The U.S. Department of Energy said on Oct. 16, 2026, that it intends to use up to $50 million in Defense Production Act (DPA) funding for a transmission project titled "Grid Enhancing Technologies for Virginia & West Virginia Large Load Growth," according to a DOE announcement. Virginia Energy leads the project in coordination with Appalachian Power, Potomac Edison and regional partners. DOE estimates the work would add 290 MW of transmission capacity across Appalachian Power's Virginia system, one to four years faster than conventional transmission upgrades.

On the same day, Appalachian Power (APCo) said it will serve as the primary subrecipient of a separate $40 million DOE award to the Commonwealth of Virginia under the department's SPARK program. Three days earlier, on Oct. 13, DOE announced its intent to support two Tennessee Valley Authority projects whose combined value it put at about $741 million.

The DPA project

DOE said $1 billion in federal funding has been appropriated for energy-related projects deemed critical to national security, and that Presidential Determination No. 2026-10 identifies transmission lines and conductors, substations, and power-control and protection equipment as essential to national defense. The department described the Virginia work as a proposed 48-month project that would deploy advanced reconductoring and dynamic line rating along existing transmission corridors.

According to DOE, the project will demonstrate how advanced conductors and real-time transmission monitoring can expand capacity using existing infrastructure. The department said the improvements are intended to make the grid more reliable, lower electricity costs and keep power available to communities, businesses, military operations and defense-related industries in the region.

"A stronger electric grid doesn't always mean building more power lines. Sometimes it means making better use of the ones we already have," Assistant Secretary Katie Jereza of DOE's Office of Electricity said in the release. Energy Secretary Chris Wright said: "By deploying Defense Production Act funding to secure and expand electricity access in Virginia and West Virginia, the Trump Administration is strengthening the nation's energy security for decades to come."

The SPARK award in the Lynchburg area

The $40 million award is distinct from the DPA funding. SPARK stands for Speed to Power through Accelerated Reconductoring and other Key Advanced Transmission Technology Upgrades. According to Appalachian Power's announcement, the award goes to the Commonwealth of Virginia, with APCo as primary subrecipient. The scope has two parts:

  • An upgrade of about 14 miles of 138-kV transmission line in the Lynchburg area to increase capacity and improve reliability.
  • Dynamic line rating, which uses real-time conditions to maximize the capacity of existing lines, on four lines: Museville–Smith Mountain, Fieldale–Thornton, Axton–AE2-140 and Claytor–South Christiansburg.

"This funding allows us to strengthen the grid and expand capacity while making the most of the infrastructure already serving our communities," Brian Abraham, APCo's president and chief operating officer, said in the company's release. The release also said APCo's parent, American Electric Power, has already secured federal loans and grants expected to provide nearly $1.6 billion in customer benefits, a figure that covers AEP's federal funding broadly rather than this award alone.

DOE's 290 MW estimate belongs to the DPA project; it is not a figure for the SPARK work.

Context: TVA's awards three days earlier

The Virginia announcements followed a larger DOE package for the Tennessee Valley Authority on Oct. 13. According to DOE's release, a TVA award under the Grid Resilience and Innovation Partnerships (GRIP) program totals about $581 million, including $250 million in federal funding and about $331 million in applicant cost share, for 84 transmission and distribution projects across eight states expected to add about 2.5 GW of grid capacity. A separate $159.7 million TVA SPARK project would upgrade about 125 miles of existing lines in Tennessee, Alabama and North Carolina and is expected to add about 1,900 MW. DOE put the combined value of the two at about $741 million, including about $329.8 million in federal support, and said they are expected to add more than 4,300 MW.

"America's electric grid cannot become a roadblock to economic growth," Jereza said in that release. Deputy Secretary James P. Danly said the country "must have the generation and transmission infrastructure necessary to support our rapidly growing economy and its electricity needs."

Across the two announcements, DOE is drawing on three programs: GRIP, SPARK and the DPA. The Virginia DPA project is the one that names large-load growth in its title.

What Happens Next

The DPA funding is an announced intent for a proposed 48-month project; DOE has not published a finalized award or start date. For the TVA projects, DOE said final federal funding, scope and schedules remain subject to executed agreements and applicable environmental, permitting, regulatory and Tribal reviews. No construction or in-service schedule has been published for the Lynchburg-area 138-kV upgrade or the four dynamic line rating installations.

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