Strategic power grid upgrade coming to Permian Basin

May 9, 2025

Texas utility regulators approved a groundbreaking infrastructure plan to construct the state’s first extra high voltage transmission lines, intended to address growing energy demands in the oil-rich Permian Basin. 

The Public Utility Commission of Texas (PUCT) endorsed the 765-kilovolt transmission lines after analyzing costs, supply chains and construction timelines compared to standard 345-kilovolt alternatives currently used throughout the Electric Reliability Council of Texas (ERCOT) grid. 

Despite projections showing the higher voltage implementation may cost approximately 22% more than conventional options, officials determined the advanced infrastructure offers substantial long-term advantages, including improved power-carrying capacity, reduced congestion on existing lines and fewer future construction requirements. 

The approval follows legislation passed in 2023 requiring regulators to develop an electric reliability strategy supporting ongoing industrial expansion and growing community needs in West Texas. Regulators finalized the initial reliability plan last October. 

PUCT Chairman Thomas Gleeson emphasized the environmental and property benefits of the approach, noting fewer high-capacity lines would be needed compared to traditional voltage options, resulting in reduced disruption to landowners and natural landscapes. 

The Permian Basin project represents the first phase of a broader legislative mandate to evaluate and upgrade transmission systems across the ERCOT grid. Before finalizing their decision, regulators gathered input through six public workshops involving equipment manufacturers and transmission service providers responsible for constructing and operating the new infrastructure.

Photo Courtesy FearChild via Wikimedia Commons

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