Key Considerations for Serving Large Loads

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Estimated reading time: 30+ minutes

Why This Matters for Rural Electric Co-ops

Data centers and other very large loads can bring jobs and tax revenue, but they also carry real stranded asset risk. If a project stalls, cancels, or leaves early, remaining members can end up paying for the infrastructure built to serve it. This quick-start guide lays out how co-ops are structuring intake, contracts, and collateral so large loads pay their own way.

A co-op can use it as a checklist before its first large-load request arrives. It walks through each stage, from application fees and Letters of Agreement to the Energy Service Agreement and ongoing cost tracking. It also links to case studies from peer co-ops that have already done this work.

Key Takeaways

Implementation Considerations

• Regulatory or Governance Considerations: Most co-ops set a minimum size or load factor threshold that triggers special treatment for large loads. The article also suggests a separate outside auditor review large-load transactions quarterly during heavy construction spending.
• Staffing or Technology Requirements: Serving a large load requires a single point of contact, specialized staff for each interconnection phase, and economic development skills for community engagement. Smaller co-ops will likely need outside consultants or G&T partnership to draft contracts and run cost-of-service studies.
• Time-Sensitive Information: Study fee ranges ($150,000 to $250,000 for very large projects), the AEP Ohio tiered fee schedule, Tri-State's HILT filing, and NERC Large Load Task Force recommendations are all evolving quickly and should be checked for updates.

Notable Examples

• Umatilla Electric Cooperative: Case study on earning data center business while requiring upfront infrastructure payments.
• Rappahannock Electric Cooperative (REC): Case study on defining co-op service obligations to data centers.
• Tri-State Generation and Transmission: G&T whose High Impact Load Tariff filing proposes a narrow tolerance band on load ramp projections, explored in this G&T case study.
• NOVEC: One of the co-ops credited with making upfront payment for delivery infrastructure standard practice for data centers.
• Energy + Environmental Economics (E3): Consultancy behind the "transformational load" concept and a credit and collateral framework for co-ops.
• NERC: Large Load Task Force guidance on ride-through and interconnection, plus a Data Center Information Collection Questionnaire.

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Estimated reading time: 30+ minutes