Texas regulators last week delayed action on a proposed transmission project in the oil-rich Permian Basin, allowing the parties involved to make modifications in the proposed order (Docket 48785).
“Two weeks won’t hurt us,” PUC Chair DeAnn Walker said during Thursday’s open meeting. The commission meets next on June 13.
Oncor and AEP Texas filed an application last year to build a 345-kV double-circuit transmission line from Oncor’s Sand Lake switch station in Ward County to AEP Texas’ Solstice switch station in Pecos County. The potential routes range from 44 to 59 miles in length with estimated costs of $98 million to $127 million. The line is part of the $336 million Far West Texas transmission project, approved by ERCOT in 2017. (See ERCOT Board Approves West Texas Transmission Project.)
The Route 320 path recommended by Administrative Law Judge Steven Neinast runs through what the judge called a “densely packed” Occidental Petroleum oilfield. Occidental would like to see the line shifted at a cost of $18 million.
Walker added language to the order to give Oncor and AEP flexibility in deviating from the approved route, but only if the parties can receive consent from all affected landowners. Oncor and Occidental both said they were having trouble working with all the landowners.
“I understand the problems they’re talking about,” said Walker, a former landman. “I don’t mind giving utilities some leeway to relocate, but I don’t know that we can get as far without the consent of landowners. I was prepared to move [this] out, because we’ve got to get transmission in the Permian Basin, but I think $18 million is a large amount to add to the transmission cost.”
AEP, LCRA Get Their West Texas CCNs
The PUC awarded certificates of convenience and necessity (CCNs) to AEP and Lower Colorado River Authority Transmission Services for the Bakersfield-Solstice portion of the Far West Texas transmission project (Docket 48787).
The project will connect AEP’s Solstice station and LCRA’s Bakersfield station with a 71-mile, 345-kV double-circuit line. The preferred route was the fourth cheapest among 25 options at $156 million. Expansion work at the two substations will add $45 million to the project.
AEP and LCRA said the project will support the area’s load growth, address reliability violations and provide the infrastructure necessary to facilitate further expansions. The companies cited an eight-fold load increase on nearby transmission lines that were built in 2012 and 2017.
PUC Grants SWEPCO $6.5M Recovery
In other actions, the PUC granted Southwestern Electric Power Co.’s request to recover nearly $6.5 million through its distribution cost recovery factor (Docket 49041).
The commission also approved a pair of settlements that resulted in $210,000 in administrative penalties:
- Retail electric provider Ambit Energy was assessed $160,000 for moving numerous customers to a new, higher-priced plan without the customers’ consent (Docket 48859).
- LCRA was hit with a $50,000 penalty for failing to reserve sufficient capacity to meet its response reserve service obligations (Docket 49466).
— Tom Kleckner
