California Grid Operator Advances Measures to Speed Large Load Grid Connections

The California Independent System Operator Board of Governors on Oct. 28 advanced measures to accelerate grid connections for large electricity users, including data centers and manufacturing facilities, while maintaining reliability and protecting existing customers from additional costs. CAISO plans to submit the measures to the Federal Energy Regulatory Commission by Nov. 16.

The federal regulator’s June order directed CAISO and five other regional grid operators, along with their transmission owners, to demonstrate that their procedures can accommodate large loads without compromising reliability or shifting costs to other customers. The directive addresses growing electricity demand and the infrastructure needed to connect new industrial and computational facilities.

A flexible interim load interconnection framework would allow large electricity users to connect to the transmission system before associated network upgrades are completed. These customers would face enforceable operating restrictions based on grid conditions and transmission constraints until the required upgrades become available, enabling earlier connections while managing reliability risks.

CAISO would also strengthen coordination with utilities on interconnection applications, technical studies, operating standards, and reliability requirements. A cost-allocation framework would prevent new large loads from shifting associated expenses to existing customers. Additional information and application requirements for facilities combining electricity generation and consumption would improve grid visibility. Future policy development would examine arrangements involving generation and loads located separately but nearby.

To accelerate infrastructure assessments, CAISO proposes a monthly review window for transmission additions and upgrades associated with large loads outside the regular transmission planning cycle. The process would help accommodate federal requirements for transmission owners to complete load interconnection studies within 60 to 90 days.

Operational requirements would include hourly forecasts, telemetry, and other data to improve visibility into large-load behavior. Communication protocols would enable CAISO to coordinate with transmission owners to remotely disconnect loads when necessary to protect reliability. Maintaining communication channels between CAISO and transmission customers would further support system operations.

The board-approved measures will undergo federal review to determine whether they satisfy the June order. The outcome could shape how California accommodates rising electricity demand while balancing faster grid connections, reliability, and customer protections.