About 44 GW of large load projects slated for Oncor's service territory qualified for ERCOT's new “Batch Zero” interconnection process for large loads, company executives told analysts during a Thursday earnings call. But the timeline for that process is uncertain following an order by Texas Gov. Greg Abbott that paused new data center interconnection approvals pending a state-wide audit.
ERCOT's criteria for Batch Zero, which include new financial and technical requirements for loads with a peak demand of 75 MW or greater, narrowed immediate load growth projects for Oncor, a subsidiary of Sempra.
The batch approach, Sempra Chairman and CEO Jeff Martin said, was intended to align the interconnection of large loads with the construction of new generation. The criteria for acceptance into the first Batch Zero was finalized in June.
“Think about a situation where you've got close to 500 GW of generation on the sideline waiting to come on the system and, similarly, over 400 GW of large load customers,” Martin said. “That batch process is intended to sequence generation with large loads. Over time, it will be a sequencing effect that's intended to balance what we think is going to be remarkable load growth.”
The utility had submitted a qualifying load forecast of about 127 GW to ERCOT earlier this year, before the Batch Zero eligibility criteria were released.
On Thursday, executives expressed confidence in the durability of the pipeline, despite uncertainty. Oncor CEO Allen Nye said service requests at that company had increased from 289 GW at the end of the first quarter, to 298 GW this past quarter.
“We continue to have really strong growth, really strong interest. And yes, there is more out there,” Nye told analysts on Thursday.
It is not yet clear how the governor's order, issued on Monday, will affect the new ERCOT review process. ERCOT spokespeople told local media on Monday that they had put the Batch Zero review on hold pending clarification from the governor.
Oncor's current $47.5 billion capital plan does not include any spending tied to the Batch Zero load, Martin said. The utility plans to update its capital plan in the fourth quarter of this year, he said, but any capital needs associated with the batch study will not make their way into the company's capital plan until at least 2027.
But the current plan does include about $5 billion tied to high-voltage transmission projects Oncor has underway in Texas' Permian Basin, which Nye noted were the subject of a 15-hour public hearing in July. Lt. Gov. Dan Patrick and several state senators called on the Public Utility Commission of Texas to deny the transmission lines' applications following the hearing, in which speakers decried the projects' potential impacts on private landowners.
Martin and Nye said they understood the Texas lawmakers' position and expressed support for their efforts, despite the potential for delays at Oncor.
“Like all across this country, there's a variety of elections taking place in November,” Martin said. “There's a big focus on affordability. It doesn't matter whether you're a Republican or a Democrat or an independent, we're looking for ways to release pressure on American families, and I think Texas is not immune to that.
“There's a process going forward where we're doing things at a scale...that have never been done before,” Martin continued. “What we want to do is make sure that we're supportive of the process. We're there to make sure that we can address some of the needs of stakeholders. If the outcome is it takes a little bit longer to make the process better for everybody, and we end up with a durable framework, I think it's great for the state of Texas.”
Leaders at Sempra also expressed support for legislative processes in California, where lawmakers are still mulling wildfire liability reforms. SoCalGas, a Sempra-owned utility, was named in January in a lawsuit filed by Edison International alleging actions by the gas utility worsened the 2025 Eaton Fire, for which Edison International has been sued. SoCalGas filed a cross-complaint against Edison seeking compensation for damages to SoCalGas' infrastructure in April. A trial has been scheduled for January 2027. SoCalGas has also been named in suits related to the 2025 Palisades Fire. Sempra-owned San Diego Gas & Electric is not currently the subject of any wildfire-related litigation.
Sempra continues to pursue the sale of its interests in SI Partners, which owns LNG and natural gas infrastructure in the U.S. and Mexico, to KKR Partners for $10 billion, and of Mexican natural gas utility Ecogas. Mexican regulators recently approved the Ecogas sale, which Martin said puts the transaction on track to close later this month.
The sales will allow Sempra to remove more than $9 billion in debt from its balance sheet and should improve the company's prospects with ratings agencies, according to Karen Sedgwick, executive vice president and chief financial officer at Sempra. Moody's issued a negative outlook for the parent company in January on account of its debts and funding capacity, Sedgwick said.
Texas regulators in April approved a $560 million base rate increase at Oncor that took effect on June 1, and SDG&E filed an initial 2028 GRC application with the California PUC in June.
