Proposed “Computational Load Entity” Criteria Posted for Comments
Since North American Electric Reliability Corporation (NERC) launched Project 2026-02 to address reliability risks from computational loads, as discussed in our previous post, NERC has continued to manage the concerns raised by the emerging presence of large loads on the Bulk‑Power System (BPS).
In a March 6, 2026 order (the Order), the Federal Energy Regulatory Commission (FERC or the Commission) reshaped how PJM Interconnection, L.L.C. (PJM) allocates transmission project costs. Consol. Edison Co. of New York, Inc. et al., 194 FERC ¶ 61,179 (2026) (Docket Nos. EL15-18-005, EL 15-67-005, EL 17-68-003, ER 17-950-006, EL21-39, ER22-1606, and ER22-1606). The Commission eliminated PJM’s long‑standing de minimis threshold exemption—a rule that arguably shielded large load zones from paying for certain transmission upgrades despite significant usage—after the U.S. Court of Appeals for the District of Columbia (the Court) found the exemption violated cost‑causation principles. Consol. Edison Co. of New York, Inc. v. FERC, 45 F.4th 265 (D.C. Cir. 2022). As a result, FERC opened the door to an estimated $1 billion in refunds (including interest) and re-billing stretching back more than a decade.
The North American Electric Reliability Corporation (NERC) has determined that large computational loads connecting to the Bulk‑Power System (BPS) at an unprecedented speed and scale are reshaping demand profiles and exposing reliability gaps in both planning and operations.
At the Federal Energy Regulatory Commission’s (“FERC” or the “Commission”) monthly open meeting on February 19, 2026, the Commission reaffirmed that it will not reinstate its ban on gas pipeline work during appeals.
In recent years, the U.S. government has become increasingly concerned about foreign ownership of agricultural land. According to the most recent U.S. Department of Agriculture (USDA) report, foreign owners (primarily Canadian) hold an interest in nearly 45 million acres of U.S. agricultural land.
On January 14, 2026, the Federal Energy Regulatory Commission (FERC) accepted new rules proposed by Southwest Power Pool, Inc. (SPP) regarding the interconnection of High Impact Large Loads (HILLs) and the interconnection of new generation facilities that will be used to serve them, called High Impact Large Load Generation Assessment (HILLGA) in Docket No. ER26-247. This order, along with the recent order directing PJM Interconnection, L.L.C. (PJM) to propose rules for Co-Located generation and large loads, offer the first glimpse into how FERC will address the challenges facing the nation’s electricity grid. These include balancing resource adequacy, grid reliability, and fair cost allocation for any needed grid expansions to accommodate new AI-driven data centers.
Companies’ obligations to identify and disclose climate-related financial risks and climate data have become increasingly complex in recent years, both at the state and federal levels. The fate of federal climate disclosure rules remains unclear, with the Securities and Exchange Commission (SEC), other federal agencies, and the courts deferring action. Meanwhile, some states, such as California, are stepping in with their own robust requirements.
On October 29, 2025, Democratic members of the House Ways and Means Committee introduced H.R. 5862, the American Energy Independence and Affordability Act (the Bill). The legislation, introduced by Rep. Mike Thompson (D-Calif.), would restore clean energy tax credits from the Inflation Reduction Act (IRA) that were cut by the One Big Beautiful Bill Act (OBBBA), passed earlier this year.
On December 18, 2025, the Federal Energy Regulatory Commission (FERC) directed PJM Interconnection, L.L.C. (PJM) to create new rules around the co-location of generation and data centers (FERC’s Dec. 18, 2025 Order, Docket Nos. EL25-49, AD24-11, EL25-20). With several proceedings pending at the Commission to address the growing demand for energy from large load entities—including major rulemaking proceeding directed by the Department of Energy (DOE) on October 23, 2025—FERC’s December 18 order offers the first window into how the Commission will address the challenges facing the nation’s electricity grid. These challenges include balancing resource adequacy, grid reliability, and fair cost allocation for any needed grid expansions to accommodate new AI-driven data centers. FERC is expected to issue a proposed rulemaking in the coming weeks with additional guidance on how it plans to shape the future of data center development in the U.S.
Building natural gas infrastructure should get easier in the future by way of a recent ruling by the Federal Energy Regulatory Commission (FERC or the Commission). On October 7, 2025, FERC issued a Final Rule, entitled “Removal of Regulations Limiting Authorizations to Proceed with Construction Activities Pending Rehearing” (Docket No. RM25-9-000, 193 FERC ¶61,014 (2025)). The new rule rescinds FERC’s prior rule that barred construction on gas infrastructure during project appeals. In doing so, FERC plans to accelerate energy projects to meet the growing demand for energy, due in part to the rapid build-out of data centers.