The U.S. Department of Energy announced on October 16, 2026 that it intends to put up to $50 million in Defense Production Act (DPA) funding into a transmission project in Virginia and West Virginia. The project is meant to add an estimated 290 megawatts of transmission capacity across Appalachian Power's Virginia system.
What the project would do
The project is called Grid Enhancing Technologies for Virginia & West Virginia Large Load Growth. Virginia Energy leads it, in coordination with Appalachian Power, Potomac Edison and regional partners. DOE describes it as a proposed 48-month effort.
Instead of building new lines, the project would use advanced reconductoring and Dynamic Line Rating technologies along existing transmission corridors. DOE says that approach can add capacity one to four years faster than conventional transmission upgrades. The department says the work is intended to reduce congestion and support growing electricity demand across the region.
DOE also says the upgrades would make the grid more reliable and lower electricity costs, and would help communities, businesses, military operations and defense-related industries have dependable power during periods of high demand or disruption.
Where the money comes from
DOE says $1 billion in federal funding has been appropriated for energy projects deemed critical to national security. Presidential Determination No. 2026-10 names transmission lines and conductors, substations, and power-control and protection equipment as essential to national defense. DOE credits the passage of the Working Families Tax Cut for the appropriation.
What officials said
Energy Secretary Chris Wright said the funding would secure and expand electricity access in the two states and strengthen national energy security.
Office of Electricity Assistant Secretary Katie Jereza framed the approach in terms of existing assets. "Sometimes it means making better use of the ones we already have," she said, referring to power lines. She added that the investment would help the grid meet growing demand from families, businesses and national defense.
DOE says the project will demonstrate how advanced conductors and real-time transmission monitoring can expand capacity on existing infrastructure.
