Solution

Texas has longterm growth. Its grid is planned a few years at a time.

ERCOT’s CEO says the grid “has really become fully utilized.” When power can’t get from where it’s made to where it’s needed, Texans pay for it in congestion costs. The rules for deciding which new lines are worth building haven’t kept up.

The rules look three years ahead.

ERCOT judges the economic benefit of a new line over three years. Other grid operators look at least 15. Between 2015 and 2024, only 2 of 24 recommended transmission projects qualified under ERCOT’s economic planning rules. Meanwhile, Generic Transmission Constraints (GTCs), limits on how much power can flow across parts of the grid, grew from 7 in 2015 to 22 by early 2025, and they keep available power from reaching customers.

Plan the grid like the long-term investment it is.

Measure what a new line saves over its whole life, so worthwhile projects can move forward, lowering congestion costs and strengthening the grid in extreme weather. And set a clear path to clear out GTCs, so today’s bottlenecks don’t become permanent.

in congestion costs on the Texas grid, 2015–2024
$15B
recommended projects qualified, 2015–2024
2 of 24
grid bottlenecks (GTCs), 2015 to early 2025
7 → 22

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Study / Report General

Study: The Potential Impact of Inadequate Electric Transmission in Texas

The Perryman Group study finds that inadequate electric transmission infrastructure in Texas could cost the state up to $159.8 billion in lost economic output and nearly 696,500 job-years through 2040, with the losses far exceeding the $12.66 billion investment needed to prevent these negative impacts.

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