FERC's June Deadline on Large Load Interconnection
Data center interconnection has become one of the most contested issues in U.S. energy policy. As AI-driven demand pushes power requirements to unprecedented levels, the federal regulatory framework governing how large loads connect to the grid is being reshaped.
On April 16, 2026, the Federal Energy Regulatory Commission (FERC) committed to acting by the end of June 2026 on the Docket No. RM26-4-000, a response to the Department of Energy (DOE) Secretary Chris Wright's letter. For data center developers, site selectors, and the utilities and grid operators serving them, this docket carries significant weight for the future of large load interconnection.
What Is FERC's Large Load Interconnection Rulemaking?
In October 2025, Energy Secretary Wright invoked a rarely used authority under the DOE Organization Act to direct FERC to consider new rules for connecting large electrical loads, generally defined as demand exceeding 20 megawatts, to the interstate transmission system. The resulting docket, RM26-4-000, aims to standardize how large loads, such as data centers, manufacturing facilities, and other high-demand users, interconnect to the transmission grid. It is this docket that FERC will act on next month.
Why Is Data Center Interconnection So Complicated?
Three things to watch in this docket:
1. Federal vs. State Jurisdiction
FERC has historically regulated transmission interconnection for generation resources. Load interconnection, or how end-users connect to the grid, has been a state and local matter. In the Advance Notice of Proposed Rulemaking (ANOPR), DOE asserts that FERC must take jurisdiction over large load interconnection to enable AI data centers and the benefits they bring. The National Association of Regulatory Utility Commissioners (NARUC), which represents state utility regulators, filed comments arguing that FERC asserting jurisdiction over load interconnection would interfere with state authority over retail rate cases. How FERC draws that line in June will matter beyond this proceeding, either clarifying or further complicating the relationship between federal transmission authority and state retail jurisdiction.
2. Cost Allocation and Ratepayer Protection
When a data center requires significant transmission upgrades to interconnect, someone has to pay. Should the large load customer bear the full cost of network upgrades it requires? Should costs be spread across existing ratepayers? Even once those questions are answered, the harder work is determining how to share risk and cost fairly. FERC's answer carries major consequences for data center siting economics, utility investment planning, and residential electricity rates.
3. Definition of Large Loads
FERC has proposed a 20-megawatt threshold for “large loads.” Commenters pointed out that this threshold is low enough to capture commercial and industrial consumers the rule was not designed to target. Alternative proposals for the minimum threshold definition of “large loads” ranged from 30 megawatts to 300 megawatts, with some commenters recommending a reversion to FERC’s existing seven-factor test, voltage-based criteria, or function-based criteria.
How to Stay Current on FERC Large Load Interconnection Developments
Docket No. RM26-4-000 is active and will continue generating filings, compliance deadlines, and related state-level proceedings well beyond the June order. Tracking it effectively means monitoring FERC filings alongside the state commission activity the federal rulemaking intersects with.
That intelligence is available through HData's operating system, which pairs centralized regulatory data from authoritative federal and state sources with AI and purpose-built tools to track complex, multijurisdictional proceedings. One of the system's tools provides custom notifications, which can inform you the moment new fillings hit RM26-4-000 or any related state docket. You can request a demo to see how it works.
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