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FERC Delays Data Center Grid Connection Rules — Stakes Rise for State-Level Ratepayer Protections

FEDERAL Data Centers / Grid April 19, 2026 Source: Utility Dive

The Federal Energy Regulatory Commission announced it will take action in June on proposed reforms for connecting data centers and other large loads to the transmission grid, missing the Department of Energy's original April 30 deadline. The delay signals that the jurisdictional questions are more complicated — and more politically sensitive — than the original timeline assumed.

FERC Chairman Laura Swett: “I want to know exactly where the lines are of FERC jurisdiction versus state jurisdiction.” The National Association of Regulatory Commissioners urged FERC to respect state authority, noting that state commissions are “in the best position to ensure rational and efficient interconnections of new large loads while protecting all customers from improper cost-shifts."

The stakes are concrete. This week, we've tracked [large-load tariffs spreading to 60 utilities in 36 states](drafts://open?uuid=D6E775AC-7973-4587-B45D-7DD6967C2DF6), [Governor Shapiro forcing PECO to withdraw a $510 million rate hike](drafts://open?uuid=27E2B8EC-3855-400D-A6B6-DF96C87FC971), and [Michigan's AG challenging secret data center energy contracts](drafts://open?uuid=A1905E50-3335-4B4A-A81B-486F39A60282). All of those actions relied on state-level authority. If FERC preempts that authority, the toolkit communities have been using shrinks.

Community Takeaway

The June decision will be a defining moment. The [bipartisan Power for the People Act](drafts://open?uuid=0B2E1206-31D5-48B4-A66E-0A8CB0D61578) introduced April 15 would direct FERC to ensure data centers pay for local transmission upgrades — but that bill hasn't passed. In the meantime, the protections communities are relying on — state PUC rate cases, large-load tariffs, contested case hearings — all operate under state jurisdiction that FERC could narrow. Communities that have relied on state PUC proceedings to negotiate protections should be watching this closely.

Source: Utility Dive, April 19, 2026.

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