FERC Rejects Tri-State Large Load Tariff Over Retail Jurisdiction

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The Federal Energy Regulatory Commission (FERC) has rejected a large load tariff proposed by Tri-State Generation and Transmission Association, ruling that it intruded on retail rate regulation, which is under state--not federal--jurisdiction.

Tri-State, a wholesale cooperative serving 40 utilities across Colorado, Nebraska, New Mexico, and Wyoming, proposed a High Impact Load (HIL) tariff to manage the risks of large electricity loads, including potential transmission and generation costs. The cooperative cited growing interest in data center development in the Mountain West, with requests ranging from 45 MW to 650 MW per load.

FERC stated that Tri-State's proposal exceeded its authority because it would regulate retail electricity terms, unlike Tri-State's existing demand response program, which only sets technical requirements for incentive eligibility. The commission's decision, a 3-0 vote, dismissed Tri-State's claims that the HIL program should fall under FERC jurisdiction.

The Data Center Coalition opposed the tariff, arguing that the proposal fell outside FERC's authority and that inconsistent utility-by-utility large load tariffs were hindering development.

The ruling comes as FERC considers a U.S. Department of Energy (DOE) request to develop rules for interconnecting large loads--including data centers--to the transmission system. FERC is accepting comments on the DOE's proposed notice until November 14, with reply comments due November 28 and a final rule expected by April 30, 2026.

Experts say the decision signals that while FERC is unlikely to intervene in matters exclusively under state jurisdiction, it may assert a larger role regarding transmission interconnections. The agency also provided guidance to Tri-State for potential resubmission, including demonstrating that proposed security deposits adequately mitigate large-load risks.

Source: utilitydive.com