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Policy and Cost Allocation Considerations for Large Electric Load Interconnections: Emerging Policy Trends in Rate Structures, Interconnection, and Cost Impacts on Other System Users

Load growth in the United States is rapidly increasing: load from data centers alone has tripled over the past decade, and this growth is forecasted to continue accelerating. These and other large electric loads (LELs) promise economic benefits at the state and local level, but their deployment has also led to increasing concerns about grid impacts and potential cost shifts onto other ratepayers. Legislators, regulators, and other stakeholders are increasingly proposing and enacting policies in effort to balance these and other considerations. This white paper reviews state-level legislation, selected utility rate cases, and relevant federal orders in an effort to describe and categorize relevant trends in policies related to LEL cost allocation, interconnection, and deployment. Policy categories identified through this review include tax incentives, rate actions, and requirements related to interconnection, permitting, and reporting. By offering a taxonomy of policies, this white paper aims to offer a resource to policymakers and other stakeholders navigating this transformative moment for the grid.

24 POWER TRANSMISSION AND DISTRIBUTION

Aerodynamic heating and loading within large open cavities in cone and cone-cylinder-flare models at Mach 6.7

The aerodynamic heating and loading distributions within large cavities exposed by surface openings to hypersonic flow were determined in the 8-foot high-temperature structures tunnel. Cone and cone-cylinder-flare models with cavities having regular and irregular surface-opening shapes were aerothermally tested at various angles of attack up to 30 deg. Tests were conducted at a Mach number of 6.7, a total temperature of 1800 K, a dynamic pressure of 80 kPa, and a stream unit Reynolds number of 6,000,000 per meter. The results showed that the heating rates at internal reattachment were generally lower but of the same order as the corresponding external heating rates; however, other internal heating rates were an order of magnitude lower. The internal flow showed characteristics of being funneled into jets or being dispersed dependent upon the internal surface contour.

Hunt, R. L.

Effects of rotor location, coning, and tilt on critical loads in large wind turbines

Several large (1500 kW) horizontal rotor configurations were analyzed to determine the effects on dynamic loads of upwind downwind rotor locations, coned and radial blade positions, and tilted and horizontal rotor axis positions. Loads were calculated for a range of wind velocities at three locations in the structure: (1) the blade shank; (2) the hub shaft; and (3) the yaw drive. Blade axis coning and rotor axis tilt were found to have minor effects on loads. However, locating the rotor upwind of the tower significantly reduced loads at all locations analyzed.

Spera, D. A.

Effects of rotor location, coning, and tilt on critical loads in large wind turbines

Three large (1500 kW) horizontal rotor configurations were analyzed to determine the effects on dynamic loads of upwind and downwind rotor locations, coned and radial blade positions, and tilted and horizontal rotor axis positions. Loads were calculated for a range of wind velocities at three locations in the structure: the blade shank, the hub shaft, and the yaw drive. Blade axis coning and rotor axis tilt were found to have little effect on loads. However, locating the rotor upwind of the tower significantly reduced loads at all locations analyzed.

Spera, D. A.

Data Centers Gap Analysis [Slides]

Data centers and other large loads are a significant driver of unprecedented, near-term demand growth in the United States. Power system planners, utilities, regulators, and other stakeholders are grappling with how to integrate data centers on the system without comprising reliability, resiliency, and energy affordability. NLR is pursuing work to develop a siting and decision-making tool that would draw on power systems modeling expertise to achieve granular representation of trade-offs involved in data center sitting and development. This slide deck supports the same workstream by reviewing the literature to identify mitigation options to facilitate near-term integration of large loads and by presenting options for pursuing data development and/or modeling projects to improve representation of siting options.

29 ENERGY PLANNING, POLICY, AND ECONOMY

MegaWatt Mayhem: Grid Operator Challenges Center Loads

This report provides a summary of the challenges faced by United States electricity grid operators in accommodating and anticipating the rapid deployment of large loads, particularly data centers, based on academic literature and industry working groups. The report highlights the unique requirements and operational characteristics of data centers, which differ significantly from traditional industrial loads. Key issues addressed utility planning considerations, with emphasis on the implications for grid operators, impacts to normal operations for grid operators, reliability considerations during periods of grid stress, and resilience considerations for the changing operational paradigms based on data centers. Real-world examples are used to highlight these challenges and the changes that grid operators must address. The findings underscore the necessity for coordinated efforts and innovative solutions from both grid operators and regulatory bodies to ensure the stable integration of large loads into the grid. This report is the first in a series that will explore the challenges of data center deployments based on several key power system perspectives.

24 - POWER TRANSMISSION AND DISTRIBUTION

Modeling Framework for Data Center

This chapter highlights the critical need for advanced modeling of data centers due to their rapidly increasing energy consumption and impact on grid reliability. Driven by the demand for AI applications, data centers are projected to consume a significant portion of US energy by 2028, putting stress on an already challenged power grid. The chapter emphasizes the importance of "fast" time-scale models to understand the dynamic interactions between data centers and the grid, especially given the rapid power fluctuations of AI workloads. It outlines a modeling framework that includes both offline and real-time EMT domain simulations, detailing the necessary representations for various components like utility interfaces, transformers, IT loads, UPS, cooling loads, Battery Energy Storage Systems (BESS), generators, protection systems, and higher-level control systems. While standard simulation tools like PSCAD offer basic models, custom development is often required to accurately capture the unique and fast-changing behaviors of modern data centers. The chapter also discusses key metrics and test cases for validating these models, focusing on transient load responses, protection relay coordination, and demand flexibility. Finally, it addresses the challenges of modeling large-scale data centers, such as computational complexity and the trade-off between model fidelity and practicality, suggesting hybrid modeling approaches as a solution. The overarching goal is to create a robust framework that helps assess data center impacts on grid stability, identify vulnerabilities, and inform the development of standards for reliable integration of these large loads into the bulk power system.

25 ENERGY STORAGE

TASTI-GRID: Improving Electric Grid Resilience across the State of Tennessee

Residential, industrial, and large load data center facility expansion have exacerbated management backlogs. Additionally, as newer technologies emerge in larger utility providers, a chasm between urban and rural resilience grows – creating segmentation across the state. With new development, industries, and large load additions to the electric grid across the Volunteer state, utilities must contend with these new connections, management backlogs, and technology gaps – while addressing an increase in major outages with more frequent extreme weather events, such as Hurricane Helene in 2024. This issues, in turn, have given way to greater vulnerabilities in adjacent infrastructure – including transportation and emergency management services, among others.

24 POWER TRANSMISSION AND DISTRIBUTION

Storing Affordability: Battery Storage as an Asset to Reduce Data Center Cost Shifts

This report examines how battery energy storage systems (BESS) can help utilities accommodate large load growth while protecting affordability for existing ratepayers. Rapid growth in electricity demand from artificial intelligence (AI) data centers is straining the U.S. grid. Furthermore, many new data centers are entering rural markets, which could offer economic benefits but may also pose implementation challenges for smaller utilities. At the same time, retail electricity prices are increasing faster than inflation, elevating customer affordability as a key challenge. While data centers have not been the primary driver of increases in residential prices to date, they have pushed wholesale energy and capacity prices higher in several markets. Fundamental utility cost-allocation principles show that data center growth can be rate-positive for existing customers only if new peak demand grows faster than the costs a utility must incur to serve it. Several factors, including a utility’s degree of wholesale market exposure, forecast uncertainty and stranded-asset risk, and tariff design can determine the outcome of load growth on retail rates. Energy storage can make several affordability contributions in the face of this landscape of uncertainty and market volatility, including deferral of higher-cost grid investments through improved utilization of existing assets and flexibility of new large loads, insulation from volatile wholesale prices through peak shaving, and reliability support to address grid risks stemming from the behavior of AI data center loads. Different potential BESS deployment pathways—utility-scale front-of-the-meter systems, aggregated small-scale storage installations, and data center-sited behind-the-meter storage—are compared against each other and against conventional capacity alternatives. This framework is intended as a conceptual resource to utilities, particularly smaller public utilities with rural service territories, who may be considering the role that energy storage can play in insulating existing ratepayers from data center cost shifts.

25 ENERGY STORAGE

Existing Methods for Grid Strength Assessment and Role of Hydropower in Future Grids

The power system is undergoing rapid evolution with increasing penetration of inverter-based resources (IBRs), large loads, microgrids, and power electronic devices. Ensuring reliable and stable operation of the modern power grid is a multi-faceted challenge that requires detailed understanding of this complex system. Dynamic stability is a major concern in maintaining the security of power grids as the generation mixes and large loads transitions to include high shares of power electronic devices. The operation of IBRs in regions with low system strength and higher grid impedances has been found to be the main reason behind many of the power system instabilities that manifest themselves in various types of oscillations and interactions that, if not properly addressed and damped, can jeopardize the reliable operation of the power system. Weak grid conditions compound such stability problems, particularly when many IBRs operate in proximity to and connect to weak power grids. Therefore, it is important to assess grid strength for planning, integration and operation of IBRs for a given power system. In this report, we aim to understand and classify existing methodologies for grid strength assessment, along with their limitations and future needs. Further, we aim to utilize the huge untapped potential in utilizing hydro energy resources in addressing some of the pertinent challenges of grid strength and reliable operation of modern power systems. Hydropower, historically valued for its flexibility and dispatchability, now faces new constraints due to reduced share of synchronous machines in the generation mix and seasonal variability of available water resources. Yet, these same plants present untapped potential beyond energy generation - notably, as providers of critical grid services. This report explores how hydropower plants, particularly through operation as synchronous condensers, can play a pivotal role in strengthening the grid amid evolving system dynamics.

13 HYDRO ENERGY

The influence of wind veer and drivetrain flexibility on fatigue loading for large floating wind turbines

To reduce costs, offshore wind turbines are expected to be designed with significantly increased rotor diameters. Larger turbines become more flexible and span a larger portion of the atmospheric boundary layer. With these changes, the validity of traditional modeling assumptions should be investigated. This work challenges two common assumptions: (1) that the drivetrain can be considered rigid (except in torsion) and does not couple with the rotor and tower and 2) that wind directional change with height (veer) does not greatly influence the fatigue damage in the tower, blades and drivetrain. Two large semi-submersible floating wind turbines are considered: a 15 and a 22 MW reference turbine. Both use direct-drive generators. Aero-hydro-servo-elastic simulations are performed using OpenFAST, with drivetrain bending flexibility and main bearing response implemented in the coupled analysis. The turbines are subjected to a set of load cases at below-, near- and above-rated mean wind speeds, assembled based on the 3 km Norwegian reanalysis (NORA3) hourly wind and wave hindcast data for Utsira Nord, off the coast of Norway. In each load case, conditions with and without veer are simulated to evaluate the influence of veer on damage equivalent loads (DELs) of the turbine tower, blades and main bearings. Further, these load cases are applied to evaluate the influence of drivetrain flexibility on aero-elastic turbine response. The results indicate that, depending on the veer gradient, mean wind speed, operating regime and turbine size, veer can be very important for tower-top DELs and the fluctuations of main bearing radial loads, while main bearing and blade-root flapwise DELs are less affected. Considering these specific load cases and turbine models, drivetrain flexibility is found to significantly influence tower-top DELs of the largest turbine: the tower-top fore-aft and torsional damage equivalent moments of the 22 MW turbine are reduced by more than 20 % at near-rated wind speeds when the drivetrain is modeled as flexible.

17 WIND ENERGY

Considerations for Distributed Edge Data Centers and Use of Building Loads to Support Large Interconnections

The rapid expansion of artificial intelligence (AI) and machine learning is driving unprecedented electricity demand from data centers. It is predicted that by 2030, 90% of AI workloads will be inference-based, requiring interconnection of multiple low-latency edge data centers (<20 MW) sited closer to end users - often on already constrained distribution feeders. Although individually small, these loads can aggregate to large loads per feeder, straining infrastructure, creating multi-year interconnection delays, and driving up customer costs. This paper proposes a data center-focused grid-integration framework that combines feeder hosting capacity analysis with building energy efficiency, building load flexibility, and waste heat reuse to expand effective feeder and substation headroom. Such approaches can reduce interconnection delays, lower costs for ratepayers, and accelerate AI-ready infrastructure deployment.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI

Range Performance of Bombers Powered by Turbine-Propeller Power Plants

Calculations have been made to find range? attainable by bombers of gross weights from l40,000 to 300,000 pounds powered by turbine-propeller power plants. Only conventional configurations were considered and emphasis was placed upon using data for structural and aerodynamic characteristics which are typical of modern military airplanes. An effort was made to limit the various parameters invoked in the airplane configuration to practical values. Therefore, extremely high wing loadings, large amounts of sweepback, and very high aspect ratios have not been considered. Power-plant performance was based upon the performance of a typical turbine-propeller engine equipped with propellers designed to maintain high efficiencies at high-subsonic speeds. Results indicated, in general, that the greatest range, for a given gross weight, is obtained by airplanes of high wing loading, unless the higher cruising speeds associated with the high-wing-loading airplanes require-the use of thinner wing sections. Further results showed the effect of cruising at-high speeds, of operation at very high altitudes, and of carrying large bomb loads.

Cline, Charles W.

Data Centers and Digital Assurance Workshop 3 – Mitigations for Digital Assurance Risks

The third session of the TADA (Technical Assistance for Digital Assurance) Data Centers Cohort, held on November 18, 2025, focused on developing mitigation strategies for digital assurance risks identified in previous workshops. Hosted by Idaho National Laboratory (INL) and ScottMadden, the session emphasized the application of Cyber-Informed Engineering (CIE) to data center infrastructure, particularly at the utility–data center interface. Participants revisited and ranked key digital assurance risks, including architecture and interface weaknesses, governance gaps, and AI-enabled threats. The workshop introduced the 12 principles of CIE, advocating for consequence-focused design, engineered controls, and secure information architecture to proactively reduce cyber-physical vulnerabilities. These principles were applied to critical data center systems such as power distribution, UPS, cooling, SCADA/BMS, and grid-forming batteries. The session also addressed governance challenges at the interconnection boundary, highlighting the need for clear roles in telemetry sharing, firmware management, and trip settings. Special attention was given to emerging risks from behind-the-meter (BTM) generation, including reverse-power flow and the integration of small modular reactors (SMRs), which shift data centers from large loads to complex generation nodes. Participants explored how interconnection agreements can serve as enforceable instruments for digital assurance, and reviewed gaps in current standards such as NERC CIP, IEC 62443, and IEEE 1547. The workshop concluded with pathways to standardization, including model agreement language, state-level programs, and expanded NERC guidance. INL also presented tools and frameworks for secure procurement and supplier risk management, reinforcing the need for integrated engineering and policy solutions to secure the evolving data center–grid ecosystem. Session 3 of 3.

24 - POWER TRANSMISSION AND DISTRIBUTION

Ultimate strength of high-load-capacity composite bolted joints

Presented are the results of a series of tests initiated to obtain baseline data on the load-carrying capacity of bolted joints designed to carry large loads, specifically up to 222 kN (50 kips). The major testing purposes were to determine the load carrying capacity as a function of the width and thickness of the joint and the diameter and number of bolts, and to observe the failure mode. A total of 100 tests were conducted on three different specimen configurations. The specimens were fabricated from a T300/5208 fiber/resin system in a quasi-isotropic lay-up. The results presented indicate that for a given ratio of specimen width to hole diameter, the specimens with the smaller holes sustained a higher net-section tensile stress before failure. In addition, for a given ratio of specimen width to hole diameter, the thinner specimens withstood a higher net-section stress. No attempt has been made to correlate the results with theoretical predictions.

Hyer, M. W.

Measurement Adequacy for Monitoring Data Center Oscillations

Artificial intelligence (AI) training data centers with periodic load profiles can induce sustained grid oscillations across a wide frequency range, making accurate monitoring essential for reliable power system operation. This report evaluates the adequacy of existing measurement systems for monitoring such oscillations, focusing on phasor measurement units (PMUs) and point-on-wave (POW) measurement systems. The analysis shows that while PMUs are highly effective for monitoring low-frequency electromechanical oscillations, they have inherent limitations in accurately representing higher-frequency oscillations due to constraints imposed by reporting rates and the bandwidth of phasor estimation filters. Even when configured with higher reporting rates, the filtering inherent in the phasor estimation process can significantly attenuate oscillation magnitudes, potentially leading to underestimation of oscillatory behavior. This has important implications for compliance and performance monitoring of large loads. To address the limitations associated with PMU-based monitoring, the report examines the use of high-resolution POW measurements, which can capture oscillations across a broader frequency range. However, continuous POW monitoring introduces practical challenges related to large data volumes, communication bandwidth, and real-time data processing. For this reason, the report also discusses emerging approaches that use POW measurements as a complementary capability alongside PMUs to improve observability of oscillations from large data center loads.

47 OTHER INSTRUMENTATION