Build the Grid. Protect the Land. Keep Texas Free.

Estimated Time to Read: 6 minutes

Texas must expand transmission infrastructure to support economic growth, energy leadership, and rising industrial demand without compromising private property rights or limited government principles.

Texas has long stood apart as a model for economic freedom, energy leadership, and opportunity. Its success has not been accidental. It is the product of deliberate policy choices such as low taxes, reasonable regulation, strong property rights, and a commitment to free enterprise.

Today, those strengths are being tested by one of the most consequential infrastructure debates in recent state history. The expansion of high voltage transmission lines under the Permian Basin Reliability Plan has sparked serious questions about grid reliability, economic growth, and the role of government in infrastructure development.

At its core, the issue is straightforward. Texas is growing rapidly. The Permian Basin remains the engine of American oil and gas production, and that production increasingly depends on reliable electricity. At the same time, Texas has become a magnet for large-scale industrial users, particularly data centers and advanced computing operations, all of which require enormous and consistent power supply.

The Texas electric grid must evolve to meet that demand. The question is not whether transmission infrastructure is needed. The question is whether Texas can expand its electric grid without undermining the principles that made it successful.

The Case for Building

The Permian Basin Reliability Plan was authorized through House Bill 5066, authored by State Rep. Charlie Geren (R-Fort Worth) in the 88th Legislative Session (2023), which directs regulators to identify areas where transmission capacity is insufficient to meet both existing and projected demand. This directive reflects a reality Texas cannot ignore. Without adequate transmission infrastructure, economic growth and grid reliability will suffer.

Oil and gas producers in West Texas are increasingly electrifying operations to improve efficiency and reduce costs. Without access to reliable electricity, production could be constrained, threatening not only regional output but also Texas energy leadership at the national level.

At the same time, the rise of data centers presents both opportunity and strain on the Texas electric grid. These facilities bring jobs, capital investment, and long-term economic development. However, they also require immense and uninterrupted power. If Texas cannot provide reliable electricity, those investments will move elsewhere.

Transmission infrastructure is the backbone of the electric grid. It allows electricity generated in one part of the state to reach demand centers in another. Without sufficient transmission capacity, supply and demand cannot connect efficiently. This leads to congestion, higher electricity costs, and an increased risk of outages.

The case for expanding Texas transmission infrastructure is strong. It supports economic growth, improves grid reliability, and ensures Texas remains competitive in a rapidly evolving energy market.

The Risks of Getting It Wrong

Expanding transmission infrastructure carries significant risks, and those risks extend beyond financial cost.

The current plan includes some of the largest transmission lines ever proposed in Texas, including 765-kilovolt lines designed to move large amounts of electricity across long distances. These projects are expensive, and the cost of transmission expansion is ultimately passed on to ratepayers.

This raises an important question. Are Texans paying for infrastructure that meets current energy demand, or are they funding projects based on uncertain future projections?

House Bill 5066 allows planners to consider forecasted load, including demand that is not yet under contract. While forward-looking planning can be useful, it introduces uncertainty. If those projections fail to materialize, Texans could be left paying for underutilized transmission infrastructure.

The impact on private property rights is even more significant.

Transmission lines require wide corridors that often stretch hundreds of feet across private land. These corridors are frequently secured through eminent domain. While landowners may receive compensation, the loss of control over private property is permanent.

Texas Policy Research (TPR) has emphasized that private property rights are the foundation of a free society. This principle is not only philosophical but also practical. Strong property rights encourage investment, provide stability, and reinforce individual liberty. When infrastructure projects rely heavily on eminent domain, they challenge that foundation.

Liberty Principles and the Texas Model

TPR evaluates public policy through five Liberty Principles, including limited government, free enterprise, private property rights, individual liberty, and personal responsibility. Applying these principles to Texas transmission expansion provides a clear framework for evaluating policy decisions.

Limited government requires that state involvement in transmission planning be necessary and restrained. While coordination may be required, it should not lead to an open-ended expansion of regulatory authority.

Free enterprise suggests that market forces should guide infrastructure investment whenever possible. Transmission projects should respond to real demand rather than speculative projections.

Private property rights require that eminent domain be used sparingly and only when clearly justified. Landowners should not carry a disproportionate burden for infrastructure that primarily benefits large-scale users.

Personal responsibility implies that those who drive increased electricity demand, including data centers and industrial users, should bear a fair share of the infrastructure costs associated with that demand.

Individual liberty ties these principles together. Public policy decisions should always be evaluated based on their effect on individual freedom and property rights.

Finding the Balance

The challenge facing Texas is not unique. Growing economies must invest in infrastructure. The difference lies in how that investment is approached.

Texas has historically succeeded by maintaining a careful balance between economic growth and limited government. It has encouraged development without excessive regulation, supported infrastructure without overreach, and allowed markets to function without unnecessary interference.

That balance must continue.

A Texas-centered approach to transmission expansion would prioritize projects tied to demonstrated demand, particularly in high-growth areas such as the Permian Basin. It would ensure that routing decisions are transparent and that impacts on landowners are minimized. It would align costs with those who benefit from the infrastructure and avoid overbuilding based on speculative projections that distort market signals.

This approach does not reject transmission infrastructure. It ensures that infrastructure expansion remains consistent with the principles of free enterprise and limited government.

Conclusion

Texas stands at a critical moment in its approach to energy infrastructure and economic growth.

The state has an opportunity to strengthen its electric grid, support its energy sector, and attract future investment. However, it must do so in a way that protects private property rights, limits government overreach, and maintains the integrity of market-driven growth.

The Permian Basin Reliability Plan represents both opportunity and risk. If implemented correctly, it can reinforce Texas energy leadership and ensure long-term grid reliability. If implemented poorly, it could expand government authority, weaken property rights, and impose unnecessary costs on Texas ratepayers.

The path forward requires discipline and adherence to core principles.

Texas must insist on infrastructure that is necessary, accountable, and aligned with liberty principles. That is how Texas has led in the past, and it is how Texas will continue to lead in the future.

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