News Stories
Sponsored by Earth Etch. Regulatory insight and compliance solutions for today’s energy markets.
Staff Recommends Adoption and Publication of Proposed Large Load Rule
On July 24, 2026 Texas PUC Staff issued a memo and recommendation regarding proposal for publication in the large load demand management service project where Staff proposes new 16 Texas Administrative Code (TAC) §25.521, for consideration at the PUCT Commission’s July 30, 2026 Open Meeting.
Commission Staff recommends the Commission approve this draft for publication in the Texas Register.
“The purpose of the new rule is to implement PURA §39.170 enacted during the Texas 89th Legislature, Regular Session. Commission Staff’ s proposal for publication requires ERCOT to ensure that each electric cooperative, transmission and distribution utility, and municipally owned utility develops a protocol to allow a transmission-voltage customer to be curtailed during firm load shed. The proposal for publication also creates a new Large Load Demand Management Service (LLDMS), allowing ERCOT to curtail demand from qualifying large load customers when there is a significant risk of an Energy Emergency Alert (EEA) resulting from extreme weather conditions. A Qualified Scheduling Entity (QSE) may submit offers on behalf of an individual load.”
“To be eligible for participation, the large load customer must be capable of providing at least 1 megawatt (Mw) of demand reduction and must pass a price-responsive test, in compliance with ERCOT protocols. Large load customers that participate in other demand response, reliability, and ancillary services will not be eligible.”
Under the proposal, any QSE representing a large load customer that is not instructed by ERCOT to deploy but which is subject to availability verification during the LLDMS obligation period may receive a payment based on 25% of the market clearing price.
Under the draft, ERCOT must provide at least 24-hour notice to a QSE that a large load customer represented by the QSE may be deployed to reduce its load during the LLDMS obligation period.Staff also proposes that ERCOT must charge each load serving entity for LLDMS deployment costs based upon the LSE’s load ratio share during the procurement period.
