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In response to the Advanced notice of Proposed (ANOPR) initiated by FERC, the National Association of Regulatory Utilities Commission (NARUC) and National Conference of State Legislatures (NCSL) sound the alarm about the assertion that FERC has jurisdiction over the interconnection of large loads to the transmission system. 

NARUC – In comments passed by the Committee on Electricity on November 10, 2025 and adopted by the NARUC Board of Directors on November 11, 2025, NARUC states “to ensure that any Final Rule resulting from the ANOPR process is durable, legal, and does not unintentionally lead to resource adequacy challenges or more delays to the large load interconnection process, it is particularly important that FERC give thoughtful consideration to the concerns of the States and other interested parties.”

“[A]t least 20 states have approved or have pending large load tariffs or similar measures, which may include financial commitments, curtailment protocols, and minimum contract terms to allow for the rapid interconnection of large loads without compromising grid reliability or unduly burdening existing retail customers;

“[F]or all of the reasons stated above, the states strongly encourage FERC to carefully consider the perspectives of state regulators and other stakeholders to ensure any rulemaking proceeding does not inadvertently create additional challenges to resource adequacy, reliability, and affordability for retail customers”

NCSL Comments – “This new proposed rule would bring under federal jurisdiction an issue that is currently handled by the states and has been for decades. While NCSL understands the need for enhanced oversight over how large loads obtain power any such regulatory decisions by FERC should only come after close, careful and deliberate consultation with states early and often throughout the process of rule development to ensure individual and small rate payers are protected. Such actions should also not remove decision-making powers that have historically been left to the states.” 

In fact, the wording of the current ANOPR raises several questions: 

• If jurisdiction for interconnection of large loads is claimed by the FERC, what is the process for determining how those large loads will impact an already strained power supply, and who bears responsibility for managing and mitigating the ensuing reliability concerns? 
• Will NERC standards be developed to manage reliability issues? If so, would it need a change in statute to expand EPA OF 2005 Section 215 definition of what is covered in the standards, or would current language be sufficient? 
• How will FERC determine who is responsible for bearing the costs of increased power demand? FERC must work with states to create cost allocation methods that help ensure large-scale energy users are paying their fair share of costs using the “cost causation” and “beneficiary pays” principles while recognizing current jurisdiction on this issue. 
• If FERC claims the jurisdiction referenced in the ANOPR, how will the commission address inconsistencies in cost allocations and, again, will FERC ensure that the large energy users pay sufficiently with the cost causation and beneficiary pays principles? 
• Currently, managing the connection of large hybrid loads, such as those covered by this ANOPR, is left up to the states. If FERC claims jurisdiction over these connections, how will FERC ensure generation facilities have adequate interconnection points for these new loads?  
• In the event available generation capacity is insufficient to meet system demand because of the new load, which entity holds operational authority for determining customer prioritization during system restoration efforts? Does responsibility change if there are power interruptions that affect multiple states versus interruptions confined to one state?

NCSL recently passed a policy resolution focused on data centers and their impacts on power generation and grid resiliency. In addition to the above request for increased oversight of large load connections in close and consistent consultation withs states, we also request that the FERC includes in the final rule the following suggestions: 

1. Include state policy makers in all stakeholder discussions regarding data center placement and energy usage and refrain from pre-empting states on siting, permitting, taxation and other regulatory issues relating to the construction and operation of data centers. 
2. Recognize opportunities for data centers to contribute to grid stability and resiliency while mitigating the impact of data centers on rate payers and communities, as well as protect local consumers’ need for power when disruptions limit the amount of available power. 
3. Develop incentives and/or implement requirements for data centers regarding onsite generation of power, integration of energy-storage and demand-management systems at new data center projects. 
4. Require utility operators to file documentation related to data centers with appropriate state and federal regulatory agencies that detail terms and conditions of service and associated prices to facilitate transparency and protect rate payers. 
5. In cooperation with states and localities, encourage regional planning for power generation, including building national infrastructure in a way that makes sense for states and localities, nuclear power generation and valuing the grid as a national asset. This approach could disincentivize states from engaging in undue and damaging competition. 
6. In consultation with states and their national associations, establish guidance and oversight of sustainability practices, including reducing emissions, mitigating onsite water consumption, reducing noise pollution and other community concerns. 
7. Provide funding and resources to states to help data centers optimize operations through power management, workload optimization and other innovations. 
8. Require data centers to regularly report to the appropriate local, state and federal agencies on their electricity and water usage to ensure transparency and facilitate equity in costs. 
9. Provide funding and resources to Department of Energy labs and other relevant federal agencies to increase their capacity to work with states and provide technical assistance to help navigate future energy needs and supplies. 
10. Promote best-practice cybersecurity, physical security and supply-chain security measures to protect U.S. data center operations from foreign adversary access or compromise.” 

As previously reported, FERC released a Notice Inviting Comments in response to the DOE’s request to issue a notice of proposed rulemaking (ANOPR).  As further background, on October 23, 2025, the U.S. Secretary of Energy Chris Wright wrote a  letter directing FERC to initiate a proposed large load interconnection rulemaking.  This letter also included the proposed ANOPR, which FERC adopted in its entirety. The letter also points to the current regulatory regime as being somewhat dislocated: interconnection processes for new generating facilities are under FERC jurisdiction while the interconnection of large loads is conducted at the state level.

The adopted ANOPR contends that FERC has jurisdiction over the interconnection of large loads to the transmission system arguing the following:

• Large load interconnections are a “critical component of open access transmission service,” like electric generator interconnections standardized in Order No. 2003, that require minimum terms and conditions to ensure non-discriminatory transmission service.
• Large load interconnections directly affect wholesale electricity rates, and Section 201 of the FPA has vested exclusive authority in FERC to ensure wholesale rates are just and reasonable and not unduly discriminatory or preferential.
• The ANOPR does not impact state authority over retail electric rates because the proposal does not exert jurisdiction over any retail sales to the large load. Nothing in the ANOPR affects the expansion or modification of generation facilities, which is reserved to the states consistent with Section 201(b)(1) of the FPA.
• FERC’s jurisdiction over large load interconnections is consistent with the FPA’s core purpose that FERC shall have exclusive jurisdiction over the transmission of electric energy in interstate commerce.

RM26-4-000
(DOE Large Load ANOPR)