FERC orders RTOs to reform large-load interconnection rules

FERC has issued tailored show-cause orders to six regional RTOs/ISOs requiring them to justify or reform large-load interconnection rules and to provide generation-availability details.

• Main action: FERC issued tailored show cause orders to ISO-NE, NYISO, PJM, MISO, SPP and CAISO giving them 60 days to “justify or reform” interconnection rules for data centers, manufacturing facilities, and other large energy users,” and requiring grid operators and their transmission owners to provide details on how they make adequate generation available within 30 days**.
• Background & specifics: FERC identified five reform categories to address (1) transmission application and study processes including alternative technologies, (2) preventing cost shifting and increasing cost transparency, (3) accommodating co-location agreements and behind-the-meter generation, (4) new transmission services for flexible large loads, and (5) studying generation proximate to large loads. Grid Forward solicited commentary from Bruce Grabow (Sheppard Mullin) and Ray Gifford (Wilkinson Barker Knauer) who emphasized that the order aims to “facilitate speed to power,” noted jurisdictional limits, and compared the action to historic FERC oversight efforts.