Faster Interconnections for Large Loads Are Coming: What to Know

On October 23, 2025, U.S. Secretary of Energy Chris Wright directed the Federal Energy Regulatory Commission (FERC) to initiate rulemaking procedures with a proposed Advanced Notice of Proposed Rulemaking (ANOPR) to accelerate the interconnection of large loads, including data centers.

This direction comes as electricity demand in the United States continues to grow at an extraordinary pace. While there are several drivers for this growth, such as home and vehicle electrification, it is the increasing quantities of large commercial and industrial load connecting rapidly to the transmission system that is presenting unique challenges for demand forecasting and system planning. Secretary Wright’s direction seeks to provide open access, as well as nondiscriminatory access, to the transmission system by standardizing interconnection procedures and agreements for such loads, including those seeking to share a point of interconnection with new or existing generation facilities (hybrid facilities).

Secretary Wright’s ANOPR introduces the need for the reform due to the desire to accommodate the growth in electricity demand and establish uniformity, ultimately resulting in increased capacity and reliability. In addition, the ANOPR sets forth the proposed legal justifications for FERC’s assertion of jurisdiction over transmission-level load interconnections, as well as 14 principles of reform.

Jurisdictional Justifications

Section 201(b) of the Federal Power Act (FPA) provides that FERC shall have jurisdiction over the transmission of electric energy in interstate commerce and to the sale of electric energy at wholesale in interstate commerce. Historically, FERC has not exerted this jurisdiction over load interconnections. According to Secretary Wright’s view, however, the interconnection of large loads directly to the interstate transmission system to access the transmission system and the electricity transmitted over it falls squarely within FERC’s jurisdiction. The ANOPR sets forth at least four legal justifications for FERC’s jurisdiction over such connections.

1. Like generator interconnections, large load interconnections are a “critical component of open access transmission service” that require minimum terms and conditions to ensure non-discriminatory transmission service.
2. The interconnection of large loads to the transmission system falls under a practice directly affecting FERC-jurisdictional wholesale electricity rates. The FPA has vested FERC with exclusive authority to ensure that wholesale rates are just and reasonable and not unduly discriminatory or preferential.
3. The proposal does not impinge on states’ authority over retail electricity sales by asserting jurisdiction over the interconnection of large loads to the transmission system. Even if the large load seeking to interconnect to the transmission system is an end-use customer, the proposal does not exert jurisdiction over any retail sales to the large load. Similarly, nothing in the proposed reforms governs the siting, expansion, or modification of generation facilities. Authority over expansion or siting of generation facilities remains reserved to the states, consistent with section 201(b)(1) of the FPA.
4. Any contrary view of the proposed reforms conflicts with the FPA’s core purposes. FERC has exclusive jurisdiction over the transmission of electric energy in interstate commerce, including the rates, terms, and conditions of transmission service, and all facilities for such transmission or sale of electric energy at wholesale in interstate commerce. Any large load that seeks to interconnect to the transmission system does so to obtain transmission service and the appurtenant benefits of such.

Principles of Reform

In addition, ANOPR sets forth a list of 14 principles of reform to inform FERC’s rulemaking procedures and establish standardized procedures, agreements, and requirements for large load (similar to those in place for generator interconnection). Among other things, these principles seek to allow customers to file joint, co-located load and generation interconnection requests, as well as to reduce study times and grid upgrade costs, along with the time needed for additional generation and power to come online.

1. To avoid affecting the states’ jurisdiction over generation facilities, facilities used in local distribution or only for the transmission of electric energy in intrastate commerce, or transmissions consumed by the transmitter, FERC’s jurisdiction should be limited to interconnections directly to transmission facilities, consistent with FERC’s seven-factor test.
2. Consistent with FERC’s pro forma Large Generator Interconnection Procedures and Large Generator Interconnection Agreement, the reforms should only apply to new loads greater than 20 megawatts (MW) and, for hybrid facilities, where the load is greater than 20 MW.
3. To the extent practicable, load and hybrid facilities should be studied together with generating facilities, as this will allow for efficient siting of loads and generating facilities and thereby minimize the need for costly network upgrades.
4. Like generating facilities, load and hybrid facilities should be subject to standardized study deposits, readiness requirements, and withdrawal penalties, as these provisions deter speculative projects and provide transmission providers with more useful information to more accurately forecast demand on their systems.
5. Hybrid facilities should be studied based on the amount of injection and/or withdrawal rights requested, as this provides incentives for co-location with new generation facilities and ensures efficient buildout of the transmission system.
6. Any hybrid interconnection shall be required to install the system protection facilities necessary to prevent unauthorized injections or withdrawals that exceed the respective rights.
7. The interconnection study of large loads that agree to be curtailable and hybrid facilities that agree to be curtailable and dispatchable should be expedited. The system operator’s ability to control such facilities through curtailment and/or dispatch must be sufficient for the system operator to integrate the facility into both operations and system planning. This ensures the timely and orderly addition of large loads to the transmission system in a safe, reliable, and non-discriminatory manner.
8. Load and hybrid facilities should be responsible for 100 percent of the network upgrades that they are assigned through the interconnection studies.
9. To the extent the interconnection customer is not the transmission owner, the interconnection customer shall be afforded the same (or equivalent) option to build as currently provided to generator interconnection customers.
10. An existing generating facility that seeks to enter a partial suspension to serve a new load at the same location must go through a System Support Resource/Reliability Must Run–type study. The study must consider system conditions, including forecasted load growth, at least three years after the proposed suspension date. The partial suspension can only proceed after any network upgrades needed to ensure reliability are placed into service. Any such network upgrades shall be the responsibility of the generating facility.
11. Utilities serving large loads, including those at hybrid facilities, should be responsible for transmission service based on their withdrawal rights, as that value amount reflects the quantity of capacity and energy that is being transmitted across the transmission system to the load.
12. Utilities serving large loads, including those at hybrid facilities, should be responsible for ancillary services based on peak demand, without consideration of any co-located generation. Any co-located generating facilities will similarly be fully compensated for the provision of ancillary services.
13. There must be a plan to implement these proposed reforms, such as appropriate transition plans addressing the treatment of large load interconnections that are already being studied for interconnection.
14. Utilities serving large loads must meet all applicable North American Electric Reliability Corporation (NERC) reliability standards and Open Access Transmission Tarriff provisions. Utilities and we must be prepared to revise large load interconnection procedures and agreements, as necessary. NERC should review its reliability standards to determine if new registration categories or new or modified reliability standards are required to ensure reliability of the Bulk Electric System.

ANOPR notes that it is not intended, in any way, to discourage public utilities from pursuing filings to address these and similar issues under section 205 of the FPA.

Next Steps

While Secretary Wright’s authority under section 403 of the Department of Energy Organization Act empowers him to “propose rules, regulations, and statements of policy of general applicability[,]” as he has done here, it does not require FERC to implement such the proposed rules and regulations. Instead, FERC is required to “consider and take final action on any [such] proposal.” That is, under section 403, Secretary Wright’s proposal is only the beginning of any agency action and consideration, making it difficult to determine what, if anything, may happen.

That is, it is important to note Secretary Wright’s proposed ANOPR is not a proposed rulemaking, and instead, is the first step in the rulemaking process. The ANOPR is intended to solicit comments and views from interested parties on the rulemaking concepts set forth therein. On October 27, 2025, FERC took initial action on the proposal by establishing a new docket and issuing a Notice Inviting Comments, setting forth an initial comment deadline of November 14, 2025, and a reply comment deadline of November 28, 2025.

Secretary Wright’s direction calls for FERC to respond no later than April 30, 2026. If FERC decides to proceed, it will issue the proposed ANOPR, which will then be followed by a Notice of Proposed Rulemaking and a Final Rule.

Republished with permission. This article, "Faster Interconnections for Large Loads Are Coming: What to Know," was published by American Bar Association on March 19, 2026. (login required)