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ARTICLE · 10 JULY 2026

FERC Show Cause Orders On Large Load Interconnection: What Data Center Developers And Other Stakeholders Should Know

Bracewell LLP
Bracewell LLP
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Bracewell LLP

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The rapid growth of data centers, advanced manufacturing and other energy-intensive industries is reshaping electricity demand across the United States.

United StatesEnergy and Natural Resources

The rapid growth of data centers, advanced manufacturing and other energy-intensive industries is reshaping electricity demand across the United States. In response, the Federal Energy Regulatory Commission (FERC) has taken a significant step toward improving how large loads connect to the transmission system.

On June 18, 2026, FERC issued a series of Federal Power Act Section 206 show cause orders directing organized market operators to justify or reform their existing rules relating to large load interconnection. The orders reflect FERC’s preliminary view that current frameworks may be inadequate to address reliability, cost allocation and timing challenges associated with large load growth.

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