Abbott Signs SB 6, and That is Good News For Texans

Concerns that the Texas power grid, managed by the Electric Reliability Council of Texas (ERCOT), could soon begin to groan under the weight of surging demand, led the Texas Legislature to pass Senate Bill 6 (SB 6) in the 2025 session. Signed into law by Governor Greg Abbott on Saturday, this bill is an aggressive attempt to shore up reliability on the Texas grid while making large-load customers bear a fair share of the cost.

Texas has always prided itself on doing things big, including maintaining its status as a national energy powerhouse. From leading the shale oil and gas boom, to supporting state-of-the-art ports moving the lion’s share of U.S. crude and LNG exports, to leading the nation in both wind and solar generating capacity, Texas has fueled America’s growth while taking a different path than other large population states like California, New York, and Florida.

SB 6 is a legislative balancing act designed to ensure Texas continues to play a leading national role in hosting the nation’s rapidly expanding AI industry and its associated datacenters while simultaneously achieving a higher level of grid reliability and energy security. Authored by Senator Charles Schwertner and championed by Lt. Governor Dan Patrick, SB 6 targets one of the elephants in the room: massive electricity consumers, defined as those with loads of 75 megawatts or more.