Federal Energy Regulatory Commission (FERC)

High-voltage transmission lines/towers

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.

Federal Energy Regulatory Commission headquarters building exterior in Washington, DC

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.

Federal Energy Regulatory Commission headquarters building exterior in Washington, DC

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.

data center

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.

Federal Energy Regulatory Commission headquarters building exterior in Washington, DC

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.

When the legendary writer John McPhee described a blind, over-the-shoulder basketball shot of the equally legendary Bill Bradley, he fixed on Bradley’s explanation of how he managed to score apparently without looking at the basket. Bradley simply said, “you develop a sense of where you are.” That ‘sense’ allowed him to accomplish his purpose with no immediate idea about how his goal would be affected by events around him.

Industry participants, watchers, and regulators might enquire where we are in the complex but seemingly endless process of modernizing the U.S. electric system. Is the current focus on streamlining regulatory approval processes for infrastructure development generally— and the siting and permitting of electric transmission in particular—a sign that it’s time for the easy stuff since the Rubik’s Cubes of access, planning, cost allocation, and accommodating new technology are approaching resolution? Will this in turn be followed by a surge in electric transmission grid expansion and market integration? Ironically, during the decade of debate over siting and permitting—while policymakers make corridor determinations, run steering committees, and manufacture procedural shortcuts—U.S. transmission construction has declined precipitously. Does this give confidence that we know where we are, where the grid is headed, and how the industry will get there?

On December 19, 2024, FERC issued a Notice of Proposed Rulemaking (NOPR) to approve the addition of the newly defined term “Ride-through” to the North American Electric Reliability Corporation (NERC) Glossary of Terms and to approve the proposed Protection and Control (PRC) Reliability Standards PRC-024-4 (Frequency and Voltage Protection Settings for Synchronous Generators, Type 1 and 2 Wind Resources, and Synchronous Condensers) and PRC-029-1 (Frequency and Voltage Ride-through Requirements for Inverter-Based Resources (IBR)). According to FERC, these reliability standards are intended to address reliability gaps associated with IBRs tripping or entering momentary cessation in aggregate. The new rules will ensure that IBRs are able to “ride through” frequency and voltage excursions, such as faults on the transmission or sub-transmission system. In the NOPR, FERC seeks comments on the proposed rules and the need for informational filings that would help FERC analyze the impact of proposed exemptions in the rules for certain IBRs.

distribution electric substation with power lines and transformers

On October 17, 2024, the Federal Energy Regulatory Commission (FERC) issued Order No. 904, Compensation for Reactive Power Within the Standard Power Factor Range, 188 FERC ¶ 61,034 (2024) (Final Rule). With this Final Rule, FERC is eliminating all compensation for reactive power provided by generators within the standard power factor range of 0.95 leading to 0.95 lagging.

The Federal Energy Regulatory Commission (“FERC”) recently approved the North American Electric Reliability Corporation’s (“NERC”) request to expand registration and compliance requirements to inverter-based resources (“IBRs”) that meet or exceed 20 MVA and are interconnected at or above 60 kV.  This will impact certain wind, solar, battery, and fuel cell facilities that were previously too small to be required to register with NERC.