The Nickel Report

On June 18, the Federal Energy Regulatory Commission (FERC) took long-anticipated action to speed the interconnection of data centers, other large loads, and the generation resources necessary to power them to the interstate transmission grid. FERC has responded to a late 2025 proposal from the Department of Energy by issuing “Show Cause Orders” to each of the six Independent System Operators and Regional Transmission Organizations (ISOs/RTOs) subject to its jurisdiction. The Show Cause Orders find that ISO/RTO tariffs appear to be unjust, unreasonable, and/or unduly discriminatory because they do not clearly, consistently, or completely address key large load interconnection issues. Each ISO/RTO must file a response that explains why FERC’s concerns are invalid or describes reforms that FERC could impose under section 206 of the Federal Power Act.

The Virginia Department of Environmental Quality has recently published guidance that addresses data center backup power and what constitutes an “emergency” justifying the use of emergency generators.