Texas PUCT large load interconnection rule (2026)

Texas — PUCT Adopts Final Large Load Interconnection Standards for Data Centers of 75 MW or More (Project 58481, September 2026)
Texas · 16 TAC §25.194 (PUCT Project No. 58481, order adopted Sept. 18, 2026; effective Oct. 8, 2026)

Status
In effect
Took effect
October 8, 2026
Applies to
Large load customers (75 MW+ at a single site) seeking ERCOT interconnection, and interconnecting distribution and transmission service providers
Enforced by
Public Utility Commission of Texas; ERCOT

The Public Utility Commission of Texas adopted its final rule on September 18, 2026 for connecting very large electricity users, such as data centers, to the ERCOT grid. It applies to new or expanded loads of 75 megawatts or more at a single site. Developers pay a flat $100,000 study fee and must post financial security of $50,000 per megawatt of requested peak demand. The final rule dropped a proposed non-refundable interconnection fee of $50,000 per megawatt and relaxed some milestone and refund terms compared with the March proposal. The rule implements Senate Bill 6 (2025).

Who is protected: ERCOT ratepayers, protected from stranded interconnection costs of large loads

Legal detail

PUCT Project (Control) No. 58481, 'Rulemaking to Implement Large Load Interconnection Standards under PURA 37.0561' (PURA §37.0561 added by SB 6, 89th Leg., 2025; see Texas SB 6 (Data Center Grid Law)). PUCT interchange docket: item 218, 9/18/2026, 'Order Adopting New 16 TAC §25.194'; item 219, 9/18/2026, 'Texas Register Acknowledgement of Receipt - Effective 10.08.2026'. Utility Dive (published Mon. Sept. 21, 2026): commission 'voted Friday' (= Sept. 18). Scope (Colocation Scout, Compute Law): new or expanded interconnections of 75 MW or more at a single site in ERCOT. Final terms: flat $100,000 study fee for all large loads (proposal had size tiers); proposed non-refundable $50,000/MW interconnection fee eliminated; financial security $50,000/MW of requested peak demand (agreement stage: greater of $50,000/MW contracted peak demand or allocated system upgrade costs, per Colocation Scout); the interconnecting DSP/TSP must notify ERCOT of non-utilized capacity after a 24-month miss measured against the energization schedule as a whole (proposal: 30 days after a 6-month miss); within 60 days of that notice, security is applied to amounts owed and the balance returned (proposal: 20% refunded, 80% applied/rate-base offset). Effective Oct. 8, 2026. Adopted during the Governor's Aug. 3 audit directive (Texas Gov. Abbott data center grid-connection audit freeze). The adoption order text itself was not read.

Key facts

JurisdictionTexas
LevelState
StrengthModerate
EnactedSeptember 18, 2026
Citation16 TAC §25.194 (PUCT Project No. 58481, order adopted Sept. 18, 2026; effective Oct. 8, 2026)
Private right of actionNo, agency enforcement only
PenaltiesForfeiture or application of posted financial security; reporting of non-utilized capacity to ERCOT
Topicsdata-center siting and energy · consumer protection
Agency pagePUCT Interchange, Project 58481 filings 9/18/2026 — Order Adopting New 16 TAC §25.194; Texas Register acknowledgement (effective 10.08.2026)

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