The Federal Energy Regulatory Commission on June 18 ordered the nation’s six regional grid operators to justify or revise the tariff rules that govern how data centers, factories and other large power users connect to the electric grid.
The commission gave grid operators 60 days to defend current tariffs or file changes, and 30 days to explain how they will ensure enough generation is available for existing and new large loads.
The action puts new focus on study timelines, cost allocation, co-location arrangements and flexible service options as electricity demand from AI and manufacturing projects rises.
The Federal Energy Regulatory Commission on June 18 launched a targeted push to speed how data centers, manufacturing plants and other large energy users connect to the grid, ordering the country’s six regional grid operators to justify or revise the tariff rules now governing those connections.
The FERC said, "The orders mark one of the most significant actions the Commission has taken to modernize the nation's electric markets and push the economy into the future by speeding integration of large energy users onto the grid with additional rigorous consumer safeguards."
According to a June 18, 2026, FERC statement and companion fact sheet, the orders are meant to accelerate large-load integration while protecting existing customers from unfair cost shifting. The commission regulates interstate electricity, natural gas and oil transmission, reviews natural gas infrastructure proposals, and licenses hydropower projects.
The speed-to-power orders apply to the six regional US grid operators, including PJM, MISO, SPP, CAISO, ISO New England and NYISO.
Each grid operator and its transmission owners now have 60 days to explain why current tariffs remain just and reasonable without rules tailored to large loads, or to file revisions addressing the commission’s concerns.
Within 30 days, they also must submit informational reports outlining how they plan to ensure adequate generation for both existing and incoming large-load customers.
The timing matters because the backlog for new power supply remains immense.
Lawrence Berkeley National Laboratory, in its report Queued Up: Characteristics of Power Plants Seeking Transmission Interconnection, said more than 2,060 gigawatts of generation and storage capacity was actively seeking grid connection at the end of 2025.
Before those projects can be built, grid operators and utilities typically require them to move through a series of impact studies to determine what transmission upgrades or new equipment may be needed and who will pay for them.
The Berkley Lab report also noted many proposed projects are ultimately withdrawn, while those that do get built are taking longer on average to complete studies and reach operation.
The orders mark one of the most significant actions the Commission has taken to modernize the nation's electric markets and push the economy into the future by speeding integration of large energy users onto the grid with additional rigorous consumer safeguards.
Federal Energy Regulatory Commission, June 18, 2026
That makes interconnection queues more than an energy policy issue. It suggests regulators are actively aiming to improve the speed and efficiency of the grid expansion seen accompanying AI-related electrification.
For data center developers, manufacturers and the contractors building the power, substation and transmission infrastructure around them, connection queue data is an important signal of how quickly future capacity may actually materialize.
FERC said the proceedings are designed to reflect regional differences rather than impose a one-size-fits-all framework.
Still, the commission identified five broad reform areas:
1. Faster transmission service application and study processes
2. Stronger protections against cost shifting
3. Better treatment of co-location and behind-the-meter generation
4. New transmission service options for flexible large loads
5. Improved study processes for generation serving nearby large-load facilities
The June 18 action builds on earlier commission moves, including a December 2025 order directing PJM to adopt more transparent rules for co-located loads and FERC’s approval of SPP’s High Impact Large Load initiative, which created new study processes for large loads and associated generation.
Federal regulators are trying to reduce one of the biggest bottlenecks facing power-hungry projects. If the resulting tariff changes hold, developers of data centers, industrial facilities and related energy infrastructure could see a clearer path from site selection to service availability.
Stay connected with ConstructConnect News for construction industry news and construction market analysis to stay ahead of what’s building next.
At ConstructConnect, our software solutions provide the information that construction professionals need to start every project on a solid foundation. For more than 100 years, our keen insights and market intelligence have empowered commercial firms, building product manufacturers, trade contractors, and architects to make data-driven decisions, streamline preconstruction workflows, and maximize their productivity. Our newest offerings—including our comprehensive, AI-assisted software—help our clients find, bid on, and win more projects.
ConstructConnect operates as a business unit of Roper Technologies (Nasdaq: ROP), a constituent of the Nasdaq 100, S&P 500, and Fortune 1000.
For more information, visit constructconnect.com