PJM
PJM advances transmission plan for grid reliability
PJM made its final presentation of recommended transmission projects aimed at boosting grid reliability to one of its advisory panels, and the proposals now move on to the RTO's full board. The plan addresses multiple issues, including accelerated load growth and changes in the generation mix. The expected investment is between $5.9 billion and $6.3 billion.
PJM reaches deal to lower capacity auction price cap
PJM reached a settlement with Pennsylvania Gov. Josh Shapiro aimed at avoiding a "runaway auction price" that would have sharply raised bills. The deal sets a $325 per megawatt-day price cap and a $175/MW-day floor for PJM's 2026-2027 and 2027-2028 delivery year capacity auctions – down from the current cap of over $500/MW-day.
State Regulatory Developments
Appeals court says FERC erred in not stripping two ROE transmission adders
A U.S. appeals court ruled that the Federal Energy Regulatory Commission erred in declining to remove an extra 0.5 percent return on equity from the Duke Energy and FirstEnergy Ohio utilities as an incentive to join an RTO. At the same time, the court also upheld FERC's ruling that ended the extra ROE for American Electric Power and Dayton Power.
AEP, Ohio regulators agree on smart grid plan
American Electric Power reached a settlement with Ohio regulators on its latest plan to improve grid reliability and prevent or shorten power outages. The plan includes installing or improving technologies on up to 412 circuits in its territory that detect outages and automatically reroute the power to minimize the number of affected customers.
With 1.4 million panels, Ohio's largest solar farm comes online
Ohio's largest solar farm, consisting of 1.4 million solar panels, has come online. The project, which was completed in three phases, can produce enough clean power to serve the equivalent of 118,000 households, but its full capacity will be delivered to Amazon through power purchase agreements. However, its status as the state's biggest will be short-lived.
Nuclear
NextEra takes steps toward restarting shuttered nuclear plant
NextEra is moving to potentially revive a nuclear plant as soon as 2028. It filed a request with the Nuclear Regulatory Commission to seek a licensing change for the facility, which it shut down in 2020; this is a significant step toward a possible restart. NextEra also signed a partnership with GE Vernova to develop gas power projects that will serve, among other customers, data centers.
Abandoned South Carolina nuclear project may be resurrected
A partially built but abandoned nuclear project in South Carolina could see a new life. Santee Cooper, the state-owned utility, has begun a process seeking proposals to acquire and finish, or propose other options for, two partially constructed generating units at the V.C. Summer Station. The utility said multiple factors drove its decision.
Its climate goals threatened, New York rethinks nuclear
As greenhouse gas emissions increase and threaten its ambitious climate goals, New York is rethinking nuclear power. When the Indian Point nuclear plant closed two years ago, it was considered a win for public safety and environmental protection. But today, with concerns that gas, wind and solar may not be enough to meet demand, nuclear is getting another look.
Report identifies 8 Indiana coal sites having potential for nuclear plants
A new report from Purdue University concluded small nuclear reactors (SMRs) could have "substantial" potential for Indiana, and identified eight coal sites that could represent coal-to-nuclear opportunities. In the long term, researchers said, SMRs can "mitigate the economics" of coal plant closures and foster "significantly cheaper" and cleaner energy.
Energy Industry in Transition
DOE: Improved interconnection processes vital to DER
Utilities and grid operators must improve interconnection processes for distributed energy resources if they are to maximize the potential of DER in the next five to 10 years, according to the Department of Energy. Those improvements include increasing access to data, streamlining study workflows and revising approaches to cost allocation.
Solar capacity additions hit second-highest monthly total on record
New U.S. solar capacity added in November was the second-highest monthly total on record. Solar made up 81.4 percent of new capacity in the first 11 months of 2024 – and 98.6 percent in November alone. Additionally, solar additions exceeded capacity from all other resources through November, which was also the 15th straight month they led utility-scale capacity.
MISO lauded for leadership in grid transmission planning
The former chair of the Arkansas Public Service Commission said that the Midwest is poised to build the necessary infrastructure to serve continued economic growth. He pointed to projects by the Midcontinent Independent System Operator as examples of this "build, baby, build" approach, saying the grid operator had emerged as a leader in regional transmission planning.
U.S. power prices flat, but residential prices outpace inflation
A new report found while average U.S. retail power prices have been largely flat in recent years, residential prices are rising faster than inflation. Prices in most states grew by less than 0.5 cents per kilowatt hour per year, but there were differences by state and region: Larger increases were seen in California, Hawaii, the Northeast and parts of the upper Midwest. Only North Dakota declined.
Energy efficiency enters 2025 facing uncertainty
Energy efficiency is expected to face challenges and opportunities this year, driven by rising prices and a new president and Congress. Power usage rose slightly in 2024, but a surge is looming; AI's strain on systems will grow; Washington policymaking poses threats, but states and localities can step in; and businesses will play a vital role in the energy efficiency sector.
Global corporate spending on solar, storage, grid firms fell in Q4
Global corporate investment in solar, storage and smart grid firms fell in the fourth quarter of 2024. In a slow year overall, venture capital was down 36 percent year over year in solar and 60 percent in storage, and public market funding for solar slid 59 percent. The declines likely reflect uncertainty over the presidential election and President Donald Trump's approach to clean energy.
Christie named FERC chair, vows to fight 'excessive power costs'
Trump elevated Mark Christie to replace Willie Phillips as head of the Federal Energy Regulatory Commission. The new chair said he will continue his efforts to "protect consumers from excessive power costs," deal with a reliability crisis brought on by plant retirements without sufficient replacement capacity and strengthen FERC's partnership with states.
U.S. policy rollbacks likely won't slow power demand growth
The power sector is at a "tipping pint," experts say, as increasing demand pushes consumption growth to levels not seen in decades – highlighting the need for new grid spending and integrated resource planning. While questions have swirled over whether the new Congress and Trump administration might impact these trends, they argue any policy rollbacks won't stop the growth.
Solar braces for challenges, but continued strong run is predicted
After a series of record-breaking years, the solar sector now faces the possibility the Trump administration might pull back the subsidies that have fueled the boom. But most experts believe the industry can overcome any potential hurdles, as growing power demand, falling deployment costs and more domestic panel manufacturing may support the industry – at least for now.
Emerging Risks
AEP agrees to settle SEC corruption charges for $19 million
American Electric Power agreed to pay $19 million to settle charges it was involved in a corruption scandal over legislation in Ohio. In settling with the Securities and Exchange Commission, AEP did not admit or deny the SEC's allegations that it took part in public corruption and contributed to a nonprofit lobbying group to get the legislation passed.
Ohio well pad explosion kindles concerns about drilling on public land
A well pad explosion near a state park that was opened to oil and gas exploration in 2022 has raised concerns over drilling on public land in Ohio. While there were no reported injuries or impacts on wildlife or water, critics argued the incident shows the risks that can occur as drilling infrastructure nears state land. The industry pushed back against the claim.
FERC urged to adopt gas pipeline reliability mandates for cold weather
National Grid and Consolidated Edison urged the Federal Energy Regulatory Commission to adopt reliability standards for gas pipeline operators to ensure the availability of fuel supplies in cold weather. They said voluntary efforts were inadequate, and National Grid argued FERC should mandate pipeline reliability reporting, enforcement mechanisms and tariff reforms.
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