Glossary

The terms everyone pretends they already know.

Data center predevelopment is a jargon-heavy domain. Every piece of content on this site assumes you know what ISA, DPP, and DCRSUT mean. This page is the plain-English version — organized by category, searchable by term, and written for a smart reader who is new to the domain.

Terms: 58
Categories: 6
Last updated: April 2026

Interconnection

15 terms

ISOIndependent System Operator: A non-profit organization that operates the electricity transmission system in a region, independent of generation and distribution utilities. The US has seven: ERCOT, PJM, MISO, SPP, NYISO, CAISO, and ISO-NE.
RTORegional Transmission Organization: Functionally similar to an ISO, coordinating transmission across multiple utilities. In practice, the terms ISO and RTO are often used interchangeably in the US context.
POIPoint of Interconnection: The specific physical location on the transmission grid where a generator or large load connects. POI selection determines upgrade cost, study requirements, and timeline.
ISAInterconnection Service Agreement: The contract between a developer and the ISO / utility that formalizes the terms of interconnection. Contains load profiles, upgrade cost allocation, commercial operation date, and compliance requirements.
DPPDefinitive Planning Phase: MISO's framework for clustering and studying interconnection requests. Phase I, II, and III stages the project through readiness gates, financial commitments, and system impact studies.
DISISDefinitive Interconnection System Impact Study: SPP's framework for evaluating interconnection requests. Similar to MISO's DPP, uses shared clusters and coordinated studies with defined cost allocation.
Cluster Study: An interconnection study process in which projects are grouped into cohorts and studied together. Designed to allocate upgrade costs across multiple projects rather than burdening the first-in-line request.
GIRGeneration Interconnection Request: An application filed with an ISO or RTO to interconnect a new generation asset. Historically the default framework; large-load interconnection borrows many conventions.
GINRGeneration Interconnection Network Request: A specific type of ERCOT interconnection filing under the Electric Reliability Council's procedures.
Class Year: NYISO's annual study cycle. Interconnection requests are grouped into a Class Year cohort; studies and cost allocation happen together. Missing a Class Year window means waiting a full year.
Affected System: A neighboring ISO, RTO, or transmission system whose reliability could be impacted by a new interconnection request. Affected System studies can add months to a project timeline and require coordination across multiple pools.
Network Upgrade: Physical changes to the transmission system required to accommodate a new interconnection — new lines, new substations, expanded capacity. Costs can be allocated to the requesting project or shared across a cluster.
Cluster: A group of interconnection requests studied together under a shared-study framework. Used by MISO (DPP), SPP (DISIS), PJM (Cycle 1), NYISO (Class Year), and others to allocate costs across projects.
Readiness gate: A milestone in an interconnection cluster study that a project must pass to continue. Typically requires site control, financial commitments, and commercial readiness evidence.
Withdrawal penalty: A fee or cost allocation imposed on a project that withdraws from an interconnection study after triggering study work. FERC Order 2023 introduced stricter withdrawal penalties to discourage speculative filings.

Regulatory

13 terms

FERCFederal Energy Regulatory Commission: The US federal agency with jurisdiction over interstate electricity transmission, wholesale power markets, and interstate natural gas. FERC issues orders that shape how ISOs and utilities operate.
PUCPublic Utility Commission: A state regulatory agency with jurisdiction over retail electricity, gas, and sometimes water. Each US state has its own commission. PUCs govern rate structures, tariffs, and consumer protection in ways FERC does not.
SCCState Corporation Commission: Virginia's functional equivalent of a PUC. Has jurisdiction over utility rate structures, large-load interconnection processes, and consumer protection in Virginia.
PSCPublic Service Commission: The name used in several states (Georgia, New York, Missouri, others) for the equivalent of a PUC. Functionally similar to a PUC but with state-specific authority.
Order 2023: A FERC order issued in July 2023 standardizing the generation interconnection process across US ISOs and RTOs. Introduced shared clusters, tighter readiness gates, and withdrawal penalties. Did not standardize large-load interconnection.
FERC 12/2025 order: An order issued December 18, 2025 directing PJM to file three new transmission service options for co-located loads. Triggered the ongoing paper hearing and reshaped every new and existing BTM deal in PJM.
SB 6: A 2025 Texas statute directing the PUCT to create new interconnection standards for loads over 75 MW. Implemented through the PUCT 58481 rulemaking (16 TAC §25.194).
PUCTPublic Utility Commission of Texas: Texas's PUC. Has jurisdiction over ERCOT rates, retail structures, and large-load interconnection rules under SB 6.
Paper hearing: A FERC proceeding conducted entirely through written filings rather than oral testimony. Parties file protests, responses, and reply rounds; the commission issues a ruling on the written record. The PJM co-location order is currently in a paper hearing.
CETAClean Energy Transformation Act: Washington state's 2019 law requiring 100% clean electricity by 2045. Washington's hydro baseline makes compliance cheaper than in most other states.
SB 100: California's 2018 law requiring 100% clean electricity by 2045. Combined with the CPUC's rate authority, creates meaningful compliance obligations for large new loads.
CPUCCalifornia Public Utilities Commission: California's PUC, with more rate authority than most state commissions. Every California DC rate case, IRP filing, or new tariff flows through CPUC proceedings.
NRCNuclear Regulatory Commission: The US federal agency regulating commercial nuclear power. Nuclear co-location and restart deals (Three Mile Island, Duane Arnold) require NRC license amendments under a formal multi-year process.

Incentives

8 terms

DCRSUTData Center Retail Sales and Use Tax exemption: Virginia's sales tax exemption for qualifying data centers. Requires $150M minimum investment, 50 qualifying jobs, and 150% of local average wage. The largest single DC incentive in the country by dollar value.
Ch. 313 replacement: The Texas program that replaced the Chapter 313 school property tax limitation structure. Provides a school district M&O tax cap for qualifying large industrial projects, subject to Comptroller certification.
LERTALocal Economic Revitalization Tax Assistance: A Pennsylvania local property tax abatement program allowing up to 10-year abatement of property tax increases on improvements. Available in designated LERTA districts.
PILOTPayment In Lieu Of Tax: A structured tax arrangement in which a taxpayer pays a fixed amount in lieu of standard property tax, typically for a defined period. Common in Tennessee and several other states.
Clawback: A provision in an incentive agreement allowing the awarding authority to recover the benefit if the recipient fails to meet commitments (investment, jobs, wages). Most DC incentives have clawback exposure that operators must track for years after award.
KIZKeystone Innovation Zone: A Pennsylvania designation that makes qualifying technology companies eligible for up to $100K per year in state tax credit. Stacks with other PA programs.
FTZForeign Trade Zone: A federally designated area where imported goods receive favorable customs and property tax treatment. FTZ designation can shift property tax from 18% to 5% assessment in Arizona for qualifying DC operators.
JobsOhio: A non-profit economic development corporation that administers Ohio's discretionary grant and incentive programs. Shifted post-HB 1210 to require community and workforce metrics.

Environmental

7 terms

NPDESNational Pollutant Discharge Elimination System: The EPA Clean Water Act program regulating discharges of pollutants into surface waters. Data center water discharge is governed by NPDES permits, either individual or (as of Ohio's 2026 draft) general permits.
Section 401: Clean Water Act Section 401 requires state or tribal certification that a federally permitted activity won't violate water quality standards. EPA's January 2026 proposed rule narrows the authority.
Superfund: The EPA program for cleaning up contaminated land. Sites on the National Priorities List (NPL) have significant remediation obligations. Superfund status is a key risk factor in brownfield diligence.
RCRAResource Conservation and Recovery Act: The EPA statute regulating hazardous waste. RCRA Corrective Action governs remediation of contaminated industrial sites. Relevant to brownfield conversions.
Brownfield: A site where redevelopment is complicated by actual or perceived environmental contamination. Many coal plants, steel mills, and chemical complexes are brownfields. Cliffcenter's Site Intelligence includes a dedicated brownfield index.
PSPSPublic Safety Power Shutoff: California utility-initiated power shutdowns during high wildfire risk conditions. PSPS history is part of standard California DC diligence because it affects reliability, insurance, and business continuity.
CEQACalifornia Environmental Quality Act: California's state-level environmental review statute. Triggered by most large construction projects; typically adds 12–36 months to a California DC timeline.

Deal structure

7 terms

Co-location: A behind-the-meter arrangement in which a large load (like a data center) is physically co-located with a generation asset, receiving power directly rather than through the transmission system. The FERC December 2025 order reshaped how co-location is regulated.
BTMBehind-The-Meter: A deal structure in which a load (like a data center) is co-located with generation and receives power directly, bypassing the transmission system and its associated costs. Reshaped by the FERC December 2025 order.
FTMFront-of-the-Meter: The opposite of BTM — power is delivered through the transmission system to the load, with associated transmission tariffs. The Talen-AWS Susquehanna restructure is an example of a BTM-to-FTM conversion.
PPAPower Purchase Agreement: A long-term contract between a power buyer and a generator. PPAs can be physical (delivery of actual power) or virtual (financial contract only). The Constellation-Microsoft Three Mile Island deal is a 20-year physical PPA.
CBACommunity Benefit Agreement: A contract between a developer and a community stakeholder group specifying the benefits (workforce training, local grants, environmental mitigation) that the project commits to in exchange for community support or approval.
Co-located load: A load that sits physically adjacent to a generation asset and receives power directly. Distinguished from network-served loads that take power from the transmission system.
Retail Electricity Provider: An entity licensed to sell electricity at retail, subject to state PUC oversight. Some BTM-to-FTM restructures require the power seller to license as a retail provider (e.g., Talen in Pennsylvania).

Grid and capacity

8 terms

FCMForward Capacity Market: ISO-NE's market for capacity commitments — generators and demand-response resources bid to supply capacity three years in advance. The most developed capacity market in the US.
Capacity Auction: A market mechanism (used in PJM, ISO-NE, and some other systems) in which generators and demand-response resources bid to supply capacity for a future delivery year. PJM's 2025 auction cleared at $16.4B.
VRRVariable Resource Requirement: The demand curve used in PJM's capacity auction to determine capacity prices as a function of available supply. Shape of the VRR curve significantly affects price outcomes.
LRTPLong-Range Transmission Plan: MISO's framework for identifying and approving long-horizon transmission upgrades. Tranche 3 is currently in process and will allocate billions in upgrade costs.
IRPIntegrated Resource Plan: A utility's multi-year forecast of resource needs and the plan to meet them. IRP filings are approved by state PUCs and shape utility investment decisions. DC growth has upended IRP assumptions in many states.
Take-or-pay tariff: A utility tariff that obligates the customer to pay for a committed level of demand regardless of actual use. Ohio's AEP 85% take-or-pay tariff caused an 81% collapse in large-load forecast.
BPABonneville Power Administration: A federal power marketing administration operating in the Pacific Northwest. Administers cheap hydroelectric power from federal dams. Every large load in Washington or Oregon negotiates directly with BPA.
TVATennessee Valley Authority: A federal corporation operating as the integrated utility across Tennessee and parts of six neighboring states. TVA is both regulator and utility, with distinct conventions from the investor-owned utility world.

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