The Lower Colorado River Authority Board of Directors on Wednesday approved a business plan totaling $591.4 million and authorized about $1.63 billion in capital investments for fiscal year 2026 to support energy, water, and public service projects across Central Texas.
The LCRA is the primary wholesale electricity provider in Central Texas and manages the lower Colorado River and six Highland Lakes. Its Transmission Services Corporation is among the largest electric transmission providers in the state.
“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 LCRA Board Chair Stephen F. Cooper. “LCRA is proud to serve our growing region by proactively anticipating and responding to growth.”
Capital projects will include power generation and infrastructure improvements, dam rehabilitation, water supply development, and park system enhancements. LCRA sells wholesale electricity through longterm contracts to electric cooperatives and small towns throughout Central Texas.
To meet increasing demand for reliable power, LCRA is constructing two natural gas-fired generating units at its Timmerman Power Plant in Caldwell County, with the first unit expected online later this year.
LCRA Transmission Services Corporation plans to invest roughly $5.9 billion over five years in new transmission facilities and upgrades to improve reliability, accommodate growth, and connect new generators to the state’s power grid. The authority is also expanding broadband access by leveraging excess capacity in its fiber infrastructure.
On the water front, LCRA is focusing on conserving and extending water supplies and developing new regional projects. The Arbuckle Reservoir in Wharton County — the first new water supply reservoir downstream of the Highland Lakes in decades — is expected to be operational later this year.
Over the next five years, LCRA plans to invest about $159.5 million in new water supply projects and $44.4 million in dam rehabilitation (excluding hydroelectric- related projects) to ensure safe and effective dam operations.
“LCRA is continuing to make significant investments in all our areas of business, including power, water, broadband and transmission,” said LCRA General Manager Phil Wilson. “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 receives no state appropriations and does not levy taxes. It is funded entirely by revenues from its business operations.
The fiscal year 2026 begins July 1. More information is available at www.lcra.org/ about/financial-highlights/ business-plan/.
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