Regs
Transmission expansion could spur billions in savings, especially in PJM: study
According to a study released Tuesday, a group of 13 "high-value" interregional and intraregional transmission projects in the Eastern Interconnection could generate up to $15.3 billion in net system value by 2050. The study also notes that these projects would lower retail electricity prices, enhance system reliability, and improve resilience to extreme weather events.
Large loads face reliability requirements under MISO proposal
MISO submitted an 'Interconnection Reliability Requirements' framework to FERC on Friday, proposing specifications such as ramping and ride-through for large load interconnection. The proposal responds to FERC's June 'show cause order' and references precedents from ERCOT and PJM. MISO defines large loads as those exceeding 50 megawatts, computing loads as loads with at least 25 megawatts of IT equipment electricity use, and plans to submit additional proposals by November 16.
Property risk in natural resources: The shift from severity to duration
Property risk in the natural resources industry is undergoing a critical shift from "severity" to "continuity." When processing facilities are damaged by wildfires or logistics hubs are hit by floods, physical losses are immediate, but the financial consequences—earnings compression, liquidity strain, contractual pressure, and rating sensitivity—often persist for multiple quarters. In capital-intensive industries with high asset concentration, property losses have become balance sheet events. However, many property insurance programs remain anchored to historical loss assumptions and standardized market structures, and this mismatch is amplifying volatility. Experts at Aon point out that relying solely on historical data is no longer sufficient to support future capital decisions, making forward-looking analysis and scenario stress testing increasingly critical. The industry is facing challenges such as extended reconstruction cycles and the systematization of concentration risk, and companies need to treat retention decisions as capital allocation decisions, proactively managing volatility through alternative solutions such as parametric insurance and catastrophe bonds.
Duke Energy Florida asks to punt on rate for large load customers
At a Tuesday hearing before the Florida Public Service Commission, Duke Energy Florida proposed not to set new rates for large-load customers, stating that its existing proposed rate provisions can prevent data center costs from being shifted to other ratepayers. Florida Public Counsel Walt Trierweiler countered that the proposal fails to meet the basic requirements of SB 484, and Duke's argument that a settlement agreement exempts it from statutory obligations is unfounded.
ISO-NE Submits Proposal to FERC to Review "Asset Condition" Transmission Projects
ISO New England has submitted a proposal to FERC to conduct independent reviews of "asset condition" transmission projects starting January 1, 2026, but with only advisory recommendations and no decision-making authority. This move has received unanimous support from stakeholders and is accompanied by legislative and oversight calls from Connecticut Senator Blumenthal.
FERC approves MISO cost recovery framework for transmission projects within PJM footprint
The Federal Energy Regulatory Commission (FERC) on Friday approved a cost allocation framework for transmission projects planned by the Midcontinent Independent System Operator (MISO) but to be built within the PJM Interconnection region. Under the framework, Exelon subsidiary Commonwealth Edison (ComEd) will build a portfolio of projects totaling approximately $904 million, while Duke Ohio will build projects valued at $5.3 million. FERC also rejected calls for competitive bidding on these projects.
Virginia Regulators Order Dominion to Directly Allocate Some Transmission Costs to Data Centers
On July 31, the Virginia State Corporation Commission (SCC) issued an order requiring Dominion Energy to adjust its transmission cost allocation policy, directly allocating the construction costs of certain transmission infrastructure, such as substations and transmission lines, to large-load users like data centers. The order also approved Dominion's revised 12CP allocation factor, reducing the typical residential customer's average monthly cost increase from $2.90 to $0.94, a decrease of 67.5%. Dominion must submit a revised line extension policy within 90 days.
PJM Proposes Strengthening Grid Connection Reliability Requirements for Data Centers and Cryptocurrency Loads After 3.8 GW Load Disconnection
PJM Interconnection stated that, following the disconnection of approximately 3,800 megawatts of data center load in northern Virginia on July 22 due to a 230 kV line fault, it is considering strengthening grid connection reliability requirements for computing loads such as data centers and cryptocurrency mining facilities, including ride-through standards. This event, the largest of its kind in PJM's history, has raised concerns about load sensitivity.
Texas data center grid connection pause may affect 20% of projects under construction nationwide
BloombergNEF (BNEF) said in an analysis on Wednesday that Texas's suspension of data center grid connection reviews could put about 20% of data center projects nationwide at risk of delay. Governor Greg Abbott announced the suspension on Monday, affecting nearly 49.8 gigawatts of projects and triggering a comprehensive audit of the ERCOT interconnection queue. BNEF estimates that if 60% of the delayed capacity is AI-related, data center revenue losses could reach $8 billion by the first quarter of 2027.
Texas Pauses Data Center Approvals Amid ~474 GW of Interconnection Requests
Texas Governor Greg Abbott ordered an audit of all data center projects in the ERCOT interconnection queue, as total interconnection requests reached approximately 474 GW, exceeding the state's historical peak electricity demand by more than five times, with about 90% of new electricity requests coming from data centers. ERCOT subsequently postponed the Batch Zero transmission planning study and plans to request a schedule waiver from the PUCT.