The economic future of the Rio Grande Valley (RGV) is bright, but without critical upgrades to our electric transmission infrastructure, we’re at more risk of losing business activity and jobs than enjoying transformative growth and prosperity.
RGV communities already know the consequences of failing to invest in the infrastructure that we need to support our potential, but the transmission challenge isn’t ours alone.
The facts are clear. From the Rio Grande Valley to East Texas to the Permian Basin, Texans need expanded electric transmission to power our future. We have to move electricity from where it is generated to where it is used!
Texas is growing at an unprecedented speed. Thanks to our population boom and the rise of new industries, electricity demand is skyrocketing. The grid’s capacity, however, hasn’t caught up with the explosive growth in generation, population, and economic development in the 20 years since Texas last made a major investment in transmission lines. As a result, electricity generated in the Rio Grande Valley can’t be delivered to our most bustling population centers and to the industries driving increased demand. Instead, that energy ends up curtailed and ultimately wasted.
The transmission bottleneck is already costing Texans billions. In 2022, transmission congestion—the inability to move low-cost power to where it’s needed—cost the state $2.8 billion in lost energy. The Perryman Group’s latest report aims to project the future impact of inadequate transmission infrastructure. On the low end, Texas is facing a $3.65 billion underinvestment in transmission capacity, which could result in worsening yearly economic impacts, reaching $9.7 billion in gross product burned and over 40,500 jobs lost in 2040 alone. Between now and 2040, these losses could total a staggering $36.8 billion in gross product and nearly 157,000 job-years lost across Texas.
These impacts could yet rise depending on how badly we underinvest in transmission. Given our state’s rapid growth, we may face underinvestment closer to $12.7 billion, leading to a devastating loss of $25.5 billion in gross product and approximately 106,100 jobs in 2040 alone, and, cumulatively over the 2024-2040 period, a projected loss of $159.8 billion in gross product and almost 696,500 job-years.
Other critical infrastructure will suffer as well. By 2040, the state and local governments could lose up to $383.4 million in tax revenues annually due to inadequate transmission infrastructure. For the RGV, this means fewer resources for essential services such as education, healthcare, and transportation—ingredients that are crucial for maintaining our quality of life and growth trajectory.
For the RGV, these aren’t just statistics—they’re a warning. Inadequate investment in transmission will overwhelm and destroy business growth. Companies looking to expand in Texas will look elsewhere if our grid cannot support their needs. Increasingly modernized and electrified industries will face hurdles to their operations. As we increasingly electrify our economy, building out our transmission capacity becomes more urgent than ever. Low-income families, in particular, will face higher energy bills and fewer employment opportunities if the grid cannot support the region’s needs. The vibrant communities that make the RGV unique will suffer the most from job losses and reduced economic activity.
The RGV can play a pivotal role in addressing this challenge. With our strategic location and rapidly growing population, we are positioned to be a hub of innovation and economic expansion. We have immense potential in rapidly emerging sectors such as electric vehicle production and data centers, both of which require substantial and reliable energy. To achieve this essential catalyst for success, we must ensure that the electricity generated across our state can be efficiently delivered to our region.
The solution is clear–we must invest in transmission now to ensure a prosperous future for the RGV and Texas as a whole. By modernizing the grid, we can unlock new economic opportunities, support job creation, and ensure that Texas remains competitive in an increasingly electrified world. As leaders in the business and economic communities, we urge policymakers, industry stakeholders, and community leaders to prioritize investment in electric transmission. The future of the RGV—and all of Texas—depends on it.
Editor’s Note: The above guest column was penned jointly by Daniel Silva and Dr. M. Ray Perryman. Silva is president and CEO of the Rio Grande Valley Partnership, where he advocates for regional collaboration and economic development in the RGV. He has over 20 years of experience in economic development, having previously served as CEO of the Mission Economic Development Corporation. Perryman, an economist, is president of The Perryman Group. He has over four decades of experience in economic research and analysis and recently authored a report on the economic impacts of inadequate electric transmission in Texas.
