Oncor has unveiled new electric infrastructure enhancement plans that in total call for more than $1 billion to be invested in the West Texas region over the next four years. These plans ensure a solid foundation for the influx of oil and natural gas production and all of the sectors that support it across the Permian Basin.
Oncor has already started work on integrating the enhanced plan with existing work that is underway. The enhanced plan work should begin early in 2015. Oncor will continue to work with all stakeholders to refine these plans and to gain approval from the appropriate parties for the mid and long-term aspects of the plans. Oncor intends for these enhancements to complement the results of ERCOT's recently announced West Texas Transmission Study.
Economic and population growth is booming across Texas, especially in West Texas, where the oil and gas industry continues to expand rapidly. According to the U.S. Census Bureau, Odessa and Midland are the second and third fastest-growing metro areas in the country and Odessa has the eleventh fastest growing economy in the country.
"With these comprehensive plans, we will be meeting the immediate as well as the long term needs of producers, businesses that facilitate this increase of energy production and the growing number of residents in thriving West Texas communities," Oncor Chairman and CEO Bob Shapard said. "By enhancing infrastructure and ensuring adequate capabilities, we are helping to protect the strong Texas economy and the vital natural resources for the entire country."
A large portion of the enhanced capital investment program will focus on the Permian Basin. Oncor's funding for this plan is expected to total approximately $1.2 billion and is incorporated in the forward-looking capital expenditure discussions contained in its Securities and Exchange Commission filings.