Updated November 8, 2026. Facts are dated to their source.
The 75 MW threshold
Senate Bill 6, signed June 20, 2025, rewrote how large loads connect to and run on the ERCOT grid.[8] It tells the PUCT to set the large load threshold at 75 MW unless it chooses a lower one.[1]
Interconnection standards
For a large load asking for service, the law requires:[1]
- Disclosure of any substantially similar request for service elsewhere in Texas.
- Disclosure of on-site backup generation.
- A flat study fee of at least $100,000.
- Site control through ownership, a lease or a similar arrangement.
- Uniform financial commitment requirements, which may be set per megawatt.
The PUCT implemented these in 16 TAC §25.194, adopted September 18, 2026 and listed in the Texas Register as effective October 8, 2026.[2][4] It sets security at $50,000 per MW of requested peak demand before the interconnection study.[3] More in Connecting a large load to ERCOT.
Curtailment
Utilities must be able to curtail large loads during firm load shed. That applies to loads interconnected after December 31, 2025, with exceptions for critical loads.[1] ERCOT can also have large loads run on-site backup generation or curtail in an emergency once it has deployed its other available market services.[1]
The law has ERCOT competitively procure demand reductions from loads of at least 75 MW, with at least 24 hours' notice.[1] The proposed rule, 16 TAC §25.521, was published in the Texas Register on August 14, 2026; ERCOT's October 2026 tracker shows it still in progress.[5][7]
Co-location
When existing generation registered by September 1, 2025 enters a net metering arrangement with a new large load, ERCOT studies it within 120 days of complete information and the PUCT then has 60 days to act; without action it is deemed approved.[1]
In the first case, on July 24, 2026, the PUCT approved Goodnight Wind's 265.5 MW wind facility paired with Crusoe data center load, with conditions that include full, uncompensated curtailment within 30 minutes of an ERCOT emergency instruction and no demand response participation.[6]
Rule status
Where the implementing projects stood in ERCOT's October 2026 tracker:[7]
- Project 58481, interconnection standards (§25.194): adopted.
- Project 58479, net metering with co-located large loads (§25.205): rulemaking complete.
- Project 58480, large load forecasting criteria: rule complete, ERCOT implementation in progress.
- Project 58482, demand management service and firm load shed curtailment (§25.521): in progress, PUCT target January 2027.
- Project 58484, transmission cost allocation study: complete; the follow-on rulemaking, Project 58000, targets December 31, 2026.
The record
16 of 46 first stated Texas power dates held. Every date, graded.
Building in Texas? Send the site, the megawatts and the date you were given. contact@pallara.xyz
Sources
- Senate Bill 6, enrolled text, 89th Legislature. Texas Legislature, 2025.
- Order adopting 16 TAC §25.194, Project 58481, Item 218. Public Utility Commission of Texas, Sep 18, 2026.
- PUCT sets financial commitments for data center interconnection; Governor pauses permits. White & Case, Sep 25, 2026.
- Texas Register, adopted rules, 51 TexReg 6875. Texas Secretary of State, Oct 2, 2026.
- Texas Register, proposed 16 TAC §25.521. Texas Secretary of State, Aug 14, 2026.
- PUCT affirms curtailment authority over co-located data centers in first net metering case. White & Case, Aug 5, 2026.
- 89th Legislative Session, ERCOT Status, October 2026. ERCOT, Oct 2026.
- Important Texas regulatory updates for data centers. Mayer Brown, Jul 3, 2025.
Pallara represents no applicant and takes no position on any project. Decision support, not legal advice. Corrections: contact@pallara.xyz.