AUSTIN — The Public Utility Commission of Texas has voted to move forward on controversial high-voltage transmission lines in spite of calls from public officials, groups and landowners to delay the project.
On August 26, the Texas Public Policy Foundation filed a letter with PUC urging commissioners to grant American Stewards of Liberty’s motion to abate the ongoing Certificate of Convenience and Necessity proceedings for the proposed 765-kV transmission lines.
The letter, which was cosigned by dozens of Texas energy producers and landowners, argues that the existing CCN process is inadequate for a project of this scale and impact, and that the proposal for the lines was never debated by the Texas Legislature, which should be done for a project of this size and scope.
The letter further contends that the fundamental driver of the need for new transmission is a flawed ERCOT wholesale market that fails to incentivize dispatchable natural gas generation. Building nearly $100 billion in new transmission without first correcting those market flaws risks compounding the problem rather than solving it. Abatement is the appropriate course while the 90th Texas Legislature considers necessary reforms and alternatives to the current plan.
“The Permian Basin sits on some of the world’s cheapest and most abundant natural gas,” the letter states. “There is no physical reason there is not sufficient natural gas generation in the region to serve demand. This is purely a policy problem.”
TPPF says policymakers must seize the opportunity to fix the ERCOT market now before tens of billions of dollars are spent and irreversible harm is done, a sentiment echoed by Texas Attorney General Ken Paxton.
“We need to ensure that a project of this size is being carried out in a way that is best for the people of Texas,” Paxton said. “That is why I am calling for a pause on this project until a full and thorough review can be done. This includes an independent analysis of the costs to ratepayers and the impact on private property owners. There must be clear guardrails from the Legislature for this scale of buildout. I will always act to put Texans first.”
In 2023, the Texas Legislature passed House Bill 5066, directing PUC to order ERCOT to develop a long-term reliability plan for high-growth areas, like the Permian Basin. The resulting plan has since grown into a statewide buildout of 765-kV lines that is now priced at roughly $33 billion.
Paxton argues that it is unclear whether the Legislature ever contemplated this scale of a project and that the legislature must be given an opportunity to review the plan and provide guidance.
