Public Comment re: Microgrids Distributed Energy Resources

“CRE is a permissionless approach to growth that could streamline the rapid construction of new data centers without impacting the cost or quality of electric utility service for Texans.

The State Affairs Committee was tasked with examining these issues. The March 2026 charge with respect to data centers was, in part, to “[r]eview the existing regulatory framework governing data center development and recommend proposals to streamline regulations while enabling communities to plan and manage growth responsibly.”

CRE would streamline regulations while managing growth responsibly—without raising costs or reducing reliability for residential ratepayers in Texas. CRE utilities would generate, transmit, and sell electricity directly to customers under voluntary contracts without interconnecting to the existing grid or seeking permission from regulators. It offers “speed to power” for large, new customers and certainty for existing customers.”

https://www.cato.org/public-comments/public-comment-re-microgrids-distributed-energy-resources