State Regulators Push Back on Federal Authority
State utility regulators across the country are warning the Federal Energy Regulatory Commission (FERC) not to overstep its authority as the agency seeks to connect massive data centers to interstate power transmission grids.
Members of the National Association of Regulatory Utility Commissioners (NARUC)—including Oklahoma Corporation Commission Chair Kim David—voted to support a resolution reminding FERC to respect state control over local power systems.
NARUC Resolution Calls for Balance and Oversight
Support for FERC Reliability Goals with Boundaries
NARUC members met recently in Seattle, where they expressed conditional support for FERC’s role in addressing reliability and cost pressures linked to the rapid expansion of data centers nationwide.
However, the resolution emphasized that existing utility customers—those already served by regional transmission organizations (RTOs) and local distribution networks—must be shielded from higher rates that could result from new high-demand interconnections.
Data Center Growth Raises Cost and Reliability Concerns
Grid Stability Threatened by Large Load Interconnections
The resolution warned that data centers’ massive power demands could strain existing generation capacity and undermine grid stability during peak demand periods or extreme weather events.
“Any large load interconnections without sufficient available generation capacity could threaten reliable power service to existing retail customers,” the resolution reads. “Grid operators may lack the resources needed to maintain system stability during peak demand or extreme weather events.”
NARUC’s position aligns with growing concerns among state regulators in Oklahoma, Texas, and the Midwest, where data center development is accelerating faster than local grid expansion.
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