On June 18, 2026, the Federal Energy Regulatory Commission (FERC) issued show cause orders to six FERC-jurisdictional regional transmission organizations and system operators (RTOs) to further advance the integration of data centers and other large loads in the interstate electric transmission grid. The orders represent FERC’s first substantive action in response to the October 2025 rulemaking request from the U.S. Department of Energy seeking to expedite the interconnection of data centers to the interstate transmission grid.
Secretary of Energy Directs FERC to Develop Rules for Interconnecting Large Loads
On October 23, 2025, U.S. Energy Secretary Chris Wright issued an advance notice of proposed rulemaking (ANOPR) directing the Federal Energy Regulatory Commission (FERC) to develop rules for interconnecting large electric customers, such as data centers and hybrid facilities (i.e., combining a generator and a large load) that have peak demand of 20 megawatts (MW) or higher. Large load interconnections, especially those involving data centers and their colocation with generating resources, currently are a hot topic in several pending FERC proceedings involving proposals by individual utilities and regional transmission organizations (RTOs), as well as various generic inquiries. Due to their size and rapid growth, these facilities strain the interstate electric grid, resulting in reliability issues and requiring expensive transmission system upgrades. To respond to these challenges, the ANOPR initiates a rulemaking to develop a standardized set of procedures that would be applicable across the board, on a more or less uniform basis, to all “public utilities” and RTOs with FERC open access tariffs.
Read the full Alert on the Duane Morris website