Chris Kirby Quoted by E&E News on Texas Grid Interconnection Plan for Data Centers

Chris Kirby, partner in the Austin office and member of the firm’s Energy Practice, was quoted in E&E News regarding the Electric Reliability Council of Texas’ (ERCOT) proposed framework for evaluating large-load interconnection requests from data centers and other major electricity users.

The article, published March 6, examines ERCOT’s proposed “Batch Zero” process, which would evaluate applications from large power users, including data centers, seeking to connect to Texas’ primary electric grid. 

In his interview, Chris explained ERCOT is facing unprecedented demand growth, with more than 238 GW of large-load interconnection requests compared to a historic peak demand of 85.5 GW. Because the traditional sequential study process has become inefficient amid the surge in applications, ERCOT is transitioning to a batch study system. As an interim step, ERCOT has proposed “Batch Zero”, while working with the Public Utility Commission of Texas (PUCT) and stakeholders to develop a process that supports project development and maintains grid reliability.

Chris noted that developers will likely face uncertainty about whether their projects will secure a place in the initial study group until shortly before ERCOT begins its evaluation later this year. 

Batch Zero “will probably account for what the current transmission system can reliably and safely serve,” E&E quoted Chris as saying. “Loads not in Batch Zero are likely to have to wait for new transmission to be built to serve them, which will take six years or so, although that will vary by project.”

In the article, Chris explained ERCOT is working on proposed rules that could allow some data centers to power on more quickly — without being part of the batch system — by doing things such as building their own onsite power generation or agreeing to let ERCOT turn off at least some of their power during times of peak demand.

Chris added that the PUCT is in the process of adopting rules to establish new large load interconnection standards. That rule will interplay with the new ERCOT process. The rule draft includes things like requiring fees, posting security, paying contribution in aid of construction to the transmission service provider and disclosing all relevant information to the PUCT and ERCOT.

In his practice, Chris advises clients throughout the ERCOT region on transactional, public policy and legislative matters. Chris works on all aspects of transactional matters in the ERCOT market, including significant power plant acquisitions. Chris also represents market participants before the Public Utility Commission of Texas and ERCOT in compliance matters, rulemaking proceedings and in contested cases. In addition, Chris worked in the Texas Legislature for three legislative sessions and assists clients in a variety of legislative matters, including providing expert testimony at legislative committee hearings and bill drafting.