The Public Utility Commission of Texas on Thursday, June 18, approved changes to the Electric Reliability Council of Texas’ process for evaluating requests from data centers and other large power users seeking to connect to the state’s power grid.
According to the PUCT, the new process is designed to better manage the rapid growth in interconnection requests while maintaining electric reliability for Texas homes and businesses.
“Texas is leading the nation in developing innovative solutions for the rapid growth in electricity demand from data centers and other large power users,” PUCT Chairman Thomas Gleeson said. “We are showing it is entirely possible to protect consumers first and encourage economic development, so our state continues to thrive. The changes approved today ensure we know who is serious about connecting to the Texas grid.”
Gleeson said the changes represent another step toward building “Texas’ grid of the future” while prioritizing reliability and the interests of ratepayers.
The PUCT said a record number of large electric users, including data centers, cryptocurrency mining operations, industrial facilities and other major projects, are seeking to connect to the ERCOT grid.
Under the new “Batch Study” process, ERCOT will evaluate groups of projects together rather than individually. Officials said the change will speed up reviews, help identify speculative projects and determine what additional transmission infrastructure may be needed. The process is also expected to provide developers with greater regulatory certainty.
The approved changes are part of broader efforts by the PUCT and ERCOT to prepare for increased electricity demand from large power users. The commission said ongoing rulemaking efforts are focused on ensuring residential customers do not bear the costs associated with connecting those facilities to the grid.
The revised interconnection process is expected to take effect later this summer.