Docket No. ER26-3257-000
In today’s order we decline to wade into the ongoing evidentiary morass of a commercial contract dispute best left in the perfectly competent venue of the Northen District of Illinois. Though we decline to assert primary jurisdiction over the interpretation of ambiguous contract terms involving credit support,1 our commitment to fair cost allocation, ratepayer protection, and regulatory clarity remains unwavering.
The Commission is taking intrepid action to ensure that transmission costs triggered by large loads are allocated fairly, transparently, and consistently. Today’s order only reaffirms the criticality of the potential reforms that we proposed in the show cause proceedings underway across the country.2 It is more important than ever that we develop clear and consistent terms to integrate large loads with the transmission system. It is also more important than ever that RTO/ISOs and their transmission owners may propose pro forma Cost Recovery Agreements. And finally, it is more important than ever that any such agreements contain strong, consistent language that both protects customers from improper cost shifting and provides certainty to contracting parties. Establishing such pathways will leave less room for contracting error or ambiguity that requires adjudication, such as the subject of today’s order.
We remain committed to leading this Commission’s prompt review of any RTO/ISO and transmission provider proposals to resolve the issues raised in our show cause proceedings and, with input from stakeholders, moving swiftly to establish necessary reforms. The future is bright.
For these reasons, we respectfully concur.
- 1See PowerHouse Hillwood Holding LLC v. Commonwealth Edison Co., No. 1:26-cv-8860, First Amended and Supplemental Complaint for Declaratory Judgment and Injunctive Relief (N.D. Ill. Aug. 24, 2026).
- 2See Cal. Indep. Sys. Operator Corp., 195 FERC ¶ 61,214 (2026); ISO New Eng. Inc., 195 FERC ¶ 61,215 (2026); Midcontinent Indep. Sys. Operator, Inc., 195 FERC ¶ 61,212 (2026); N.Y. Indep. Sys. Operator, Inc., 195 FERC ¶ 61,216 (2026); PJM Interconnection, L.L.C., 195 FERC ¶ 61,211 (2026); Sw. Power Pool, Inc., 195 FERC ¶ 61,213 (2026).