Governor Abbott Announces $113 Million In Grants For Electric Reliability In The Panhandle And South Plains

June 30, 2026 | Austin, Texas | Press Release

Governor Greg Abbott today announced $113 million in Texas Energy Fund (TxEF) grants to strengthen reliability for Southwestern Public Service Company’s (SPS) customers in the Texas Panhandle and South Plains. SPS is a subsidiary of Xcel Energy. The grants will help fund projects to repair or replace power poles, increase protections in higher-risk areas of the electric distribution system, and improve system monitoring.

"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." 

“Each reliability project complements the next, creating multiple layers of protection for consumers and businesses,” said Public Utility Commission of Texas (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.”  

“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.”

The projects will benefit customers in the SPS Texas service territory, including the Panhandle and South Plains regions.

Included in the reliability projects will be a drone-based pole inspection program. More than 273,000 poles in SPS system will be assessed to identify and correct any issues. SPS will also deploy pole-mounted sensors to continuously monitor conditions along distribution lines. This will detect and assess hazards in real-time, improving location accuracy and faster response times. Additional project elements will further upgrade and modernize equipment that minimizes outage risks and improves safety.

The PUCT administers the TxEF Outside ERCOT Grant Program, which provides funding for projects that improve electric reliability and resiliency for Texans served by electric utilities outside the ERCOT region. More information on this and other TxEF programs is available on the PUCT’s website.