State Affairs Committee hears ERCOT, PUC on sweeping changes to interconnection rules as data‑center requests surge

The Committee on State Affairs held a full‑day interim hearing focused on how Texas will connect a wave of large data‑center projects to the grid. ERCOT and the Public Utility Commission described a new annual "batch" study intended to evaluate many projects at once and allocate available transmission capacity across 2027–2030 as the interconnection queue swelled.

"Right now, we have over 450,000 megawatts" of generation or interested projects in the queue, ERCOT President and CEO Pablo Vegas told the committee, noting that roughly 80–87% of new large‑load requests are for data centers. He said the current serial study process stalls projects when multiple developers in the same area change the local transmission topology and force restudies.

PUC Chairman Thomas Gleason said the commission has five related rulemakings underway to implement large‑load interconnection standards, and promised changes to how transmission costs are allocated so residential ratepayers are not unfairly burdened. "We will move away" from the existing 4‑coincident peak model, Gleason said, and noted the commission plans to complete the rulemaking cycle tied to Senate Bill 6 before the next legislative session.

Industry witnesses from developers, utilities and trade groups welcomed a more predictable process but urged the committee and regulators to treat mature projects differently so already‑committed investments are not stalled. The hearing also flagged water‑use and community impacts as recurring concerns; the PUC has circulated a voluntary water survey to data centers with responses due May 28.

The committee did not take votes; lawmakers and agency leaders agreed to continue the interim work this spring.