> ## Content Index > Fetch the complete content index at: https://www.sotkn.com/llms.txt > Use this file to discover other available public pages before exploring further. # $50,000 a Megawatt: Who Gets Paid While Texas Holds the Switch - URL: https://www.sotkn.com/markets/us/us-texas-large-load-rule-october-2026/ - Published: 2026-10-08T08:12:51.000Z - Updated: 2026-10-08T08:14:45.000Z - Description: Texas's new large-load rule took effect on 8 Oct: $50,000 of security per megawatt and a $100,000 study fee before a big data center can join a grid study. Wire companies get paid first. ERCOT's approval to switch on stays paused while it checks projects; its reports are due 10 Dec. - Author: Sean - Tags: #market-us, Markets, Power, Hyperscalers *Texas just put a price on a place in line. From 8 Oct 2026, a new data center of 75 MW or more must post $50,000 of security per megawatt, and pay a $100,000 study fee, before the state grid will even study it. That is $50 million for a 1 GW campus (our arithmetic). The wire companies get paid first. But the money is not the hard part. Since 3 Aug, the grid operator has paused its yes to switch on new big data centers. That pause, not demand, sets the pace.* **US PULSE** · Data as at 8 Oct 2026 · Next update: after ERCOT’s reports due 10 Dec 2026 **Affects:** [Hyperscalers](https://www.sotkn.com/stack/hyperscalers/) · [Neoclouds](https://www.sotkn.com/stack/neoclouds/) · [Semiconductors](https://www.sotkn.com/stack/semiconductors/) — Markets: [US](https://www.sotkn.com/markets/us/) · [Taiwan](https://www.sotkn.com/markets/taiwan/) · [Korea](https://www.sotkn.com/markets/korea/) · [China](https://www.sotkn.com/markets/china/) **In short:** The Public Utility Commission of Texas rule 16 TAC §25.194 took effect on 8 Oct 2026\. Before a load of 75 MW or more can join an ERCOT grid study, it must sign an interim deal with its wire company, disclose key facts, pay a flat $100,000 study fee and post $50,000 per MW of security. ERCOT has paused approvals to energize new data centers of 75 MW or more since 3 Aug 2026 while it checks every project. Its reports are due 10 Dec 2026\. Map of who gets paid — not a buy list. Education only, not advice to buy or sell any security. Press figures and our own sums are labelled. ### The numbers that matter this week Security to join a grid study $50,000 per MW New loads of 75 MW or more · in force 8 Oct 2026 Primary Study fee $100,000 flat Same for every large load · tiers were dropped Primary Security for a 1 GW campus $50 million $50,000 × 1,000 MW, our arithmetic Our math ERCOT large-load queue 474 GW About 90% data centers · Utility Dive, 21 Sep Press Oncor customer collateral, 1 Aug About $5.9B About $2B of it tied to Batch Zero projects Primary ERCOT approval to switch on Paused New data centers of 75 MW+ since 3 Aug · reports due 10 Dec Stuck step Sources: PUCT Project 58481 and Texas Register receipt; ERCOT, Aug–Sep 2026; Oncor, 6 Aug 2026; Utility Dive. Status chips are Second Order’s read. **On this page:** [Why Texas?](#why-texas) · [What the rule says](#what-changed) · [Our math](#our-math) · [Not switched on yet](#not-on) · [Who gets paid first](#money-goes) · [Is switch-on stuck?](#still-stuck) · [Dates next](#dates) · [How this differs](#different) · [What would change this](#change-view) · [FAQ](#faq) ## Why does a Texas grid rule matter for the AI build? Because a lot of the big AI halls want to go to Texas. Most of the state’s grid is run by one body, ERCOT, under one regulator, the Public Utility Commission of Texas (PUCT). When they change the rules, many US data center plans feel it at once. The size of the ask is the story. Utility Dive puts ERCOT’s queue of large-load requests at 474 GW, and says about 90% of it is data centers. That is about 427 GW of data center asks (our arithmetic). Nobody expects all of it to be built. But the grid has to sort real projects from wish lists, and that sorting now has a price and a pause. If you are new to who buys these halls, start with [Hyperscalers, explained](https://www.sotkn.com/explained/hyperscaler-explained/) and [what a neocloud is](https://www.sotkn.com/explained/neocloud-explained/). The question here is not “is AI demand strong?” The queue says it is. The question is who gets paid while the grid decides, how much cash sits in line, and which step sets the pace. 1 · Developers ask to connect **Who:** Hyperscalers, neoclouds, crypto miners, their developers **Paid:** Post $50,000 per MW of security and a $100,000 study fee (rule in force 8 Oct) Paying 2 · Wire companies hold the money **Who:** Oncor and other Texas wire companies **Paid:** Oncor held about $5.9B of customer collateral on 1 Aug 2026 Paid first 3 · ERCOT says yes to switch on **Who:** ERCOT, after its check of each project **Paid:** Approvals for new data centers of 75 MW+ paused since 3 Aug · reports due 10 Dec Stuck step ## What does the new rule say? ![Chart: ERCOT large-load queue 474 GW, about 90% data centers; 302.2 GW not in Batch Zero; Batch Zero studied 127.9 GW and base 66.4 GW; 17 sites with 6.6 GW waiting only on switch-on approval.](https://storage.ghost.io/c/cd/10/cd10e222-131f-4ba4-b4a9-ca4214e8c12d/content/images/2026/10/us-texas-large-load-rule-october-2026-print.png) ERCOT and PUCT filings, Aug–Sep 2026; Utility Dive, 21 Sep 2026\. Figures are from different dates. Education only. The rule comes from Senate Bill 6, a 2025 Texas law on big new loads. The PUCT filed its final order on 18 Sep 2026\. It took effect on 8 Oct 2026, today. It covers sites not yet switched on that want a new link of 75 MW or more, a 75 MW-plus expansion, or a spot beside a power plant. Before ERCOT will put such a load in a grid study, the customer must do four things. Sign an interim agreement with its wire company. Disclose facts about the project, such as how it plans to get power. Pay a $100,000 study fee. And post security of $50,000 per megawatt of the peak demand it asks for. The final rule is softer than the March draft. The draft had a non-refundable fee of $50,000 per MW and study fees in tiers by size. The commission dropped the fee and set one flat study fee. In its words, the security that is left is there “to protect against stranded infrastructure costs” and is not a fee. The draft also gave a site six months of slip before its wire company had to report unused capacity to ERCOT. The final rule gives 24 months, across the whole switch-on schedule. 16 TAC §25.194, in force 8 Oct 2026 Who it coversNew or expanded loads of 75 MW or more not yet switched on Study fee$100,000 flat · unused part returned Security to join a study$50,000 per MW of requested peak demand Walk away after getting capacityWire company keeps 20% of that security Switch on20% of the balance back, then the rest in 20% steps Slip allowed before capacity is reported unused24 months on the schedule as a whole Inflation updateFrom 2032, every five years PUCT order adopting 16 TAC §25.194, Project 58481 (18 Sep 2026); Texas Register receipt; Utility Dive, 21 Sep 2026. ## Our math: what does $50,000 per MW mean? - A 1 GW campus asks for 1,000 MW. At $50,000 per MW, it posts $50 million of security, plus the $100,000 study fee (our arithmetic). - If that campus gets grid capacity and then walks away before the next agreement, the wire company keeps 20%: $10 million (our arithmetic). - When it switches on, it gets 20% of what is left back: $10 million on a full $50 million balance. The other $40 million comes back in 20% steps as it meets the milestones in its contract (our arithmetic). - Oncor said it held about $2 billion of large-load collateral for about 44 GW of Batch Zero asks. That is roughly $45,000 per MW (2,000 ÷ 44,000, our arithmetic). Leave out the 8 GW of existing load in that 44 GW, and it is about $56,000 per MW. That last line matters. Oncor’s own collateral is already close to the new state rate. So for many serious projects, $50,000 per MW is not a new cost so much as one rule for everyone. It mostly prices out the asks that were never going to be built. Is $50 million a lot next to a 1 GW AI campus? No. But it is cash that sits still until the site switches on. See [cash capex, explained](https://www.sotkn.com/explained/cash-capex-explained/) for why cash that leaves early matters, and [who finances GPU clusters](https://www.sotkn.com/explained/who-finances-gpu-clusters/) for who carries it. ## What is still not switched on? ![Chart: what a 1 GW Texas campus posts under the new rule — $50 million security, $10 million kept if it walks after getting capacity, 20% back at switch-on, $100,000 study fee.](https://storage.ghost.io/c/cd/10/cd10e222-131f-4ba4-b4a9-ca4214e8c12d/content/images/2026/10/us-texas-large-load-rule-october-2026-shift.png) PUCT order adopting 16 TAC §25.194, filed 18 Sep 2026, in force 8 Oct 2026\. Our arithmetic on a 1,000 MW ask. Education only. The rule decides who can get in line. It does not switch anything on. That part is paused. On 3 Aug 2026, Governor Greg Abbott told the PUCT and ERCOT to check every data center in the queue first. ERCOT paused its Batch Zero study and held back approvals to energize new data centers and crypto sites of 75 MW or more. Batch Zero is ERCOT’s first group study of big loads. The idea is to study them together, share out the grid capacity, and build one plan for new lines. Here is where it stood in September: - 362 large loads made the provisional list: 204 projects with 66.4 GW as “base” load and 158 projects with 127.9 GW as “studied” load, per ERCOT’s September board deck. That is about 194 GW (our arithmetic). - ERCOT’s 11 Sep slides to the PUCT put another 302.2 GW, across 373 projects, outside Batch Zero. - In August, ERCOT said 17 big data center and crypto loads, with 6,608 MW of peak demand over five years, had finished every ERCOT step except approval to switch on. The figures come from different dates, so they do not add up exactly. The shape is clear: hundreds of gigawatts asking, about 194 GW in the first study, and about 6.6 GW ready except for one yes. It is not only the grid. On 21 Sep the governor told the state environment agency, TCEQ, to halt permits for data center projects until ERCOT’s review is done, as Bracewell lawyers describe in the Texas Lawbook. That reaches sites that planned their own on-site power, too. TCEQ must report back on compliance by 19 Oct. ## Who gets paid first? ![Infographic: who gets paid while Texas holds the switch — wire companies first, developers carry the cost, small and existing sites keep going, ERCOT switch-on approval sets the pace.](https://storage.ghost.io/c/cd/10/cd10e222-131f-4ba4-b4a9-ca4214e8c12d/content/images/2026/10/us-texas-large-load-rule-october-2026-infographic.png) Who gets paid while Texas holds the switch. Sources: PUCT 58481; ERCOT 3 Aug, 20 Aug and 14–15 Sep 2026; Oncor 6 Aug 2026\. Education only. Follow one big data center ask. Money moves well before power does. First, the wire companies. In Texas these are the transmission and distribution firms, such as Oncor in the Dallas–Fort Worth area. They collect the study fee and hold the security. If a project quits, they keep part of it to cover what they already spent. If it goes ahead, they build the lines and substations, and those go into the asset base they earn a regulated return on. Oncor shows the scale. At the end of June its queue for big transmission customers had 737 requests, with about 282 GW from data centers and more than 16 GW from other industry. On 1 Aug it held about $5.9 billion of customer collateral. Its capital plan is $47.5 billion, and Sempra, its parent, said that plan does not yet include Batch Zero work. Oncor will update the plan in the fourth quarter. Batch Zero spending will not enter it until 2027 at the earliest. Second, the developers, who carry the cost. They post the cash, pay for the study, and wait. Google, Crusoe, CloudHQ and Tesla were among those who commented on the rule. Their loans run on a clock. The grid’s clock is now a state audit. Third, the sites that are not paused. ERCOT says the pause does not touch medium loads of 25 MW to 75 MW, or big loads that are not data centers. And sites already switched on keep running. That is a real edge for small, fast sites, the kind we looked at in [the AI labs small-MW Pulse](https://www.sotkn.com/markets/us/us-ai-labs-small-mw-september-2026/). Fourth, power plants, later. Sempra’s chief executive said close to 500 GW of generation is waiting to connect in Texas, next to over 400 GW of large-load asks. For what buyers pay elsewhere, see the Wire on [Black Hills building gas power for Google in Wyoming](https://www.sotkn.com/wire/black-hills-google-cheyenne-gas-power-wire/) and [Google’s 890 MW nuclear uprate deal](https://www.sotkn.com/wire/google-constellation-890-mw-nuclear-uprates-wire/). ## Is switch-on the stuck step? On our read, yes. Demand is not the limit in Texas right now. Money is not the limit either. The limit is one approval. A data center can have land, a building, chips and a power deal. It still cannot draw grid power until ERCOT approves it to energize. For new 75 MW-plus data centers, that has been on hold since 3 Aug. - ERCOT first had to tell wire companies each project’s Batch Zero status by 7 Aug. It gave a provisional list on 3 Sep instead. Final status comes in December. - ERCOT will file its eligibility report and its community impact report by 10 Dec. The PUCT meets on 17 Dec. - The Batch Zero study was due by 9 Apr 2027\. ERCOT says the new date is still to be decided. - ERCOT asked the PUCT to let 17 large loads that hope to switch on in April to June 2027 into its 1 Nov stability check. Being in that check does not by itself let them switch on. A caution: this is a pause with a date, not a ban. The 8 Oct rule shows Texas still wants these loads, on its terms. The stuck step sets the pace of new halls. It has not stopped the money moving. We looked at a similar permission step for one hyperscaler in [the Amazon site-permission Analysis](https://www.sotkn.com/analysis/amazon-site-permission-stuck-step-what-price-assumes/), and at how a grid credit works in [the FERC Joliet credit Pulse](https://www.sotkn.com/markets/us/us-ferc-joliet-credit-september-2026/). The general pattern is in [Where does the stuck step move?](https://www.sotkn.com/analysis/where-does-the-stuck-step-move/). ## What dates matter ![Calendar: Texas large-load rule in force 8 Oct 2026, TCEQ report 19 Oct, ERCOT stability check 1 Nov, ERCOT reports 10 Dec and PUCT meeting 17 Dec, Batch Zero study once due 9 Apr 2027.](https://storage.ghost.io/c/cd/10/cd10e222-131f-4ba4-b4a9-ca4214e8c12d/content/images/2026/10/us-texas-large-load-rule-october-2026-calendar.png) Dates to watch for the Texas read. Education only. Dates to watch 3 Aug 2026Governor’s directive; ERCOT pauses switch-on for new 75 MW+ data centers (done) 18 Sep 2026PUCT files order adopting 16 TAC §25.194 (done) 8 Oct 2026Rule in force: $50,000 per MW, $100,000 study fee (done) 19 Oct 2026TCEQ reports to the governor on the data center permit pause 1 Nov 2026ERCOT stability check entry date; 17 loads eye April–June 2027 Q4 2026Oncor capital plan update 10 Dec 2026ERCOT eligibility and community impact reports 17 Dec 2026PUCT open meeting 9 Apr 2027Original Batch Zero study deadline, now to be decided Texas Register; ERCOT notices, filings and slides, Aug–Sep 2026; Utility Dive; Texas Lawbook. We do not invent dates. ## How is this different from … - US data-hall construction Pulse (6 Oct): how much the US is spending to build halls. This is the step that lets a finished hall draw power. - FERC Joliet credit Pulse (Sep): a federal grid ruling in another market. This is one state pricing its own queue. ## What would change this view? The “wire companies paid first, switch-on sets the pace” read weakens if: - ERCOT lifts the switch-on pause before its 10 Dec reports, or clears most projects at once - The PUCT or lawmakers change the $50,000 per MW security again, up or down - Large numbers of projects withdraw, so security is kept or returned instead of turning into lines - Big buyers move new halls out of Texas, or to sites under 75 MW, at scale It stays intact while the pause holds and the queue stays in the hundreds of gigawatts. ## Practical takeaways - From 8 Oct 2026, a new Texas load of 75 MW or more posts $50,000 per MW and pays $100,000 to join a grid study - That is $50 million for a 1 GW campus; 20% is kept if it walks after getting capacity (our arithmetic) - Who gets paid first: the wire companies; Oncor held about $5.9 billion of collateral on 1 Aug - Stuck step: ERCOT’s approval to switch on new big data centers, paused since 3 Aug; reports due 10 Dec ## FAQ **What changed in Texas on 8 Oct 2026?** A new state rule, 16 TAC §25.194, took effect. A new load of 75 MW or more must pay a $100,000 study fee and post $50,000 of security per megawatt before ERCOT will study it. **Is the $50,000 per MW a fee?** No. The commission dropped the fee it proposed in March. It is security, returned in steps after switch-on; 20% is kept if a customer walks away after getting capacity. **Can new big data centers switch on in Texas now?** Not most. Since 3 Aug 2026 ERCOT has paused approvals to energize new data centers of 75 MW or more. Its reports are due 10 Dec 2026. **Who gets paid first?** The wire companies, such as Oncor. They collect fees and hold security now, and build the lines later. Developers carry the cost of waiting. **Is this investment advice?** No. Education only. It maps who gets paid and which step is stuck. It is not a recommendation to buy or sell any security. ## Keep reading on the map - [US Markets hub](https://www.sotkn.com/markets/us/) — country page - [US data-hall construction Pulse (6 Oct)](https://www.sotkn.com/markets/us/us-data-center-construction-october-2026/) — the build - [AI labs small-MW Pulse (Sep)](https://www.sotkn.com/markets/us/us-ai-labs-small-mw-september-2026/) — the small, fast sites - [FERC Joliet credit Pulse (Sep)](https://www.sotkn.com/markets/us/us-ferc-joliet-credit-september-2026/) — a grid ruling - [Korea Samsung Q3 Pulse (8 Oct)](https://www.sotkn.com/markets/korea/korea-samsung-q3-profit-october-2026/) — the memory side - [China Alibaba 20 GW Pulse (7 Oct)](https://www.sotkn.com/markets/china/china-alibaba-20gw-october-2026/) — power plans elsewhere **Get the Wire.** Second Order’s free daily brief on what moved in the AI chip map. [Read the Wire →](https://www.sotkn.com/the-wire/) · [Subscribe free →](https://www.sotkn.com/#/portal/signup) **Members’ Analysis (teaser):** A site can have money, land and chips and still wait for permission. What does Amazon’s price assume about that step? The free line: permission sets the clock. [Read the Analysis →](https://www.sotkn.com/analysis/amazon-site-permission-stuck-step-what-price-assumes/) **How we check this** The rule terms come from the Public Utility Commission of Texas order adopting 16 TAC §25.194 (Project 58481, filed 18 Sep 2026) and the Texas Register receipt that gives the 8 Oct 2026 effective date. Queue, pause and project counts come from ERCOT’s market notices, its PUCT filings and slides of August and September 2026, and its September board deck. Oncor figures come from its second-quarter release of 6 Aug 2026\. The 474 GW queue figure is Utility Dive’s. The permit pause is as described by Bracewell lawyers in the Texas Lawbook. Where we work something out ourselves, the sum is shown and labelled *our arithmetic*. **Last reviewed:** 8 Oct 2026 · **Next review:** after ERCOT’s verification and community reports, due 10 Dec 2026 Spot an error? [Tell us](mailto:sean@thekopinotes.com) and we will correct it and note the change here. [Our editorial standards →](https://www.sotkn.com/editorial-standards/) Not investment advice. Do your own research. --- ### Sources - Public Utility Commission of Texas — Order adopting new 16 TAC §25.194, Project 58481 (18 Sep 2026): [interchange.puc.texas.gov](https://interchange.puc.texas.gov/Documents/58481%5F218%5F1684654.PDF?ref=sotkn.com) - Public Utility Commission of Texas — Texas Register receipt, effective 8 Oct 2026 (18 Sep 2026): [interchange.puc.texas.gov](https://interchange.puc.texas.gov/Documents/58481%5F219%5F1684678.PDF?ref=sotkn.com) - ERCOT — Market notice: Governor’s directive and Batch Zero (3 Aug 2026): [ercot.com](https://www.ercot.com/services/comm/mkt%5Fnotices/M-A080326-01?ref=sotkn.com) - ERCOT — Request for good cause exceptions, PUCT Project 58317 (Aug 2026): [interchange.puc.texas.gov](https://interchange.puc.texas.gov/Documents/58317%5F27%5F1672569.PDF?ref=sotkn.com) - ERCOT — Batch Zero verification and audit, PUCT presentation (20 Aug 2026): [ercot.com](https://www.ercot.com/files/docs/2026/08/20/Batch-Zero-Verification-and-Audit-PUCT-Presentation.pdf?ref=sotkn.com) - ERCOT — Market notice: Batch Zero verification RFIs (9 Sep 2026): [ercot.com](https://www.ercot.com/services/comm/mkt%5Fnotices/M-A090926-01?ref=sotkn.com) - ERCOT — Batch Zero update to the PUCT, Project 59142 (11 Sep 2026): [interchange.puc.texas.gov](https://interchange.puc.texas.gov/Documents/59142%5F55%5F1681987.PDF?ref=sotkn.com) - ERCOT — Batch Zero update, board of directors (14–15 Sep 2026): [ercot.com](https://www.ercot.com/files/docs/2026/09/11/14-Batch-Zero-Update.pdf?ref=sotkn.com) - ERCOT — PGRR145, Batch Zero process for large load interconnections: [ercot.com](https://www.ercot.com/mktrules/issues/PGRR145?ref=sotkn.com) - Oncor — Second quarter 2026 results (6 Aug 2026): [oncor.com](https://www.oncor.com/content/oncorwww/wire/en/home/newsroom/oncor-reports-second-quarter-2026-results.html?ref=sotkn.com) - Utility Dive — Oncor weighs impact of Texas data center freeze (7 Aug 2026): [utilitydive.com](https://www.utilitydive.com/news/fate-of-oncors-nearly-300-gw-load-pipeline-unclear-following-texas-data-ce/827303/?ref=sotkn.com) - Utility Dive — Texas PUC adopts softened rules on data center interconnection (21 Sep 2026): [utilitydive.com](https://www.utilitydive.com/news/texas-puc-adopts-data-center-interconnection-rules/830899/?ref=sotkn.com) - The Texas Lawbook — Abbott orders statewide pause on Texas data center permits (7 Oct 2026): [texaslawbook.net](https://texaslawbook.net/abbott-orders-statewide-pause-on-texas-data-center-permits/?ref=sotkn.com)