Governor Greg Abbott Announces Texas Energy Fund Grant To Strengthen Electric Reliability In East Texas

TEXAS, June 2 - June 2, 2026 | Austin, Texas | Press Release

Governor Greg Abbott today announced the first agreement under the Texas Energy Fund (TxEF) Outside of ERCOT Grant Program (OEGP) with Sam Houston Electric Cooperative. The grant funds a project that will replace and upgrade nearly 10,000 electric poles in East Texas and strengthen other equipment to ensure electric reliability for more than 38,000 Texas consumers.

“The Texas Energy Fund delivers real results for Texans and strengthens the electric systems that families, businesses, and communities depend on,” said Governor Greg Abbott. “This grant to Sam Houston Electric Cooperative will replace thousands of vulnerable utility poles to better withstand severe weather and ensure a more reliable and resilient grid in East Texas.”

“Texans in every corner of our state expect and deserve reliable electricity,” said PUCT Chairman Thomas Gleeson. “The Outside-ERCOT Grant Program is delivering concrete improvements for consumers both in and outside the ERCOT footprint. The Texas Energy Fund continues to deliver its promise of strengthening reliability across the entire state.”

“As a not-for-profit electric cooperative, Sam Houston EC is honored to receive this grant to reinforce our system on behalf of our consumer-members,” said Sam Houston EC CEO Doug Turk. “Over the past decade, Sam Houston EC has strategically replaced poles to improve the strength of its electricity distribution system. This grant will boost the Cooperative’s ongoing grid-hardening and resiliency program.”

The project, named Steel Anchor, will replace 9,838 vulnerable wooden utility poles with stronger steel and ductile iron poles across portions of Montgomery, Liberty, and Hardin counties. The upgrades will improve the reliability and resilience of the electric distribution system in some of the most hurricane-prone areas of Sam Houston Electric Cooperative’s service territory.

The PUCT approved a grant award of approximately $73 million for the project through the OEGP, which provides funding for electric infrastructure projects that improve reliability and resiliency for Texans served by electric utilities outside the ERCOT region.

The Steel Anchor project is expected to be completed by June 2031.

The OEGP is one of four TxEF programs. More information about these programs is available on the PUCT’s website.