SB 1665: ‘We’ve Never Had Underutilized Transmission in Texas’ So why is there debate about new transmission lines?
The Texas electric grid is expanding at an unprecedented rate. Not since the rural electrification efforts of the late 1930s has the electric grid grown so much, so quickly. With this growth comes the need to expand the state’s transmission system – economically and fairly – the steel highways that deliver electricity from far flung generators to our homes and businesses.
For months, the PUC and ERCOT have been developing the Permian Basin Plan, a $13 billion component of a larger $30+ billion investment needed to shore up the state’s electric grid and accommodate all the new growth in the state. After hundreds of pages of study and testimony of dozens of experts, constructing large, 765kv transmission lines was the clear choice instead of 345kv lines that historically have been used. Undisputed facts about the 765kv transmission lines:
Greater expansion capability than 345kv
Fewer are needed – you have to have five 345kv lines for every one 765kv line, which means more ranches and landowners are impacted if 345s are chosen
While the initial cost of 765kv lines is slightly more expensive, they’ll cost less over time
Despite all the benefits aligned with the 765kv lines, there is still opposition. In a recent six-hour PUC workshop, Texas Oil & Gas Assoc. (TXOGA), Texas Industrial Electric Customer (TIEC), and Texas Association of Manufacturers (TAM) relentlessly tried to push 345kv lines as the solution. Not once did any of the dozens of experts assembled present a compelling reason why 345kv lines are a better choice than 765kv lines. Expert after expert clearly stated that 765kv lines would be the most cost effective and better meet Texas’ long-term economic growth.
“We don't want to revisit this in five years and have to incur multiple additional costs in an incremental system,” said a Google representative. “We think a bigger build-out up front, especially with a relatively marginal incremental cost, is a logical decision that offers the most upward flexibility in the event of large load growth.”
Then why are TXOGA, TIEC, and TAM so opposed? They never really gave a specific reason; however, during the hearing, one representative said: “I think the consideration is my clients are very cost-sensitive and not everybody is as cost-sensitive as the manufacturing community.”
TCA would argue that the single mother of two kids or the senior citizen choosing between a comfortable house and medications are probably more cost-sensitive than a multi-billion dollar company. And TCA can clearly see that 765kv lines are more cost effective.
Sen. Charles Schwertner (R-Georgetown) introduced SB 1665, which prevents the PUC from allowing the use of 765kv lines in the Permian Basin Plan, the largest transmission line project in the nation. With this pending legislation, the PUC cannot approve any plan other than the more expensive 345kv lines.
Lawmakers have said they are concerned about possibly overbuilding transmission. Yet one party, quoting Oncor’s Liz Jones, said: “I think I've heard Liz say a thousand times, ‘we've never had any underutilized transmission capacity in Texas. We usually grow into it.’ And that's true.”
It’s time for the PUC and ERCOT to move forward with the most cost-efficient and effective investment option. Based on the overwhelming evidence and testimony from numerous experts, that option is the 765kv lines. The Texas Legislature should remove any roadblocks that would keep the PUC and ERCOT from starting this important work.
Sandra Haverlah is President of Texas Consumer Association, a 501c(4) non-profit organization that has been representing individuals and small businesses on pocketbook issues for over 50 years. www.texasconsumer.org