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Parties File Additional Comments in Support of Staff’s Revised Proposed Rule that Reduces the Financial Security and Large Load Interconnection Fee Commitments

Dockets: 58481 ,Texas
Category: Texas

In response to Texas Public Utility Commission’s (TPUC’s) Staff Memo on proposal for publication in the rulemaking to implement large load interconnection standards under PURA 37.0561 parties filed additional comments. As reported previously the Commission submitted a proposal for publication in the above-described project to the Texas Register on March 12, 2026.  Note that the commission has decided to reduce the financial security and interconnection fee commitments from $100,000 per megawatt to $50,000 per megawatt. While the proposed rule language did update these values, Commission Staff was alerted that the preamble of the proposal for publication submitted to the Texas Register still reflected the $100,000 per megawatt value. Staff further notes that the preamble language has been corrected in the attachment to this memorandum for additional clarity.

As noted in the proposal for publication, the deadline to file comments in the above-described project is April 17, 2026.

Below are the most recent additional comments filed in response to TPUC Staff’s revised proposal reducing the financial security commitment.

Vistra’s Comments – “Vistra is filing a courtesy copy of its comments submitted today on Planning Guide Revision Request (PGRR) 145 in the above-referenced Commission control numbers because Vistra’s PGRR145 comments highlight important interactions between the Proposal for Adoption (PFA) in Project No. 58479, the Proposal for Publication (PFP) in Project No. 58481, and the proposed Batch Zero timeline and transition criteria that could, as currently proposed, confound the statutory deadlines for review of Net Metering Arrangements subject to PURA § 39.169. To mitigate the risk of inequitable impacts and to support compliance with the deadlines in PURA § 39.169(d), Vistra has proposed that PGRR145 include known Large Loads that will be subject to PURA § 39.169 in the Batch Zero baseline and continue to evaluate those Large Loads under the “Legacy” Large Load Interconnection Study process, unless the Large Load opts for evaluation under the Batch process.  Vistra’s PGRR145 comments also note that the proposed requirements for Interconnecting DSP or alternatively Interconnecting TSP engagement in certain (sometimes critical) steps in the new proposed process may not always be appropriate or truly required, so recommends greater flexibility for administrative efficiency. This change should not impact the majority of Large Load interconnections but helps to ensure all scenarios can work within the proposed new procedures.  Vistra’s PGRR145 comments also include some very limited feedback on provisions of the Project No. 58481 PFP that were ported over into PGRR145. Vistra will offer more complete feedback on the Project No. 58481 PFP when those comments are formally due on April 17, 2026, but includes them here for reference.”

Serena Power Comments  – “At its March 12,2026, Open Meeting, the Commission voted to publish the proposed rule for public comment, and in doing so adopted changes to improve the original Commission Staff draft proposal. Serena appreciates the changes the Commission made to reduce the amount of financial security and the interconnection fee that must be posted. As indicated in the Commission’ s Open Meeting discussion, Commissioners are still considering whether posting of financial security should be tiered to reflect commercial development milestones, and additionally, the extent to which the financial security that is posted should be refundable. Serena agrees that these are critical issues that need attention quickly, in part because ERCOT intends to apply the requirements of the proposed rule to Large Load Customers that seek to participate in Batch Zero of the Large Load Batch Study Process in its proposed Planning Guide Revision Request (PGRR) 145, Batch Zero Process for Large Load Interconnections.

As proposed, new 16 TAC §25.194 would require a large load customer to post financial security in the amount of $50,000/MW for ERCOT to determine if there is sufficient capacity to serve its proposed large load on a commercially reasonable timeline. If there is insufficient capacity and the developer withdraws its project from further consideration, the proposed rule would require the developer to forfeit at least 80% of the financial security posted, i.e., $40,000 for every MW submitted for consideration in the Batch Study process. Serena agrees with Google and Lancium, as recommended in their March 10, 2026, proposed redlines, 1 that a more reasonable approach would be one in which a maximum of $6.5 million of the financial security would be non-refundable following a preliminary steady state study. As an alternative, if there is not an initial steady state study as Google and Lancium recommended, rather than only 20% of the posted financial security being refundable if a large load does not proceed to execute an interconnection agreement following the Batch Study, Serena would recommend that only 20% of the posted financial security be non-refundable, as in this early stage of the process, retrieving or reducing the MW will not implicate in bigger transmission commitments. Either of these options would ensure that significant financial security is posted at the outset but mitigate the expense that a large load must bear if they determine that inadequate capacity is available for the commercial viability ofthe proposed project.”

Monarch Energy Additional Comments – “Monarch appreciates the changes the Commission made to reduce the amount of financial security and the interconnection fee that must be posted, as well as providing additional flexibility for demonstrating site control. As the deliberations of the Commission reflected, though, there remained concerns about whether posting of financial security should be tiered to reflect commercial development processes and the extent to which the financial security that is posted should be refundable. Monarch agrees that these are critical issues that need attention quickly, especially since ERCOT has proposed to apply the requirements of the PFP to Large Load Customers that seek to participate in Batch Zero of the Large Load Batch Study Process in its proposed Planning Guide Revision Request ( PGRR ) 145 , Batch Zero Process for Large Load Interconnections . This creates the risk of imminent harm to the ERCOT market.”