NEW YORK (Dow Jones)–Texas regulators Thursday picked more than a dozen developers to build nearly $5 billion in high-voltage transmission lines to move wind-generated electricity.

The decision by the Texas Public Utility Commission  assigns companies including Oncor, American Electric Power Co. (AEP), MidAmerican Energy Holdings Co. and FPL Group Inc. (FPL), an estimated 2,900 miles of transmission projects. These will connect rural wind farms to more urban areas with high power demand. Traditionally, transmission lines are built and operated by local utilities, but the commission conducted a competitive process to select developers.

The build-out is one of the first efforts in the U.S. to tackle a chicken-and-egg problem that has stifled growth of wind power. Developers don’t want to invest in turbines until lines are in place, while utilities and regulators don’t want to spend billions of dollars on lines until wind generation is ready to feed power to the grid.

Oncor, a subsidiary of privately held Energy Future Holdings, received an estimated $1.34 billion in projects. Electric Transmission Texas, a joint venture of AEP and Berkshire Hathaway Inc.’s (BRKA, BRKB) MidAmerican, received an estimated $790 million, while FPL Group’s (FPL) Lone Star Transmission was awarded $560 million in projects.

Three other groups each won around $400 million in projects. These are Cross Texas Transmission, which is owned by LS Power Associates, privately owned Sharyland Utilities and a partnership of Spain’s Isolux Corsan SA and Brookfield Asset Management.

The commission awarded the Lower Colorado River Authority $750 million in projects. Six additional developers received smaller projects.

Before voting, commissioners debated the ability of potential developers to finance projects in a difficult credit environment, while deciding not to concentrate too much of the build-out in the hands of one company.

“I like the fact we are trying to diversify the risk,” Chairman Barry Smitherman said.

Federal and state policy makers look at the Texas process, known as competitive renewable energy zones, as a possible model for other regions struggling to connect wind power with customers. But outside Texas, transmission projects face high hurdles as states disagree with each other and the federal government over routes and plans and amid public resistance to new energy infrastructure.

Texas’ high-voltage expansion will take place under a regulated model in which companies receive a set rate of return, plus their costs. Steady, multiyear returns and limited risk make the projects attractive to companies. Although selected by the PUC, the developers have additional steps ahead. Projects still need to receive regulatory approval for their design and cost, a commission spokesman said.

When completed over the next four to five years, the system regulators have planned would carry about 18,500 megawatts of wind, enough electricity for an estimated 14 million to 18 million typical homes.