AUSTIN, Texas – The Electric Reliability Council of Texas (ERCOT), which manages power for about 90% of the state’s electric load, received a D- grade in 2025, according to a Feb. 2025 transmission planning report by Grid Strategies and the nonprofit advocacy group Americans for a Clean Energy Grid. 

Texas’ D- grade for its electric transmission planning and development, ranks among the lowest-performing regions in the country as electricity demand from data centers, industry and population growth accelerates.

Texas D- for grid planning

Photo courtesy: Grid Strategies/Americans for a Clean Energy Grid

What they’re saying:

The grade reflects weaknesses across multiple categories, particularly Texas’ lack of interregional transmission planning and limited long-term, scenario-based grid planning, the report said. 

This is because Texas operates its own electric grid through ERCOT, which connects more than 54,000 miles of transmission lines and over 1,200 generation units, but is largely isolated from the rest of the U.S. power system. 

“Across most regions, interregional coordination relies on reliability-focused studies rather than proactive, scenario-based planning with durable selection and cost-allocation frameworks. As a result, interregional transmission remains one of the weakest elements of the national planning landscape, with planned capacity generally falling short of estimated need.”

ERCOT’s isolated grid and challenges

AUSTIN, TEXAS – FEBRUARY 19: Electric power lines run through a neighborhood on February 19, 2021 in Austin, Texas. Amid days of nationwide frigid winter storms in which 58 people died, more than 4 million Texans were without power for much of the pa

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Since the Texas grid is electrically separate from the Eastern and Western interconnections, the report cites ERCOT’s failure to routinely plan transmission links with neighboring regions, limiting the state’s ability to import or export power during extreme weather or system emergencies.

Dig deeper:

Texas’ transmission planning has also relied heavily on reliability-only studies rather than long-term, multi-scenario planning that accounts for future energy demand changes, extreme weather and economic benefits, the report said. 

Indicating that many large transmission projects approved in Texas are developed to address immediate reliability needs, rather than as part of a comprehensive planning framework. 

The delayed Permian Basin Reliability Plan

The report cites the Permian Basin Reliability Plan that was approved in Oct. 2024 to maintain reliability and connect significant electronic loads in the Permian Basin, primarily based on recent studies of oil, gas and data center loads, as well as address load growth in eastern Texas.

When that plan was released in July 2024, it identified two options; a 345 kV portfolio and a 765 kV portfolio. The Public Utility Commission of Texas (PUCT) approved the plan just three months later. 

The plan was passed without a decision on which portfolio to use until April 2025, highlighting transmission projects that were planned largely in isolation and do not include a full assessment of long-term benefits over the lifetime of the infrastructure.

“Accelerating demand growth is compressing planning timelines and raising the stakes for regions that continue to rely on reactive approaches,” the report said, noting that Texas’ current planning practices may not be sufficient to maintain reliability and control costs over the long term.

Comparing Texas’ progress to national standards

Big picture view:

While Texas showed some progress in regional transmission development within the state, those efforts were not enough as the report assigned Texas a C for regional planning, an F for interregional planning, a B for stakeholder engagement, and a C- for outcomes, producing an overall D-, a drop from the state’s D+ rating in 2023.

Photo courtesy: Grid Strategies/Americans for a Clean Energy Grid

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Nationally, the report found modest improvements in transmission planning in several regions following federal reforms adopted for the purpose of innovating in regional planning. But the report warns that regions relying on incremental or siloed approaches, including Texas, risk falling further behind as electricity demand surges.

HOUSTON – Texas families can begin applying today, Feb. 4 at 9 a.m., for the state’s new Education Savings Accounts (ESAs), also known as the school voucher program, which runs through March 17.

State officials said that this is not first-come, first-served, but parents and guardians should have key documents ready before they start the application.

While the window is open now, if the number of applicants exceeds available funding, capped at roughly $1 billion, the state will prioritize applicants based on income and special-needs status. It may conduct a lottery to allocate funds.

Here’s what families should prepare before applying online:

• Valid ID and Social Security numbers for parents and children — proof of U.S. citizenship or lawful residence is also required.

• Income documentation, such as recent tax returns, because it is partially determined by household income.

• Documentation of special needs (like an IEP) if applying under that category.

• A plan for where the voucher money will go — funds are sent directly to registered schools or providers, not to families.

Families whose applications are approved can receive up to about $10,400 per student, with higher amounts, up to around $30,000, available for students with documented special needs.

About 1,600 private schools across Texas, including many in the Houston area, have already opted in to participate, and families must select one eligible school in the portal if they plan to use the funds for private education.

State officials say the application should take about 10 minutes to complete, and the portal will remain open until 11:59 p.m. on March 17.

Award notifications are expected beginning in early April, and initial funding for approved families will be available starting July 1 for the 2026-27 school year.