FERC Section 206 Show-Cause Orders on Large Load Interconnection (Docket RM26-4-000)
United States · FPA § 206 show-cause orders, FERC Docket Nos. EL26-67 through EL26-72 (June 18, 2026), advancing ANOPR Docket No. RM26-4-000
On June 18, 2026, FERC issued tailored show-cause orders under Section 206 of the Federal Power Act to the six major U.S. regional grid operators (PJM, MISO, SPP, CAISO, ISO-NE, and NYISO), directing each to either justify its existing large-load interconnection tariff as just and reasonable or file tariff revisions within 60 days. The orders target the surge in demand from AI data centers and large industrial loads, requiring reforms to study processes, cost transparency to prevent cost-shifting onto ordinary ratepayers, co-location and behind-the-meter accommodation, and new services for flexible large loads. FERC left retail cost-shifting protection to state regulators; reforms apply prospectively and do not disrupt existing deals.
Technical detail
FERC Docket No. RM26-4-000. Section 206 (16 U.S.C. § 824e) show-cause orders to PJM, MISO, SPP, CAISO, ISO-NE, and NYISO, each addressing five reform categories: (1) efficient application/study processes including alternative transmission technologies, (2) cost transparency and prevention of cost-shifting to ordinary ratepayers, (3) co-location agreements and behind-the-meter generation, (4) new transmission services for flexible large loads, and (5) study processes for generation serving electrically proximate or co-located loads. RTOs must respond within 60 days, with a separate 30-day deadline for resource-adequacy informational reports.
Who is protected: Electricity ratepayers in the six RTO/ISO regions — guards against large-load (data-center) interconnection costs being shifted onto ordinary customers
Who must comply: Regional transmission organizations / independent system operators (PJM, MISO, SPP, CAISO, ISO-NE, NYISO) and large-load interconnection customers
Key facts
| Jurisdiction | United States |
|---|---|
| Level | Federal |
| Status | In effect |
| Protection strength | Moderate protection |
| Effective date | 2026-06-18 |
| Enacted | 2026-06-18 |
| Citation | FPA § 206 show-cause orders, FERC Docket Nos. EL26-67 through EL26-72 (June 18, 2026), advancing ANOPR Docket No. RM26-4-000 |
| Enforced by | Federal Energy Regulatory Commission |
| Private right of action | No — agency enforcement only |
| Penalties | Tariff revisions ordered under FPA § 206; FERC may set just-and-reasonable rates if an RTO fails to justify its existing tariff |
| Topics | data-center siting and energy · consumer protection |
| Last verified | 2026-06-22 |
| Official source | FERC — 'Launches Aggressive Targeted Action to Speed Large Load Integration' (official news release, June 18, 2026) ↗ |
More AI rules in United States
- FTC Act Section 5 (unfair/deceptive AI) · In effect
- TAKE IT DOWN Act · In effect
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Related data-center siting and energy rules elsewhere
- SB 484 (FL Data Center Costs) · In effect
- Maine Data Center Moratorium (vetoed) · Vetoed
- VA Data Center Siting Bill (Vetoed) · Vetoed
- VA Data Center Tax Exemption · In effect
- VA Data Center Cost-Allocation Law · In effect
- Texas SB 6 (Data Center Grid Law) · In effect
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