Federal Regulators Order Grid Operators to Reform Data Center Connection Rules, Central Texas Landowners Oppose Transmission Line
Texas landowners are challenging a $2 billion transmission line project in Central Texas due to alleged improper notification, while federal regulators have mandated that grid operators revise their rules for connecting data centers and other large customers to the grid. The move aims to expedite connections while ensuring grid reliability.
Federal regulators have issued a directive requiring the nation's six major electric grid operators to propose reforms or justify existing rules regarding how data centers and other large customers connect to the grid. The Federal Energy Regulatory Commission (FERC) has given operators 60 days to propose changes aimed at expediting connections while also incorporating protections for residential and small commercial customers. Additionally, grid operators must report within 30 days on how they will ensure adequate generation capacity for existing and new large loads, including examining co-location agreements and behind-the-meter energy supplies for data centers.
Meanwhile, in Texas, hundreds of Central Texas landowners have filed a formal petition seeking a pause in the Public Utility Commission (PUC)'s approval process for a $2 billion, 765-kV transmission line upgrade from Bell County East to Big Hill. The landowners allege improper notification regarding route changes for the project, which PUCT staff recommended based on an ERCOT study to move power more efficiently from West Texas, where load is growing rapidly due to factors including data center development. Utilities, including Oncor, are resisting any slowdown, emphasizing the critical need for new transmission capacity to maintain a reliable system.