The Texas Public Utility Commission last week approved a certificate of convenience and necessity for a 345-kV transmission project that cuts through an active petroleum field in West Texas’ Permian Basin (Docket 48785).
During their open meeting Thursday, the commissioners agreed to tweak a previously proposed order by an administrative law judge.
The CCN allows Oncor and AEP Texas to build 345-kV double-circuit transmission lines, ranging in length from 44 to 59 miles, and at a cost of $98 million to $126 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.)
During the meeting, PUC Chair DeAnn Walker and Commissioner Arthur D’Andrea discussed Walker’s addition of language allowing Oncor and AEP to make a “minor deviation” from the route if they receive landowners’ permission and they do not cause an “unreasonable” increase in cost.
Walker said she normally omits the language from orders. However, it gives the developers flexibility in dealing with drilling wells that take only months to begin producing.
“I think when Oncor gets out there, there’s going to be something they have to address,” Walker said. “If Oncor gets out there and finds something they can’t do, or they feel they don’t fall within the language, I’m fine with them filing a request for an expedited decision. I don’t think we should go to a full CCN to get them an answer.”
D’Andrea agreed with granting exceptions to transmission facilities in areas with petroleum development and suggested a rulemaking to address the process.
AEP Texas Securitization OK’d
The commission approved a request from AEP to securitize $369.2 million in system restoration costs as a result of Hurricane Harvey in 2017 (Docket 49308).
In an ex parte communication to Walker, financial planner Saber Partners argued that AEP’s proposed servicing fee of 10 basis points was inconsistent with the state’s Public Utility Regulatory Act that mandates a “lowest transition charge.” Staff examined 72 recent similar transactions and determined AEP’s request was consistent with those ranges and with the PURA.
PUC Fines Oncor, Intervenes at FERC
In other actions, the PUC:
- Approved a settlement agreement against Oncor for inaccurate telemetry. The utility agreed to pay an administrative penalty of $75,000 (Docket 49454).
- Voted to join regulators from Indiana, Mississippi and Missouri in intervening in LS Power’s complaint with FERC against MISO’s economic planning process (EL19-79). The company charges that the RTO’s planning process fails to provide a clear path for regionally beneficial economic enhancements that do not currently qualify as market efficiency projects, resulting in unnecessary congestion costs.
— Tom Kleckner
