Houston Region Import Capacity Project
Planning for Reliable Power
Houston Region Import Capacity Project
Overview
 The Houston region is experiencing significant economic growth in the
residential and industrial sectors.
 Economic and population growth could greatly strain the Houston region’s
existing electric infrastructure, including the power grid.
 To meet a growing demand for electricity in the coming years, new
transmission lines must be built now to access power located in other parts of
the ERCOT region.
 Failure to do so may limit the Houston region’s ability to grow and prosper.
 Additional benefits for the electric transmission grid in the ERCOT region will
also be achieved.
We must act now to secure reliable power for the Houston Region.
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Houston Region Import Capacity Project
Summary

The Electric Reliability Council of Texas (ERCOT) has acknowledged a need for an additional “import path” using a
high-voltage transmission line into the Houston area.
o “Three of the highest congested areas relate to importing power into the Houston area from the north” 2012 ERCOT Constraints and Needs report
o “Houston region will need at least one additional import path in the next ten years” – 2012 ERCOT LongTerm Study
o “Retirement of legacy gas-fired power plants would increase need for expanded import capacity within the
Dallas/Fort Worth and Houston regions” – 2012 ERCOT Long-Term Study

CenterPoint Energy has performed a study to consider the import needs for the Houston region based on
planning criteria for ERCOT and the Company. The study indicates that there is a need for additional import
capacity starting in 2018 to ensure reliable power.

CenterPoint Energy considered 25 alternatives to address the import needs, and it ultimately proposed three
alternative projects for consideration.

Public comments are due on August 16, 2013, to the ERCOT Regional Planning Group, who will consider the
study.

ERCOT will either select one of CenterPoint Energy’s three proposed projects, select one of the other 22 options
studied, or ERCOT will develop and recommend an alternative option that it develops.
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Key Drivers of the Houston Region
Import Constraint
 A thriving economy. The Houston region’s business-friendly environment has sustained
and will continue to sustain load growth. Houston and surrounding areas have been
growing at a steady pace equaling or exceeding the national average electrical usage
growth rate.
o
Additional load adds stress to the import constraint
o
The only industrial load increases modeled are the new load for which firm commitments had been made at
the time the studies were prepared.
 Sufficient generation has not been added to keep up with growth. As a result, we
have to depend on importing significant amounts of power from other ERCOT regions
to maintain reliable power.
o
Consistent with ERCOT Planning Guides, only new generating units that have made firm commitments were
modeled in the study.
o
Over the past several years, announcements to build new generating units in the Houston region have been
made, but very few have followed through with firm commitments and actual construction.
o
The study assumes all mothball units are in service and there are no retirements of existing generating units
over next 5 years.
 The capacity to import power into the Houston region is reaching maximum
threshold.
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Houston Region Import Capacity Project
Proposed Interconnection Alternatives
StudyOption
Option
Import
Import New 345
345kV
kV
Increase
Increase Structure Cost
Cost($MM)
($MM2) MW/$MM
MW/$MM3
1)
(MW
(MW)
Miles
Option
Option
15: 1:
Twin
Twin
Oak-Zenith*
Oak-Zenith*
2701
2529
Option
Option
24: 2:
Ragan
Ragan
Creek-Zenith**
Creek-Zenith**
1960
1981
Option
Option
25: 3:
Limestone-Ragan
Limestone-Ragan
Creek-Zenith**
Creek-Zenith**
2532
2709
1
2
3
110
117
516
462
4.905.85
65
69
375
297
5.286.60
148
130
719
532
3.774.76
Grant Substation
Megawatts
Millions
Megawatts per Million Dollars
* Twin Oak Substation is owned by Oncor Electric Delivery Company.
** Ragan Creek Substation is a proposed CenterPoint Energy 345 kV substation to be constructed as
part of the project.
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Houston Region Import Capacity Project
Proposed Timeline
Houston Region Import Capacity Project
Duration
Submit Study to ERCOT
Start
Finish
July 2013
July 2013
ERCOT Review of Project
6 Months
July 2013
January 2014
Routing Study, Environmental
Assessment, and Public Meetings
9 Months
January 2014
September 2014
File CCN/PUCT Review
6 months
October 2014
March 2015
March 2015
March 2015
PUCT Approval
ROW Activities
12 months
April 2015
April 2016
Transmission Construction
15 months
May 2016
July 2017
Acronyms
ERCOT
CCN
PUCT
ROW
Electric Reliability Council of Texas
Certificate of Convenience and Necessity
Public Utility Commission of Texas
Right-of-Way
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Houston Region Import Capacity Project
Conclusion
 CenterPoint Energy submitted the study to ERCOT for review and approval in July of
2013, recommending three alternatives for increasing Houston import capacity to
achieve reliable power for future growth.
 ERCOT will perform an independent analysis to determine one final recommended
project.
Grant Substation
 To meet ERCOT Planning Criteria and the future growth needs of the Houston
region, the project needs to be completed before the start of the 2018 summer
season.
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