DOE Interconnection Proposal Raises Jurisdictional Questions

A proposed plan for federal intervention in the interconnection of data centers to the energy grid raises questions over state and federal jurisdiction. 

The U.S. Department of Energy is urging federal regulators to set national rules for how data centers and other large electric customers connect to the grid—a move that has sparked strong pushback from state regulators and lawmakers. Groups like the National Association of Regulatory Utility Commissioners and the National Conference of State Legislatures argue that states have long overseen large-load interconnections and retail rates, and warn that expanding the Federal Energy Regulatory Commission’s role could undermine state authority and trigger legal fights, especially where existing tariffs and processes are already in place.

Other stakeholders are focused on reliability, market impacts, and who ultimately pays for grid upgrades. Utilities and grid operators point to the need for major transmission investment to serve fast-growing demand, while competitive suppliers caution against disrupting wholesale markets or generation queues. Data center interests want more predictable and transparent interconnection timelines, but consumer advocates worry that letting large customers work around traditional utility structures could shift costs onto other ratepayers. For Maryland counties, the outcome will shape how big new electric loads are planned, how costs are allocated, and how state and local voices factor into an increasingly crowded federal conversation.

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Maryland’s energy landscape will be front and center at the 2025 MACo Winter Conference. The session, “Powering the Future: What Battery Storage Means for Maryland Counties,” will break down this evolving technology and its potential impact on county operations and residents.

MACo’s Winter Conference, “Local Leadership, Lasting Impact: Shaping What’s Next,” will be held at the Hyatt Regency Chesapeake Bay Hotel in Cambridge, MD, on December 10-12, 2024.

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