SHREVEPORT, La. — The U.S. Department of Energy has awarded Southwestern Electric Power Co. (SWEPCO) a $29.8 million grant to support upgrades at the Flint Creek Power Plant in Gentry, Arkansas, the utility announced Friday.
The funding will help finance a $74 million modernization project at the coal-fired generating facility, which serves as part of SWEPCO’s generation fleet supplying electricity to more than 558,000 customers across Arkansas, Louisiana and Texas.
SWEPCO said the project is expected to take approximately 39 months and will focus on increasing power output, improving efficiency, replacing aging equipment and modernizing electrical systems.
According to the company, turbine upgrades will allow Flint Creek to generate additional electricity without constructing new generation resources. The improvements are also expected to increase megawatt output through greater turbine efficiency while extending the life of existing infrastructure.
The project includes replacement of aging components intended to improve operational safety and reliability, as well as installation of modern electrical equipment designed to reduce outage risks during periods of high demand and extreme weather.
SWEPCO President and Chief Operating Officer Brett Mattison said the federal funding will help reduce costs for customers while supporting investments in reliability.
“By leveraging federal funding, we’re able to make critical investments in reliability and efficiency while helping avoid nearly $30 million in costs that would otherwise impact the communities we serve,” Mattison said.
Mattison said dispatchable generation resources such as Flint Creek remain important for meeting electricity demand during periods of extreme heat, cold weather and peak usage.
The remaining costs of the project will be shared by SWEPCO and the plant’s co-owner.
The award is part of broader efforts by SWEPCO parent company American Electric Power (AEP) to secure federal funding for grid modernization and infrastructure projects. AEP said it has obtained approximately $391 million in federal grants and a $1.6 billion federal loan for transmission and reliability improvements.
SWEPCO also noted that Texas Gov. Greg Abbott announced this week that the utility’s customers would benefit from a separate $200 million grant from the Texas Energy Fund.
Scott Osterholt, AEP’s vice president of grants and loan programs, said the Flint Creek upgrades are expected to increase generating capacity without increasing environmental emissions.
“The DOE award supports upgrades at Flint Creek that will increase megawatt output without increasing environmental emissions,” Osterholt said. “This is an important step as SWEPCO continues to balance affordability, reliability, and environmental responsibility.”
SWEPCO, headquartered in Shreveport, is a subsidiary of American Electric Power and provides electric service to customers in Arkansas, Louisiana and Texas.