FERC issues orders to accelerate AI data center grid connections

The Federal Energy Regulatory Commission on June 18, 2026, issued six tailored orders to U.S. regional grid operators under Section 206 of the Federal Power Act. The orders direct the operators to justify within 60 days why their existing utility pricing structures can accommodate large loads such as artificial intelligence data centers or to file tariff changes. They must also submit within 30 days a report describing how they intend to ensure adequate generation capacity for existing and new large loads. The action responds to a 2025 request from Department of Energy Secretary Chris Wright. It applies to the six regional transmission organizations and independent system operators: PJM Interconnection, LLC, Midcontinent Independent System Operator, Inc., Southwest Power Pool, Inc., California Independent System Operator Corporation, ISO New England Inc., and New York Independent System Operator, Inc. The commission recommended that the operators address five categories of potential reform. These include developing efficient transmission services, preventing cost shifting with greater transparency into transmission costs, accommodating co-location agreements and behind-the-meter generation, providing new transmission services for flexible large loads, and developing a process to study generation plants that power large load users. The orders apply to loads exceeding 20 megawatts. The commission noted that Southwest Power Pool, Inc., stands out with its High Impact Large Load and High Impact Large Load Generation Assessment processes. Under current processes, it takes at least five years for loads of 200 megawatts or more to connect to the grid from initial request to commercial operation. The orders target large-load users including AI data centers and manufacturing facilities.