The Public Utility Commission of Texas’s Thursday approval of a long-term plan to beef up the Permian Basin’s electric grid and make it more than adequate for decades to come was hailed by energy leaders with a sigh that could be heard from here to Austin.
Loaded with power industry jargon, the Electric Reliability Council of Texas’s Permian Basin Reliability Plan gives the PUC enough options during the next number of years that no one yet knows the specifics of what kind of transmission lines will be strung or where they will go.
The Permian Basin Petroleum Association says one question is whether the state is ready to install 765 kilovolt lines instead of 345 kV lines.
“If the state goes with the 765 kV lines they won’t have exactly the same starting and ending points as the 345 kV lines, so ultimately the paths will be subject to further analysis and consideration by the PUC,” PBPA President Ben Shepperd said. “This will obviously impact the timing of the lines going up, but regardless it will be years until they are completed.”
Shepperd said the decision to plan for the region’s existing and long-term electrical transmission needs was unprecedented.
“While other states and countries are turning their backs on domestic energy production, decreasing reliability and increasing costs, Texas is again taking the lead to support the abundant, reliable and affordable energy that America and our allies need,” he said. “We are proud of the investments that our oil and natural gas operators have made to modernize and electrify assets and this reliability plan will benefit all those who live, work and raise their families in the Permian Basin.”
State Rep. Brooks Landgraf, R-Odessa, said the plan outlines the transmission infrastructure investments that are necessary to support the on-going expansion and electrification of the oil and gas industry in West Texas and the growing electricity needs of the region’s local communities.
“House Bill 5066, passed by the Texas Legislature last year and signed into law by Gov. Greg Abbott, requires that the plan address extending transmission service into areas where mineral resources have been found, address increasing available capacity to meet forecasted load and provide available infrastructure to reduce interconnection times in areas without access to transmission service,” Landgraf said.
He noted ERCOT’s forecast that demand in the region will grow to approximately 26 gigawatts by 2038, which is equivalent to almost one-third of the current summer demand of the entire ERCOT system.
Texas Oil & Gas Association President Todd Staples said from Austin that the decision reinforces the Lone Star State’s ongoing commitment toward fostering economic growth, creating jobs and maintaining energy independence.
“We appreciate the PUC commissioners and staff, legislative leaders, Rep. Charlie Geren of Fort Worth, Sen. Charles Schwertner of Georgetown, stakeholders and ERCOT for the work that has been done to complete this plan and move us forward to this vital transmission buildout that will help ensure that oil and natural gas continue to be responsibly produced for years to come,” Staples said.
Texas Alliance of Energy Producers President Karr Ingham of Amarillo said the full implementation of Geren’s HB 5066 will be extremely gratifying.
“Our members and operators in West Texas have long needed relief through additional electrification in the Permian Basin and we are pleased that this decision gets us even closer to that long-awaited goal,” Ingham said. “We look forward to continuing to work with stakeholders to ensure that implementation continues to move ahead as expeditiously as possible.”
