A Moment in History: Flex Wins in Hard Policy Conversations at FERC
Legitimizing Grid Flexibility for the AI Tech Sector while Other Approaches Struggle
Open Utility Dive today and you can see the future of the grid arranged on a single page. FERC’s rejection of Tri-State’s large-load tariff on retail jurisdiction grounds sits beside a piece I wrote today, arguing to mainstream AI data-center flexibility, next to a news piece on grid flex data centers, focused on policymakers wanting to both support economic development and protect consumers from rising electricity costs. Nearby are stories on sodium-ion batteries approaching commercial readiness, the country’s largest rooftop solar project, and a substantial nuclear deployment partnership.
Read together, these are not disparate headlines. They form a coherent picture of how the United States will add load, add resources, and—most importantly—add rules that match technological reality.
The FERC decision matters because it clarifies that governance precedes growth. When the line between retail and wholesale jurisdiction blurs, large-load policy becomes a tug-of-war over who plans, who prices, and who gets the first “yes.” That uncertainty slows everything.
At the same time, FERC is weighing a U.S. Department of Energy proposal aimed at interconnecting data centers and other very large loads. The juxtaposition is the point: we are trying to welcome new demand without breaking the frameworks that keep the system fair and reliable.
That is why data-center flexibility is moving from concept to premise.
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