Overview
- On Thursday, June 18, 2026, FERC issued unanimous section 206 show‑cause orders to PJM, MISO, SPP, CAISO, ISO‑NE and NYISO requiring 30‑day generation reports and 60 days to defend or revise large‑load tariffs.
- The orders direct grids to adopt faster approval pathways for large loads by accommodating co‑location with generation, behind‑the‑meter supply, flexible or curtailable demand, and alternative transmission technologies.
- FERC told operators to apply cost‑causation principles so that data centers and other customers over roughly 20 megawatts bear interconnection and upgrade costs rather than spreading them to ordinary ratepayers.
- Texas regulators finalized a parallel approach this period by approving ERCOT’s Batch Zero grouped‑study process and a financial‑security requirement to screen speculative large‑load projects.
- The move implements a DOE directive and builds on FERC’s December PJM co‑location order but raises federal‑state jurisdiction questions and litigation risk that could shape where hyperscalers build and how fast new capacity comes online.