Energy

CHILLS teaches data centers to keep their flexibility private

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Based on a feed excerpt; full article content has not been acquired. Source evidence retrieved 12/11/2026, 19:23:27 UTC.

Briefings

Data center flexibility agreements are shifting from public grid mandates to private bilateral contracts, allowing hyperscalers to curtail power during peak demand in exchange for grid access. The Federal Energy Regulatory Commission (FERC) approved SPP's CHILLS program in June 2026, granting large loads non-firm transmission rights for up to seven years. However, SPP's July 2026 compliance filing requires CHILLS curtailments to occur within 15 minutes of an instruction, eliminating guaranteed notice periods and forcing real-time dispatch against grid needs. This trend risks moving flexibility into private deals where public market discovery is impossible, potentially leaving the broader grid without adequate capacity upgrades.

Key points

• FERC approved SPP's CHILLS program in June 2026, granting large data center loads non-firm transmission rights for up to seven years.
• SPP's July 2026 compliance filing requires CHILLS curtailments to occur within 15 minutes of an instruction, eliminating guaranteed notice periods.

Context

Data center flexibility has become the grid's favorite compromise, with hyperscalers negotiating bilateral agreements to curtail power during peak demand. The Federal Energy Regulatory Commission (FERC) issued show-cause orders to all six grid operators in June 2026, asking them to adopt interim non-firm transmission services for large loads. SPP's CHILLS program is the first FERC-endorsed solution, offering large loads access to non-firm transmission for up to seven years while waiting for firm service.

Limitations

Evidence is limited to SPP's July 2026 compliance filing and FERC's June 2026 show-cause orders. Public price transparency is absent, and the specific utility contracts for Google's 2024 demonstration remain undisclosed. Regional capacity estimates vary by grid operator, with Duke's study suggesting 43 GW of flexible load in PJM/MISO and 10 GW in SPP.

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