Public Utility Commission of Texas

SB 6 large load rulemaking — Senate Bill 6 (2023) directed PUCT to establish a $50,000/MW interconnection fee for new large loads (primarily data centers) connecting to the ERCOT grid. PUCT opened Docket 56368 to implement the rule. The rulemaking addresses cost allocation between large industrial customers and existing ratepayers, standby power reliability obligations, and demand response requirements. Decision expected mid-2026; material for hyperscale data center siting in Texas.

Oncor rate settlement — Docket 58306 settlement approved January 2026; $560M annual rate reduction effective immediately. Settlement resolved Oncor's pending rate case and established a performance-based ratemaking framework. Sets precedent for how PUCT handles large TDU rate cases and cost-of-service disputes going forward.

Patrick Rhode appointment — Governor Abbott appointed Patrick Rhode as PUCT Chairman effective April 1, 2026. Rhode previously served as deputy administrator of FEMA and has a state emergency management background. His appointment signals continued focus on grid resilience and extreme weather preparedness as a PUCT priority alongside competitive market design.

ERCOT demand growth and resource adequacy — ERCOT projects record summer peak demand in 2026, driven by data center load growth and continued industrial electrification. Reserve margin forecasts are tighter than PUCT's established minimum. PUCT is evaluating whether performance credit mechanism (PCM) reforms are sufficient or whether additional capacity procurement mechanisms are needed.

CenterPoint post-Beryl regulatory obligations — Following Hurricane Beryl (July 2024) outages affecting 2.2M customers, PUCT imposed performance benchmarks and vegetation management milestones as conditions of CenterPoint's 2025 rate case settlement. PUCT staff are monitoring quarterly compliance reports through 2027.