Utility Dive•about 1 month ago
FirstEnergy asks FERC to require data centers to pay for transmission interconnection costs
Key Takeaway
FirstEnergy's proposal to make data centers pay for their transmission interconnection costs could significantly alter project financing and development strategies for all large loads seeking grid connection.
AI Summary
- •FirstEnergy has proposed to FERC that data centers and other large loads be directly responsible for their transmission interconnection costs.
- •The proposal adopts a cost allocation practice from the gas pipeline sector, potentially shifting significant infrastructure costs directly to large load developers.
- •This regulatory change, if adopted, could substantially increase the upfront capital expenditure and overall project economics for new data centers and similar large energy consumers.
- •FERC is anticipated to issue a broader decision on large load interconnection on June 18, which could incorporate or be influenced by FirstEnergy's cost allocation proposal.
Topics
datacenterfercinterconnectpolicyqueuetransmission
Article Content
FirstEnergy’s proposal adopts a cost allocation practice from the gas pipeline sector. It comes ahead of the Federal Energy Regulatory Commission’s expected large load interconnection decision on June 18.