LCRA board approves $129M in capital projects package and authorizes up to $500M in transmission refunding bonds

The LCRA Transmission Services Corporation board on June 17 approved a package of nine capital projects with an aggregate estimated cost of about $129 million and authorized staff to issue up to $500 million in transmission refunding revenue bonds.

Josh Cole, a staff member presenting the capital projects item, summarized nine projects ranging from routine substation grounding upgrades to an 8.3‑mile, 345 kV Ostrop–Garfield line upgrade. He said the package includes two service‑reliability projects, six system‑capacity projects and the annual general additions authorization for unscoped work under $500,000. “Upon approval, construction, and completion of these projects, we will submit them to the Public Utility Commission of Texas for inclusion in our regulator rates,” Cole said.

Key projects listed by staff (recommended completion date and estimated cost): grounding FY2025 substation upgrades (Jun. 30, 2027; $6.8 million); McKame field office facilities upgrade (Jun. 30, 2030; $1.8 million); Ostrop–Garfield 345 kV transmission upgrade (Jun. 30, 2027; $64.4 million); Bastrop Colony 138 kV substation addition (Dec. 31, 2027; $19.7 million); Benad substation property acquisition (Oct. 15, 2027; $1.6 million); Howard Lane–Wells Branch 138 kV line upgrade (May 15, 2027; $9.7 million); Mayor substation circuit breaker addition (May 15, 2027; $3.6 million); Pine Path 138 kV substation addition (Dec. 31, 2027; $12.4 million); and the FY2027 transmission services general additions project (Jun. 30, 2027; $9 million).

David Smith presented the financing item and asked the board to authorize issuance of up to $500 million of transmission refunding revenue bonds to refund short‑term debt and potentially fund a construction account. “This is an agenda item asking for your approval to issue up to $500 million of transmission bonds,” Smith said; he tied the request to the FY2027 business plan, which the board previously discussed and which contemplates approximately $1.44 billion of transmission debt in FY27.

A director moved and the board approved both the capital projects package and the bond authorization; no opposing votes were recorded. After the approvals, the board convened in executive session and later returned and adjourned at 12:45 p.m.

Next steps: individual projects will return to the board with refined scopes and cost estimates before construction contracts are awarded; completed projects will be submitted to the Public Utility Commission of Texas for rate treatment as described by staff.