For all CAISO stakeholders, the coming months will reveal the extent to which California must adapt its existing market and transmission planning structure in order to address FERC’s concerns.
At an open meeting on June 18, 2026, the Federal Energy Regulatory Commission (FERC) issued show-cause orders under Section 206 of the Federal Power Act to the six FERC-jurisdictional RTOs/ISOs—PJM Interconnection, ISO New England, Midcontinent Independent System Operator, Southwest Power Pool, New York Independent System Operator and California Independent System Operator—along with their transmission owners (TOs), directing each region and the TOs to justify or revise tariff provisions governing how data centers and other large loads connect to and receive transmission service from the grid. These show-cause orders will impact several power markets across the country, including California.
Reprinted courtesy of Stephen J. Humes, Pillsbury, Alicia M. McKnight, Pillsbury and Jason Drogin Atwood, Pillsbury
Mr. Humes may be contacted at stephen.humes@pillsburylaw.com
Ms. McKnight may be contacted at alicia.mcknight@pillsburylaw.com
Mr. Atwood may be contacted at jason.atwood@pillsburylaw.com