After months of White House pressure, FERC is kicking off large-load interconnection reforms. Yesterday, the agency ordered all six regional grid operators to “justify”—or accordingly tweak—the rules dictating how large loads (cough, cough: data centers) link to the grid. Specifically, FERC is directing RTOs and ISOs to weigh their current tariffs against a specific set of demands, including:
1) Preventing cost shifting
2) Enabling co-location agreements and behind-the-meter power
3) Offering new transmission services for flexible large loads
All that needs to happen within 60 days. Plus, grid operators and transmission owners must explain within 30 days how they’ll “ensure that adequate generation will be available to serve existing and new large loads.” But some operators are already making progress on these aims, including SPP. The individual responses will likely vary: FERC emphasized that each grid is unique, so “a one-size-fits-all solution” won’t be the most efficient.
Meanwhile, down in the Lone Star State, the Public Utility Commission of Texas approved ERCOT’s Batch Zero Process. Now, grouped studies of large-user connection requests will allow ERCOT to examine the bigger picture, dole out grid capacity “fairly,” and pinpoint necessary transmission upgrades. The first group (the eponymous “Batch Zero”) is expected to include some 100 GW of “mature” projects.
Both moves have sparked positive feedback from energy pros. FERC’s order did surprise some experts, who didn’t expect such a detailed (and fast-paced) action. The bottom line: The reaction is “universally positive,” energy entrepreneur Jigar Shah (who consulted on the orders) told Energy Central. “This really pushes all the ISOs and RTOs to be more productive…and gives the hyperscalers far more clarity,” he said. “We wanted to see the hyperscalers start being better grid citizens, which is what this FERC order requires them to do.”
The throughline? Grid operators face an understandably tight deadline to meet FERC’s demands—but they can rip ideas straight from ERCOT’s playbook. “I think we’re telling everybody to just copy ERCOT,” Shah said.
To hear more of his grid wisdom, check out our Power Perspectives episode featuring Jigar Shah.