Understanding FERC’s Large Load Orders

FERC has ordered six regional grid operators (PJM, MISO, SPP, CAISO, ISO-NE, and NYISO) to update their tariffs to address challenges posed by rising load growth from large energy users, such as data centers. The orders focus on five reform categories: standardizing interconnection applications and study processes, preventing cost shifting through increased transparency and cost recovery agreements, establishing rules for co-location and behind-the-meter generation, creating new transmission service types for flexible loads, and developing study processes for electrically proximate generation. The document outlines a strict timeline for RTO/ISO responses and filings, starting in July 2026.

• FERC has identified five primary categories for reform to address large load interconnection: standardizing application and study processes, preventing cost shifting and increasing transparency, establishing rules for co-location and behind-the-meter generation, providing new transmission services for flexible loads, and studying generating facilities that are electrically proximate to large loads.
• To improve efficiency and reliability, 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 reforms include a 60–90 day study timeline, the use of financial deposits to reduce duplicative requests, and the inclusion of alternative transmission technologies in planning studies.
• To prevent cost shifting and ensure transparency, FERC requires RTOs to use a searchable platform to track network upgrade projects and costs for large loads, and to report aggregated large load requests by transmission zone. Additionally, standardized cost recovery agreements involving the load-serving entity (LSE), transmission owner, and RTO are required to mitigate risks from stranded assets 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 prioritized load portions.
• The show cause orders specifically target six regional grid operators: PJM, MISO, SPP, CAISO, ISO-NE, and NYISO. Some operators are exempt from specific reforms because they have already addressed them; for example, PJM is exempt from co-location reforms and SPP is exempt from standard service agreements and electrically proximate generation studies.

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} }