Understanding FERC’s Large Load Orders

This executive summary by RMI describes orders issued by the Federal Energy Regulatory Commission (FERC) in June 2026 directing six regional grid operators to reform their tariffs and processes for interconnecting large loads, such as data centers, to the transmission system.

• In June 2026, FERC issued show cause proceedings to six regional grid operators—PJM, MISO, SPP, CAISO, ISO-NE, and NYISO—finding that existing rates and tariffs regarding large load interconnection are "unjust and unreasonable". These operators must either update their tariffs based on FERC's suggestions or provide alternative proposals.
• FERC has identified five primary categories for reform: standardizing transmission service applications and study processes for large loads; preventing cost shifting and increasing transparency of transmission costs; establishing rules for co-location and behind-the-meter generation; providing new transmission services for flexible loads and co-location; and creating processes to study generating facilities that are electrically proximate to large loads.
• To standardize interconnection, FERC suggested defining a "large load" as a new facility exceeding 50 MW that seeks transmission service above 69 kV and is not part of a co-located arrangement. Proposed efficiency measures include a 60–90 day study timeline, financial deposits or milestone requirements to prevent duplicative requests, and the inclusion of alternative transmission technologies in planning studies.
• FERC is requiring increased transparency and financial protections to prevent cost shifting. This includes the creation of a searchable platform to track network upgrade projects and costs for large loads, as well as standardized cost recovery agreements where a load-serving entity (LSE) provides financial security to cover transmission owner revenue requirements if a large load fails to materialize.
• FERC ordered the development of three new transmission service types to accommodate flexible and co-located loads: Interim network integration transmission service (NITS) for temporary non-firm service during upgrades; Non-firm contract demand service for loads that can be curtailed; and Firm contract demand service for a prioritized portion of a facility's load.

APA

RMI (2026). Understanding FERC’s Large Load Orders. https://rmi.org/resources/understanding-fercs-large-load-orders/

Chicago

RMI. Understanding FERC’s Large Load Orders. 2026. https://rmi.org/resources/understanding-fercs-large-load-orders/.

Wikipedia

{{cite report |author=RMI |title=Understanding FERC’s Large Load Orders |date=6 July 2026 |url=https://rmi.org/resources/understanding-fercs-large-load-orders/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2026understanding, author = {{RMI}}, title = {{Understanding FERC’s Large Load Orders}}, institution = {RMI}, year = {2026}, month = jul, url = {https://rmi.org/resources/understanding-fercs-large-load-orders/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }