Happy Friday. Today is Juneteenth, a day to commemorate the emancipation of enslaved African Americans in 1865. Want to learn more about what this meaningful day represents for American history? Check this out.
Now: Keep reading for all the details on one of FERC’s biggest moves in modern history.
— Molly, Carrie, and the Energy Central editorial team
Join us June 23 in Washington, D.C. as we bring together utility decision-makers for networking and meaningful conversations on the challenges shaping today's power sector.
FERC and ERCOT are getting bold to finally fix the grid squeeze. 🚨
After months of White House pressure, FERC is kicking off large-load interconnection reforms. Yesterday, the agency ordered all six regional grid operators to “justify”—or accordingly tweak—the rules dictating how large loads (cough, cough: data centers) link to the grid. Specifically, FERC is directing RTOs and ISOs to weigh their current tariffs against a specific set of demands, including:
1) Preventing cost shifting
2) Enabling co-location agreements and behind-the-meter power
3) Offering new transmission services for flexible large loads
All that needs to happen within 60 days. Plus, grid operators and transmission owners must explain within 30 days how they’ll “ensure that adequate generation will be available to serve existing and new large loads.” But some operators are already making progress on these aims, including SPP. The individual responses will likely vary: FERC emphasized that each grid is unique, so “a one-size-fits-all solution” won’t be the most efficient.
Meanwhile, down in the Lone Star State, the Public Utility Commission of Texas approved ERCOT’s Batch Zero Process. Now, grouped studies of large-user connection requests will allow ERCOT to examine the bigger picture, dole out grid capacity “fairly,” and pinpoint necessary transmission upgrades. The first group (the eponymous “Batch Zero”) is expected to include some 100 GW of “mature” projects.
Both moves have sparked positive feedback from energy pros. FERC’s order did surprise some experts, who didn’t expect such a detailed (and fast-paced) action. The bottom line: The reaction is “universally positive,” energy entrepreneur Jigar Shah (who consulted on the orders) told Energy Central. “This really pushes all the ISOs and RTOs to be more productive…and gives the hyperscalers far more clarity,” he said. “We wanted to see the hyperscalers start being better grid citizens, which is what this FERC order requires them to do.”
The throughline? Grid operators face an understandably tight deadline to meet FERC’s demands—but they can rip ideas straight from ERCOT’s playbook. “I think we’re telling everybody to just copy ERCOT,” Shah said.
To hear more of his grid wisdom, check out our Power Perspectives episode featuring Jigar Shah.
Can your substations withstand today's security threats? Register now to discover practical strategies for improving resilience, threat detection, and physical security across the grid.
With the Iran deal signed, oil futures fell to their lowest since the conflict began.
Back in action: The US has agreed to remove its naval blockade from the Strait of Hormuz and drop sanctions on Iran oil and petroleum exports. Now, ships appear to be trickling out of the Persian Gulf again (and turning on tracking devices after months of no signal).
The market reacts: Yesterday, Brent futures reached their lowest price since the conflict began, and WTI hit its lowest since early March.
Utility CEOs could see a massive payout from the grid revamp.
$1T: That’s how much utilities are set to spend over the next decade to upgrade and repair the grid. This increased spending boosts the value of publicly traded utilities.
Hence, $1B: That’s how much the CEOs of the 15 largest US power companies could rake in (in combined stock-based pay), according to a Reuters analysis. The average payout sits around $66M. Vistra CEO James Burke could pull in $100M, followed by the leaders at Constellation, NextEra, and Entergy.
What about customers? Utilities remain adamant that customers aren’t the ones paying CEO salaries (for the most part).
Here’s why data centers should run on solar—not gas.
A hot (solar ☀️) take: In the latest episode of Power Perspectives, host Kinsey Grant Baker chatted with climate tech investor Ramez Naam, one of the most rigorous trackers of clean energy cost curves. Hear why Naam thinks data centers should be looking at renewables (not behind-the-meter gas) to solve their speed-to-power problem: Tune in here 🎧
Disconnected network data is slowing utilities down. Learn how leading teams unify GIS, connect field to office, and improve speed and accuracy with this practical white paper—tap into the insights here
Thanks for reading. Enjoy your weekend!
Thank you to our sponsor:
