From Interconnection Queues to Cost Allocation: FERC's Next Data Center Battleground

Date: 2026-05-08 | Author: John Patrick Herold | Source: Site News

Key Argument

After interconnection-queue reforms addressed generation-side bottlenecks, the regulatory battleground has shifted to who pays for transmission upgrades driven by hyperscaler data center load.

Core Developments

• Maryland OPC Section 206 complaint at FERC: PJM's Schedule 12 socializes billions in transmission upgrade costs across ratepayers, though concentrated Data Center Alley load in Loudoun County, VA is the primary driver.
• Oregon PUC approved a dedicated data center rate class for Portland General Electric, ring-fencing hyperscaler costs from general residential/commercial ratepayers — a potential national precedent.
• Meta + EDP Renewables closed a 250-MW solar PPA (third deal; 545 MW total), highlighting the disconnect between VPPA procurement and actual grid cost accountability.

Implications

• If FERC acts on the complaint or PJM reforms Schedule 12, all-in costs for 100-MW+ campuses will rise significantly.
• Future VPPA strike prices may need restructuring; change-in-law provisions become critical.
• Hyperscaler site selection must model full ring-fenced grid service costs.

Three Signals to Watch

1. FERC response to Maryland OPC complaint
2. Interventions from Virginia/New Jersey consumer advocates
3. Other state PUCs replicating Oregon's rate class model