{"id":96552,"date":"2025-10-28T13:30:48","date_gmt":"2025-10-28T18:30:48","guid":{"rendered":"https:\/\/www.mcguirewoods.com\/?post_type=insight&p=96552"},"modified":"2025-10-28T13:31:21","modified_gmt":"2025-10-28T18:31:21","slug":"ferc-establishes-proceeding-to-consider-doe-directive-on-large-load-transmission-interconnection-rulemaking","status":"publish","type":"insight","link":"https:\/\/www.mcguirewoods.com\/client-resources\/alerts\/2025\/10\/ferc-establishes-proceeding-to-consider-doe-directive-on-large-load-transmission-interconnection-rulemaking\/","title":{"rendered":"FERC Establishes Proceeding to Consider DOE Directive on Large Load Transmission Interconnection Rulemaking"},"content":{"rendered":"\n

On Oct. 23, 2025, the Department of Energy (DOE) sent the Federal Energy Regulatory Commission (FERC) a proposed Advanced Notice of Proposed Rulemaking (ANOPR)<\/a> related to the interconnection of large loads and directed FERC to take final action no later than April 30, 2026. On Oct. 28, FERC established a new docket to consider DOE\u2019s ANOPR and issued a \u201cNotice Inviting Comments<\/a>\u201d (Docket No. RM26-4-000). In the notice, FERC set an initial comment date of Nov. 14 and a reply comment deadline of Nov. 28.<\/p>\n\n\n\n

DOE Secretary Chris Wright acknowledged<\/a> that historically, FERC \u201chas not exerted jurisdiction over load interconnections,\u201d but that it is his \u201cview that the interconnection of large loads directly to the interstate transmission system to access the transmission system and the electricity transmitted over it falls squarely within the Commission\u2019s jurisdiction.\u201d The letter further noted that \u201c[a]sserting [FERC] jurisdiction [over such interconnections] is in the public\u2019s interest\u201d to revitalize domestic manufacturing and drive American AI innovation, while doing so \u201cefficiently, fairly, and expeditiously.\u201d To that end, the DOE proposes 14 planning principles to apply to new large load interconnections on the transmission system, including the establishment of standardized procedures, agreements and requirements for large load (analogous to those for generator interconnection). The planning principles also cover cost responsibility and reliability issues<\/a>.<\/p>\n\n\n\n

While the ANOPR directs action by April 30, 2026, and acknowledges the possibility of additional transition periods, it also affirms that in the meantime, the proposal is \u201cnot intended in any way to discourage public utilities from making filings to address these and similar issues under [Federal Power Act (FPA)] Section 205.\u201d<\/p>\n\n\n\n

Read on to learn more about the DOE\u2019s support for its action, the 14 planning principles and specific requests for comment.<\/p>\n\n\n\n

Legal Authority for DOE\u2019s Proposed Actions<\/strong><\/p>\n\n\n\n

The DOE invokes Section 403 of the Department of Energy Organization Act, which permits the DOE to propose \u201crules, regulations, and statements of policy of general applicability with respect to any function within the jurisdiction of the Commission under section 402\u201d of the act. The DOE asserts four legal justifications for FERC\u2019s jurisdiction over large load interconnections at the transmission level:<\/a><\/p>\n\n\n\n

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1. Similar to generator interconnections, large load interconnections are a \u201ccritical component of open access transmission service\u201d that require minimum terms and conditions to ensure nondiscriminatory service.

2. The interconnection of large loads to the transmission system is a \u201cpractice directly affecting [FERC]-jurisdictional wholesale electricity rates,\u201d under FPA Section 205.

3. FERC jurisdiction over the interconnection process does not encroach on state authority over local distribution, generation siting or retail sales.

4. The proposal is consistent with the FPA\u2019s core purpose. Under the FPA, FERC has exclusive jurisdiction over the transmission of electric energy in interstate commerce, including the rates, terms and conditions of transmission service, and all facilities for such transmission or sale of electric energy at wholesale in interstate commerce. Accordingly, any large load that seeks to interconnect to the transmission system does so to obtain transmission service and the appurtenant benefits of such.<\/p>\n<\/div>\n\n\n\n

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Principles for Reform<\/strong><\/p>\n\n\n\n

The draft ANOPR establishes 14 principles for FERC to consider during a rulemaking process and poses topics for comment:<\/p>\n\n\n\n

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1. Any reforms should be limited to interconnections directly to transmission facilities, consistent with FERC\u2019s seven-factor test.<\/a><\/p>\n\n\n\n

2. Consistent with FERC\u2019s pro forma Large Generator Interconnection Procedures and Large Generator Interconnection Agreement, the reforms should only apply to new loads greater than 20 MW and, for co-located generation and load (referred to in the ANOPR as \u201chybrid facilities\u201d) where the load is greater than 20 MW.<\/a><\/p>\n\n\n\n