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Staff Seeks PUC Approval of Proposed Large Load Demand Management Rule
On July 24, Texas PUC issued a Staff memo and proposal for publication for consideration at the Texas Commission’s July 30,2026 Open Meeting proposing new 16 Texas Administrative Code (TAC) §25.521, relating to Large Load Demand Management Service.
“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. Commission Staff recommends the Commission approve this draft for publication in the Texas Register.”
