All told, the organization that operates the state’s primary power grid proposes spending $485.9 million for 2026 and $585.0 million for 2027.
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ERCOT has proposed multi-million-dollar budget increases for 2026 and 2027. However, because of greater statewide electricity use, it simultaneously has proposed decreasing the energy-based fee is uses to fund its operations.
All told, the organization that operates the state’s primary power grid proposes spending $485.9 million in 2026 and $585 million in 2027, according to documents it filed with the Public Utility Commission on Aug. 28. By contrast, ERCOT’s approved budgets for 2024 and 2025 were for $405.7 million and $414.3 million, respectively.
ERCOT proposes a System Administration Fee rate of 61 cents per megawatt hour for 2026-2027. This is a decrease from the current rate of 63 cents per MWh.
Approximately 90 percent of ERCOT’s operations are funded through the System Administration Fee, which is paid by ERCOT market participants serving load, such as municipal utilities, electric cooperatives, and retail electric providers. Every two years the PUC authorizes the SAF rate. Because ERCOT is not technically a state agency, its funding does not come from the state budget. A typical residential consumer will pay less than $1 per month toward this fee.
The PUC is expected to vote on the proposed budget in October or November.