New England Grid Operator Outlines Plan to Comply With FERC Order on Large Loads

ISO New England on July 21 reported that it is taking steps to comply with a June 18 order from the Federal Energy Regulatory Commission requiring grid operators to assess whether existing rules can accommodate the rapid expansion of large electricity users, including data centers and other energy-intensive facilities. In an informational filing, the grid operator outlined how its current resource adequacy framework supports investment in new generation while helping retain existing power plants. The filing also indicates that anticipated growth in large loads may necessitate targeted policy changes to maintain system reliability and prevent additional costs from being shifted to existing customers.

Although large-scale data center development has not yet emerged in New England, ISO-NE emphasized the importance of preparing for potential growth. The operator highlighted two key policy considerations: requiring new large-load customers to supply their own incremental generation and excluding those loads from participation in the regional capacity market. These measures are intended to ensure that existing consumers are not required to subsidize the increased demand associated with large new facilities.

The filing forms part of a broader compliance effort initiated by FERC, which directed grid operators to either demonstrate that current rules adequately address large-load interconnections or propose reforms. During a July 16 meeting of the New England Power Pool Transmission Committee, ISO-NE outlined plans to collaborate with participating transmission owners to request a 90-day pause in the proceeding. This pause would allow time for stakeholder discussions ahead of a planned Nov. 16 filing proposing tariff revisions under the Federal Power Act.

The forthcoming filing is expected to address five areas identified by the federal regulator: improving transmission study and interconnection processes, enhancing transparency and preventing cost shifting, accommodating co-located facilities and behind-the-meter generation, establishing new transmission services for flexible large loads, and developing a framework to study generating facilities serving nearby large-load customers.