The Federal Energy Regulatory Commission (FERC) has taken a significant step toward addressing the growing demand for electricity from data centers, advanced manufacturing facilities, and other energy-intensive users. On June 18, 2026, FERC issued separate show cause orders to each of the six Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs) under its jurisdiction, directing them to justify their existing large-load interconnection processes or propose reforms.
FERC’s latest orders signal that the Commission believes additional action is needed to accommodate unprecedented load growth while protecting reliability and existing customers.
Rather than pursuing a one-size-fits-all national rulemaking, FERC tailored its orders to each regional grid operator—PJM, SPP, NYISO, MISO, CAISO, and ISO-NE—while focusing on several common themes. These include:
- improving transmission study processes,
- increasing cost transparency,
- clarifying treatment of co-located generation and behind-the-meter resources,
- creating service frameworks for flexible large loads,
- and developing methods to study generating facilities associated with those loads.
The orders also establish an aggressive timeline. Each RTO/ISO has 60 days from June 18, 2026, to demonstrate that its existing tariff remains just and reasonable or submit revisions addressing FERC’s concerns. In addition, grid operators and transmission owners must submit informational reports within 30 days from June 18, 2026, describing how they plan to ensure sufficient generation resources are available to serve both existing and new large-load customers.
For stakeholders in the power, infrastructure, manufacturing, and data center sectors, these proceedings could influence how large-load projects move through interconnection and transmission service processes in the years ahead. Developers, utilities, transmission providers, and major energy users should closely monitor the proceedings and evaluate potential impacts on future project development and grid access strategies.
For a deeper analysis of the six show cause orders, key deadlines, and stakeholder considerations, read the full legal update here.