The price tag to build new power lines to bring wind power to Texas' biggest cities could range from $3 billion to $9 billion, according to a report filed by the grid operator with state regulators. Following legislation passed in 2005, the Texas Public Utility Commission began working to speed up construction of high- voltage transmission lines to handle a ramp-up of renewable power. Wind farms are located across sparsely populated west Texas, for from load centers in places such as Dallas, Houston and San Antonio.

After identifying the areas with the best potential for new wind generation, the commission ordered the Electric Reliability Council of Texas (ERCOT) to design routes to move 5,100 MW to 17,500 MW to the state's big cities.

ERCOT said in its report, filed in April, that two scenarios to gather and transfer 12,000 MW on 345 kV lines could cost from $2.95 billion to $3.78 billion, depending on the number of lines built.

A more ambitious plan to bring as much as 18,400 MW to load centers could cost $4.93 billion. The most expensive plan, which would bring more than 24,000 MW of wind generation to the eastern half of the state, could cost from $5.75 billion to $6.38 billion. Using larger, 765-kv power lines could raise that cost to as much as $9 billion, ERCOT said.

A cover story in the January 2007 issue of Power Engineering magazine ("The Coal-Wind Connection") explored the idea behind creating so-called competitive renewable energy zones (CREZs) in Texas. Under CREZ, zones were to be identified having at least 1,000 MW of renewable energy resources. New transmission corridors then would link those zones to power markets in ERCOT. The zones were to be determined based on optimal diversity, fuel savings, reliability and emission reductions.

CREZs were identified in wind-prone west Texas and between Corpus Christi and Galveston. The latter two sites encountered local opposition to resource development. New transmission and enhancements would bring wind power into load centers in central, north and east Texas.

The Texas approach appealed to the wind industry. The state reportedly received a $10 billion investment guarantee from wind energy developers in exchange for the state's assurance that necessary power transmission lines would be built.

Texas wind power: Is transmission relief just over the horizon?

Transmission companies interested in building new lines include units of Babcock and Brown, ITC Holdings Corp., FPL Group, AES, BP Wind, Shell WindEnergy, CenterPoint Energy and privately held Sharyland Utilities and Energy Future Holdings Corp.