FERC Moves to Speed Up Grid Hookups for Big Power Users
The Federal Energy Regulatory Commission is moving into territory it has long steered clear of: setting expectations for how large electricity consumers connect to the power grid. On June 18, the agency issued show-cause orders to the six regional transmission organizations and independent system operators, requiring them to defend existing interconnection tariffs for large loads or rewrite them.
The orders target facilities such as AI data centers and manufacturing plants seeking more than 20 megawatts of demand. FERC noted that 20 MW can serve roughly 15,000 homes, while a single large AI data center can require hundreds of megawatts.
Under Section 206 of the Federal Power Act, FERC directed the orders to PJM, MISO, SPP, CAISO, ISO New England (ISONE), and NYISO, effectively covering the main organized wholesale power markets in the US. The schedule is tight by regulatory standards: each operator must submit a capacity-status report within 30 days and provide full integration reform plans within 60 days.
FERC Chair Laura Swett called the action a historic modernization of electricity markets. The commission approved the orders unanimously.
A central feature is cost responsibility. Large energy users will be required to pay the full cost of interconnection-related upgrades, a structure designed to keep residential customers from subsidizing the infrastructure needed to serve a major new load.
FERC linked the initiative to an Oct. 23, 2025 directive from US Energy Secretary Chris Wright urging faster interconnection processes for high-demand loads. The commission's orders translate that policy push into enforceable requirements.
Interconnection for large loads can take 5 to 10 years or more. Historically, FERC's interconnection policy has focused on generation—how power plants connect to sell electricity—while the rules for large customers connecting to buy electricity have largely been left to states and regional operators.
The new approach introduces options such as flexible and curtailable load structures, which could allow faster hookups if customers agree to reduce consumption during peak-demand periods. Swett framed the objective as balancing innovation, reliability, and affordability.
The orders do not mention cryptocurrency mining or digital assets. The emphasis is on AI-driven demand growth and manufacturing reshoring. Many Bitcoin mining sites exceed the 20 MW threshold, but Texas' ERCOT grid is not among the six operators covered.
Even so, miners in PJM's eastern footprint or across MISO's Midwest territory could gain new routes to interconnection. Curtailable load provisions may be especially relevant for Bitcoin miners, which have already shown they will curtail during system stress in exchange for better power pricing. If the reforms standardize these arrangements federally, miners and other large users may have a clearer framework for negotiating grid access.
