For a new 100+ MW load in PJM (Northern Virginia), full study sequence and energization can run 24 to 48 months from the initial utility application. A data center is a large-load request to the utility. It is not filed into an ISO generator cluster window. The power document is a load-interconnection or electric-service agreement.
Why the timeline has lengthened
Per FERC data and ISO/RTO reports, the volume of new generation seeking interconnection has reached historical highs while the volume of completed interconnections has slowed in several regions. A data center is a large-load request to the utility. It is not filed into an ISO generator cluster window. Transmission and generation capacity can still delay when the utility can serve that load.
The power document is a load-interconnection or electric-service agreement. Sponsors should track the utility's large-load study schedule. A data center application is not filed into an ISO generator cluster window.
How lenders treat the load-interconnection agreement
Senior lenders underwrite the utility load-interconnection or electric-service agreement, including the stated energization date, before construction draws begin. An LGIA or ISA is a generator agreement and applies to behind-the-meter generation, not to the utility load. Any change in the stated energization date during construction triggers a draw-schedule renegotiation.
Sources
- Order No. 2023: Improvements to Generator Interconnection Procedures and Agreements · Federal Energy Regulatory Commission (FERC) · current
- New Services Queue and Generator Interconnection Status · PJM Interconnection · current
- Capacity, Demand and Reserves (CDR) Report and Large Load Reports · Electric Reliability Council of Texas (ERCOT) · current