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FERC rejects ComEd's bid to cancel deal for 1.8-GW data center backed by $1 credit

FERC turned down ComEd's cancellation of a transmission agreement for a $20 billion Joliet data center whose developer posted a $1 letter of credit, leaving the fight to federal court.

By Greener Numbers Editorial Team · Published September 24, 2026 · Updated 9/24/2026

The Federal Energy Regulatory Commission on Tuesday, Sept. 22, rejected Commonwealth Edison's "notice of cancellation" of a transmission security agreement for a 1.8-GW, $20 billion data center that PowerHouse Hillwood Holding is developing in Joliet, Illinois, Utility Dive reports.

Part of the fight is over the agreement's credit support. PowerHouse Hillwood says it met the initial credit requirement with a $1 posting, according to FERC's decision. The dispute is pending in the U.S. District Court for the Northern District of Illinois, and FERC declined to take jurisdiction, saying the court can work it out just as well.

Regulators still made clear they are watching who pays for large new loads. "Our commitment to fair cost allocation, ratepayer protection, and regulatory clarity remains unwavering," Chairman Laura Swett and Commissioner Lindsay See wrote. They said the case shows why the large-load interconnection show cause orders FERC sent grid operators in June matter. Those operators have until mid-November to respond.

Commissioner David Rosner said security deposits help ensure "project viability and transparency," and that cost-recovery agreements keep project risks "with the developer, not the public." Commissioner David LaCerte called the $1 letter of credit "an embarrassing legal fiction" and "insulting to the underlying ratepayers."

Why it matters for bills: Swett and See said these agreements should protect customers "from improper cost shifting," so the risk of a large project stays with its developer rather than other ratepayers.

Official source: Utility Dive ↗