The Federal Energy Regulatory Commission has extended the initial comment deadline to November 21, 2025 on a proceeding that would, for the first time, set uniform rules for interconnecting very large loads—think hyperscale data centers and energy‑intensive manufacturing—directly to the interstate transmission system. The extension, issued November 7, follows an unusual October 23 directive from the Department of Energy invoking Section 403 to press FERC to act and finalize a rule by April 30, 2026.
DOE’s draft Advance Notice of Proposed Rulemaking defines “large loads” as those exceeding 20 MW and lays out principles that would align load interconnections with generator‑style processes. The draft contemplates standardized deposits and readiness milestones to deter speculative requests; joint applications for co‑located load and generation; and an expedited study lane for curtailable loads and hybrids. It also proposes that large‑load customers shoulder assigned network‑upgrade costs, potentially with a crediting mechanism.
Why it matters: U.S. electricity sales are now expected to rise 2.4% in 2025 and 2.6% in 2026, with growth concentrated in the West South Central region (including Texas) where data‑center and crypto demand are scaling fastest. A standardized federal process could help transmission providers triage requests, reduce study backlogs, and align upgrades with real projects. (U.S. Energy Information Administration)
Market context: The strain is already visible. PJM projects 32 GW of peak‑load growth from 2024–2030, about 30 GW of it from data centers—pressure that has driven new proposals to require deposits, curtailment obligations, or “bring‑your‑own‑generation” models. Nationally, forecasters expect record U.S. power consumption in 2025–2026 as AI, industrial onshoring, and electrification outpace legacy processes. (PJM Inside Lines)
The fault line: Jurisdiction will be contested. DOE acknowledges FERC historically has not asserted authority over load interconnections, even as it argues that transmission‑level hookups “fall squarely” under FERC’s remit. Expect state commissions and transmission owners to test the boundaries between federal transmission rules and state retail service.
What’s next: Initial comments are due Nov. 21; replies Dec. 5. FERC will then decide whether to advance to a formal NOPR in early 2026. For developers and offtakers, the risk calculus on co‑location, curtailment, and upgrade funding is now moving to the federal front line.
Sources
- FERC — Notice Granting Extension of Time, Docket RM26‑4‑000, Nov. 7, 2025 (initial comments now due Nov. 21; replies Dec. 5).
- DOE — Section 403 letter and attached draft ANOPR on Interconnection of Large Loads, Oct. 23, 2025 (≥20 MW threshold; expedited studies for curtailable loads/hybrids; network‑upgrade cost responsibility; final action by Apr. 30, 2026).
- EIA — Short‑Term Energy Outlook, Nov. 2025 (U.S. electricity sales +2.4% in 2025, +2.6% in 2026; West South Central leads growth). (U.S. Energy Information Administration)
- PJM — Inside Lines (Board‑directed initiative; +32 GW peak‑load growth by 2030, ~30 GW from data centers). (PJM Inside Lines)
- White & Case — Client alert summarizing DOE’s jurisdictional posture and schedule under Section 403. (White & Case)
