LCRA commits $1.8 billion for power, water and broadband as Texas continues to grow

Historic transmission investment supports grid reliability and resilience

May 21, 2026

Key Takeaways

• LCRA’s Board of Directors approved a $656 million operating budget and $1.8 billion in capital investments for fiscal year 2027, funding new water supply development, power generation and broadband expansion.
• LCRA Transmission Services Corporation plans to invest about $8.6 billion in transmission projects over the next five years to support reliability and resilience of the electric grid.
• A recent milestone: Timmerman Power Plant’s second unit came online last month and ahead of schedule, adding reliable, readily dispatchable power to the Texas grid.

AUSTIN, Texas — Texas has led the nation in population growth and job creation for years. The Lower Colorado River Authority, the backbone of a large swath of Texas energy and water infrastructure, just approved its largest investment plan to date to help Texas keep pace with its continued growth.

On Wednesday, LCRA’s Board of Directors approved a $656 million operating budget and $1.8 billion in capital investments for FY 2027. The $1.8 billion in capital investments is funded primarily through LCRA’s own revenues and debt, consistent with the organization’s operations since 1934, which have relied on no state appropriations.

LCRA manages the lower Colorado River and six Highland Lakes, provides wholesale electricity to Central Texas cooperatives and small towns, and operates one of the state’s largest transmission networks.

The business plan projects that power demand across ERCOT will grow significantly through 2031. Water needs are rising alongside power demand. LCRA’s plan is built for where Texas is going.

What’s in the plan

• Power: LCRA’s new Timmerman Power Plant in Caldwell County is helping meet the increasing need for reliable, dispatchable power in Texas. The plant’s first unit began providing power to the state’s grid in 2025, and a second unit came online last month. LCRA also continues to build and improve transmission facilities. LCRA TSC expects to invest about $8.6 billion in transmission over the next five years as the state continues to grow.

• Water: LCRA added to the region’s water supply last year with the new Arbuckle Reservoir in Wharton County and is exploring building another reservoir in the lower basin to increase water supplies. LCRA’s Water business plans to invest $153 million over the next five years to develop new water supply projects and tens of millions in dam rehabilitation projects over the same period to help ensure the continued safe and effective operation of LCRA dams.

• Broadband: Over the next five years, LCRA is helping connect communities across Texas to critically needed broadband services by making strategic investments to upgrade and expand its fiber network and radio system. LCRA is working with the Kerrville Public Utility Board to build telecommunication infrastructure for a flood warning system in Kerr County, where construction has begun.

Texas added millions of residents this decade. LCRA’s FY 2027 Business and Capital Plan is its operational answer to that reality: delivering more power, more water and more connectivity.

Read the full plan: lcra.org/about/financial-highlights/business-plan

Contact Info

About LCRA

The Lower Colorado River Authority serves communities across Texas by managing the lower Colorado River, generating and transmitting wholesale electric power, providing clean water supplies, operating telecommunications infrastructure, and owning parks for outdoor recreation. LCRA delivers power, water and infrastructure that support the region’s growth and quality of life. 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. Created by the Texas Legislature in 1934, LCRA receives no state appropriations.