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Energy industries

FERC Proposes Groundbreaking Reforms to Electric Interconnection Processes

Strategic Insights

— 2 min read

The US Department of Energy's Secretary has initiated a proposed Advance Notice of Proposed Rulemaking (ANOPR) to enhance the timeliness and processes related to the interconnection of large loads to the transmission system. The proposals aim to standardize the interconnection procedures and agreements for large commercial and industrial loads, including data centers, and consider the increasing quantities of such loads connecting rapidly to the transmission system. This would involve standardizing the interconnection procedures and agreements for these loads, potentially expanding FERC's jurisdiction over electric interconnection processes.

Key Takeaways:

  • The proposed ANOPR aims to standardize interconnection procedures and agreements for large loads, including data centers, which would be a groundbreaking move in the context of FERC's jurisdiction.
  • The proposal posits that FERC has exclusive jurisdiction over the transmission of electric energy in interstate commerce, including the rates, terms, and conditions of transmission service, and all facilities for such transmission or sale of electric energy at wholesale in interstate commerce.
  • The 14 principles to inform FERC's potential rulemaking include limiting FERC's jurisdiction to interconnections directly to transmission facilities, considering alternative thresholds for load and hybrid facilities, and requiring load and hybrid facilities to be responsible for 100% of the network upgrades they are assigned through interconnection studies.
  • The proposed reforms also include measures to expedite interconnection studies for curtailable loads and hybrid facilities, and require utilities serving large loads to meet all applicable reliability standards of the North American Electric Reliability Corporation (NERC).
  • Various initiatives and reforms to address large load interconnections and associated impacts are already pending or expected to be before FERC, including the Southwest Power Pool's "High Impact Large Load" and High Impact Large Load Generation Assessment, a transmission service agreement filed by PECO Energy Company, and anticipated reforms from PJM Interconnection, LLC.

Statistics:

  • The proposed reforms relate to the interconnection of large loads, including data centers, which are anticipated to grow at an extraordinary rate, higher than at any point in the past two decades.
  • The expected growth in large load interconnections is significant, with data centers contributing to the increasing quantities of such loads connecting rapidly to the transmission system.
  • The proposals aim to standardize the interconnection procedures and agreements for large loads, including data centers, which would expand FERC's jurisdiction over electric interconnection processes.

Sources:

  • DOI (Department of Energy Organization Act, Section 403, 42 U.S.C. § 7173 ("Section 403"). Specifically, Section 403 allows the Secretary to propose rules, regulations, and statements of policy of general applicability with respect matters under FERC's jurisdiction.
  • ANOPR (Advance Notice of Proposed Rulemaking)
  • Southwest Power Pool Inc., Submission of Tariff Revisions to Add the High Impact Large Load Processes and High Impact Large Load Generation Assessment, Docket No. ER26-247-000 (Oct. 24, 2025), available at:
  • Filing Letter for Transmission Security Agreement between PECO Energy Company and Amazon Data Services, Inc, Docket No. ER25-3492-000 (Sept. 23, 2025), available at:

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