ERCOT · Texas SB 6 · adopted 16 TAC §25.194
Sign the agreement or walk
Compare the security lost on timely withdrawal with the collateral needed to sign. Execute and fund within 60 days after ERCOT issues the study report allocating capacity, or the request is canceled.
Scope: post-study new single-site requests of 75+ MW and confirmed Batch Zero classifications, not energized on October 8, 2026. This tool does not determine eligibility or model expansions, generation co-location or §25.370(g) legacy agreements. Expansions may qualify with an addition below 75 MW; §25.194(b) applies to the incremental load. Municipal utilities and cooperatives may impose extra requirements.
New request under §25.194
200 of 300 MW allocated. Zero must mean zero across all study years.
Timely withdrawal: security forfeiture
$13M balance before outstanding obligations and interest
Sign: base collateral requirement
Refundable security subject to agreement; extra minimum-billing security may be required
Miss both deadlines: forfeiture
Deemed forfeiture, §25.194(d)(3)(E)
Missing the deadline risks $13,000,000 more security than timely written withdrawal, before outstanding obligations. Signing requires $0 additional base collateral if all posted cash remains available and is credited. Collateral is not a project expense.
After a positive allocation, timely written withdrawal loses 20% of security associated with allocated capacity. Zero means zero across all study years; timely withdrawal is still required. (§25.194(d)(3)(B)-(C)). Financial security already posted: $15,000,000. Associated with allocated capacity: $10,000,000 using an assumed proportional allocation, not a rule-prescribed formula.
Enter the study-report issue date to see the 60-day calendar reference. The clock does not start on your receipt of an allocation notice.
Batch Zero withdrawal notices may be processed only after the study report and before the deadline, §25.194(h)(4)(A). Written notice goes to the DSP/TSP.
If you sign: security, not spending
| Event | Security illustration | Adopted rule |
|---|---|---|
| Base security at signing | $10,000,000 | §25.194(f)(2)(B) |
| Additional base collateral if all posted cash is available and credited | $0 | §25.194(f)(2)(A) |
| Returned: At energization | $2,000,000 | §25.194(f)(3)(C) |
| Returned: SLLIA minimum-billing payment milestone 1 | $2,000,000 | §25.194(f)(3)(C) |
| Returned: SLLIA minimum-billing payment milestone 2 | $2,000,000 | §25.194(f)(3)(C) |
| Returned: SLLIA minimum-billing payment milestone 3 | $2,000,000 | §25.194(f)(3)(C) |
| Returned: SLLIA minimum-billing payment milestone 4 | $2,000,000 | §25.194(f)(3)(C) |
| Full withdrawal after signing, assuming original security remains associated with all contracted MW | $2,000,000 deduction, plus outstanding obligations | §25.194(f)(3)(A)-(B) |
| All contracted capacity unused after a 24-month schedule failure, same original-security assumption | $2,000,000 deduction, plus outstanding obligations | §25.194(g) |
Release illustration uses $10,000,000 remaining security: 20% at energization, then four equal increments at the SLLIA's minimum-billing payment milestones. The rule supplies no annual release dates. Outstanding obligations and later drawdowns change the balance. The 24-month period applies to the energization schedule as a whole, not separately to each phase. Noncompliance may cause further forfeiture under (f)(3)(D).
Cash return/credit election is due within 30 days after customer allocation notification; silence means credit. A guaranty or letter of credit is returned within 30 days after ERCOT notifies the utility and must be replaced with SLLIA security. These clocks differ from the 60-day signing clock.
Proposed billing: an illustration
Project 58000 is not adopted as of Nov 4, 2026. These charges are excluded from the adopted-security comparison above.
$13,352,000 per year; $267,040,000 over 20 years, undiscounted at the constant assumed rate of $66.76/kW-year.
Assumes all entered contracted MW are available from the first billing cycle and contracted demand controls. The proposal uses the greatest of contracted peak, prior-year highest non-coincident peak or 12CP. It starts billing when capacity becomes available, whether energized or not. Phased service, higher demand, tariff changes and the final rule can change these figures. This is not a fixed liability or a total electricity bill.
Adopted §25.194(f)(2)(D) requires the SLLIA to acknowledge applicable §25.193 minimum billing; (f)(3)(A)(iii)(V) includes it among outstanding obligations on withdrawal. Confirm final rules and agreement terms before relying on any minimum-billing amount.
What makes this a sign-or-walk decision
Timely withdrawal limits the security deduction shown above. Signing preserves allocated capacity and ties up collateral. The right choice depends on whether the allocated MW and service timing support a viable project after utility costs, financing and applicable billing obligations.
Before signing or withdrawing, obtain the utility's written deadline, capacity-associated security calculation, cancellation-cost statement, service schedule and minimum-billing terms. The calculator cannot recommend signing from MW and security alone.
Outstanding studies, equipment, construction and services can reduce refunds or exceed posted security. Direct-interconnection CIAC is a separate cash obligation, nonrefundable and subject to actual-cost true-up; qualifying pre-June 1, 2025 Batch Zero agreements retain their direct-cost treatment. New intermediate agreements carry a $100,000 study fee, with possible additional ERCOT fees; unused study money is returned within 60 days of study conclusion. No new study fee is assumed here for an existing Batch Zero posting.
- Adopted 16 TAC §25.194, Project 58481, effective 2026-10-08: Applicability: (b), (c)(14); intermediate fee/security: (d)(2); withdrawal/lapse: (d)(3), (h)(1); study-report signing clock: (f); security/cash credit/CIAC: (f)(2); remaining-balance releases: (f)(3); non-utilized capacity: (g); legacy direct-cost protection: (h)(3)(B). Extra municipal/cooperative requirements may apply under (a). Inflation adjustment begins in 2032.
- Project 58000 proposal, not adopted, filed 2026-07-09: Proposed §25.193(d)(2)-(3) and §25.252(e): greatest of contracted peak, prior-year highest non-coincident peak or 12CP; available service triggers billing; at least 20 years / 240 payments. Illustration assumes all contracted MW available initially, contracted demand controls, constant rate and no discounting. Phasing, higher demand, tariff changes and final rules can change it.
- Project 58000 official docket, checked 2026-11-04: Latest listed filing: item 70, 2026-10-01 response comments; no adoption order listed. Adopted §25.194(f)(2)(D), (f)(3)(A)(iii)(V) refer to §25.193, but do not establish this illustration as a fixed liability.
- Historical rate assumption: NRG remarks, page 3, 2025-02-25: $66.76/kW-year was quoted for 4CP transmission charges. Only an editable example rate here; use applicable utility tariffs for a project estimate.
- Calculator assumptions, 2026-11-04: Default associated security = posted security × allocated/requested MW, an assumption rather than a rule formula. Blank posted security assumes requested MW × $50,000; Batch Zero users must verify actual postings. Refunds exclude outstanding obligations and interest; obligations can exceed collateral. Releases use the entered remaining balance, with no further deductions. Collateral is not an expense or a second payment stacked on credited cash.
Sources checked Nov 4, 2026. Figures are estimates before outstanding obligations and interest. Corrections: contact.