Texas Data Center Audit Raises Questions About Grid Costs and Consumer Bills
Texas is still awaiting rules from the Public Utility Commission on how to allocate transmission upgrade costs associated with data centers and other large power users. CenterPoint Energy has collected nearly $900 million in security deposits for projects in the Houston area, but it remains unclear whether customers could ultimately bear some of the costs.
Texas Gov. Greg Abbott called for an audit of data centers in August amid concerns about the effect of large power users on the state’s grid and electricity bills. Houston Business Journal energy reporter Naomi Klinge said the Public Utility Commission of Texas is still developing rules and procedures intended to prevent transmission upgrade costs from being shifted to residential customers.
The audit covers all large loads of more than 75 megawatts moving through the Electric Reliability Council of Texas interconnection queue, including advanced manufacturing, industrial and chemical facilities, and cryptocurrency mining operations. ERCOT has reported more than 400 gigawatts of demand in its queue, about 90% of which is associated with data centers. In Houston, CenterPoint Energy said roughly 14 gigawatts are part of the process, with some of the largest local projects involving advanced manufacturing rather than data centers.
Large facilities have been required to provide a $50,000-per-megawatt security deposit. CenterPoint said it has collected nearly $900 million and is already using the money for transmission upgrades, but the PUC has yet to determine whether companies will receive some deposits back or whether any remaining costs will be passed to consumers.