LCRA TSC and Oncor Build $477.6M 345-kV West Texas Line
- News Policy & Markets
Marin Holt
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- 6 minutes read
- $477.6 million Tier 1 ERCOT project
- 345-kV double-circuit, approximately 75 miles
- Six counties: Crane, Crockett, Pecos, Reeves, Upton, Ward
- LCRA TSC + Oncor co-developers
- Construction started October 2024; energization June 2026
- Driven by Delaware Basin industrial load growth above 4,000 MW
LCRA TSC (Lower Colorado River Authority Transmission Services Corporation) and Oncor Electric Delivery are constructing a $477.6 million, 345-kilovolt double-circuit transmission line across six West Texas counties to address reliability constraints driven by rapid industrial load growth in the Delaware Basin. The project, designated Tier 1 critical status by ERCOT in August 2022, runs approximately 75 miles between substations in Crane, Crockett, Pecos, Reeves, Upton, and Ward counties. Energization is targeted for June 2026.
Critical Perspective
The $477.6 million cost for 75 miles of 345-kV double-circuit line equates to approximately $6.4 million per mile, well above typical 345-kV transmission construction costs of $2 to $4 million per mile in less remote terrain. ERCOT’s fast-tracked approval compressed the review timeline for a project crossing six West Texas counties, where right-of-way acquisition across private ranch land and Permian Basin oilfield infrastructure introduces schedule risk. The Delaware Basin’s electrical demand growth exceeded 4,000 MW, driven primarily by oil and gas production that is cyclical and price-sensitive; a sustained crude price decline would reduce the load growth that justifies this investment. Both circuits share the same tower structures and right-of-way, meaning a single catastrophic event, such as a tornado or wildfire, eliminates the N-1 redundancy the double-circuit design is intended to provide.
What Is Being Built
The North McCamey to Sand Lake project adds a double-circuit 345-kV segment to the ERCOT transmission backbone in West Texas. LCRA TSC is the lead developer and project sponsor; Oncor is the co-developer and will own its portion of the line. Construction began in October 2024. As of October 2025, crews are installing structural foundations, erecting towers, and stringing wire across the approved route corridor. The corridor length varies from 87 to 107 miles depending on the route segment, with the substation-to-substation span measuring approximately 75 miles. The project is funded as a Tier 1 ERCOT reliability project, meaning costs are allocated across the ERCOT grid as a reliability necessity rather than borne solely by requesting generators.
Why It Matters
The Delaware Basin in West Texas has seen concentrated oil and gas development that has driven electrical demand growth well above 4,000 MW , a threshold that triggered ERCOT’s reliability project designation. Without additional 345-kV capacity, the existing transmission network in this part of ERCOT lacks the headroom to support either the industrial load already operational or the generation projects seeking interconnection in the area. The North McCamey to Sand Lake line provides both: additional import capacity to serve growing industrial demand and an export path for new generation connecting in West Texas. The project reflects a broader pattern in ERCOT where transmission buildout is lagging behind load and generation growth, with the Niskanen Center noting in 2025 that despite record interconnection activity, the transmission gap was not closing fast enough to keep pace with demand.
