MINING - Texas imposes new rules on miners: registration and energy monitoring required

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.

https://atlas21.com/texas-imposes-new-rules-on-miners-registration-and-energy-monitoring-required/ 

 75 megawatts and above only! Important to note that this only applies facilities with an electrical load of 75 MW (page 5 of the below linked rule).  Incorrect to say this rule applies “all Bitcoin miners operating on ERCOT”, as stated in the post above, and article. @Federico Rivi please make a correction to not mislead your readers. 

We can have a more informed discussion about the implications of the actual rule when we’re talking about the actual rule, not a gross misunderstanding of it.  On initial reading (note the caveat) this looks to be aimed at grid stability rather than a ploy to vacuum the personal details of home miners, small, medium, and even somewhat large scale miners. 75MW is industrial.  Let’s talk about the merits of that. 

Sources
1. The actual rule from Public Utility Commission of Texas:  
https://interchange.puc.texas.gov/Documents/56962_17_1444154.PDF

2. Press release from Public Utility Commission of Texas:
https://ftp.puc.texas.gov/public/puct-info/agency/resources/pubs/news/2024/PUCT_Approves_Rule_Requiring_Registration_of_Virtual_Currency_Mining_Facilities.pdf

3. More thorough reporting from Utility Dive:
https://www.utilitydive.com/news/texas-requires-bitcoin-miners-to-register-with-electric-grid-operator-ERCOT/733848/ 

 Thank you, we corrected the article on the website. 

 Thank you for the update, very gracious.  

 Regarding “These reports must include data on the volume of bitcoins mined” (paragraph three in the article) can you point me to where you found this requirement? 

After looking at the rule from PUCT (25.114) as well as the Texas statute that prompted the rule (“PUBLIC UTILITY REGULATORY ACT Sec. 39.360.  LARGE FLEXIBLE LOAD REGISTRATION”)  I did not find anything that could be construed as requiring a report on the volume of bitcoins mined, or anything else mined (the rule broadly targets “virtual currency mining”)

Separately, I do think that the statute (and by extension, rule 25.114) is ill-conceived in that it makes a different rule the electrical consumption of a computer based on what software it is running rather than its electrical load profile. 

Thank you for your attention @Federico Rivi 

Sources:
Texas PUBLIC UTILITY REGULATORY ACT Sec. 39.360.  LARGE FLEXIBLE LOAD REGISTRATION
https://statutes.capitol.texas.gov/docs/UT/htm/UT.39.htm