• Batch Zero process includes nearly 250 projects totaling 191.8 GW
• Final Batch Zero and medium-load community impact reports expected in December

ERCOT provided updated figures to the Public Utility Commission of Texas (PUCT) regarding its Batch Zero process at a state regulatory open meeting, which currently includes nearly 192 GW of studied projects.

During the early September 11 meeting, ERCOT’s Senior VP of Regulatory Policy, General Counsel and Chief Compliance Officer Chad Seely detailed the Batch Zero figures, which includes nearly 250 projects with a combined capacity of 191.8 GW. The 66.4 GW of capacity have been designated in the higher priority base load tier and 125.4 GW in the lower priority studied load tier. The 373 projects with a combined capacity of 302.2 GW were excluded from the process because they weren’t mature enough.

Seely notes the results are subject to change as they only represent preliminary classifications. Projects must still go through ERCOT’s eligibility verification process per Governor Greg Abbott’s August order impacting all data center load. This is being pursued by ERCOT starting with RFIs that have been sent to all Batch Zero load with responses due by September 23.

Similar RFIs will also be delivered to smaller data centers between 25 and 75 MW in the queue that are not part of Batch Zero but still subject to the verification audit. Seely said this currently includes 214 projects with a combined capacity of 12,535 MW.

ERCOT has also put two dispute processes in place for data centers classified as studied load that believe they should be classified as base load as well as for data centers that were excluded from Batch Zero entirely. Seely said the base vs. studied load processes should be wrapped in the next two weeks but that the exclusion review process would be slower.

Ultimately, ERCOT still expects to file both its Batch Zero eligibility verification report studying large loads as well as its community impact review report studying medium loads on December 10 and discuss both with the PUCT during its December 17 open meeting.

The PUCT also approved ERCOT’s good cause exception request to adjust its 2026 ancillary services methodology after it identified that it had under-purchased ancillary services at an average of 3.7 GW per day without detriment to grid stability during peak demand periods in July and August.

Portfolio Cases

Elsewhere during the meeting, the PUCT approved SWEPCO to convert two of its Welsh coal units to natural gas and to build the new 450 MW Hallsville Natural Gas project in Harrison County, Texas.

Together, the Welsh units account for 1,053 MW and both will be operational by the end of 2028.

The PUCT’s review of Southwestern Public Service Company’s (SPS) CCN for a nearly 4 GW portfolio of capacity selected vita its most recent all-source RFP, which was issued in 2024, was more contentious and resulted in the commission tabling the issue for a further meeting. The cost of SPS’s portfolio, clocking in at USD 9.3bn, was a point of major contention for intervenors in the case.

SPS has not publicly disclosed all of the individual projects included in its portfolio, but have indicated it includes five standalone solar, one solar + storage, four wind and one gas project across its West Texas and New Mexico footprint.

NPM has identified two of the wind projects included: 800 MW Lariat Wind in Bailey and Parmer counties, Texas and 300 MW Yellow House Wind in Lamb and Hale counties, Texas. One of the solar projects included is the 189 MW Sandy Loam Solar project in Lamb County, Texas. The gas project is the Gaines County Combustion Turbine project, a dispatchable gas peaker with a capacity of 1,160 MW in Gaines County, Texas. The full portfolio has already been approved by the New Mexico Public Regulation Commission (PRC).

Separate from this major portfolio, SPS is also seeking approval for the 322 MW Sagamore storage project in Roosevelt County, New Mexico and 150 MW Plant X storage project in Lamb County, Texas. It is also seeking approval for the transition of its Tolk coal project in Lamb County to a 928 MW gas project.

Interim President Brad Baldridge was on hand and said SPS needs the portfolio to serve an expansion of oil and gas load in West Texas as well as for large loads projects in its service territory and to satisfy planning reserve requirements from SPP. He argued against adopting cost cap measures included in the proposal for decision recommended by the administrative law judge (ALJ) in the Texas State office of Administrative Hearings (SOAH), claiming such measures would make it “extremely difficult to build these projects” and would result in re-evaluations and delays.

Case intervenors Texas Industrial Energy Consumers (TIEC) and Golden Spread Electric Cooperative argued against adoption of the CCN, arguing SPS’s resource process was flawed and that the company failed to demonstrate that they chose the most cost-effective projects. TIEC also criticized the portfolio’s reliance on renewables over gas generation due to their low seasonal accredited capacity in SPP’s methodology.

SPS has confirmed it abandoned plans to include a combined cycle gas project as part of the portfolio due to the timeline required to build such a project. It has also noted it is required to reach a 50% renewable portfolio by 2030 and 100% zero carbon energy portfolio by 2045 per New Mexico state law.

Other intervenors argued in favor of the CCN including the International Brotherhood of Electric Workers, Permian Basin Petroleum Association and Sierra Club while the Office of Public Utility Council pushed for more protections for ratepayers including cost caps, minimum production guarantees and production tax credit qualification requirements.

The commissioners ultimately decided to table the discussion to get further briefings from their counsel.

Transmission Projects

Commissioners considered amendments to several major transmission projects during the meeting, approving most but remanding one back to SOAH for further review.

The approved projects included Oncor and LCRA Transmission’s Bell County East Switch to Big Hill Substation 765 kV line across Bell, Burnet, Cohcho, Coryell, Pampasas, Llano, Mason, McCulloch, Menard, Milam, Mills, San Saba, Schliecher, Tom Green and Williamson counties, Texas. Other approved projects include two Reeves County transmission lines from Oncor and Texas New Mexico Power including the Dry Lake Switch to Faulkner Substation 345 kV line and Dry Lake Switch to Faulkner Substation 138 kV line.

The remanded project is Oncor and LCRA’s big Hill Substation to Sand Lake Switch 765 kV project impacting Crane, Crockett, Irion, Pecos, Reagan, Reeves, Schleicher, Tom Green, Upto and Ward counties.

Ultimately, the commissioners remanded the project to SOAH for further review, specifically for additional information regarding compliance with federal reliability standards and congestion costs.