Story perspectives

FERC Demands Grid Reforms to Accelerate Data-Center Connections, Shield Ratepayers

6/19/2026

Summary

FERC Orders Reforms

FERC ordered regional grid operators to propose reforms within 60 days to speed data-center interconnections and protect ratepayers.
The orders require operators to justify or revise rules for large energy users, allocate infrastructure costs, and file a 30-day report on generation adequacy.
Officials say the measures, urging users to locate near generation, build own supply, or cut peak demand, will protect customers from subsidizing data-center projects that may not occur.

Summary

Data Centers Surge

Data centers now use about 5% of U.S. electricity and could triple by 2035, while Virginia already exceeds 25% of demand and may reach 40% by 2030.
J.P. Morgan reports over 60% of 2027 data-center capacity is not under construction and 7% is delayed because of permitting, turbine and labor shortages.
The Edison Electric Institute praised reforms for speeding studies but warned deeper federal reach could spark lawsuits with state regulators.

History

Historical Context

The August 14, 2003 Northeast blackout left roughly 55 million people without power after FirstEnergy’s alarm software failed, prompting a U.S.–Canada task force led by Herb Dhaliwal and Energy Secretary Spencer Abraham. The event drove the 2005 Energy Policy Act, making NERC reliability standards mandatory, and today FERC orders regional operators to apply those standards to data-center interconnections.

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FERC Orders Reforms

FERC ordered regional grid operators to propose reforms within 60 days to speed data-center interconnections and protect ratepayers.
The orders require operators to justify or revise rules for large energy users, allocate infrastructure costs, and file a 30-day report on generation adequacy.
Officials say the measures, urging users to locate near generation, build own supply, or cut peak demand, will protect customers from subsidizing data-center projects that may not occur.

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