Microsoft and PowerHouse Clash with Grid Operators Over Data Center Agreements

Microsoft and PowerHouse Hillwood Holding are involved in disputes over agreements related to their planned data centers in Wisconsin and Illinois. The disagreements come after the Federal Energy Regulatory Commission (FERC) found that grid operators' rules for interconnecting large loads may be inadequate.

The FERC issued 'show cause' orders to regional transmission organizations and independent system operators, detailing five issues they need to address in their large load interconnection rules. These include preventing cost shifts and ensuring transparency into transmission costs.

Microsoft claims that agreements filed for FERC approval by American Transmission Co. (ATC) are flawed and fail to protect utility customers from infrastructure costs needed to serve its data center expansion in Mount Pleasant, Wisconsin. Microsoft argues that the agreements contain 'significant deficiencies' and raise cost-of-service and open access issues.

PowerHouse Hillwood Holding also expressed concerns over a transmission security agreement related to a 1.8-GW data center it is planning in Joliet, Illinois. The company claims that ComEd's utilities have monopoly power and are using it to their advantage. PowerHouse Hillwood urged FERC to reject ComEd's notice of cancellation for the transmission security agreement.