AUSTIN The Public Utility Commission of Texas (PUCT) on Thursday unanimously approved a transmission plan to meet the future electricity needs of the Permian Basin Region. The plan outlines transmission infrastructure investments necessary to support the ongoing expansion and electrification of Texas’ oil and gas industry in West Texas and the growing electricity needs of the region’s local communities.
“I want to thank Governor Abbott, the Texas Legislature, PUCT and ERCOT staff, and all stakeholders who participated in this landmark process that will result in a monumental and historic transmission infrastructure buildout in the state,” PUCT Commissioner Lori Cobos said. “The Permian Basin is the heartbeat of our state and nation’s energy dominance and economy. This plan is a roadmap that will ensure electric reliability in the region for decades to come and facilitate critical transmission infrastructure investment that will ensure the continued success of Texas’ oil and gas industry and support the region’s local communities and our entire state.”
House Bill 5066, passed by the Texas Legislature last year and signed into law by Governor Greg Abbott, required the PUCT to direct ERCOT to develop an electric reliability plan for the Permian Basin region. The legislation 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.
ERCOT forecasts electricity demand in the region will grow to approximately 26 GW by 2038, which is equivalent to almost one third of the current summer demand of the entire ERCOT system.
The plan approved by the Commission includes two categories of transmission infrastructure to support the region’s current and future power needs: new and upgraded local transmission projects to strengthen the area’s transmission service and new import paths that will bring additional power to the region to serve the area’s growing electricity needs.
The Commission’s decision Thursday also outlines procedural next steps for implementing the plan, including direction to the transmission companies that will be preparing to build the projects and commission oversight of the plan’s completion.
All information related to the development of the Permian Basin Reliability Plan, including specific transmission projects and estimated costs, public comments, and input from industry and local stakeholders, is available in PUCT Project No. 55718.
