The Federal Energy Regulatory Commission just did something it has historically avoided: stepping into the business of how large energy consumers connect to the grid. On June 18, FERC issued show cause orders to all six regional grid operators, demanding they either justify their current interconnection tariffs for large energy users or reform them.
The targets are facilities like AI data centers and manufacturing plants that need more than 20 MW of power. For context, 20 MW is enough to power roughly 15,000 homes. A single large AI data center can require hundreds of megawatts.
What FERC actually ordered
The commission acted under Section 206 of the Federal Power Act, directing orders at PJM, MISO, SPP, CAISO, ISO-NE, and NYISO. That covers essentially every major regional grid operator in the country.
The timeline is aggressive by regulatory standards. Grid operators must deliver a capacity status report within 30 days and full integration reform plans within 60 days.
