The Federal Energy Regulatory Commissin (FERC) of the US has directed grid operator PJM to establish transparent rules to facilitate service of AI-driven data centres and other large loads co-located with generating facilities.

These rules will safeguard grid reliability and protect consumers in the mid-Atlantic territory, which serves over 67 million Americans in 13 states and DC.

As technology leaps forward, clear and fair regulations must keep pace to support advancement, help prevent price volatility, and promote competition, ultimately benefiting consumers by keeping electricity costs manageable.

"Today’s order is a monumental step towards fortifying America’s national and economic security in the AI revolution, while ensuring we preserve just and reasonable rates for all Americans. I look forward to tackling more of these critical national issues with my colleagues in the New Year," said Laura Swett, FERC, Chairman.

In the order, the commission finds PJM’s tariff unjust and unreasonable due to a lack of clarity and consistency in the rates, terms, and conditions that apply to interconnection customers serving co-located load and eligible customers taking transmission service on behalf of co-located loads.

PJM’s tariff is unreasonable because it does not account for transmission services where eligible customers can manage energy withdrawals for co-located load.

FERC directs PJM to revise its tariff to require its eligible (transmission) customers serving co-located load to choose from several transmission service options.

"Clarifying new rules will help release the bottleneck of large load investments across the PJM footprint," said Chairman Swett.