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ARTICLE · 07 JANUARY 2026

FERC Orders PJM To Create Clear Rules For Co-Located Data Centers And Large Loads

Beveridge & Diamond, P.C.
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What's Happening: Stemming from its February 2025 show cause order concerning co-location issues, on December 18, 2025, the Federal Energy Regulatory Commission (FERC)...

United StatesEnergy and Natural Resources
Eric L. Christensen
Eric L. Christensen
David C. Weber
David C. Weber
Jason Frank
Jason Frank

Key Takeaways

What's Happening: Stemming from its February 2025 show cause order concerning co-location issues, on December 18, 2025, the Federal Energy Regulatory Commission (FERC) issued a final order finding that PJM's tariff is "unjust and unreasonable because it does not contain provisions addressing with sufficient clarity or consistency the rates, terms, and conditions of service for interconnection customers serving co-located load." FERC accordingly directed PJM to revise its tariff to establish transparent rules that support service for large loads — i.e., AI-driven data centers and other energy-intensive industries — co-located with generation.

New Transmission Services: FERC's order requires PJM to develop three new types of transmission service that PJM must offer as alternatives to traditional Network Integration Transmission Service (NITS):

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