AUSTIN The Public Utility Commission of Texas (PUCT) on Thursday hosted a public workshop on finalizing the electric reliability plan for the Permian Basin. The PUCT instructed the Electric Reliability Council of Texas (ERCOT) to develop a reliability plan for the region in December 2023. ERCOT submitted its proposal in July, and the Commission is expected to consider and vote on a final plan in September.
“Ensuring the Permian Basin has the reliable electricity it needs to power Texas’ world-leading oil and gas industry is a top priority for the Commission, and we have taken swift action to direct ERCOT to develop a transmission infrastructure plan for the region,” PUCT Commissioner Lori Cobos said. “I want to thank the Legislature for their leadership, ERCOT and PUC staff for working with urgency on this important matter for our state, and the stakeholders for their participation in the process. I look forward to working with my fellow Commissioners to approve a plan that strengthens the regions’ transmission infrastructure to meet growing electricity needs.”
Electricity demand in the Permian Basin is growing rapidly as the oil and gas industry continues to electrify operations and the region’s electricity needs evolve with the development of new large commercial facilities. ERCOT forecasts show electricity demand in the Permian Basin could grow to nearly 26 GW by 2038, equivalent to almost one third of the current summer demand of the entire ERCOT system, a news release said.
House Bill 5066, passed by the Texas Legislature last year and signed into law by Governor Greg Abbott, instructed the PUCT and ERCOT to develop an electric reliability plan for the Permian Basin that addresses transmission needs in the region, additional power generation necessary to meet the demand of the energy industry, and how to streamline interconnection processes.
At the workshop, industry stakeholders discussed the proposed reliability plan, best approaches for implementation including the potential inclusion of high voltage lines and cost impacts, and how to make interconnection processes for proposed projects as efficient as possible.
The proposed plan includes transmission projects that will connect expected new oil and gas operations, businesses, and homes in the area to the grid, as well as additional transmission projects necessary to import additional power to the region.
All information related to the development of the Permian Basin Reliability Plan, including ERCOT’s proposed plan, is available in PUCT Docket No. 55718.
