What will it cost to install new transmission for the CREZ?
The CREZ plan will cost approximately $4.93 billion to transport more than 11,500 MW of new wind power from five wind-rich regions of West Texas to more populated regions of the state. Once these transmission lines are built, consumers are expected to save $3.4 billion per year on electricity, plus $1.68 billion in fuel cost savings. In general, as the wind generation penetration increases, it displaces the higher cost of thermal generation and tends to put downward pressure on all energy prices. GE Energy, Analysis of Wind Generation Impact of ERCOT Ancillary Services Requirements, page 9-9, March 28, 2008, Therefore, for a one-time cost of about $5 billion spread out over many years, we will reap annual savings that far exceed the cost of building transmission capacity year after year.
