EL26-68-000 · 2026-06-18 · FERC
SPP show cause order
Back to sections and commentaryPDF page 1
195 FERC ¶ 61,213
UNITED STATES OF AMERICA
FEDERAL ENERGY REGULATORY COMMISSION
Before Commissioners: Laura V. Swett, Chairman;
David Rosner, Lindsay S. See,
Judy W. Chang, and David LaCerte.
Southwest Power Pool, Inc.
AEP Oklahoma Transmission Company, Inc.
AEP Southwestern Transmission Company, Inc.
Deseret Generation & Transmission Co-operative, Inc.
Empire District Electric Company
Evergy Kansas Central, Inc.
Evergy Kansas South, Inc.
Evergy Metro, Inc.
Evergy Missouri West, Inc.
GridLiance High Plains LLC
ITC Great Plains, LLC
Mountrail-Williams Electric Cooperative
NextEra Energy Transmission Southwest, LLC
NorthWestern Energy Public Service Corporation
Oklahoma Gas and Electric Company
Prairie Wind Transmission, LLC
Public Service Company of Oklahoma
Southwestern Electric Power Company
Southwestern Public Service Company
Transource Missouri, LLC
Transource Oklahoma, LLC
Tri-State Generation and Transmission Association, Inc.
Upper Missouri G. & T. Electric Cooperative, Inc.
Docket No. EL26-68-000
ORDER INSTITUTING PROCEEDING
UNDER SECTION 206 OF THE FEDERAL POWER ACT
(Issued June 18, 2026)PDF page 2
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Paragraph Numbers
I. Background ..................................................................................................................... 6.
A. Growth of Large and Co-Located Loads and ANOPR ............................................. 6.
B. Recent Proceedings Addressing Large and Co-Located Loads .............................. 11.
1. PJM Co-Location Proceedings ............................................................................ 12.
2. SPP High Impact Large Load and High Impact Large Load Generation
Assessment Processes .............................................................................................. 15.
3. SPP Conditional High Impact Large Load Service ............................................. 17.
II. SPP’s Existing Processes ............................................................................................. 19.
A. Existing Tariff Processes ......................................................................................... 19.
B. Recent Stakeholder Proceedings in SPP ................................................................. 27.
III. Discussion ................................................................................................................... 29.
A. Transmission Service to Eligible Customers on Behalf of Large Loads ................ 35.
1. Jurisdiction ........................................................................................................... 37.
2. Tariff Provisions .................................................................................................. 43.
B. Cost Shifting Risk Among Transmission Customers .............................................. 47.
1. Jurisdiction ........................................................................................................... 49.
2. Additional Cost Transparency ............................................................................. 52.
3. Cost Recovery Agreements ................................................................................. 59.
C. Co-Location Arrangements and Load with Behind the Meter Generation ............. 67.
1. Definition ............................................................................................................. 69.
2. Jurisdiction ........................................................................................................... 73.
3. Tariff Provisions .................................................................................................. 75.
D. Extending New Transmission Services to Eligible Customers Taking Service on
Behalf of Flexible Large Loads ................................................................................... 85.
E. Informational Report ............................................................................................... 89.
IV. Briefing Questions ...................................................................................................... 92.
Over the past year, the Commission has taken action in numerous dockets1 to
address issues related to (a) unprecedented increases in requests for transmission service
1 See, e.g., PJM Interconnection, L.L.C., 190 FERC ¶ 61,115 (2025)
(PJM Show Cause Order); PJM Interconnection, L.L.C., 193 FERC ¶ 61,217 (2025)
(PJM Co-Location Order); Sw. Power Pool, Inc., 194 FERC ¶ 61,031 (2026) (SPP HILL
Order); Sw. Power Pool, Inc., 195 FERC ¶ 61,196 (2026) (SPP CHILLS Order); see also,
e.g., Duke Energy Carolinas, LLC, 193 FERC ¶ 61,237 (2025); Commonwealth Edison
Co., 194 FERC ¶ 61,181 (2026).
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to serve large loads2 and (b) growing interest in the co-location of loads with generating
facilities (co-location arrangements3). Separately, the Secretary of Energy (Secretary)
released an advance notice of proposed rulemaking (ANOPR) in October 2025. The
ANOPR, issued pursuant to section 403 of the Department of Energy Organization Act,4
directed the Commission to consider taking additional actions to address the addition of
large and co-located loads to the transmission system.5 The records in these proceedings
illustrate a host of urgent challenges associated with providing the transmission service
needed to serve the ongoing influx of large loads while maintaining reliability and
affordability. In particular, stakeholders have expressed concerns that large loads are not
efficiently and appropriately integrated onto the transmission system; have identified a
number of unique challenges that large load integration poses for the reliable operation of
that system; and have debated how best to ensure that the rates, terms, and conditions of
transmission service remain just and reasonable as more and more large loads are
onboarded onto that system.6 The records in these proceedings likewise present serious
2 For the purposes of this order, we adopt SPP’s definition of high impact large
load (HILL) for large load. See infra note 54.
3 As explained below, it appears that it would be reasonable to define co-located
load as a configuration that refers to end-use customer load that is physically connected
to the facilities of an existing or planned generating facility on the interconnection
customer’s side of the point of interconnection to the RTO/ISO’s transmission system.
In this order, we will use the term co-location arrangement when referring to both the
co-located load and the associated generating facility. See infra P 69.
4 42 U.S.C. § 7173.
5 See Interconnection of Large Loads to the Interstate Transmission System,
Advance Notice of Proposed Rulemaking, Docket No. RM26-4-000 (Oct. 23, 2025)
(ANOPR); see also Letter from Chris Wright, Sec’y, U.S. Dep’t of Energy, Docket
No. RM26-4-000 (Oct. 23, 2025). The ANOPR uses the term “hybrid facilities,”
which it explains are large loads that “share a point of interconnection with new or
existing generation facilities.” ANOPR at P 12. In this order, as explained below,
we use the term co-located load.
6 Throughout this order we rely on comments and answers filed in response to the
ANOPR in Docket No. RM26-4-000 and all referenced comments in this order were filed
in that docket, unless otherwise noted. A full list of commenter names and abbreviations
is attached to this order as an Appendix. Additionally, we have relied on the discussions
held in the Federal and State Current Issues Collaborative in Docket No. AD24-7-000
(NARUC Collaborative). All entities who wish to participate in this docket, regardless
of participation in the ANOPR proceeding or NARUC Collaborative, should file to
intervene in Docket No. EL26-68-000.
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concerns about the lack of clarity and consistency in Regional Transmission Organization
or Independent System Operator (RTO/ISO) tariffs—including with respect to the rates,
terms, and conditions of service that apply to flexible large loads, co-location
arrangements, load with behind the meter generation, and generating facilities with
electrically proximate large load7 or co-located load.8
The findings in several recent Commission proceedings establish the foundations
of a just and reasonable framework for addressing these concerns and ensuring the
timely, efficient, and reliable integration of large and co-located loads onto the
transmission system. For example, we directed PJM Interconnection, L.L.C. (PJM) to
take steps to address the challenges of integrating co-located loads onto the transmission
system while ensuring that its tariff remains just and reasonable.9 We recognize and
applaud Southwest Power Pool, Inc. (SPP) for taking critical steps to address the addition
of large and co-located loads to its transmission system.10 SPP has already enhanced its
study process for requests from Eligible Customers11 for transmission service to serve
7 As discussed below, under HILLGA, the generating facility and the HILL to be
served must be located no more than two substations apart. See infra P 15.
8 We note that SPP’s Tariff does not have a formal definition of “co-located load”
or “co-location arrangement.” As discussed below, for the purposes of HILLGA, the
generating facility only must be in close electrical proximity. However, HILLs and the
generating facility could be co-located. SPP TOs November 21 ANOPR Comments at 5.
9 PJM Show Cause Order, 190 FERC ¶ 61,115; PJM Co-Location Order,
193 FERC ¶ 61,217.
10 SPP HILL Order, 194 FERC ¶ 61,031; SPP CHILLS Order, 195 FERC ¶
61,196.
11 SPP defines Eligible Customer, in relevant part, as
Any electric utility (including the Transmission Owner(s) and
any power marketer), Federal Power Marketing Agency, or
any person generating electric energy for sale for resale…
(ii) Any retail customer or eligible person taking unbundled
transmission service pursuant to a state requirement that a
Transmission Owner offer the transmission service, or
pursuant to a voluntary offer of such service by a
Transmission Owner, is an Eligible Customer under the
Tariff.”
SPP Open Access Transmission Tariff, Sixth Revised Vol. No. 1, pt. I, § 1 (Definitions E)
(6.1.0) (SPP Tariff).
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large loads. So too has SPP provided a new transmission service that recognizes that
large loads, including co-located large loads, are flexible and willing to limit withdrawals
from the transmission system. We commend SPP’s leadership on these issues and
appreciate the bold and proactive steps that SPP has taken to address the influx of large
loads, including co-located large loads. Given SPP’s enhanced study processes and new
transmission service for Eligible Customers taking transmission service on behalf of large
loads, we expect that SPP will be able to demonstrate that it has resolved several of the
concerns that the Commission has about a lack of clarity and consistency in other
regions’ tariffs. That said, SPP has not yet proposed tariff revisions to address all of the
challenges associated with the integration of large and co-located loads.
As discussed below, we find that SPP’s existing Open Access Transmission Tariff
(Tariff) appears to be unjust, unreasonable, or unduly discriminatory or preferential. We
thus institute a show cause proceeding pursuant to section 206 of the Federal Power Act
(FPA),12 and we direct SPP and the Transmission Owners,13 within 60 days of the date of
this order, to either:
12 16 U.S.C. § 824e.
13 Transmission Owners refers to the entities listed in the caption of this order.
We recognize that SPP’s transmission owners include entities that are not subject to the
Commission’s jurisdiction because they are not public utilities pursuant to section 201(f) of
the FPA. See 16 U.S.C. § 824(f); Sw. Power Pool, Inc., 180 FERC ¶ 61,022, at PP 44-45
(2022). Accordingly, the Commission has not included Arkansas Electric Cooperative
Corporation; Basin Electric Power Cooperative; Central Nebraska Public Power and
Irrigation District; Central Power Electric Cooperative, Inc.; City of Coffeyville, Kansas;
City of Independence, Missouri; City Utilities of Springfield, Missouri; Colorado Springs
Utilities; Corn Belt Power Cooperative; East River Electric Power Cooperative, Inc.;
East Texas Electric Cooperative, Inc.; Farmington Electric Utility System; Grand River
Dam Authority; Harlan Municipal Utilities; Heartland Consumers Power District;
Kansas City Board of Public Utilities; Kansas Power Pool; L and O Power Cooperative;
Lea County Electric Cooperative, Inc.; Lincoln Electric System; Midwest Energy, Inc.;
Missouri Joint Municipal Electric Utility Commission; Missouri River Energy Services;
Mor-Gran-Sou Electric Cooperative, Inc.; Nebraska Public Power District; and Northwest
Iowa Power Cooperative; Oklahoma Municipal Power Authority; Omaha Public Power
District; People’s Electric Cooperative; Platte River Power Authority; Roughrider Electric
Cooperative, Inc.; Southwestern Power Administration; Sunflower Electric Power
Corporation; Western Area Power Administration-Upper Great Plains Region; Western
Area Power Administration-Colorado River Storage Project Management Center; Western
Area Power Administration-Rocky Mountain Region; and Western Farmers Electric
Cooperative here as Transmission Owners that must respond to this order to show cause.
Nonetheless, the Commission retains the authority to review each entity’s formula rates as
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(1) show cause as to why the Tariff remains just and reasonable and not unduly
discriminatory or preferential without provisions that:
(a) require the evaluation of alternative transmission technologies,14 and
memorialize ongoing operational requirements in a transmission service
agreement between SPP and the transmission customer taking transmission
service on behalf of a large load;
(b) address additional transparency concerning the Network Upgrade15
costs to provide transmission service to Eligible Customers on behalf of
large loads, establish a pro forma cost recovery agreement between SPP,
the relevant transmission owner, and Eligible Customer taking transmission
service on behalf of the large load to mitigate the risk of cost shifting
among transmission customers, and establish a mechanism to ensure
such payments are appropriately credited toward transmission owners’
transmission revenue requirements consistent with the Commission’s
cost-of-service regulations;
(c) address the rates, terms, and conditions of service that apply to
co-location arrangements; and
(d) address transmission services that reflect Eligible Customers taking
transmission service on behalf of co-located loads, load with behind the
meter generation, and flexible large loads that are willing and able to limit
their use of the transmission system under certain conditions;16 or
a component of SPP’s Tariff in an order to show cause directed towards SPP, and SPP
must respond to this order regarding the non-public utilities’ SPP Tariff provisions on file
with the Commission. See Sw. Power Pool, Inc., 180 FERC ¶ 61,022 at P 40.
14 For purposes of this order, alternative transmission technologies include static
synchronous compensators, static VAR compensators, advanced power flow control
devices, transmission switching, synchronous condensers, voltage source converters,
advanced conductors, tower lifting, and dynamic line ratings. We note that the
Commission has also referred to these types of technologies as Grid Enhancing
Technologies (GETs).
15 Capitalized terms not otherwise defined herein have the meanings ascribed to
them in the Tariff.
16 As explained below, for purpose of this order, “flexible” large loads are a subset
of HILLs that are not co-located with generation, but are willing and able to limit their
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(2) explain what changes to the Tariff would remedy the identified concerns if the
Commission were to determine that the Tariff has in fact become unjust and
unreasonable or unduly discriminatory or preferential and, therefore, proceeds to
establish a replacement Tariff.
We are also concerned with SPP’s need to ensure adequate generation to serve
new large loads.17 We therefore direct SPP to submit, within 30 days of the date of
issuance of this order, an informational report on how SPP intends to ensure that
adequate generation will be available to serve existing and new large loads, as detailed
later in this order.
We recognize that large loads, including data centers, are actively working
with transmission owners and other relevant entities to interconnect to, and to take
service from, the transmission system. We appreciate that different large loads are
currently at different stages of that process. We also understand that large loads and
Eligible Customers taking transmission service on behalf of large loads are negotiating,
entering into, and/or have executed various agreements related to interconnecting to the
transmission system and/or the provision of transmission service. This proceeding is not
intended to disrupt existing commercial arrangements, but rather to establish prospective
reforms. Accordingly, any Tariff revisions offered by SPP and/or the Transmission
Owners in response to this proceeding should (a) propose a reasonable implementation
period to ensure minimal disruption to such existing commercial arrangements, and
(b) allow a reasonable amount of time to finalize ongoing agreements that are nearing
completion as of the date such Tariff provisions are filed with the Commission. Such
proposed Tariff revisions should include a reasonable effective date that accommodates
such considerations regarding these existing commercial arrangements.
I.
Background
A.
Growth of Large and Co-Located Loads and ANOPR
As the Secretary explained in the ANOPR, electricity demand in the United States
is expected to grow at an extraordinary pace in the near term, largely due to the rapid
energy withdrawals from the transmission system under certain conditions. See infra
note 163.
17 Cf. PJM Co-Location Order, 193 FERC ¶ 61,217 at PP 237-239 (highlighting
PJM’s ongoing Critical Issue Fast Path stakeholder process to consider proposals to help
integrate large load additions without causing resource inadequacy and directing an
informational report on the status of those proposals).
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growth of large loads.18 The Secretary highlighted findings from the North American
Electric Reliability Corporation (NERC) that show that demand growth is now higher
than at any point in the past two decades, driven in part by increasing quantities of large
commercial and industrial load, most notably data centers, connecting rapidly to the
transmission system.19 The Secretary also highlighted NERC’s conclusion that the size
and speed with which data centers can be connected to the grid present unique challenges
for demand forecasting and system planning. The ANOPR proposed that, in light of the
unprecedented current and expected growth of large loads seeking to interconnect to the
transmission system, the Commission should standardize interconnection procedures and
agreements for large loads, including those that seek to share a point of interconnection
with new or existing generation facilities.20
On April 16, 2026, the Commission issued an order regarding its intent to act with
respect to the ANOPR docket.21 In that order, the Commission explained that it agreed
with the Secretary “that, ‘[i]n light of the unprecedented current and expected growth of
large loads’ such as data centers, there is an urgent need for thoughtful reforms to ensure
that large loads are ‘able to connect to the transmission system in a timely, orderly, and
non-discriminatory manner.’”22 After recognizing the Commission’s recent actions in
proceedings involving issues associated with large loads,23 the Commission concluded
18 ANOPR at 2 (citing U.S. Dep’t of Energy, Resource Adequacy Report:
Evaluating the Reliability & Security of the United States Electric Grid (July 2025),
www.energy.gov/sites/default/files/2025-07/DOE%20Final%20EO%20Report%
20%28FINAL%20JULY%207%29.pdf).
19 Id. (citing NERC, 2024 Long- Term Reliability Assessment 8 (Dec. 2024,
updated July 2025), https://www.nerc.com/pa/RAPA/ra/Reliability%20Assessments%
20DL/NERC_Long%20Term%20Reliability%20Assessment_2024.pdf).
20 Id. P 12. For example, the ANOPR proposed that load and hybrid facilities
should be studied together with generating facilities, observing that “siting a large load
near or at the same point of interconnection as a new generating facility could reduce the
network upgrades needed to interconnect only the load or only the generating facility.”
ANOPR at P 20.
21 Interconnection of Large Loads to the Interstate Transmission Sys., 195 FERC ¶
61,045 (2026) (Order Regarding Intent to Act).
22 Id. P 2.
23 Id. (citing PJM Co-Location Order, 193 FERC ¶ 61,217; SPP HILL Order,
194 FERC ¶ 61,031; Commonwealth Edison Co., 194 FERC ¶ 61,181; Tri-State
Generation & Transmission Ass’n, 193 FERC ¶ 61,070 (2025); Duke Energy Carolinas,
LLC, 193 FERC ¶ 61,237 (2025)).
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that it was clear that additional “action is warranted to support further progress where it is
needed.”24
In response to the ANOPR, SPP states that it is facing significant operational,
planning, and market challenges in response to unprecedented growth in large and non-
traditional load interconnection requests.25 SPP has elsewhere explained that large loads
interconnected to the transmission system can stress both real-time operational reliability
and resource adequacy planning, particularly in areas with constrained transmission
capacity.26 SPP also acknowledges that the scale and speed with which large loads seek
to interconnect to the transmission system, and the operational inflexibility of these loads,
strain existing transmission planning processes, real-time operational tools, and market
mechanisms originally designed for gradual and geographically distributed load growth.27
A number of large load projects are underway in the SPP footprint.28 SPP has previously
noted that large load interconnection request submissions peaked in SPP in 2022 at nearly
11 GW, but have since dropped to approximately 6 GW in 2024; according to SPP, this
trend could be due in part to SPP’s inability to study and interconnect large loads quickly
enough to meet their commercial needs.29 As explained in detail below, SPP has taken
steps to address these challenges in a number of recent proceedings.30
While some commenters in the ANOPR proceeding assert that SPP’s existing
processes and recent efforts are sufficient to address the challenges presented by large
24 Id. PP 3-4.
25 SPP November 21 ANOPR Comments at 2.
26 See, e.g., Sw. Power Pool, Inc., Docket No. ER26-1323-000, Transmittal at 2
(filed Feb. 10, 2026) (SPP CHILLS Transmittal).
27 Id.
28 EEI March 12 ANOPR Comments, attach. 1, at 1-8 (listing publicly announced
large load projects, including in the SPP footprint).
29 Sw. Power Pool, Inc., Docket No. ER26-247-000, Transmittal at 8-9, figs. 2, 3
(filed Oct. 24, 2025) (SPP HILL Transmittal).
30 See infra PP 15-18.
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and co-located loads,31 other entities in the SPP footprint support additional reforms.32 In
particular, many entities seek additional transparency from SPP and believe that further
action is needed to protect ratepayers from cost shifts caused by large and co-located
loads.33 Others stakeholders argue the Commission should provide mechanisms for
additional load flexibility.34 The Missouri Commission also supports efficient and
comprehensive study procedures for co-location arrangements.35 Antora asserts that SPP
should offer a permanent non-firm transmission service option.36
Moreover, many commenters in the ANOPR proceeding filed persuasive
comments documenting, generally, the need for clear and consistent tariff provisions to
ensure regulatory and process certainty, fairness and consistency, and efficiency as large
and co-located loads are added to the transmission system in increasing numbers.37
31 See, e.g., Arkansas Commission November 21 ANOPR Comments at 2-3;
North Dakota Commission November 21 ANOPR Comments at 5; Louisiana and
Mississippi Commissions November 21 ANOPR Comments at 6; Nebraska Board
November 21 ANOPR Comments at 1-2; South Dakota Commission November 21
ANOPR Comments at 5; SPP TOs April 6 ANOPR Comments at 2.
32 Kansas Commission November 21 ANOPR Comments at 11-12; Missouri
Commission November 21 ANOPR Comments at 14; Oklahoma State Entities November 21
ANOPR Comments at 3, 9; State Entities November 21 ANOPR Comments at 7-8.
33 Kansas Commission November 21 ANOPR Comments at 12; Missouri
Commission November 21 ANOPR Comments at 14; Oklahoma State Entities November 21
ANOPR Comments at 3; State Entities November 21 ANOPR Comments at 7-8.
34 Oklahoma State Entities November 21 ANOPR Comments at 9; State Entities
November 21 ANOPR Comments at 8.
35 Missouri Commission November 21 ANOPR Comments at 14.
36 Antora May 18 ANOPR Comments at 6-7.
37 See, e.g., AI Supply Chain Alliance November 21 ANOPR Comments at 2;
Calibrant November 21 ANOPR Comments at 1-3; CEBA November 21 ANOPR Comments
at 9-11; Constellation November 21 ANOPR Comments at 6; DCC November 21 ANOPR
Comments at 3-4; ECA November 21 ANOPR Comments at 7-11; EPSA November 21
ANOPR Comments at 4-6; Infrastructure Masons December 5 ANOPR Comments at 4-7;
Microsoft November 21 ANOPR Comments at 9-10; National Grid November 21 ANOPR
Comments at 7; ODEC December 5 ANOPR Comments at 2-4; R Street November 21
ANOPR Comments at 3; Switch December 5 ANOPR Comments at 3; Tract November 21
ANOPR Comments at 5; Vantage November 21 ANOPR Comments at 5-6; Vistra
December 5 ANOPR Comments at 1-2.
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There is also broad support for rules that help to ensure that other transmission customers
are not unfairly burdened with additional costs or reliability impacts as large and co-
located loads interconnect to the transmission system.38 In addition, many ANOPR
commenters highlighted the need to efficiently integrate large loads, particularly data
centers, to support national security priorities and economic development.39
B.
Recent Proceedings Addressing Large and Co-Located Loads
Over the past year, the Commission has begun to address, both sua sponte and in
response to complaints and FPA section 20540 filings, the growing use of co-location
arrangements.41 The Commission’s orders in those proceedings have addressed the need
for clear and consistent tariff provisions regarding the rates, terms, and conditions of
service that apply to co-location arrangements and for transmission services that reflect
Eligible Customers taking transmission service on behalf of co-located loads and load
with behind the meter generation that are willing and able to limit their energy
withdrawals from the transmission system under certain conditions. Several other
Commission proceedings have addressed the challenges of integrating large loads onto
the transmission system, including the need for clear and consistent tariff provisions
regarding the provision of transmission service to Eligible Customers on behalf of large
loads and for interconnection customers serving electrically proximate large load. As
explained below, these proceedings provide examples that will help to ensure that
38 See, e.g., APPA November 21 ANOPR Comments at 6; Buckeye November 21
ANOPR Comments at 17; Exelon November 21 ANOPR Comments at 10; Kansas
Commission November 21 ANOPR at 12; NCSL November 21 ANOPR Comments at 1;
NRECA November 21 ANOPR Comments at 8-9; NY UIU November 21 ANOPR at 3;
OCC November 21 ANOPR Comments at 9; Oklo December 5 ANOPR Comments at 3;
Southeast PIOs December 5 ANOPR Comments 11-15; State Entities November 21
ANOPR Comments at 7-8; Tri-State November 21 ANOPR Comments at 8; UCS
November 21 ANOPR Comments at 9-11; U.S. Representatives November 21 ANOPR
Comments at 1.
39 See, e.g., AI Supply Chain Alliance November 21 ANOPR Comments at 2;
DCC November 21 ANOPR Comments at 3; ECA November 21 ANOPR Comments
at 6; Geronimo November 21 ANOPR Comments at 1-2; Google November 21 ANOPR
Comments at 2-3; Verrus December 5 ANOPR Comments at 2.
40 16 U.S.C. § 824d.
41 See PJM Show Cause Order, 190 FERC ¶ 61,115; PJM Co-Location Order,
193 FERC ¶ 61,217, order on reh’g, PJM Co-Location Rehearing Order, 195 FERC ¶
61,209 (2026); SPP HILL Order, 194 FERC ¶ 61,031; SPP CHILLS Order, 195 FERC ¶
61,196.
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jurisdictional transmission service is provided in a manner that is just and reasonable and
maintains reliability as large loads are integrated onto the transmission system
and co-location arrangements become more common. It is in this context, and in
recognition of SPP’s recent reforms to implement a new process for studying requests
for Eligible Customers taking transmission service on behalf of large loads and a new
conditional, non-firm transmission service for Eligible Customers taking transmission
service on behalf of large loads, that the Commission now considers whether SPP’s Tariff
remains just and reasonable.
1.
PJM Co-Location Proceedings
On February 20, 2025, the Commission initiated a show cause proceeding
against PJM and the PJM transmission owners regarding the lack of tariff provisions
addressing with sufficient clarity or consistency the rates, terms, and conditions of service
that apply to co-location arrangements.42 The Commission explained when initiating
that proceeding that the absence of such provisions may leave entities unable to
determine what steps they can or must take to effectuate co-location arrangements of
various configurations and how to do so in a manner that is just and reasonable.43 On
December 18, 2025, the Commission found that PJM’s tariff was indeed unjust and
unreasonable because it does not contain provisions addressing with sufficient clarity
or consistency the rates, terms, and conditions of service that apply to interconnection
customers serving co-located load and Eligible Customers taking transmission service on
behalf of co-located load.44
Specifically, the Commission found that the PJM tariff was unjust and unreasonable
because there is a lack of sufficient clarity or consistency as to the rates, terms, and
conditions of service that apply to interconnection customers serving co-located load.45
The Commission also found that PJM’s tariff was unjust and unreasonable because it does
not include transmission services that reflect Eligible Customers taking transmission
service on behalf of co-located loads that are willing and able to limit their energy
42 See PJM Show Cause Order, 190 FERC ¶ 61,115.
43 Id. P 74. The PJM Show Cause Order defined co-located load as a
“configuration [that] refers to end-use customer load that is physically connected to the
facilities of an existing or planned Customer Facility on the Interconnection Customer’s
side of the Point of Interconnection (‘POI’) to the PJM Transmission System.” Id. P 3
n.4.
44 PJM Co-Location Order, 193 FERC ¶ 61,217.
45 Id. P 176.
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withdrawals from the transmission system under certain conditions.46 Additionally,
the Commission found that PJM’s behind the meter generation rules were no longer just
and reasonable.47 The Commission directed PJM to file a compliance filing to revise its
tariff: (1) to set forth specific terms and conditions that an interconnection customer in
PJM seeking to serve co-located load must follow in order to effectuate a co-location
arrangement;48 (2) to require that the Eligible Customer taking transmission service on
behalf of co-located load takes one of three transmission services: (a) network integration
transmission service (NITS) or a new interim, non-firm transmission service while
Network Upgrades to provide full NITS service are constructed (interim NITS); (b) a new
firm contract demand transmission service; or (c) a new non-firm contract demand
transmission service;49 (3) to revise the behind the meter generation rules and implement a
transition process for existing behind the meter generation participants;50 and (4) to make
several clarifications on how certain aspects of PJM’s generator interconnection process
apply to interconnection customers seeking to serve co-located load.51
On June 18, 2026, concurrently with the instant order, the Commission issued an
order modifying the discussion in the PJM Co-Location Order and setting aside the order
in part; accepting in part and rejecting in part PJM’s compliance filing, and directing a
further compliance filing; and establishing as just and reasonable certain rates, terms, and
conditions for the new transmission services (i.e., interim NITS, firm contract demand
transmission service, and non-firm contract demand transmission service).52
46 Id. P 177.
47 Id. P 179.
48 Id. PP 187-192, 225-230.
49 Id. PP 193-218. The Commission also established a paper hearing to determine
the just and reasonable rates, terms, and conditions for the new transmission services. Id.
PP 219-20.
50 Id. PP 221-224.
51 Id. PP 161, 231-236.
52 PJM Co-Location Rehearing Order, 195 FERC ¶ 61,209 at PP 7-9. PJM’s
compliance filing proposing revisions in response to the Commission’s directives
regarding clarification that certain aspects of PJM’s generator interconnection process
apply to interconnection customers seeking to serve co-located load was accepted in
part on April 16, 2026. PJM Interconnection, L.L.C., 195 FERC ¶ 61,030 (2026).
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2.
SPP High Impact Large Load and High Impact Large Load
Generation Assessment Processes
On January 14, 2026, the Commission accepted revisions to SPP’s Tariff to add a
high impact large load (HILL) study process and High Impact Large Load Generation
Assessment (HILLGA) process.53 SPP’s Tariff revisions established HILLs as a new
category of load;54 imposed enhanced study requirements to enable SPP to assess the
HILL’s reliability impacts on the transmission system;55 and created additional, ongoing
operational requirements for transmission customers serving HILLs to ensure continued
reliability of the transmission system.56 The Tariff revisions also established the
53 SPP HILL Order, 194 FERC ¶ 61,031 at PP 61, 64.
54 SPP defines a HILL as:
A new commercial or industrial load, or increase in
commercial or industrial load, at a single site connected
through one or more shared Points of Interconnection (POIs)
or delivery points, where such load is either (1) 10 MW or
more if connected to the Transmission System at a voltage
level less than or equal to 69 [kilovolts (kV)]; or (2) 50 MW
or more if connected to the Transmission System at a voltage
level greater than 69 kV. An Electric Storage Resource is not
considered a HILL.
SPP Tariff, pt. I, § 1 (Definitions H) (1.0.0).
55 SPP HILL Order, 194 FERC ¶ 61,031 at PP 13-17 (explaining that the HILL
process requires up to three additional studies beyond those required of all transmission
service requests for transmission customers requesting to add or modify a delivery point
associated with a HILL, including a HILL delivery point study, HILL supplemental load
connection study, and potential supplemental Electromagnetic Transient study).
56 Id. P 18 (explaining that market participants registering a HILL must (1) follow
all nonconforming load requirements (e.g., additional load forecast requirements); (2)
provide load data via telemetry in real time; (3) have remote capability to disconnect the
load from the transmission system made available to the transmission operator; (4) have
an up/down ramp rate not exceeding 20 MW per minute unless otherwise directed; (5)
include additional information with registration; and (6) not have withdrawals from the
transmission system without appropriate transmission service); id. P 19 (explaining that
the transmission owner, at the transmission customer’s expense, must install a phasor
measurement unit or similar equipment); id. PP 20-21 (explaining that the transmission
customer will be required to comply with ride-through requirement guidelines).
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HILLGA process, a new generator interconnection service and related interconnection
process to facilitate the prompt interconnection of generating facilities that are
specifically identified for, and limited to, serving a HILL and are located no more
than two substations away from the HILL.57
The Commission stated that SPP demonstrated that the “unprecedented growth in
large loads in the SPP region presents significant and unique operational and planning
challenges.”58 The Commission found that SPP demonstrated that its proposed HILL
process was a just and reasonable approach for integrating transmission customers’ new
large loads onto SPP’s transmission system in a reliable manner.59 The Commission
found that it was reasonable to impose additional study requirements and other proposed
requirements given the unique operating characteristics of HILLs. The Commission
further found that the proposed study requirements would ensure the reliable integration
of the transmission customer’s HILLs onto SPP’s transmission system and would provide
SPP with information about their impact on SPP’s transmission system, including the
transmission system’s ability to withstand and control disturbances by the HILL at the
point of interconnection.60 In addition, the Commission found that the proposed study
deposits would discourage speculative HILL study requests.61 Finally, the Commission
concluded that the proposed ongoing reliability requirements would allow SPP to
maintain reliable operation of its transmission system by increasing SPP’s visibility,
providing necessary data, and imposing real-time operational safeguards for HILLs.62 In
accepting HILLGA, the Commission found that “SPP’s HILLGA process reasonably
57 Id. P 27 (explaining that, under the HILLGA process, SPP proposes to
study HILLGA requests to determine whether any network upgrades are needed to
accommodate the generating facility’s injection to the local area); id. P 32 (explaining
that SPP will grant HILLGA customers a new type of interconnection service, load
limited resource interconnection service, which grants limited interconnection service
solely to serve the associated HILL).
58 Id. P 60.
59 Id. P 61.
60 Id. P 62.
61 For the HILL delivery point study, SPP required a $10,000 non-refundable
application fee and a $100,000 study deposit, with an additional $200,000 study deposit
if an Electromagnetic Transient study was also required. Id. P 15. For the HILL
supplemental load connection study, SPP allows the host transmission owner to require a
$25,000 study deposit. Id. P 16.
62 Id. P 63.
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provides a flexible, expedited, and separate serial interconnection process that will
facilitate the prompt interconnection of generating facilities that are limited to serving a
HILL in the same local area.”63
3.
SPP Conditional High Impact Large Load Service
On June 5, 2026, the Commission accepted revisions to SPP’s Tariff to add a
new type of non-firm transmission service, conditional high impact large load service
(CHILLS).64 CHILLS allows transmission customers serving HILLs to reliably receive
transfers of energy until sufficient designated resources and/or network upgrades are
in place to support long-term, firm transmission service.65 CHILLS is an as-available
transmission service that will transfer energy to designated points of delivery to serve the
portion of a HILL eligible to receive CHILLS, subject to curtailment and interruption.66
CHILLS has a maximum term of seven years, which is intended to incentivize
transmission customers seeking CHILLS to obtain the designated resources and/or
complete the network upgrades needed to procure long-term firm transmission service
through existing Tariff processes.67
The Commission found that SPP had shown that unprecedented growth in
large loads presents significant and unique operational and planning challenges.68 The
Commission also found that SPP’s ability to add HILLs to its transmission system in a
timely manner may be limited due to delays in obtaining sufficient designated resources
and completing network upgrades needed to provide long-term firm transmission service
to such load.69 The Commission concluded that CHILLS is a just and reasonable and not
unduly discriminatory or preferential approach to addressing the need to expeditiously
63 Id. P 64.
64 SPP CHILLS Order, 195 FERC ¶ 61,196 at P 1.
65 Id. P 7.
66 Id. PP 9-10.
67 Id. P 9.
68 Id. P 84.
69 Id.
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interconnect and provide transmission service to new HILLs, while maintaining the
reliable operation of SPP’s transmission system.70
II.
SPP’s Existing Processes
A.
Existing Tariff Processes
SPP evaluates new Long-Term Firm Point-to-Point Transmission Service and new
NITS requests by Eligible Customers through Attachment Z1 (Aggregate Transmission
Service Study Procedures and Cost Allocation and Recovery for Service Upgrades),71
and existing transmission customers’ requests to add or modify delivery point facilities
associated with load additions under Attachments AQ (Delivery Point Assessment
Process) and AX (Provisional Load Process) of SPP’s Tariff.72 SPP studies the impacts
of requested delivery point additions or modifications on the transmission system and
determines what, if any, Network Upgrades are required to accommodate the requests.73
Network Upgrades identified in the Attachment AQ process are Base Plan Funded,
meaning that the costs of these Network Upgrades are allocated through rolled-in rates
among all SPP transmission customers pursuant to the criteria in Attachment J of the
Tariff.74
70 Id.
71 SPP Tariff, attach. Z1 (Aggregate Transmission Service Study) (0.0.0).
72 Id. attach. AQ (Delivery Point Assessment Process) (1.0.0); id. attach. AX
(Provisional Load Process) (0.0.0).
73 A transmission customer can use a combination of the Attachment AQ and
Attachment AX processes if it has neither sufficient designated resources nor planned
generation to serve both its existing load and a new HILL. Id. attach. BA (High Impact
Large Load (0.0.0), § 2.1.2 (0.1.0).
74 SPP Tariff, attach. J (Recovery of Costs Associated with New Facilities), § III.A
(21.0.0); Sw. Power Pool, Inc., 193 FERC ¶ 61,244 (2025). Specifically, using SPP’s
Highway/Byway cost allocation method, SPP allocates the costs of Base Plan Upgrades
to transmission customers in individual SPP pricing zones, subregions, the entire SPP
region, or a combination thereof, based on the voltage level and location of the specific
facility. Specifically, SPP allocates costs for transmission facilities as follows: (1) for
facilities at 300 kV or above (Highway facilities), 100% of the costs are allocated on a
regional, postage stamp basis based on load ratio share; (2) for facilities above 100 kV
and below 300 kV (Byway facilities), SPP allocates 33% of the costs on a regional,
postage stamp basis and 67% of the costs to the subregion in which the facilities are
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Attachment AX of SPP’s Tariff includes a Provisional Load Process to allow
transmission customers to request studies of new load interconnection requests when
transmission customers do not have sufficient Designated Resources to serve their load,
provided that the transmission customer has planned generation to serve the load additions.75
Network Upgrades identified in the Provisional Load Process will be directly assigned to
the transmission customer until the transmission customer’s transmission service agreement
includes a generating facility designated to serve the load, at which point the remaining cost
of the Network Upgrades will be Base Plan Funded.76
As described above, SPP’s Tariff has been amended to address the integration of
large loads through the HILL study process, which includes enhanced study requirements
beyond what is required under the Attachments AQ and AX processes.77 SPP also
established a HILLGA process that allows for expedited review of generating facilities
that are designated to serve a HILL and interconnected in the same local area as the HILL
(i.e., within a certain number of substations and transmission line segments from the
HILL).78 As SPP TOs explain, the HILL and HILLGA processes will treat large loads
and any co-located generation79 as distinct for tariff and metering purposes, assess
transmission service based on the large load’s gross withdrawals, and ensure that the
transmission system is planned and paid for to meet a large load’s full reliability needs.80
Neither the HILL nor HILLGA process will result in transmission service for a
new generating facility to the HILL. Eligible Customers (including Eligible Customers
located; and (3) for facilities at 100 kV or below, SPP allocates all costs to the zone
where the facilities are located.
75 See Sw. Power Pool Inc., 193 FERC ¶ 61,018 (2025); see also SPP Tariff,
attach. AX.
76 SPP Tariff, attach. J, § V(F) (6.0.0).
77 See supra PP 15-16. SPP TOs explain that under the HILL proposal, the load
and generating facility may be located at the same point of interconnection. SPP TOs
November 21 ANOPR Comments at 5.
78 See SPP HILL Order, 194 FERC ¶ 61,031 at PP 26, 64-66; see also SPP Tariff,
attach. BB (High Impact Large Load Generation Assessment) (0.0.0), § 3.1.3(5)(a).
79 We reiterate that SPP’s Tariff does not have a formal definition of “co-located
load” or “co-location arrangement.” As noted, for the purposes of HILLGA, the
generating facility only must be in close electrical proximity.
80 SPP TOs November 21 ANOPR Comments at 7.
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that are also HILLGA interconnection customers) must request transmission service,
which may be short-term or long-term Firm Point-to-Point Transmission Service,
Non-Firm Point-to-Point Transmission Service, or NITS.81 Additionally, as discussed
above, the Commission recently accepted SPP’s CHILLS, a new conditional, non-firm
transmission service option for Eligible Customers taking transmission service on behalf
of large loads, including co-located large loads, that may be taken for up to seven years
until the Eligible Customer obtains sufficient Designated Resources to support NITS or
Firm Point-to-Point Transmission Service or the required Network Upgrades for NITS or
Point-to-Point Transmission Service are completed.82
For long-term Firm Point-to-Point Transmission Service requests or requests for
new NITS, SPP conducts an Aggregate Transmission Service Study under Attachment Z1
of the Tariff to determine any necessary transmission facility additions, expansions, or
upgrades the relevant transmission customer seeking transmission service is responsible
for funding to ensure that the transmission system and transmission service to existing
customers is not degraded or impaired.83
Network Upgrades identified through the Attachment AQ, AX,84 and Z1 processes
are evaluated in SPP’s transmission planning process and included in SPP’s Transmission
Expansion Plan.85 SPP explains that as it relates to the cost responsibility of Network
Upgrades, section 7.2 of the SPP Bylaws delegate primary responsibility for determining
regional proposals for cost allocation to the SPP Regional State Committee.86
81 See SPP Tariff, pt. II, §§ 17.1 (Application) (1.0.0), 18.1 (Application) (0.0.0);
id. pt. III, § 29.1 (Condition Precedent for Receiving Service) (0.0.0).
82 SPP CHILLS Order, 195 FERC ¶ 61,196 at PP 7, 9; see SPP Tariff, pt. VII
(Conditional High Impact Large Load Transmission Service) (0.0.0); id. schedule 15
(Conditional High Impact Large Load Service) (0.0.0).
83 SPP Tariff, attach. Z1, § 1 (Introduction) (1.0.0).
84 Specifically, Network Upgrades are included in SPP’s Transmission Expansion
Plan once the loads seeking Provisional Load Services in Attachment AX have a
generating facility designated to serve the load.
85 See SPP Tariff, attach. O, §§ III (The Integrated Transmission Planning
Assessment) (14.0.0), II.5.b (Roles and Responsibilities), V (The SPP Transmission
Expansion Plan Report) (10.0.0), V.3.c.
86 SPP November 21 ANOPR Comments at 15.
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SPP processes generator interconnection requests under Attachment V (Generator
Interconnection Procedures (GIP)) of its Tariff.87 SPP’s generator interconnection study
process, the Definitive Interconnection System Impact Study (DISIS), is divided into a
two-phased system impact study in DISIS Phase One and DISIS Phase Two, which is
followed by an interconnection facilities study.88 The system impact study is a cluster
study that evaluates the impact of each proposed interconnection request on the reliability
of SPP’s transmission system. DISIS Phase One involves a cluster study consisting of a
steady-state powerflow analysis and calculation of the short-circuit ratio. DISIS Phase
Two involves a cluster study consisting of a short circuit analysis, stability analysis, short
circuit ratio critical clearing time screening, and steady state powerflow analysis.
Pursuant to the Tariff, an interconnection customer may request, and SPP
may provide, interim interconnection service prior to the completion of requisite
Interconnection Facilities, Network Upgrades, Distribution Upgrades, or System
Protection Facilities.89 The scope of the interim availability interconnection system
impact study maintains the scope and procedures of the DISIS with the exception that
certain previous queued interconnection requests may not be included in the interim
availability interconnection system impact study.90 Under the Tariff, an interconnection
customer may also request surplus interconnection service for an unneeded portion
of interconnection service capacity at an existing point of interconnection substation.91
The surplus interconnection service impact study consists of reactive power, short
circuit/fault duty, stability analyses, and any other appropriate studies, and steady-state
(thermal/voltage) analyses may be performed by SPP as necessary to ensure that all
required reliability conditions are studied.
B.
Recent Stakeholder Proceedings in SPP
SPP is also developing another transmission service, known as Price Adaptive
Load Service (PALS), to provide transmission service that will enable the connection of
87 SPP Tariff, attach. V (Generator Interconnection Procedures (GIP)) (12.0.0).
88 Id. § 8 (28.0.0), §§ 8.4 (Scope of Definitive Interconnection System Impact
Study and Priority System Impact Stud, 8.10 (Scope of Interconnection Facilities Study),
8.11 (Interconnection Facilities Study Procedures).
89 Id. § 11 (Generator Interconnection Agreement) (9.0.0), § 11.A (Interim
Generator Interconnection Agreement (Interim GIA)).
90 Id. § 11 (Generator Interconnection Agreement) (9.0.0), § 11A.2.4.1.
91 Id. § 3.3 (Utilization of Surplus Interconnection Service) (30.0.0).
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new loads.92 SPP states that PALS is a flexible, non-firm transmission service option that
will allow loads that are price sensitive and flexible (i.e., do not need to be served from
the transmission system on a firm basis) to vary their participation based on the price of
energy.
We are encouraged by SPP’s stakeholder efforts, and the proactive steps that SPP
has already taken to enhance its study processes and develop a new transmission service.
However, we conclude that this FPA section 206 proceeding is necessary to generate
additional reforms in SPP that are sufficiently timely and comprehensive to address
the concerns we today identify. As such, and as the Commission explained in the
April Order Regarding Intent to Act, we find that the Commission must now take further
action to ensure that SPP promptly proposes revisions to ensure that its Tariff remains
just and reasonable.
III.
Discussion
Based on the discussion below, pursuant section 206 of the FPA, we direct SPP
and the Transmission Owners, within 60 days of the date of this order, to either:
(1) show cause as to why the Tariff remains just and reasonable and not unduly
discriminatory or preferential without provisions that:
(a) require the evaluation of alternative transmission technologies, and
memorialize ongoing operational requirements in a transmission service
agreement between SPP and the transmission customer taking transmission
service on behalf of a large load;
(b) address additional transparency concerning the Network Upgrade costs
to provide transmission service to Eligible Customers on behalf of large
loads, establish a pro forma cost recovery agreement between SPP, the
relevant transmission owner, and Eligible Customer taking transmission
service on behalf of the large load to mitigate the risk of cost shifting
among transmission customers, and establish a mechanism to ensure
such payments are appropriately credited toward transmission owners’
transmission revenue requirements consistent with the Commission’s
cost-of-service regulations;
(c) address the rates, terms, and conditions of service that apply to
co-location arrangements; and
92 SPP November 21 ANOPR Comments at 6-7.
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(d) address transmission services that reflect Eligible Customers taking
transmission service on behalf of co-located loads, load with behind the
meter generation, and flexible large loads that are willing and able to limit
their use of the transmission system under certain conditions; or
(2) explain what changes to the Tariff would remedy the identified concerns if
the Commission were to determine that the Tariff has in fact become unjust and
unreasonable or unduly discriminatory or preferential and, therefore, proceeds to
establish a replacement Tariff.
We also direct SPP to submit, within 30 days of the date of issuance of this order,
an informational report on how SPP intends to ensure that adequate generation will be
available to serve existing and new large loads.
Interested entities may respond within 30 days of SPP’s and the Transmission
Owners’ filings, addressing either or both of: (1) whether the existing Tariff remains just
and reasonable and not unduly discriminatory or preferential; and (2) if not, what changes
to the Tariff should be implemented as replacement rates.
We recognize that SPP and/or the Transmission Owners (to the extent the matters
addressed herein implicate aspects of the Tariff over which they have the filing rights)
may elect to address some or all of the issues discussed in this order by proposing
revisions to the Tariff pursuant to their applicable FPA section 205 filing rights. We
strongly encourage this. Although both the Secretary’s ANOPR and our own Order
Regarding Intent to Act expressly recognized (and indeed encouraged) that possibility,93
no such filings were received from SPP by the Commission prior to the issuance of
this order. Should SPP and/or the Transmission Owners elect to make such filings in
response to this order, those filings should state explicitly that the proposals are being
submitted under FPA section 205. Should SPP and/or the Transmission Owners submit a
filing under FPA section 205, they should also explain which of the Commission’s above
directives their filing addresses and how it resolves them. Additionally, any such filing
should provide a reasoned explanation for how the proposal will avoid disrupting existing
commercial arrangements and clearly identify a reasonable effective date that
accommodates such existing commercial arrangements.
The Commission will consider requests from SPP and/or the Transmission Owners
to hold, for up to 90 days, all or certain aspects of this FPA section 206 proceeding in
abeyance, including the deadline to respond to this order. Any such abeyance, which will
begin as of the deadline to respond to this order, would be considered to provide SPP and
the Transmission Owners time while they work through the stakeholder processes to
develop FPA section 205 filings to revise the Tariff to address the issues raised in this
93 See ANOPR at P 32; Order Regarding Intent to Act, 195 FERC ¶ 61,045 at P 5.
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order. Requests for a full or partial abeyance94 should be submitted prior to the deadline
to respond to this order, specifically within 45 days of issuance of this order, to allow
time for the Commission to act on the abeyance request. We emphasize that we will
not grant such abeyances reflexively, that any abeyance will be limited to 90 days,
and that we will look with great disfavor toward requests to extend the abeyance period.
We anticipate that successful abeyance requests, if any, will include both (1) a robust
description of the content of a potential future filing under FPA section 205 and
(2) a reasoned and specific explanation of when such a filing is expected to be made.
In cases where, as here, the Commission institutes a section 206 investigation on
its own motion, section 206(b) of the FPA requires that the Commission establish a
refund effective date that is no earlier than the date of the publication by the Commission
of notice of its intention to initiate such proceeding nor later than five months after the
publication date. In such cases, in order to give maximum protection to customers, and
consistent with our precedent, we have historically tended to establish the section 206
refund effective date at the earliest date allowed by section 206, and we do so here as
well.95 That date is the date of publication of notice of initiation of this proceeding in
the Federal Register.
A.
Transmission Service to Eligible Customers on Behalf of Large Loads
As noted above, the Commission recently approved revisions to SPP’s Tariff that
established an enhanced process for SPP to study the provision of transmission service to
Eligible Customers on behalf of HILLs and help to ensure that integration of HILLs onto
the transmission system does not impair reliability. In that order, the Commission found
that the HILL process was a just and reasonable approach for integrating transmission
customers’ new large loads onto SPP’s transmission system in a reliable manner.96
However, we preliminarily find that SPP’s Tariff appears to be unjust and unreasonable
because it lacks (1) clear and consistent provisions requiring the evaluation of alternative
transmission technologies, and (2) pro forma provisions in a transmission service
agreement between SPP and the transmission customer taking transmission service on
behalf of the HILL to memorialize ongoing operational requirements in the Tariff.
94 A partial abeyance may be appropriate to the extent SPP is developing FPA
section 205 filings in response to only a subset of the directives in this order. For any
remaining directives, we expect a response to this order within the 60-day deadline set
forth herein.
95 See, e.g., Idaho Power Co., 145 FERC ¶ 61,122 (2013); Canal Elec. Co.,
46 FERC ¶ 61,153, order on reh’g, 47 FERC ¶ 61,275 (1989).
96 SPP HILL Order, 194 FERC ¶ 61,031 at P 61.
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We direct SPP and the Transmission Owners, to the extent the matters addressed
herein implicate aspects of the Tariff over which they have the filing rights, to explain
whether the Tariff remains just and reasonable without provisions requiring the
evaluation of alternative transmission technologies and pro forma provisions in a
transmission service agreement memorializing ongoing operational requirements in a
transmission service agreement between SPP and the transmission customer, or propose
Tariff revisions to address these concerns.
1.
Jurisdiction
At the outset, we clarify the principles relating to the Commission’s jurisdiction
over the matters relevant to the integration of large loads onto the transmission system
and the impacts of large loads on the transmission system. We recognize that rates,
terms, and conditions associated with the addition of and service to large loads implicate
both federal and state interests. We also recognize that resolution of issues related to
large load additions will require the involvement of both federal and state actors,
including the Commission, state public utility commissions, and other state and local
entities. We are encouraged by efforts made at the state level to address issues related to
large load additions that fall within state jurisdiction.97
As discussed below, however, certain aspects of the process for integrating large
loads onto the transmission system fall squarely within the Commission’s exclusive
jurisdiction. Specifically, we find that it is within the Commission’s exclusive authority
to ensure that transmission provider and/or transmission owner tariffs include sufficiently
clear and consistent provisions governing how transmission service to Eligible Customers
on behalf of large loads interconnecting to the transmission system will be studied,
including whether new or upgraded transmission facilities are necessary to provide
the requested transmission service. The Commission has jurisdiction over the study
process for transmission service to both Eligible Customers on behalf of large loads
and unbundled retail transmission service to end-use large load customers where,
pursuant to state law or a public utility’s voluntary offer of such service, the large load is
an Eligible Customer under the transmission provider and/or transmission owner tariffs.98
97 See generally NARUC April 14 ANOPR Comments (highlighting action taken
by state public utility commissions related to large loads).
98 Under the pro forma OATT, Eligible Customers include end-use customers
seeking unbundled retail transmission service, pursuant to state law or public utility’s
voluntary offer of such service. Pro forma OATT, § 1.12 (Definitions – Eligible
Customer); see also SPP Tariff, pt. I, § 1 (Definitions E) (6.1.0).
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The Commission is a creature of statute and has jurisdiction over only
those matters that Congress has given it the authority to regulate.99 That authority
includes jurisdiction over the wholesale sale and transmission of electricity in interstate
commerce, including all facilities used for such sale and transmission.100 As relevant
here, the Commission must ensure that the rates, charges, and classifications for such
transmission of electricity—as well as the practices directly affecting such transmission
of electricity—are just and reasonable and not unduly discriminatory or preferential.101
The Supreme Court has held that the Commission’s authority over interstate transmission
is not limited to wholesale transmission service and that the Commission has authority
over unbundled retail transmission service.102 As part of its transmission authority, the
Commission has exercised jurisdiction over the terms of certain interconnections to the
transmission system as an element of transmission service,103 including the
interconnection of wholesale load to the transmission system.104
As applied to large load additions to the transmission system, these principles
mean that the Commission has exclusive jurisdiction over the rates, terms, and conditions
of interstate transmission service to Eligible Customers on behalf of large loads
connecting to the transmission system, and the practices directly affecting the provision
of such interstate transmission of electricity. An essential component of providing
such transmission service is the process by which the transmission provider and/or
transmission owner evaluates (1) whether it can provide the requested transmission
service and (2) the impact that providing such transmission service will have on the
jurisdictional transmission system, including determining whether any new or upgraded
99 Atl. City Elec. Co. v. FERC, 295 F.3d 1, 8 (D.C. Cir. 2002).
100 16 U.S.C. § 824(b)(1).
101 Id. §§ 824d, 824e; see FERC v. Elec. Power Supply Ass’n, 577 U.S. 260, 278
(2016) (EPSA) (approving “a common-sense construction of the FPA’s language,
limiting FERC’s ‘affecting’ jurisdiction to rules or practices that ‘directly affect the
wholesale rate’” (cleaned up)).
102 New York v. FERC, 535 U.S. 1, 17, 19-20 (2002) (upholding the Commission’s
exercise of jurisdiction over unbundled retail transmission service).
103 Tenn. Power Co., 90 FERC ¶ 61,238, at 61,761 (2000) (Tennessee Power),
order denying reh’g, 91 FERC ¶ 61,271 (2000); Standardization of Generator
Interconnection Agreements & Procs., Order No. 2003, 104 FERC ¶ 61,103, at P 9
(2003); see also Laguna Irrigation Dist., 91 FERC ¶ 61,340, at 62,152 (2000).
104 Pac. Gas & Elec. Co., 109 FERC ¶ 61,392, at P 37 (2004); Pac. Gas & Elec.
Co., 115 FERC ¶ 61,193, at PP 36-38 (2006).
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transmission facilities are needed to provide transmission service while maintaining
reliable operation of the transmission system. This transmission service study process
determines what Network Upgrades are needed to provide transmission service to
Eligible Customers on behalf of large loads, the costs of which are included in
transmission rates. As such, this study process directly affects Commission-jurisdictional
transmission rates.105 The Commission has exclusive authority to ensure that the process
to study the provision of transmission service to Eligible Customers is just and reasonable
and not unduly discriminatory or preferential. We therefore find that we have authority
to ensure that tariffs include provisions that clearly and consistently address the study
process for the provision of transmission service to Eligible Customers on behalf
of large loads, including the unique impacts that providing transmission service to
Eligible Customers on behalf of large loads may have on the transmission system.
At the same time, we continue to recognize that the FPA expressly reserves
to states the authority over any other sale of electric energy, including retail sales
and wholesale sales not in interstate commerce (such as wholesale sales within the
Electric Reliability Council of Texas region), as well as facilities used for the generation
and distribution of electricity.106 As such, we recognize that states will continue to
regulate: (1) the specific terms of retail sales to large load;107 (2) which entities may
make retail sales within their borders, including which entities are legally permitted to
provide electricity to retail large load customers;108 and (3) any siting decisions and
construction associated with the large load project.109 Nothing in this order is intended to
intrude upon state authority over retail service to large loads.
105 Cf. Transmission Plan. & Cost Allocation by Transmission Owning &
Operating Pub. Utils., Order No. 1000, 136 FERC ¶ 61,051, at P 112 (2011) (“It is
through the transmission planning process that public utility transmission providers
determine which transmission facilities will more efficiently or cost-effectively meet
the needs of the region, the development of which directly impacts the rates, terms and
conditions of jurisdictional service.”).
106 16 U.S.C. § 824(b)(1); see Dayton Power & Light Co. v. FERC, 126 F.4th 1107,
1129 (6th Cir. 2025).
107 See EPSA, 577 U.S. at 279-80 (recognizing state authority over retail electricity
sales); New York v. FERC, 535 U.S. at 28 (same).
108 PJM Show Cause Order, 190 FERC ¶ 61,115 at PP 68-69.
109 See, e.g., Citizens Action Coal. of Ind., Inc. v. FERC, 125 F.4th 229, 238
(D.C. Cir. 2025) (citing 16 U.S.C. § 824(b)(1)) (recognizing state authority over
generation resource mix, including through their siting authority); Order No. 1000,
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In sum, we today exercise our authority to ensure that the process by which
jurisdictional transmission providers and/or transmission owners will study the provision
of jurisdictional transmission service to Eligible Customers on behalf of large loads
interconnecting to the transmission system, including where, as allowed by state law or
a public utility’s voluntary offer of such service, an end-use large load seeks unbundled
retail transmission service, is just and reasonable and not unduly discriminatory or
preferential. Pursuant to that authority, we find that SPP’s Tariff appears to be unjust
and unreasonable or unduly discriminatory or preferential because it lacks sufficiently
clear and consistent provisions regarding the study process related to the provision of
transmission service to Eligible Customers on behalf of large loads. We need not
comprehensively address the Commission’s jurisdiction over other aspects of the addition
of large loads to the transmission system at this time.
2.
Tariff Provisions
As explained above, the HILL process addresses how SPP and/or the
Transmission Owners will study the provision of transmission service to Eligible
Customers on behalf of large loads. In accepting the HILL process, the Commission
found that SPP’s study requirements would ensure the reliable integration of the
transmission customer’s HILL onto SPP’s transmission system and would provide
SPP with information about its impact on SPP’s transmission system, including the
transmission system’s ability to withstand and control disturbances by the HILL at
the point of interconnection.110 However, the HILL process lacks two components,
provisions requiring the evaluation of alternative transmission technologies and
pro forma provisions in a transmission service agreement memorializing ongoing
operational requirements, without which we are concerned that SPP’s Tariff may be
unjust and unreasonable, or unduly discriminatory or preferential.
First, we preliminarily find that SPP’s Tariff appears to be unjust and unreasonable
because it lacks clear and consistent provisions requiring the evaluation of alternative
transmission technologies as potential solutions to accommodate an Eligible Customer’s
request for transmission service on behalf of a large load. Alternative transmission
technologies can add more capacity on existing transmission lines quickly, often within
one to three years.111 Unlike with traditional load growth,112 large load customers often
136 FERC ¶ 61,051 at P 107 (acknowledging state authority over siting, permitting, and
construction of transmission facilities).
110 SPP HILL Order, 194 FERC ¶ 61,031 at P 62.
111 WATT and Advancing Modern Powerlines November 21 ANOPR Comments
at 5-6.
112 See, e.g., SPP HILL Order, 194 FERC ¶ 61,031 at P 7 (explaining that the
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have development timelines requiring interconnection to the transmission system faster
than traditional Network Upgrades can be built, necessitating a sufficient evaluation of
alternative transmission technologies that can more quickly accommodate transmission
service requests from Eligible Customers on behalf of large loads.113 The Commission
has previously recognized that alternative transmission technologies have the potential to
mitigate or defer the need for traditional Network Upgrades and often can be deployed
both more quickly and at lower cost than traditional Network Upgrades, and therefore
failing to consider whether alternative transmission technologies can meet transmission
needs more efficiently or cost-effectively than traditional Network Upgrades has the
potential to render Commission-jurisdictional rates unjust and unreasonable.114 Further, to
HILL proposal was needed in part due to large load customers frequently requesting
transmission service within months rather than years of their intended commercial
operation, straining legacy regulatory frameworks and planning processes originally
designed for slow, incremental, and predictable load growth); see also Commission Staff,
2025 State of the Market Report 8 (Mar. 2026) (“[D]ata centers have characteristics
unlike more traditional loads [including] size, strong desire for faster interconnection, and
potential flexibility.”).
113 Exec. Off. of the President, Winning the Race: America’s AI Action Plan at 1-2,
15 (July 2025), https://www.whitehouse.gov/wp-content/uploads/2025/07/Americas-AI-
Action-Plan.pdf (explaining that accelerated deployment of AI data centers is a critical
matter of national security and international economic competitiveness, and
recommending federal policy action to optimize the existing grid through advanced
grid technologies); WATT and Advancing Modern Powerlines November 21 ANOPR
Comments at 5-8 (“[Alternative transmission technologies’] deployment timelines are
more aligned with the interconnection needs of new large loads, which may only take
1-2 years to construct.”); Industrial Customers November 21 ANOPR Comments at 28
(“Achieving speed-to-power in the near-term, while also protecting customers, will
require the use of GETs, advanced reconductoring, and unlocking all available system
capacity.”); Energy Systems Integration Group, Historical and Modern Large Loads:
Characteristics, Context, and Industry Action to Meet Grid and Customer Needs, at 4
(Mar. 2026), https://www.esig.energy/wp-content/uploads/2026/03/ESIG-Historical-vs-
Modern-Large-Loads-white-paper-2026.pdf (describing the timing mismatch between
how long it takes to build a new data center and how long it takes to plan, permit, and
build transmission).
114 Improvements to Generator Interconnection Procs. & Agreements, Order
No. 2023, 184 FERC ¶ 61,054 at P 1583, order on reh’g, 185 FERC ¶ 61,063 (2023),
order on reh’g, Order No. 2023-A, 186 FERC ¶ 61,199, errata notice, 188 FERC ¶
61,134 (2024); see also Bldg. for the Future Through Elec. Reg’l Transmission Plan. &
Cost Allocation, Order No. 1920, 187 FERC ¶ 61,068 at P 1201, order on reh’g,
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the extent Network Upgrade costs to accommodate an Eligible Customer’s request for
transmission service on behalf of a large load are rolled into a transmission owner’s
transmission revenue requirement, transmission customers other than the Eligible
Customer may bear a portion of those Network Upgrade costs, highlighting the need
for clear and consistent provisions requiring the evaluation of least-cost options like
alternative transmission technologies to mitigate the rate impact on all transmission
customers.
SPP should explain whether the Tariff remains just and reasonable without
provisions that (1) require the evaluation of alternative transmission technologies in
transmission service request studies, using models that are capable of evaluating the
transmission system to accurately account for advanced transmission technologies, in all
instances, without the need for a request from the Eligible Customer seeking transmission
service on behalf of a large load; and (2) if traditional Network Upgrades are selected
instead of alternative transmission technologies, inclusion in the study report to the
Eligible Customer seeking transmission service on behalf of a large load of a sufficiently
clear demonstration of why alternative transmission technologies are not feasible (i.e.,
would not resolve reliability violations identified or meet the relevant planning criteria)
or would not result in lower costs or a faster timeline for accommodating the transmission
service request; or propose Tariff revisions establishing such provisions. This
transparency and informational requirement is warranted for the regulatory scheme we
are establishing for transmission service requests by Eligible Customers on behalf of
large loads given demand from and the expedited development timelines for large load
customers. We underscore that we are not mandating the use of alternative transmission
technologies. To the extent stakeholders believe that specific characteristics of providing
transmission service to Eligible Customers on behalf of large loads warrant requirements
beyond those contemplated here, we seek further briefing.
Second, the HILL process does not include pro forma provisions in a
transmission service agreement between SPP and the transmission customer taking
transmission service on behalf of a HILL that memorialize ongoing operational
requirements. While these requirements are included in the Tariff, we are concerned
that, without such pro forma provisions in a transmission service agreement between
SPP and the transmission customer, SPP may be unable to enforce ongoing operational
requirements for transmission customers taking transmission service on behalf of HILLs.
We therefore preliminarily find that SPP’s Tariff appears to be unjust and unreasonable
because it lacks pro forma provisions in a transmission service agreement between SPP
and the transmission customer memorializing ongoing operational requirements for
transmission customers taking transmission service on behalf of HILLs. SPP should
Order No. 1920-A, 189 FERC ¶ 61,126 (2024), order on reh’g, Order No. 1920-B,
191 FERC ¶ 61,026 (2025).
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explain whether the Tariff remains just and reasonable without such pro forma provisions
in a transmission service agreement, or propose revisions to include pro forma provisions
memorializing the ongoing operational requirements in a transmission service agreement
between SPP and the transmission customer.
B.
Cost Shifting Risk Among Transmission Customers
We next preliminarily find that SPP’s Tariff appears to be unjust and
unreasonable because it lacks adequate mechanisms to mitigate the risk of cost shifting
among transmission customers, which may result in unjust and unreasonable rates
for transmission service. In particular, we are concerned about the apparent lack of
(1) transparency regarding the assignment of Network Upgrades, and their associated
costs, that are needed to provide transmission service to Eligible Customers on behalf
of large loads; and (2) a pro forma cost recovery agreement between SPP, the relevant
transmission owner, and the Eligible Customer taking transmission service on behalf of
large loads that help ensure that Eligible Customers bear the risk and are ultimately
responsible for costs incurred to provide transmission service, including the cost of
Network Upgrades.
We direct SPP and the Transmission Owners, to the extent the matters addressed
herein implicate aspects of the Tariff over which they have the filing rights, to explain
whether the Tariff remains just and reasonable without (1) robust, accurate, and
systematic provision of data on SPP’s website in a single location, and in an easily
accessible format that is searchable and allows users to filter the data, regarding the cost
for Network Upgrades needed to provide transmission service to Eligible Customers on
behalf of large loads; and (2) a pro forma cost recovery agreement between SPP, the
relevant transmission owner, and the Eligible Customer taking transmission service on
behalf of a large load, or to propose Tariff revisions to provide additional transparency
and establish such a pro forma cost recovery agreement. We encourage state regulators
responsible for setting retail rates to provide input to SPP regarding their transparency
needs.
1.
Jurisdiction
The Commission has a duty to address the risk of cost shifting among transmission
customers that may result in unjust and unreasonable transmission rates. As explained
above, the Commission is obligated to ensure that the rates charged for jurisdictional
transmission service—as well as any practice directly affecting such rates—are just and
reasonable and not unduly discriminatory or preferential. With respect to the addition
of large loads to the transmission system, the Commission has exclusive authority to
ensure that transmission rates are just and reasonable. The costs of those upgrades to the
transmission system (i.e., Network Upgrades) necessary to provide transmission service
to Eligible Customers on behalf of large loads are inputs to jurisdictional transmission
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rates, and thus directly affect the Commission-jurisdictional rates paid by transmission
customers. To fulfill its responsibility to ensure that transmission rates are just and
reasonable, the Commission must act to address the risk of cost shifting among
transmission customers due to (1) the process transmission providers and/or transmission
owners use to evaluate the facilities needed, and the associated costs, for the provision of
transmission service to Eligible Customers on behalf of large loads and (2) speculative
transmission service requests by Eligible Customers on behalf of large loads that could
result in unjust and unreasonable transmission rates.
In response to the ANOPR, many commenters raise concerns about the impact
that large load additions can have on retail ratepayers, particularly the concern that other
retail ratepayers may be forced to subsidize Network Upgrades needed to add large loads
to the transmission system.115 While we appreciate and are similarly concerned about
this issue, the Commission is limited to addressing jurisdictional transmission rates and
as such, we do so herein. As the Commission has explained, states determine how
Commission-approved rates are collected among the relevant retail consumers along with
the rates for state-jurisdictional matters.116 Specifically, states have authority over how
the wholesale costs of providing electricity, including transmission of such electricity, to
those retail customers are recovered through retail rates.117 We are encouraged by efforts
taken by states to reform retail tariffs to address the potential for retail cost shifting as
large loads come online,118 as well as voluntary efforts by transmission owners to protect
retail ratepayers through cost recovery agreements with large loads.119 We are also
encouraged by the execution of the President’s Ratepayer Protection Pledge, through
115 See, e.g., Kansas Commission November 21 ANOPR Comments at 12;
Missouri Commission November 21 ANOPR Comments at 11; Nebraska Board
November 21 ANOPR Comments at 3; Tri-State November 21 ANOPR Comments at 8.
116 PJM Show Cause Order, 190 FERC ¶ 61,115 at P 167.
117 Id. P 68.
118 See, e.g., Kansas Commission November 21 ANOPR Comments at 9-10;
Missouri Commission November 21 ANOPR Comments at 3-4; Oklahoma State Entities
November 21 ANOPR Comments at 7-8.
119 See, e.g., Commonwealth Edison Co. 194 FERC ¶ 61,106; Commonwealth
Edison Co., 194 FERC ¶ 61,109; Commonwealth Edison Co., 194 FERC ¶ 61,110;
Commonwealth Edison Co., 194 FERC ¶ 61,113 (2026); PECO Energy Co., 193 FERC ¶
61,148 (2025); Dayton Power & Light Co., 192 FERC ¶ 61,103; Dayton Power & Light
Co., 189 FERC ¶ 61,220 (2024).
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which data center developers have committed to shield retail ratepayers from increased
electricity prices.120
We expect that the additional cost transparency measures proposed in the
following section will give state public utility commissions and other state regulators
the information necessary to allow them to understand which transmission costs are
caused by which transmission customers, so that they can sub-allocate these costs to the
appropriate retail customers. Indeed, the Commission’s objective in this proceeding is to
respect the cooperative federalism approach established under the FPA. Specifically, one
of the benefits of providing transparency on the costs of Network Upgrades necessary to
provide transmission service to Eligible Customers on behalf of large loads is so that
state regulators can use that information to protect residential and small commercial
customers by incorporating those costs into the retail rates as they see fit given their
authority to set rates for different classes of retail customers. We encourage state public
utility commissions, state regulators, and state consumer advocates to submit comments
explaining whether this information is sufficient and granular enough or to submit
comments explaining precisely which additional information on transmission cost
allocation may be needed to inform proper state-jurisdictional cost allocation.
2.
Additional Cost Transparency
We preliminarily find that SPP’s Tariff appears to be unjust and unreasonable or
unduly discriminatory or preferential because it does not contain provisions requiring the
provision of data on SPP’s website in a single location, and in an easily accessible format
that is searchable and allows users to filter the data, on transmission service requested
by Eligible Customers on behalf of large loads, for Network Upgrades evaluated in
the local transmission planning process that are needed to provide transmission service
to Eligible Customers on behalf of those large loads, and the costs for those Network
Upgrades. We preliminarily find that cost transparency measures are needed to provide
stakeholders with sufficient information and visibility regarding the Network Upgrades,
and their associated costs, needed to provide transmission service to Eligible Customers
on behalf of large loads.
As an initial matter, we note that SPP has taken numerous steps to connect large
loads to the transmission system in a reliable and expeditious manner and to enhance
its study and operational requirements related to provision of transmission service to
Eligible Customers on behalf of large loads.121 SPP’s Tariff contains a process for
identifying Network Upgrades for new transmission service requests, including for
Eligible Customers requesting transmission service on behalf of large loads. As
120 Proclamation No. 11014, 91 Fed. Reg. 11439 (Mar. 4, 2026).
121 See supra PP 21-22.
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discussed above, Eligible Customers must satisfy several initial requirements within
the timeframe outlined in SPP’s Tariff before taking CHILLS, Firm Point-to-Point
Transmission Service, or NITS on behalf of large loads. Should the studies associated
with such a request identify the need for Network Upgrades, those upgrades will be
further evaluated in SPP’s transmission planning process and included in SPP’s
Transmission Expansion Plan, and the costs will be allocated to transmission customers
in certain pricing zones, subregions, the entire SPP region, or a combination thereof,
based on the voltage level and location of the specific Network Upgrade in accordance
with section III of Attachment J. However, if an Eligible Customer does not yet have
enough existing Designated Resources to serve new load, then the cost of any Network
Upgrades associated with the new load will be directly assigned to the Eligible Customer
until the Eligible Customer designates a generating facility to serve the load, at which
point the remaining cost of the Network Upgrades will be allocated to transmission
customers in accordance with section III of Attachment J.
However, SPP’s Tariff does not appear to require that information identifying
the Network Upgrades needed to provide transmission service to Eligible Customers
on behalf of large loads and the costs of those Network Upgrades determined through
local transmission planning processes be readily available on SPP’s website in a single
location, and in an easily accessible format that is searchable and allows users to filter
the data. The speed and scale with which Eligible Customers are seeking transmission
service on behalf of large loads makes it difficult for interested parties, including
transmission customers and state regulators, to accurately assess which transmission
costs are driven by requests for transmission service by Eligible Customers to serve
large loads. As SPP itself acknowledges, it is facing “unprecedented growth in large,
often non-traditional, load interconnection requests.”122 The SPP TOs, for their part,
note the “risk of inappropriate cost-shift to non-large load customers” associated with
large-load driven Network Upgrades.123 Although SPP has taken significant steps to
curb speculative requests for transmission service by Eligible Customers on behalf of
large loads through its HILL process, we are nonetheless concerned that the speed and
scale with which large loads are seeking to be added to the transmission system, the
projected need for significant Network Upgrades to provide transmission service to
Eligible Customers on behalf of large loads, and the lack of centralized information on
the associated transmission costs in SPP hamper the ability of the Commission and
stakeholders (including transmission customers and state regulators124) to understand and
122 SPP November 21 ANOPR Comments at 2.
123 See SPP TOs November 21 ANOPR Comments at 3, 6, 8.
124 See Transcript, NARUC Collaborative, Docket No. AD24-7-000, at 16-17
(Feb. 11, 2026) (Chair Bagot, Virginia) (asserting that additional transparency at the RTO
level would help the states get the information they need to “identify . . . that bucket of
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accurately assess the relationship between the addition of large loads to the transmission
system and wholesale transmission costs.
We acknowledge that SPP provides some information to stakeholders regarding
the cost of Network Upgrades generally. For instance, SPP publishes an annual report
detailing the region’s holistic transmission needs over the next 10 years.125 But such
reporting primarily presents aggregate transmission need and transmission project
cost-benefit projections across the region, not detailed cost estimates for large-load driven
Network Upgrades. Moreover, SPP’s Tariff does not contain provisions that require SPP
to publicly post cost estimates for Network Upgrades necessary to provide transmission
service to Eligible Customers on behalf of large loads.
We are concerned that without sufficient transparency regarding the
Network Upgrades, and their associated costs, needed to provide transmission service
to Eligible Customers on behalf of large loads, stakeholders may lack information and
visibility regarding the costs driven by large load additions. We preliminarily find that,
for Network Upgrades evaluated in the local transmission planning process126 that are
costs” related to large load-driven transmission costs), 19 (Commissioner Chattopadhyay,
New Hampshire) (noting the need for “all parties to be able to see things transparently”
with respect to wholesale transmission costs), 35-37 (Chair Martz, Iowa) (raising concern
that currently RTOs/ISOs do not have to clearly explain when a “bucket of costs is
specifically for this large load” and noting that “if we, at the state level, can’t see the
driver [of transmission costs], we can’t assign the cost to the causer[,] [a]nd so we need
that clarity”), 69-70 (Chair Myers, Arizona) (“[B]eing able to allocate the large load costs
to the correct bucket when it gets to the states is kind of a top priority.”).
125 SPP, Integrated Transmission Planning,
https://www.spp.org/engineering/transmission-planning/integrated-transmission-
planning/.
126 Our concern with transparency regarding Network Upgrades needed to provide
transmission service to Eligible Customers on behalf of large loads, as well as the costs of
such upgrades, is limited to Network Upgrades planned through the local transmission
planning process. While we acknowledge that in Order No. 890, the Commission
adopted requirements for RTOs/ISOs, as well as for transmission owners to the extent
that they perform transmission planning within an RTO/ISO, to have open and
transparent transmission planning processes, there are additional requirements that apply
to regional transmission planning processes (that do not apply to local transmission
facilities) and thus is relevant to the distinction here. Specifically, under Order No. 1000,
public utility transmission providers, including RTOs/ISOs, must evaluate as part of their
regional transmission planning process whether there are transmission facilities that more
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needed to provide transmission service to Eligible Customers on behalf of large loads,
SPP must provide clear, timely, and detailed information regarding the extent to which
requests for transmission service by Eligible Customers on behalf of large loads
necessitate Network Upgrades to accommodate the transmission service to Eligible
Customers on behalf of large loads, as well as the costs of those Network Upgrades.
We note that centralized information regarding Network Upgrades needed to
accommodate requests for transmission service by Eligible Customers on behalf of
large loads would also help inform stakeholders at the state and local level to address
affordability and other challenges posed by the integration of large loads. Indeed,
commenters state that the opaque nature of requests for transmission service by
Eligible Customers on behalf of large loads, and the associated Network Upgrades
required to provide that transmission service, prevent wholesale and retail customers,
states, and other stakeholders from understanding such costs.127
Accordingly, we preliminarily find that SPP’s Tariff appears to be unjust and
unreasonable because it does not require the provision of data on SPP’s website in a
single location, and in an easily accessible format that is searchable and allows users to
filter the data, that identifies the Network Upgrades that are needed to accommodate
requests for transmission service by Eligible Customers on behalf of large loads, and the
costs of those Network Upgrades. SPP should explain whether the Tariff remains just
and reasonable without provisions that would require SPP and the Transmission Owners
to publicly post and regularly update data that details: (1) the aggregate amounts of
proposed large load additions in SPP’s footprint, including the aggregate amounts in each
efficiently or cost-effectively meet the transmission planning region’s identified
transmission needs. See Order No. 1000, 136 FERC ¶ 61,051 at P 11.
127 See Kansas Commission November 21 ANOPR Comments at 11-13 (noting the
risk of cost shifts at the wholesale transmission level due to large-load driven regional
transmission costs); Missouri Commission November 21 ANOPR Comments at 14
(urging requirements that enhance transparency); see also OCC November 21 ANOPR
Comments at 3 (“Consumers, state advocates and state regulatory commissions have a
right to know which entities are seeking large-load interconnections, the nature of the
requested service, and how related costs could flow through to transmission and
distribution rates.”); U.S. House of Representatives Committee on Energy and Commerce
Ranking Members November 21 ANOPR Comments at 2 (urging the Commission to
“require sufficient transparency from grid operators so it can determine which specific
large load facilities are responsible for grid upgrade needs”); CPUC November 21
ANOPR Comments at 16-17 (asserting that the public posting of large load cost
responsibility determinations would improve transparency, to the benefit of businesses
and ratepayers).
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transmission pricing zone; (2) the planned Network Upgrades needed to provide
transmission service to Eligible Customers on behalf of large loads, identified by
type of equipment and Network Upgrade (e.g., new substation, reconductoring, a new
high-voltage transmission line) for each transmission service request; and (3) cost
estimates for those Network Upgrades; or propose such Tariff revisions. SPP and the
Transmission Owners should also consider what other data related to transmission costs
resulting from the provision of transmission service to Eligible Customers on behalf of
large loads would be useful to include on SPP’s website. To the extent there are concerns
about data confidentiality, SPP and the Transmission Owners should consider whether
there are ways to mitigate those concerns while still providing the necessary
transparency.
3.
Cost Recovery Agreements
We next preliminarily find that SPP’s Tariff appears to be unjust and
unreasonable because it lacks adequate mechanisms to mitigate the risk of cost shifting
among transmission customers, which may result in unjust and unreasonable rates
for transmission service. In particular, we are concerned about the apparent lack of a
pro forma cost recovery agreement between SPP, the relevant transmission owner, and
the Eligible Customer taking transmission service on behalf of large loads that help
ensure that Eligible Customers bear the risk and are ultimately responsible for costs
incurred to provide transmission service, including the cost of Network Upgrades.
Several commenters discuss the risk of cost shifting among transmission
customers that could result from transmission service requests by Eligible Customers on
behalf of large loads.128 Commenters also argue that retail-level large load tariffs do not
protect wholesale transmission customers from cost shifting.129 Specifically, commenters
in the record contend that, while a retail-level large load tariff protects the load serving
128 See, e.g., Buckeye November 21 ANOPR Comments at 8-13; APPA November 21
ANOPR Comments at 6 (“Wholesale transmission customers in particular could be left
shouldering massive costs if new large loads do not ultimately attain or maintain the level
of electricity demand that is being forecasted.”); NRECA November 21 ANOPR Comments
at 21 (noting the risk that other transmission customers could bear stranded upgrade costs
caused by large loads that they cannot absorb); TAPS November 21 ANOPR Comments
at 22-24; California DWR November 21 ANOPR Comments at 8.
129 TAPS November 21 ANOPR Comments at 26 (“[A] number of state
commissions are moving forward with retail large load tariffs, which provide for varying
protections, but may not require the revenues and minimum demand levels to be included
in wholesale transmission rates.”); Buckeye November 21 ANOPR Comments at 14-16;
Kansas Commission November 21 ANOPR Comments at 15-16.
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entity taking wholesale transmission service and its retail customers, it fails “to provide
any mechanism to protect other wholesale transmission customers” from stranded
transmission costs.130 The Kansas Commission states that while its Large Load Power
Services rate plan that requires large loads to make minimum payments toward
transmission costs protects retail ratepayers from large-load driven transmission costs,
it cannot protect against cost shifting associated with regional transmission buildout
where “the large loads that formed the basis for the [regional] transmission plans do
not materialize, leaving only existing customers to pay for generational expansions of
the transmission grid.”131 TAPS contends, moreover, that it is not sufficient for the
Commission to rely on transmission owners to voluntarily file cost recovery agreements
to protect transmission customers from cost shifting for Network Upgrades.132
We are likewise concerned that there may be speculative transmission service
requests by Eligible Customers on behalf of large loads that could result in cost shifting
among transmission customers, which may lead to unjust and unreasonable increases
in jurisdictional transmission rates. When a transmission owner constructs Network
Upgrades to accommodate an Eligible Customer’s request for transmission service on
behalf of a large load, those transmission costs will be included in the transmission
owner’s transmission revenue requirement. If, however, the Eligible Customer takes less
transmission service than anticipated because the large load operates at a lower demand
than anticipated or fails to materialize at all, other transmission customers may see an
increase in transmission rates. In such a situation, those other transmission customers
may have to pay for potentially unnecessary Network Upgrades that they neither caused
the need for nor benefit commensurately from. In other words, this introduces the risk
that costs may be unfairly shifted to other transmission customers, which may result in
those costs then being passed through to residential customers, among others.
SPP’s Tariff does not require cost recovery agreements between SPP, the relevant
transmission owner, and the Eligible Customer taking transmission service on behalf of a
large load. Such agreements would help ensure that the Eligible Customer makes a
minimum contribution to the transmission owner’s transmission revenue requirement
commensurate with the costs incurred to provide the requested transmission service,
130 Buckeye November 21 ANOPR Comments at 14-15; see TAPS November 21
ANOPR Comments at 26-27 & nn.50-51.
131 Kansas Commission November 21 ANOPR Comments at 11-12.
132 TAPS November 21 ANOPR Comments at 25-26 (noting that AES Ohio
“committed to reflecting the payments it received from the data center in its Commission-
jurisdictional transmission revenue requirement so that other customers are protected,” in
a Construction Service Agreement with Amazon).
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including the costs of any needed Network Upgrades. Absent such cost recovery
agreements, we are concerned that there is no mechanism to help ensure that Eligible
Customers taking transmission service on behalf of large loads (as opposed to other
transmission customers) bear the risk of, and are ultimately responsible for, the costs
incurred to provide them with the requested transmission service, including the costs of
any needed Network Upgrades.
Accordingly, we preliminarily find that, in order to prevent unjust and
unreasonable cost shifting among transmission customers, it appears necessary for
SPP, the relevant transmission owner, and the Eligible Customer taking transmission
service on behalf of a large load to enter into a cost recovery agreement that requires the
Eligible Customer to make a minimum contribution toward the transmission owner’s
transmission revenue requirement, if the Eligible Customer ultimately takes less
transmission service than anticipated because the large load does not materialize as
planned or is not developed at all. We preliminarily find that such cost recovery
agreements are necessary to help ensure that the Eligible Customer is responsible for
timely paying the costs of large load-driven transmission (i.e., the costs incurred to
provide them with the requested transmission service, including the costs of any needed
Network Upgrades), rather than having those costs paid by other transmission customers
that neither caused the need for nor benefit commensurately from those Network
Upgrades.133 Our preliminary finding is not intended to alter or call into question
existing regional cost allocation methods for Network Upgrades, but instead is focused
on helping to prevent cost shifting among transmission customers.
We note that several transmission owners and large load customers have filed
cost recovery agreements (Transmission Security Agreements or Construction Service
Agreements) with the Commission that guarantee minimum contributions from a large
load customer (rather than from the Eligible Customer taking transmission service on
behalf of the large load customer) to the transmission owner’s transmission revenue
requirement.134 Although we decline to preliminarily find that cost recovery agreements
between the transmission owner and the large load customer (rather than the Eligible
Customer) are necessary to ensure just and reasonable transmission rates, we continue to
find that such agreements directly affect Commission-jurisdictional transmission rates.
Therefore, to the extent a transmission owner and a large load customer enter into a cost
recovery agreement (whether voluntarily or pursuant to state law) through which the
large load customer guarantees contributions to the transmission owner’s Commission-
jurisdictional transmission revenue requirement, we find that such an agreement should
133 See, e.g., Midwest ISO Transmission Owners v. FERC, 373 F.3d 1361, 1368
(D.C. Cir. 2004); Ill. Com. Comm’n v. FERC, 576 F.3d 470, 476 (7th Cir. 2009).
134 See supra note 119.
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be filed with the Commission.135 To reduce duplicative credit requirements and
transaction costs, we direct further briefing on whether it would be appropriate for such
an agreement to substitute for the requirement on the Eligible Customer to enter into a
cost recovery agreement with the transmission owner, if the agreement with the large
load customer provided comparable or greater protection against cost shifting among
transmission customers than an agreement between the transmission owner and the
Eligible Customer would.
In addition to our preliminary finding that SPP’s Tariff is unjust and unreasonable
because it lacks a pro forma cost recovery agreement of this type, we also preliminarily
find that the minimum contribution required pursuant to such an agreement should be
based on the level of jurisdictional transmission service (in MW) requested by the
Eligible Customer on behalf of the large load. That figure is in turn tied to how SPP
and/or Transmission Owners will study the requested transmission service and determine
any necessary Network Upgrades that must be developed to provide the requested
transmission service. We note, however, that there may be other just and reasonable
methods for determining this minimum contribution, including methods that account for
potential timing differences between when costs are incurred to develop needed Network
Upgrades and the pace at which the large load ramps toward energizing at its full level of
requested service. We further preliminarily find that the cost recovery agreement should
include a credit support (or other financial security) requirement sufficient to secure the
obligations of the Eligible Customer taking transmission service on behalf of a large load
to pay the amounts owed pursuant to the cost recovery agreement. We find that a cost
recovery agreement with a specified minimum financial contribution and financial
security sufficient to secure such contribution is necessary to mitigate cost shifting if the
Eligible Customer ultimately takes less transmission service than anticipated because the
large load does not materialize as planned or is not developed at all. We preliminarily
find that an Eligible Customer may include a credit support or other financial security
posted by a large load as part of a retail agreement to avoid creating duplicative credit
support requirements. SPP should explain why such a pro forma cost recovery
agreement is not necessary to ensure just and reasonable rates, or propose such a
pro forma cost recovery agreement. To the extent that stakeholders believe that other
mechanisms could address our cost shifting concerns, we seek further briefing as
discussed below.136
135 We emphasize that this finding is in no way intended to preempt or interfere
with the ability of states to implement ratepayer protection measures designed to mitigate
cost shifting among retail customers, such as through state-jurisdictional large load
tariffs.
136 See infra P 94.
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Lastly, we expect that any payments made by an Eligible Customer to a
transmission owner pursuant to such a cost recovery agreement (or by a large load to a
transmission owner pursuant to other voluntary agreement) will be appropriately credited
toward transmission owners’ transmission revenue requirements consistent with the
Commission’s cost-of-service regulations.137 We preliminarily find that it appears
reasonable for filers of formula rates to provide a separate workpaper in the annual
informational filing describing how any payments made pursuant to a cost recovery
agreement are reflected in the transmission owner’s transmission formula rate.
C.
Co-Location Arrangements and Load with Behind the Meter
Generation
The Commission recently addressed in the PJM region the need for sufficiently
clear and consistent tariff provisions addressing the rates, terms, and conditions that
apply to co-location arrangements and for transmission services that reflect an Eligible
Customer taking transmission service on behalf of Eligible Load138 that is willing
and able to limit its energy withdrawals from the transmission system under certain
conditions.139 Although SPP recently established the HILLGA process to allow for
expedited review of generating facilities that are designated to serve a large load and
interconnected in the same local area as the large load (i.e., within a certain number of
substations and transmission line segments from the HILL), we remain concerned, as
discussed below, that SPP’s Tariff appears to be unjust and unreasonable because it lacks
such provisions.140
We direct SPP and the Transmission Owners, to the extent the matters addressed
herein implicate aspects of the Tariff over which they have the filing rights, to explain
whether the Tariff remains just and reasonable without provisions addressing the rates,
terms and conditions that apply to interconnection customers serving co-located load and
137 See 18 C.F.R. pt. 101 (2025).
138 As discussed below, for purposes of this order, we will use the term
Eligible Load to refer to co-located load and/or load with behind the meter generation.
See infra P 72.
139 PJM Co-Location Order, 193 FERC ¶ 61,217 at P 2; PJM Co-Location
Rehearing Order, 195 FERC ¶ 61,209 at PP 91, 102.
140 We note that SPP does not allow Eligible Customers taking transmission
service on behalf of loads with behind the meter generation to reduce their transmission
service charges by netting output from the behind the meter generation in determining
NITS charges. We therefore need not address behind the meter generation netting rules
in this order.
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for Eligible Customers taking transmission service on behalf of Eligible Load, or propose
Tariff revisions establishing the rates, terms, and conditions that apply to co-location
arrangements. We recognize that SPP is currently considering reforms related to new
transmission services, which might also be available to Eligible Customers taking
transmission service on behalf of co-located load, in its stakeholder process, and we
encourage SPP to consider whether these efforts would, either fully or in part, address
the Commission’s concerns that the Tariff appears to be unjust and unreasonable.
1.
Definition
The PJM Co-Location Order adopted the following definition of co-located load:
a “configuration [that] refers to end-use customer load that is physically connected to the
facilities of an existing or planned Customer Facility on the Interconnection Customer’s
side of the Point of Interconnection to the PJM Transmission System.”141 The PJM
Co-Location Order used the term co-location arrangement when referring to both the
co-located load and the associated generator.142
For purposes of this order, it appears that it would be reasonable to define
co-located load as a configuration that refers to end-use customer load that is physically
connected to the facilities of an existing or planned generating facility on the generator
interconnection customer’s side of the point of interconnection to the RTO/ISO’s
transmission system. In this order, we will also use the term co-location arrangement
when referring to both the co-located load and the associated generating facility.
SPP defines Behind-The-Meter-Generation (BTMG) as “A generation unit that is
connected on the load side of a load Meter Settlement Location and is used by the load
Market Participant that is the registered owner for the Meter Settlement Location to serve
all or part of its capacity, Energy or Ancillary Service needs.”143
For purposes of this order, we will use the term Eligible Load to refer to co-located
load and/or load with BTMG.144
141 PJM Co-Location Order, 193 FERC ¶ 61,217 at P 164 (alterations in original).
142 Id. P 3.
143 SPP Tariff, attach. AE (MPL), § 1.1B (3.0.0). While we believe this definition
is sufficient for purposes of this order, responses may explain whether changes to the
definition of BTMG may be needed in order to comply with any future directives, should
the Commission find that the Tariff has in fact become unjust and unreasonable.
144 PJM Co-Location Rehearing Order, 195 FERC ¶ 61,209 at P 91.
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2.
Jurisdiction
As explained in the PJM Co-Location Order, the Commission has exclusive
jurisdiction to oversee the interconnection of generating facilities to the interstate
transmission system, including where generators serve co-located load.145 The
Commission retains exclusive authority to regulate the procedures and agreements that
apply to the interconnection of a generator that will make wholesale sales, both where
the generator interconnects directly to the interstate transmission system and where a
generator interconnects to dual-use distribution facilities.146 Further, the Commission has
exclusive jurisdiction over the provision of transmission service to an Eligible Customer
on behalf of Eligible Load, provided that transmission of electricity is in interstate
commerce.147 As the Commission found in the PJM Co-Location Order, we continue to
acknowledge that the application of these principles depends on the specific facts and
circumstances presented in particular situations.148
Additionally, we reiterate that certain other aspects of co-location arrangements fall
squarely within the jurisdiction of the states. As we explained in the PJM Co-Location
Order, states retain exclusive authority over the specific terms of retail sales and retail rate
design, including retail cost allocation to the co-located load; which entities are legally
permitted to provide electricity to retail customers in co-location arrangements; and which
generating facilities are sited and allowed to serve co-located load.149
3.
Tariff Provisions
We preliminarily find that SPP’s Tariff appears to be unjust and unreasonable or
unduly discriminatory or preferential because it does not contain provisions addressing
with sufficient clarity and consistency the rates, terms, and conditions of service that
apply to interconnection customers serving co-located load. We also preliminarily find
that SPP’s Tariff appears to be unjust and unreasonable or unduly discriminatory or
preferential because it does not contain provisions addressing with sufficient clarity
and consistency transmission services that reflect that an Eligible Customer taking
145 PJM Co-Location Order, 193 FERC ¶ 61,217 at P 171 (citing 16 U.S.C. §§ 824d,
824e; EPSA, 577 U.S. at 278).
146 Id. P 172 (citing Nat’l Ass’n of Regul. Util. Comm’rs v. FERC, 475 F.3d 1277,
1282 (D.C. Cir. 2007)).
147 Id. P 173.
148 Id. P 174.
149 Id. PP 167-169.
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transmission service on behalf of Eligible Load is willing and able to limit its energy
withdrawals from the transmission system under certain conditions.
The absence of such provisions may leave entities unable to determine what steps
they can or must take to effectuate co-location arrangements of various configurations.
One step includes determining how interconnection customers serving co-located load
may use generator interconnection processes in SPP’s Tariff to facilitate their co-location
arrangements. We encourage SPP to explain how its existing HILLGA process either
may already clarify some of these requirements or may be modified to provide such
clarity. A further step includes requiring interconnection customers serving co-located
load to specify the Eligible Customer taking transmission service on behalf of the
co-located load under the Tariff for purposes of assessing charges, including the
appropriate charges for wholesale services that should apply to such Eligible Customers.
Without such a common and consistent understanding of entities’ responsibilities relevant
to co-location arrangements, many of which may significantly affect rates and are
realistically susceptible of specification,150 we are concerned that these arrangements
may be developed in a manner that is itself unjust and unreasonable or that may result in
unjust and unreasonable rates for other customers.
Moreover, as discussed further below, we are especially concerned that the
absence of Tariff provisions addressing transmission and ancillary service rates for
Eligible Customers taking transmission service on behalf of Eligible Load creates the
potential that Eligible Customers, on behalf of Eligible Load, may not be required to pay
for wholesale transmission services that they receive, as required by the cost causation
principle. That principle provides that all Commission-jurisdictional rates and charges
must “reflect to some degree the costs actually caused by the customer who must pay
for them,”151 and that costs must be allocated in a manner that is at least roughly
commensurate with the benefits that entity receives.152
We preliminarily find that SPP’s Tariff appears to be unjust and unreasonable
because it lacks sufficient clarity and consistency as to the rates, terms, and conditions
of service that apply to interconnection customers serving co-located load, including
the scope of the analyses SPP performs as part of its existing study process to evaluate
the impacts of co-location arrangements, which may need to account for any potential
dynamic impacts of co-located load and any potential impacts of requests to modify an
existing generating facility’s interconnection service level to serve co-located load on
150 Hecate Energy Greene Cnty. 3 LLC v. FERC, 72 F.4th 1307, 1312
(D.C. Cir. 2023).
151 Midwest ISO Transmission Owners v. FERC, 373 F.3d 1361 at 1368.
152 See, e.g., Ill. Com. Comm’n v. FERC, 576 F.3d 470 at 476.
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transmission system reliability. Additionally, in the PJM Co-Location Order, the
Commission found that it was necessary to clarify that interconnection customers seeking
to use new generating facilities to serve co-located load may (1) request interconnection
service at a level below the generating facility’s maximum facility output; (2) use
existing procedures to accelerate interconnection requests that satisfy certain tariff
criteria; and (3) request provisional interconnection service and surplus interconnection
service.153 As such, interconnection customers seeking to use their generating facilities
to serve co-located load have no means of knowing the appropriate mechanism for setting
forth the terms and conditions of co-location arrangements. We are concerned that the
details of the existing rules and studies applicable to co-location arrangements are not
sufficiently detailed in the Tariff to ensure clarity for how interconnection customers may
seek to serve co-located load. Moreover, without an Eligible Customer designated to
take transmission service on behalf of a co-located load, there is no mechanism for SPP
to address situations in which a co-located load withdraws energy from the transmission
system.
Therefore, we preliminarily find that SPP’s Tariff appears to be unjust and
unreasonable because it does not contain provisions addressing with sufficient clarity and
consistency the rates, terms, and conditions of service that apply to interconnection
customers serving co-located load. SPP should explain whether the Tariff remains just
and reasonable without such provisions, or propose Tariff revisions.
We have similar concerns regarding SPP’s existing rate designs for transmission
and ancillary services that are used by Eligible Customers taking transmission service
on behalf of Eligible Load. The Commission has previously found that co-located loads
that are synchronized with the transmission system use and benefit from at least some
ancillary services and may be reasonably charged for such benefits.154 Specifically, the
Commission has found that, regardless of whether a co-located load withdraws energy
from the transmission system, co-located load relies on and benefits from regulation
service and black start service, and concluded that Eligible Customers taking one of the
new transmission services (discussed below) on behalf of co-located load must pay for
these ancillary services on a gross demand basis.155 In the PJM Co-Location Rehearing
Order, the Commission applied these findings to Eligible Customers taking transmission
153 PJM Co-Location Order, 193 FERC ¶ 61,217 at PP 231-235. PJM’s
compliance filing proposing revisions in response to these directives was accepted
in part on April 16, 2026. PJM Interconnection, L.L.C., 195 FERC ¶ 61,030.
154 PJM Co-Location Order, 193 FERC ¶ 61,217 at P 183.
155 Id. PP 184-185.
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service on behalf of load with BTMG.156 However, SPP’s Tariff does not appear to
include a mechanism by which an Eligible Customer, on behalf of Eligible Load,
would be charged for ancillary services commensurate with its usage of such services,
particularly if such customer did not withdraw energy from the transmission system.
Therefore, we preliminarily find that SPP’s Tariff appears to be unjust and
unreasonable because it does not address whether and how Eligible Customers taking one
of the new transmission services on behalf of Eligible Loads will be charged for their use
of regulation and black start services, which introduces the risk that Eligible Load may
benefit from regulation and black start services without contributing to cost recovery
for such services. As noted in the PJM Co-Location Order, this introduces the risk that
costs may be allocated entirely to other transmission customers and passed through to
residential customers, among others.157 SPP should explain whether the Tariff remains
just and reasonable without requiring Eligible Customers taking one of the new
transmission services on behalf of Eligible Loads to pay for regulation and black start
services on a gross demand basis, or propose Tariff revisions that require them to do so.
The Commission also found in the PJM Co-Location Order that Eligible Customers
taking transmission service on behalf of co-located loads are willing and able to limit their
energy withdrawals from the transmission system under certain conditions. As such,
the Commission found that Eligible Customers taking transmission service on behalf
of co-located loads should be allowed to choose a transmission service that aligns with
their use of the transmission system and therefore aligns the charges for service with the
benefits received.158 On rehearing, the Commission found that it is just and reasonable for
these services to be available to Eligible Customers taking transmission service on behalf
of loads with BTMG.159 We are concerned that SPP’s Tariff lacks transmission services
that would reflect the ability of Eligible Customers on behalf of Eligible Loads to take
transmission services that align with their use of the transmission system, which may
result in inefficient and costly transmission buildout and costs paid by transmission
customers.160
156 See PJM Co-Location Rehearing Order, 195 FERC ¶ 61,209 at P 400.
157 See PJM Co-Location Order, 193 FERC ¶ 61,217 at P 159.
158 Id. P 199.
159 PJM Co-Location Rehearing Order, 195 FERC ¶ 61,209 at PP 101-103.
160 See, e.g., PSEG November 21 ANOPR Comments at 20 (“The Commission’s
long-standing policy is to encourage reduced use of the transmission system, which
would in turn reduce upgrades to the transmission system, to the benefit of all
transmission customers. For instance, if a co-located load’s use of the transmission
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Therefore, we also preliminarily find that SPP’s Tariff appears to be unjust
and unreasonable because it does not include transmission services that reflect
Eligible Customers taking transmission service on behalf of Eligible Load that are willing
and able to limit their use of the transmission system under certain conditions. SPP
should explain whether the Tariff remains just and reasonable without the transmission
services described by the Commission in the PJM Co-Location Order, with regional
variation as appropriate, being available to Eligible Customers taking transmission
service on behalf of Eligible Load, or propose appropriate Tariff revisions. Specifically,
SPP should explain whether the Tariff remains just and reasonable without (1) an interim
non-firm network transmission service while Network Upgrades are being constructed
(i.e., interim NITS) and (2) permanent firm and non-firm contract demand transmission
services (transmission service up to a specified MW quantity, i.e., the contract level, on a
firm or non-firm basis). Finally, we note that the Commission has found it just and
reasonable that, in order for an Eligible Customer to take interim NITS, firm contract
demand transmission service, and non-firm contract demand transmission service, an
Eligible Customer must have necessary control technologies and/or protection systems,
which may include a special protection scheme, to limit its energy withdrawals to its
approved level.161
While we recognize that SPP’s Tariff now provides CHILLS for HILLs, including
HILLs with behind the meter generation, our concern regarding the lack of interim NITS
that Eligible Customers may take on behalf of Eligible Load remains because CHILLS
differs from the interim NITS that the Commission required in the PJM Co-Location
Order. In response to this order, SPP may explain why CHILLS is sufficient to address
our concerns regarding the lack of an interim NITS that Eligible Customers may take on
behalf of Eligible Load, propose revisions to CHILLS, or propose other Tariff revisions.
We further note that SPP’s PALS proposal is currently under development in its
stakeholder process, and we encourage SPP to consider whether PALS would address
our concern that SPP’s Tariff may be unjust and unreasonable because it does not
include transmission services that reflect the use of the transmission system by
Eligible Customers on behalf of flexible large load, on both a temporary and permanent
basis.162
system is limited (or to a lesser degree) than other traditional in front of the meter loads,
it should be responsible for costs based on its limited use.”).
161 PJM Co-Location Rehearing Order, 195 FERC ¶ 61,209 at P 480.
162 See supra P 27.
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D.
Extending New Transmission Services to Eligible Customers Taking
Service on Behalf of Flexible Large Loads
In response to the ANOPR, a number of commenters argue that certain large loads
are able to limit their withdrawals from the transmission system under certain conditions.
Namely, commenters observe that flexible large loads163 can quickly and verifiably adjust
their consumption in response to system conditions or price signals.164 Commenters in
the ANOPR also observe that, where load studies and system planning consider the
flexible nature of large loads, flexible large loads can potentially defer or reduce the
need for Network Upgrades, among other potential benefits.165 In recognition of this
flexibility, many commenters support new transmission services that reflect the
operational capabilities of flexible large loads, including interim NITS while
Network Upgrades are constructed, and non-firm transmission service.166
We preliminarily find that SPP’s Tariff appears to be unjust and unreasonable
because it does not include transmission services that reflect Eligible Customers taking
transmission service on behalf of flexible large loads that are willing and able to limit
their use of the transmission system under certain conditions. The transmission services
163 For our purposes of this order, “flexible” large loads are a subset of HILLs that
are not co-located with generation, but are willing and able to limit their energy
withdrawals from the transmission system under certain conditions.
164 See, e.g., AEMA November 21 ANOPR Comments at 1-2; Land Trust Alliance
November 21 ANOPR Comments at 10; California DWR November 21 ANOPR Comments
at 5; CEBA November 21 ANOPR Comments at 14-15; ClearPath November 21 ANOPR
Comments at 2-4; Digital Energy Council November 21 ANOPR Comments at 1; EDF
Power November 21 ANOPR Comments at 4; Emerald November 21 ANOPR Comments
at 2; Verrus November 21 ANOPR Comments at 4.
165 See, e.g., AEMA November 21 ANOPR Comments at 5; ELCON November 21
ANOPR Comments at 9; Emerald November 21 ANOPR Comments at 6-7; Institute for
Progress November 21 ANOPR Comments at 11; Land Trust Alliance November 21
ANOPR Comments at 10; LS Power November 21 ANOPR Comments at 5; Microsoft
November 21 ANOPR Comments at 10-11; National Grid November 21 ANOPR
Comments at 19-20; OMS November 21 ANOPR Comments at 13-14; Southeast PIOs
November 21 ANOPR Comments at 50.
166 See, e.g., Constellation November 21 ANOPR Comments at 24-25;
Calibrant November 21 ANOPR Comments at 2-4; Critical Loop November 21 ANOPR
Comments at 2; Digital Power Network November 21 ANOPR Comments at 3; PIOs
November 21 ANOPR Comments at 27-28; Splight November 21 ANOPR Comments
at 3-4.
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available to Eligible Customers, including on behalf of flexible large loads, in SPP are
NITS, firm and non-firm Point-to-Point Transmission Service, and CHILLS.167 While
these remain just and reasonable options for an Eligible Customer to take on behalf
of a flexible large load, based on the record before us, we preliminarily find that new
transmission services should be available to reflect the operational reality that large loads
may use the transmission system to differing extents and certain large loads are willing
and able to limit their use of the transmission system under certain conditions.168 As
explained above, the Commission found that Eligible Customers taking transmission
service on behalf of Eligible Load should be allowed to choose a transmission service
that aligns with their use of the transmission system and therefore aligns the charges for
service with the benefits received.169 As the record suggests, Eligible Customers taking
transmission service on behalf of flexible large load also may be willing and able to limit
their use of the transmission system under certain conditions. As recognized in the
ANOPR record, load flexibility can avoid inefficient and costly transmission system
build-out.170 In addition, transmission services that reflect that flexible large loads are
willing and able to limit their withdrawals from the transmission system under certain
conditions could help timely interconnect flexible large loads.171 Entities in the SPP
footprint acknowledge the importance of facilitating load flexibility.172
167 See supra P 22 (describing existing transmission services in SPP).
168 See supra P 85.
169 PJM Co-Location Order, 193 FERC ¶ 61,217 at P 199; PJM Co-Location
Rehearing Order, 195 FERC ¶ 61,209 at P 103.
170 See supra P 85; see also PJM Co-Location Order, 193 FERC ¶ 61,217
at PP 160, 177, 199 (finding that new transmission service options reflect a co-located
load’s ability to limit withdrawals from the transmission system and potentially avoid
costly and inefficient transmission system buildout that may not be necessary).
171 See supra P 85; see also PJM Co-Location Order, 193 FERC ¶ 61,217
at PP 201 (finding that the interim, non-firm transmission service will facilitate the
“timely” provision of transmission service and that “[t]his willingness to curtail would
potentially allow them to obtain service more quickly”), 205 (recognizing that parties
argue that co-located loads may be able to receive transmission service faster with use
of a new, limited transmission service product than they would if they selected NITS, to
the extent that providing NITS would require Network Upgrades that the limited
transmission service would not).
172 See, e.g., Oklahoma State Entities December 5 ANOPR Comments at 3;
State Entities November 21 ANOPR Comments at 8-9.
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Therefore, we are concerned that SPP’s Tariff does not include transmission
services that reflect the use of the transmission system by Eligible Customers on behalf of
flexible large load, on both an interim and permanent basis. SPP should explain whether
the Tariff remains just and reasonable without the transmission services described by
the Commission in the PJM Co-Location Order, with regional variation as appropriate,
being available to Eligible Customers taking transmission service on behalf of flexible
large loads, or propose appropriate Tariff revisions. Specifically, SPP should explain
whether the Tariff remains just and reasonable without (1) an interim non-firm network
transmission service while Network Upgrades are being constructed (i.e., interim NITS)
and (2) permanent firm and non-firm contract demand transmission services (transmission
service up to a specified MW quantity, i.e., the contract level, on a firm or non-firm basis).
Finally, we note that the Commission has found it just and reasonable that, in order for an
Eligible Customer to take interim NITS, firm contract demand transmission service, and
non-firm contract demand transmission service, an Eligible Customer must have necessary
control technologies and/or protection systems, which may include a special protection
scheme, to limit its energy withdrawals to its approved level.173
Similar to the discussion above, while SPP’s Tariff now provides CHILLS for
HILLs, our concern regarding the lack of interim NITS that Eligible Customers may take
on behalf of flexible large loads remains because CHILLS differs from the interim NITS
that the Commission required in the PJM Co-Location Order. In response to this order,
SPP may explain why CHILLS is sufficient to address our concerns regarding the lack of
interim NITS that Eligible Customers may take on behalf of flexible large loads, propose
revisions to CHILLS, or propose other Tariff revisions. We also note that SPP’s PALS
proposal is currently under development in its stakeholder process, and we encourage
SPP to consider whether PALS would address our concern that SPP’s Tariff may be
unjust and unreasonable because it does not include transmission services that reflect the
use of the transmission system by Eligible Customers on behalf of flexible large load, on
both a temporary and permanent basis.174
E.
Informational Report
The rapid addition and proliferation of large loads without commensurate
additions of supply or demand-side resources presents resource adequacy concerns. As
discussed above and highlighted in the ANOPR, the growth of demand, and the speed
of such growth, is driven in large part by the interconnection of large loads. While not
expressly contemplated in the ANOPR, commenters highlight the strain rapid demand
173 PJM Co-Location Rehearing Order, 195 FERC ¶ 61,209 at P 480.
174 See supra P 27.
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growth is putting on resource adequacy in many regions.175 Indeed, the relative
speed and concentration at which large loads are seeking to interconnect appears to be
outpacing the addition of new generation, which in turn heightens reliability risks and
drives up costs to ratepayers.176 We are concerned about whether SPP and load serving
entities are planning adequate generation to serve all load at the pace such load seeks to
connect.
We recognize that RTOs/ISOs are engaging in efforts to more rapidly interconnect
generation that is needed to serve this unprecedented growth in load. In particular, SPP’s
HILLGA process and Expedited Resource Adequacy Study (ERAS) process provide
generator interconnection customers the opportunity to be studied and interconnect to
SPP’s transmission system more quickly in order to help ensure load serving entities
are able to meet resource adequacy requirements.177 While we are encouraged by the
implementation of such processes to ensure resource adequacy and faster interconnection,
we remain concerned that these efforts may fall short in light of generator retirements and
tightening supply conditions.
Accordingly, we direct SPP to submit in Docket No. EL26-68-000, within 30 days
of the date of issuance of this order, a detailed informational report on any proposals
under consideration in its stakeholder process to address the issue of resource adequacy
to serve new large loads or, to the extent that SPP is not considering such proposals,
providing information regarding how their existing processes, such as HILLGA and
ERAS, are working. We also encourage new proposals to the extent necessary to address
this concern. To the extent new proposals are being considered, the informational report
must include a detailed schedule of key milestones, such as stakeholder or SPP Board
votes, that includes the estimated date on which SPP expects to file any such proposals
with the Commission.
175 See, e.g., Entergy November 21 ANOPR Comments at 29-30; Eolian
November 21 ANOPR Comments at 16-17; Industrial Customers November 21 ANOPR
Comments at 24-26; R Street November 21 ANOPR Comments at 1; South Dakota
Commission November 13 ANOPR Comments at 5; Talen December 5 ANOPR Reply
Comments at 7.
176 See, e.g., Eolian November 21 ANOPR Comments at 16-17; David Gardiner &
Associates November 21 ANOPR Comments at 1-2; Joint Consumer Advocates
December 5 ANOPR Comments at 2; PSEG November 21 ANOPR Comments at 8;
Southern California Edison December 5 ANOPR Comments at 3.
177 See SPP HILL Order, 194 FERC ¶ 61,031 at PP 64, 67; Sw. Power Pool, Inc.,
192 FERC ¶ 61,062, at PP 104, 156 (2025).
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IV.
Briefing Questions
We note that large loads, including data centers, are actively working with
transmission owners and other relevant entities to interconnect to, and to take
interconnection and/or transmission service from, the transmission system and may
be at varying stages of that process. We appreciate that different large loads are
currently at different stages of that process. We also understand that large loads and
Eligible Customers taking transmission service on behalf of large loads are negotiating,
entering into, and/or have executed various agreements related to interconnecting to the
transmission system and/or the provision of transmission service. We direct further
briefing regarding how SPP and the Transmission Owners, in responding to the order to
show cause, should protect existing commercial arrangements including: (1) what would
be a reasonable implementation period to ensure minimal disruption to such existing
commercial arrangements, and (2) how to allow a reasonable amount of time to finalize
ongoing agreements that are nearing completion as of the date such Tariff provisions are
filed with the Commission.
Today’s order proposes, as part of a potential replacement rate, to establish new
transmission services that recognize flexible large loads’ ability and willingness to limit
their use of the transmission system under certain conditions. As we assess this proposal,
we also consider how these new transmission services might affect other parts of SPP’s
Tariff and/or processes. Specifically, what, if any, potential impacts on regional and
local transmission planning would arise from the introduction of the new transmission
services discussed herein? For example, when planning for load growth, how would
transmission providers and planners account for flexible large loads’ potential preference
to take the new transmission services, including potential uncertainties around the type,
location, and quantity of such expected loads?
Today’s order preliminarily finds that SPP’s Tariff appears to be unjust and
unreasonable without the inclusion of cost shifting protections. We find that there may
be a variety of possible approaches to protect customers from significant cost shifts
associated with Network Upgrades triggered by large loads. To that end, we direct
respondents to include information regarding potential structures for agreements
between the transmission owner/provider and an Eligible Customer to prevent unjust
and unreasonable cost shifts among transmission customers related to Network Upgrade
costs required for large loads. Further, please include information on what an appropriate
minimum level of cost recovery and financial security from an Eligible Customer would
be under any such agreements.
Today’s order preliminarily finds that SPP’s Tariff appears to be unjust and
unreasonable because it lacks clear and consistent provisions requiring the evaluation of
alternative transmission technologies. The order directs SPP to explain whether the
Tariff remains just and reasonable without provisions that (1) require the evaluation of
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alternative transmission technologies in transmission service request studies, using
models that are capable of evaluating the transmission system to accurately account
for advanced transmission technologies, in all instances, without the need for a request
from the Eligible Customer seeking transmission service on behalf of large load; and
(2) if traditional Network Upgrades are selected instead of alternative transmission
technologies, inclusion in the study report to the Eligible Customer seeking transmission
service on behalf of large load of a sufficiently clear demonstration of why alternative
transmission technologies are not feasible (i.e., would not resolve reliability violations
identified or meet the relevant planning criteria) or would not result in lower costs or a
faster timeline for accommodating the transmission service request. As noted above, to
the extent stakeholders believe that specific characteristics of providing transmission
service to Eligible Customers on behalf of large loads warrant requirements beyond those
contemplated here, we seek further briefing.
The Commission orders:
(A)
Pursuant to the authority contained in and subject to the jurisdiction
conferred upon the Federal Energy Regulatory Commission by section 402(a) of the
Department of Energy Organization Act and by the FPA, particularly section 206 thereof,
and pursuant to the Commission’s Rules of Practice and Procedure and the regulations
under the FPA (18 C.F.R. Chapter I), the Commission hereby institutes a proceeding in
Docket No. EL26-68-000 as discussed in the body of this order.
(B)
SPP and the Transmission Owners are hereby directed, within 60 days of
the date of the order, either: (1) to show cause as to why the Tariff remains just and
reasonable and not unduly discriminatory or preferential; or (2) to explain what changes
to the Tariff they believe would remedy the identified concerns if the Commission were
to determine that the Tariff has in fact become unjust and unreasonable or unduly
discriminatory or preferential and, therefore, proceeds to establish a replacement Tariff.
(C)
SPP is directed to submit an informational report within 30 days of the date
of issuance of this order, as discussed in the body of this order.
(D)
Any interested person desiring to be heard in Docket No. EL26-68-000
must file a notice of intervention or motion to intervene, as appropriate, with the
Federal Energy Regulatory Commission, 888 First Street, NE, Washington, DC 20426,
in accordance with Rule 214 of the Commission’s Rules of Practice and Procedure,
18 C.F.R. § 385.214 (2025), within 21 days of the date of issuance of this order. The
Commission encourages electronic submission of interventions in lieu of paper using
the “eFiling” link at http://www.ferc.gov. Persons unable to file electronically may
file by U.S. mail addressed to Federal Energy Regulatory Commission, Secretary of
the Commission, 888 First Street, N.E., Washington, DC 20426, or by hand
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(including courier) delivery to Federal Energy Regulatory Commission, 12225 Wilkins
Avenue, Rockville, MD 20852.
(E)
Interested entities may respond within 30 days of SPP’s and the
Transmission Owners’ filing, addressing either or both of: (1) whether the Tariff remains
just and reasonable and not unduly discriminatory or preferential; and (2) if not, what
changes to the Tariff should be implemented as a replacement rate.
(F)
The Secretary shall promptly publish in the Federal Register a notice of
the Commission’s initiation of the proceeding under section 206 of the FPA in Docket
No. EL26-68-000.
(G)
The refund effective date in Docket No. EL26-68-000 pursuant to
section 206 of the FPA shall be the date of publication in the Federal Register of the
notice discussed in Ordering Paragraph (F) above.
By the Commission. Chairman Swett is concurring with a separate statement attached.
Commissioner Rosner is concurring with a separate statement
attached.
Commissioner See is concurring with a separate statement attached.
Commissioner Chang is concurring with a separate statement
attached.
Commissioner LaCerte is concurring with a separate statement
attached.
( S E A L )
Debbie-Anne A. Reese,
Secretary.
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Appendix - Commenters in Docket No. RM26-4-000
Advanced Energy Management Alliance (AEMA)
Advanced Energy United
Advancing Modern Powerlines Coalition
Advocates for Consumer Regulated Electricity
AES Corporation
AI Supply Chain Alliance
Alexandre Figueras, on behalf of Monza Tech
Alliance for Tribal Clean Energy
Alliant Energy Corporate Services, Inc.
Amazon Energy LLC
America’s Power
American Chemistry Council
American Clean Power Association
American Conservation Coalition
American Council on Renewable Energy
American Electric Power Service Corporation178
American Public Gas Association
American Public Power Association (APPA)
American Terawatt, Inc.
American Transmission Company LLC179
Americans for a Clean Energy Grid
Antora Energy, Inc. (Antora)
Arevia Power
Arizona Public Service Company
Arkansas Public Service Commission (Arkansas Commission)
Attorney General of the State of Oklahoma
Base Power Company, Inc.
178 American Electric Power Service Corporation submitted comments on behalf
of its affiliates Appalachian Power Company, Indiana Michigan Power Company,
Kentucky Power Company, Kingsport Power Company, Ohio Power Company,
Wheeling Power Company, Public Service Company of Oklahoma, Southwestern
Electric Power Company, AEP Appalachian Transmission Company, Inc., AEP Indiana
Michigan Transmission Company, Inc., AEP Kentucky Transmission Company, Inc.,
AEP Ohio Transmission Company, Inc., AEP West Virginia Transmission Company,
Inc., AEP Oklahoma Transmission Company, Inc., and AEP Southwestern Transmission
Company, Inc.
179 American Transmission Company LLC submitted comments on behalf of itself
and its corporate manager ATC Management Inc.
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Bloom Energy Corporation
Buckeye Power, Inc. (Buckeye)
Calibrant Energy Holdings, LLC (Calibrant)
California Department of Water Resources State Water Project (California DWR)
California Independent System Operator Corporation
California Public Utilities Commission (CPUC)
Center for Biological Diversity
Chevron U.S.A., Inc.
Clean Energy Buyers Association (CEBA)
ClearPath, Inc. (ClearPath)
Confederated Tribes and Bands of the Yakama Nation
Constellation Energy Generation, LLC (Constellation)
Consumer Energy Alliance
Consumers Energy Company
Critical Loop, Inc. (Critical Loop)
Crusoe Energy Systems, Inc.
CTC Global Corporation
Data Center Coalition (DCC)
David Gardiner & Associates
Delaware Division of the Public Advocate
Digital Energy Council
Digital Power Network
Distributed Capacity Parties180
Dr. Elisa Nelson
DTE Electric Company
Duke Energy Corporation
EDF Power Solutions, Inc. (EDF Power)
Edison Electric Institute (EEI)
Electricity Consumers Resource Council (ELCON)
Electricity Customers Alliance (ECA)
Electric Power Supply Association (EPSA)
Emerald AI (Emerald)
Enchanted Rock, LLC
Energy New England, LLC
Energy Trading Institute
ENGIE North America, Inc.
Entergy Services, LLC181
180 Distributed Capacity Parties include: Clovereleaf Infrastructure; Spark
Community Investment d/b/a Sparkfund; and Voltus, Inc.
181 Entergy Services, LLC submitted comments on behalf of the Entergy Operating
Companies, which include Entergy Arkansas, LLC, Entergy Louisiana, LLC, Entergy
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Environmental Law & Policy Center
Eolian L.P.
Equinix, Inc.
esVolta, LP
ETX Upstream, LLC
Eversource Energy182
Exelon Corporation (Exelon)183
Fervo Energy Company
FirstEnergy Service Company184
Fluence
Front Door Technologies LLC
FuelCell Energy, Inc.
Georgia Public Service Commission
Geronimo Power, LLC (Geronimo)
Google LLC (Google)
Governors Josh Shapiro and Glenn Youngkin
GridCARE
GridStor LLC
Harvard Electricity Law Initiative
Helion Energy
Herbert Schrayschuen
Heron Power Electronics Company
Indiana Energy Association
Mississippi, LLC, Entergy New Orleans, LLC, and Entergy Texas, Inc.
182 Eversource Energy submitted comments on behalf of its affiliates The
Connecticut Light and Power Company, NSTAR Electric Company, and Public Service
Company of New Hampshire, and through its agent Eversource Energy Service
Company.
183 Exelon submitted comments on behalf of itself and its affiliates Atlantic City
Electric Company, Baltimore Gas and Electric Company, Commonwealth Edison
Company, Commonwealth Edison Company of Indiana, Inc., Delmarva Power and Light
Company, PECO Energy Company, and Potomac Electric Power Company.
184 FirstEnergy submitted comments on behalf of itself and its affiliates American
Transmission Systems, Inc., Jersey Central Power & Light Company, Mid-Atlantic
Interstate Transmission LLC, Keystone Appalachian Transmission Company, The
Potomac Edison Company, Monongahela Power Company, and Trans-Allegheny
Interstate Line Company.
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Indicated PJM Transmission Owners185
Industrial Customer Organizations186
Information Technology Industry Council
Infrastructure Masons, Inc. (Infrastructure Masons)
Institute for Progress
International Energy Credit Association
Invenergy187
Iron Mountain Data Centers, LLC
ISO New England, Inc.
ITC Holdings Corp.
Jason Miller, on behalf of VEIR Inc.
Kansas Corporation Commission (Kansas Commission)
185 PJM TOs include: AEP on behalf of Appalachian Power Company, Indiana
Michigan Power Company, Kentucky Power Company, Kingsport Power Company,
Ohio Power Company, Wheeling Power Company, AEP Appalachian Transmission
Company, Inc., AEP Indiana Michigan Transmission Company, Inc., AEP Kentucky
Transmission Company, Inc., AEP Ohio Transmission Company, Inc., and AEP West
Virginia Transmission Company, Inc.; AMP Transmission, LLC; City of Cleveland,
Department of Public Utilities, Division of Cleveland Public Power; City of Hamilton,
OH; Dominion Energy Services, Inc. on behalf of Virginia Electric and Power Company
d/b/a Dominion Energy Virginia; Duke Energy Corporation on behalf of its affiliates
Duke Energy Ohio, Inc., Duke Energy Kentucky, Inc., and Duke Energy Business
Services LLC; Duquesne Light Company; East Kentucky Power Cooperative; Exelon
Corporation, on behalf of Atlantic City Electric Company, Baltimore Gas and Electric
Company, Commonwealth Edison Company, Commonwealth Edison Company of
Indiana, Inc., Delmarva Power & Light Company, PECO Energy Company, and Potomac
Electric Power Company; FirstEnergy Service Company, as agent for its affiliates
American Transmission Systems, Incorporated, Jersey Central Power & Light Company,
Mid-Atlantic Interstate Transmission LLC, Keystone Appalachian Transmission
Company, The Potomac Edison Company, Monongahela Power Company and Trans-
Allegheny Interstate Line Company; Old Dominion Electric Cooperative; PPL Electric
Utilities Corporation; Rockland Electric Company; Southern Maryland Electric
Cooperative, Inc.; UGI Utilities Inc; and Wabash Valley Power Association, Inc.
186 Industrial Customer Organizations include: The Industrial Energy Consumers
of America, the American Forest & Paper Association, the PJM Industrial Customer
Coalition, and the Coalition of MISO Transmission Customers.
187 Invenergy includes: Invenergy Wind Development North America LLC,
Invenergy Solar Development North America LLC, and Invenergy Thermal Development
Holdings LLC.
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L. Lynne Kiesling
L.M. Marlowe
Land Trust Alliance
Large Public Power Council
Lauren Hopkins
LEAN Energy US
Load Flexibility Parties188
Long Island Power Authority
Longroad Energy Holdings, LLC
Louisiana Public Service Commission (together with the Mississippi Public Service
Commission, Louisiana and Mississippi Commissions)
LS Power Development, LLC (LS Power)
Maine Office of the Public Advocate
Maryland Energy Administration
Maryland Public Service Commission
Maven Solutions
MCC Economics and Finance
Meta Platforms, Inc.
Michigan Attorney General Dana Nessel
Microsoft, Inc. (Microsoft)
Midcontinent Independent System Operator, Inc.
MISO Transmission Owners189
188 Load Flexibility Parties include: Enerwise Global Technologies, LLC d/b/a
CPower, Enel North America, Inc., and Voltus, Inc.
189 MISO TOs include: Ameren Services Company, as agent for Union Electric
Company d/b/a Ameren Missouri, Ameren Illinois Company d/b/a Ameren Illinois and
Ameren Transmission Company of Illinois; American Transmission Company LLC; Big
Rivers Electric Corporation; Central Minnesota Municipal Power Agency; Citizens
Electric Corporation; City Water, Light & Power (Springfield, IL); Cleco Power LLC;
Cooperative Energy; Dairyland Power Cooperative; Duke Energy Business Services,
LLC for Duke Energy Indiana, LLC; East Texas Electric Cooperative; Entergy Arkansas,
LLC; Entergy Louisiana, LLC; Entergy Mississippi, LLC; Entergy New Orleans, LLC;
Entergy Texas, Inc.; Great River Energy; GridLiance Heartland LLC; Hoosier Energy
Rural Electric Cooperative, Inc.; Indiana Municipal Power Agency; Indianapolis Power
& Light Company d/b/a AES Indiana; Lafayette Utilities System; MidAmerican Energy
Company; Minnesota Power (and its subsidiary Superior Water, L&P); Montana-Dakota
Utilities Co.; Northern Indiana Public Service Company LLC; Northern States Power
Company, a Minnesota corporation, and Northern States Power Company, a Wisconsin
corporation, subsidiaries of Xcel Energy Inc.; Northwestern Wisconsin Electric
Company; Otter Tail Power Company; Prairie Power, Inc.; Republic Transmission, LLC;
Southern Illinois Power Cooperative; Southern Indiana Gas & Electric Company (d/b/a
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Missouri Public Service Commission (Missouri Commission)
Monitoring Analytics, LLC, acting in its capacity as the Independent Market Monitor for
PJM
Nathan Peterson
National Association of Regulatory Utility Commissioners
National Association of State Utility Consumer Advocates
National Conference of State Legislatures (NCSL)
National Congress of American Indians
National Grid PLC (National Grid)190
National Rural Electric Cooperative Association (NRECA)
Nebraska Power Review Board (Nebraska Board)
New England States Committee on Electricity
New England Conference of Public Utility Commissioners
New England Consumer-Owned Systems191
New England Public Systems192
New Mexico Public Regulation Commission
New York Independent System Operator, Inc.
New York State Department of State Utility Intervention Unit (NY UIU)
CenterPoint Energy Indiana South); Southern Minnesota Municipal Power Agency;
Wabash Valley Power Association, Inc.; and Wolverine Power Supply Cooperative, Inc.
190 National Grid submitted comments behalf of its affiliates Niagara Mohawk
Power Corporation; New England Power Company; New England Electric Transmission
Corporation; New England Hydro-Transmission Corporation; New England Hydro-
Transmission Electric Company, Inc.; and Massachusetts Electric Company.
191 New England Consumer-Owned Systems include: Belmont Municipal Light
Department, Block Island Utility District, Braintree Electric Light Department, Concord
Municipal Light Plant, Danvers Electric Division, Georgetown Municipal Light
Department, Groveland Electric Light Department, Hingham Municipal Lighting Plant,
Hudson Light & Power Department, Littleton Electric Light & Water Department,
Merrimac Municipal Light Department, Middleborough Gas & Electric Department,
Middleton Electric Light Department, North Attleborough Electric Department, Norwood
Municipal Light Department, Clear River Electric & Water District, Rowley Municipal
Lighting Plant, Stowe Electric Department, Taunton Municipal Lighting Plant, Town of
Wallingford, Connecticut Department of Public Utilities Electric Division, Westfield Gas
and Electric Light Department, and Mid-Coast Regional Redevelopment Authority.
192 New England Public Systems include: Connecticut Municipal Electric
Cooperative, Massachusetts Municipal Wholesale Electric Company, and Vermont
Public Power Supply Authority.
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New York Public Service Commission
New York State Reliability Council
New York Transmission Owners193
North American Electric Reliability Corporation
North Carolina Utilities Commission
North Carolina Utilities Commission Public Staff
North Dakota Public Service Commission (North Dakota Commission)
Northeastern Rural Electric Membership Corporation
NRG Energy, Inc.
Office of the Illinois Attorney General
Office of the Ohio Consumers’ Counsel (OCC)
Oklahoma Corporation Commission (together with Attorney General of the State of
Oklahoma, Oklahoma State Entities)
Oklo Inc. (Oklo)
Old Dominion Electric Cooperative (ODEC)
Oncor Electric Delivery Company LLC
ON Energy Storage Inc.
OpenAI Inc.
Oracle America, Inc.
Organization of MISO States, Inc. (OMS)
Organization of PJM States, Inc.
Paces AI Inc.
Pacific Gas & Electric Company
Paige Lambermont, on behalf of Competitive Enterprise Institute
Paul Statchen
Pennsylvania Office of Consumer Advocate
Pennsylvania Public Utility Commission
Pew Charitable Trusts Energy Modernization Project
PJM Interconnection, LLC
Power for Tomorrow
PPL Corporation194
Prime Mover Institute
193 New York Transmission Owners include: Central Hudson Gas & Electric
Corporation, Consolidated Edison Company of New York, Inc., New York Power
Authority, New York State Electric & Gas Corporation, Niagara Mohawk Power Corp.
(d/b/a National Grid), Orange and Rockland Utilities, Inc., Long Island Power Authority,
and Rochester Gas and Electric Corporation.
194 PPL Corporation submitted comments on behalf of the PPL Companies, which
include PPL Electric Utilities Corporation, Louisville Gas & Electric Company and
Kentucky Utilities, and The Narragansett Electric Company d/b/a Rhode Island Energy.
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PSEG Companies195
Public Citizen, Inc.
Public Interest Organizations (PIOs)196
Public Utilities Commission of Ohio’s Office of the Federal Energy Advocate
R Street Institute (R Street)
Rewiring America
MCC Economics Ltd.
RWE Clean Energy, LLC
Sarah McKinley
Shell Energy North America (US), L.P.
Sierra Club
SMA Solar Technology AG
Solar Energy Industries Association
South Carolina Office of Regulatory Staff
South Dakota Public Utilities Commission (South Dakota Commission)
Southeast Public Interest Organizations (Southeast PIOs)197
Southern California Edison Company
Southern Companies198
Southern Maryland Electric Cooperative, Inc.
Southwest Power Pool, Inc. (SPP)
Southwest Power Pool Transmission Owner Group (SPP TOs)199
195 PSEG Companies include: Public Service and Gas Company, PSEG Power
LLC, and PSEG Energy Resources & Trade LLC, which are each wholly-owned, direct
or indirect subsidiaries of Public Service Enterprise Group Incorporated.
196 PIOs include: Clean Air Task Force, Inc., Coalition for Affordable Utility
Services and Energy Efficiency in Pennsylvania, Earthjustice, Environmental Defense
Fund, Montana Environmental Information Center, Natural Resources Defense Council,
Sustainable FERC Project, Sierra Club, and Southern Environmental Law Center.
197 Southeast PIOs include: Southern Environmental Law Center, Appalachian
Voices, North Carolina Sustainable Energy Association, South Carolina Coastal
Conservation League, and Southern Alliance for Clean Energy.
198 Southern Companies include: Georgia Power Company, Alabama Power
Company, and Mississippi Power Company.
199 SPP TOs include: American Electric Power Service Corporation, Evergy
Kansas Central, Inc., Evergy Metro, Inc., Evergy Missouri West, Inc., Oklahoma Gas and
Electric Company, and Xcel Energy Services Inc., on behalf of Southwestern Public
Service Company.
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Splight Inc. (Splight)
State Entities200
Steel Manufacturers Association
Switch, Ltd. (Switch)
Talen Energy Corporation
Terraflux LLC
Tesla, Inc.
Texas Blockchain Council
Thermal Battery Alliance
Tract Holding Company I, LLC (Tract)
Transmission Access Policy Study Group (TAPS)
Tri-State Generation and Transmission Association, Inc. (Tri-State)
Travis Fisher, on behalf of Cato Institute
U.S. Chamber of Commerce
U.S. Energy Storage Coalition
U.S. House of Representatives Committee on Energy and Commerce Ranking
Members201
U.S. Representatives202
U.S. Senate Committee on Energy and Natural Resources
U.S. Senators203
U.S. Senator Jon Ossoff
Union of Concerned Scientists (UCS)
Vantage Data Centers (Vantage)
Verrus
Virginia State Corporation Commission
200 State Entities include: Massachusetts Attorney General’s Office, the Arizona
Attorney General’s Office, the Colorado Attorney General’s Office, the Connecticut
Office of Consumer Counsel, the Maryland Office of People’s Counsel, the Minnesota
Attorney General’s Office, the Office of the Nevada Attorney General, Bureau of
Consumer Protection, the New Hampshire Office of the Consumer Advocate, the Oregon
Attorney General, and the Rhode Island Division of Public Utilities and Carriers.
201 Submitted by Frank Pallone, Jr. (Ranking Member) and Kathy Castor (Ranking
Member, Subcommittee on Energy).
202 The U.S. Representatives that submitted comments include: Suhas
Subramanyam, John W. Mannion, Mike Quigley, and Donald S. Beyer Jr.
203 The U.S. Senators that submitted comments include: Edward J. Markey, Chris
Van Hollen, Elizabeth Warren, Peter Welch, Raphael Warnock, Richard Blumenthal, and
Adam B. Schiff.
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Vistra Corp. (Vistra)
Washington Utilities and Transportation Commission
Working for Advanced Transmission Technologies Coalition
WIRES
Wisconsin Electric Company
Wisconsin Public Service Corporation
PDF page 64
UNITED STATES OF AMERICA
FEDERAL ENERGY REGULATORY COMMISSION
Southwest Power Pool, Inc., AEP Oklahoma
Transmission Company, Inc., AEP Southwestern
Transmission Company, Inc., Deseret Generation &
Transmission Co-operative, Inc., Empire District
Electric Company, Evergy Kansas Central, Inc., Evergy
Kansas South, Inc., Evergy Metro, Inc., Evergy
Missouri West, Inc., GridLiance High Plains LLC, ITC
Great Plains, LLC, Mountrail-Williams Electric
Cooperative, NextEra Energy Transmission Southwest,
LLC, NorthWestern Energy Public Service Corporation,
Oklahoma Gas and Electric Company, Prairie Wind
Transmission, LLC, Public Service Company of
Oklahoma, Southwestern Electric Power Company,
Southwestern Public Service Company, Transource
Missouri, LLC, Transource Oklahoma, LLC, Tri-State
Generation and Transmission Association, Inc., and
Upper Missouri G. & T. Electric Cooperative, Inc.
Docket No. EL26-68-000
(Issued June 18, 2026)
SWETT, Chairman, concurring:
Today, we take historic action to push our country’s electric markets and economy
into the future—a future of fair cost allocation, unprecedented transparency for the
American ratepayer, respect for states’ rights, efficient markets and speed to power. Last
October, Secretary Wright articulated the monumental, generational and “urgent”
challenge FERC must solve for our country when he directed us to develop “reforms to
ensure the timely and orderly interconnection of large loads to the transmission system.”1
I strongly agree. And now, through this suite of six orders, we deliver.
Simply put, the show cause orders the Commission issues today to each of the six
electric markets subject to its jurisdiction find that the status quo across much of the
country is not good enough.2 Nowhere close. The record prompted by the Secretary’s
1 Advance notice of proposed rulemaking (ANOPR) Interconnection of Large
Loads to the Interstate Transmission System, Advance Notice of Proposed Rulemaking
(Oct. 23, 2025) (ANOPR); see Letter from Chris Wright, Sec’y, U.S. Dep’t of Energy
(Oct. 23, 2025) (Secretary’s Letter).
2 Cal. Indep. Sys. Operator Corp., 195 FERC ¶ 61,214 (2026) (CAISO); ISO New
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ANOPR leaves no doubt that most of the markets (and their existing rules) are inherently
slow and prohibitive of the dexterity necessary to adapt to and power societal evolution—
whether brought about by technological innovation or sustaining the great industrial
economy that anchors America.
I wholeheartedly, fully concur with these orders, which we carefully crafted to
execute upon the problems the Secretary identified in a manner that is quick, efficient,
and legally durable. I write separately to highlight certain considerations underlying the
Commission’s procedural approach to delivering on the ANOPR and to today’s orders.
Based on my analysis of the extensive record and numerous ongoing substantive
stakeholder interactions, I have determined that the most productive way to “build upon
the[] principles”3 in the ANOPR and “work expeditiously”4 towards a solution is to issue
individualized orders to show cause to each market.5 That is so for two main reasons.
First, the record the Commission collected in response to the challenges identified
in the ANOPR and subsequent resulting developments indicate that an approach that
honors the ANOPR principles but accounts for widening regional variation may now be
more efficient than a one-size-fits-all rule.6 The world has changed a great deal since last
Eng. Inc., 195 FERC ¶ 61,215 (2026) (ISO-NE); Midcontinent Indep. Sys. Operator, Inc.,
195 FERC ¶ 61,212 (2026) (MISO); N.Y. Indep. Sys. Operator, Inc., 195 FERC ¶ 61,216
(2026) (NYISO); PJM Interconnection, L.L.C., 195 FERC ¶ 61,211 (2026) (PJM); Sw.
Power Pool, Inc., 195 FERC ¶ 61,213 (2026) (SPP) (collectively, Orders to Show
Cause).
3 Secretary’s Letter at 2.
4 Id.
5 See SEC v. Chenery Corp., 332 U.S. 194, 202-03 (1947) (“[A]n administrative
agency must be equipped to act either by general rule or individual order. To insist upon
one form of action to the exclusion of the other is to exalt form over necessity. . . . [T]he
choice made between proceeding by general rule or by individual, ad hoc litigation is one
that lies primarily in the informed discretion of the administrative agency.”); Wis. Gas
Co. v. FERC, 770 F.2d 1144, 1166 (D.C. Cir. 1985) (“It is a well-settled principle of
administrative law that the decision whether to proceed by rulemaking or adjudication
lies within the broad discretion of the agency.”).
6 “[T]he Commission may rely on ‘generic’ or ‘general’ findings of a systemic
problem to support imposition of an industry-wide solution.” Interstate Nat. Gas Ass’n
of Am. v. FERC, 285 F.3d 18, 37 (D.C. Cir. 2002) (internal citations omitted). However,
the Commission “has long allowed different regional transmission organizations to
follow different rules, in recognition of regional variations including potential differences
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October. The ANOPR itself, including the articulated principles, appears to have shifted
the playing field and prompted great progress across several electric markets. This
change (and the Commission’s alignment with the Secretary) is well illustrated by a
number of landmark orders approving several market new constructs that we issued since
October, which together operationalize the Secretary’s principles and laid groundwork
for meaningful reform and today’s actions.7 While working to develop those orders, the
Commission has simultaneously devoted significant attention to evaluating the various
procedural paths through which we might comprehensively deliver.
Individual show cause proceedings will allow the Commission to ensure that
solutions to the problems the Secretary identified are tailored to the specific, varied
circumstances and market constructs of each region. Indeed, a careful review of today’s
six orders reveals the many ways in which those orders are customized for each market’s
unique circumstances and progress (or lack thereof) towards serving large load. To name
just a few examples, the orders recognize ongoing stakeholder processes in various
regions and are adapted to existing tariff provisions concerning large and co-located
loads; account for regional variances in allocating rights and responsibilities among
RTOs/ISOs and the transmission owners; leave room for each market to tailor operational
requirements for large loads that are particular to their region; and otherwise account for
incumbent regional differences on topics such as cost allocation and cost transparency,
study processes, and network upgrade procedures.
Proceeding via show cause proceedings will also allow the markets (and their
respective transmission owners) to explain, in the first instance, how to address the
Commission’s concerns. These entities have the deepest understanding of their
respective regions and are best positioned to implement solutions we identified, in the
most expeditious manner. The Commission will promptly evaluate their responses to
today’s orders, and, with input from stakeholders, swiftly establish appropriate reforms.
Second, proceeding via individual show cause orders will allow the Commission
to act more quickly than through traditional rulemaking. Notice-and-comment
rulemaking may not capitalize upon individual market progress prompted since October
and would be unduly time-consuming,8 as it also inevitably would require the additional
steps of accommodating the regional variations of the approach we take today.
Rulemaking efforts can be particularly inefficient when, as here, they risk incubating
in ‘geographic size and location.’” Cent. Hudson Gas & Elec. Corp. v. FERC, 138 F.4th
531, 539 (D.C. Cir. 2025) (internal citations omitted).
7 See id. P 2 & nn.6-11.
8 See, e.g., Comments of Talen Energy Corporation, Docket No. RM26-4, at 5-6
(filed Nov. 21, 2025).
PDF page 67
Docket No. EL26-68-000
- - 4 - -
uncertainty after progress has begun, and diverting scarce stakeholder resources away
from other endeavors, such as the development of market-specific reforms submitted to
the Commission under section 205 of the Federal Power Act (FPA). (To be clear, we
very much encourage 205 submissions encapsulating the principles we articulate in the
206s, and with all due deliberate haste.)
Furthermore, rulemaking requires a lengthy series of steps before the proposed
reforms would actually take effect—e.g., a NOPR, then a final rule, then potential orders
on rehearing, and then a “compliance” process in which affected parties make filings (or,
more likely, multiple rounds of filings) explaining how they intend to implement the rule.
By their nature, these procedures take time. For example, the compliance process for the
Commission’s Order No. 20239 (which matured out of an ANOPR issued in July 2021
and a NOPR issued in June 2022) still is not fully complete as of June 2026. The
compliance process for Order No. 222210 (NOPR issued in November 2016) could be
considered completed in May 2026; however, even with that timing, not all of the
RTOs/ISOs have yet fully implemented their Commission-accepted market rules. I
provide these examples not to suggest that the completion of a rulemaking process on the
interconnection of large loads would take this long,11 but rather to make clear the scope
of the years-long delays in implementation that might be expected if the Commission
elected to proceed via a NOPR. By contrast, we expect that individual show cause
proceedings for each of the RTO/ISOs will enable the Commission to spearhead lasting
reform much more expeditiously.
The six markets together cover nearly two-thirds of load subject to Commission-
jurisdictional rates, and therefore focusing initially on those regions is a prudent first step.
But I am under no illusion that the challenges discussed in today’s orders are somehow
9 Improvements to Generator Interconnection Procs. & Agreements, Order No.
2023, 184 FERC ¶ 61,054, order on reh’g, 185 FERC ¶ 61,063 (2023), order on reh’g,
Order No. 2023-A, 186 FERC ¶ 61,199, errata notice, 188 FERC ¶ 61,134 (2024).
10 Participation of Distributed Energy Res. Aggregations in Mkts. Operated by
Reg’l Transmission Orgs. & Indep. Sys. Operators, Order No. 2222, 172 FERC ¶ 61,247
(2020), order on reh’g, Order No. 2222-A, 174 FERC ¶ 61,197, order on reh’g, Order
No. 2222-B, 175 FERC ¶ 61,227 (2021).
11 I do not mean to suggest that the public utilities subject to compliance under
these rulemakings—or the Commission itself—have been derelict. The time-consuming
nature of the compliance process is a natural consequence of complex, nuanced efforts
toward tariff reform. As Chairman, I will continue to evaluate Commission directives to
ensure that obligations on regulated entities are not unduly burdensome and to make
certain that Commission action during the compliance process is as timely as possible.
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Docket No. EL26-68-000
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unique to the RTO/ISO regions. Our actions today do not foreclose the possibility of a
future rulemaking, and nor do they prevent us from acting on filings made under sections
205 and 206 of the FPA. I encourage transmission providers and other stakeholders
outside RTO/ISO regions to make individual filings to address the issues we discuss
today.
FERC is no longer the sleepy, responsive agency of the past—our country cannot
afford for it to be. This is a time for the best thinkers we have to collaborate on solving
our biggest problems, and thus it is my great honor to deliver a solution that honors the
Secretary’s goals. For these reasons, I respectfully concur.
________________________
Laura V. Swett
Chairman
PDF page 69
UNITED STATES OF AMERICA
FEDERAL ENERGY REGULATORY COMMISSION
Southwest Power Pool, Inc., AEP Oklahoma
Transmission Company, Inc., AEP Southwestern
Transmission Company, Inc., Deseret Generation &
Transmission Co-operative, Inc., Empire District
Electric Company, Evergy Kansas Central, Inc., Evergy
Kansas South, Inc., Evergy Metro, Inc., Evergy Missouri
West, Inc., GridLiance High Plains LLC, ITC Great
Plains, LLC, Mountrail-Williams Electric Cooperative,
NextEra Energy Transmission Southwest, LLC,
NorthWestern Energy Public Service Corporation,
Oklahoma Gas and Electric Company, Prairie Wind
Transmission, LLC, Public Service Company of
Oklahoma, Southwestern Electric Power Company,
Southwestern Public Service Company, Transource
Missouri, LLC, Transource Oklahoma, LLC, Tri-State
Generation and Transmission Association, Inc., and
Upper Missouri G. & T. Electric Cooperative, Inc.
Docket No. EL26-68-000
(Issued June 18, 2026)
ROSNER, Commissioner, concurring:
The electric industry is in the midst of changes not seen in a generation.
Compared to more traditional load growth, the large loads seeking to connect to the grid
today are larger, sometimes by orders of magnitude, and more concentrated. They also
exhibit different operational characteristics, such as the ability to quickly change their
energy consumption, sometimes in seconds. Often, these large loads seek to connect to
the grid as quickly as possible. And because of these dynamics, large loads are rapidly
driving the need for new transmission infrastructure and energy supply. This creates new
challenges that, if unaddressed, could jeopardize the reliability and affordability of the
grid on which we all depend.
Today, we are taking an important step toward addressing these challenges. We
are opening a dialogue with each of the six RTO/ISOs on a series of reforms that are
tailored to address the unique reliability and affordability challenges posed by large load
growth and the infrastructure buildout needed to serve dramatically growing demand.
Informed by the record developed in response to the Secretary of Energy’s October 2025
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Docket No. EL26-70-000
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ANOPR,1 and by innovative proposals that stakeholders have filed with the Commission
under FPA section 205, today’s orders are aimed at ensuring that the grid remains reliable
and affordable for all customers, especially residential customers. It is also crucial that
we unlock the immense economic opportunity that once-in-a-generation growth
represents. While each order’s specific focus varies according to the progress that each
RTO/ISO has made, our actions today fit broadly into four key pillars that, taken
together, provide a foundation for durable reform. Today, we are: (1) Protecting
Consumers, (2) Safeguarding Reliability, (3) Enhancing Transparency, and (4) Fostering
Innovation (see Figure 1). I write separately to explain how.
*****
Protecting Consumers: Today’s orders include key protections that promote
affordability. First, today’s orders require “Cost Recovery Agreements”, which are
designed to ensure that large loads pay their fair share of the costs incurred to serve them,
regardless of whether the large load comes online as planned. Thus, if new infrastructure
is built to accommodate a data center, and that data center doesn’t show up, residential
customers are not left on the hook to pay the costs. Cost Recovery Agreements prevent
those costs from being shifted to residential customers. Depending on how they are
structured, Cost Recovery Agreements can also address the potentially uneven pacing of
new infrastructure costs, where grid upgrade costs may hit customer bills before the large
load is fully online and energized. Data centers have committed to paying their own
way.2 Today, with “Cost Recovery Agreements,” we are taking steps to ensure that those
commitments are honored. I note, however, that the door remains open to other creative,
regionally-specific ideas to protect consumers. If there are other ways to accomplish that
goal, I welcome those proposals.
Another win for consumers is requiring RTO/ISOs to consider grid enhancing
technologies (GETs), including dynamic line ratings, when adding new large loads to the
grid. GETs are technologies that squeeze more juice out of the existing grid, reducing the
need for expensive upgrades and speeding up the time connect. Ensuring that RTO/ISOs
consider GETs in the planning process—and if GETs are not used, explain why—not
only helps new large loads get connected more quickly, but is also a commonsense step
towards saving all consumers money. Put differently, today’s orders will help us
understand if we are leaving efficiencies on the table, an outcome we cannot afford.
1 U.S. Dep’t of Energy, Secretary of Energy Chris Wright, Direction that the
Commission Initiate Rulemaking Procedures and Proposal Regarding the Interconnection
of Large Loads Pursuant to the Secretary’s Authority Under Section 403 of the
Department of Energy Organization Act (Oct. 23, 2025).
2 See Proclamation No. 11014, 91 Fed. Reg. 11439 (Mar. 4, 2026).
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Docket No. EL26-70-000
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Safeguarding Reliability: Today’s orders safeguard reliability. They help ensure
that RTO/ISOs use study procedures and operational requirements that reflect large
loads’ unique characteristics and the reliability impacts of connecting them to the grid.
Those novel characteristics and reliability impacts are well-documented, and it is not
clear if existing study procedures or operational requirements account for them. Clear,
comprehensive, and specifically tailored study procedures and operational requirements
are needed, such as enhanced data reporting and telemetry to increase visibility into how
these loads interact with the grid, and today’s orders represent progress towards this goal.
Finally, although not part of today’s orders, I want to highlight NERC’s ongoing
efforts to establish registration criteria for large computational loads and to develop
reliability standards.3 NERC’s goal is to finish the first phase of this critical work this
year. It is essential that NERC meet this deadline. I encourage all stakeholders to
participate in NERC’s process.
Enhancing Transparency: Today’s orders provide regulators—the Commission
and, critically, our state partners—and customers with data on how connecting large
loads to the grid affects bills. Today’s orders embody a commonsense approach: if a
Network Upgrade is built to connect a large load to the grid, consumers should know who
that upgrade was built for and what it cost.
Transparency is important because “who pays?” has been and continues to be a
fraught and contentious question for large load interconnection. Stakeholders, including
state regulators and the ratepayers that they represent, must know the costs, for whom
they are being incurred, and how they are being allocated, to know that everyone is
paying their fair share. Today’s orders ensure that this information is public, accessible,
and clear. State regulators in more than half of the country have enacted large load
tariffs.4 Our action today helps them as they continue their critically important work.
The Commission’s action today also addresses speculative load interconnection
requests, which clog up load interconnection queues, divert resources, and distort
forecasts. Under current rules, data centers can (and are incentivized to) “shop around”
their prospective projects with different utilities to identify the fastest and cheapest
location to connect. This wastes time and resources studying projects that are not real.
Worse yet, it can inflate expected load growth by modeling projects that do not
3 NERC, Large Loads Action Plan Q1 2026 Update (Apr. 2026),
https://www.nerc.com/globalassets/initiatives/large-loads-action-plan/llap-quarterly-
update-q1-2026.pdf.
4 See, e.g., National Association of Regulatory Utility Commissioners
Supplemental Comments at 2-6; Edison Electric Institute Supplemental Comments at
App. 9-13.
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Docket No. EL26-70-000
- 4 -
materialize, leading to double counting, inaccurate market signals, and unnecessarily high
prices for consumers. Today, we target speculative projects by establishing escalating
readiness requirements for distinct phases of the study process to deter duplicative or
speculative requests for transmission service. I strongly encourage RTO/ISOs to pursue
other improvements to load forecasts, such as using objective screening criteria like
physical site control, to ensure that the data used to plan the grid is as accurate as
possible.5
Fostering Innovation: As I have said, to meet the moment, “a business-as-usual
approach . . . will not suffice.”6 Building new infrastructure is difficult and costly, which
delays efforts to connect large loads to the grid quickly, reliably, and cost effectively.
This is doubly true when generation and load are planned and studied separately.
Today’s orders push beyond this status quo.
First, today’s orders promote flexible transmission services—that is, non-firm
service to a co-located load that is willing and able to limit withdrawals from the grid—in
every RTO/ISO (see Figure 2). As we explained when we first created these
transmission services in PJM for co-located loads, customers willing to embrace
flexibility can reduce the need for Network Upgrades and generating capacity to serve a
co-located load, which speeds up connecting to the grid and reduces costs for the co-
located load as well as other retail customers.
Second, today’s orders recognize that extending these same transmission services
to large loads that are not co-located but that may also be willing to limit their
withdrawals from the grid can unlock even more efficiency. Just as for co-located loads,
legalizing flexible transmission service options for more large load customers can speed
interconnection, avoid constructing unnecessary transmission upgrades, reduce strain on
the grid, and make power bills cheaper for everyone.
Finally, today’s orders embrace yet another innovation. Load and generation need
not be co-located to reduce the number of Network Upgrades; in other words, literal co-
location is not the only way to facilitate faster, more efficient, and more cost-effective
connections to the grid. Rather, where a large load and an associated generator are
electrically proximate (i.e., close together) and studied together, the reliability impacts on
the grid may be more limited than if the load and generator are studied separately. Just
like with co-location, more limited impacts on the grid mean, all else equal, fewer
5 See Comm’r David Rosner, Letter to the RTOs/ISOs on Large Load Forecasting
(Sept. 18, 2025), https://www.ferc.gov/news-events/news/chairman-rosners-letter-
rtosisos-large-load-forecasting.
6 PJM Interconnection, L.L.C., 193 FERC ¶ 61,217 (2026), (Rosner, Comm’r,
concurring) at P 3.
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Docket No. EL26-70-000
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Network Upgrades, which makes connecting to the grid faster, more efficient, and
cheaper for both the large load and the associated generator. That last point is key. To
add new supply to the grid, we must create incentives for “Bring Your Own New
Generation.” Today’s orders make BYONG faster and more efficient.
SPP has been a leader in showing how to push beyond the status quo. With its
innovative HILLGA proposal, approved by the Commission in January,7 SPP leveraged
the opportunity for speed and efficiency by studying load and generation together, and by
creating a limited, expedited interconnection service to connect faster. By matching the
generator’s output to the electrically proximate large load’s demand, the impacts to the
grid are less than they otherwise would be, minimizing the need for time-consuming and
costly Network Upgrades needed to connect. HILLGA is one solution that works for
SPP, but today’s orders direct other regions to follow SPP’s lead in ways that work for
them. Today’s orders add a key tool by ensuring that all RTO/ISOs can study load and
generation together.
*****
The Commission’s action today is an important step forward, but the Commission
cannot accomplish this work alone. States are essential partners in this work. The
Commission’s actions here respect the long-standing jurisdictional line between federal
and state authority provided by Congress and repeatedly affirmed by the Supreme Court.
States retain exclusive jurisdiction to allocate the costs of FERC-jurisdictional
transmission charges among their retail ratepayers, including co-located loads. States
also hold the keys to energy infrastructure permits, so we rely on their decisions to ensure
that needed transmission and generation get built. At a time when some large loads are
retail customers that can consume as much energy as a small city, it is imperative that we
work within our respective jurisdictions, but that we collaborate. I look forward to
continued collaboration.
Today’s orders begin an important dialogue with RTO/ISOs. As a potential next
step, today’s orders invite RTO/ISOs to respond by submitting proposals under FPA
section 205. I cannot encourage this enough. I also encourage public utilities outside of
RTO/ISOs across the country to do the same. The electric industry is rapidly evolving
with regions experiencing and addressing these challenges in different ways. Many of
the examples on which the actions in today’s orders are based on stakeholders thinking
creatively to develop solutions, and I welcome other new, innovative, and regionally
tailored proposals that build on the four key pillars set forth today: (1) Protecting
Consumers, (2) Safeguarding Reliability, (3) Enhancing Transparency, and (4) Fostering
Innovation. Only by working together can we rise to the occasion and meet this once-in-
7 See Sw. Power Pool, Inc., 194 FERC ¶ 61,031 (2026).
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Docket No. EL26-70-000
- 6 -
a-generation moment to deliver the reliable and affordable energy on which we all
depend. It will not be easy, but I remain optimistic and look forward to the path ahead.
For these reasons, I respectfully concur.
________________________
David Rosner
Commissioner
PDF page 77
UNITED STATES OF AMERICA
FEDERAL ENERGY REGULATORY COMMISSION
Southwest Power Pool, Inc., AEP Oklahoma
Transmission Company, Inc., AEP Southwestern
Transmission Company, Inc., Deseret Generation &
Transmission Co-operative, Inc., Empire District
Electric Company, Evergy Kansas Central, Inc., Evergy
Kansas South, Inc., Evergy Metro, Inc., Evergy Missouri
West, Inc., GridLiance High Plains LLC, ITC Great
Plains, LLC, Mountrail-Williams Electric Cooperative,
NextEra Energy Transmission Southwest, LLC,
NorthWestern Energy Public Service Corporation,
Oklahoma Gas and Electric Company, Prairie Wind
Transmission, LLC, Public Service Company of
Oklahoma, Southwestern Electric Power Company,
Southwestern Public Service Company, Transource
Missouri, LLC, Transource Oklahoma, LLC, Tri-State
Generation and Transmission Association, Inc., and
Upper Missouri G. & T. Electric Cooperative, Inc.
Docket No. EL26-68-000
(Issued June 18, 2026)
SEE, Commissioner, concurring:
Growing electricity demand underscores America’s economic strength and the
opportunities that come with it. And with new opportunities come new challenges. The
pace and scale of emerging large loads create new circumstances that require us to adapt
in how we build and manage the grid. Large and flexible loads can materially change
system operations, for instance, as well as near-term planning needs, upgrade
requirements, and how we allocate costs. Most existing systems were not designed to
accommodate those changes—especially not at the pace needed to support AI growth and
advanced manufacturing that are central to America’s economic competitiveness. As a
result, uncertainty over the operative rules and delays in interconnecting large loads can
undermine reliability and investment and add unacceptable and avoidable costs.
Today, the Commission takes strong action within our jurisdictional sweep to
address these and other challenges that large load growth poses to the interstate
transmission system. Today’s orders support both just and reasonable rates and speed to
(reliable) power. I’m deeply grateful for the many commenters who shared their insight
and ideas in this action. They let us build a record that highlights the need for clearer
processes, better information, and faster analysis while our country moves new large load
additions online. As we press forward in these dockets, I will be looking to continue
PDF page 78
Docket No. EL26-68-000
- 2 -
building on the momentum already underway across the country to craft more practical,
region-specific solutions that support timely action while protecting consumers. Our
continued ability to deliver reliable and affordable electricity requires nothing less.
Today’s orders speak for themselves. I write separately to briefly highlight two
principles baked throughout them and that I believe must remain central as the
Commission evaluates further steps.
First, these issues extend beyond the Commission. Creating efficient, predictable
large load interconnection processes is a joint and overlapping task for us, other federal
agencies, the States, and the RTOs/ISOs and utilities. My animating principle here is that
we must use FERC’s statutory authority to bring clarity to the parts of this national issue
we own, and to complement and aid others as they tackle theirs. The very procedure the
Commission deploys today reflects that goal: Recognizing the value in region-specific
approaches, we are directing individual action in each of the RTO/ISO regions and
encouraging—strongly—proposals under section 205 of the Federal Power Act from
transmission providers or other entities that are molded to their unique system needs.
Most critically, exercising our authority fully without hamstringing our regulatory
and industry partners means respecting the States. States make many of the key decisions
that affect how we manage large loads. States bring indispensable expertise over local
conditions, siting needs, retail structures, and the resource decisions within their borders.
And they have been hard at work pursuing the retail implications and other State-specific
concerns that large load interconnection presents.1 All this effort flows from the States’
statutorily preserved role in regulating the power system. Today’s order understands that
limit—our power “extend[s] only to those matters which are not subject to regulation by
the States.”2 It also embraces the value in a statutory lens that views large load issues as
an area of shared federal-State responsibility. As we require clear study and operational
parameters for large load interconnection, we should remember that the nation’s energy
landscape is not monolithic. State and regional diversity is a strength, and today’s orders
know that the best solutions reflect differing system characteristics. Our action today is
designed to support further State efforts in this urgent and fast-moving space, not
override them.
Second, affordability must be at the forefront as we protect consumers from
unnecessary costs in a time of rising demand. True, the Commission lacks authority over
all the factors that drive electricity costs at the retail level. Today’s orders recognize that.
In response, the orders strive to aid the States in their front-line affordability duties by
1 See EEI Supplemental Comments at Appendix 9 – 13 (listing pending and
approved State large load tariffs).
2 16 U.S.C. § 824(a).
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Docket No. EL26-68-000
- 3 -
getting into their hands all relevant information about Commission-jurisdictional costs.
As these matters move forward, I am particularly interested in continued feedback from
the States on what information they most need to assess cost implications as new loads
come online. Are the cost transparency measures we identify today sufficient, or are
additional or more granular data needed for States to appropriately suballocate
transmission costs among retail customers? Tools like alternative cost allocation
structures, greater clarity in transmission service agreements, accounting for States’
large-load-specific tariffs, and direct assignment in appropriate cases may help States
ensure that retail consumers do not bear costs incommensurate with the benefits they
receive.
Moving to areas where the Commission has a more direct role in ensuring cost
responsibility, we need to pull all the levers we have to keep rates fair and transparent.
Today we reaffirm our responsibility to assign jurisdictional costs to the customers who
drive or benefit from grid upgrades, not shift them onto families and small businesses.
For instance, today’s orders seek to reduce large-load driven network upgrade costs
through alternative transmission technologies, or ATTs (also commonly called Grid
Enhancing Technologies). In determining how best to meet the needs of this historic
large load growth, technologies that can improve system capability faster than traditional
upgrades and at lower costs deserve a hard look. ATTs may not be the best tool in every
circumstance, but where they are they can support timely interconnections and avoid
potentially tens or hundreds of millions of dollars in unnecessary network upgrade costs
that would otherwise flow into transmission customers’ bills.
So our approach today supports continuing the Commission’s policy to roll most
network upgrade costs—including those in the large load space—into the embedded-cost
rate most transmission customers pay. But it includes an asterisk that this policy works
for ratepayers only so long as we remain committed to pursuing technological
innovations that keep those costs at a responsible and accountable level. Today’s order
thus calls for transmission providers to sufficiently evaluate ATTs to assess if and how
they can meet large loads’ interconnection needs. The answer may be yes or no in a
given case. But if the transmission provider opts for traditional network upgrades, they
must demonstrate why ATTs are not feasible or would not result in lower costs or a faster
timeline for the large load interconnection customer. In short, the goal is to respect
transmission providers’ engineering judgments while protecting against upgrade costs
when ATTs could solve transmission needs faster and with a lower bill.
I am also sensitive to novel questions about cost shifting that interconnecting large
load may present. Today’s findings on cost recovery agreements between transmission
owners and Eligible Customers are an important step in mitigating the risks of stranded
assets if large loads prove speculative. We are also reducing unnecessary redundancy by
allowing an Eligible Customer to meet its financial security requirements by relying on
credit support or other financial security a large load customer may have posted under a
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Docket No. EL26-68-000
- 4 -
retail agreement. As we gain more experience studying transmission service requests on
behalf of large loads, it may become appropriate to further streamline financial security
arrangements. Perhaps, for instance, cost -recovery agreements between a transmission
owner and a large load customer itself could satisfy an Eligible Customer’s financial
security requirements. As we move forward, I’ll be looking to ensure cost-recovery
agreements contain fair and transparent measures to ensure the right costs get on the right
bills. (Relatedly, the discussion about the full nature of transmission-related charges in
our concurrent PJM Order on Rehearing, Clarification, Compliance, and Paper Hearing3
may prove relevant here: Real-world experience with new transmission services for co-
located load may clarify if future action becomes needed to address potential cost shifts
as Eligible Customers take new transmission services on behalf of large loads.4)
More generally, as we gain more experience as an industry and a country in
getting large loads connected to the grid, I welcome bold proposals to keep affordability
central. Large load growth presents a real opportunity to build a stronger, more capable,
and more reliable electric system that can benefit all ratepayers. Meeting that opportunity
at the pace we need and at an acceptable cost requires innovative thinking and fast action.
I commend the States in their continued work in these areas. I urge the RTOs and ISOs
to continue their good work as they respond quickly to today’s orders. I also remain
committed to moving forward within the Commission’s statutory zone with clarity and
decisiveness. I am proud to support the Commission’s important steps today. And we all
have more work ahead.
For these reasons, I respectfully concur.
______________________________
Lindsay S. See
Commissioner
3 PJM Interconnection, L.L.C., 195 FERC ¶ 61,209 (2026).
4 See id. P 456.
PDF page 81
UNITED STATES OF AMERICA
FEDERAL ENERGY REGULATORY COMMISSION
Southwest Power Pool, Inc., AEP Oklahoma
Transmission Company, Inc., AEP Southwestern
Transmission Company, Inc., Deseret Generation &
Transmission Co-operative, Inc., Empire District
Electric Company, Evergy Kansas Central, Inc., Evergy
Kansas South, Inc., Evergy Metro, Inc., Evergy Missouri
West, Inc., GridLiance High Plains LLC, ITC Great
Plains, LLC, Mountrail-Williams Electric Cooperative,
NextEra Energy Transmission Southwest, LLC,
NorthWestern Energy Public Service Corporation,
Oklahoma Gas and Electric Company, Prairie Wind
Transmission, LLC, Public Service Company of
Oklahoma, Southwestern Electric Power Company,
Southwestern Public Service Company, Transource
Missouri, LLC, Transource Oklahoma, LLC, Tri-State
Generation and Transmission Association, Inc., and
Upper Missouri G. & T. Electric Cooperative, Inc.
Docket Nos. EL26-68-000
(Issued June 18, 2026)
CHANG, Commissioner, concurring:
In a series of orders today, the Commission initiates separate proceedings under
Federal Power Act (FPA) section 206 to explore the impact of the increasing growth of
large loads in Regional Transmission Organization (RTO) and Independent System
Operator (ISO) regions. The preliminary findings in these orders, and the associated
proposed reforms to RTO/ISO and transmission owner tariffs, could significantly change
how loads procure, use, and pay for transmission service, with ramifications for
RTO/ISO operations, planning, and markets. I write separately to emphasize the
importance of building actionable records in these proceedings, particularly with respect
to our consideration of customer protection, transmission service, and alternative
transmission technology reforms.
I.
Overview of Today’s Orders
In each of today’s orders to show cause, the Commission identifies a series of
issues raised by the ongoing growth of large loads, directs briefing on whether existing
tariffs remain just and reasonable in light of those developments, and describes possible
solutions to those issues if the Commission ultimately concludes that the relevant tariffs
are unjust and unreasonable. Each order is directed to a specific RTO/ISO and relevant
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Docket No. EL26-68-000
- 2 -
transmission owners that play a role in interconnecting large loads to the Commission-
jurisdictional transmission system. The Commission does not pursue the broad assertion
of jurisdictional authority contemplated in the Advanced Notice of Proposed
Rulemaking, which I hope assuages concerns raised by our state colleagues that the
Commission ought not encroach upon matters properly left to their jurisdiction.1
Broadly summarized, each order seeks regional input on a specific list of issues:
(1) the clarity and consistency of existing rules governing how each RTO/ISO and its
relevant transmission owners analyze the impact of providing transmission service to
Eligible Customers on behalf of large loads; (2) whether each RTO/ISO tariff requires
reforms to mitigate the risk of cost shifting among wholesale transmission customers; (3)
whether each RTO/ISO tariff (other than PJM) requires additional clarity regarding the
provisions addressing co-located generation and load arrangements; (4) the potential
extension of new firm and non-firm transmission services to co-located load, load with
behind the meter generation, and other flexible loads; and (5) the need for reforms,
modeled on Southwest Power Pool, Inc.’s High Impact Large Load Generation
Assessment concept, to facilitate a process through which a generator may temporarily
serve a co-located or electrically proximate load until interconnection and transmission
service is available. The Commission also invites each region to submit FPA section 205
filings that can address each issue identified in the orders, thereby resolving the
Commission’s concerns.
II.
The Commission Needs Good Records to Ensure Reasoned Decision-Making
I first want to emphasize that the Commission needs active participation from
interested stakeholders to develop thorough records in each region. The Commission
cannot make reasoned decisions about whether reforms might be needed without an
accurate understanding of the existing processes, which differ by region. Because the
Commission is acting via FPA section 206 rather than generically through a rulemaking,
the issues addressed by these orders will be subject to ex parte restrictions across the
RTOs/ISO regions, including with our state colleagues whose regulation can and will
directly affect the individual transmission owners that need to comply with the orders
issued today. This will limit the Commission’s ability to engage in informal fact-finding
and discussions with regional stakeholders, and thus, it is even more essential that the
record in each region fully reflects the views of all interested parties.
1 I will do my part to ensure that the Commission continues to be a collaborative
partner to our state counterparts, other federal agencies, and the industry as we seek to
address this wide-ranging challenge. Accordingly, I welcome feedback from our state
colleagues and others if they believe the Commission’s preliminary findings raise
jurisdictional concerns.
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Docket No. EL26-68-000
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Second, I highlight three issues below that will be especially important to the
success of this effort, and I hope that interested parties will take particular care in helping
the Commission address those issues. Importantly, I recognize that the record established
in each RTO/ISO region will (and should) differ, which will allow the Commission to
ensure any required changes to an RTO/ISO’s tariff are appropriately tailored to that
region’s needs.
III.
The Commission Needs to Pursue Meaningful Customer Protection
The FPA is fundamentally a customer protection statute,2 and the Commission has
an obligation to ensure that the rates that wholesale and transmission customers pay are
just and reasonable. Rapid large load growth has strained planning and resource
procurement processes around the country, as transmission owners, load serving entities,
and generators accelerate the building of new infrastructure needed to serve these new
loads. As we develop the new infrastructure, many have raised concerns about whether
these costs are being fairly assigned to new and existing customers, whose benefits must
be commensurate with the costs they pay. While individual states have been exploring or
using various approaches to protect retail customers against unjustified cost shifts, the
Commission to date has not initiated any proactive exploration of how to protect
wholesale customers against unjustified cost shifts. I am laser-focused on this issue
because we should not create unjustified costs for consumers in our efforts to connect and
serve large loads.
In today’s orders, the Commission launches an inquiry into whether existing
RTO/ISO tariffs include adequate mechanisms to mitigate the risk of undue cost shifting
among transmission customers. To address this risk, the Commission preliminarily
identifies a two-part solution: (1) that each RTO/ISO post public information about the
amount of new large loads seeking to connect to the RTO’s/ISO’s transmission system,
any Network Upgrades identified in the local transmission planning process to serve
those loads, and the costs of those Network Upgrades; and (2) that each RTO/ISO adopt a
pro forma cost recovery agreement to help ensure that Eligible Customers serving large
loads bear the risk and are ultimately responsible for costs incurred to provide
transmission service. I strongly support this effort to provide additional transparency
regarding jurisdictional transmission service requests and the costs associated with
providing transmission service to the requesting parties, as the Commission cannot
effectively execute its statutory responsibilities without sufficient understanding of the
costs that feed into jurisdictional rates.
2 See, e.g., Mun. Light Bds. Of Reading and Wakefield v. FPC, 450 F.2d 1341,
1348 (D.C. Cir. 1971) (stating that the FPA’s “primary aim is the protection of
consumers from excessive rates and charges”).
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Exploring how agreements between transmission owners and Eligible Customers
can protect wholesale customers against cost shifts is important. However, as I have
previously explained, bilateral agreements that simply provide transmission revenue
contributions untethered from any assessment of the actual cost of providing transmission
service induced by individual large loads may be insufficient to adequately protect other
customers against unjustified cost shifts.3 It is therefore important that the resulting
regulatory and rate design are not limited to a pre-defined solution set, and that parties
provide the Commission with comprehensive records outlining various and innovative
approaches to protect customers. I am encouraged by the continued development of the
ANOPR record on this subject,4 innovative solutions being developed at the state level,5
and a growing body of thoughtful analyses and proposed approaches to provide customer
protection for costs driven by large load growth.6 Without prejudging any particular
proposed solution, the Commission needs a robust record in each docket and each region
to ensure we establish the right cost shift protections for wholesale customers, including
but not limited to the commitments outlined in the Ratepayer Protection Pledge.7
I support initiating our own review of customer protection approaches, rather than
simply relying on voluntary commitments that may fall short of optimal protection,
because the Commission has the opportunity and obligation to get this issue right. I
3 E.g., PECO Energy Co., 193 FERC ¶ 61,148 (2025) (Comm’r
Chang, concurring); Commonwealth Edison Co., 194 FERC ¶ 61,109 (2026) (Comm’r
Chang, concurring).
4 E.g., Interconnection of Large Loads to the Interstate Trans. Sys., Supplemental
Comments of FirstEnergy Svc. Co., Docket No. RM26-4-000 (filed June 5, 2026); id.,
Comment of the Harvard Electricity Law Initiative, Docket No. RM26-4-000 (Apr. 15,
2026); id., Supplemental Comments of WIRES, Docket No. RM26-4-000 (Mar. 30,
2026).
5 E.g., Utility Dive, Microsoft seeks Nevada tariff to shield ratepayers from data
center costs (June 8, 2026), available at https://www.utilitydive.com/news/microsoft-
seeks-nevada-tariff-to-shield-ratepayers-from-data-center-costs/822250/.
6 E.g., Travis Kavulla, How Will Data Centers Pay for Power?, American Affairs
(may 2026), available at https://americanaffairsjournal.org/2026/05/how-will-data-
centers-pay-for-power/ ; Electricity Customer Alliance, A Customer-Centric Agenda for
the Federal Energy Reg. Comm’n (Jan. 2026), available at https://lnkd.in/em-apfuQ;
Grid Strategies, Federal Transmission Pricing Vol. 2, Options for Ensuring Affordability
in an Era of High Load Growth (June 2026), available at
https://gridstrategiesllc.com/project/federal-transmission-pricing.
7 Proclamation No. 11014, 91 Fed. Reg. 11439 (Mar. 4, 2026).
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therefore encourage interested parties to assist the Commission in that effort by clearly
and comprehensively explaining the benefits and tradeoffs of alternative customer
protection approaches. How power infrastructure costs will be assigned across Eligible
Customers that serve large loads and other customers is at the core of the efforts we
initiate today.
IV.
The Commission Needs to Understand the Implications of Extending New
Transmission Services to Additional Loads and Regions
The orders also preliminarily find that the Commission should extend the
transmission services developed in the PJM co-location proceeding – Interim NITS, Firm
Contract Demand, and Non-Firm Contract Demand – to new types of load and new
regions. These new transmission services represent a fundamental paradigm shift from
the traditional network service and point-to-point transmission service models established
in Order No. 888 that have been used across the country for the last three decades. While
these services have the potential to facilitate more efficient use and build out of the
transmission system, they also contemplate running the system “tighter” than we have
done in the past, potentially with more loads on the system served by co-located or
behind-the-meter generation, and potentially more use of batteries, load control systems,
and backup resources to manage demand during system peaks or other stressed
conditions. While it is important to identify innovative solutions that can adapt to the
needs of the system, the Commission and grid operators must also be careful not to
implement changes that create unforeseen reliability risks. Ultimately, we must find the
proper balance (and I would argue we are exploring a new balance) between costs of
investments versus reliability.
The Commission’s experience in the PJM co-location proceeding highlights the
complexities and challenges of introducing these new transmission services, which have
significant ramifications for system operations, transmission planning, grid reliability,
market dispatch, resource adequacy, and cost allocation. As the Commission considers
whether to expand these transmission services to new types of load and new regions, I
encourage commenters to address what impacts the introduction of new firm and non-
firm transmission products would have in their regions, as well as any relevant
characteristics that might distinguish their regions from the Commission’s findings in the
PJM co-location docket. Ultimately, this topic will have direct long-term impacts on how
future transmission systems will be planned and configured, how efficiently future power
markets will operate, and how customers will respond to prices and system needs.
Therefore, I am specifically interested in understanding how extending the new
transmission services might affect individual suppliers or customers, as well as how
existing systems or processes might be affected by these new services. I am open to
understanding how these services might be helpful to a region or that they may create
problems not yet anticipated.
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V.
The Orders Recognize the Importance of Evaluating Advanced Transmission
Technologies
Lastly, today we preliminarily find that each RTO/ISO’s tariff is unjust and
unreasonable because the tariff lacks clear and consistent provisions requiring the
evaluation of alternative transmission technologies as potential solutions to accommodate
an Eligible Customer’s request for transmission service on behalf of a large load.
Specifically, it is important for RTO/ISOs and transmission owners to evaluate whether
alternative transmission technologies are feasible in reducing the cost of transmission
system upgrades or allow for a faster timeline for accommodating the transmission
service request. As many transmission owners have explored various alternative
technologies in pilot projects,8 it is time to roll out all available technologies to reduce
risks and costs for customers, as well as help the industry continue to develop new
technologies that can increase the robustness of our transmission system while protecting
customers from higher costs.
VI.
Conclusion
Today’s orders address some of the most consequential issues currently in the
industry and before the Commission. I hope that these proceedings provide vehicles
through which the Commission can provide much-needed clarity and direction, and it is
imperative that we build strong and comprehensive records on each issue in each region
8 See, e.g., Increasing Mkt. and Planning Efficiency Through Improved Software,
Effective Congestion Mitigation with Transmission Topology Optimization at Alliant
Energy and ATC, Docket No. AD10-12-016, available at
https://www.ferc.gov/media/effective-congestion-mitigation-transmission-topology-
optimization-alliant-energy-and-atc (Alliant and ATC were able to save customers
approximately $24 million over a 12-month period through the use of topology
optimization); Pablo Ruiz and Derek Brown, “Reliable and Efficient Congestion
Mitigation Using Transmission Reconfigurations,” NewGrid and Evergy presentation
(Oct. 2022)¸ available at https://www.spp.org/Documents/67968/SAG%20Meeting%20
Materials%2020221007.zip (identifying reconfigurations, had they been implemented,
which could eliminate 98% of overloads and reduce congestion costs by 85% for
congestion patterns associated with 10 significant constraints on Evergy’s system);
Pacific Gas & Electric Press Release, PG&E and Smart Wires Enhance Grid Reliability,
Capacity for Data Centers in San Jose (May 28, 2025), available at
https://investor.pgecorp.com/news-events/press-releases/press-release-details/2025/PGE-
and-Smart-Wires-Enhance-Grid-Reliability-Capacity-for-Data-Centers-in-San-
Jose/default.aspx (describing PG&E’s deployment of advanced power flow control
devices were able to mitigate thermal overloads by up to 34%, enabling an additional 100
MW of firm power delivery over existing lines at a congested substation).
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Docket No. EL26-68-000
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to inform our decision-making. I therefore encourage all interested parties to fully
engage and help the Commission navigate these complex, multi-faceted challenges. Our
success will ultimately be measured by our shared ability to deliver reliable and
affordable power to all customers, to ensure new loads can interconnect in a timely
fashion while paying their fair share of system costs, and to protect existing customers
against adverse reliability or economic impacts.
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Docket No. EL26-68-000
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For these reasons, I respectfully concur.
________________________
Judy W. Chang
Commissioner
PDF page 89
UNITED STATES OF AMERICA
FEDERAL ENERGY REGULATORY COMMISSION
Southwest Power Pool, Inc., AEP Oklahoma
Transmission Company, Inc., AEP Southwestern
Transmission Company, Inc., Deseret Generation &
Transmission Co-operative, Inc., Empire District
Electric Company, Evergy Kansas Central, Inc., Evergy
Kansas South, Inc., Evergy Metro, Inc., Evergy Missouri
West, Inc., GridLiance High Plains LLC, ITC Great
Plains, LLC, Mountrail-Williams Electric Cooperative,
NextEra Energy Transmission Southwest, LLC,
NorthWestern Energy Public Service Corporation,
Oklahoma Gas and Electric Company, Prairie Wind
Transmission, LLC, Public Service Company of
Oklahoma, Southwestern Electric Power Company,
Southwestern Public Service Company, Transource
Missouri, LLC, Transource Oklahoma, LLC, Tri-State
Generation and Transmission Association, Inc., and
Upper Missouri G. & T. Electric Cooperative, Inc.
Docket No. EL26-68-000
(Issued June 18, 2026)
LACERTE, Commissioner, concurring:
I support today’s fleet of show cause orders. We are at an inflection point in the
history of American energy infrastructure. The extraordinary and rapid growth of large
loads in RTOs and ISOs is faster than the current system can handle. This order charts a
course for addressing the potential gaps and shortcomings in SPP’s Tariff that need to be
resolved to appropriately respond to this growth, as informed by careful review of the
thousands of pages of comments received in response to the advance notice of proposed
rulemaking (ANOPR).1 I write separately to underscore my expectation for RTOs and
ISOs, including SPP, to timely submit their robust, thoughtful, and region-specific
proposals to address the concerns that we have preliminarily identified in their respective
tariffs and agreements. By harnessing your region-specific expertise and creativity to
bring tailored solutions to the table, together we can efficiently, reliably, and affordably
integrate large load, co-located load and generation and/or storage, as well as electrically
proximate large load onto the transmission system. I also support the use of alternative
1 Interconnection of Large Loads to the Interstate Transmission System, Advance
Notice of Proposed Rulemaking, Docket No. RM26-4-000, (Oct. 23, 2025) (ANOPR);
see also Letter from Chris Wright, Sec’y, U.S. Dep’t of Energy (Oct. 23, 2025)
(Secretary’s Letter).
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Docket No. EL26-68-000
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transmission technologies to unlock every megawatt of existing capacity from our current
transmission system. We have the technology. We should use it now to enable faster
interconnection of large loads, lower costs to customers, and help prevent cost shifting.
To that end, and in light of our action in today’s orders, I also ask the state public
utility commissions—whether they have already approved large load retail tariffs, are in
the process of crafting large load retail tariffs, or have yet to embark on this essential
tariff design process—to take a hard look and ensure their large load retail tariff
provisions insulate ratepayers from the negative impacts of data center growth.
Additionally, I expect SPP to design proposals in response to this show cause order that
dovetail with the efforts on the retail side to implement the Ratepayer Protection Pledge,
protect customers, and ensure that large loads cover the costs they incur to integrate with
the grid.
The stakes here could not be higher and every gambler knows that the secret to
surviving is knowing what to throw away and knowing what to keep.2 Today’s orders do
exactly that—adopting thoughtful proposals that position our nation for success, driving
meaningful change, and rejecting the gridlock, half-measures, and failure to plan that
have gone on for far too long. The data center odyssey that we embarked upon first with
PJM, then SPP, we now aggressively extend to all the RTO/ISO regions.3 Enabling the
swift and efficient interconnection of large loads to the transmission system while
maintaining affordability, reliability, commitment to open access, competitive principles
and cooperative federalism, will only be achieved through consistent, coordinated action
and persistence. But without that first step,4 there is no direction, no forward momentum,
no journey, and no way to arrive at our future destination. In the show cause orders we
issue today, the Commission takes a series of long strides towards our ultimate large load
interconnection destination: we make preliminary findings that the RTO/ISO tariffs,
including SPP, may be unjust and unreasonable and/or unduly discriminatory or
preferential because they lack features necessary to timely, reliably, and safely
interconnect and serve new large loads in a way that produces just and reasonable rates.
2 Kenny Rogers, The Gambler (United Artists Records 1978).
3 Interconnection of Large Loads to the Interstate Transmission System, 195
FERC ¶ 61,045 at P 2 (2026) (Order Regarding Intent to Act) (citing PJM Co-Location
Order, 193 FERC ¶ 61,217; SPP HILL Order, 194 FERC ¶ 61,031; Commonwealth
Edison Co., 194 FERC ¶ 61,181 (2026); Tri-State Generation and Transmission Ass’n,
193 FERC ¶ 61,070 (2025); Duke Energy Carolinas, LLC, 193 FERC ¶ 61,237 (2025)).
4 Admittedly, we are further down the road in some regions as compared with
others.
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I commend each commentor for their robust and ongoing responses to the
concerns that Secretary Wright and the Commission raised in the ANOPR proceeding.
The comments helped us identify the common issues, common solutions, and individual
differences among the RTOs/ISOs. We heard a plea for broad flexibility and regionally
tailored solutions. And we will strive to work towards those solutions, not through top-
down, one-size-fits-all mandates, but through consideration of region-specific proposals.
And we endeavor to support an appeal for federal policies that build upon rather than
disrupt current and planned developments, reflecting state and local processes and
stakeholder efforts. Through these individually tailored and region-specific show cause
orders, we are delivering to ensure that our transmission system can accommodate new
large loads in a timely, safe, and reliable manner. And, importantly, in a manner that
ensures benefits and protection for all customers. Affordability remains a top concern as
we proceed forward.
The collective voices in the ANOPR comments have shaped our decision to issue
six separate individually tailored and region-specific show cause orders, rather than a
proposed final rule at this time. But the success of the next phase of this journey rests
with you, SPP, and your stakeholders. We are directing you to expeditiously bring
forward for our consideration your novel, region-specific solution(s). Time is of the
essence. By inviting you to proceed under FPA section 205, we are giving you
significant perks: the benefits of first wielder of the pen and the relatively capacious
standard under FPA section 205 that allows us to accept a potentially broad range of
proposals provided they are shown to be just and reasonable and not unduly
discriminatory or preferential.5 We are even giving you flexibility to propose the
implementation date for your innovative proposals. But such freedom comes with great
and concomitant responsibility.
This is not a time to be cavalier and dodge the urgent need to meet the moment.
While this is a long journey, even so, we must continue to move at breakneck pace to win
the AI race. So let me be direct. If you choose not to submit timely, reasonable, non-
discriminatory or preferential, comprehensive, and substantiated proposal(s), as directed
and as required under our applicable statutes, your deficient response will not go
5 See, e.g., NRG Power Mktg, LLC v. FERC, 862 FERC 108, 105 (D.C. Cir. 2017)
(FERC may not employ a rate design that follows “a completely different strategy” than,
or is “methodologically distinct” from, a proposed rate) (internal quotations omitted);
Oxy USA, Inc. v. FERC, 64 F.3d 679, 692 (D.C. Cir. 1995) (stating that a proposal under
FPA section 205 “need not be the only reasonable methodology, or even the most
accurate”); City of Winnfield v. FERC, 744 F.2d 871, at 874-875 (D.C. Cir. 1984)
(comparing the respective authorities of the Commission and public utilities under
sections 205 and 206).
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Docket No. EL26-68-000
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unnoticed. I am prepared to play jurisdictional hardball, if needed.6 This Commission
has appropriately exercised considerable restraint in asserting the full scope of our
jurisdiction in these orders. However, the Commission has very broad jurisdiction over
transmission that we will not hesitate to utilize as necessary to ensure that we meet our
objectives in all show cause proceedings, including this SPP proceeding we initiate here.
If we find your Tariff is in fact unjust and unreasonable and unduly discriminatory or
preferential, any failure on your end to provide a sufficient FPA filing or filings to
address the large-load-related concerns that we have identified will result in the
Commission dictating the solutions for you. I say this not as a threat, but as a statement
of duty. While you may not like our remedies—I have often said that the federal
government generally does not come up with the best solutions—this is an outcome we
are prepared to pursue given the gravity of the moment and our statutory obligation.
Notwithstanding our readiness to step in, it greatly benefits everyone for you to come up
with an approach tailored to your region.
I will end my concurrence where I began: We have heard your concerns, and, let
me underscore, now is the time for you to heed ours. This is an extraordinarily
consequential proceeding. The stakes for reliability, for affordability, and for the
American ratepayer could not be higher. We owe it to the public to get this right. I look
forward to reviewing and acting as expeditiously as possible on your responses to this
show cause order, which I expect will include an FPA section 205 proposal or proposals.
For these reasons, I respectfully concur.
______________________________
David LaCerte
Commissioner
6 16 U.S.C. § 824(b); New York v. FERC, 535 U.S. 17 (2002) (“There is no
language in the statute limiting FERC’s transmission jurisdiction to the wholesale
market[.]”)) (emphasis in original); id. at 20 (stating that “the FPA authorizes FERC's
jurisdiction over interstate transmissions, without regard to whether the transmissions are
sold to a reseller or directly to a consumer[.]”).