To meet demand, Texas approves critical high voltage lines By EPN Staff Texas regulators last month approved one of the biggest upgrades to the Texas electric grid in at least a decade, backing the state’s first 765-kilovolt transmission lines. These new lines will carry twice the voltage of any transmission line on the Electric Reliability Council of Texas (ERCOT) grid. They’re meant to meet growing energy demands in the Permian Basin, in large part to power the expansion and electrification of Texas’ oil and gas industry. The Public Utility Commission of Texas’ decision was unanimous, and it was applauded by the Texas Oil & Gas Association. “This decision is critical to ensuring that reliable power is available for oil and natural gas production and industrial development across West Texas — enabling the energy sector to continue delivering affordable, secure energy to Texas, the nation, and the world,” Texas Oil & Gas Association President Todd Staples said in a statement. Why it matters This is an early step in a $33 billion plan to build a larger system of higher-voltage lines, and this portion will cost an estimated $10.1 billion, paid for by ERCOT customers across Texas. That’s about $2 billion more than 345-kilovolt lines would have cost, but the Public Utility Commission (PUC) said the higher voltage lines can meet more demand, reduce congestion on the grid and “could save money in the long-term by avoiding the need to build new transmission lines to catch up to future demand.” The decision flowed from legislation passed in 2023 requiring a reliability plan for the Permian Basin. That plan is a first step in a broader push to evaluate transmission and distribution systems across the ERCOT grid and to plan the improvements needed to support Texas’ growth, the PUC said. The bigger picture Much of the country is grappling with where and how to modernize power grids while accounting for the demand increases expected from artificial intelligence and data centers. The U.S. Department of Energy has said the country needs to boost transmission capacity by 60% by 2030, and potentially to triple it by 2050, to meet clean energy goals and protect grid reliability. Texas’ $33 billion plan includes nearly 2,500 miles of the new 765 kilovolt lines and another 650 miles of smaller lines and upgrades, the San Antonio Express-News reported. The Texas Oil & Gas Association said the buildout will be “the largest high-voltage transmission investment in Texas in more than a decade” and called it “a bold step toward future-proofing the grid and reinforcing Texas’ global energy leadership.” Additional details With the decision made, PUC Chairman Thomas Gleeson said the focus shifts to “ensuring utilities execute these projects quickly and at the lowest possible cost to Texas consumers.” AEP Texas, which will construct the new lines, said it will hold public presentations along the line route this summer.
