Regs
The Trump administration is considering revising distribution transformer efficiency rules approved during the Biden era, which were originally set to take effect in 2029 and require greater use of amorphous steel. Utilities and manufacturers generally support the original rules but worry about supply chain issues, suggesting extending the compliance period rather than repealing them. Steel giant Cleveland-Cliffs supports the revision to protect its GOES product market.
New York Governor Kathy Hochul signed an executive order on July 14 suspending environmental permits for new hyperscale data centers (consuming 50 megawatts or more) for one year to develop a regulatory framework. The order differs in scope from the Responsible Data Center Development Act (A11560), passed by the state legislature but not signed, which could affect existing facilities. Analysis indicates that the executive order has no grandfather clause and depends on DEC permit status, while the bill includes exemption mechanisms.
The PJM Interconnection Board issued a proposal on Monday to address a 6.8 GW capacity shortfall through a one-time reserve capacity auction and to establish a load shedding framework for large loads such as data centers without self-supplied power during emergency conditions. Both proposals are expected to be submitted to the U.S. Federal Energy Regulatory Commission (FERC) for review by the end of this month.
In the PJM Interconnection governance proceedings, OPSI proposed requiring PJM and its transmission owners to submit Section 205 filings of the Federal Power Act as directed by state governments. Former FERC Chairman Joseph Kelliher believes this proposal violates the law, as the court in Mass. DPU v. FERC established that the Section 205 filing right is exclusive to utilities, and state governments should express their concerns through the Section 206 complaint procedure.
In court documents filed on July 15, the US Department of Energy admitted that the cancellation of 223 clean energy project grants (totaling $7.6 billion) in October 2025 was based entirely on the political affiliation of the recipients' states, rather than any project, regulatory, or performance factors. This 'striking admission' has drawn fierce criticism from Democratic lawmakers and environmental groups over the Trump administration's 'weaponization of the federal grant process.'
FERC Chairman Laura Swett warned at a technical conference that if PJM does not reach a governance reform agreement by the end of September, FERC will enforce reforms. The meeting focused on governance deficiencies exposed by the capacity market, state participation rights, board independence, and stakeholder process reforms. Although consensus is emerging among parties, differences remain.
On June 22, the U.S. Department of Energy issued a rule simplifying electricity export authorization. On July 21, Public Citizen filed for reconsideration, stating that the rule contradicts the 'energy emergency' determination under Section 202(c) of the Federal Power Act and undermines public participation and judicial review rights.
FERC Chairman Swett: Proposes Incentives to Promote the Application of "Grid-Enhancing Technologies"
FERC Chair Laura Swett revealed at a Senate Energy and Natural Resources Committee oversight hearing that the agency has established a working group to study how to support the application of grid-enhancing technologies (GETs) through incentives. She noted that while the Federal Power Act prohibits FERC from mandating utilities to use GETs, the agency can guide transmission owners to analyze relevant technologies and consider incorporating them into the incentive framework.
Five state ratepayer advocates from Delaware, Illinois, Maryland, and Ohio, along with Pennsylvania's Office of Consumer Advocate, filed requests for rehearing and clarification with FERC, arguing that the agency's show cause order to PJM fails to protect consumers from data center-driven transmission costs. They contend the order does not address cost allocation of network upgrades and leaves existing consumers on the hook for cost shifts.
The total cost of PJM Interconnection's latest capacity auction reached $16.4 billion, with data center-related costs at $6.3 billion, accounting for 38%. Independent market monitor Monitoring Analytics noted that data center-related costs over the past four auctions totaled $29.4 billion, representing 46% of the total $63.6 billion in costs. The agency recommends separating data centers from the base auction and conducting capacity procurement separately.