The Federal Energy Regulatory Commission issued six tailored 'show-cause' orders on June 18, compelling regional grid operators to accelerate interconnection for AI data centers and other large electricity users. Acting under Section 206 of the Federal Power Act, the agency gave operators 60 days to justify or reform their pricing structures for massive loads and 30 days to file reliability plans detailing how they will secure enough generation. The five commissioners voted unanimously, and FERC Chair Laura Swett framed speed-to-power as a national priority.
The orders went to PJM, the Midcontinent ISO, Southwest Power Pool, the California ISO, ISO New England and the New York ISO. Notably, they do not reach Texas, whose grid operates outside federal jurisdiction -- an exemption that further strengthens the state's pull for data-center development. FERC chose region-by-region show-cause orders over a slower rulemaking precisely to move faster.
“The orders went to PJM, the Midcontinent ISO, Southwest Power Pool, the California ISO, ISO New England and the New York ISO.”
The move crystallizes the defining tension of the AI buildout: compute is abundant relative to the firm, fast power needed to run it. By pairing acceleration with explicit anti-cost-shifting language, FERC is trying to clear the interconnection queue for hyperscalers without handing the bill to households -- a balance that will be litigated and lobbied for months.