Texas transmission build-up to power Permian oil faces growing pushback
Texas’s plan to build more electricity transmission capacity for the Permian Basin is drawing opposition as regulators move toward decisions on multibillion-dollar projects, with critics warning that routing through parts of the Texas Hill Country could harm environmental areas and raise costs for ratepayers.
Industry groups representing oil and gas operators have warned lawmakers and regulators that West Texas lacks enough power plant generation and transmission connections to the broader state grid to meet demand. Those groups have argued that the Permian’s operations—such as compressors and oil pumps—need reliable electricity, especially as production increases.
The Texas Oil and Gas Association, whose membership makes up roughly 90% of the state’s crude oil and natural gas market, told regulators that a “reliable electricity supply is crucial to sustaining this industry.” In a separate push for regulators’ timeline, industry leaders said they cannot afford delays in the construction of needed transmission projects.
Ben Shepperd, president of the Permian Basin Petroleum Association, said, “To be very blunt, in order for Texas to continue to be the beacon for economic growth it must develop these projects in a timely fashion,” and he warned that the “greatest risk of failure for the Permian Basin Reliability Plan is for these necessary projects to falter under any sort of delay.”
The opposition, in contrast, focuses on how quickly projects are moving and which landscapes they could cross. Jada Jo Smith, president of the Hill Country Preservation Coalition, said, “We understand the Permian Basin needs reliability. We’re not saying we don’t understand it needs to happen, we’re just saying do it the right way. The process needs to be carefully thought out.”
The fight centers on the state’s administrative and regulatory process for approving major transmission lines. The plan is in administrative review and public input before construction can begin, and some observers say it could start as soon as next year. Critics say regulators should slow down, revisit routing—particularly in sensitive areas—and take additional steps to evaluate impacts.
As part of a broader expansion process, regulators partially approved an Electric Reliability Council of Texas proposal that would build or improve 260 transmission lines across Texas by 2038. That broader plan includes three major transmission lines—import paths—that would carry power from east to west, including 765 kV lines that can move more electricity than other lines in Texas. Industry figures and regulators have said the overall effort is expected to cost nearly $14 billion, with ratepayers expected to cover the expense.
State Rep. Charlie Geren, the Fort Worth Republican who wrote the underlying legislation, told the utility commission not to phase out the project. “I want to make it clear that it is my legislative intent that HB 5066 be fully implemented and should not be held up or delayed by the discussion of higher voltage lines for the state,” Geren wrote in a 2024 letter, according to the reporting. Geren did not respond to an interview request.
The Texas Public Utility Commission has greenlit most of the 260 proposed projects, but it has not yet fully approved 33 of the largest and most controversial proposals in the expansion package, and those companies still require final approval that includes public input.
Critics say their case has grown among both landowner and conservative groups, including demands to reconsider a proposed path through the Devil’s River in the Texas Hill Country. Brent Bennett, a policy director at the Texas Public Policy Foundation, said demand projections for new transmission capacity were being justified using studies that rely on speculation, noting that not all projects have been built or connected to the state grid.
Bennett said, “I think eventually, if the demand comes, we’re going to need them.” He added, “But how soon do we have to build them? And can we do this in a more phased, less disruptive manner?”
Residents and landowners have said they are organizing to challenge the project route. Smith said the coalition includes 48,000 people and 17 other organizations, and she described the practical stakes for local life—particularly how the land is used across seasons—saying, “All of these areas, their livelihood depends on rivers in the summer and hunting in the winter, and these proposed routes really threaten that.”
The pushback has also reached into state politics. At least five lawmakers with districts that include areas the transmission line would pass through wrote to the Texas Public Utility Commission in January, asking regulators to reevaluate the plan. The group’s letter cited “significant concerns” about impacts and said additional time is necessary to evaluate the “most responsible path” and consider alternative route links to avoid sensitive river basins, minimize land fragmentation, reduce ecological harm, protect water resources, and ensure meaningful public engagement.
The lawmakers named in the report included state Reps. West Virdell, R-Kerrville, and Don McLaughlin, R-Laredo, alongside state Rep. Eddie Morales, D-Eagle Pass, and Sens. Roland Gutierrez, D-San Antonio, and Pete Flores, R-Llano. Morales, whose statement was delivered to The Texas Tribune, said at the time that new transmission lines were vital for lawmakers to address and said he urged the PUC to reject the possibility that a line would cut through the Devils River region, saying, “This line will be built, and Texas will benefit from it. However, I am urging the PUC to recognize the importance of preserving this pristine landscape and reject the possibility of a proposed line to cut through this region.”
The Texas Public Utility Commission said it has received four applications for 765 kV transmission projects, and it said residents can protest or apply to intervene in proceedings. A PUC spokesperson also said the agency has held public engagement efforts, including attending public meetings, conducting informational briefings with state legislators, and fielding over 135 calls from consumers, adding that the transmission service providers are responsible for much of the public outreach and have hosted open houses for each project in their service areas. The commission said it has 180 days from the date applications are filed to approve, modify or deny them, with the process involving legal proceedings before the State Office of Administrative Hearings.