Permian Basin 765kV Transmission Lines Status

Recent actions by the PUC could delay approval of all three Permian Basin 765kV transmission lines until December, which would be weeks before the next regular legislative session starts in January 2027. Legislators can start filing bills on November 9, 2026. Some legislators have said they will file reform legislation for 765kV transmission line applications.

The PUC approved the north and south Permian Basin 765kV lines, but motions for rehearing have been filed for both lines. The PUC could wait until December to act on the rehearing motions. The PUC's orders approving the north and south 765kV transmission lines are not final until the rehearing motions are resolved.

The PUC remanded (i.e. returned) Bell County East to Sand Lake, the middle 765kV transmission line (Bell County East), to the State Office of Administrative Hearings (SOAH) Administrative Law Judges (ALJs), and it might be late November or December before the ALJs send the application to the PUC.

Bell County East Proposal for Decision The Bell County East ALJs recommended the PUC deny the applications for the middle 765kV line because Oncor and LCRA TSC (the Applicants) (1) failed to show the middle 765kV line was needed, and (2) violated public meeting requirements for 1400 landowners located on 400 miles of new route links added when the CCN application was filed.

The applicants for all three Permian Basin 765kV transmission lines relied on ERCOT's Permian Basin Reliability Plan (PBRP) to establish need for their applications. The ALJs for the north and south 765kV transmission lines determined the PBRP established need. However, the ALJs for Bell County East determined ERCOT's PBRP does not support the need for the middle 765kV transmission line because:

• ERCOT's load forecast is overstated, unsubstantiated and contains material errors

• Bell County East does not have sufficient power available to transmit west to the Permian Basin

• New and planned gas generation in the Permian Basin could reduce or eliminate the need for the middle 765kV transmission line.

The ALJs recommended approval of the north and south 765kV transmission lines and the PUC approved these applications. The Bell County East ALJs recommended denial of the middle 765kV transmission lines, and the PUC remanded the Bell County East application back to the ALJs.

Bell County East Remanded Issues Update The PUC remanded Bell County East because the ALJs did not adequately address two of the issues in the PUC's referral and preliminary order issued to SOAH on March 30, 2026. The preliminary order listed 21 different issues the PUC requested SOAH to resolve, including issues dealing with: (1) need for the 765kV transmission line, and (2) the best alternative route. The PUC said the Bell County ALJs did not adequately address issues 11 and 13. Issue 11 asks if the 765kV transmission line is necessary to meet state or federal reliability standards. Issue 13 asks for the estimated congestion cost savings that may result from the 765kV transmission line.

Oncor and LCRA TSC (the Applicants), the PUC Staff, and 21 Intervenors filed briefs on the remanded issues on October 7, 2026. The Applicants and 19 Intervenors filed replies to the briefs on October 19, 2026. The Applicants' brief argued that the PBRP mandates approval of the middle 765kV line by the ALJs and that the PBRP must be given "great weight". But as discussed above, the ALJs already determined in their August PFD that "...the greater weight of the credible evidence is against the recommendation. As such, ERCOT's PBRP 765kV recommendation should not be accepted by the Commission..."

The SOAH ALJs will issue a supplemental proposal for decision (PFD) to the PUC that provides the ALJs recommendation on the two remanded issues. There is no deadline for the ALJs supplemental PFD, and the ALJs could issue it any day. After the supplemental PFD is issued, all parties can file exceptions briefs and replies to exceptions for the supplemental PFD.

It might be late November or December before the Bell County East application will return from SOAH to the PUC. In the meantime, the clock is ticking toward the start of the next legislative session. Proposed 765kV Transmission Lines Map The map above shows the three Permian Basin 765kV transmission lines, as well as other proposed 765kV lines in Texas.