Oncor, Others Push for More T&D Capacity in Texas' Permian Basin

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

Oncor is among several T&D developers lobbying to build out capacity in the Permian Basin region of Texas, where demand is skyrocketing.

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PUCT to Review Proposal

Oncor Electric Delivery Company, the largest transmission and distribution (T&D) utility in Texas, and LCRA Transmission Services Corporation recently applied to the Public Utility Commission of Texas (PUCT) to expand their role in the buildout of high-voltage T&D capacity in the Permian Basin. The effort would be part of the Permian Basin Reliability Plan (PBRP), which is designed to add about 300 miles of 765-kilovolt (kV) lines to address the rapidly rising electric load growth in the area. Industrial Info is tracking nearly $10 billion worth of active and proposed T&D projects in the Permian area of Texas, including nearly $2 billion attributed to the PBRP.

Oncor is a subsidiary of Sempra. In February, Oncor announced a base capital-spending plan of about $47.5 billion for 2026 to 2030, which includes $6 billion for the remaining projects in the PBRP that were not included in the prior five-year capital plan due to pending regulatory approvals. The 2026 share for the full five-year plan stands at about $9 billion.

In its March 26 application to PUCT, Oncor proposed a high-voltage line from Schleicher County to Bell County, including an eight-mile segment from Temple to Heidenheimer and a 200-mile segment from Heidenheimer to Eldorado. The company also is proposing significant upgrades to its East Bell County Switching Station in Heidenheimer and its Big Hill Substation in Eldorado.

"Over the coming months, the PUCT will review the proposed routes, supplemental information and public feedback before ultimately selecting the final route Oncor and LCRA TSC will construct," Oncor said in a press release. "The PUCT is expected to select this route in September. If approved, Oncor anticipates the transmission line will be energized by 2030, pending future schedule changes."

Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can learn more about these developments--including construction schedules, investment values and necessary equipment--from detailed project reports on the Temple-to-Heidenheimer and Heidenheimer-to-Eldorado lines, and the upgrades to East Bell County and Big Hill.

According to data from the Electricity Reliability Council of Texas (ERCOT), electricity demand in the Permian Basin is expected to rise from 11,132 MW in 2026 to 26,400 MW in 2038. Construction on the first batch of high-voltage lines in the PBRP was approved by the PUCT in April 2025.

By the Numbers

• Nearly $10 billion: Total value of T&D projects in the Permian Basin area of Texas, according to Industrial Info
• 26,400 MW: Electricity demand expected in the Permian Basin in 2038, according to ERCOT
• $47.5 billion: Oncor's base capital-spending plan for 2026 to 2030

Other Permian T&D Buildouts on the Way

LCRA Transmission Services, a non-profit subsidiary of Lower Colorado River Authority, is working with Oncor on several projects in the Permian not included in the PBRP. These include two projects slated to wrap up later this year: a 94-mile line from Pecos to McCamey and a 71-mile line from McCamey to Garden City.

These new lines are part of LCRA's Sand Lake to Bearkat Transmission Project, which is designed to improve reliability and address load growth in Texas' Crane, Crockett, Glasscock, Pecos, Reagan, Reeves, Upton and Ward counties. The plan includes upgrades to the North Substation in McCamey and Sand Lake Substation in Pecos. Subscribers can learn more from detailed project reports on the Pecos-to-McCamey and McCamey-to-Garden City lines, and the upgrades to North McCamey and Sand Lake.

In the westernmost area of the Lone Star State, American Electric Power Incorporated (AEP) is preparing to begin work this summer on two transmission line rebuilds: a 22.6-mile stretch from Marfa to Alpine and a 20.5-mile stretch from Marfa to Fort Davis. AEP also expects to perform upgrades to its Alamito Creek Substation in Marfa.

The 69-kV lines set to be replaced was built in 1929 and is past its service life, according to AEP. The company plans to strengthen the system against West Texas weather and swap out modern steel poles for the deteriorating wooden poles. Subscribers can learn more from detailed project reports on the Marfa-to-Alpine and Marfa-to-Fort Davis lines, and the upgrades to Alamito Creek.

Last year, Vistra Corporation announced it was moving ahead with plans for $1 billion in capital expenditures "to support grid reliability in Texas," including two new gas-fired turbines at its Permian Basin Power Plant in Monahans, Texas. For more information, see October 1, 2025, article - Vistra to Add Capacity to Permian Basin Power Plant.

Subscribers can click here for a full list of reports for active and proposed T&D projects in the Permian area of Texas and can click here for a list of those attributable to the PBRP.

Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Key Takeaways

• Oncor and LCRA recently applied to expand their role in the buildout of high-voltage T&D capacity in the Permian Basin.
• PUCT will review the proposed routes and select one for Oncor and LCRA to build.
• AEP is among the other companies developing T&D projects in the Permian area.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR News Intelligence) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 250,000 current and future projects worth $30.2 trillion (USD).