The agency said the action is intended to speed integration of large loads while protecting existing customers from cost shifts and reliability risks.

But the orders do not apply to the fast-growing data center hub in Texas, "which operates a grid outside of federal jurisdiction," according to E&E News.

FERC stated each grid operator and its transmission owners must either explain why existing tariffs remain just and reasonable or propose revisions addressing concerns identified by the commission. 

The agency directed responses within 60 days and ordered grid operators to submit resource adequacy reports within 30 days, describing how they plan to ensure sufficient generation to meet existing and future large loads. 

The commission identified five areas for potential reform: transmission service application and study processes, including consideration of alternative transmission technologies; measures to prevent cost shifting and improve transparency; co-location arrangements and behind-the-meter generation; new transmission services for flexible large loads; and processes for studying generation facilities serving electrically proximate large loads.

FERC noted efforts already underway by some regional grids to fast-track large loads such as two Southwest Power Pool processes to support major new demand and overall reliability.

"We are setting the stage for a resilient, reliable and forward-thinking grid that empowers communities and safeguards consumers by transforming the way large energy users access the grid," FERC Chairman Laura Swett said in a statement.

The action stems from a rulemaking effort launched after Energy Secretary Chris Wright directed FERC in October 2025 to consider reforms aimed at ensuring timely and orderly interconnection of large loads, including AI data centers.

Wright argued that growing electricity demand from AI and domestic manufacturing would require unprecedented investment in the nation's transmission system and warranted federal action.

According to FERC, electricity demand growth is being driven in large part by rapid expansion of data centers and other large commercial and industrial loads. The commission's presentation accompanying the orders cites unprecedented demand growth and the challenges grid operators face in accommodating large-load connections while allocating costs fairly.

FERC said the orders affect regions serving about 200 million Americans across more than 30 states and the District of Columbia. The commission emphasized that the action is tailored to individual regional markets rather than imposing a single nationwide framework.

The orders do not assert federal jurisdiction over retail electric rates, terms or conditions, an issue that drew significant attention during the rulemaking process. Instead, the commission focused on transmission-level rules governing large-load integration and related planning processes.

Noted Rob Gramlich, president of market consultant Grid Strategies, the FERC orders are “right up to the line” of agency jurisdiction, stopping short of what Wright had proposed.

But Swett emphasized that FERC is "under no illusion" that large-load issues are limited to the RTO/ISO regions of the country, encouraging stakeholders elsewhere to report "barriers to entry," with the order intended to encourage, not constrain, new approaches, she claimed.