Tell the Public Utility Commission: Make Large Electricity Users Pay Their Fair Share

The Public Utility Commission of Texas (PUCT) has proposed one of the biggest changes to how Texas pays for electric transmission in decades - and it's a step in the right direction.

The PUCT's proposal would modernize how transmission costs are allocated - making it more fair for residential ratepayers. It would also require many new large electricity users to pay demand charges, cover their own interconnection costs and grid upgrades, provide financial security before connecting to the grid, and be served under separate transmission and distribution tariffs. The proposal would also direct utilities to use certain interconnection revenues to reduce costs for other customers.

The Sierra Club Lone Star Chapter supports these reforms because they move Texas toward a fairer system where large electricity users pay more of the costs they create instead of shifting those costs onto households and small businesses.

But the proposal can - and should - go further.

The PUCT is accepting public comments until August 11, 2026. Tell the Commission to put Texas families first - not the biggest electricity users.

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I support the PUCT's proposal to modernize how transmission costs are allocated and to require large electricity users to pay a greater share of the costs they impose on the electric grid.

Specifically, I support:

- Replacing the current 4CP methodology with a 12-month, 30-minute methodology that better reflects year-round use of the transmission system.
- Requiring large electricity users to pay separate demand charges through dedicated transmission and distribution tariffs so they pay the full cost of serving their facilities.
- Requiring large electricity users to pay for their own interconnection costs, necessary grid upgrades, and financial security, while ensuring that unreimbursed financial assurances and interconnection fees are used to lower electric bills for Texans rather than increase utility revenues.

I also urge the Commission to strengthen the proposal by:

- Lowering the threshold for these requirements from 75 MW to 25 MW so more large electricity users pay their fair share.
- Considering a transmission cost allocation that includes both peak demand and total energy use to better protect residential customers.
- Developing additional mechanisms to reduce residential electric bills, including requiring large electricity users to contribute to programs that improve home energy efficiency and expand access to local solar and battery storage.

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