ERCOT Load Zones and Weather Zones
Key Takeaway
ERCOT's four load zones (Houston, North, South, West) for market pricing and eight weather zones for load forecasting — how each works and how location affects electricity costs.
Quick Answer
ERCOT has four load zones for market pricing (Houston, North, South, West) and eight weather zones for load forecasting. Load zone prices are load-weighted averages of resource node prices within each geographic area.
Load Zones
| Zone | Key Characteristics |
|---|---|
| Houston (LZ_HOUSTON) | Refining/petrochem, frequent congestion premium |
| North (LZ_NORTH) | DFW metroplex, largest zone, most traded |
| South (LZ_SOUTH) | San Antonio/Austin, South Texas congestion |
| West (LZ_WEST) | Permian Basin, high wind, lowest prices |
Weather Zones
Eight weather zones (Coast, East, Far West, North, North Central, South, South Central, West) used for load forecasting. Weather zone boundaries differ from load zone boundaries.
Why Location Matters
A facility in Houston pays more than one in West Texas due to congestion. Understanding your load zone and its price patterns is essential for contract negotiations and demand response decisions.
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Frequently Asked Questions
Houston, North, South, and West — each with a load-weighted average settlement point price (LZ_HOUSTON, LZ_NORTH, LZ_SOUTH, LZ_WEST).
High wind generation exceeds local load and transmission export capacity, depressing prices.
Load zones (4) are market pricing areas. Weather zones (8) are for load forecasting. Different boundaries.
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