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Data centers, 'large loads' strain planning and markets; utilities, ISOs push deposits, cluster studies and flexibility
Summary
Utilities, RTOs and large‑load customers told FERC that fast‑growing data‑center applications (tens of gigawatts in some queues) present resource adequacy, transmission security and affordability challenges; panelists urged cluster studies, financial commitment gates, POI monitoring, and incentive‑based flexibility programs.
Data centers and other large electrical loads have moved from niche concerns to central reliability and planning issues, panelists told the Federal Energy Regulatory Commission at its Reliability Technical Conference.
Trisha Pridemore, president of the National Association of Regulatory Utility Commissioners and commissioner at the Georgia Public Service Commission, described Georgia’s approach to managing rapid growth: ‘‘Back in 2023, we had 63 data centers in the state of Georgia representing about, dollars 1,800,000,000.0 in GDP,’’ she said, and noted the state has approved large capacity additions and used interim integrated resource planning to keep pace.
Utilities and RTOs outlined three recurring remedies: tighten interconnection gates, require stronger financial commitments on speculative pipeline projects, and expand planning/transmission to create optionality.
ComEd’s president, Gil Quinones, said ComEd has studied roughly 28 GW of large‑load applications and is changing deposit and cluster‑study policies to reduce speculation and avoid cost shifting. ‘‘We are proposing a structure where we will require applicants to post security on a take or pay basis based on the projected revenues,’’ he said, adding the utility has opened a fourth cluster study in its territory.
Other industry proposals described at the conference included sliding‑scale deposits (to make speculative applications more costly), strategic transmission projects that share costs broadly, and enabling merchant transmission where appropriate. Dominion and other transmission owners emphasized engineering fixes: requiring high‑resolution point‑of‑interconnection monitoring, phasor and power‑quality data at the POI, and ride‑through requirements for large power‑electronic loads.
Panelists debated mandatory technical requirements versus market solutions. Data‑center operators said they can provide value—behind‑the‑meter backup generation, demand flexibility and curtailable services—but noted air‑permit rules and commercial service agreements create practical limits. QTS (a data‑center operator) described long‑term ‘‘take‑or‑pay’’ contracts and urged clearer communications protocols and aligned air‑permit rules so backup generation can be used when necessary.
Market impacts and affordability: several panelists warned higher supply costs in some markets, with ComEd citing a market monitor finding that ‘‘supply costs have gone up 60% year over year.’’ Panelists recommended a mix of demand‑side flexibility, direct contracts between large loads and suppliers, and state tools where merchant entry is insufficient.
Next steps: NERC and FERC staff have issued alerts and will collect data to inform guidelines; RTOs are developing internal processes to require staged financial commitments and improved load‑submission standards. Commissioners urged continuing collaboration among ISOs, utilities, large loads and states to avoid stranded costs and ensure customers aren’t left with higher rates.
No formal Commission votes were taken; the conference produced a list of near‑term workstreams that will feed into rulemaking, guidance and industry practices.
