Utility Dive•1 day ago
Illinois AG files objections to ComEd data center agreements at FERC
Key Takeaway
Regulatory scrutiny over data center transmission agreements at FERC could lead to revised cost recovery models, impacting connection costs and financial certainty for large power consumers.
AI Summary
- •The Illinois Attorney General has filed objections at FERC regarding ComEd's data center agreements, arguing current payment models do not guarantee sufficient revenue to cover transmission costs.
- •These agreements involve minimum payment commitments and security deposits from data centers if their actual usage falls short of projections.
- •This regulatory challenge introduces uncertainty for data center developers and large power consumers regarding the financial terms and cost recovery mechanisms for grid interconnection and transmission services.
- •The outcome of FERC's review could set precedents for how large loads, particularly data centers, are charged for transmission infrastructure and the financial assurances required.
Topics
datacenterfercinterconnectpolicytransmission
Article Content
The agreements are based on payment models in which the offtaker promises to pay a minimum and post security if its usage does not match its commitment. The state argues this does not guarantee enough revenue to cover the transmission costs.