New Grid Rules Mandated: FERC Must Speed Up Power Plant Hookups Within 18 Months

The Expediting Generator Interconnection Procedures Act of 2025 is basically a shot across the bow to the Federal Energy Regulatory Commission (FERC), telling them to fix the slow-motion process of connecting new power sources to the grid. Think of it like this: if you build a new house, you need the utility company to hook up your electricity meter. This bill tackles the same problem, but for massive solar farms, wind projects, and giant battery storage facilities.

The Grid’s Traffic Jam Problem

Right now, the process for getting a new power plant or energy storage project—defined here as an Energy Storage Project or Generation Project—connected to the interstate Transmission System is a nightmare of paperwork and delays. This Act mandates that FERC start a formal rulemaking process within six months and finalize new rules within 18 months to overhaul this system. The goal is to make sure new power sources can connect quickly, affordably, and reliably (SEC. 3).

For the average person, this matters because these interconnection delays are a huge bottleneck for deploying new energy, which can affect everything from grid stability to the cost of electricity. When a project sits in a queue for years, those delays translate into higher costs that eventually land on consumer bills.

What the New Rules Must Fix

This isn't just about shuffling papers faster. The bill requires FERC to update its standard procedures to make the connection studies smarter. Specifically, Transmission Providers (the utilities that own the lines) must start using Realistic Assumptions about how different power sources operate. For instance, a battery storage facility (which is defined broadly to include everything from lithium-ion to compressed air) can switch on and off instantly, unlike a traditional power plant. The new rules must model that capability accurately, rather than treating every project the same (SEC. 3).

Crucially, the rules must require transmission providers to identify Cost-Effective Solutions when reliability issues pop up during the study phase. This means if a new solar farm requires an upgrade to the local grid, the utility can’t just pick the most expensive option; they have to find the smart, efficient fix. The bill also pushes for more transparency, requiring utilities to share enough information with the Interconnection Customer (the developer) so they can understand exactly how the study was conducted and why certain solutions were chosen.

Automation and the Bottom Line

To tackle the massive backlog of projects waiting to connect (the “interconnection queue”), the bill explicitly requires FERC to adopt best practices like Advanced Computers and Automation to speed up study results. This is the policy version of upgrading from a fax machine to a cloud-based system. By using better tools and standardized criteria, the hope is to cut down the time it takes to get a yes or no, which saves developers time and money.

While this bill focuses on streamlining the connection process, it makes an important clarification: it does not change how the overall costs of the transmission system are allocated among different users. That complex financial structure remains under FERC’s existing authority (SEC. 3). For those of us juggling budgets, this means the bill is focused purely on efficiency and speed, not on changing who pays for the big, baseline upgrades to the grid itself.