EL26-69-000 · 2026-06-18 · FERC

NYISO 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)

Chang asks for evidence before narrowing the states’ role

Commissioner Judy Chang · Direct response

Chang supported developing a regional record. She welcomed evidence from state regulators on possible jurisdictional problems and distinguished the narrower preliminary findings from the broader federal authority contemplated in the national rulemaking.

PDF pp. 109–110, Chang concurrence

Who decides if a regulated generation solution will go forward?

New York Independent System Operator · Direct response

NYISO explained that if the market and transmission proposals cannot cover a reliability need, it may refer a non-transmission solution to the New York Public Service Commission. The state commission then considers the project and cost recovery. This is NYISO’s description of the process, not a state endorsement of a project.

PDF pp. 7–8

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 ¶ 61,216 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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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 1 See, e.g., PJM Interconnection, L.L.C., 190 FERC ¶ 61,115 (2025) (PJM Show Cause Order); PJM Interconnection, L.L.C., 193 FERC ¶…
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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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EL26-69-000 - 10 - notes that there are several challenges with its existing load interconnection process, such as: (1) the large volume of requests may delay the completion of the Load System Impact Study (Load SIS), which already requires approximately nine months to complete;28 (2) resource…
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B. Recent Proceedings Addressing Large and Co-Located Loads

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Representatives November 21 ANOPR Comments at 1. 36 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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On February 20, 2025, the Commission initiated a show cause proceeding against PJM and the PJM transmission owners regarding the lack of tariff provisions addressing with sufficient clarity or consistency the rates, terms, and conditions of service that apply to co-location arrangements.39 The…
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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). 55 Id.
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3. SPP Conditional High Impact Large Load Service

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SPP Conditional High Impact Large Load Service 18.
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II. NYISO’s Existing Processes

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II.
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A. Existing Tariff Processes

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Eligible Customers may request Firm Point-To-Point Transmission Service68 or NITS.69 Firm Point-To-Point Transmission Service and NITS are available to an Eligible Customer that is willing to pay Congestion Rent associated with its service.70 The charges for transmission services in NYISO (either…
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1. Firm Point-to-Point Transmission Service

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NYISO offers a standard Firm Point-to-Point Service Agreement to an Eligible Customer when it submits a completed application for Firm Point-to-Point Service.75 Firm Point-To-Point Transmission Service does not require NYISO to conduct a System Impact Study (SIS) or Transmission Service Study…
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2. NITS

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NITS requests do not require a NITS Study unless the Eligible Customer specifically requests that NYISO conduct such a study.92 In the event that the Eligible Customer requests a NITS Study, NYISO will coordinate with all affected transmission owners in performing the NITS Study, which will…
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3. Load Interconnection Process

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EL26-69-000 - 24 - data.100 After the Eligible Customer executes a System Impact Study Agreement with the transmission owner whose system the Eligible Customer proposes to interconnect (Connecting Transmission Owner) and submits a $150,000 study deposit, NYISO, in cooperation with the Connecting…
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4. Local Transmission Planning Process

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4.
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5. Generator Interconnection

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Pursuant to the Tariff, an interconnection customer may request, and NYISO may provide, provisional interconnection service for limited operation prior to the completion of the cluster study and prior to completion of requisite attachment facilities, distribution upgrades, system upgrade…
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6. Co-Located Load Interconnection Process

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NYISO does not have a process in place to evaluate large load co-located with generating facilities.118 Generator interconnection requests proceed through NYISO’s 113 Id. attach.
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B. Recent Stakeholder Proceedings in NYISO

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EL26-69-000 - 28 - and Behind-the-Meter Net Generation programs.123 NYISO explains that its current Behind-the-Meter Net Generation Resource participation is premised on a firm Host Load that does not participate in wholesale markets and is not easily controllable or responsive to market signals,…
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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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It also includes instances where an Eligible Customer requests a new or modified point of delivery to serve a large load, where a large load seeks a new or modified delivery point as an unbundled retail transmission service customer, or where large loads are otherwise included in an Eligible…
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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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Lastly, we are concerned that NYISO’s existing Tariff fails to deter speculative or duplicative requests for transmission service by Eligible Customers on behalf of large loads.
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B. Cost Shifting Risk Among Transmission Customers

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Cost Shifting Risk Among Transmission Customers 72.
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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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Several commenters discuss the risk of cost shifting among transmission customers that could result from transmission service requests by Eligible Customers on behalf of large loads.190 Commenters also argue that retail-level large load tariffs do not protect wholesale transmission customers from…
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C. Co-Location Arrangements and Load with Behind the Meter Generation

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See infra P 98. 201 PJM Co-Location Order, 193 FERC ¶ 61,217 at P 2; PJM Co-Location Rehearing Order, 195 FERC ¶ 61,209 at PP 91, 102.
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1. Definition

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The Generator of the BTM:NG Resource must be electrically located in the NYCA, have a minimum nameplate rating of 2 MW and a minimum net injection to the NYS Transmission System or distribution system of 1 MW.
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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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We preliminarily find that NYISO’s Tariff appears to be unjust and unreasonable because it lacks sufficient clarity and consistency as to the rates, terms, and conditions of service that apply to interconnection customers serving co-located load, including the scope of the analyses NYISO performs…
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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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Interconnection Customers Serving Electrically Proximate Large Load and Co-Located Load 114.
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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,262 and has approved…
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2. Definitions

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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,264 that is sufficiently electrically close to the interconnection customer’s requested point of interconnection, such that the impact on the…
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3. Tariff Provisions

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EL26-69-000 - 77 - what type of transmission service an Eligible Customer will need to take on behalf of the electrically proximate large load or large co-located load.281 We note that, in the PJM Co-Location Order, the Commission found that the Eligible Customer must take transmission service on…
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F. Informational Report

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The informational report must include a detailed schedule of such initiatives, including timing of the stakeholder process and dates of any anticipated filings 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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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 those issues if the…
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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 4.
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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 12.
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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 the AI race.
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