Texas Approves First Extra-High-Voltage Lines: What It Means for Your Electricity Rates and Grid Reliability in 2026

In November 2025, Texas regulators made a landmark decision to upgrade the state’s transmission backbone, approving the construction of its first-ever 765-kilovolt (kV) power lines—more than double the voltage of the typical 345-kV lines currently used across the ERCOT grid. This move is designed to meet surging electricity demand from booming industry and population growth, with a special focus on the Permian Basin, a key center of energy production, manufacturing, and data center expansion.​

Why This Upgrade Matters

Experts say Texas’s grid was facing costly congestion and reliability risks, making timely transmission investment essential for the future. The new 765-kV lines can carry four times as much power as their predecessors, enabling rapid transfer of energy from resource-rich regions to Texas’s biggest cities and industrial hubs.​

According to ERCOT’s Strategic Transmission Expansion Plan (STEP), adding these extra high voltage routes is projected to deliver:

• $229 million/year in consumer cost savings

• Substantial reductions in system congestion

• Tens of millions saved in annual power production costs—benefiting both businesses and residential consumers.​

The Consumer Impact: Reliability and Rates

For homeowners, these upgrades could translate into lower long-term costs, better protection against outages, and more flexibility for future renewable integration (wind, solar, battery storage). As Texas’s peak demand continues to break records—with some days already reaching 85,000 MW—the ability to shift energy across hundreds of miles is crucial for grid stability and customer peace of mind.​

The Permian Basin Reliability Plan, approved by the PUCT and mandated by House Bill 5066, also comes with a price tag: nearly $33 billion in infrastructure investment. Regulators argue this is value-driven, as congestion and “bottleneck pricing” have been hiking consumer bills for years. While some costs may be passed through to ratepayers, the long-term economic benefits are expected to outweigh upfront expenses.​

Expert Voices and Next Steps

Industry leaders—including the Texas Advanced Energy Business Alliance, major utilities (AEP Texas, LCRA, CPS Energy), and state legislators—call this “a monumental decision” for Texas’s grid and economy. Stakeholder feedback drove thorough review of both conventional and extra-high-voltage options, with the 765-kV route chosen for its superior reliability and capacity.​

Construction is scheduled to begin in 2026, with major lines stretching more than 370 miles from the Permian Basin to San Antonio and additional links planned statewide.​

What Consumers Should Do Now

With transmission upgrades underway, consumers should stay aware of how changing infrastructure may affect rates, energy choices, and the reliability of their power supply:

• Compare fixed-rate vs. variable-rate electricity plans as upgrades begin

• Watch for updates from ERCOT and the Public Utility Commission on infrastructure timelines and local project impacts

• Consider opportunities for home energy efficiency improvements and distributed generation (solar, batteries)

Reliable, modern transmission is the foundation for the Texas power market’s next decade. The 2026 rollout 765-kV lines offers big promise—if regulators, utilities, and consumers work together to maximize its benefits.

Take control of your energy future:

As grid upgrades transform the Texas market, now is the perfect time to review your electricity plan, compare fixed-rate options, and prepare your home for long-term reliability. Enter your ZIP code to see the best rates available in your area and lock in price protection for the years ahead.

Don’t wait for market changes to impact your bill—secure your savings and grid stability today!