New Texas rule requires crypto miners to register, provide info on energy usage

Texas officials are looking to keep tabs on cryptocurrency mining operations and how much energy they consume.

The Public Utility Commission of Texas (PUCT) has approved a new rule requiring crypto mining facilities in the Electric Reliability Council of Texas (ERCOT) region to register their operations with the commission.

Under the new rule, mining facilities must report information on the facility’s location, ownership and energy demand to the PUCT every year.

This rule was mandated by Texas lawmakers in Senate Bill 1929, which was passed in 2023, and applies to crypto mining facilities that consume 75 megawatts of power or more.

Cryptocurrency mining operations use tremendous amounts of electricity to run and cool their computers–U.S. facilities consume more power than 6 million homes annually. With their rapid growth in Texas, the rule was devised to help the PUCT and ERCOT protect the electrical grid’s reliability.

These mining facilities are “flexible loads,” meaning they can adjust their power usage quickly in response to factors like changes in the wholesale price of 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.”

Existing crypto mining facilities must register with the PUCT by Feb. 1 and renew that registration annually. They must also provide the actual amount of power they consumed in the previous year as well as their anticipated peak load for the next five years.

Companies face a fine of up to $25,000 per violation per day for failing to register.

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