DOE and FERC Clash Over Jurisdiction on Large Load Interconnections
The DOE and FERC are redefining the jurisdictional boundaries over large load interconnections, particularly impacting data centers. A ruling is anticipated by June 2026, which could significantly change how large electricity consumers connect to the grid.
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The Department of Energy (DOE) has directed the Federal Energy Regulatory Commission (FERC) to undertake rulemaking on the interconnection of large loads by April 30, 2026. This directive challenges the traditional division of authority between federal and state regulators, particularly in regard to data centers that are consuming increasing amounts of electricity.
U.S. data centers are projected to consume over 426 TWh by 2030, intensifying the strain on the transmission grid. In PJM, data center demand contributed to a $9.3 billion increase in capacity market prices for 2025-2026, with significant reliability concerns emerging. As FERC evaluates its jurisdiction, the potential for a jurisdictional conflict with state regulators remains high, risking delays in addressing the interconnection backlog.
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