Document Type
Article
Publication Date
Spring 2026
Abstract
The electrical grid is falling short of its mandate to accommodate new generation—much of which happens to be “clean” zero-carbon generation—and to service load (demand). The bottleneck of grid access, which has vexed renewable energy developers, now affects industries seeking massive quantities of electricity to power single facilities— “large loads” such as data centers and other artificial intelligence operations.
Many of these highly capitalized loads seek clean energy generation; they could, in theory, fund an energy renaissance and provide scale-based benefits for all consumers. But loads that obtain service are negatively impacting other consumers’ rates and, potentially, the reliability of service on a networked grid, not offering a renaissance.
The demands for new energy for large loads push the boundaries of what constitutes “just, reasonable, and not unduly discriminatory” electricity service provided by utilities and other grid operators. They raise critical questions about how to design electricity rates to make large loads pay for large load costs; how loads should be prioritized for interconnection; and how to realize the already-urgent task of connecting new, clean generation.
During World War II, federal leadership rapidly expanded energy generation and transmission. We are not in a world war—and we do not have an energy emergency caused by inadequate domestic energy. But more efficient and flexible loads; extensive investments in an expanded transmission grid and clean generation capacity; and updated governance for this grid are necessary, this time without top-down mandates.
New standards must ensure reliable delivery of electricity to all, fair allocation of large load costs to the loads causing these costs, and maximization of system benefits. The institutions responsible for these standards are not adapting quickly enough to implement these standards, however. This Article frames the central elements of this new electricity governance regime and proposes substantive policy pathways for a rapidly changing system.
Recommended Citation
Hannah Jacobs Wiseman and Matthew McHale,
Governing the Energy Bottleneck, 50
Harv. Envtl. L. Rev.
107
(2026).
Available at: https://insight.dickinsonlaw.psu.edu/fac_works/529