AEP lands up to $3.26B federal loan to modernise Texas grid
What's the deal? American Electric Power has secured a loan of up to $3.26 billion from the US Department of Energy's Office of Energy Dominance FinancingDealroom has a profile for this one. Try Dealroom →. The debt funding goes to its AEP TexasDealroom has a profile for this one. Try Dealroom → subsidiary to strengthen and modernise the Texas electricity grid.
What's the endgame? AEP is an electric utility operating power generation, transmission, and distribution assets. The investment aims to improve grid reliability and support rising power demand from households, businesses, and energy-intensive infrastructure.
Why now? Texas faces growing strain from data centres and other heavy power users. The financing is expected to lower electricity costs for more than one million Texas households and businesses by roughly $685 million over the next 30 years, while supporting job creation.
By the numbers: AEP closed at about $124.23 per share on October 12, 2026, giving it a market capitalisation near $67.77 billion. The stock traded between $112.54 and $140.58 over the past 52 weeks, with a one-month return of 3.15%.
The signal: At $3.26 billion, this ranks among the largest post-IPO debt deals in US energy — above the 96th percentile of comparable rounds. It reflects growing federal backing for grid infrastructure as power demand climbs across the country.
Read more: sg.finance.yahoo.com
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