en.Wedoany.com Reported - Oncor, the utility subsidiary of U.S.-based Sempra, disclosed on its earnings call Thursday that approximately 44 gigawatts of large load projects are planned for its service territory, meeting the conditions of the new "Batch Zero" large load interconnection process introduced by the Electric Reliability Council of Texas (ERCOT). The timeline for this process remains uncertain, as Texas Governor Greg Abbott has ordered a pause on new data center interconnection approvals pending a statewide audit.
ERCOT's criteria for Batch Zero require that load additions with a peak demand of 75 megawatts or more meet corresponding financial and technical requirements, which has narrowed the scope of large load projects Oncor can bring into its pipeline in the near term. Jeff Martin, Sempra's chairman and CEO, said the batch approach is designed to align large load interconnections with new generation buildout, and the initial acceptance criteria for Batch Zero were finalized in June.
Martin noted that nearly 500 gigawatts of generation capacity are currently waiting to connect to the grid, alongside more than 400 gigawatts of large load customers. This batching process sequences generation and large loads in an orderly manner, and over time, the sequencing effect will balance what he believes is significant load growth.
Prior to the release of the eligibility criteria, Oncor had submitted approximately 127 gigawatts of qualifying load forecasts to ERCOT earlier this year. On Thursday, Oncor executives expressed confidence in the durability of the load pipeline despite the uncertainty. Allen Nye, Oncor's CEO, said service requests the company has received increased from 289 gigawatts at the end of the first quarter to 298 gigawatts this quarter. Nye told analysts Thursday that the company continues to see very strong growth and very strong interest, and indeed there is more.
It remains unclear how the governor's Monday order will affect ERCOT's new review process. An ERCOT spokesperson told local media Monday that the agency has paused Batch Zero reviews pending clarification from the governor. Martin said Oncor's existing $47.5 billion capital plan does not include any expenditures related to Batch Zero loads; the company plans to update its capital plan in the fourth quarter of this year, and capital needs related to batch studies will not be incorporated until at least 2027.
The existing capital plan includes approximately $5 billion for Oncor's high-voltage transmission projects in the Permian Basin of Texas. Nye noted these projects were the subject of a 15-hour public hearing in July. Lieutenant Governor Dan Patrick and several state senators called on the Public Utility Commission of Texas to reject the transmission line applications after the hearing, during which speakers condemned the projects' potential impact on private landowners. Martin and Nye said they understand the position of Texas lawmakers and expressed support for their efforts, even though Oncor may face delays as a result.
Martin said there are various elections in November, and people are very focused on affordability—whether Republican, Democrat, or independent, everyone is looking for ways to ease pressure on American households, and Texas is no exception. He also noted that the company is advancing its work at an unprecedented scale, wants to ensure the process gains support, and is willing to accommodate some of the stakeholders' needs; if the outcome is that it takes longer to make the entire process better for everyone and ultimately results in a durable framework, that would be very good for Texas.
Sempra executives also expressed support for the legislative process in California, where lawmakers are still deliberating wildfire liability reform. Sempra's Southern California Gas Company (SoCalGas) was named in a lawsuit filed by Edison International in January, which alleges the gas utility's actions contributed to the 2025 Eaton Fire; Edison International has also been sued in connection with the fire. SoCalGas filed a countersuit against Edison International in April seeking damages for its infrastructure, with trial set for January 2027. The company has also been named in litigation related to the 2025 Palisades Fire. Sempra's San Diego Gas & Electric (SDG&E) is currently not involved in any wildfire-related litigation.
Sempra continues to advance the sale of its interest in SI Partners (which holds LNG and natural gas infrastructure in the U.S. and Mexico) to KKR Partners for $10 billion, alongside the sale of Mexican natural gas utility Ecogas. Mexican regulators recently approved the Ecogas sale, and Martin expects the transaction to close by the end of this month. Karen Sedgwick, Sempra's executive vice president and CFO, said these divestitures will remove more than $9 billion in debt from Sempra's balance sheet and are expected to improve the company's outlook with rating agencies. Moody's placed a negative outlook on the company in January due to parent company debt and financing capacity.
Texas regulators approved Oncor's $560 million base rate increase in April, which took effect June 1; SDG&E submitted its initial application for the 2028 General Rate Case (GRC) to the California Public Utilities Commission in June.
