Texas stakeholders seek timeline certainty on Permian Basin transmission plan

Texas stakeholders pressed for more certainty on the decision timeline regarding various components of the proposed Permian Basin Reliability Plan during a Sept. 12 Public Utility Commission of Texas open meeting, with a vote on the blueprint looming later this month.

The plan, estimated to cost $13 billion-$15 billion, is designed to address future grid reliability needs for the Permian Basin region, where load is forecast to soar significantly in the next decade, with electric transmission upgrades. The proposal was put into motion when House Bill 5066 was passed by the Texas Legislature in May 2023 and signed into law by Governor Greg Abbott.

The Electric Reliability Council of Texas, which manages most of the state’s grid, in July filed a final reliability plan for the Permian Basin that outlined various options for high voltage versus extra-high-voltage transmission upgrades for 2030 and 2038 time horizons. Recent ERCOT forecasts put projected system load at 150 GW by 2030, with 26 GW forecast to be in the Permian Basin.

High-voltage options at issue

Julia Wagner, an engineering specialist in PUCT’s Market Analysis Division, said commission staff recommended the regulatory body approve the local upgrade projects and adopt the import path for the 2038 case study at its next meeting, scheduled for Sept. 26. Wagner, however, said staff recommended that the PUCT put off choosing between 345-, 500- or 765-kV voltage systems until no later than March 15, 2025, to allow ERCOT time to complete its extra-high-voltage study in December and provide more time to gather additional information on costs, benefits and risks.

The recommended timeline on choosing the voltage system did not satisfy some stakeholders.

Meghan Griffiths, an attorney with Jackson Walker who represents the Permian Basin Petroleum Association, said “there is an urgency to solve the transmission infrastructure problem in the Permian,” while advocating for the approval “sooner rather than later.”

“Our goal throughout this whole process has been to get a full actionable plan approved this fall,” Griffiths said. “We don't believe that staff’s primary recommendation gets us there because it would only approve those local projects and kind of leave to another day the import path lines. I do think that it is critically important to get that date certain so that we can pivot on the import path lines in the event that those import path lines get bogged down in a greater discussion at the Legislature this fall.”

Shana Joyce, vice president of government and regulatory affairs for the Texas Oil & Gas Association, echoed the sentiment on urgency.

“We also believe that time is of the essence and that any delay of this project will affect the Texas economy as prolific as the Permian Basin is for oil and gas operations,” Joyce said.

Memo lays out a path

Commissioner Lori Cobos issued her own memorandum during the meeting that called for the PUCT to approve a plan to serve the Permian Basin through 2038 and to authorize applicable transmission service providers to start preparing certificate of convenience and necessity applications for all five import paths. The memo recommends the TSPs prioritize preparation of CCN applications for the three import paths with commonality between 345-kV and 765-kV paths and prepare them all with the optionality to use either 345-kV or 765-kV subject to the PUCT’s decision on the voltage system by a certain date.

The memo said that if the PUCT has not made a decision on the voltage system by the certain date, the transmission service providers may proceed with filing CCN applications for all five import paths at 345 kV. In the event that the commission moves forward with the extra-high-voltage system, the TSPs should file the CCN applications for the three import paths at 765 kV and not file applications for the two import paths that were not prioritized.

Commissioner Jimmy Glotfelty spoke up in support of the memo, but said his mind was made up on his preferred voltage system.

“If I had a magic wand, I would order the 765 done today,” Glotfelty said. “I would say, let's not do the 345 and 765 [optionality]. Let's just do the 765 and get it over with. But I recognize that we're not all there. So I think the path forward that you've laid out in your memo is right.”