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FERC opens technical conference, warns U.S. faces resource adequacy squeeze as data center demand surges
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Summary
FERC commissioners and RTO/ISO leaders met in Washington for a two‑day technical conference to probe resource adequacy: declining dispatchable capacity, steep near‑term load growth driven by data centers, interconnection delays and the need to update accreditation and market rules were central themes.
Federal Energy Regulatory Commission Chairman Christie opened a two‑day technical conference saying the nation faces growing resource adequacy challenges driven by rapid load growth and the loss of dispatchable generation. "We're heading for a reliability crisis," Christie said, adding that surging demand from large loads — notably data centers that run AI — is compressing the margin between supply and need.
Panelists from NERC, ISOs and RTOs described regional shortfalls and steps under way. NERC warned of increasing expected unserved energy and urged multi‑metric planning aligned to fuel and extreme‑weather risks. California ISO said it has added roughly 25 gigawatts of supply since 2020 and approved about $20 billion in transmission, while several RTOs described persistent interconnection backlogs and reforms intended to speed processing.
Speakers agreed on three near‑term priorities: retain existing generators where feasible, accelerate interconnection and construction of new capacity, and expand demand flexibility and storage. The conference also aired sharper questions about capacity markets: are current accreditation rules (including ELCC) capturing the reliability value that regions need, and should markets move toward seasonal or prompt auctions that better match when energy is required?
Panelists and commissioners emphasized that solutions will vary by region. In multistate RTOs, participants noted, divergent state policies complicate a single technical fix and may force political as well as technical responses. Several state regulators called for stronger formal state roles in RTO governance and clearer, earlier information flows so state planning and market signals align.
The Commission said it will use the record from the conference to inform possible filings and rulemaking. Panel chairs and participants urged fast action on interconnection automation, accreditation methods and transparent load‑forecasting practices so markets send clearer investment signals before shortfalls materialize.
Next steps: the conference continues with region‑specific sessions; stakeholders urged FERC, states and RTOs to pursue coordinated reforms — from accreditation and queue automation to demand‑side programs — to close near‑term reliability risks without unduly burdening customers.
