Under the contract, Siemens will install new control and protection technologies, including Simatic TDC controls to facilitate power exchange between the Electric Reliability Council of Texas (ERCOT) and Southwest Power Pool networks.
Siemens will also install new harmonic filters and shunt reactors at the station to maintain reliable power supply.
The project also includes replacement of cooling, heating and ventilation systems.
Siemens Transmission Solutions vice-president Brian Gemmell said: "Modernizing these critical HVDC systems allows AEP to provide more reliable, consistent power to their customers in the South."
Work under the contract, which is Siemens’ first mid-life control and protection HVDC upgrade in the US, is scheduled to be completed by May 2017.