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Sharyland to Acquire Transmission Assets from SPS to Facilitate Retail Choice, Ease West Zone Congestion

April 30, 2013

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Copyright 2010-13 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com

Sharyland Utilities, L.P., Sharyland Distribution & Transmission Services, and Southwestern Public Service Company have filed for approval at the Public Utility Commission of Texas of a transaction under which Sharyland will acquire certain SPS transmission assets to facilitate the introduction of retail choice to Sharyland's former Cap Rock service areas, and which will provide other ancillary benefits to the service area and ERCOT West zone.

Specifically, Sharyland will acquire an approximately 33-mile segment of SPS's 230 kilovolt (kV) Hobbs-Midland transmission line (and associated 230 kV to 138 kV transforming substation located in Midland County, Texas) and a 33-mile segment of SPS's 230 kV Grassland-Borden transmission line (and associated 230 kV to 138 kV transforming substation located in Borden County, Texas). The facilities were constructed to be capable of 345 kV operation.

The acquisition will facilitate the movement of certain of Sharyland's former Cap Rock service areas into ERCOT and the introduction of retail choice into the service areas, and obviate the need for certain contemplated transmission construction.

See prior story for more details on introduction of retail choice to Sharyland's Brady, Celeste, Colorado City, and Stanton divisions

In addition to allowing Sharyland to move the Borden to Midland Line to ERCOT and avoid the construction of unneeded transmission facilities, "purchase of SPS's Hobbs-Midland and Grassland-Borden Lines will provide significant regional benefits to ERCOT. Bringing 345 kV-capable transmission lines into ERCOT will strengthen the ERCOT grid in an area of West Texas that is experiencing rapid growth of oil and gas loads," the applicants said.

"Moving the SPS lines to ERCOT will also help alleviate congestion in the West Zone, improve reliability to customers in the area, and provide opportunities for wind generators in West Texas to interconnect with the ERCOT grid," the applicants said.

Additionally, the acquisition will allow Sharyland to maintain looped service to the Stanton and Colorado City divisions and improve reliability to Sharyland's customers.

Docket 41430

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