Energy Department plans up to $50 million for Virginia, West Virginia grid project

WASHINGTON, Oct 16 — The U.S. Department of Energy (DOE) announced its intent to provide up to $50 million in Defense Production Act (DPA) funding to a Virginia Energy project to expand transmission capacity on existing power lines in Virginia and West Virginia.

DOE said the proposed project will use advanced reconductoring and Dynamic Line Rating technologies along existing transmission corridors. It would add an estimated 290 megawatts of transmission capacity across Appalachian Power's Virginia system, one to four years faster than conventional transmission upgrades, according to the department. Virginia Energy will lead the proposed 48-month project in coordination with Appalachian Power, Potomac Edison and regional partners.

According to DOE, the Working Families Tax Cut appropriated $1 billion in federal funding for energy-related projects deemed critical to national security. The department said Presidential Determination No. 2026-10 identifies transmission lines and conductors, substations, and power-control and protection equipment as essential to national defense.