Your connection to the latest in electricity, natural gas, and utilities news.
In this Issue:
PJM
Utility executive suggests changes for procuring power in PJM
FirstEnergy’s president and chief executive officer said deregulated states in PJM should consider procuring power supplies outside of the grid operator’s capacity auctions. One option, he explained, would have a state agency issue a solicitation for a specific type of new capacity and let independent producers, investment firms, and companies bid.
Governors call for reforms to PJM capacity market
Five governors call for rule changes in PJM’s capacity market and interconnection queue process to reduce “unnecessary” costs for customers. They voiced concern that the current interconnection process “severely limits the ability of high prices to encourage the development of additional capacity,” and asked that reliability-must-run units be included in auctions.
FERC
Ohio goes to high court over decision on FERC rule aimed at boosting renewables
Ohio regulators filed a petition with the U.S. Supreme Court challenging a lower-court decision that upheld a Federal Energy Regulatory Commission rule to boost renewables. A deadlocked FERC advanced the measure without a majority, so state officials want courts to play a larger role in deciding the fate of U.S. energy rules that go into effect “in the face of FERC’s inaction.”
FERC commissioner “hopeful” on transmission planning and allocation rule
A member of the Federal Energy Regulatory Commission said he was “hopeful” that the agency will reach agreement on a pending rehearing order for its transmission planning and allocation rule. David Rosner said the rule’s mandate that planners weigh a set of benefits when evaluating proposals “makes a ton of sense.”
Nuclear
NextEra CEO downplays nuclear’s role in meeting new demand
NextEra’s chief executive officer said that despite the growing enthusiasm for nuclear power, storage and renewables will likely have a greater role in meeting new demand for at least two decades. He explained that nuclear will have a place, “but there are some practical limitations,” adding that he was “not bullish” on newer small modular reactor technologies.
Schedule for reopening Three Mile Island unveiled
The owner of the Three Mile Island nuclear plant provided a timeline for restarting the facility, aiming to have a new license to operate in three years. The price to reopen the facility was not known, though Constellation is seeking a $1.6 billion loan from the Department of Energy. However, the company will not use money from a decommissioning trust fund to support restoration.
NRC removes “quantitative health objectives” from proposed reactor licensing rules
The Nuclear Regulatory Commission removed “quantitative health objectives” from its proposed rules for licensing advanced nuclear reactors. The proposal for a new licensing pathway would save the industry and the NRC $53.6 million to $68.2 million per license applicant while boosting stability, clarity, flexibility, and predictability in the overall process.
Industry wonders how many more nuclear plants will restart
With the planned restarting of two nuclear power facilities already announced – and one more being considered – the industry is wondering if and how many more reactors might be restarted. One expert said there might be two others, “but they would be long shots.” The condition of the retired plants, their decommissioning status, and reactor technology all affect restart decisions.
Law fostering advanced nuclear development keeping NRC “very busy”
A law designed to promote advanced nuclear development has kept the Nuclear Regulatory Commission “very busy,” according to NRC staff. The agency said it has created 20 interoffice teams throughout almost all of its 26 offices to address over 30 actions related to the measure, known as the ADVANCE Act. It expects the workload to grow even more significantly.
State Regulatory Developments
U.S. court rules Texas law favoring incumbent utilities is unconstitutional
A federal court ruled that a Texas law giving incumbent utilities the sole right to build transmission lines that connect to their system is unconstitutional. It said the law violated the dormant Commerce Clause, which prevents states from restricting interstate commerce, and was thus “invalid and unenforceable.” The ruling is a win for nonutility transmission developers.
N.C. regulators approve Duke carbon reduction plan
North Carolina regulators accepted Duke Energy’s plan to reduce carbon, a controversial proposal that boosts renewables, shrinks coal power, and includes 9 gigawatts of new gas-fired plants. Under the ruling, Duke does not have to make a legally mandated 70 percent emissions cut by 2030 but now must take “all reasonable steps” to meet that target as early as possible.
Energy Industry in Transition
High court refuses to halt rule limiting power plant carbon emissions
The U.S. Supreme Court rejected “emergency” calls to pause an Environmental Protection Agency rule limiting carbon emissions from power plants. But two justices, while rejecting the application to stay the regulation, said “the applicants have shown a strong likelihood of success on the merits as to at least some of their challenges” to EPA’s rule.
Grid expansion plans totaling almost $40 billion advance
Two regional grid operators moved forward on plans for nearly $40 billion worth of new high-voltage power lines aimed at improving reliability and boosting the energy transition. The Southwest Power Pool board approved a $7.68 billion transmission plan, while the Midcontinent Independent System Operator saw strong support for a $30 billion transmission portfolio.
Utilities can take simple – and bold – steps to navigate the energy transition
As the world moves toward adopting cleaner sources of energy, there is general agreement that the destination is a decarbonized ecosystem. But how to get there is less clear. However, there are steps utilities can take – some simple, others big and bold – to navigate the energy transition and enable progress while managing rate increases.
U.S. steel industry will need 174 TWh of power annually to slash emissions
The U.S. primary steel industry will need 174 terawatt hours of power annually by 2050 to cut up to 57 percent of its emissions, a new report concluded – a 159 TWh increase from current practices. To support the next generation of steel with carbon-free energy, it added, will require at least 258 gigawatts of solar and wind, 58 GW of battery storage, and grid transmission reform.
Utilities pursue new climate strategies to deal with extreme weather
Electric utilities are pursuing new climate resilience strategies in the wake of extreme weather events like Hurricanes Helene and Milton. Experts said a well-planned, resilient system can help better withstand severe storms, adding that new climate modeling and asset performance metrics could show which investments make “previously disruptive events go unnoticed.”
Levelized cost of electricity for renewable technologies drops
The levelized cost of electricity for renewable energy technologies has dropped by 4.6 percent this year, supported by a 4.2 percent decline in capacity costs, according to Wood Mackenzie. The firm said it expected utility-scale solar to fall by an average of 60 percent by 2060, and onshore and offshore wind by 42 percent and 67 percent, respectively.
In a first, TVA and MISO can sell “emergency energy” to each other
The Tennessee Valley Authority and the Midcontinent Independent System Operator will be able to sell “emergency energy” to each other under a first-of-its-kind agreement. The TVA has been legally barred from delivering the power to MISO, but under the new plan filed with federal regulators, two members of the central U.S. grid operator can purchase power on its behalf.
Expert urges utilities to reject “clean energy tax,” focus on fixing performance
An expert in energy law and the U.S. power sector argued that federal regulators can’t ensure that transmission development meets public need if they don’t address utilities’ “misaligned incentives.” An important step, he explained, is to eliminate companies’ “clean energy tax” while rejecting utility monopolies and staying focused on correcting poor performance.
Dominion to add 21.1 GW of new clean power capacity over next 15 years
Dominion Energy plans to add 21.1 gigawatts of clean energy capacity in the next 15 years but will rely on gas-fired power to “bridge the gap” as demand surges. The company aims to deploy roughly 3.4 GW of new offshore wind, around 12 GW of solar, and about 4.5 GW of battery storage. It also plans to deploy five small modular nuclear reactors beginning in the mid-2030s.
U.S. grid has added battery equivalent of 20 nuclear reactors in past four years
The U.S. power grid has installed more than 20 gigawatts of battery capacity to the grid in the past four years – the equivalent of 20 nuclear reactors. The Energy Information Administration has projected that this could double again, to 40 GW, by 2025 if planned expansions move forward. Texas and California have paced the growth.
Ardor for low-carbon hydrogen dims over costs, slow demand, regulatory issues
Excitement over low-carbon hydrogen has begun to wane because of high project costs, lack of committed demand, and regulatory uncertainty. As a result, investors are reconsidering funding, and companies are revising their hydrogen production strategies. Major firms have slowed their plans, and only a few projects in North America and Europe have reached final investment decisions.