To address its daunting transmission challenges, ERCOT turns to a complex planning process that brings together stakeholders, regulators, and technical experts
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With the arrival of new energy-hungry cryptocurrency mining operations and data centers — not to mention the state’s burgeoning Permian Basin petrochemical activities — ERCOT is experiencing a statewide surge in power demand like never before. This explosive growth has created daunting transmission challenges. How much more is needed and where? And at what cost?
To address these challenges, ERCOT, also known as Electric Reliability Council of Texas, turns to a complex planning process that brings together energy market groups, regulators, and technical experts. At stake is the grid’s power reliability, the state’s economic viability, local property rights, and billions of dollars in ratepayer money. To help understand this important process, ERCOT recently released a “Trending Topics” primer on transmission planning. You can find it here on the ERCOT website.
Here are some key points:
Process Background
ERCOT does not own, build, or maintain the transmission lines—this is done by Transmission Service Providers. Instead, ERCOT oversees the transmission planning process by way of its Regional Transmission Plan and the related Regional Planning Group. ERCOT also coordinates with TSPs and other stakeholders to evaluate projects for the system’s long-term and immediate transmission needs.
How does the process work?
Annually, ERCOT creates a six-year roadmap for addressing the system’s transmission needs. This is the Regional Transmission Plan, referenced above, and it identifies where new transmission lines and upgrades are needed. The RTP is the result of a coordinated planning process performed by ERCOT’s Grid Planning department with extensive input by Transmission Service Providers and other stakeholders.
What is the Regional Planning Group (RPG)?
The RPG is a membership-based group led by ERCOT and is responsible for reviewing transmission projects proposed by Transmission Service Providers from the Regional Transmission Plan as well as other proposed transmission projects. ERCOT staff works directly with RPG members to assess transmission needs, implement solutions, address potential transmission constraints, and to facilitate the interconnection of new generation resources. Participation in the RPG is required of all TSPs and is open to all market participants, consumers, other stakeholders, and Public Utility Commission staff.
What is ERCOT’s overall transmission planning timeline?
The timeline for implementation depends on the scope of the project and whether the project must submit a Certificate of Convenience and Necessity application to the PUC. Construction on those projects required to submit a CCN can only begin after the CCN is approved by the PUC.
What transmission projects were proposed out of the 2024 RTP?
The unprecedented load growth in the 2024 Regional Transmission Plan prompted discussions about introducing a 765-kV backbone infrastructure to the ERCOT Transmission Grid. These lines have significantly more capacity than the 345 KV transmission lines more commonly deployed in Texas. The following 765-kv transmission projects have been identified through the ERCOT planning process:
- Three 765-kV Extra-High Voltage (EHV) electric transmission lines into the Permian Basin area as identified by the Permian Basin Reliability Study. In April 2025, the PUCT approved these lines, known as Permian Basin Import Paths.
- Two 765-kV EHV transmission line projects to connect the western and eastern loop point-to-point electrical connections to the RPG for review.
Western Loop: Oncor and American Electric Power (AEP) Drill Hole to Sand Lake to Solstice 765-kV Line Project.
Eastern Loop: AEP, CPS Energy, Oncor, and CenterPoint (CNP) Texas 765-kV STEP Eastern Backbone Project.
Want more information? Find the ERCOT Trending Topics primer here.