Austin Energy warns transmission upgrades take years; ERCOT outage windows and permitting slow projects

David Tomchessen, Austin Energy’s vice president of electric system engineering, briefed the Utility Oversight Committee on May 19 about the utility’s transmission holdings and the ERCOT planning and permitting timeline for upgrades.

Tomchessen said Austin Energy owns substantial transmission assets at multiple voltage levels (69 kV, 138 kV and 345 kV) and that many projects to increase import capacity into Austin are likely to be classified as Tier 1 by ERCOT — the most expensive and complex category. He explained that ERCOT endorses projects based on system-wide cost and impact and that the Public Utility Commission of Texas may require a certificate of convenience and necessity (CCN) for projects that need easements outside city limits.

Why it matters: Staff said Austin has roughly 800 MW of local generation against a roughly 3,100 MW peak and therefore must increase import capacity to sustain growth and electrification. Transmission upgrades are essential to import wind and solar resources that would lower local supply costs and support decarbonization.

Key constraints: Tomchessen listed reasons upgrades take years: National Electric Reliability Corporation (NERC) protections (sensitivity about publishing detailed infrastructure information), ERCOT/TSP prioritization and endorsement processes, PUC CCN hearings and route decisions, right‑of‑way and easement acquisition, supply‑chain lead times (equipment) and, critically, restrictions on construction outages. He said ERCOT has an effective moratorium on planned transmission outages each summer (May 15–Sept 15) and increasingly limits outages at other times, which forces phased work and can add years to schedules.

Practical impacts: For in‑place upgrades (reconductoring or voltage increases), crews typically need continuous multi‑month windows to replace lines safely; when ERCOT denies those outages because of contingency risks, projects are broken into multiple phases with long gaps. Tomchessen said Austin has about $500 million of transmission projects in its five‑year plan and that roughly one‑third of that spending is aimed at improving import capacity.

Committee questions and follow-up: Council members asked whether Austin Energy can propose transmission builds anywhere in Texas; Tomchessen said AE can propose projects but typically would rely on TSPs and ERCOT/PUC approvals to execute major long‑distance builds. He also noted that larger, multi‑hundred‑mile projects such as the proposed 765 kV lines are long‑term and that routing and PUC decisions will affect feasibility.

Next steps: Tomchessen said the utility will continue priority planning, participate in ERCOT processes, and pursue corridor upgrades where they provide the most import benefit; he warned that contractors and material lead times remain longer than pre‑COVID norms and that securing required construction outages will be among the most persistent challenges.