FERC to Address Data Center Interconnection in June

The Federal Energy Regulatory Commission (FERC) is preparing to take action in June on a Department of Energy (DOE) proposal concerning new electric interconnection standards. These new standards are specifically designed to address how very large new electric loads, such as those from data centers, connect to the power grid. The core of the discussion revolves around managing increasing demand from data centers while clarifying cost responsibilities, decision-making authority, and the roles of federal and state regulators. The article highlights the growing complexity as states and regional transmission organizations, like PJM, develop their own regulatory approaches. For Maryland, the implications of these new standards are significant, particularly given the strain data center growth has placed on the regional electric grid, including a past outage near Baltimore City. While counties typically cannot regulate the siting of electric generation facilities, they retain broad authority over the siting of large-load users like data centers. Local policymakers in Maryland are advised to monitor these developments closely, as energy availability and electricity costs become increasingly critical concerns.