Brazos Electric Power Cooperative's Transmission and Member Extension Capital Budget Update

Strategic Insights -

Brazos Electric Power Cooperative's Vice President of Engineering and System Planning, David C. Albers, has submitted a rebuttal testimony to the Public Utility Commission of Texas, updating the cooperative's five-year transmission and member extension capital budget for 2026-2030. This update is essential as the rates established in the current proceeding will likely be in effect until 2026. Brazos Electric faces substantial load growth due to large load interconnection requests and a large number of generation interconnection requests, making it crucial to maintain financial support through a 0.50x debt service coverage (DSC) adder.

Key Takeaways:

  • Brazos Electric Power Cooperative's five-year transmission and member extension capital budget for 2026-2030 has been updated to reflect the cooperative's growing load and interconnection requests.
  • The update includes a discussion on the significant number of additional projects that could require Brazos Electric to employ more capital than initially planned.
  • David C. Albers, Vice President of Engineering and System Planning, testifies that Brazos Electric is facing the greatest potential for substantial load growth in its history, emphasizing the need for continued financial support through a 0.50x debt service coverage (DSC) adder.
  • The cooperative coordinates with the Electric Reliability Council of Texas (ERCOT) to develop transmission plans that ensure safe and reliable service for its members and other wholesale transmission service customers.
  • Brazos Electric develops a five-year transmission budget annually based on regulations, planning procedures, system testing results, and annual load forecasts of its members or other transmission service customers.
  • The 2025 transmission budget presented in the rebuttal testimony identifies transmission improvements and resiliency efforts planned for construction between 2026 and 2030.

Statistics:

  • The five-year transmission and member extension budget for 2026-2030 includes planned additions and upgrades for the years 2025-2029.
  • Brazos Electric is facing the largest number of generation interconnection requests in its history.
  • The cooperative is experiencing the greatest potential for substantial load growth related to large load interconnection requests.
  • The DSC adder of 0.50x is essential for Brazos Electric's continued financial support.

Sources:

  • Application of Brazos Electric Power Cooperative, Inc. for Authority to Change its Transmission Cost of Service and Wholesale Transmission Service Tariff Rebuttal Testimony of David Albers, P.E. #73263
  • Public Utility Commission of Texas (PUC) Docket No. 57131