The CW39 Houston

by Rachel Estrada

The Public Utility Commission of Texas (PUC) today took a critical step in ensuring the long-term energy reliability and economic prosperity of Texas with the approval of the Permian Basin Reliability Plan. This comprehensive plan addresses growing concerns over insufficient transmission access in the Permian Basin, one of the most important energy-producing regions in the United States.

The Permian Basin has long been a driving force behind Texas’ status as a leader in energy production, contributing significantly to the state, nation, and globe. However, infrastructure has not kept pace with the rapid growth in the region’s energy demand, necessitating a bold approach to ensure that the electric grid is equipped to meet current and future needs.

Following the PUC’s approval of the plan, the Texas Oil & Gas Association (TXOGA), Permian Basin Petroleum Association (PBPA) and the Texas Alliance of Energy Producers (TAEP) issued the following joint statement:

“Today’s decision reinforces the Lone Star State’s ongoing commitment towards fostering economic growth, creating jobs and maintaining our energy independence,” said TXOGA President Todd Staples. “We appreciate the PUC Commissioners and staff, legislative leaders, Representative Charlie Geren, Senator Charles Schwertner, stakeholders, and the Electricity Reliability Council of Texas (ERCOT) for the work that has been done to complete this plan and move us forward to this vital transmission build out that will help ensure that oil and natural gas continue to be responsibly produced for years to come.”

“PBPA has been working to increase the necessary infrastructure in the Permian Basin to unleash this vital energy sector and allow it to thrive for generations to come. The decision today to plan for the region’s existing and long-term electrical transmission needs by the members of the PUC appointed by Governor Greg Abbott are unprecedented.” said PBPA President Ben Shepperd. “While other states and countries are turning their backs on domestic energy production, decreasing reliability, and increasing costs, Texas is again taking the lead to support the abundant, reliable, and affordable energy that America and our allies need. We are proud of the investments that our oil and natural gas operators have made to modernize and electrify assets, and this reliability plan will benefit all those that live, work, and raise their families in the Permian Basin.”

“We are so encouraged and grateful to the PUC for adopting this plan to take the next step toward full implementation of HB 5066,” said TAEP President Karr Ingham. “Our members and operators in West Texas have long needed relief through additional electrification in the Permian Basin and we are pleased that this decision gets us even closer to that long-awaited goal. We look forward to continuing to work with stakeholders to ensure implementation continues to move ahead as expeditiously as possible.”

The approved plan lays the groundwork for critical infrastructure upgrades and increased investment in transmission and distribution capacity while also providing for optionality as the state explores extra high voltage lines across Texas.

TXOGA previously issued a statement in support of the PUC’s adoption of a proposed order to develop a electricity reliability plan for the Permian Basin. In addition, TXOGA, PBPA and TAEP also previously issued a joint statement touting a workshop held in Midland by the PUC which focused on HB 5066 relating to transmission implementation and the development of a reliability plan for the Permian Basin region.