The Federal Energy Regulatory Commission (FERC) issued orders requiring the nation's six major grid operators to propose reforms or justify their existing rules on how data centers and other large customers connect to the electric grid within 60 days, according to Inside Climate News.
Each grid operator and its transmission owners must also submit a report within 30 days describing how they will ensure adequate generation to serve existing and new large loads, Inside Climate News reported. The 60-day deadline applies to the reform proposals or justifications.
The orders trace back to a directive from U.S. Secretary of Energy Chris Wright, who last October ordered FERC to begin rulemaking on energy demands and grid stability tied to large customers, particularly data centers for AI and cryptomining, according to Inside Climate News.
Regional grid operators manage the wholesale energy market for two-thirds of the United States, roughly 200 million customers, Inside Climate News reported.
The orders point to disruptions already recorded on the system. After lightning struck a transmission line in Dominion Energy's Virginia territory, 60 data centers simultaneously dropped off the system and switched to backup power, causing a sudden loss of 1,500 megawatts in demand, according to Inside Climate News.
In Texas, ERCOT reported five loss incidents of greater than 100 megawatts from October 2023 to October 2024, Inside Climate News reported.
FERC Chairman Laura Swett said the orders do not intrude on state authority to site and permit generating resources or to set the rates, terms and conditions of retail electricity sales, according to Inside Climate News.
Virginia regulators at the State Corporation Commission are reviewing Dominion's interconnection process for 70 gigawatts of data center requests, Inside Climate News reported.