The FERC orders recognize that a one-size-fits-all solution is not the most efficient solution for integrating large, energy-intensive loads onto the nation’s electric grid.

On June 18, 2026, the Federal Energy Regulatory Commission (FERC) issued show cause orders to six FERC-jurisdictional regional transmission organizations and system operators (RTOs) to further advance the integration of data centers and other large loads in the interstate electric transmission grid. The orders represent FERC’s first substantive action in response to the October 2025 rulemaking request from the U.S. Department of Energy seeking to expedite the interconnection of data centers to the interstate transmission grid.

Rather than issuing a generic final rule, FERC decided to proceed with tailored “show cause” orders to the six RTOs. This tailored approach recognizes variations in RTO rules and the different pace of their individual advancement toward large load innovation and structure, market design, stakeholder composition and geography. The FERC orders recognize that a one-size-fits-all solution is not the most efficient solution for integrating large, energy-intensive loads onto the nation’s electric grid. Nonetheless, the rulemaking proceeding remains open and FERC may issue additional orders in the future targeting non-RTO utilities or instituting additional rules.

Under the orders, each RTO and its transmission-owning members have 60 days to either justify why their current tariffs remain just and reasonable without provisions tailored to large loads or to file tariff changes that address the issues FERC identified. Additionally, within 30 days, each RTO and its transmission owners must submit a detailed informational report describing how the grid operator intends to ensure that adequate generation will be available to serve existing and new large loads.

The orders indicate that in some regions, the recently approved large load and colocation rules may put those regions closer to desired compliance while other regions may have more work to do. FERC further emphasized that its orders are not intended to disrupt any existing or pending agreement negotiations that large loads have for the provision of transmission service, requiring the RTOs to allow a reasonable amount of time to finalize agreements that are nearing completion when any tariff revisions are filed with FERC.

Each RTO order tees up five categories of reform for the grid operators to address:

• Developing efficient transmission service application and study processes, including consideration of alternative transmission technologies;
• Preventing cost shifting and requiring transparency into transmission costs;
• Accommodating colocation agreements and behind-the-meter generation;
• Providing new transmission services for flexible large loads; and
• Developing a process to study generating facilities that serve electrically proximate large loads and colocated loads.

It will be critical for all interested parties to timely intervene and participate in FERC’s show cause orders proceedings, as they will help shape the RTOs’ rules for data center and large load integration for years to come.

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