How DOE’s Proposed Large Load Interconnection Process Could Unlock the Benefits of Load Flexibility

Publisher

Nicholas Institute for Energy, Environment & Sustainability, Duke University

iCopyright | Permalink: https://hdl.handle.net/10161/33530

In the United States, the current system for interconnecting large electric loads, like data centers, to the grid has left all sides frustrated. Data center developers are mired in slow interconnection processes. Meanwhile, electricity customers face rising rates and threats to grid reliability as the nation’s grid operators struggle to interconnect new power plants and batteries to the system quickly enough to meet rising demand.

One promising tool for changing this dynamic is load flexibility. By reducing or curtailing their electricity use during the small number of hours per year when electricity supply is limited, data centers and other large loads could obtain service without spurring a need for more power plant capacity. In some cases, committing to operate flexibly in response to grid needs could enable large customers to interconnect with fewer infrastructure upgrades, reducing project delays and electricity costs. 

On October 23, 2025, the Department of Energy (DOE) initiated a rulemaking proceeding to be undertaken by the Federal Energy Regulatory Commission (FERC) that will consider rules related to the interconnection of large loads. DOE directed FERC to pursue load flexibility, but provided little detail in how FERC should do so. This brief outlines policy considerations for FERC to evaluate and highlights processes and mechanisms that grid operators would need to develop in order to maximize the benefits of load flexibility for electricity consumers.

FERC has docketed the DOE Advanced Notice Of Proposed Rulemaking (RM26-4) and requested an initial round of comments by November 14, 2025, and reply comments by November 28, 2025. UPDATE: FERC has extended the initial comment period to November 21, 2025, with reply comments due by December 5, 2025.