FERC clears SPP conditional service for large loads, cutting queue for curtailable data centers
SPP can now serve data centers on interruptible terms, pressuring incumbent utilities and reshaping the interconnection queue across its footprint.
The Federal Energy Regulatory Commission on Friday (2026-06-05) approved the Southwest Power Pool's conditional high impact large load service, known as CHILLS, letting the grid operator connect data centers and other large consumers that accept curtailment during transmission constraints or emergencies.2
SPP's interconnection queue had been backing up with data center requests facing years of delay and billion-dollar network upgrades. CHILLS gives load a faster path onto the grid, but the price is a service agreement letting SPP cut power when the system tightens. The commission found the tariff just and reasonable and not unduly discriminatory.2
The approval lands inside a broader regulatory push. On Thursday (2026-06-18), FERC voted unanimously to issue Section 206 show-cause orders to all six RTOs and ISOs under its jurisdiction, directing them to justify or rewrite their large-load tariffs. Staff said the orders address "the pressing need in the RTO/ISO regions" and cover roughly two-thirds of electricity load served under commission jurisdiction, affecting 200 million Americans in more than 30 states and the District of Columbia.4
SPP's approach effectively splits the queue into two lanes. Standard interconnection requests still face the full network upgrade process. CHILLS customers bypass much of that, accepting operational risk in exchange for faster commercial service. Incumbent utilities and other load across the footprint will watch closely what discount curtailable service commands versus firm service.2
Big Tech has been working the regulatory channel with growing confidence. One AI company executive told POLITICO that FERC has been "used to dealing with certain types of companies for the last 100 years," a remark that captures the shift as hyperscalers push for faster grid access.1
SPP's footprint stretches from Manitoba to the Gulf Coast. The operator has contended with extreme cold before, losing roughly 21 GW of incremental generation during both Winter Storm Uri in February 2021 and Elliott in December 2022. The January 2025 arctic events — Winter Storms Blair, Cora and Enzo — showed measurable improvement, with incremental outages peaking at roughly 9 GW against a 108-GW systemwide peak.3
That cold-weather record matters for CHILLS because interruptible load is only as good as the operator's ability to predict and call it. If SPP can shave peak demand by dropping data centers before emergencies, it reduces stress on generation during extreme events. If forecasting misses, the curtailment option offers less protection than advertised.3
FERC's rulemaking is also moving on environmental review. Regulators announced on Thursday (2026-06-18) that they plan to curtail cumulative environmental reviews of new energy projects, responding to a Supreme Court ruling. Commission Chair Laura Swett said the analyses FERC has been conducting exceed what is required under the National Environmental Policy Act. Faster environmental clearance combined with interruptible service could compress project timelines for gas-fired generation backing new load.5
NextEra Energy is planning a $33 billion investment in gas-fired power plants in Pennsylvania and Texas, signaling that developers expect the load to materialize with firm supply behind it. Whether CHILLS data centers pair with dedicated gas generation or draw grid power when available remains a commercial decision for each customer.1
The unresolved risk sits in the curtailment mechanics. SPP can cut service when the transmission system is constrained or under emergency conditions, but the tariff leaves room for interpretation on how often and how deep those cuts go. A data center dropped twice in a summer may find the economics of curtailable service considerably less attractive than the queue relief suggested.2
Watch the first CHILLS interconnection agreements and the curtailment frequency they document in practice. That data, not the tariff language, will tell load planners and utilities whether the service functions as genuine queue relief or a regulatory instrument that sees limited commercial uptake.2