US regulators push back on data center power and grid interconnection plans

· Energy · United States

Two US regulatory developments this week affect how large electricity users connect to the grid. FERC rejected most of PJM Interconnection's plan for curtailing large loads that lack matching new generation, saying it intrudes on state jurisdiction and appears discriminatory. Separately, a Virginia hearing on the proposed Dominion-NextEra merger focused on rates and data centers, with a state legislator raising concerns about the Virginia Clean Economy Act. The rulings and testimony underscore growing tension between surging data center demand, utility consolidation and state oversight of who pays for new supply.

Why it matters：It sets precedents for how grid operators can manage massive new data center loads and whether utility mergers pass regulatory scrutiny, shaping investment in generation and transmission.

Key points

  • FERC said PJM's large load curtailment plan intrudes on state jurisdiction and appears discriminatory.
  • The Dominion-NextEra merger hearing centered on rates and data centers.
  • A Virginia legislator cited concerns over the Virginia Clean Economy Act.

Sources (original reporting)

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