DOE Proposes Broad Principles for Large Load Interconnections Across US

Strategic Insights -

The US Department of Energy ("DOE") has sent a letter to the Federal Energy Regulatory Commission ("FERC") containing an Advance Notice of Proposed Rulemaking ("ANOPR") with principles for all large load interconnections across the US, including those co-located with generating facilities. This move weighs in on a dispute that has been pending before FERC for over a year, and appears to be a reaction to the continued pendency before FERC of the colocation dockets. The proposed rule is national, applying to all transmission-level interconnections in all FERC-jurisdictional regions, and FERC must act by April 30, 2026.

Key Takeaways:

  • The proposed rule would apply to all large load interconnections over 20 MW, including most data center projects nationally.
  • The principles outlined in the ANOPR include creating a standardized interconnection policy similar to that for generators, studying load and hybrid facilities together with co-located or nearby generation, and expediting curtailable load interconnections.
  • The loads would be 100% responsible for network upgrades, and utilities serving loads and hybrid facilities would be responsible for transmission service based on their withdrawal rights.
  • The DOE direcrics FERC to act on this matter prior to April 30, 2026, and FERC will presumably open a notice and comment period to allow interested parties to weigh in on this far broader exercise of jurisdiction.
  • The proposed rule would not impinge on states' rights, as it does not impact anything traditionally reserved to the states, and any contrary view would conflict with the FPA's core purpose.

Statistics:

  • The proposed rule would apply to all transmission-level interconnections in all FERC-jurisdictional regions, except in Texas.
  • The interconnection of large loads to the transmission system would require minimum terms and conditions to ensure non-discriminatory treatment.
  • 100% of load interconnections over 20 MW would be subject to this new process, excluding those in Texas.

Sources:

  • Secretary of Energy s Direction that the Federal Energy Regulatory Commission Initiate Rulemaking Procedures and Proposal Regarding the Interconnection of Large Loads Pursuant to the Secretary s Authority Under Section 403 of the Department of Energy Organization Act (Oct. 23, 2025), available at https://www.energy.gov/sites/default/files/2025-10/403%20Large%20Loads%20Letter.pdf
  • PJM Interconnection, L.L.C., 190 FERC 61,115 (2025) (show cause order issued against PJM in February 2025)
  • Large Loads Co-Located at Generating Facilities, Docket No. AD24-11-000
  • 42 U.S.C. § 7173(b)