Federal regulators have rejected ComEd's cancellation of a data center interconnection contract, keeping the agreement alive for now. The project, developed by PowerHouse Hillwood, is a 1.8-GW, $20-billion data center that would be one of the largest of its kind.
The case drew attention because the contract was backed by a $1 letter of credit. FERC Commissioner David LaCerte said the amount was 'less than the price of a cup of coffee,' raising questions about the financial seriousness of the project. Despite that skepticism, the commission did not allow ComEd to walk away from the agreement.
The decision underscores the regulatory hurdles utilities face when trying to terminate large interconnection agreements, even when the financial assurances appear minimal. It also leaves the future of the PowerHouse Hillwood project uncertain, as the developer still needs to demonstrate it can finance and build the massive facility.