Tejas Transmission LLC, a subsidiary of Babcock & Brown, has filed a notice of its intent to establish a new regulated electric utility business unit to construct, own and operate transmission facilities in Texas. This notice was filed in response to a request for qualifications from interested parties by the Public Utility Commission of Texas (PUC) in its ongoing Competitive Renewable Energy Zone (CREZ) proceedings.

Babcock & Brown is a developer and manager of infrastructure and transmission facilities. Its staff has participated in development, engineering, construction, financing and operation of transmission facilities in North America, Australia and New Zealand. In the United States, Babcock & Brown is currently developing, or has recently developed, new electric transmission facilities in California, Colorado, New York and New Mexico. Babcock & Brown is the manager of Babcock & Brown Infrastructure , the owner and operator of the Cross Sound Cable Project, a 330-MW HVDC transmission system interconnected between the New England and New York power systems. Babcock & Brown, together with Babcock & Brown Infrastructure and a syndicate of investors and Babcock & Brown managed accounts is a majority owner of the Natural Gas Pipeline of America, one of the largest natural gas transmission pipeline and storage systems in the United States, which extends from Odessa, Texas and traverses 10 states in the Central U.S.

Babcock & Brown is also among the largest wind energy developers in U.S. and global markets alike, with significant capacity already operating in Texas and further capacity coming online. Babcock & Brown owns and operates the 585 MW Sweetwater Wind Farm and has over 2,000 MW in development throughout Texas.

In 2007, Babcock & Brown acquired the Celanese Steam Plant in Pampa, Texas where it is currently developing the Pampa Energy Center, projected to have up to 800 MW of conventional baseload power generation. The Pampa Energy Center, combined with Babcock's approximately 1000 MW of adjacent wind generation, will provide much need long-term generation resources to Texas.

In Texas, Babcock & Brown operates out of offices in Dallas, Houston and Austin.