FERC took historic action today to speed up grid connections for AI data centers and other large electricity users (20+ MW). Instead of the usual slow rulemaking process, FERC issued customized orders directly to all six regional grid operators under Section 206 of the Federal Power Act — a faster, harder-to-challenge legal approach.
Key elements:
• Co-location with generation resources (bypassing congested transmission) is a primary strategy
• Large load customers will bear more of the interconnection upgrade costs rather than spreading them to ratepayers
• Aggressive timelines are expected to shrink the multi-year interconnection queue backlog
• Fulfills a DOE directive from Secretary Chris Wright issued in October 2025
The action is region-specific rather than a broad national rule, which strengthens its legal durability against state-level challenges.
ABOUT THE AUTHOR
Russ Hissom, CPA
Principal, Utility Accounting & Rates Specialists, LLC
Russ has over 35 years of experience in utility accounting, regulatory finance, and rate design. He provides CPE training and consulting to electric, gas, and water utilities across the U.S. Connect on LinkedIn