NEWS: FERC’s long-awaited large-load orders have arrived. Here’s what you might’ve missed. 👀

The context: As we reported last week, FERC has directed all six regional grid operators to “justify” whether their tariffs for large loads can accommodate the data center frenzy—and, if not, make the necessary adjustments. The caveat? FERC cautioned that it’s not trying to step on states’ toes when it comes to generation or rate-setting (or mess with existing large-load transmission agreements).

What’s buried: Deep in these documents, FERC calls for cost-recovery agreements for certain transmission upgrades. These would require data center developers to hand over funds upfront to avoid cost-shifting to other wholesale transmission customers if projects don’t pan out.

What’s left out: The orders tell grid operators to consider alternative transmission technologies...but don’t actually require anyone to use them, energy consultant Rao Konidena pointed out on Substack. This “reads less like a considered ATT mandate and more like a jurisdictionally cautious show-cause framing FERC could defend,” he wrote.

The big picture: “The key to this whole thing is [data center] flexibility,” energy entrepreneur Jigar Shah told Energy Central. This flexibility could come in plenty of forms, from behind-the-meter generation to demand-flexing software. (For more on the latter, check out our Power Perspectives episode with Arushi Sharma Frank, Senior Advisor on Power Utilities at Emerald AI.)