AEP Texas is buying land in South McAllen, but its plan to reduce power outages might stir up a fight

Now that American Electric Power Texas is investing in its electric grid infrastructure, the company is seeking to purchase land in key locations across McAllen. 

The goal is to reduce the frequency of power outages and improve the resiliency of its network. The Corpus Christi-based company is already a significant landowner in Hidalgo County, with over one hundred lots in its portfolio, according to the Hidalgo County Appraisal District, as analyzed by the Rio Grande Valley Business Journal. 

That’s because AEP Texas is an electric transmission company, a regulated utility provider that owns, operates, and maintains electric substations, which are connected to high-voltage power lines across its network, including the Rio Grande Valley. 

The appraised value of real estate owned by AEP Texas in Hidalgo County is more than $35 million across 103 lots, appraisal district records show. When personal property, or the value of its physical infrastructure, is included, AEP Texas was the largest taxpayer in Hidalgo County in 2024. The taxable value of its holdings was $607 million in Hidalgo County last year, according to the annual appraisal district report.