Texas Railroad Commission blocking new wind energy transmission lines

Former House Speaker Newt Gingrich has
endorsed Railroad Commission Chairman
Michael Williams for Senate.
Campaign Photo

The Texas Railroad Commission is trying to block the construction of transmission lines that would bring wind energy from areas that have great capacity for renewable energy but lack sufficient transmission infrastructure to move it to markets. The motion to intervene was filed with the Public Utility Commission of Texas Monday, and says that CREZ transmission lines in Gillespie, Llano, San Saba, and Lampasas counties might impact active and inactive oil and gas well sites, impeding the development of oil and natural gas resources.

“This is another example of outrageous overreaching by the Railroad Commission on behalf of the same industries it is suppose to regulate”, says David Power, Deputy Director at Public Citizen’s Texas office. “The commission is charged with regulating the oil and gas industries, not with protecting their interests with taxpayer dollars”.

Senate Bill 20 that was introduced by the Texas Legislator in 2005 extended and expanded the Renewable Portfolio Standard (RPS) put forward in Senate Bill 7. The bill also included a transmission plan for regions like McCamey in West Texas that have great capacity for renewable energy but lack sufficient transmission infrastructure to move it to markets.

The Electric Reliability Council (ERCOT), that operates the Texas grid, was designated to collect wind data and to identify CREZ areas. An ERCOT report in 2006 – Analysis of Transmission Alternatives for Competitive Renewable Energy Zones in Texas – found that the existing transmission network was fully utilized and that new transmission lines were needed to support the transfer of wind energy and to grow Texas wind energy industry. 

The Public Utility Commission of Texas identified four general areas of wind capacity expansion: the Gulf Coast; the McCamey area, central-western Texas, and the Texas Panhandle, and has so far assigned approximately $5 Billion of transmission projects, with about $1.3 Billion going to Dallas-based Oncor.

According to the U.S. Department of Energy, the U.S. electric power infrastructure is quickly running up against its limitation. Bigger TVs, bigger houses, more air conditioners and more computers coupled with population growth have since 1982 increased the demand for electricity so much that it exceeds transmission growth by almost 25% per year.

“A new investment in transmission lines would save ratepayers $2 billion a year, reduce carbon dioxide emissions by 16% and create more than $5billion in economic development benefits for Texas”, Mr. Power said, adding that The Railroad Commission and Mr. Williams need to stick to their own jurisdiction, rather than making an inappropriate power play to earn favors with big oil.

Williams, the chairman of the Texas Railroad Commission, is eager to replace Sen. Kay Bailey Hutchison as she looks to unseat Gov. Rick Perry in the 2010 GOP gubernatorial primary, and did receive $484,570 of total $1,935,422 in campaign contributions from the oil & gas industry in the 2008 election.