FERC Decision Highlights Jurisdictional Limits on Large Load Tariffs
Steven Shparber, Mintz Member, was quoted in a recent Utility Dive article analyzing the Federal Energy Regulatory Commission’s (FERC) rejection of Tri-State Generation and Transmission Association’s proposed large load tariff. The decision, which found that Tri-State’s proposal intruded on retail rate regulation—an area reserved for state jurisdiction—comes as FERC begins considering a U.S. Department of Energy proposal to streamline interconnections for data centers and other large loads.
Steven explained that FERC’s ruling relied on longstanding Supreme Court precedent affirming that retail electricity sales fall outside the Commission’s authority. “FERC’s decision rests on relatively narrow grounds,” he noted, “but I think this shows that while FERC is not likely to interfere in any matters expressly within states’ jurisdiction moving forward, it will likely carve out a larger role for itself on other issues, including with respect to overseeing interconnections to the FERC-jurisdictional transmission system.” He also emphasized the growing importance of disputes over security deposit requirements, which FERC flagged as a key issue for Tri-State to address in any future filing.
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