July 1, 2026

With approval from the Texas Public Utility Commission in June, ERCOT is moving “full steam ahead” on Batch Zero of its new Batch Connection Process. This marks a significant departure from the historical “first-come, first-served” interconnection approach toward a more structured, batch-based evaluation of large load additions.

Under ERCOT Issue PGRR145, Batch Zero transitions the grid to a process in which projects are grouped and studied together for their collective impact on grid reliability. The new framework applies to requested load interconnections of 75 MW or greater, and with a significant wave of large new users expected across ERCOT, the outcome of this process will influence future demand projections, wholesale power prices, and procurement decisions for market participants.

Key dates and implications

By July 10, developers must submit complete project information, including technical models, to the relevant Transmission or Distribution Service Provider. Projects that miss this milestone will not be considered in Batch Zero.

By August 7, ERCOT will notify developers of each project’s classification into one of three categories:

• Base Load: Projects that are deemed acceptable without further reliability study.
• Studied Load: Projects that will require additional reliability assessment work.
• Excluded: Projects that will not be part of Batch Zero but may reapply in subsequent batch processes.

If the share of Excluded projects is lower than market participants currently assume, forward power markets could react meaningfully to the implied upside in future ERCOT load growth.

In early spring 2027, ERCOT will inform all projects that remain in Batch Zero of their allocated interconnection volumes for the 2028–2032 period. In many cases, these allocations may be lower than the initially requested interconnection quantities, making this a pivotal data point for forward demand projections and price formation.

By late spring 2027, projects must demonstrate firm commitment to proceed. Required evidence will include, at a minimum, site control, posted collateral, and fully executed utility interconnection agreements. Projects that fail to meet these thresholds risk losing their allocated volumes.

Market takeaway (Conclusion)

With the ultimate volume and timing of large new loads still uncertain, ERCOT markets are trading on expectations rather than hard data. As Batch Zero classifications, allocated interconnection volumes, and project commitments are revealed, we should expect forward curves and basis dynamics to adjust quickly to the realized trajectory of large-load growth across the ERCOT footprint.

For more information about this or other developing regulatory matters that may affect your energy supply costs please contact your Tradition Energy Advisor.