High Level

ERCOT’s streamlined “connect‑and‑manage” (C&M) model gained national visibility this week, as stakeholders debated its suitability as an interconnection reform tool. While its deliverability-risk framework accelerates projects, industry voices warn it may be unstable in more regulated markets. The conversation underscores the sector’s push to balance queue efficiency with bankability.

Full View

ERCOT’s C&M Approach Under the Microscope
Utility Dive, June 18, 2025

  • What happened: Utility Dive published a detailed analysis of ERCOT’s connect-and-manage (C&M) interconnection model, drawing increased attention from developers and regulators nationwide.
  • Who did it: The article drew on commentary from former ERCOT market monitor Beth Garza, Duke University’s Tyler Norris, and industry leaders like EDP Renewables’ David Mindham.
  • Why they did it: Stakeholders are seeking faster interconnection timelines amid growing load from AI data centers and electrification, and ERCOT’s low-barrier entry model presents a compelling case study.
  • Stakeholder views: Garza described ERCOT’s philosophy as a “leap of faith,” while Norris noted its integration with proactive planning. Mindham warned that the model is “unfinanceable or only at higher interest rates” for developers without certainty around curtailment.
  • What happens next: Other regions such as SPP are exploring modified approaches that combine the speed of C&M with financial predictability, using mechanisms like GRID Contribution fees and consolidated planning processes.
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What’s the So What?

Innovative interconnection reform to reduce queue wait times is a good thing. ERCOT’s C&M model shows that substantial acceleration is possible when regulatory barriers to entry are lowered. However, the model’s reliance on curtailment tolerance and market self-correction makes it difficult to adopt in regions with integrated utilities or conservative planning standards. For most ISOs and RTOs, unmodified replication would likely create financing hurdles that drive developers out of the market.

Still, the model has value as a provocation. It suggests that regulatory frameworks can be streamlined without abandoning oversight if risk is shifted transparently and predictably. If hybrid models combining deliverability safeguards and procedural speed take hold, interconnection reform could unlock gigawatts of latent clean energy while maintaining investor confidence.

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