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FERC fails to shield PJM consumers from data center transmission costs: ratepayer advocates

Published

21 July 2026

Topic

regulatory

Sectors

Cloud Infrastructure

Geography

United States

Source

Read at utilitydive.com

Verified

Fusion42 · 21 July 2026 · Fusion42 review

FERC's framework for data center grid connections in PJM fails to prevent transmission cost-shifting to residential and small-business ratepayers, state advocates argue; the regulator's order omits regional cost allocation rules for network upgrades driven by large load demand.

This Wire brief sits within Fusion42's coverage of Cloud Infrastructure.

◆ The Wire takeaway

If you're building data centers in the PJM region, FERC just signalled it won't force you to pay for the grid upgrades you trigger—that bill goes to existing ratepayers instead, which means your land and power costs stay artificially low until state-level fights force the rule to change. Lock in your sites and power contracts now; this regulatory loophole has a shelf life measured in months.

Coverage

1 source · 21 Jul 2026

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Topics

Cloud Infrastructuredata-center-gridtransmission-costspjm-interconnectioncost-allocationregulatory-gapratepayer-protection