LCRA Board approves business and capital plans for fiscal year 2026
LCRA to invest about $1.63 billion in capital projects over the next year to support Texas during period of unprecedented challenges, opportunities
May 21, 2025
The Lower Colorado River Authority is the primary wholesale provider of electricity in Central Texas and manages the lower Colorado River and six Highland Lakes. LCRA Transmission Services Corporation is one of the largest electric transmission service providers in Texas.
“Our business and capital plans outline how LCRA plans to meet the tremendous growth in Texas and tackle the unprecedented challenges and opportunities that come with it,” said Stephen F. Cooper, chair of the Board of Directors. “LCRA is proud to serve our growing region by proactively anticipating and responding to growth.”
Capital projects include power generation and infrastructure improvement, dam rehabilitation, and water supply projects, as well as projects for LCRA’s park system. As one of the largest public power providers in the state, LCRA provides power for electric cooperatives and small towns in Central Texas by selling wholesale electricity through long-term contracts with retail utilities.
LCRA is helping meet the increasing need for reliable, dispatchable power in Texas by building two electric generating units at LCRA’s natural gas-fired peaker Timmerman Power Plant in Caldwell County. The first unit is expected to be online later this year.
LCRA TSC plans to invest about $5.9 billion over the next five years to build new transmission facilities and improve existing ones. LCRA TSC will undertake numerous projects to increase reliability, meet existing and projected needs for electricity, and connect new electric generators to the state’s power grid. In addition, under authority from the Texas Legislature, LCRA is implementing new ways to help connect people to broadband services by using excess capacity in LCRA’s fiber infrastructure.
On the water side, LCRA is taking significant actions to conserve and extend the region’s water supplies, as well as developing new regional water supply projects. LCRA’s biggest project underway is the Arbuckle Reservoir in Wharton County, the first significant new water supply reservoir in the lower Colorado River basin in decades and the first water storage facility LCRA has downstream of the Highland Lakes. Arbuckle is expected to be online later this year.
LCRA plans to invest about $159.5 million over the next five years for the development of new water supply projects and will invest about $44.4 million in dam rehabilitation projects – excluding projects strictly for hydroelectric power facilities – over the next five years for the continued safe and effective operation of its dams.
“LCRA is continuing to make significant investments in all our areas of business, including power, water, broadband and transmission,” LCRA General Manager Phil Wilson said. “These investments align with our mission and vision and demonstrate our commitment to finding strategic and innovative solutions to help meet the needs of current and future generations of Texans in our growing state.”
LCRA does not receive state appropriations or have the ability to levy taxes. LCRA is funded by the revenues its businesses generate.
LCRA’s 2026 fiscal year begins July 1. The FY 2026 LCRA business and capital plans are available at www.lcra.org/about/financial-highlights/business-plan/.
About LCRA
The Lower Colorado River Authority serves customers and communities throughout Texas by managing the lower Colorado River; generating and transmitting electric power; providing a clean, reliable water supply; and offering outdoor adventures at more than 40 parks along the Colorado River from the Texas Hill Country to the Gulf Coast. LCRA and its employees are committed to fulfilling our mission to enhance the quality of life of the Texans we serve through water stewardship, energy and community service. LCRA was created by the Texas Legislature in 1934 and receives no state appropriations.
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