An old business adage says, “Poor planning on your part does not necessitate an emergency on mine.” But when it comes to electric transmission infrastructure, inadequate planning has absolutely resulted in an emergency for all Texans. Most important, poor planning has driven up electric bills through transmission congestion costs. But it doesn’t have to be this way..
About 20 years ago, Texas invested heavily in transmission lines to lower energy costs, and it worked. But despite rapid growth, we haven’t kept up with investment in our grid. It’s time to start building again.
Congestion happens when power lines hit capacity limits and can’t move any more electricity, forcing the use of higher-cost generators instead of cheaper alternatives. However, strategic transmission upgrades can alleviate this burden.
From 2021 to 2024, transmission congestion within the Electric Reliability Council of Texas management zone cost consumers over $7 billion according to a report from Grid Strategies. Those are costs that ultimately ended up on electric bills.
Texas has faced this challenge before. In the early 2000s, congestion between West and Central Texas blocked low-cost wind power. The $6.9 billion Competitive Renewable Energy Zones initiative solved this by adding 3,600 miles of high-voltage transmission lines. This project alleviated congestion and facilitated the addition of massive amounts of new low-cost generation capacity, solidifying Texas’ position as a leader in affordable energy.
The lines we built paid for themselves in under a decade, unlocking local economic growth, saving Texans billions of dollars, and reducing wholesale electricity market costs. With an expected service life of 50+ years, these lines will continue to deliver returns to Texans many times over their initial cost.
A recent report from researcher Joshua D. Rhodes at the University of Texas at Austin estimates that generation facilities enabled by these lines will contribute nearly $50 billion in local taxes and landowner payments over their lifetimes, reducing the need for tax hikes and even allowing local tax reductions.
As costly as today’s congestion is, it could soon get worse. The age of AI is here and proving to be very energy hungry indeed. Without expanded transmission, Texas risks missing out on economic development opportunities and worsening congestion-driven price hikes. We stand to lose twice if we fail to act. Beyond making economic sense for our state, proactively deploying the infrastructure we need also aligns with the Trump administration’s energy dominance goals. Deploying transmission infrastructure is vital for national security and economic strength.
Energy only benefits us if we can get it to where it needs to go. History proves that smart investments in transmission pay off. By acting now, Texas can reduce congestion and pave the way for a more robust, secure and cost-effective energy future.
Matt Welch is the state director of Conservative Texans for Energy Innovation.
