On November 1, 2024, FERC Commissioners led a technical conference at their headquarters in Washington, DC, on issues pertaining to co-locating large loads at generating facilities. FERC Commissioners asked questions of individuals across the energy industry into how large loads, and data centers in particular, are impacting the grid and how FERC can drive solutions in collaboration with state regulators. Panelists included representatives from RTOs/ISOs, independent power producers, public utilities, state public utility commissions, research organizations, and consumer advocates. Key points from each panel are summarized below.

The Commissioners’ opening remarks encouraged comments and noted the importance of this issue for national security, system reliability, and cost allocation fairness arising from large loads. Further, the Commissioners expressed the need for FERC to have a role in creating solutions on this topic.

Panel 1: Overview of Large Co-Located Load Issues

In the first panel, the Commissioners examined general issues pertaining to co-locating large loads with generating facilities, and discussed whether large loads will be viewed as backup generation or as taking electricity from the grid. Panelists noted the need for improved analytics and forecasting models to better understand how large loads will impact grid reliability. Panelists also explained that large loads can differ and that the grid may benefit from prioritizing certain types of large loads over others, especially those supporting national security.

Panel 2: Exploration of Issues Presented by Large Lo-Located Loads

The second panel focused on how large loads will impact independent power producers. Panelists discussed how FERC’s policies could be changed to address rate design, reliability, and resource adequacy. Panelists noted that data centers, which make up a large portion of incoming large loads, have major economic impacts and are often more concerned with the speed of connecting new generation than the cost. Panelists overwhelmingly agreed that an “all-of-the-above” approach, which includes more accurate load forecasts as well as a review of transmission rate design to analyze cost impacts, would be most beneficial in incorporating such large loads to the grid.

Panel 3: Roundtable with State Representatives

In the third panel, the Commissioners engaged with state public utility commissioners and consumer advocates on issues pertaining to collaboration, transparency of information, and the line between FERC and the states’ jurisdiction. Panelists also discussed cost allocation and resource adequacy advancements in their respective jurisdictions. All panelists agreed that the most effective way to tackle this issue is by states having the ability to build their own regulatory framework, while communicating and collaborating with the Commission and staff.

On November 8, 2024, FERC issued a formal notice requesting written post-conference comments, which are due on or before December 9, 2024. A webcast of the conference, designated Docket No. AD24-11, and comments filed to date, are available here.