Background
A utility in Texas is evaluating the integration of large hyperscale data center loads at multiple points of interconnection (POIs) within ERCOT. To properly quantify the system impacts, economic exposure, and congestion risks, the utility engaged Electric Power Engineers (EPE) to perform Security Constrained Economic Dispatch (SCED)-based 8760 withdrawal analysis and forward-looking Locational Marginal Price (LMP) economic assessments across multiple study years and scenario sets.
Challenge
Large load withdrawals from clustered POIs in ERCOT can trigger significant transmission congestion, curtailment risks, basis volatility, and economic exposure to negative pricing. The utility needed a defensible, scenariobased assessment that quantifies: (1) the physical feasibility of serving candidate data center loads, and (2) the economic implications under evolving ERCOT build-out timelines (e.g., with/without 765 kV additions).
Solution
EPE developed full SCED-based cases for 2028–2031 and executed 8760 withdrawal limits to rank candidate POIs. Those Phase I outputs seeded Phase II SCED scenarios with modeled data center loads, evaluating LMPs, hub basis, curtailment hours, top binding constraints, and congestion heat maps. EPE is working to supplement the reports with browser-based interactive visualization and mapped SCED results to facilitate executivelevel decision-making.
Result
EPE's Phase 1 engagement was completed in two months. The study delivers quantified withdrawal envelopes, recommended POIs and sizing, hourly price and curtailment forecasts, constraint exposure, and fleet revenue impacts for the utility — giving decision-makers a scenario-driven view of the economic and operational consequences of data center siting. The work enables the utility in Texas to engage future counterparties with defensible analytics and to align infrastructure timing with economic performance.