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Oncor backs Texas data-center “freeze” tied to ERCOT’s new “Batch Zero” interconnection process, company says on earnings call
The Apex Times

THE APEX TIMES

Politics/The Apex Times/Aug 7, 9:29 PM EDT

Oncor backs Texas data-center “freeze” tied to ERCOT’s new “Batch Zero” interconnection process, company says on earnings call

Oncor executives told analysts the utility supports Gov. Greg Abbott’s move to pause certain large-load interconnection work while ERCOT’s new “Batch Zero” queue is implemented. The company cited uncertainty in timelines for the interconnection process.

2 min readEditor-approved Apex article

Texas utility Oncor said it supports Gov. Greg Abbott’s data-center freeze, after executives discussed large-load interconnection timelines during a Thursday earnings call, according to a report by as carried by Zero Hedge.

Oncor’s executives said about 44 gigawatts of large-load projects in its service territory had qualified for ERCOT’s newly created “Batch Zero” interconnection process for large loads. That process is intended to manage how large demand projects move through interconnection rather than relying on older queue structures.

The company also told analysts that timing for the “Batch Zero” process remains uncertain after Abbott issued an order affecting the pace of some large-load development. Oncor’s support, as described in the report, was tied to the governor’s effort to pause or constrain certain data-center-related interconnection activity while the state and ERCOT finalize implementation details.

The issue centers on how the grid operator processes and schedules new high-demand connections, which can influence utility planning, project timelines, and customer costs. ERCOT’s interconnection approach for large loads, including which projects qualify and how quickly they progress, affects when load growth can be served reliably.

Abbott’s order, as characterized in the report, has become a focal point for utilities and large-load developers seeking clarity on how quickly projects can proceed. The report indicates Oncor’s executives are looking to the “Batch Zero” process and the state’s policy direction to shape the near-term path for projects in its footprint.

While Oncor said it supported Abbott’s freeze, the company’s remarks as reported emphasized that the schedule for the interconnection mechanism is not settled. That uncertainty affects planning horizons for both utilities and the customers pursuing new power demand.

The next practical question for stakeholders is how ERCOT operationalizes “Batch Zero” and how Abbott’s order is implemented with respect to qualified large-load projects, including the pace at which they can move forward in Oncor’s service territory.

Why It Matters

  • ERCOT’s “Batch Zero” interconnection timeline can materially affect when large power demand customers can connect and when utilities can plan grid upgrades.
  • A state-level “freeze” tied to interconnection policy can slow or redirect project schedules for large-load developers within Oncor’s footprint.
  • Uncertainty over interconnection timelines can affect planning and cost expectations across utilities and power users, depending on how charges and upgrades are structured.
  • The implementation details of Abbott’s order and ERCOT’s “Batch Zero” process will shape the near-term regulatory and operational path for qualified large-load projects.

Sources

Key Facts

  • Oncor executives told analysts during a Thursday earnings call that they support Gov. Greg Abbott’s data-center freeze, according to a report that referenced.
  • Oncor said about 44 gigawatts of large-load projects in its service territory qualified for ERCOT’s “Batch Zero” interconnection process for large loads.
  • The report said Oncor’s executives described uncertainty in timelines for the “Batch Zero” process following Abbott’s order affecting large-load interconnection pace.
  • The dispute involves how ERCOT and Texas coordinate the process and timing for new large power connections, especially for data-center-type load growth.