Texas lawmakers are moving to slow or reconsider a massive transmission expansion they previously ordered after landowners raised concerns about property rights, the approval process, and who should pay for the infrastructure.
The development comes ahead of a Texas House hearing Wednesday, August 19, focused on proposed 765-kilovolt transmission lines.
The dispute centers on the Permian Basin Reliability Plan and a broader transmission expansion estimated by the Electric Reliability Council of Texas (ERCOT) at nearly $33 billion. The Public Utility Commission of Texas (PUCT) has not halted the projects, but lawmakers are now pressing regulators to reconsider pending applications.
House to Examine Controversial Transmission Lines Wednesday
The PUC could review aspects of the transmission projects in the coming days. At its open meeting on Friday, August 14, the commission held a policy discussion on the Permian Basin Reliability Plan and related 765-kilovolt import paths but took no action to halt any of the pending projects.
One of the major segments under review, the Bell County East to Big Hill 765-kV Transmission Line Project (jointly proposed by Oncor and LCRA Transmission Services Corporation), has estimated costs in the range of approximately $1.6 billion to $1.9 billion (excluding certain station costs) and would cross multiple Central Texas and Hill Country counties depending on the final route.
Lawmakers Question Process and Property Rights
The latest push follows testimony from Texas landowners who objected to proposed routes crossing private property.
Sen. Charles Schwertner (R-Georgetown), chairman of the Senate Business and Commerce Committee, said the July hearing exposed concerns involving notice from utilities, shortened timelines in PUC proceedings, and due process at the State Office of Administrative Hearings.
“After hearing hours of testimony from Texas landowners … one thing is clear: landowners deserve a fair and transparent (Certificate of Convenience and Necessity) process. Texans’ property rights must be protected,” Schwertner said in a statement posted to X.
After hearing hours of testimony from Texas landowners in the Senate Business and Commerce Committee, one thing is clear: landowners deserve a fair and transparent CCN process. Texans' property rights must be protected. pic.twitter.com/xh5kbGYpRL
— Charles Schwertner (@DrSchwertner) July 31, 2026
Schwertner has called on the PUC to deny existing Certificates of Convenience and Necessity, or CCNs, for the affected projects. Utilities generally must obtain a CCN from the PUC to construct new transmission facilities.
The PUC’s project filings show numerous filings and interventions related to the proposed 765-kilovolt projects, including formal opposition from affected landowners.
Why Texas Approved the Plan
The transmission expansion did not begin as a response to the current backlash.
Texas lawmakers in 2023 approved legislation directing ERCOT to develop a reliability plan for the Permian Basin after concerns about the region’s ability to obtain enough electricity for growing oil and gas operations.
ERCOT subsequently studied both 345-kilovolt and 765-kilovolt alternatives. The PUC later selected 765-kilovolt import paths for the Permian Basin.
ERCOT’s analysis found that the 765-kilovolt approach could move electricity more efficiently over long distances and provide greater transfer capability than the 345-kilovolt alternative. One 765-kilovolt line can carry roughly the same amount of electricity as three or four 345-kilovolt lines.
$33 Billion Statewide Expansion
The Permian Basin projects are part of a much larger transmission strategy.
In its comparison of the two approaches, ERCOT estimated the Texas 765-kilovolt Strategic Transmission Expansion Plan, including the Permian Basin projects, at approximately $32.99 billion.
The plan includes approximately 2,468 miles of new 765-kilovolt lines, along with hundreds of miles of new 345-kilovolt lines and thousands of miles of upgrades to existing infrastructure.
ERCOT estimated the alternative 345-kilovolt plan at approximately $30.75 billion.
The grid operator’s analysis concluded that the 765-kilovolt plan could provide approximately $229 million more in annual consumer energy-cost savings over the long term than the 345-kilovolt alternative, while reducing transmission losses by about 5%.
Data Centers Add Another Layer to the Debate
The transmission dispute is occurring as Texas faces rapidly increasing electricity demand from multiple industries, including oil and gas, manufacturing, cryptocurrency operations, and data centers.
PUC Chairman Thomas Gleeson told lawmakers that the Permian Basin plan was submitted in 2024, before ERCOT subsequently forecast much higher statewide electricity demand through 2032.
Gleeson said the Permian Basin’s electricity needs are being driven in significant part by the electrification of oil and gas operations.
Some lawmakers, however, have questioned whether additional generation closer to the Permian Basin could reduce the need for massive transmission projects.
Sen. Kevin Sparks (R-Midland), who previously voted for the reliability plan, questioned why more natural-gas generation could not be developed in West Texas.
What Happens Next
For now, the transmission projects remain active.
The immediate dates to watch are Wednesday, August 19, when the Texas House is scheduled to examine the 765-kilovolt lines, and Thursday, August 20, when the PUCT is scheduled to hold its next regular open meeting in Austin.
The dispute puts Texas officials in the position of weighing two competing infrastructure concerns: the need to expand the electric grid as electricity demand rises and the impact that expansion could have on private property owners and ratepayers.
The outcome could determine whether Texas proceeds with one of the largest transmission expansions in its history under the existing framework or revisits portions of the plan before construction advances.
Provided by Dallas Express
