The Federal Energy Regulatory Commission has directed six major grid operators to overhaul how they connect new data centers to the U.S. transmission system, citing inadequate rules for handling the surge of large electricity loads tied to AI growth. In a set of "show cause" orders issued in June, the commission told the California Independent System Operator, ISO New England, the Midcontinent Independent System Operator, the New York Independent System Operator, the PJM Interconnection, and the Southwest Power Pool to address five issues, including cost transparency, prevention of cost shifting onto other ratepayers, and rules for co-located and behind-the-meter generation serving data centers.
FERC Chairman Laura Swett said the action was meant to speed up how quickly large loads can connect to the grid while protecting ratepayers from covering infrastructure built to serve data centers. The commission gave grid operators 60 days to respond, with the option to request a 90-day extension.
The orders followed a directive from the U.S. Department of Energy in October, which asked FERC to establish rules for data center interconnection after two years of unprecedented data center development strained transmission planning in many regions. FERC opted for a regional approach rather than a single national standard, leaving each grid operator to propose rules suited to its own system. The commission also encouraged utilities outside organized markets, including much of the West and Southeast, to put forward their own interconnection proposals for large loads.
Source: Utility Dive - https://www.utilitydive.com/news/ferc-doe-data-center-interconnection/823360/