ETT applied for a Certificate of Convenience and Necessity (CCN) to construct the transmission line at a cost of around $318m.
The line will be built from the Laredo area into the Rio Grande Valley in Texas.
The project includes building almost 156 miles of 345kV transmission lines to connect the company’s Lobo Substation near Laredo with other substations located north of Edinburg.
In addition, the project work includes constructing two new substations along the line route.
PUCT also approved a settlement with nearly 100 landowners along the route, the PUCT staff and the Texas Parks and the Wildlife Department.
Electric Transmission Texas president Calvin Crowder said the project approval has helped many other groups reach an unanimous settlement regarding the route.
"Approval of the CCN is a significant step to ensuring continued transmission reliability in the Rio Grande Valley and Laredo areas," Crowder added.
"We now will begin right-of-way acquisition and detailed engineering for the project, with actual construction anticipated to begin in 2014."
The electricity from the project will be delivered to customers in 2016.
