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FERC chair says regional transmission planning needed to manage data-center load growth

Federal Energy Regulatory Commission (FERC) · December 19, 2024

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Summary

Asked about data center development in rural areas, FERC Chairman Phillips urged long-term regional transmission planning and said large customers must 'pay their fair share' to balance reliability, affordability and national-security concerns.

Reporters asked whether FERC has data center development—particularly AI-intensive facilities—in its sights and how the commission would weigh developers' needs against impacts on rural communities with limited or aging infrastructure.

Chairman Phillips said the question concerned load growth and reiterated that long-term, regional transmission planning is critical to meeting demand and improving reliability. “If we do this right, if we plan for the long term, we can…increase the reliability for our customers,” he said, and added, “We have to make sure that these large customers pay their fair share.”

Phillips framed the issue as part of his transmission reform priorities and described the situation as both a reliability and national-security question, while noting the need to protect affordability for consumers. He said FERC should take a leadership role on the issue but did not announce a specific new rule or timetable during the session.

The remarks signal heightened attention inside FERC to how growing concentrated loads—such as data centers—interact with transmission planning and cost allocation across regions.