured a $200 million Texas Energy Fund grant to bolster grid resilience at no added cost to customers.

When will STEP Ahead projects move into construction and what is the timeline (ETR)?

The company said projects will move into construction and more work will begin in 2026.

Which transmission and generation projects were named in Entergy Texas' STEP Ahead plan (ETR)?

Named projects include the Cypress–Legend 500-kV line, SETEX 500-kV line, Legend–Sandling 230-kV line, Southline–Jacinto 138-kV line, and Legend and Lone Star power stations.