SEATTLE — The Trump administration’s push to give FERC jurisdiction over large load interconnections could leave the agency biting off more than it can chew around complex state-run processes, while failing to accomplish the intended goal of speeding approvals of hyperscale data centers.
That was a top takeaway from a Nov. 12 panel discussion on the role of U.S. states in the permitting of “critical” energy infrastructure, held at the National Association of Regulatory Utility Commissioners annual meeting in Seattle.
The discussion among state regulators replaced a previously scheduled meeting of the Federal and State Current Issues Collaborative on the same topic, which was canceled because FERC representatives were restricted from travel because of the federal government shutdown.
The context of the discussion was shaped by Energy Secretary Chris Wright’s Oct. 24 Advance Notice of Proposed Rulemaking (ANOPR), which seeks for FERC to extend its authority to include the interconnection of large loads. The NARUC conference featured passage of a resolution pushing back against that effort. (See Regulators Urge FERC to Honor State Authority over Large Load Interconnections and DOE Request to FERC on Large Load Interconnections May Further Limit State Powers.)
Virginia State Corporation Commission Judge Kelsey Bagot kicked off the panel saying state and federal regulators mostly seek the same outcome in the large load interconnection issue, “which is this idea of speed to power.”
But Bagot posed the key question confronting regulators facing the potential for massive load growth in their states: how to ensure permitting is “as efficient as possible” without “losing out on the really important pieces that underlie why we have this permitting process in the first place” — namely protections around customer affordability, livability and the environment.
Panel participants raised crucial points, including:
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- State permitting of transmission and energy resources needed to interconnect large loads entails a highly complex process that includes not just utility commissions but environmental agencies, siting boards, localities, community groups, Tribes, landowners and various kinds of utilities.
- Those permitting processes are efficient, often being completed within a year.
- FERC may not be equipped to take on the added responsibility of such complex processes, often rooted in local concerns, and its control could invite more protests and delays of projects.
‘Extremely Complicated’
Florida Public Service Commissioner Gabriella Passidomo Smith emphasized how her state already prioritizes speed in permitting. She noted Florida has three different statutes covering the siting of natural gas infrastructure, power plants and transmission lines.
“These siting acts really address the environmental impacts of power plant, transmission line and natural gas pipeline construction and operation, with the primary goal of streamlining the permitting process while ensuring the protection of Florida’s natural resources,” Passidomo Smith said.
While the Florida Department of Environmental Protection is the lead agency for siting permits, the process includes the Department of Economic Opportunity, the Florida Fish and Wildlife Conservation Commission and a siting board comprised of the governor and the cabinet.
Throughout the process, Passidomo Smith said, affected local governments can provide land-use consistency determinations, with regional planning councils and water management districts participating in the review.
The role of the PSC, she said, is to be the first stop to determine need for new capacity after a generation or load-consuming project has been proposed. The proposal starts a 45-day clock for the commission to hold a hearing, followed by a requirement to issue a determination within 60 days of the hearing.
Certain transmission projects can be “extremely complicated, if you’re talking about going through conservation land, tribal lands,” she said. “You might just have one property owner and a NIMBY issue that could be involved. You know, it could be simple; I think it increasingly is less so.”
Illinois Commerce Commissioner Stacey Paradis said she was speaking for fellow commissioners in the Mid-America Regulatory Conference region in saying they want to ensure efficient permitting. But they’re also “very interested in maintaining state control” over large load interconnections and are concerned that local community engagement could be lost through federal control over the process.
Paradis said Illinois law sets specific requirements for public participation, stakeholder engagement, environmental assessments, and public and evidentiary hearings before the commission can act on an application.
She noted the ICC in the past decade has taken on responsibilities related to integrated resource planning, resource adequacy, the siting of solar, the development of new nuclear resources and the examination of pipeline siting. That’s all part of a state strategy to consolidate energy-related processes within one agency, although the ICC also works with sister agencies such as the Illinois Power Agency, Illinois EPA and the state Department of Natural Resources.
Despite that workload, Paradis said that in the past 15 years, the ICC has completed permitting on every electricity-related project within 365 days.
“So, all of that moves still relatively quickly, even though we have those five stages,” she said.
Single-size Permitting
Bagot, who previously worked as an attorney at FERC, pondered how Virginia’s process of permitting a high volume of large load projects would compare under federal authority.
Bagot said under existing practice the SCC has authority to issue certificates for public convenience and necessity (CPCNs) for nearly all projects rated at 115 kV and above. While the state’s Department of Environmental Quality is separately responsible for environmental reviews, its findings are incorporated into SCC’s CPCN proceeding. She said Virginia’s process gives localities a “strong role” in the permitting process.
Bagot said that while Virginia has no statutory deadline for the SCC to issue a CPCN, the agency’s typical timeline has been eight to nine months, which doesn’t include “the random exception here or there for particularly challenging projects” or instances when a utility itself seeks alternative routes after local feedback.
“So, to the extent the process is delayed, it’s often on the part of the utility after community engagement, and they’ve come to some resolution, and want to make sure that that resolution is reflected in the filing, which we obviously want to encourage, because those types of solutions, I think are a win-win for everybody,” she said.
Bagot pointed out that, over the past three years, the SCC has received about eight to 20 transmission CPCN applications annually, compared with FERC dealing with 15-20 natural gas CPCN applications a year in the same period.
“They’re doing about the same amount of certificates each year as the Virginia commission is doing for transmission, and that’s just one of many states,” she said. She added that she wants to understand what amount of resources and staff FERC or another federal agency would require “to really engage meaningfully in these permitting processes for transmission to the extent it is smooth.”
The rapid spread of data centers has made transmission siting in Virginia’s “Data Center Alley” in Loudoun County particularly contentious. The process requires much more engagement with increasingly sophisticated community groups to negotiate solutions, which reduces the kind of appeals and litigation risk that slows projects, Bagot said. She added that states “are working very hard” at the legislative and commission levels to make processes “as efficient as possible.”
“I don’t want to lose the progress that’s there in search of the sort of one-size-fits-all solution that may or may not result in faster permitting processes, or permitting processes that may be faster on the front end but end up tied up in litigation for many, many years,” Bagot said.
‘Strong Track Record’
Pointing out that Virginia is “an outlier” in the number of transmission requests the state is fielding, Washington Utilities and Transportation Commission (UTC) Chair Brian Rybarik still echoed Bagot’s concern that FERC would be shouldering “a lot” in assuming authority over large load interconnections in every state.
But more important was Bagot’s “one-size-fits-all” concern about a federal process, Rybarik said.
“How do you get that connection to the landowners that are actually being impacted?” he said. “The energy transition, load growth, everything we’re seeing, is a really important thing for the country, but it affects a certain number of people a lot more than others, and so we really need to make sure that we make that connection to everybody.”
On the topic of state permitting of transmission, Rybarik said that while critics among industry stakeholders “tend to focus on the negative,” Washington’s Department of Ecology approves 83% of applications that come before the agency.
“I think that’s a pretty strong track record to look at. We can focus on the outliers for the negative, but it really is working well, and states are working well to move these things forward,” he said. “Agencies like the UTC are bringing leaders together and asking our stakeholders, ‘How can we advance our processes?’”


