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FERC
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FERC

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

FERC delayed a binding large-load grid-connection rule to 2027 on 18 June 2026, instead ordering all six US grid operators to file generation-adequacy reports by 20 July; none of the six can say it can serve its data-centre queue under current rules.

Last refreshed: 4 August 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

#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
#12 23 Jul

Six US grid operators file, none say yes

Data Centres: Boom and Backlash
#10 19 Jul

Required six RTOs to file generation-adequacy reports by 20 July

Data Centres: Boom and Backlash: FERC sets a 20 July adequacy deadline
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Background

FERC is the US federal agency regulating interstate electricity transmission and wholesale power markets, founded in 1977 and based in Washington, DC. It has five commissioners, presidentially appointed and Senate confirmed, and its jurisdiction excludes Texas's ERCOT grid, which sits outside the interstate system.

FERC's authority now extends into emergency curtailment: acting under FERC's Section 202(c) framework, the Department of Energy has granted PJM emergency power to curtail behind-the-meter data-centre generators three times in 2026. That expansion sits alongside FERC's slower rulemaking track on large-load interconnection, Docket RM26-4-000, where the commission has repeatedly chosen procedural steps, show-cause orders and adequacy filings, over a binding standard.

How RM26-4-000 ultimately lands, whether it accelerates large-load connections or triggers fresh cost-allocation litigation, will determine whether federal authority over data-centre power keeps expanding or gets checked in the courts.

Key Issues
Large-load rulemaking

FERC delays a binding grid rule

FERC's Docket RM26-4-000, opened under Section 403 direction from Energy Secretary Chris Wright, was meant to produce a binding standard for how large loads connect to the interstate grid. FERC met its end-June Deadline on 18 June not with that rule but with Section 206 show-cause orders to all six regional grid operators, PJM, MISO, SPP, CAISO, ISO-NE and NYISO, pushing a binding standard to 2027 at the earliest .

The evidence-gathering step landed hard: FERC's 20 July adequacy-report Deadline arrived five days after MISO's second maximum-generation emergency of the month, and when all six operators filed on 23 July, none said it could serve its data-centre queue under current rules . Show-cause responses are due 17 August, public comments 16 September; a binding rule is not expected before 2027.

Common Questions

FERC delays a binding grid rule

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
What happens if FERC's June 2026 grid ruling is challenged in court?
Prior FERC large-load interconnection reforms have been challenged and overturned. FERC's stated aim for RM26-4-000 was a ruling that is 'quick, efficient, and legally durable' — language acknowledging that legal durability is the critical uncertainty, not just the policy content.Source: FERC / data-centres update 2
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

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
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
Source Material
Federal Energy Regulatory CommissionFERC official website