The utility has already deployed more than 500,000 meters under its previous contract that covered about 720,000 meters.
The latest deal will see the Gridstream advanced meters being installed across the transmission and distribution utility’s entire service territory, primarily in rural areas of its service territory of around 100,000 square miles.
Landis+Gyr Systems and Services senior vice president Prasanna Venkatesan said, "The proven success of the Gridstream RF mesh network in rural applications had a big influence on this contract extension."
The deal between both the parties originally began in 2009, with a goal of replacing all meters by 2014.
Gridstream is a single-network communications application for advanced metering, grid automation and consumer energy management applications.
AEP Texas, part of the American Electric Power system, powers more than one million homes and businesses in the state and major cities served include Corpus Christi, Abilene, McAllen, Harlingen, San Angelo, Vernon, Victoria and Laredo.
