Latest news with #PermianBasinReliabilityPlan
Yahoo
26-06-2025
- Business
- Yahoo
Oncor to propose rate increase, says 5-year capital expenditures could ‘soar' by $12B
This story was originally published on Utility Dive. To receive daily news and insights, subscribe to our free daily Utility Dive newsletter. Oncor Electric said Thursday that it will ask Texas regulators to increase its base rates by approximately $834 million to support Texas investments that include the utility's $36 billion five-year capital spending plan — though that spending figure is likely to climb, officials said. In February, Oncor announced a plan to support system growth from 2025 to 2029 that included transmission and distribution upgrades and investments in technology. Now the utility said it has identified an additional $12 billion in projects that could be included. 'It is likely that Oncor's capital investments over the next five years will soar well beyond' the initial estimate, the utility said. The largest portion of Oncor's proposed rate increase, about 45%, would go to recover storm-related damages. If approved by the Public Utility Commission of Texas, an average customer would see monthly bills rise 4.7%. Oncor has seen about one major storm in its service territory every 12 days — or about 31 weather events annually — over the past three years. 'The largest portion of the requested increase arises from the need to recover costs already spent on storm-related damages over this time. It also increases the amount in rates for storm-related damages as well as other self-insured losses in the future,' the utility said. About 20% of the proposed increase would go to address rising costs and inflation, and 25% would go to address debt costs. Oncor's current rates are largely based on wages and costs from 2021. 'Like many Texans, Oncor has seen its costs rise sharply,' the utility said. 'We are requesting this rate review as we're executing on our approximately $36 billion five-year capital plan as we seek to minimize the impacts of increased storms on our customers,' Oncor Senior Vice President and Chief Customer Officer Debbie Dennis said in a statement. 'Our decision to file this request was not made lightly and we have done our best to absorb higher costs for several years,' Dennis said. Oncor's five-year plan includes its System Resiliency Plan, Permian Basin Reliability Plan, transmission projects, distribution system upgrades and the interconnection of generation and large commercial and industrial customers. And the company says its capital expenditures are likely to rise significantly 'due to incremental opportunities that were subject to regulatory approvals and/or customer commitments as of the February 2025 announcement of its five-year capital plan.' The original plan only included the company's anticipated spending on major transmission projects that had obtained all regulatory approvals as of February 2025, Oncor said. And it only included large commercial and industrial projects for which it had already signed interconnection agreements. 'With this in mind, Oncor has identified potential additional capital opportunities from 2025-2029 that are likely to exceed $12 billion,' the utility said. Recommended Reading Texas PUC approves $3B Oncor system resiliency plan Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-04-2025
- Business
- Yahoo
TXOGA applauds strategic commitment to West Texas growth and energy security
Apr. 24—AUSTIN — The Public Utility Commission of Texas (PUC) on Thursday took a major step in ensuring the long-term energy reliability and economic vitality of the Lone Star State by announcing that the buildout of the Permian Basin Reliability Plan will proceed using 765-kilovolt (kV) transmission lines — the highest-voltage transmission standard to be used in Texas. Following the announcement, Texas Oil & Gas Association (TXOGA) President Todd Staples issued the following statement: "Today's decision by the PUC to approve transmission lines in the buildout of the Permian Basin Reliability Plan further reinforces Texas' ongoing commitment to fostering economic growth, creating jobs and strengthening our energy independence. We thank PUC Chairman Thomas Gleeson, Commissioners Kathleen Jackson and Courtney Hjaltman, as well as staff, for their diligent and thoughtful work to advance this project. Former PUC Commissioner Lori Cobos also worked extensively on this issue. This decision is critical to ensuring that reliable power is available for oil and natural gas production and industrial development across West Texas — enabling the energy sector to continue delivering affordable, secure energy to Texas, the nation, and the world." Conditionally approved in September 2024, the Permian Basin Reliability Plan addresses persistent concerns over insufficient transmission capacity in one of the most productive energy regions in the country. The plan is designed to support the region's strong and growing electricity demand and unlock continued economic development across the Permian Basin. The Commission's endorsement of the 765-kV configuration signals not only the urgency of West Texas growth but also confidence in the ability of Texas transmission providers to deliver the project on time and within budget, despite challenging economic conditions. It also reflects the PUC's investigation and conclusion that the 765-kV approach offers the best long-term path to expand ERCOT's capacity and meet the state's growing power needs. The buildout will represent the largest high-voltage transmission investment in Texas in more than a decade — a bold step toward future-proofing the grid and reinforcing Texas' global energy leadership.
Yahoo
04-02-2025
- Business
- Yahoo
Sparks files third 89th priority legislative package on grid reliability
Feb. 4—AUSTIN — Senator Kevin Sparks (R-Midland) has announced his third legislative priority package, aimed at securing Texas' electric grid. As the Texas energy sector undergoes a major transformation, facing rising demand and a rapidly changing landscape, ensuring the grid's stability is more critical than ever. Senator Sparks' legislative package on grid reliability addresses population expansion, transmission planning, reliable generation, and correcting federal interference. Senator Sparks' 89th Legislative Priorities on 'Grid Reliability' consists of the following pieces of legislation: — SB 715: Consistent Reliability Requirements: Removes the bifurcated timeline structure regarding the reliability requirement, so the new standard will be followed by all grid participants. — SB 391: Permian Basin Transmission Planning: Updates the Electric Reliability Council of Texas' Permian Basin Reliability Plan for the region every five years. — SB 714: Market Distortion Solution: Eliminates or compensates for market distortion in electricity pricing caused by the benefits renewable energy receives from the federal subsidies. — SB 970: Texas Energy Fund Prioritization: Prioritizes cost-effective, reliable baseload generation for the Texas Energy Fund. "My legislative package focuses on securing the electric grid and ensuring the state keeps up with the growing generation demand and provides affordable, reliable, and responsible energy for every Texan," stated Senator Sparks. "I look forward to working on compensating for the influx of federal energy subsidies that have distorted the market and reforming the Texas Energy Fund to protect Texans from the soaring electricity costs caused by short-term fixes. Investing in dispatchable natural gas is a step toward improving energy efficiency, and we must leverage technology that serves the best interests of ratepayers." "We extend our heartfelt gratitude to Senator Kevin Sparks for his unwavering leadership and dedication to advancing Texas' energy infrastructure. Together, we are paving the way for a brighter, more resilient future." said Doug Robison, Founder and CEO — Natura Resources.
