Power for Tomorrow Statement on FERC’s Show Cause Orders

Power for Tomorrow applauds FERC for today’s thoughtful and well-calibrated response to the growing challenge of integrating large load customers — primarily data centers — into electricity markets without compromising grid reliability or further impacting existing customers. 

FERC made clear that a sweeping, one-size-fits-all response to the DOE-requested ANOPR wouldn't make sense. Instead, it opened individual show cause orders for each of the six markets under its jurisdiction. These markets are not similarly situated and addressing them together in a single docket would obscure more than it reveals.

As a next step, FERC directed each market to produce a report on resource adequacy within 30 days — a telling and compelling place to start, given that not all markets are on equal footing. In particular, this will place PJM in the spotlight, having come up 6.6 GW short in its last capacity auction. Then, within 60 days, each market must respond to its individual show cause order. 

Power for Tomorrow President Brad Viator commends FERC on the steps it took today: “FERC acted wisely and soundly to focus on addressing what’s broken in the markets. FERC’s process puts every market on the hook to show that it can integrate data centers and other large loads swiftly, reliably, and with protections for other customers. Some markets are doing better than others. And the differences between them are worth FERC scrutiny. PFT looks forward to engaging as these show cause proceedings advance.”