Sharyland Utilities has obtained approval from the Public Utility Commission of Texas (PUCT) and the U.S. Department of Energy to build an electrical interconnect between the Texas and Mexico power grids. The governor of Texas and the governors of the northeastern Mexican regions of Coahuila, Nuevo Leon and Tamaulipas also have signed agreements approving the project.

This cross-border tie will support both emergency power and commercial business activity in Texas as well as Mexico.

The 150-MW HVDC tie will allow two-way electricity transfers between completely independent power grids, which supports the economic development and increased reliability of both grids.

Prior to approving the dc tie, PUCT Chairman Paul Hudson issued a memo expressing his “strong belief that reliability from both instantaneous capability and reserve [electrical power availability] perspectives support the investment.”

“The always-on feature makes the dc tie quickly accessible during an energy crisis, and the addition of competitive Mexican power prices creates an interesting alternative in Texas's energy price-shopping environment,” said Mark Caskey, general manager of Sharyland Utilities.

The electricity market participants — including Mexican industrials and utilities on either side of the border — can sell and/or purchase power to the mutual benefit of both parties. Mexican industrials have already filed applications to import power from Texas to ensure competitive pricing for their electricity needs.

“We are grateful to the state of Texas for approving this project,” said Norbeto Salinas, mayor of Mission, Texas, where the dc tie converter will be located. “The technological and economic benefits of this tie will be felt not just in Mission, but throughout the Valley and in northern Mexico. On behalf of the city of Mission, I look forward to working with Sharyland Utilities to make this project a reality as soon as possible.”

Construction is planned for early 2006 and is expected to be completed in the first quarter of 2007.