Entergy Texas Wins Approval For Major Transmission Project And $200M Grant To Strengthen Power Grid

Southeast Texas continues to grow rapidly as more families and businesses move into the region, making it one of the fastest-developing areas in the country. To meet the increasing demand for electricity and ensure reliable service, Entergy Texas is moving ahead with a major transmission project while also making use of state funding to strengthen the grid and improve overall resiliency.

The Public Utility Commission of Texas has approved the Southeast Texas Area Reliability Project, also known as SETEX, and has determined the route where the transmission line will be built. In addition, Entergy Texas has been awarded approximately $200 million from the Texas Energy Fund. This funding will allow the company to move forward with projects focused on upgrading and replacing equipment across its service area, with the goal of building a more resilient electrical system while keeping costs affordable for customers.

According to Eliecer Viamontes, CEO of Entergy Texas, the approval of the project and the support through state funding demonstrate the company’s dedication to strengthening the grid and maintaining affordability. He emphasized that growth in Southeast Texas is creating new opportunities, and Entergy Texas is committed to building a reliable power system that supports both long-term economic development and the region’s future energy needs.

The SETEX transmission line forms a central part of Entergy Texas’s Southeast Texas Energy Plan, known as STEP Ahead. It will involve the construction of a 500-kilovolt line connecting the new Babel Switching Station in Newton County to the Running Bear Substation in Montgomery County. The line will stretch 145 miles and cross through Jasper, Montgomery, Newton, Polk, San Jacinto, Trinity, Tyler, and Walker counties.

This project is expected to provide a number of benefits, including supplying reliable power to communities experiencing rapid growth, reducing the chances of widespread outages during hurricanes or winter storms, and helping local economies attract employers and create jobs. It will also improve reliability for the wider Midcontinent Independent System Operator (MISO) network and ensure compliance with federally mandated North American Electric Reliability Corporation standards.

Entergy Texas operates within MISO, which oversees energy planning across 15 U.S. states and the Canadian province of Manitoba. Through MISO’s long-range planning process, SETEX was identified as a critical project for maintaining reliability and affordability as demand for electricity continues to rise. Field surveys for SETEX will begin in the coming months, followed by engineering and procurement in 2026. Construction of the new line and substations will start in 2027, with the project scheduled to be fully operational by the end of 2029.

Alongside this project, Entergy Texas is also moving forward with efforts supported by the Texas Energy Fund. Earlier this year, Phase I of the company’s Future Ready Resilience Plan was approved, and the funding awarded by the PUCT will support additional improvements. With the $200 million grant, Entergy Texas plans to strengthen more than 9,000 structures and harden around 400 miles of transmission and distribution lines. These improvements are designed to help the grid better withstand severe weather events such as hurricanes, ice storms, and wildfires.

Importantly, these upgrades will be carried out at no additional cost to customers, further reducing the length and impact of outages when extreme conditions occur. Together, the SETEX transmission line and the Texas Energy Fund upgrades represent major steps toward building a stronger, more resilient grid for Southeast Texas. These investments will help ensure reliable, affordable energy for the region’s growing population while preparing the electrical system to handle future challenges.