EL26-72-000 · 2026-06-18 · FERC

ISO-NE show cause order

Topics in the text: Connecting load and generation · Cost allocation · Filing procedure

Responses and related views

Eolian wants nearby generation considered for permanent service

Eolian · Direct response

Eolian sought clarification that generation located electrically close to a large load could qualify for permanent limited service if it could constrain grid withdrawals over the long term. FERC dismissed the request because the preliminary order was not final.

Eolian request and FERC discussion (unpaginated)

LaCerte urged timely regional answers

Commissioner David LaCerte · Direct response

LaCerte supported the order as a way to identify gaps in large-load tariffs. He expected a timely response with evidence about the region’s own rules, not a final nationwide tariff imposed in June.

PDF pp. 112–114, LaCerte concurrence

Source sections

Printed headings where available; page ranges otherwise. Excerpts below are selected from the text by keyword.

Opening text

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195 FERC ¶ 61,215 UNITED STATES OF AMERICA FEDERAL ENERGY REGULATORY COMMISSION Before Commissioners: Laura V.
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D. Extending New Transmission Services to Eligible Customers Taking Service on

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D.
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E. Interconnection Customers Serving Electrically Proximate Large Load and Co-

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EL26-72-000 - 3 - Over the past year, the Commission has taken action in numerous dockets1 to address issues related to (a) unprecedented increases in requests for transmission service to serve large loads2 and (b) growing interest in the co-location of loads with generating facilities (co-location…
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I. Background

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I.
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Background

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Background
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A. Growth of Large and Co-Located Loads and ANOPR

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Dep’t of Energy, Resource Adequacy Report: Evaluating the Reliability & Security of the United States Electric Grid (July 2025), www.energy.gov/sites/default/files/2025- 07/DOE%20Final%20EO%20Report%20%28FINAL%20JULY%207%29.pdf). 15 Id. (citing NERC, 2024 Long- Term Reliability Assessment 8 (Dec.…
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B. Recent Proceedings Addressing Large and Co-Located Loads

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Representatives November 21 ANOPR Comments at 1. 41 See, e.g., AI Supply Chain Alliance November 21 ANOPR Comments at 2; DCC November 21 ANOPR Comments at 3; ECA November 21 ANOPR Comments at 6; Geronimo November 21 ANOPR Comments at 1-2; Google November 21 ANOPR Comments at 2-3; Verrus December 5…
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1. PJM Co-Location Proceedings

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EL26-72-000 - 14 - Specifically, the Commission found that the PJM tariff was unjust and unreasonable because there is a lack of sufficient clarity or consistency as to the rates, terms, and conditions of service that apply to interconnection customers serving co-located load.47 The Commission also…
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2. SPP High Impact Large Load and High Impact Large Load Generation Assessment Processes

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P 32 (explaining that SPP will grant HILLGA customers a new type of interconnection service, load limited resource interconnection service, which grants limited interconnection service solely to serve the associated HILL). 60 Id.
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3. SPP Conditional High Impact Large Load Service

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For the HILL supplemental load connection study, SPP allows the host transmission owner to require a $25,000 study deposit.
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II. ISO-NE’s Existing Processes

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II.
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A. Existing Tariff Processes

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EL26-72-000 - 24 - upgrades, distribution upgrades, or system protection facilities.107 In evaluating a request for provisional interconnection service, ISO-NE and the Interconnecting Transmission Owner shall determine, through available studies or additional studies as necessary, whether…
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B. Recent Stakeholder Proceedings in ISO-NE

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As such, and as the Commission explained in the April Order Regarding Intent to Act, we find that the Commission must now take further action to ensure that ISO-NE promptly proposes revisions to ensure that its Tariff remains just and reasonable.
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III. Discussion

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III.
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Discussion

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We emphasize that we will not grant such abeyances reflexively, that any abeyance will be limited to 90 days, and that we will look with great disfavor toward requests to extend the abeyance period.
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A. Transmission Service to Eligible Customers on Behalf of Large Loads

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Co., 46 FERC ¶ 61,153, order on reh’g, 47 FERC ¶ 61,275 (1989). 119 As discussed below, our findings here also apply to the study process for unbundled retail transmission service requests by end-use large load customers, as allowed by state law or voluntary utility rules.
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1. Jurisdiction

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Specifically, we find that it is within the Commission’s exclusive authority to ensure that transmission provider and/or transmission owner tariffs include sufficiently clear and consistent provisions governing how transmission service to Eligible Customers on behalf of large loads interconnecting…
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2. Tariff Provisions

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EL26-72-000 - 36 - study process, wasting time and resources for transmission providers;148 result in inaccurate study results or delays for other Eligible Customers seeking transmission service on behalf of load;149 create a substantial risk of cost shifts if the large load additions do not…
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B. Cost Shifting Risk Among Transmission Customers

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Cost Shifting Risk Among Transmission Customers We next preliminarily find that ISO-NE’s Tariff appears to be unjust and unreasonable because it lacks adequate mechanisms to mitigate the risk of cost shifting among transmission customers, which may result in unjust and unreasonable rates for…
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1. Jurisdiction

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To fulfill its responsibility to ensure that transmission rates are just and reasonable, the Commission must act to address the risk of cost shifting among transmission customers due to (1) the process transmission providers and/or transmission owners use to evaluate the facilities needed, and the…
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2. Additional Cost Transparency

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The speed and scale with which Eligible Customers are seeking transmission service on behalf of large loads makes it difficult for interested parties, including transmission customers and state regulators, to accurately assess which transmission costs are driven by requests for transmission service…
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3. Cost Recovery Agreements

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EL26-72-000 - 50 - in the record contend that, while a retail-level large load tariff protects the load serving entity taking wholesale transmission service and its retail customers, it fails “to provide any mechanism to protect other wholesale transmission customers” from stranded transmission…
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C. Co-Location Arrangements and Load with Behind the Meter Generation

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We direct ISO-NE and the Participating Transmission Owners, to the extent the matters addressed herein implicate aspects of the Tariff over which they have the filing rights, to explain whether the Tariff remains just and reasonable without provisions addressing the rates, terms and conditions that…
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1. Definition

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See infra P 88. 193 PJM Co-Location Order, 193 FERC ¶ 61,217 at P 2; PJM Co-Location Rehearing Order, 195 FERC ¶ 61,209 at PP 91-102. 194 PJM Co-Location Order, 193 FERC ¶ 61,217 at P 164 (alterations in original). 195 Id.
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2. Jurisdiction

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As we explained in the PJM Co- Location Order, states retain exclusive authority over the specific terms of retail sales and retail rate design, including retail cost allocation to the co-located load; which entities are legally permitted to provide electricity to retail customers in co-location…
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3. Tariff Provisions

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Additionally, in the PJM Co-Location Order, the Commission found that it was necessary to clarify that interconnection customers seeking to use new generating facilities to serve co-located load may (1) request interconnection service at a level below the generating facility’s maximum facility…
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D. Extending New Transmission Services to Eligible Customers Taking Service on Behalf of Flexible Large Loads

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Finally, we note that the Commission has found it just and reasonable that, in order for an Eligible Customer to take interim NITS, firm contract demand transmission service, and non-firm contract demand transmission service, an Eligible Customer must have necessary control technologies and/or…
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E. Interconnection Customers Serving Electrically Proximate Large Load and Co-Located Load

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EL26-72-000 - 64 - together present a more complete picture of the grid and can enable the identification of more accurate, efficient, and cost-effective transmission solutions by minimizing system impacts.233 As a result, this can speed up the interconnection process for both large loads and…
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1. Jurisdiction

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The Commission has exercised this jurisdiction previously in requiring generator interconnection services that allow certain generating facilities to interconnect more quickly through the use of provisional interconnection service and surplus interconnection service,254 and has approved…
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2. Definitions

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Definitions For purposes of this order, it appears to be reasonable to use the term “electrically proximate large load” to mean a large load, as defined in this order,256 that is sufficiently electrically close to the interconnection customer’s requested point of interconnection, such that the…
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3. Tariff Provisions

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EL26-72-000 - 73 - electrically proximate large load or large co-located load.273 We note that, in the PJM Co-Location Order, the Commission found that the Eligible Customer must take transmission service on behalf of co-located load that will not withdraw energy from the transmission system, even…
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F. Informational Report

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The informational report must include a detailed schedule of key milestones, such as stakeholder or ISO-NE Board votes, that includes the estimated date on which ISO-NE expects to file any such proposals with the Commission.
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IV. Briefing Questions

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We find that there may be a variety of possible approaches to protect customers from significant cost shifts associated with network upgrades triggered by large loads.
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I. Overview of Today’s Orders

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Overview of Today’s Orders In each of today’s orders to show cause, the Commission identifies a series of issues raised by the ongoing growth of large loads, directs briefing on whether existing tariffs remain just and reasonable in light of those developments, and describes possible solutions to…
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II. The Commission Needs Good Records to Ensure Reasoned Decision-Making

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The Commission Needs Good Records to Ensure Reasoned Decision-Making I first want to emphasize that the Commission needs active participation from interested stakeholders to develop thorough records in each region.
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III. The Commission Needs to Pursue Meaningful Customer Protection

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As we develop the new infrastructure, many have raised concerns about whether these costs are being fairly assigned to new and existing customers, whose benefits must be commensurate with the costs they pay.
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IV. The Commission Needs to Understand the Implications of Extending New Transmission Services to Additional Loads and Regions

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While it is important to identify innovative solutions that can adapt to the needs of the system, the Commission and grid operators must also be careful not to implement changes that create unforeseen reliability risks.
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V. The Orders Recognize the Importance of Evaluating Advanced Transmission Technologies

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The Orders Recognize the Importance of Evaluating Advanced Transmission Technologies Lastly, today we preliminarily find that each RTO/ISO’s tariff is unjust and unreasonable because the tariff lacks clear and consistent provisions requiring the evaluation of alternative transmission technologies…
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VI. Conclusion

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VI.
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Conclusion

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While this is a long journey, even so, we must continue to move at breakneck pace to win 5 See, e.g., NRG Power Mktg, LLC v.
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