The Texas Public Utility Commission introduces stringent regulations to control the impact of mining activities on the state’s power grid.
On November 21, the Texas Public Utility Commission (PUCT) approved new regulations requiring all Bitcoin miners operating on the ERCOT (Energy Reliability Council of Texas) grid to register and provide detailed information about their activities.
The new rules mandate that mining facilities must report essential data to state authorities, such as the location of their operations, ownership details, and energy requirements. Operators will have only one business day from the time of connection to the ERCOT grid to complete their registration, which must be renewed annually by March 1.
In addition to registration, miners will be required to submit regular reports on their operations. These reports must include data on the volume of bitcoins mined, energy consumption, and other operational details.
According to PUCT Chairman Thomas Gleeson, the new rule was designed to help manage the power grid as more mining facilities come online. Gleeson stated:
“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.”
Miners who fail to register under the new regulations will face violations that could result in fines of up to $25,000 per day.
This move represents a shift for the mining industry in Texas, a state previously known for its favorable environment for the sector and its abundant energy resources. However, the rapid growth of the industry has raised concerns about its impact on the state’s power grid, prompting authorities to introduce stricter controls.
For miners, compliance with the new regulations will mean additional administrative responsibilities. They will need to allocate resources to collect data and ensure timely submission of the required documentation.
The new rules aim to prevent potential overloads on the power grid and minimize environmental impact.
