Following Hurricane Beryl hitting the Houston area on July 8, Entergy Texas officials have begun focusing on funding requests in 2024 from the Public Utility Commission to fund nearly $2.3 billion in new projects to increase resiliency and energy production in Southeast Texas.

What happened?

As a result of Beryl, Entergy reported damaged infrastructure as a result of fallen trees, which led to the loss of:

• 806 poles
• 400 transformers
• 979 crossarms
• 150 miles of wire

“We have a vegetation management program that has tripled in the last seven years, but it primarily addresses branches and tree limbs within 5 to 10 feet of the lines,” said Eliecer Viamontes, president and CEO of Entergy Texas. “Our program is designed to enhance day-to-day reliability, but it's not meant to address large, healthy trees that pose a resiliency risk.”

Viamontes said the company’s projects include moving more transmission lines underground and building two new power plants, but other experts said solving the vegetation problem will not be simple.

“The challenge we run into is we like trees,” said Tom Overbye, director of Texas A&M University's Smart Grid Center. “A lot of times there isn't a lot of space between the distribution line, and people's backyards and front yard, ... so it's a balancing act.”

What’s being done?

One of the improvements includes constructing two new power generation stations in Port Arthur and Cleveland, which were announced prior to Beryl. The plans submitted to the PUC also include a pilot program for a “self-healing microgrid,” which would use generation power to automatically redirect power when a line goes down.

The funding from the project is expected to come from both federal grants and the Texas Energy Fund, which voters approved to create in November, and contains $5 billion for statewide energy improvement and resiliency projects. Texas legislators have put a renewed focus on energy infrastructure as special hearings and a PUC investigation was called following the widespread and extended outages.

However, Viamontes said the fund is only the beginning, and results of the projects may not be seen for several years.

How it works

The process for making grid improvements can take several years, as projects must first undergo a series of approvals with the PUC to receive funding and begin work.

• An energy company first sends a plan to the Public Utility Commission.
• The PUC reviews the plan. If denied, the plan returns to the energy company. If approved, the energy company applies for a loan with the PUC.
• Loan funds are disbursed following legislative approval every two years when the Legislature meets. The next session begins Jan. 14.
• Work begins on the energy projects.

“These accelerated resiliency investments take time,” Viamontes said. “Our proposal covers the first three years, while other utilities, particularly in Florida, have been doing this for almost two decades. It's a long-term commitment, and we need state support to get started and make these investments without deviating from the multiyear commitment.”