FERC Pushes U.S. Grid Reform for Large-load Connections
The Federal Energy Regulatory Commission (FERC) has issued a major directive requiring six U.S. regional grid operators to review or reform their tariffs governing the connection of large electricity users, including data centers and industrial facilities.
The order applies to PJM Interconnection, Midcontinent Independent System Operator (MISO), Southwest Power Pool (SPP), California ISO (CAISO), ISO New England (ISO-NE), and New York ISO (NYISO).
Each operator has 60 days to either demonstrate that existing interconnection and tariff rules remain just and reasonable, or submit revised filings addressing how large-load customers connect to the transmission system. A separate 30-day requirement mandates detailed reports on how each operator will ensure sufficient generation capacity is available for both existing and new large loads.
The Commission said the action is intended to modernize grid access frameworks as electricity demand rises sharply, particularly from data centers, advanced manufacturing, and electrification-driven load growth.
FERC outlined five key reform areas for consideration, including streamlined transmission study processes, transparency in cost allocation, rules for co-located generation and behind-the-meter resources, new flexible transmission service options for large loads, and improved planning for generation serving electrically proximate demand.
Announcing the order, FERC Chairman Laura V. Swett said:
“We are setting the stage for a resilient, reliable, and forward-thinking grid that empowers communities and safeguards consumers by transforming the way large energy users access the grid. It also is critical that FERC provide certainty for investors by directing the markets to protect existing deals and unlock opportunities for technological advancement and economic expansion. We can facilitate both, which is exactly what we did today.”
The move marks one of the most significant recent federal actions aimed at accelerating large-load interconnection while maintaining system reliability and limiting cost impacts on existing customers.
Source: ferc.gov
