FERC and PUCT: Interim Steps Towards Regulatory Clarity

Research evidence excerpt

FERC and PUCT: Interim Steps Towards Regulatory Clarity

Update

June 22, 2026 05:16 AM GMT

Morgan Stanley & Co. LLCMDiversified Utilities / IPPs | North America David Arcaro, CFA

Equity Analyst

FERC and PUCT: Interim Steps David.Arcaro@morganstanley.comAlexandre Zimmermann +1 212 761-1817

Research Associate

Alexandre.Zimmermann@morganstanley.com +1 212 761-3617

Towards Regulatory Clarity Zhizhong Dong

Last Thursday, FERC held an open meeting where it addressed two important Jonathan.Dong@morganstanley.com +1 212 761-5632

Amanda Huang

processes related to 1) large load interconnection rules for the RTOs/ISOs under its Research Associate

jurisdiction (which does not include ERCOT) and 2) PJM's co-location tariff. In Texas, Amanda.Huang@morganstanley.com +1 212 761-4197

Jeremy Herring

we highlight some progress in the batching process for data center load and several Research Associate

catalysts in the coming months. Jeremy.Herring@morganstanley.com +1 212 761-4182

The FERC decisions represent some concrete progress toward regulatory clarity in Diversified Utilities / IPPs

North America

PJM for data center deals with the IPPs. FERC pushed for new policies that would Industry View Attractive

speed up data center interconnections and expects responses in 60 days while also

authorizing co-located data centers in a way that preserves existing deals and

pushes for a quicker timeline from PJM. Looking at PJM more broadly and the

outlook for data center deals with IPPs, we don't have full clarity yet but we

continue to see meaningful overhangs resolved by the fall, such that data center

contracts could once again be announced in 4Q this year.

Below we highlight the main takeaways of the decisions and our initial thoughts.

FERC - Large load interconnection rules: