FERC in 2026: Rising costs cloud regulators’ options on data centers, transmission and more

The Federal Energy Regulatory Commission faces a challenging year as it comes under pressure from the Trump administration to accelerate data center development amid rising concerns about energy affordability and grid reliability. 

At the same time, FERC must also oversee compliance with fast-approaching deadlines for new rules on transmission planning and cost allocation.

“Between those two things, it’s going to eat up so much bandwidth at FERC,” said Devin Hartman, director of energy and environmental policy at the R Street Institute, a free market-oriented think tank.

“It’s going to be hard to do much else, especially on the policy front,” he said.

The keen focus on data center development by the Trump administration comes amid questions about FERC’s status as an independent agency. The two most recent additions to the five-person commission were nominated by President Donald Trump as he has also sought to impose new requirements on regulatory agencies via executive order.

Laura Swett, FERC’s new chairman, echoed the administration’s priorities when she said at her first open meeting in November that connecting data centers to the grid is her top priority — along with the agency’s mandate of ensuring grid reliability at fair rates.

“I would expect Chair Swett to track more closely with White House priorities than perhaps any chair has ever done,” Hartman said…

The Order 1920 compliance plans, most of which are due this year, may be key in addressing Chang’s concerns.

“How thoroughly FERC reviews those and requires any adjustments to set a high bar for 1920 compliance will be really important for the future of transmission planning,” said Hartman from R Street.