The North Carolina Utilities Commission (NCUC)’s large load technical conference featured testimony from Rachel Wilson, Southeast Energy Market Lead at Google. Wilson’s presentation offered the perspective of a large energy user and underscored that the entities driving new load growth are seeking not only reliability, but also predictable interconnection timelines and clean energy access that aligns with corporate sustainability commitments. 
Wilson also highlighted that load increases can be an opportunity for growth if done correctly, but adequate measures need to be in place to ensure that hyperscalers pay their fair share. Utilities, regulators, and large customers must work together to ensure equal terms and long-term financial commitments–think minimum demand charges, upfront collateral, and transparent fees for capacity modifications or cancellations. In some states, for example, Google is participating in “Clean Transition Tariffs” (CTT)—special electricity rates that allow large customers to pay a voluntary premium for clean power.
Google has hosted a data center in North Carolina for nearly two decades and is committed to being a “good grid citizen,” investing in rural co-ops and energy savings for low-income households, partnering on developing innovative technologies, and scaling demand response. As more large loads come online, it will be ever more essential to have a framework in place ensure that 1) host communities and other ratepayers don’t bear an outsized burden; and, 2) large energy users have optionality (i.e. co-location, bring-your-own resources), transparent communication, and regulatory certainty.
The National Conversation
The discussion in North Carolina reflects a broader national concern. Just one week after the NCUC conference, the Federal Energy Regulatory Commission (FERC) held its own grid reliability conference, where Jim Robb, President and CEO of the North American Electric Reliability Corporation (NERC) described the data center issue as “a five-alarm fire.” As of December, the Department of Energy (DOE) projected that these large loads could use anywhere from 6.7 to 12 percent of U.S. electricity by 2028.
Robb emphasized that while grid reliability in the U.S. is currently strong, the speed and scale of new load growth—coupled with other issues like extreme weather and both physical and cybersecurity risks—present a challenge unlike anything we’ve experienced. A variety of speakers at the conference all emphasized something similar: we need greater coordination between load developers, utilities, and grid operators, as well as more flexible regulatory frameworks that can support timely investment in generation and transmission infrastructure.
Some states have begun to respond to these challenges. Georgia, for example, is working to protect ratepayers from the costs data centers incur; large loads enter into 15-year contracts with financial guarantees ensuring that all new generation, transmission, and distribution are accounted for. The state’s Public Service Commission (PSC) has also been approving plans for multiple gigawatts (GW) of capacity additions to help meet needs and reduce residential rates. Similar proactive efforts and collaboration between utilities, regulators, and industry will only grow more essential moving into the future. We must quickly rethink traditional assumptions about resource adequacy and planning cycles if we are to balance demand and supply.
Federal policymakers are also paying attention. Two days after FERC’s convening, the U.S. Secretary of Energy submitted a letter directing FERC to initiate rulemaking to standardize large load interconnection procedures and agreements. Historically, FERC has regulated generator interconnections; the Secretary argues that large loads are analogous to generators in terms of needing fair access and non-discrimination and that there is a precedent for this proposed rule.
An “advanced notice of proposed rulemaking,” or ANOPR, included with the letter outlines 14 principles which DOE cites as necessary to avoid delays, inequity, and increased costs. FERC must review and issue a final rule no later than April 30, 2026.
Looking Forward
The recent national action emphasizes much of what was highlighted during the NCUC conference. Standardizing how we treat large loads—introducing more uniform processes, financial readiness, and defined obligations—could be a step toward meeting demand needs while also protecting ratepayers. CCEBA will remain engaged as the rulemaking process unfolds, and will continue to push for utilizing flexible, least-cost resources and innovative planning in these unprecedented times.