FERC show-cause orders aim to speed large-load integration

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FERC is pushing large-load interconnection reforms by issuing tailored show cause orders to six regional RTOs and ISOs: ISO-NE, NYISO, PJM, MISO, SPP and CAISO. These regional grid operators have 60 days to “justify or reform” the rules dictating how data centers, manufacturing facilities, and other large energy users connect to the grid. The grid operators and its transmission owners have 30 days to provide details about how they make adequate generation available to serve existing and new large loads.

FERC defines five categories of reform for each grid operator to address:

1. Efficient transmission service application and study processes, including consideration of alternative transmission technologies
2. Preventing cost shifting and requiring transparency into transmission costs
3. Accommodating co-location agreements and behind-the-meter generation
4. New transmission services for flexible large loads
5. A process to study generation proximate to large loads and co-located loads

To get more perspective, read this post from Sheppard Mullin, FERC Orders Six RTOs To Address Specific Reforms To Effectuate Speed To Power That Will Facilitate The Integration Of Large Loads

Grid Forward contacted Bruce Grabow, partner at Sheppard Mullin, for his impressions. 

“This sets in motion the rules to get load and generation matched up to serve the grid,” said Grabow. “It doesn’t answer all the transmission constraint issues, but it should facilitate speed to power using the tools within the FERC’s jurisdiction. How this all gets into place is still in question, including the extent each RTO will hold stakeholder processes to develop the Tariff revisions. FERC has given the RTOs 60 days to respond. If FERC ultimately finds that an RTO’s response is not sufficient, FERC can reject the submission or require fixes.”

Grid Forward also spoke with Ray Gifford, Denver Office Managing Partner, Wilkinson, Barker, Knauer, LLC.

“This large load integration order from FERC feels like déjà vu, similar to something along the lines of 1920 order” according to Gifford. “FERC thought then that more oversight and process for integrated planning would lead to further transmission development. Here they think additional oversight and planning will lead to further data center integration. Since Order 1000, more planning and FERC oversight has not exactly achieved the stated goals FERC had.”

Gifford shared that most states and regions will still act on their own interests and pace to fast-track or stall-out with large-load developments. Gifford continued, “While this current FERC may have more tendency to push federal direction, ultimately there are only so many levers they can pull. Market organizers and states will retain most of the control for the pace of large load interconnections. FERC at least stayed in its lane jurisdictionally, which is welcome.”

Grid Forward will continue to track the progress of these call orders and bring you more information and perspectives. In the meantime, here are additional articles to help you prepare for this process.

• Utility Dive: 6 takeaways from FERC’s data center interconnection decision
• Factor This: FERC takes historic action, orders US grid operators to ‘defend or revise’ large load interconnection tariffs
• T&D World: FERC Orders “Aggressive Targeted Action” to Speed Power to Support Data Centers
• NVIDIA: How FERC’s Large-Load Interconnection Actions Help Address Grid Stress, Improve Affordability