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CAISO: the rules for data center loads

Graded Light and steady on how it connects a new large load. 2 states, 5 actions with sources, reviewed 10 October 2026.

Reviewed 10 October 2026 · Part of the Data Center Rulebook

Board-approved 50 MW framework with curtailable interim service goes to FERC in November

Light→ Steady2 states5 items
1in force
2pending
2states
23.3 GWin the queue
0.5xqueue to peak load
2 November 2026reviewed
Regulation1.6 / 5
  1. Queue process1

    Utilities handle large loads today; CAISO's 50 MW framework was board-approved October 28, 2026 but is not in force until FERC accepts the November filing.

  2. Cost allocation1

    No large-load collateral or capacity charge exists at the grid operator level.

  3. Curtailment1

    No curtailment obligation is in force; the curtailable interim service approved by the board October 28, 2026 goes to FERC by November 16, 2026.

  4. On-site generation3

    FERC's June 18, 2026 order found the tariff inadequate for co-located loads, so co-location proceeds under review pending the November filing.

  5. Available capacity2

    CAISO holds a 2.5 GW surplus (July 20, 2026), but PG&E had executed agreements for only 490 MW of a 12.7 GW pipeline and plans 1.8 GW by 2030 (July 24, 2026).

Scored on rules in force, 1 to 5. 5 is the most regulated. Pending rules set the arrow.

Interconnection queueDec 2025
23.3 GWrequested
5.1 GWapproved or contracted
51.1 GWpeak load

CEC tally of data center capacity requests reported by utilities in the CAISO area as of Dec 2025: 5,086 MW signed agreements, 9,587 MW active applications, 8,604 MW inquiries; CAISO itself keeps no large load queue. CEC 2025 IEPR: data center load in the CAISO balancing area grows 1.8 GW by 2030 and 4.9 GW by 2040; CAISO is studying 4.5 GW of data centers in the 2025-2026 transmission plan energy.ca.gov Pace: Not found as a period figure. CEC data center methodology memo (Apr 2026) puts existing data center peak demand at approximately 1,000 MW as of Dec 2025, with 2024 baseline also ~1,000 MW; 2025 increment is forecast (413 MW), not measured.

  • PG&E 12.7 GW data center pipeline, of which 490 MW with executed interconnection agreements and 3.9 GW in final engineering; expects 1.8 GW of new data center load served by 2030 Jul 2026 utilitydive.com
  • PG&E 174 MW of new data center projects energized since 2024 Oct 2026 sec.gov
  • SCE almost 4.8 GW of pre-operational transmission-connected data center requests through 2035 (no transmission-connected data center yet operational); a 1.3 GW Riverside County request withdrawn Mar 2026 newprojectmedia.com
  • CAISO 4.5 GW of data centers under study in the 2025-2026 transmission planning process Feb 2026 caiso.com

CAISO reports no supply shortfall and modest data center growth compared with other regions. FERC nonetheless found in June 2026 that its tariff offers large loads essentially only firm service. CAISO's answer is two flexible interconnection options for loads of 50 MW or more, one interim and one permanent, which the investor-owned utilities would then have to write into their own tariffs. California's utility tariff and state law changes sit outside the grid operator.

Outlook for the next year

The Board of Governors approved the large-load framework on 28 October 2026 with a single flexible interim interconnection service and dropped the permanent flexible option; the tariff filing is due at FERC by 16 November 2026, and FERC then decides whether it satisfies the June show-cause order. PG&E, Southern California Edison and San Diego Gas & Electric must file conforming terms before any customer can take the new service, and the permanent flexible service and proximate load and generation arrangements go to future stakeholder processes.

How does CAISO treat a new data center load?

CAISO is graded Light and steady on how it connects a new large load: Board-approved 50 MW framework with curtailable interim service goes to FERC in November CAISO reports no supply shortfall and modest data center growth compared with other regions. FERC nonetheless found in June 2026 that its tariff offers large loads essentially only firm service. CAISO's answer is two flexible interconnection options for loads of 50 MW or more, one interim and one permanent, which the investor-owned utilities would then have to write into their own tariffs. California's utility tariff and state law changes sit outside the grid operator.

How much load is waiting to connect in CAISO?

23.3 GW of large-load interconnection requests as of Dec 2025, of which 5.1 GW approved or contracted. CEC tally of data center capacity requests reported by utilities in the CAISO area as of Dec 2025: 5,086 MW signed agreements, 9,587 MW active applications, 8,604 MW inquiries; CAISO itself keeps no large load queue.

Which states are in CAISO?

California and Nevada. Each state page gives that state's own laws, incentives and local actions, which sit under the grid's connection rules.

Which states in CAISO are tightening their data center rules?

2 of 2: California, Nevada.

What is the outlook for data centers in CAISO?

The Board of Governors approved the large-load framework on 28 October 2026 with a single flexible interim interconnection service and dropped the permanent flexible option; the tariff filing is due at FERC by 16 November 2026, and FERC then decides whether it satisfies the June show-cause order. PG&E, Southern California Edison and San Diego Gas & Electric must file conforming terms before any customer can take the new service, and the permanent flexible service and proximate load and generation arrangements go to future stakeholder processes.

Every item, newest first

5 items: each is a law, order, tariff, ruling, utility action or local decision that changes what a data center must do, pay or disclose, or where it may be built. Failed and pending measures are marked. Each links to its source.

  1. Grid operatorOct 2026grid connectionApproved

    Large loads draft final proposal

    CAISO posted the draft final proposal and draft tariff language on 24 September 2026, held a stakeholder meeting on 1 October and a virtual meeting on the tariff language on 19 October, with written comments due 15 October 2026. The board approved the proposal on 28 October 2026 and the tariff filing goes to FERC by 16 November.

    Source: caiso.com
  2. Grid operatorOct 2026grid connectionApproved

    Board approval of the large-load framework

    The CAISO Board of Governors approved the large-load proposal on 28 October 2026. It defines a large load as an end user at a single site with a peak of 50 MW or more, creates a Flexible Interim Load Interconnection service that lets a load connect subject to enforceable curtailment until network upgrades are complete, opens a monthly window for reviewing transmission additions tied to large loads outside the annual plan, requires hourly forecasts and telemetry, and lets the ISO work with transmission owners to disconnect large loads remotely to protect reliability. The permanent flexible option from the August straw proposal was dropped, and a PG&E request for a 20 MW threshold was declined for now. CAISO will file the tariff language at FERC by 16 November 2026.

    Source: publicpower.org
  3. Grid operatorAug 2026grid connectionProposed

    Large load straw proposal: flexible interconnection

    Published 12 August 2026. A large load is defined as an end user at a single site with a peak of 50 MW or more. One option lets a load connect at a curtailable level while network upgrades are built and then convert to firm service; a second, permanent option would let a load that stays curtailable avoid funding or waiting for upgrades. The draft final proposal of 24 September dropped the permanent option, and the board approved the single interim service on 28 October 2026.

    Source: mgrid.org
  4. Grid operatorAug 2026grid connectionPending

    FERC large-load show-cause order (EL26-71)

    FERC's 18 June 2026 order preliminarily found CAISO's tariff inadequate for large and co-located loads. CAISO moved for abeyance on 3 August; FERC granted 90 days and set 16 November 2026 for the tariff filing.

    Source: capacityglobal.com
  5. Grid operatorJul 2026reliabilityIn force

    Resource adequacy report to FERC

    CAISO told FERC on 20 July 2026 that it has added about 36,000 MW since 2020 and holds a surplus of more than 2.5 GW above the reliability standard. The California Energy Commission forecasts data center load growth of 1.8 GW by 2030 and 4.9 GW by 2040.

    Source: climatesolutionslaw.com

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