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LCRA and CREZ
FAQ
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What is CREZ and what is its purpose?
A CREZ (Competitive Renewable Energy Zones) is an area where wind generation facilities will be installed and from which transmission facilities will be built to various other areas of the state to deliver renewable power to end-user consumers in the most cost-effective manner. The CREZ project is the Public Utility Commission (PUC) of Texas’ response to a public mandate to increase renewable energy in Texas to serve the electric needs in the state. The Texas Legislature passed Senate Bill (SB) 7 in 1999, which restructured the state’s electric industry and allowed LCRA to offer transmission services to other utilities throughout Texas. As a result of SB 7, the Texas Legislature established a renewable portfolio standard for electric power generation, with the intent to install more than 2,000 megawatts (MW) of generation capacity from renewable energy technologies by Jan. 1, 2009. Through Senate Bill 20 (SB 20), in 2005 the Texas Legislature raised the amount of renewable power generation to nearly 6,000 MW to be installed by Jan. 1, 2015. SB 20 further requires the PUC to set a target of 10,000 MW of renewable generation capacity to be installed by Jan. 1, 2025. Ultimately, the CREZ effort will significantly increase Texas’ current level of wind generation capacity to 18,456 MW.
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Who defined the different wind generation scenarios that the Electric Reliability Council of Texas (ERCOT) presented to the PUC for consideration?
The four wind generation scenarios, ranging from a total wind generation of slightly more than 12,000 MW to nearly 25,000 MW, were defined by the PUC for ERCOT to study in its transmission optimization study. ERCOT conducted extensive studies for alternatives to deliver wind generation from the CREZs located in West Texas and the Texas Panhandle to other parts of the state including Central Texas. In its report, filed with the PUC on April 2, 2008, ERCOT presented four scenarios of wind generation.
ERCOT worked extensively with stakeholders to develop and review input assumptions, analytical processes and proposed solutions. The study evaluated a variety of types of transmission solutions and hundreds of individual plans.
For Scenario 2, selected by the PUC as the CTP (CREZ Transmission Plan), the estimated cost of the transmission improvements is approximately $5 billion.
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Will these CREZ projects provide other benefits to the electrical grid above and beyond CREZ?
Yes. CREZ projects are primarily designed to move electricity generated by renewable energy sources (primarily wind) from the remote parts of Texas (i.e., West Texas and the Texas Panhandle) to the more heavily populated areas of Texas (e.g., Austin, Dallas-Fort Worth, San Antonio). However, several of these lines also will provide transmission infrastructure necessary to meet the long-term needs of the growing area west of the IH-35 corridor between San Antonio and Killeen. As load continues to grow in a 16-county region located west of Austin, existing transmission infrastructure will become inadequate to meet electric service reliability requirements. Past electric system studies, conducted by both LCRA TSC and ERCOT, have indicated the need for future transmission infrastructure similar to the facilities associated with the CREZ projects.
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Will LCRA TSC build any of the CREZ-related projects?
Yes. LCRA Transmission Services Corporation (LCRA TSC) received a signed written order on May 15, 2009, from the PUC for several transmission projects that are part of the commission’s CREZ project. LCRA TSC is one of eight transmission service providers (TSP) that received a signed written order, which starts the implementation phase of more than 2,000 miles of new transmission lines that will be built and several hundred miles of existing transmission lines upgraded to transport renewable power from wind-generator farms into more populated parts of the state. The initiative is a result of action by the PUC in its CREZ project.
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Where will the new transmission lines be located?
 The new CREZ transmission lines will be located in different locations between West Texas and the Texas Panhandle and the load centers in the Dallas-Fort Worth and Central Texas areas. The transmission lines that LCRA TSC has specifically been ordered to build will be located in West and Central Texas (from CREZs located in the McCamey and San Angelo areas) and eastward to load centers located in Central Texas. LCRA TSC is currently in the routing process or certification process for these new projects.
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When will these CREZ transmission lines be in operation?
It is anticipated that projects that involve the rebuilding or upgrading of existing lines or the addition of new circuits to existing structures will be completed fairly quickly and could be in service as early as 2009. However, larger projects that involve new lines built on new rights of way will necessarily have longer timelines. LCRA TSC anticipates completing all projects assigned to it by year end 2013.
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What is the timeline for CREZ projects?
Certificates of Convenience and Necessity (CCN) for CREZ Priority Lines are due by October 2009. Other CCNs for non-priority lines will be determined.
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Which new lines has LCRA TSC been awarded by the PUC, which lines will be upgraded or rebuilt, and which lines will have new circuits added?
In its May 15, 2009, Order on Rehearing in Docket 35665, the PUC ordered LCRA TSC to build and operate the following new transmission lines:
- * Gillespie to Newton, single circuit, double circuit capable 345-kV line; approximately 105 miles in length, located in Gillespie, San Saba, Llano, Burnet and Lampasas counties. The new line will run from the existing LCRA TSC Gillespie Station located near Fredericksburg to a new substation to be located near Lampasas. This new substation, to be called Newton, would be constructed by Oncor Electric Delivery. This project will require certification by the PUC, and the CCN application will be filed on Oct. 28, 2009.
- * Kendall to Gillespie, single circuit, double circuit capable 345-kV line; approximately 18 miles in length, located in Kendall and Gillespie counties. This project would involve the installation of a new transmission line from the existing LCRA TSC Kendall Station located just east of IH 10, near Comfort, to the existing LCRA TSC Gillespie Station near Fredericksburg. This project will require certification by the PUC, and the CCN application will be filed on July 6, 2010. This project will be combined with the McCamey D to Kendall project for purposes of regulatory approval.
- * McCamey D to Kendall, double circuit 345-kV line; approximately 137 miles in length, located in Schleicher, Sutton, Kimble, Kerr, Kendall, and Gillespie counties. This project would involve the installation of a new 345-kV transmission line from the new McCamey D Station, which will be located in northern Schleicher County, to the existing LCRA TSC Kendall Station located just east of IH 10 near Comfort. This project will require certification by the PUC, and the CCN application will be filed on July 6, 2010. This project will be combined with the Kendall to Gillespie project for purposes of regulatory approval.
- * Twin Buttes to McCamey D, single circuit, double circuit capable 345-kV line; approximately 31 miles in length, located in Schleicher, Irion, and Tom Green counties. This project would involve the installation of a new 345-kV transmission line from the existing LCRA TSC Twin Buttes Station located in Tom Green County to the new McCamey D Station, which will be located in northern Schleicher County. This project will require certification by the PUC, and the CCN application will be filed on Jan. 15, 2010.
- Mason to Pitsburg, 138-kV line; approximately 28 miles in length, located in Llano and Mason counties. This project involves the upgrade of the existing 69-kV transmission line that runs from the existing LCRA TSC Pitsburg Station located in Llano to the existing Central Texas Electric Cooperative Fort Mason Station located near Mason to 138-kV. This project does not require certification by the PUC.
- McCamey A to Odessa, single circuit, double circuit capable 345-kV line; approximately 50 miles in length, located in Upton, Pecos, Ector, Crane and Midland counties. This project would involve the installation of a new transmission line from the existing LCRA TSC North McCamey Station located near McCamey, to the expanded Oncor Odessa Station located near Odessa. This project will require certification by the PUC, and the CCN application will be filed on May 24, 2010.
- McCamey C to McCamey A, single circuit, double circuit capable 345-kV line; approximately 12 miles in length, located in Pecos County . This project would involve the installation of a new 345-kV transmission line from the existing LCRA TSC North McCamey Station located near McCamey, to the new McCamey C Station, which will be located south of McCamey. This project will require certification by the PUC, and the CCN application will be filed on July 26, 2010.
* Designated by the PUC as Priority Projects
LCRA TSC will rebuild the following transmission lines:
- CTEC Kendall to Kendall, single circuit 138-kV line; approximately 0.2 mile in length in Kendall County. This project would involve the rebuilding and relocating of the existing LCRA TSC 138-kV transmission line from the CTEC Kendall Station to LCRA TSC’s Kendall Station located just east of IH 10 near Comfort.
- Raymond Barker to Verde Creek, single circuit 138-kV line; approximately 2 miles in length in Kerr County. This project would involve the rebuilding of the existing LCRA TSC 138-kV transmission line from LCRA TSC’s Raymond Barker Station to BEC’s Verde Creek Station.
- Goldthwaite to Evant, single circuit 138-kV line; approximately 24 miles in length, located in Lampasas, Mills, and Hamilton counties. This project would involve the rebuilding of the existing LCRA TSC 138-kV transmission line from LCRA TSC’s Goldthwaite Station to LCRA TSC’s Evant Station.
LCRA TSC will add a second circuit to the following existing transmission lines:
- Divide to Twin Buttes, a double circuit capable 345-kV line; approximately 25 miles in length, located in Tom Green and Coke counties. This project would involve the installation of a second 345-kV circuit on the existing structures of the LCRA TSC Divide to Twin Buttes 345-kV transmission line from the existing LCRA TSC Divide Station to the existing LCRA TSC Twin Buttes Station. This project was previously certificated by the PUC.
- McCamey B to North McCamey, a double circuit capable 138-kV line; approximately 15 miles in length, located in Crockett, Upton, and Pecos counties. This project would involve the installation of a second circuit on the existing structures of the LCRA TSC North McCamey to West Yates 138-kV transmission line from the existing LCRA TSC North McCamey Station to the new LCRA TSC McCamey B Station, which is located approximately 15 miles south of the North McCamey Substation. The CCN for this project was approved by the PUC on July 9, 2009.
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Will new land have to be acquired for stations LCRA TSC proposes to build?
For the seven stations LCRA TSC has been ordered by the PUC to build (or modify if existing station), four have been identified as requiring new land. These are the Gillespie (existing station located near Fredericksburg will be expanded), the McCamey B (located near McCamey), the McCamey C (located near McCamey), and the McCamey D (located near Christoval) stations. At this time, no new land requirements have been identified for the North McCamey (located near McCamey), and Twin Buttes (located west of San Angelo) stations. The Kendall Station, which is located just off of IH 10 near Comfort, will not require the acquisition of new land; however, the station footprint will have to be increased in size to accommodate the CREZ projects.
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Does LCRA TSC pay property taxes on its transmission facilities?
Yes. LCRA TSC pays local property taxes on the transmission facilities, land and land rights that it owns. Since its creation in 2002, LCRA TSC has paid more than $39 million in property taxes to school districts and other local jurisdictions. LCRA TSC also pays state and local sales and use tax for goods and services defined as taxable by state law.
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What are LCRA TSC's steps for these projects?
In summary, the following steps will be taken by LCRA TSC for projects that require certification (i.e., the line needs PUC approval via the CCN process):
- The Study Area, which includes the beginning and end points for the project, is determined.
- Data about the Study Area is gathered and constraints are mapped.
- Preliminary alternative routes are developed, analyzed, and costs are estimated.
- When more than 25 landowners are involved, a public open house is held to get public input.
- Preliminary alternative routes are refined, considering the public’s input, and costs are updated.
- The consultant prepares an Environmental Assessment and Alternative Route Analysis (EA) and ranks the routes based on human and environmental impacts.
- LCRA TSC selects the preferred route, considering human and environmental impacts (from the EA) and considering other factors, including but not limited to cost, engineering and future projects.
- LCRA TSC submits an application to the PUC to amend its CCN (dates vary according to project; see above).
- LCRA TSC sends notice to potentially affected landowners on the same day it files the CCN application.
- Potentially affected landowners have 30 days to intervene in the PUC process.
- The PUC makes a decision within 181 days of filing to approve the application, approve it with modifications, or deny it.
- If the PUC approves the project, LCRA TSC will send a final notice to landowners indicating whether their property is on the approved route.
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What is the routing and approval process?
A routing process and PUC approval process is only required for some of the CREZ projects LCRA TSC has been awarded. New transmission lines on new right of way require PUC approval through its CCN process. Substation projects, upgrades to existing lines, and rebuilds of existing lines are typically exempt from the PUC CCN process and routing studies are not required. The placement of certain new circuits on existing transmission structures requires a new CCN, unless a prior CCN has been obtained or unless landowners crossed by the facilities have given prior consent.
 For new lines requiring a CCN and PUC approval, keeping residents and public officials informed is an important part of LCRA TSC’s process. During the early stages of the public involvement process, LCRA TSC will host an open house or a series of open houses for larger projects for affected landowners and interested parties for projects involving more than 25 landowners. The meeting(s) will allow residents to view maps and displays that explain the project and get answers to any questions they may have about the project. Members of the public also will be able to provide comments and input on the project. As the projects move forward, LCRA TSC will continue to provide information and address specific concerns of public officials, affected landowners, and the public.
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How does LCRA TSC identify and consider routes for the transmission lines?
LCRA TSC develops a study area that includes the end points of the transmission lines (i.e., stations). Next, LCRA TSC gathers available data, maps/aerial photos, input from federal/state agencies and local officials, and field reconnaissance. Using this information, LCRA TSC identifies environmental and land use constraints (e.g., subdivisions, parks, known cultural resource sites) within the study area. Several preliminary route segments connecting the end points are then identified and drawn to avoid these constraints as much as possible. These route segments are then presented to the public at open houses.
As the public input process continues, routes may be modified, eliminated, or added. Ultimately, the routes will be evaluated considering several factors, including public input, human/natural/cultural resources impacts, engineering, construction, operation, maintenance issues, and cost. This process will result in the identification of a preferred route and several alternative routes. These routes are then included in LCRA TSC’s Certificate of Convenience and Necessity (CCN) application to the Public Utility Commission of Texas (PUC). The PUC will make the final decision whether to approve the application and select which route will be built.
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What will the transmission line structures look like?
LCRA TSC is considering double-circuit-capable steel lattice structures as the typical transmission structures for the 345-kV projects described above. Other structures could include lattice poles or tubular poles. Right of way, schedule, and cost considerations will be used to decide the preferred transmission structure type. Typical transmission structures supporting 345-kV lines will be about 120 feet to 180 feet above the ground. Typical span lengths for projects like this range from 700 feet to 1,500 feet (about four to six structures per mile). The PUC will ultimately approve the structure type(s) for the project.
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How will I be affected if the route crosses my land?
 LCRA TSC will work with each individual property owner to purchase an easement to construct, operate, and maintain the new electric transmission lines. An easement gives a utility the right to use privately owned land for a specific purpose. However, the landowner retains ownership of the property. The easement is described in a legal document that is subsequently recorded in the county deed records and is available for public inspection. No aboveground structures may be located within the easement. However, normal agricultural and recreational activities such as farming, ranching, hunting, hiking, and bird watching may occur within the easement area.
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What is the process for defining or describing an easement?
Once the route for the transmission line is approved by the Public Utility Commission of Texas, LCRA TSC contacts the owner(s) of the property to be crossed by the transmission line. The landowner is notified of the need to conduct surveys on the property. The survey crews conduct a land survey to establish the boundaries of the easement. At the same time, environmental and cultural resource surveys are conducted. The easement area is defined and described by a registered professional land surveyor. This survey, referred to as a "metes and bounds" survey, is a particular description of the exact measurements of the land needed for the facilities.
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How much does LCRA TSC pay for an easement?
LCRA TSC pays fair market value for transmission line easements and supplemental easements. The fair market value is determined by conducting an appraisal of the easement to be obtained. A copy of the appraisal report is provided to a property owner at the time an offer is made to purchase the easement.
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What is eminent domain?
Eminent domain is the right granted to certain entities such as utilities and governmental bodies to acquire property for public use, as long as the property owner is paid “just compensation.” The power of eminent domain may be used for such things as schools, parks, roads, highways, fire and police substations, public buildings, and utilities. As a public utility, LCRA TSC has the right to exercise eminent domain. However, LCRA TSC is obligated to negotiate in good faith with property owners for the purchase of the property or easement rights it needs before invoking the authority of eminent domain.
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How wide is the easement for the tranmission line?
Easements for the type of transmission line and structures proposed by LCRA TSC for the 345-kV project are generally 100- to 160-feet wide. The exact width of the easement will be determined during the detail design for the project and will depend on structure placement and other engineering considerations.
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Will LCRA TSC clear the entire easement area?
LCRA TSC typically removes vegetation such as trees, shrubs, brush, and bushes along the easement. In environmentally sensitive areas, less and even minimal clearing may be needed. Some low-growing vegetation may be left in some portions of the easement, as long as it does not interfere with access to the easement area for purposes of construction, maintenance, and repair of the transmission line.
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How will my electric rates be affected by the construction of these transmission lines?
Transmission rates are regulated by the PUC. Transmission service providers (TSP) construct transmission lines and associated stations, then recover their transmission-related costs in rates charged to all TSPs in ERCOT. Due to the large amount of new lines and substations to be built and the additional costs to be incurred by TSPs that build, operate, and maintain the substations and new lines, electric customers may see an increase in their monthly electric bill, although it is impossible to know at this time exactly how much electric bills may increase.
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What about electric and magnetic fields?
Electric and magnetic fields (EMF) are found everywhere electricity is used, including the use of household appliances such as hair dryers, computers, televisions, and power lines. Some concerns have been raised in the past about potential health effects of EMF. Although there has been extensive scientific research, no direct link has been established between exposure to power lines and adverse health effects. Neither the state government nor the federal government has established any health standards relating to EMF. LCRA TSC stays abreast of scientific developments in the field.
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How important a factor is cost in LCRA TSC’s determination of potential routes?
The rules of the Public Utility Commission call for CREZ lines to be built “in a manner that is most beneficial and cost-effective to (electric) customers.” LCRA TSC will provide transmission line routes to the Public Utility Commission (PUC) that take into consideration both the desires of property owners, where possible, and the needs of all ratepayers. Cost remains a factor, but LCRA TSC does not rank all other factors secondary to cost. LCRA TSC wants to recommend routes that have broad support from landowners and the public while being as low-cost as possible.
Landowners have suggested a preference for monopoles rather than lattice tower structures. LCRA TSC recommends lattice towers as the primary structure to install for the CREZ transmission lines because of cost and material efficiency. However, LCRA TSC will continue to provide cost information to the PUC for alternative structures, including monopoles. Ultimately, the PUC will determine the final structure type and location for alternative structure use.
One stated desire is to route transmission lines along property lines to avoid “splitting” large tracts. This has always been an important consideration for LCRA TSC, but it adds costs and miles to the line. Longer lines bring greater visual impact and higher line losses (electricity that is made but is not delivered to customers because of the resistance of the lines to the movement of power). We understand now that the PUC has placed a greater emphasis on following property lines in CREZ transmission cases, so we will submit routes that accomplish this while also addressing the other PUC routing criteria.
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