McALLEN, Texas (Border Report) -- Texas needs more power lines for growing areas of the state and for businesses that need more electricity, like in the Rio Grande Valley on the southern border, according to a new report. The economic report, "The Potential Impact of Inadequate Electric Transmission in Texas," cites huge increases in Texas' population. About 1,300 people added to the state per day in the past few years, according to the report, as well as emerging high-tech industries, like AI, that require more power to run as contributing factors for the need to upgrade the state's power transmission infrastructure. This will help avoid a power transmission breakdown like during the state's epic freeze in February 2021. And if not addressed, could lead to the loss of over $36 billion in business gross product and nearly 157,000 jobs in the next 16 years, the report by the Perryman Group finds. (Graphic by The Perryman Group) "Texas is seeing ongoing population expansion and has enormous growth potential in both traditional industries and emerging sectors that require significant and reliable electricity supplies. This potential can only be achieved if the necessary supporting resources are available. Transmission capacity is crucial to ongoing prosperity," according to the report, which is the first produced by a newly formed Texas Transmission Education Task Force. The task force is a collaboration between the nonprofit Rio Grande Valley Partnership Foundation, Texas Railroad Commissioner Jim Wright, and leaders from traditional and renewable energy industries. And it is coming out in anticipation of the Texas Legislature convening in Austin in January in the hopes they take up this issue. On Tuesday, economist Ray Perryman, president and CEO of the Perryman Group, in an online media call with Daniel Silva, president and CEO of RGV Partnership, said there are growing businesses and a growing population in the Rio Grande Valley of South Texas that could be affected and lose jobs and businesses if this part of the state doesn't receive adequate electricity. The Texas population increased by nearly 474,000 people between 2022 to 2023. Since prior to the pandemic, Texas has added 5.2% to its population, which outpaces the national average of 2.03%, the report says. "Texas is growing. Growing requires infrastructure, including electric transportation infrastructure, but let's go a step beyond that," Perryman said. Industries that require a lot of electricity include electric vehicles, maquiladora industries on the border, as well as liquified natural gas terminals, like the LNG facility in Brownsville, Texas, that is on hold right now due to a lack of federal permit. Cruz asks feds to appeal ruling against LNG project Vehicles wrap the block trying to get gasoline on Wednesday, Feb. 17, 2021, in Mission, Texas. Electric outages that blanked the state and the Rio Grande Valley caused most gas stations to go offline. Those that are open have increased prices and are running out of supplies. (Border Report File Photo/Sandra Sanchez) "The Rio Grande Valley is starting to see a lot more interest, by a lot more high tech, high processed manufacturing opportunities. And in order for that to happen, that technology that equipment, it needs sustainable energy and I'm glad that there's improvements that are being made. But you know this puts a writing on the wall," Silva said. The Rio Grande Valley is "growing very rapidly and we're seeing a lot of economic boom in the region," said Silva, whose group assists businesses and the 1.4 million people in the four border counties of Starr, Willacy, Cameron and Hidalgo. "We can’t move that power where it is needed most without updates to our state’s aging, limited transmission system. Every day we wait is another day that energy waiting to be put on the grid is instead curtailed and wasted at great cost to Texas." Energy reliability, he said, is key to attracting and maintaining businesses and industry in the South Texas border region. "We're seeing mega-projects in the Rio Grande Valley. Now it becomes very important for us to make sure that adequate transmission is being brought into the region. Adequate transmission is being brought all across the state, because the state of Texas is growing very fast, and we want to make sure that that it's serviced well," Silva said. "Transmission is important so that we can make sure, as companies are continuing to look at the region, it isn't a barrier." Silva said the South Texas region also is facing a water crisis. And he worries that businesses will be driven away if a lack of electricity compounds the situation. Border Report Live: How Mexico water woes impact the US border "We're facing water. We're all aware of that all across the state. We don't want energy to be another one when we can get ahead of it. And this study, I think, after reviewing it, is very, very insightful as to what we need to be focusing on," Silva said. South Texas is facing a water crisis and agriculture and growers don't have enough water for crops. The state's only sugar mill shut down earlier this year in Hidalgo County and citrus crops now are threatened. Water scarcity in the region is being blamed on population growth coupled with drought and excessive heat, as well as Mexico's inability to pay the water it owes under a 1944 international water treaty with the United States. New South Texas Water Working Group looking for sustainable water solutions Regarding electric transmissions, Perryman says that 85% of residents live east of Interstate 35 and power needs to get to the eastern part of the state. Although transmission lines were upgraded in the Rio Grande Valley after 2021, the report finds not enough infrastructure was planned for the population explosion and new power-hungry industries that are evolving. Perryman says the state has the ability to produce enough electricity through solar, wind, natural gas, and even nuclear generated. But he says lawmakers when the Texas Legislature convene in January need to understand the necessity to upgrade the state's transmission infrastructure and to spend the funds needed to keep the state powered for decades to come. Sandra Sanchez can be reached at [email protected].