FERC issues 'show cause' orders to accelerate large-load interconnections to the grid, reducing queue delays.
On June 18, the Federal Energy Regulatory Commission (FERC) issued long-anticipated orders to accelerate the interconnection of data centers and other large loads, along with necessary generation resources, to the interstate transmission grid. Responding to a Department of Energy (DOE) proposal from late 2025, FERC issued "Show Cause Orders" to all six Independent System Operators and Regional Transmission Organizations (ISOs/RTOs) under its jurisdiction.
FERC found that ISO/RTO tariffs appear unjust, unreasonable, and/or unduly discriminatory because they fail to clearly, consistently, or comprehensively address key large load interconnection issues. Each ISO/RTO must file a response explaining why FERC's concerns are invalid or describing reforms FERC could impose under section 206 of the Federal Power Act. Different remedies may be imposed for each ISO/RTO based on their responses.
Expediting load interconnections—particularly for hyperscale data centers supporting artificial intelligence applications—is a major economic and national security priority for the Trump Administration. According to FERC Chairman Lauren Swett, "the status quo across much of the country is not good enough. Nowhere close," and FERC will demand "quick, efficient, and legally durable" changes. FERC believes ISOs/RTOs should complete transmission studies for large loads within 60-90 days and favors expedited generator interconnection pathways for resources associated with large loads.
FERC also acknowledges progress already made by various ISOs/RTOs, encouraging them to make voluntary section 205 filings to enhance interconnection arrangements beyond the Show Cause Orders' requirements. ISOs/RTOs may develop region-specific solutions rather than follow one-size-fits-all mandates, provided all reforms are prospective and do not disrupt existing commercial arrangements.
The Show Cause Orders address five broad topics: (1) developing efficient transmission service and study processes while considering advanced alternative transmission technologies; (2) preventing cost shifting and increasing transparency in transmission costs for large loads; (3) better accommodating co-location and behind-the-meter generation; (4) offering new transmission services for flexible large loads willing to limit grid usage under certain conditions; and (5) studying generating facilities serving electrically proximate and co-located large loads to reflect operational dynamics.
FERC is concerned that rapid large load additions without commensurate supply or demand-side resources will outpace regional planning capacity. ISOs/RTOs must submit detailed reports on resource adequacy proposals under consideration in stakeholder processes, including milestones, filing dates, and information on ongoing efforts to accelerate generation capacity additions. FERC also "strongly encourages" new section 205 proposals addressing this gap.
ISOs/RTOs and their member transmission owners have until August 17 to respond by either demonstrating their tariffs remain just and reasonable, or proposing remedial changes. Interested parties have 30 days to comment on responses. Resource adequacy reports are due by July 20. ISOs/RTOs may request an abeyance of up to 90 days (until November 16) by August 3 to develop and file section 205 proposals, though FERC signaled it will not grant requests "reflexively" and will strongly disfavor additional extensions.
FERC ultimately opted for Show Cause Orders rather than rulemaking, expecting faster implementation with reduced litigation risk and greater flexibility for regional responses. The proceeding will remain open for potential future actions in non-ISO/RTO regions, but the Show Cause Order dockets will be the primary vehicles for expediting large load interconnections to the FERC-jurisdictional transmission grid.