FERC Orders Six Regional Grid Operators to Defend or Reform Large-Load Rules

The Federal Energy Regulatory Commission has ordered all six federally regulated regional grid operators to defend or revise the rules used to connect data centers, manufacturers and other large electricity users to the interstate power system.

The targeted show-cause orders, issued June 18, 2026, open a nationwide review of tariffs governing rapidly growing electricity demand. FERC is requiring each regional transmission organization or independent system operator, along with its transmission owners, to explain how adequate generation will be available for existing and new large loads.

The action applies to PJM Interconnection, the Midcontinent Independent System Operator, the Southwest Power Pool, the California Independent System Operator, ISO New England and the New York Independent System Operator. Together, they operate major U.S. electricity markets and transmission systems.

What FERC is reviewing

The proceeding is being conducted under section 206 of the Federal Power Act, a process that allows FERC to examine whether existing rates, terms and conditions are just and reasonable. The orders concern the tariffs that govern how large electricity users connect to the grid and how the system accounts for the generation needed to serve them.

FERC’s docket describes the affected large loads generally as facilities exceeding 20 megawatts. The category includes data centers and manufacturing facilities, as well as other major users whose demand can affect transmission planning and regional power supplies.

The review also considers flexible-load transmission services and rules for generation serving large users that are co-located with, or electrically close to, generation facilities. Those issues can determine how a regional grid accounts for demand, transmission upgrades and the resources needed to maintain reliable service.

FERC said it reviewed more than 3,500 pages of public comments before taking the action. Its docket identifies data centers, manufacturers, transmission providers and affected communities as interested parties in the proceeding.

What happens next

The six operators and their transmission owners were directed to submit informational reports within 30 days of the June 18 orders. Those reports are intended to explain how adequate generation will be available for both current and new large loads and to provide information relevant to possible tariff changes.

The 30-day reporting requirement is the next identified step in the federal review. The selected FERC announcement does not summarize whether every required filing was made or what each operator proposed. The final outcome of the individual tariff proceedings has not been established.

That distinction matters for companies planning major facilities and for communities and customers connected to the same regional systems. FERC has begun a review of the connection rules, but it has not approved one nationwide data-center tariff. The orders also do not guarantee that new generation will be built or prevent future reliability shortfalls.

Why the review matters

Large electricity users can require substantial new power supplies and transmission capacity. By directing every regional operator under its jurisdiction to address generation adequacy and connection tariffs, FERC is applying a common federal review across the country’s major organized electricity markets.

The proceeding could shape how operators evaluate new large-load requests, account for transmission upgrades and address arrangements involving co-located generation. It also puts consumer protections and the treatment of existing customers into the same regulatory discussion as data-center and industrial expansion.

Any effect on household electricity rates remains unresolved. Individual tariff filings would need to be reviewed before drawing conclusions about future rate impacts. For now, the verified development is the federal order for explanations and possible reforms—not a final national rule for large electricity users.