Sponsor
Martin Heinrich
Senator · D-NM
Senator · D-NM
The bill creates a clearer, uniform federal process to speed and standardize very-large-load interconnections and clarify cost responsibility, but it shifts substantial upfront costs and some risk onto large customers while leaving potential for indirect cost burdens on other ratepayers and uneven regional oversight.
Utilities and grid operators gain a single federal framework and mandatory FERC rulemaking standardizing interconnection for very large loads, reducing regulatory uncertainty and making approvals more consistent.
Large-load customers (including businesses seeking big new hookups) get clearer study timelines, defined build options, and a voluntary mechanism to fund regional transmission in exchange for a Commission-defined transmission right, enabling more predictable project planning.
Interconnection and direct-assignment facility costs are assigned to the requesting customer, concentrating cost responsibility and helping prevent cross-subsidization by other ratepayers.
Large-load customers (e.g., developers or businesses) face full upfront responsibility for interconnection and direct-assignment facility costs, which can be large and increase project financial risk or deter investment.
Other customers and ratepayers may still bear some network upgrade costs indirectly if crediting or allocation rules are insufficient, risking higher transmission charges for broad customer bases.
Smaller local stakeholders and communities (especially rural communities) could have limited influence over large regional transmission projects driven by voluntary funding agreements between big customers and transmission planners.
Based on analysis of 2 sections of legislative text.
Creates a federal FERC framework for interconnecting nonresidential electricity loads of 150 MW+ with mandatory study, cost-allocation, and optional customer-funded transmission rights.
Official title: Amend the Federal Power Act to clarify the jurisdiction of the Federal Energy Regulatory Commission over the interconnection of large loads to the transmission system, to provide for standards and procedures for the interconnection of large loads, and for other purposes.
Introduced July 30, 2026 by Martin Heinrich · Last progress July 30, 2026
Creates a new federal interconnection framework that gives FERC authority over very large new or expanded nonresidential electricity loads (150 MW or more behind a single interconnection point). It requires FERC to issue a final rule within one year establishing pro forma and regionally tailored interconnection standards, mandatory study processes, cost classification and allocation rules, options to build, transparency and reliability standards, and a voluntary mechanism for customers to fund planned transmission in exchange for defined transmission rights. The law defines covered terms, preserves existing FERC authority, protects pending proceedings, excludes the ERCOT grid, and adds conforming references to the Federal Power Act. It focuses on clarifying jurisdiction and allocating the costs and procedures for connecting very large loads to interstate transmission systems.