Texas Energy Surge is unfolding as the Lone Star State rapidly expands, driving up its energy demands. With data centers, oil and gas operations, and major industrial facilities flocking to Texas, electricity consumption is rising at an unprecedented rate. The Electric Reliability Council of Texas (ERCOT), which manages the state’s power grid, forecasts that energy demand could nearly double within six years — a startling outlook that has lawmakers and industry leaders sounding the alarm.
A Growing Crisis: Uncertainty in Energy Forecasting
Republican State Senator Phil King of Weatherford, is among the most vocal critics of ERCOT’s current forecasting model. During a legislative hearing in February, he sounded the alarm over unreliable projections.
“We do not have accurate load forecasting. No one knows if the forecast is real,” King warned. He emphasized that some companies request ERCOT to plan for electricity demands “higher than anything experienced in the history of Texas — or the United States.”
He said this uncertainty could lead to dangerous consequences. Overestimating demand could result in overbuilding infrastructure, increasing consumers’ costs. On the other hand, underestimating demand could worsen power shortages, especially during extreme weather events.
Senate Bill 6: A Push for Structure and Accountability
To address these concerns, Republican Senator Phil King proposed Senate Bill 6, aiming to improve oversight and organization within ERCOT. The bill has cleared the Senate and is currently under review in the Texas House, starting with a scheduled committee hearing.
The bill targets industrial-sized operations—specifically those requiring more than 75 megawatts of power. It introduces several new mandates:
- Advanced Planning: Companies must disclose similar grid connection requests in other states.
- Backup Power Use: Facilities must report whether backup generators can supply at least 50% of their load. ERCOT can order those generators instead of grid electricity during emergencies.
- Emergency Shutoff Authority: ERCOT can cut off a facility’s power during a crisis with at least 24 hours’ notice.
- Transmission Contribution: Businesses must pay utilities at least $100,000 to study the feasibility of connecting to the grid and prove they can contribute to transmission infrastructure costs.
Industry Pushback: Balancing Grid Security with Economic Growth
While most agree the grid needs improvements, many in the business community argue that Senate Bill 6 may go too far.
A veteran energy policy attorney, Michael Jewell, emphasized the need for balance.
“This legislation is important to finding that balance—bringing large loads into the ERCOT region while ensuring grid reliability,” he said. “But we must not scare companies away.”
Industry stakeholders have voiced several concerns:
- Emergency Generator Use: Most facilities rely on diesel generators for backup, a practice regulated by the federal government and the Texas Commission on Environmental Quality. Forcing them to run during emergencies could lead to environmental violations.
- Proprietary Disclosures: Companies object to revealing out-of-state project details, which they argue are commercially sensitive and unnecessary for accurate forecasts.
- Public Safety Risks: Cutting power to data centers — even with notice — could jeopardize critical infrastructure security and sensitive data.
- Administrative Burdens: Walt Baum of Powering Texans noted that the bill would heavily regulate agreements between private generators and businesses, even if the net power draw remains unchanged.
What’s at Stake for Texas?
Amid the ongoing Texas energy surge, Senator King maintains that his bill isn’t meant to hinder growth but to manage it wisely.
“This surge in load is certainly a strain on the ERCOT grid, but it’s also a tremendous opportunity for the state of Texas,” King said. “If we handle it properly—without creating reliability issues or pricing burdens for everyday Texans—it can be a win-win.”
Despite that optimism, business groups like the Data Center Coalition are urging lawmakers to revise the bill. While they support reforming ERCOT to meet growing energy demands, they emphasize the importance of a balanced, collaborative approach that preserves innovation and operational stability.
Looking Ahead: Will Senate Bill 6 Keep the Lights On?
Amid the ongoing Texas energy surge and growing climate unpredictability, the state’s power grid faces mounting pressure. Senate Bill 6 aims to ensure Texas isn’t blindsided again by soaring demand or extreme weather. Still, whether the bill achieves the right balance between energy reliability and economic growth remains to be seen as lawmakers debate its final form.
For now, the spotlight is on the Texas House, where the outcome will shape the future of the grid—and the state’s rapidly expanding industrial economy.