Overview
- On June 18, 2026 the Federal Energy Regulatory Commission issued show-cause orders to PJM, MISO, SPP, CAISO, ISO‑NE and NYISO requiring them to prove their tariffs fairly enable very large new commercial loads or to propose changes under Section 206 of the Federal Power Act.
- FERC identified five core reform areas that need clearer rules: faster application and transmission-study processes, transparency and rules to prevent cost shifting, handling of co‑location and behind‑the‑meter generation, new flexible interim transmission services for curtailable loads, and processes for generation that is electrically proximate to large loads.
- The orders set near-term deadlines: 30-day informational reports on resource adequacy due roughly July 20, 2026, 60-day show-cause responses or tariff filings due about August 17, 2026, and an option to request abeyance by August 3 for up to 90 days that FERC says it will not grant lightly.
- FERC favors regionally tailored solutions rather than a single national rule and cited SPP and PJM reforms as blueprints, while the orders apply only to organized RTO/ISO markets and explicitly exclude ERCOT and most vertically integrated utilities.
- The moves aim to speed connections for hyperscale data centers and energy‑intensive industry but raise stakes for where projects locate, how transmission upgrade costs are allocated, and whether states, utilities and stakeholders will litigate or negotiate contested reforms.