DOE Directive Signals a New Era for FERC

Last week, Energy Secretary Chris Wright directed the Federal Energy Regulatory Commission (FERC) to fast-track rulemaking to speed up how large electricity loads (think data centers and industrial facilities) connect to the grid. The directive reflects the growing federal acknowledgment that new technologies are reshaping America’s grid.

While the order originated from DOE, it lands squarely within FERC’s independent jurisdiction, testing how the agency under its new leadership will balance administrative direction with regulatory autonomy. The next several months will demonstrate how FERC’s new chair interprets this moment, whether as a partnership with DOE to modernize interconnection policy or as an assertion of its independent role in overseeing grid reliability.

This move also shows the administration’s interest in supporting data center infrastructure.  How FERC responds, both procedurally and substantively, will help define the federal government’s approach to permitting, transmission planning, and the power demands of AI-driven growth.

This issue isn’t going away, and we expect to see more moves like this across the administration. Watching how FERC responds, though, will show the shifting tides of energy demand and public opinion on regulatory decisions.