PUCT approves rule requiring registration of virtual currency mining facilities

Austin– The Public Utility Commission of Texas (PUCT) approved a new rule requiring virtual currency mining facilities located within the Electric Reliability Council of Texas (ERCOT) region to register with the PUCT. The facilities must provide information to the PUCT annually about the facility’s location, ownership, and demand for electricity. 

“To ensure the ERCOT grid is reliable and meets the electricity needs of all Texans, the PUCT and ERCOT need to know the location and power needs of virtual currency miners,” PUCT Chairman Thomas Gleeson said. “This is another example of the PUCT and ERCOT adapting to support a rapidly changing industrial landscape. Most importantly, we will always take the steps necessary to ensure reliable, affordable power for all Texans.” 

The rule implements Public Utility Regulatory Act (PURA) §39.360, enacted by Senate Bill 1929, which was passed by the 88th Texas Legislature and signed into law by Governor Greg Abbott in 2023. 

The rule approved today will give the PUCT and ERCOT better awareness of virtual currency mining operations around the state, which have unique power consumption characteristics. Virtual currency mining facilities are “flexible loads,” meaning they can quickly adjust their power consumption in response to certain factors, like changes in the wholesale price of electricity. 

These characteristics can impact wholesale electricity prices or the frequency of the grid. The information provided in the registration will help ERCOT manage the grid reliably as more virtual currency mining facilities connect to the grid.  

Facilities failing to register under this rule will face a Class A violation which, according to Chapter §25.8 of the PUCT’s rules, could result in up to a $25,000 penalty per violation per day. 

Specific information regarding which types of facilities are required to register and registration deadlines are outlined in the rule.  

Electricity demand associated with virtual currency mining operations has grown rapidly over the last several years, both in the U.S. and in Texas, according to the Energy Information Administration (EIA). 

The EIA estimates that annual electricity use from virtual currency miners could represent up to 2.3 percent of all U.S. electricity consumption, equal to the consumption of more than 6 million homes. 

SOURCE: Public Utility Commission of Texas