Texas Senate Bill 6 And Impacts On Large Load Development In ERCOT

On 12 February 2025, Texas Senate Bill 6 (SB6), authored by Sen. Phil King and Sen. Charles Schwertner, was filed. The low bill number on this indicates it is a priority bill and will likely have momentum. If passed, this bill will directly impact entities currently in or contemplating a co-location arrangement in the Electric Reliability Council of Texas (ERCOT) region. A co-location arrangement is where generation and load are located at the same point on the grid.

If passed, SB6 would require the Texas Public Utility Commission (PUC) to, "implement minimum rates that require all retail customers in that region [ERCOT] served behind-the-meter to pay retail transmission charges based on a percentage of the customer's non-coincident peak demand from the utility system as identified in the customer's service agreement." Many large load entities have pursued co-location arrangements to avoid transmission costs so if passed this will result in a shift. The bill would