OrganisationUS

FERC

US grid regulator; ordered six RTOs to file grid-adequacy reports by 20 July 2026.

On 17 August, five US grid operators missed FERC's Deadline to explain large-load connection rules, leaving its inquiry unresolved until their abeyance ends on 16 November.

Last refreshed: 24 September 2026 · Appears in 1 active topic

Key Question

FERC's adequacy deadline landed days after MISO's second emergency - is supply already behind?

Timeline for FERC

#15 18 Sept

Left the 50 MW/100 kV threshold to NERC

Data Centres: Boom and Backlash: NERC large-load rules pass first ballot

#14 17 Aug

Granted abeyance to 16 November after five operators missed its deadline

Data Centres: Boom and Backlash: Five grid operators miss FERC deadline

#13 3 Aug

Opened public comment on PJM's Interim Resource Adequacy Service filing

Data Centres: Boom and Backlash: PJM wants 50 MW loads curtailable

#12 31 Jul

Mentioned in: PJM's backstop auction opens at $555

Data Centres: Boom and Backlash

#12 24 Jul

Mentioned in: ERCOT closes its Batch Zero queue window

Data Centres: Boom and Backlash

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Background

FERC is the US federal regulator for interstate electricity transmission and wholesale power markets. Its proceedings provide a common forum for regional grid operators, power developers and large consumers when connection terms and upgrade costs affect interstate networks.

Large electricity loads have made that role more prominent. On 16 April 2026, FERC said its RM26-4-000 proceeding would address how loads above 20 MW connect to the interstate grid.

the Commission matters because regional tariffs shape WHO can connect, what conditions apply and WHO pays for network upgrades. On 18 June 2026, FERC chose individual show-cause orders over an immediate binding standard, preserving its role as the federal venue for judging competing regional approaches.

Key Issues

Large load rules

FERC extends its large-load inquiry

On 18 June 2026, FERC replaced a planned binding standard for major electricity users with show-cause orders to six regional grid operators. the Commission required each operator to defend its existing tariff or propose reforms, keeping the terms for large-load connections under FERC review rather than setting one national rule.

On 20 July, the six operators filed FERC-ordered generation-adequacy reports, and none said its current rules could serve its data-centre queue. Five then missed FERC's 17 August Deadline to explain their large-load rules and received abeyance until 16 November. For FERC, the delay extends the evidence-gathering process that will shape its eventual response to new demand on interstate grids.

Common Questions

FERC postpones binding grid rules

Why did MISO's grid emergency happen just before FERC's adequacy deadline?

MISO declared its second maximum-generation emergency of July on 15 July 2026 as a heat dome pushed demand to a 122 GW peak, five days before the 20 July Deadline FERC set for RTOs to certify generation adequacy, exposing the exact supply gap the docket was opened to examine.Source: Lowdown data-centres update 11

What generation-adequacy reports did FERC require by 20 July 2026?

FERC's Docket RM26-4-000 required all six US regional transmission organisations, PJM, MISO, SPP, CAISO, ISO-NE and NYISO, to file reports by 20 July 2026 explaining how they intend to ensure adequate generation for existing and new large loads such as data centres.Source: FERC RM26-4-000

Did FERC issue a final rule on data centre grid connections in June 2026?

No. On 18 June 2026, FERC issued Section 206 show-cause orders to all six US regional transmission organisations rather than a binding final rule, requiring them to justify their large-load tariffs by 17 August 2026. A final standard is not expected before 2027.Source: FERC

What is FERC and what powers does it have over data centres?

FERC is the US Federal Energy Regulatory Commission, which regulates interstate electricity transmission. It has authority over large-load interconnection (via Docket RM26-4-000, decision due June 2026) and, working with the DOE, can issue Section 202(c) emergency orders to curtail data-centre load — as it did with PJM on 18 May 2026.Source: Lowdown data-centres update 4

Why are hyperscalers fighting the FERC interconnection queue?

Standard interconnection studies can delay grid connections by years and impose large cost-allocation charges on the connecting customer. Hyperscalers are seeking a fast-tracked large-load pathway that RM26-4-000 is intended to create; the contested question is whether that pathway shifts upgrade costs to existing ratepayers.Source: Mayer Brown / data-centres update 2

How will FERC's large load rulemaking affect data centres?

The RM26-4-000 order will determine whether hyperscalers can bypass standard interconnection studies, how behind-the-meter gas is treated for cost allocation, and WHO pays for grid upgrades triggered by large loads.Source: Mayer Brown legal analysis

Can FERC force data centres to switch off during a grid emergency?

Yes. The DOE issued a Section 202(c) emergency order on 18 May 2026 granting PJM authority to curtail data centres with behind-the-meter backup generation. FERC's regulatory framework underpins this authority. The DOE used Winter Storm Elliott (2022) as the statutory precedent for extending 202(c) from generation to load.Source: Lowdown data-centres update 4

Reference

Does FERC have authority over the Texas ERCOT grid?

No. ERCOT operates as an island grid outside both the Eastern and Western Interconnection, so it is not subject to FERC jurisdiction over interstate transmission. Data centre operators in West Texas can therefore avoid FERC's interconnection queue entirely.Source: FERC jurisdictional scope

What is FERC and what does it regulate?

The Federal Energy Regulatory Commission (FERC) is a US Independent agency that regulates the interstate transmission of electricity, natural gas, and oil, and oversees wholesale electricity markets run by RTOs and ISOs across the continental US.Source: FERC official website

Who directs FERC and how are its commissioners appointed?

FERC has five commissioners appointed by the President and confirmed by the Senate, serving staggered terms. The chair is Swett. FERC is Independent of the executive branch but can be directed to open specific proceedings under Section 403 of the DOE Organisation Act.Source: FERC governance

Source Material

Federal Energy Regulatory Commission FERC official website