ER26-3650-000 · 2026-10-02 · Coalition of MISO Transmission CustomersIllinois Industrial Energy ConsumersAssociation of Businesses Advocating Tariff Equity ,NIPSCO Large Customer Group ,Louisiana Energy Users Group ,Texas Industrial Energy Consumers ,
Motion for Leave to Answer and Answer of Coalition of MISO Transmission Customers et al. to the Joint Protest of the Sierra Club et al
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UNITED STATES OF AMERICA
BEFORE THE
FEDERAL ENERGY REGULATORY COMMISSION
Midcontinent Independent System Operator, Inc.
)
Docket No. ER26-3650-000
MOTION FOR LEAVE TO ANSWER PROTESTS AND ANSWER
OF THE LARGE ENERGY USERS
Pursuant to Rules 212 and 213 of the Federal Energy Regulatory Commission’s (“FERC”
or “Commission”) Rules of Practice and Procedure,1 the Coalition of MISO Transmission
Customers (“CMTC), the Illinois Industrial Energy Consumers (“IIEC”), the Association of
Businesses Advocating Tariff Equity (“ABATE”), the NIPSCO Large Customer Group
(“NLCG”), the Louisiana Energy Users Group (“LEUG”), and the Texas Industrial Energy
Consumers (“TIEC”) (collectively, “the Large Energy Users”) hereby request leave to submit this
Motion for Leave to Answer Protests and Answer (“Answer”) to the Joint Protest of the Sierra
Club, Natural Resources Defense Council, Environmental Law and Policy Center, Clean
Wisconsin, Union of Concerned Scientists, Sustainable FERC Project, and Fresh Energy
(collectively “Public Interest Organizations”, or “PIOs”), and the Joint Protest of the Iowa Office
of Consumer Advocate (“Iowa OCA”), Office of the Illinois Attorney General (“IL OAG”),
Illinois Citizens Utility Board (“IL CUB”), Michigan Attorney General, Michigan Citizens Utility
Board (“MI CUB”), Minnesota Department of Commerce (“Commerce”), Citizens Utility Board
of Minnesota (“MN CUB”), Wisconsin Citizens Utility Board (“WI CUB”), Citizens Action
Coalition of Indiana, Inc., and Alliance for Affordable Energy (collectively the “Consumer Interest
Advocates”) (collectively both protesting parties shall be referred to as the “Protesting Public
Interest Parties”).
1 18 C.F.R. §§ 385.212 and 385.213.
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I.
MOTION FOR LEAVE TO ANSWER
The Large Energy Users respectfully request leave to file this Answer. Rule 213(a)(2)
generally prohibits answers to protests unless such answers have been authorized by the decisional
authority.2 However, the Commission exercises its discretion to grant motions for leave to submit
answers when doing so will clarify the issues, assist in the Commission’s decision-making
processes, or otherwise ensure an accurate and complete record.3
The Large Energy Users are a collection of ad hoc associations of large end-users of
electricity, including manufacturers and educational institutions operating on thin margins, that
consume substantial amounts of electricity at various facilities throughout the Midcontinent
Independent System Operator, Inc. (“MISO”) footprint. The Large Energy Users are also some of
the largest employers in the MISO footprint that continue to face increased operational costs as a
result of longstanding increases in the cost of electric service. The Large Energy Users will be
most directly affected by the FERC’s determinations in this proceeding regarding MISO’s
Interconnection Reliability Requirements for Large Loads Proposal (“IRR Proposal”). The Large
Energy Users support reforms that ensure just and reasonable practices that avoid adverse negative
economic consequences and unnecessary regulatory burdens to existing large loads, especially
existing manufacturing and educational institutional loads that have not triggered the regulatory and
legislative efforts responding to concerns associated with high-impact, large computational loads
whose electrical characteristics present system risks. The Large Energy Users worked diligently
with other stakeholders to achieve a compromise solution that MISO filed with FERC. The
2 18 C.F.R. § 385.213(a)(2).
3 See, e.g., PJM Interconnection, L.L.C., 145 FERC ¶ 61,035, at P 32 (2013); Wisconsin Pub. Serv. Corp., 144 FERC
¶ 61,093, at P 27 (2013); Iberdrola Renewables, Inc., 137 FERC ¶ 61,185, at P 17 (2011); Virginia Elec. and Power
Co., 125 FERC ¶ 61,391, at P 26 (2008).
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grandfathering provisions currently presented in the IRR Proposal strike a balance between
managing reliability issues caused by new Large Loads, while protecting commercial certainty for
existing manufacturers and industrial customers. Because the Protesting Public Interest Parties
broadly challenge the grandfathering provisions, the Large Energy Users provide their perspective
on the importance of those grandfathering provisions to the economic well-being of employers
throughout the MISO footprint and, therefore, ask the Commission to consider these comments in
issuing an order in this proceeding.
II.
ANSWER
A.
MISO’s Grandfathering/Transition Proposal is Just and Reasonable and
Consistent with the June 18, 2026 Show Cause Order’s Objective to Protect
Existing Commercial Arrangements.
The Commission explicitly stated that the Show Cause Order4 was issued to determine
prospective reforms related to Large Load interconnections and was not intended to disrupt
existing commercial arrangements. Further, the Commission instructed MISO to ensure that any
Tariff revisions accommodate existing commercial arrangements through a reasonable
implementation timeline. The relevant part of the Show Cause Order states the following:
We recognize that large loads, including data centers, are actively
working with transmission owners and other relevant entities to
interconnect to, and to take service from, the transmission system.
We appreciate that different large loads are currently at different
stages of that process. We also understand that large loads and
Eligible Customers taking transmission service on behalf of large
loads are negotiating, entering into, and/or have executed various
agreements related to interconnecting to the transmission system
and/or the provision of transmission service. This proceeding is not
intended to disrupt existing commercial arrangements, but rather to
establish prospective reforms. Accordingly, any Tariff revisions
offered by MISO and/or the Transmission Owners in response to
this proceeding should (a) propose a reasonable implementation
period to ensure minimal disruption to such existing commercial
4 “Order Instituting Proceeding Under Section 206 of the Federal Power Act,” Midcontinent Indep. Sys. Op. Inc. et al,
195 FERC ¶ 61,212, at P 5, Docket No. EL26-70-000 (June 18, 2026) (“Show Cause Order”).
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arrangements, and (b) allow a reasonable amount of time to
finalize ongoing agreements that are nearing completion as of the
date such Tariff provisions are filed with the Commission. Such
proposed Tariff revisions should include a reasonable effective
date that accommodates such considerations regarding these
existing commercial arrangements.5
In alignment with FERC’s directive, MISO’s IRR Proposal includes a grandfathering
provision which exempts two categories of Large Loads: 1) Large Loads with a Service
Commencement Date on or prior to December 4, 2026; and 2) Large Loads associated with
transmission projects either approved for MISO’s Transmission Expansion Plan (“MTEP”) 2026
or submitted for Expedited Project Review (“EPR”) prior to June 18, 2026.6 The former category
will be entirely exempt from reliability requirements, and the latter category will be exempt from
any applicable ride-through and ramp requirements.7 This grandfathering provision respects
existing customers and existing contracts and presents a reasonable timeline for agreements that
are in process to conclude before the implementation of new reliability requirements.
As emphasized by Google LLC: MISO’s “pragmatic approach” includes a “reasonable
grandfathering of existing customers in a manner that respects reliance interests and investments
made under the rules in effect at the time.”8 Further, the proposed grandfathering provisions
prevent adverse economic consequences and unnecessary regulatory burdens to Large Loads,
especially existing manufacturing and institutional loads that have not triggered the regulatory and
legislative efforts responding to concerns associated with high-impact, large computational loads.
For manufacturers that have been contemplating modest expansions, MISO’s proposal and FERC’s
5 Show Cause Order at P 5 (emphasis added).
6 MISO’s Interconnection Reliability Requirements for Large Loads, Docket No. ER26-3650, Accession No.
20260828-5278 (Aug. 28, 2026) (“IRR Filing”) at Tab A Tariff Redline at 37A(II).
7 Id.
8 Comments of Google LLC at 1, Docket No. EL26-3650-000, Accession No. 20260918-5386 at 1 (Sep. 18, 2026).
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Show Cause Order sends a critical signal of price and regulatory certainty for any investors
interested in trying to help onshoring and industrial revitalization in the United States. As such, the
currently proposed grandfathering provisions are consistent with the FERC’s unambiguous
directive in the Show Cause Order to protect existing load and existing arrangements.
B.
The Public Interest Organizations and Consumer Interest Advocates Have
Not Demonstrated that Existing Large Loads are Causing the Reliability
Concerns Targeted by the Show Cause Order.
Large manufacturers and industrial customers have existed within MISO’s footprint for
years, operating safely and reliably, and therefore those longstanding existing loads do not present
the same reliability concerns associated with the electrical characteristics and high-impact, speed-
to-power demands of certain large, emerging computational loads. The North American Electric
Reliability Corporation (“NERC”) has highlighted numerous reliability challenges presented by
emerging Large Loads, and electrical characteristics of computational loads specifically.9
The PIOs accurately discuss the Commission’s cost-causation principle10 and assert that
Large Loads must pay for reliability costs they impose on the transmission system.11 However,
the PIOs do not provide evidence that the existing Large Loads comprised of long-standing
industrial customers and manufacturers are causing the reliability issues facing the electric grid
today. The Show Cause Order is aimed at recent and exponential growth of Large Loads, not at
large customers who have been reliably participating in MISO for decades. Further, the Consumer
Interest Advocates generically assert a reliability threat caused by existing customers but fail to
9 NERC, Characteristics and Risks of Emerging Large Loads: Large Loads Task Force White Paper (July 2025),
available at: https://www.nerc.com/globalassets/who-we-are/standing-committees/rstc/whitepaper-characteristics-
and-risks-of-emerging-large-loads.pdf (last visited on Sept. 28, 2026).
10 Protest of Sierra Club, Natural Resources Defense Council, Environmental Law And Policy Center, Clean
Wisconsin, Union of Concerned Scientists, Sustainable FERC Project, and Fresh Energy at 6-7, Docket No. ER26-
3650, Accession No. 20260918-5397 (Sept. 18, 2026).
11 Id. at 7.
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substantiate it.12 Accordingly, the Protesting Public Interest Parties have not shown that the IRR
Proposal’s grandfathering provision should be rejected on reliability grounds.
To the extent that any new and additional reliability requirements are necessary, such
requirements can be further explored at the upcoming FERC Technical Conference in Docket No.
AD26-8-000 on October 21, 2026 and through NERC’s ongoing risk assessment of emerging Large
Loads.
C.
Concerns about Cost Shifting Risk among Transmission Customers are More
Appropriately Addressed in the Future Filing Directed by FERC and Planned
by MISO.
The Large Energy Users appreciate the cost shifting and transparency concerns raised by
the PIOs and Consumer Interest Advocates; however, these concerns are more appropriately
addressed in a future filing specifically focused on cost shifting risk among transmission
customers. MISO has proposed a cost shifting framework in its Large Load Working Group13
(“LLWG”) and plans to formally address cost shifting in a future FERC filing. Therefore, the
PIOs’ stated concern that the grandfathering provisions presented in the IRR Proposal may
“deprive electric consumers of the cost shifting and other consumer protections that MISO has
been directed to address in the Show Cause Order”14 is appropriately raised in MISO’s
forthcoming filing on that topic. The instant proceeding is about new interconnection reliability
12 See Joint Protest Of The Iowa Office Of The Consumer Advocate, Office Of The Illinois Attorney General, Illinois
Citizens Utility Board, Michigan Attorney General, Michigan Citizens Utility Board, Minnesota Department Of
Commerce, Minnesota Citizens Utility Board, Wisconsin Citizens Utility Board, Citizens Action Coalition Of Indiana,
Inc., And Alliance For Affordable Energy at 3-4, Docket No. ER26-3650, Accession No. 20260918-5323 (Sept. 18,
2026).("Consumer Interest Advocates Protest").
13 Cost Shifting Risk Among Transmission Customers was adopted as a new issue at the August 27, 2026, Large Load
Working Group. Next steps include gathering feedback, coordinating with Transmission Owners and OMS, and
presenting a proposal to the LLWG, with a filing deadline of November 16, 2026. See Midcontinent Indep. Sys.
Operator, Large Load Working Group, Large Load Working Group Minutes at 4-5 (Aug. 27, 2026),
https://cdn.misoenergy.org/20260923 LLWG Item 01c Minutes 20260827782601.pdf (last visited on Sept. 28, 2026).
14 Consumer Interest Advocates Protest at 3.PDF page 7
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requirements, not about cost shifting. Moreover, as emphasized earlier, there has been no
demonstration that existing customers (especially those that are not adding any material load
additions) are causing undue cost shifts, regardless of the scope of any new interconnection
reliability requirements imposed on those existing customers.
Accordingly, the Protesting Public Interest Parties have not shown that the IRR Proposal’s
grandfathering provision should be rejected on cost shifting grounds.
D.
MISO’s Proposal Reflects Feedback Provided During the Stakeholder
Process.
The Protesting Public Interest Parties overlook the extensive stakeholder feedback process
and feedback requests presided over by MISO and the Large Load Working Group.15 The
Commission affords an appropriate amount of deference to consensus-based proposals developed
during the stakeholder process.16 Concerns regarding grandfathering and avoiding retroactive
application of new rules were addressed early and throughout the stakeholder process, as
evidenced by the following responses from MISO:
May 26, 2026 MISO Response from 4/20/26 LLWG Feedback Request
(https://cdn.misoenergy.org/MISO Feedback Response Interconnection Reliability
Requirements (LLWG-2026-3) (20260420)760061.pdf)
o
On Slide 3, MISO highlights the general stakeholder feedback reflecting the
need for “clear screening mechanisms, transition rules, and avoidance of
retroactivity.” (emphasis added)
June 16, 2026 MISO Response from the May 14, 2026 LLWG Feedback Request
(https://cdn.misoenergy.org/MISO Feedback Response to LLWG Large Load
15 See MISO Transmittal Letter, Docket No. ER26-3650-000, at 2-4, 8-9, 22; see also Prepared Direct Testimony of
Beibei Li at 22:18-23:5, 34:12-39:22 (detailing the various stakeholder meetings, workshops, and feedback requests
since 2024).
16 See, e.g., Sw. Power Pool, Inc., 127 FERC ¶ 61,283, at P 33 (2009) (noting that the Commission “accord[s] an
appropriate degree of deference to RTO stakeholder processes”); see also Pub. Serv. Comm’n of Wis. v. FERC, 545
F.3d 1058, 1062-63 (D.C. Cir. 2008) (noting the Commission often gives weight to RTO proposals that reflect the
position of the majority of the RTO’s stakeholders) (quoting Am. Elec. Power Serv. Corp. v. Midwest Indep.
Transmission Sys. Operator, Inc., 122 FERC ¶ 61,083, at P 172 (2008)); see also Policy Statement Regarding Regional
Transmission Groups, 1991-1996 FERC Stats. & Regs., Regs. Preambles ¶ 30,976, at 30,872 (1993) (the Commission
will afford an appropriate degree of deference to the stakeholder approval process).
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Interconnection
Reliability
Requirements
Tariff
Draft
(LLWG-2026-3)
(20260514)764417.pdf)
o
On Slide 4, MISO in the first item denotes proposed growth bandwidth for
existing loads before new rule applicability.
August 6, 2026 MISO Response from the June 29, 2026 LLWG Feedback Request
(https://cdn.misoenergy.org/LLWG Large Load Interconnection Reliability
Requirements Tariff Draft Response (LLWG-2026-3) (20260629)774218.pdf)
o
On Slide 5, MISO emphasizes the feedback theme on protecting existing
arrangements, including the development of specific grandfathering and
transitional measures for existing loads.
The Protesting Public Interest Parties do not explain or point to any feedback or rationale
in the MISO stakeholder process indicating, showing, or demonstrating any compelling reliability
or cost shift reasons that overcome the general theme flowing out of the stakeholder process
regarding the importance of grandfathering, a reasonable transition mechanism, and protecting
existing loads and commercial arrangements.
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III.
CONCLUSION & REQUEST FOR RELIEF
WHEREFORE, the Coalition of MISO Transmission Customers, the Illinois Industrial
Energy Consumers, Association of Businesses Advocating Tariff Equity, the NIPSCO Large
Customer Group, the Louisiana Energy Users Group, and the Texas Industrial Energy Consumers
respectfully request that the Commission grant this Motion for Leave to Answer and consider this
Answer and our underlying Joint Comments, Requests for Clarification, and Limited Protest when
issuing and order in this proceeding.
Respectfully submitted,
/s/ Kenneth R. Stark
Kenneth R. Stark
Victoria A. Geddis
Rebecca Kimmel
McNees Wallace & Nurick LLC
100 Pine Street
Harrisburg, PA 17101
Telephone: (717) 237-8000
kstark@mcneeslaw.com
vgeddis@mcneeslaw.com
rkimmel@mcneeslaw.com
Counsel
to
the
Coalition
of
MISO
Transmission Customers and on behalf of the
Large Energy Users
/s/ Katherine L. Coleman
Katherine L. Coleman
John Russ Hubbard
O’Melveny & Meyers LLP
303 Colorado St., Suite 2750
Austin, TX 78701
Telephone: (737) 261-8600
kcoleman@omm.com
jhubbard@omm.com
Attorneys
for
Texas
Industrial
Energy
Consumers
/s/ Edward Fitzhenry
Edward Fitzhenry
Attorney at Law
Telephone: (314) 707-1212
edfitzhenrylaw@gmail.com
Counsel to the Illinois Industrial Energy
Consumers
/s/ Randy Young
Randy Young (#21958)
Carrie R. Tournillon (#30093)
Gordon D. Polozola (#23900)
KEAN MILLER LLP
Post Office Box 3513
Baton Rouge, LA 70821
Telephone: (225) 387-0999
randy.young@keanmiller.com
carrie.tournillon@keanmiller.com
gordon.polozola@keanmiller.com
Attorneys for Louisiana Energy Users Group
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/s/ Benjamin J. Holwerda
Benjamin J. Holwerda (P82110)
Clark Hill PLC
215 South Washington Square, Suite 200
Lansing, MI 48933
Telephone: (517) 318-3012
bholwerda@clarkhill.com
Counsel to the Association of Businesses
Advocating for Tariff Equity
/s/ Joseph P. Rompala
Joseph P. Rompala, Ind. Atty. No. 25078-49
LEWIS & KAPPES, P.C.
One American Square, Suite 2500
Indianapolis, Indiana 46282-0003
Telephone: (317) 639-1210
JRompala@Lewis-Kappes.com
Counsel to NIPSCO Large Customer Group
Date: October 2, 2026
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CERTIFICATE OF SERVICE
I hereby certify that I have this day served the foregoing document upon each person
designated on the official service list compiled by the Secretary in this proceeding. Dated this 2nd
day of October 2026.
/s/ Victoria A. Geddis
Counsel to the Coalition of MISO
Transmission Customers