Batch Zero Gets the Green Light! PUCT Moves ERCOT Toward Pragmatic Load Validation

Research evidence excerpt

Batch Zero Gets the Green Light! PUCT Moves ERCOT Toward Pragmatic Load Validation

Equity Research

Flash Comment — June 18, 2026

Utilities and Power

Batch Zero Gets the Green Light! PUCT Moves

ERCOT Toward Pragmatic Load Validation

Approval in-line; constructive for increasing certainty

around ERCOT LL growth

Our Call Shahriar (Shar) Pourreza, CFA

Batch Zero is constructive for our thesis that TX is moving toward a pragmatic LL Equity Analyst | Wells Fargo Securities, LLC

Shahriar.Pourreza@wellsfargo.com | 212-214-5422

resolution with increasing certainty for ERCOT wires. We see direct readthrough for SRE/

Constantine LednevOncor, CNP and AEP, w/ upside still tied to validated load, not raw queue size.

Equity Analyst | Wells Fargo Securities, LLC

Constantine.Lednev@wellsfargo.com | 212-214-5438

Initial Thoughts Alexander Calvert

Associate Equity Analyst | Wells Fargo Securities, LLC

PUCT approval did not surprise us, but it matters because the process is now moving Alexander.J.Calvert@wellsfargo.com | 212-214-5434

from debate to execution. The Commission approved the Batch Zero framework, Whitney Mutalemwa

clarified key implementation items, and tied the 2026 load forecast update to Batch Associate Equity Analyst | Wells Fargo Securities, LLC

Zero baseload output. That is the right direction, with less reliance on raw Request for Whitney.Mutalemwa@wellsfargo.com | 212-214-6428

Information (RFI) submissions and more focus on load that can clear maturity, financial Anders Myhre

and system-readiness screens. Associate Equity Analyst | Wells Fargo Securities, LLC

Anders.S.Myhre@wellsfargo.com | 212-214-6409

Andrew KadavyThis is constructive for our view that TX regulators are looking for a practical answer,

not a hard stop on data-center growth.