FERC orders six regional grid operators to justify or revise rules for connecting large power users such as data centers

Thursday, June 18, 2026Technology & SocietyWell-covered3 frames

FERC issued show-cause orders to six regional grid operators under its jurisdiction, requiring them to justify their current rules for connecting large electricity users or propose changes.
The action is aimed at very large power users such as AI data centers, as well as other large loads including manufacturing facilities.
The six grid operators covered are PJM, MISO, Southwest Power Pool, CAISO, ISO New England, and NYISO.
Texas is not covered by these orders because its grid is outside FERC's jurisdiction.
FERC said the goal is to speed connections for large new loads while limiting reliability risks and preventing costs from being shifted to existing consumers.
The orders come as data-center demand is increasing electricity use and exposing limits in parts of the grid, prompting regulators to revisit how large new loads are added.
FERC chose a regional, case-by-case approach instead of adopting a single nationwide framework for data-center grid connections.
What happens next is that the grid operators must respond within the deadlines set by FERC by defending their tariffs or filing revisions, so the details of any new connection rules are not yet final.

How left and right are reading this

Both agree: Large new power users need a faster path onto the grid, but not if reliability suffers or existing customers end up subsidizing the buildout — the premise underlying both the public-interest guardrails and the case-by-case review.
They split on: Less a disagreement than a question of emphasis: forcing regional operators to prove they are protecting the public from reliability and cost harms, versus valuing FERC’s restraint in leaving region-specific rules to be worked out operator by operator.

FERC issued show-cause orders to six regional grid operators under its jurisdiction, requiring them to justify their current rules for connecting large electricity users or propose changes.
The action is aimed at very large power users such as AI data centers, as well as other large loads including manufacturing facilities.
The six grid operators covered are PJM, MISO, Southwest Power Pool, CAISO, ISO New England, and NYISO.
Texas is not covered by these orders because its grid is outside FERC's jurisdiction.
FERC said the goal is to speed connections for large new loads while limiting reliability risks and preventing costs from being shifted to existing consumers.
The orders come as data-center demand is increasing electricity use and exposing limits in parts of the grid, prompting regulators to revisit how large new loads are added.
FERC chose a regional, case-by-case approach instead of adopting a single nationwide framework for data-center grid connections.
What happens next is that the grid operators must respond within the deadlines set by FERC by defending their tariffs or filing revisions, so the details of any new connection rules are not yet final.

Facts first. Then every angle.