Summary#
This bill directs the Federal Energy Regulatory Commission (FERC) to create rules for how very large electricity users (called "large load facilities") connect to the interstate transmission system. A large load facility is one or more sites with peak demand over 50 megawatts. The bill requires large-load customers to pay study costs and the full costs of network upgrades assigned to them. Interconnections cannot proceed if they would violate reliability standards. The bill sets technical and contractual tests for demand flexibility and curtailability, and it gives priority in interconnection queues to projects that provide battery backup, follow certain labor and apprenticeship rules during construction, or agree to labor peace agreements. The Department of Energy (DOE) may require data centers to provide energy and water use data and must create an AI-focused data-center-scale testbed at a national laboratory. DOE must report findings and recommendations to Congress and FERC.
What it means for you#
- Large electricity users (for example, big data centers or factories) will face new FERC-regulated interconnection rules before they can connect to the grid.
- Those large users will generally pay 100% of interconnection study costs and assigned network upgrade costs, and such payments are nonrefundable under the bill.
- Transmission providers must check that adding a large load does not break reliability rules and may require technical steps to confirm demand flexibility and curtailment capabilities.
- Colocated sites (where a large load is connected with generation on the same site) can get non-firm transmission access and may be paid wholesale prices for any excess energy they inject into the grid.
- Data centers may have to submit operational and energy-use data to DOE; DOE will also run an AI testbed to study energy-efficient AI and grid integration.
- Certain projects can get faster study processing if they have battery backup, meet wage and apprenticeship requirements during construction, or enter labor peace agreements.
Expenses#
- The bill requires large load customers to pay 100% of the costs of interconnection studies.
- The bill requires large load customers to be responsible for 100% of assigned network upgrade costs, and those payments are nonrefundable. The bill allows those costs to be collected through commission‑level payment mechanisms (upfront payments, structured surcharges, or similar tools).
- Colocated large loads may be charged on a gross-demand basis for ancillary and black start services even if they withdraw little or no net energy.
- DOE may provide technical assistance subject to the availability of appropriations.
- No publicly available information on total dollar amounts, budgetary estimates, or how costs will change overall.
Proponents' View#
The bill states that supporters want to protect grid reliability, keep electricity affordable for ratepayers, and ensure that rapid load growth from data centers and other large users does not undermine energy security or U.S. technological leadership. Proponents favor clear interconnection rules, strong cost assignment to large users, measures to discourage speculative queue requests, and research on energy-efficient AI and data-center operations.
Opponents' View#
No publicly available information.