Discussion on the demand from data centers and implications if SB6 doesn't pass.
SB6 provides a mechanism for data centers to engage in grid responsiveness during emergencies.
Without SB6, data centers are modeled as firm loads, potentially causing local transmission constraints.
SB6 allows data centers to be flexible, promoting growth and grid reliability.
Current strategy involves studying each data center's impact on transmission and curtailing growth if risks are detected.
Historical data on resource capacity additions show shifts in energy sources, highlighting intermittency issues with solar and wind.
The effective load carrying capacity is lower, especially in winter peaks due to battery limitations and lack of solar support.
There is a noted decline in incentive for gas generation, with hopes for change via the Texas Energy Fund.
Discussion on shifting supply lines for energy sources back to domestic production in the U.S.
▶️Senator Campbell to Pablo Vegas, Accurate Forecasts
The focus is on achieving a more accurate load forecast to avoid significant adjustments.
Currently, forecasts may be altered based on historical data to maintain practical expectations.
Senator Campbell questions the measures beyond signed contracts for improving forecast accuracy.
Vegas mentions utilizing recent historical data and actual system developments for adjustments.
The existing forecast shows significant growth predictions, such as data center loads within ERCOT reaching 80 gigawatts.
There is a reliance on signed contracts as key evidence due to their financial commitments.
The discussion mentions potential legislative actions like SB6 to aid in standardizing incoming data.
Vegas acknowledged this adjustment is a temporary measure while gaining further track record data.
▶️Senator Nichols to Pablo Vegas, Colocation and Transmission
Senator Nichols focused on the forecast for data centers and their power requirements.
He questioned how data centers bringing their own power or connecting to the grid affects the demand forecast displayed in the gray band.
Clarification was sought on whether the data centers' self-generated power impacts the forecast numbers, which showed the full gross demand regardless of self-generation.
Senator Nichols expressed concern that the benefit of data centers bringing their own power is not reflected in the current forecasts.
He suggested that a separate chart should depict new power generation associated with data centers.
There was an emphasis on the need to look forward and plan for potential capacity shortfalls.
The suggestion was made to directly contact data centers to understand their plans regarding power generation and grid reliance.
By gathering firm data on these plans, ERCOT can better forecast power capacity needs and reduce uncertainty.
▶️Senator Zaffirini to Pablo Vegas, Approval of NPRR1190 and PGRR107
NPRR1180 and PGRR107 were posted in May 2023 but not approved until January 2025 due to undisclosed reasons.
Concerns were raised and expressed about transparency and load values. These concerns were not addressed in the previous forecast but were addressed in the current forecast.
The TAC approved NPRR1180 with four abstentions due to concerns about high load numbers and the risk of overdevelopment.
Updates in the report do not impact data centers or their customers directly but provide tools for better modeling and forecasting.
Nothing in the forecast limits data centers from moving forward with development projects.
Senator Campbell emphasized the importance of accurate forecasts and recommended verifying project developments by reaching out to parties.
There are concerns over the vast amount of generation projects proposed (400 gigawatts) and the importance of verifying these projects to ensure accurate forecasts.
SB2211 aims to address issues by leveraging Texas' natural resources, such as abundant natural gas and produced water from the Permian Basin.
Proposal to attract data centers due to Texas' favorable business climate, aiming to solve energy and water cooling needs.
Plan to use desalinated produced water as an alternative freshwater resource for industrial purposes.
Incentives offered through SB2211 include recognizing digital products and desalinated water as industrial products, allowing cogeneration facilities flexibility.
Integration of power generation, water desalination, and data centers could reduce strain on the electric grid and freshwater demand.
Acknowledgement of concerns from co-ops, with efforts to address these concerns, possibly by removing co-ops involvement in specific projects.
Senator Kolkhorst clarifies that Senator Sparks is looking to remove co-ops from certain areas to fit the project scenario.
The chair introduced SB2268 and Senator Schwertner explained the bill.
The Texas Energy Fund (TEF) was previously passed to incentivize new energy generation.
Market influences, such as supply chain disruptions and permitting delays, are affecting the TEF application process.
SB2268 aims to address these challenges by allowing the Public Utility Commission (PUC) to extend the ERCOT loan program deadline beyond 12/31/2025 on a case-by-case basis.
The bill provides flexibility in the administration of the TEF loan program, helping qualified applicants impacted by uncontrollable market forces.
No questions were posed to Senator Schwertner following the explanation.
Public testimony on SB2268 was opened but no one testified.
Public testimony was closed and the bill was left pending.
