AUSTIN — The Lower Colorado River Authority approved its largest investment plan to date Wednesday, committing $1.8 billion in capital investments and a $656 million operating budget for fiscal year 2027 to support Texas’ growing demand for electricity, water and broadband infrastructure.
The plan comes as Texas continues to lead the nation in population growth and job creation.
LCRA, which manages the lower Colorado River and the six Highland Lakes, provides wholesale electricity to Central Texas cooperatives and small towns and operates one of the state’s largest transmission networks.
According to the authority, the $1.8 billion capital program will be funded primarily through LCRA revenues and debt, continuing a funding model used since its creation in 1934 that does not rely on state appropriations.
The business plan projects significant growth in electricity demand across the Electric Reliability Council of Texas region through 2031, with water needs expected to increase as well.
Power
LCRA officials said the new Timmerman Power Plant in Caldwell County is helping meet increasing demand for reliable, dispatchable power. The plant’s first unit began operating in 2025, and a second unit came online last month.
LCRA Transmission Services Corporation also plans to invest about $8.6 billion in transmission infrastructure over the next five years to improve reliability and resilience of the electric grid.
Water
LCRA expanded regional water supplies last year with the addition of Arbuckle Reservoir in Wharton County and is studying the possibility of another reservoir in the lower basin.
Its water division plans to invest $153 million over the next five years in water supply development projects and additional funding for dam rehabilitation efforts intended to maintain safe operations.
Broadband
LCRA also plans to continue expanding telecommunications infrastructure through upgrades to its fiber network and radio system.
Among the projects underway is a partnership with the Kerrville Public Utility Board to develop telecommunications infrastructure supporting a flood warning system in Kerr County.
Officials said the FY 2027 business and capital plan is intended to address long-term population growth through expanded power generation, water resources and connectivity.
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