Entergy Texas secures approval for major transmission investment and $200M in grant funding to strengthen the grid

THE WOODLANDS, TX -- More families and businesses are moving to Southeast Texas every day — making it one of the fastest-growing regions in the nation. To keep up, Entergy Texas is moving forward with a major transmission project while also leveraging grant funding from the Texas Energy Fund to strengthen the grid and improve resiliency across its service territory.

Today, the Public Utility Commission of Texas approved the Southeast Texas Area Reliability Project, better known as SETEX, and determined the route on which Entergy Texas is to build the transmission line. Additionally, the company was also awarded approximately $200 million from the Texas Energy Fund that will enable Entergy Texas to execute projects that will bolster grid resilience by upgrading and replacing equipment across the electrical system while prioritizing customer affordability. Together, these initiatives represent significant steps toward delivering reliable, affordable energy to meet the state’s growing needs.

“Receiving approval for a major transmission project and critical state funding demonstrates to our customers our commitment to further strengthen reliability and resiliency while staying focused on affordability,” said Eliecer Viamontes, CEO of Entergy Texas. “Growth in Southeast Texas is creating incredible opportunities for the communities we serve, and it’s our responsibility to ensure we build a resilient power grid that supports long-term economic expansion and future energy needs.”

Southeast Texas Area Reliability Project (SETEX)

The SETEX transmission line is a key part of the company’s Southeast Texas Energy Plan, also known as STEP Ahead, and includes a new 500-kilovolt transmission line connecting two new stations: Babel Switching Station in Newton County and Running Bear Substation in Montgomery County. The transmission line will span 145 miles through Jasper, Montgomery, Newton, Polk, San Jacinto, Trinity, Tyler and Walker counties.

Here’s how the project benefits customers and communities:

• Builds new transmission infrastructure needed to deliver reliable power to fast-growing communities
• Strengthens the grid and reduces the risk of widespread outages during extreme weather events like hurricanes or winter storms
• Helps communities attract new employers, expand the local economy and create jobs
• Improves service across the broader Midcontinent Independent System Operator transmission network, supporting reliability across the broader region
• Meets federally required North American Electric Reliability Corporation reliability standards, ensuring long-term stability for customers

While the Electric Reliability Council of Texas (ERCOT) serves most Texans, Entergy Texas operates within MISO, a regional transmission organization that oversees energy planning across 15 U.S. states and Manitoba, Canada. SETEX was identified through MISO’s long-range planning process as critical to ensuring compliance with NERC baseline reliability standards and the provision of reliable and cost-effective service as demand continues to grow.

Field surveys for SETEX will begin in the coming months. Final engineering and materials procurement will be a focus in 2026, followed by construction of the new line and substations starting in 2027. The project is expected to be fully energized by the end of 2029. View the transmission route and learn more about the SETEX Area Reliability Project at EntergyTexas.com/transmission/setex.

Texas Energy Fund

Earlier this year, Phase I of the company’s Future Ready Resilience Plan was approved, and Entergy Texas has since pursued opportunities to obtain state grant funding to offset the cost of similar investments for customers. Today, the PUCT awarded Entergy Texas approx. $200 million from the Texas Energy Fund to bolster grid resilience and reliability across our service territory. This is another key milestone to achieving two steps of the company’s Southeast Texas Energy Plan, keeping electric rate’s affordable and protecting the power grid from extreme weather.

With these funds, the company will implement upgrades and replacements across the electrical system to improve resiliency and reliability – decreasing the number of customers impacted and the duration of outages following extreme events.

At no added cost to customers, over 9,000 structures and approx. 400 line-miles of transmission and distribution will be hardened, which are designed to prevent, withstand and mitigate the risks posed by hurricanes, ice storms, wildfires and other severe events.

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