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Welcome to our first issue of 2026 of Currents -- our energy industry insights e-newsletter. This is our 10th year of publishing Currents, and we hope you find it informative and helpful. If you have suggestions for content, format, or anything else, please contact us. We appreciate you taking the time to read and engage with our content.
ABA 2026 Joint Regional CLE Program, January 28 – 30, 2026, Steamboat Springs, Colorado
Spilman is pleased to sponsor this multi-day program featuring eight plenary presentations on hot litigation topics, including committee-specific content, broader litigation interests, and ethics. In addition to an agenda of diverse educational sessions, there will be time to enjoy outdoor activities and network with your colleagues. Our own Cliff Kinney will be serving as a moderator. Click here to learn more.
2026 National Labor & Employment Law Symposium, February 1 – 4, 2026, Steamboat Springs, Colorado
For those of you interested in labor and employment law topics, please join this exclusive gathering of top national and international labor and employment lawyers for the latest legal updates in a close-knit, collegial atmosphere. More than a dozen sessions, in a roundtable format, will cover cutting-edge labor and employment topics. In between sessions, participants will have plenty of time to enjoy skiing in Steamboat Springs or networking over drinks or dinner. Click here to learn more.
Again, thank you for reading!
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Barry A. Naum
Chief Content Editor, Currents
Member, Co-Chair of Utility Law Group
| | The Trump Administration's EPA: Deregulation in 2026 | | |
By Jason E. Wandling
Two recent actions by the United States Environmental Protection Agency (USEPA) show the Trump administration’s commitment to the coal industry and to redefine the landscape of electricity generation over the next decade.
Click here to read the entire article.
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“Oil markets are oversupplied heading into 2026, pressuring prices and favoring integrated majors and midstream infrastructure over pure upstream exposure.”
Why this is important: Entering 2026, there is a paradox in the energy markets in which there is too much oil but too little electricity. Specifically, oil is currently oversupplied, and electricity demand is accelerating because of data center buildout and electrification.
While oil supply has historically signaled energy security, the landscape is rapidly changing. Reliable, dispatchable power is now the determining factor for energy security. The article contends that the power grid is thus becoming the most consequential energy story of 2026. PJM Interconnection's most recent capacity auction resulted in a surge in prices due to the shortage of firm power. Infrastructure and reliable power production plants are now the key constraints on economic growth. --- Steven W. Lee
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“While the U.S. action is unlikely to have an immediate impact on crude prices given the current glut in the market, it could upend energy markets and have an impact on the geopolitical landscape.”
Why this is important: Venezuela produces heavy crude oil, which is essential for the production of diesel fuel, asphalt, and other fuels for heavy equipment. This is important as this heavy crude oil is in short supply around the world after the United States placed sanctions on the oil from Venezuela and Russia, where it is also produced.
The Venezuelan oil industry has been neglected and will likely require billions of dollars to repair its infrastructure; accessing the oil would have a significant impact. Although the United States’ action in Venezuela is unlikely to cause near-term impact on these heavy crude oil prices, it could eventually influence the energy market and geopolitical landscape. Per the article, Venezuelan oil, in combination with massive oil finds off the coast of Guyana, can have a major impact on international energy markets, putting the United States in a position to have about 30 percent of the world's total global oil reserves. --- Taiesha K. Morgan
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“When utilities use ‘construction work in progress’ accounting, ‘cost overruns become profit opportunities rather than financial penalties,’ the authors of a Manhattan Institute brief said.”
Why this is important: The article summarizes an academic report issued by the Manhattan Institute that critiques the use of Construction Work in Progress or “CWIP” accounting and surcharge cost recovery, which monopoly utilities seek to use in collecting the costs of projects that they undertake, such as building a new power plant or a transmission line. This method shields the utility and its shareholders from the risk of those investments by recovering those costs from ratepayers before the projects are complete and providing a useful service. This has the effect of operating as a tax on consumers, and the article highlights examples of how CWIP can result in cost overruns and extended timelines. Ultimately, the paper recommends that public utility commissions disallow CWIP to protect consumers as we enter into an “infrastructure-building super cycle” for new electric transmission and generation projects. --- Derrick Price Williamson
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“As clean energy prices fall, a fast transition to renewable energy is the cheapest option on the table.”
Why this is important: The article claims that transitioning to clean energy is a major economic opportunity that gets overshadowed by environmental talking points. A quick transition to clean energy could save the global economy trillions of dollars because the more renewable energy technology being made, the cheaper it becomes. This theory is known as a “learning curve,” which is akin to what happened to aircraft, cars, computers, and DNA sequencing over the past century. The article posits that, like those industries, clean energy prices will continue to drop as more technology is developed. In the past 10 years, solar panel costs have dropped by around 90 percent, and wind power and renewable energy battery storage have also experienced price drops of 70 percent and 85 percent over the past 15 years. But not all clean energy technologies offer the same economic benefits; for example, nuclear power has continued to grow more expensive over time due to its high construction, maintenance, and operating costs, limiting its potential to deliver the trillions in savings seen with some renewable sources.
The article notes that, conversely, even with the infrastructure already in place, fossil fuels will remain costly because of the high operating costs associated with mining, transportation, and heavy machinery required to extract and process these fuels. Clean energy like solar and wind has high up-front costs, but once the infrastructure is in place, there are low operating costs, thus overall energy spending does not need to increase; instead, existing resources can be redirected from non-renewable fuels to renewable energy sources to accelerate the savings and growth. --- Nicholas A. Muto
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“West Virginia and other Appalachian states counting on federal investment in clean energy are seeing funds vaporize, leaving communities uncertain about jobs, reduced emissions and their economic future.”
Why this is important: There is a real and immediate economic uncertainty facing West Virginia as clean energy investment stalls, a development that could have deep implications for jobs and regional growth. Federal funding and private clean energy investment that had begun to flow into the state and broader Appalachian region are now evaporating, creating an unpredictable future for communities that were counting on these projects to replace declining coal-related jobs and stimulate economic diversification. The article claims that this shift not only threatens promising clean energy infrastructure projects but also undermines efforts to modernize West Virginia’s energy sector at a time when broader U.S. clean energy investment has faced setbacks.
In addition, the article sheds light on how policy decisions and shifts at the federal level directly affect local economies and workforce opportunities in historically fossil-dependent regions. With billions previously committed to transforming West Virginia into a hub for clean technology manufacturing and energy production now at risk, the state’s ability to create more sustainable, high-quality jobs is in jeopardy. This story underscores the broader national debate over energy policy, the role of government incentives, and the competitive landscape for clean energy investment, all of which matter not just to West Virginia but to the future direction of the U.S. energy economy. --- Nicholas A. Muto
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“Consumers could feel an even greater squeeze in the years ahead, as utility companies predict that efforts to build data centers across the state to meet the artificial intelligence demand will worsen the crunch.”
Why this is important: Energy prices have increased precipitously in recent years, with data center demand accelerating. PJM Interconnection's 2024 auction resulted in prices increasing 800 percent from the prior year. In the December 2025 auction, prices hit a record high.
The Pennsylvania Legislature's solution to the price increase and rise in electricity demand is to focus on increasing energy production. Partisanship, however, may hinder Pennsylvania's ability to pass legislation to alleviate electricity costs and increase production. There are multiple proposals for different solutions – speeding up permitting, building more renewable energy or natural gas plants, developing more nuclear power, etc. While reducing energy costs is the goal, there is currently little agreement on how to achieve it. --- Steven W. Lee
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“According to a September 2025 report from the Energy & Manufacturing in Appalachia initiative, approximately 92 gigawatts of data center capacity are currently in the pipeline across the United States, with seven gigawatts being added monthly by the end of 2024.”
Why this is important: The U.S. Department of Energy projects that data centers could consume between 6.7 and 12 percent of total U.S. electricity by 2028. This growth requires new power generation. With the 300 traditional data center hubs becoming saturated in Northern Virginia, data center developers and tech companies are pushing for growth in the depopulated communities where coalfields used to populate in Kentucky, West Virginia, and Virginia. This growing industry could have an impact on tax revenue, the job market, and the environment. --- Taiesha K. Morgan
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“The results are unmistakable: every state has taken steps to advance electric vehicles, and many are deploying innovative policies that deliver cleaner air, lower costs, and create economic opportunity.”
Why this is important: A new state survey by the Environmental Defense Fund finds that while the federal government under the new administration has attempted to weaken or eliminate support for the transition to electric vehicles (EVs), states have continued to support the growth of EVs in private and public transportation. A 50-state survey finds all states are supporting EV transportation in a variety of ways. In rating states in 16 categories, including financial incentives, charging infrastructure, and support for public fleet electrification, the survey finds diverse states such as Arizona, Illinois, Alabama, and Colorado are supporting the transition to EVs. Colorado has rebates of $9,000 for new EVs and $6,000 for used ones; incentives in California range from $1,500 for plug-in hybrids to $330,000 for replacing fleet vehicles; and Texas is supporting using EVs to replace diesel vehicles. States are also incentivizing the installation of additional fast chargers and all states and DC are working on developing fast charging corridor plans. Finally, Connecticut and Maine are supporting public transportation vehicles by making the transition from diesel to 0 percent emission vehicles. While the elimination of federal tax credits has hurt the consumer market for EVs, state efforts will likely continue to cause the EV market to grow. --- Mark E. Heath
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“Pennsylvania lawmakers have been at an impasse on clean energy legislation for years. “
Why this is important: Once a leader in renewable energy, Pennsylvania has since fallen behind neighboring states in large part because of division in the State Legislature over energy policy. That could be changing. The passage of the $25 million Solar for Schools bill, which survived contentious state budget negotiations late last year, signals that there could be bipartisan support in Pennsylvania for distributed energy projects. Distributed energy projects are energy generation projects—such as small solar arrays—that serve customers in an immediate area and do not need to be connected to the grid. This makes them less complicated when it comes to passing legislation to fund or regulate these projects—and, as a result, could provide an opportunity for renewables to regain a foothold in the state. --- Jamie L. Martines
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“Ohio's highest court is reviewing multiple cases that hinge on how ‘public interest’ should be defined when approving large solar projects, with significant implications for Ohio's energy landscape.”
Why this is important: In addition to receiving approval from the Ohio Power Siting Board, developers interested in siting large-scale solar projects in Ohio are increasingly being asked to clear an additional hurdle: They must also convince the Ohio Supreme Court that a project is worth building in a particular area. More specifically, appeals from Ohio Power Siting Board decisions are asking the Court to consider whether projects “serve the public interest,” as required by Ohio state law, and how that phrase should be defined. As the article points out, the Court’s decisions in these cases will affect “what kinds of power Ohio generates, where it’s generated, and how quickly new solar energy comes online—if it comes online at all.” Developers planning projects in Ohio may want to consider how appeals from Ohio Power Siting Board decisions could affect project timelines and look to recent Court decisions for strategies to preempt those challenges. --- Jamie L. Martines
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“The resulting oxygen is released into the atmosphere, while the green hydrogen is delivered to reinforced containers for safe storage.”
Why this is important: On January 7, 2026, Duke Energy Florida (DEF) revealed exciting news for those interested in diverse, on-demand and clean electricity generation: the development of a hydrogen production storage system. DEF’s demonstration project is located at its DeBary solar facility in Volusia County, Florida, and is capable of producing, storing, and combusting up to 100 percent green hydrogen. The project design includes two electrolyzer units that separate water into oxygen and hydrogen, then release the oxygen into the atmosphere, leaving behind “green hydrogen” that is safely stored in containers. At times of peak energy demand, the system releases the green hydrogen to the site’s GE Vernova combustion turbine that is fueled by either 100 percent hydrogen or a combination of natural gas and hydrogen. This innovative project will be evaluated by DEF and by clean energy advocates for its ability to offset some of the need for natural gas during times when solar generation is not available. Over time, it is believed that green hydrogen projects such as the one in Volusia County will help offset natural gas demand, which can reduce sometimes volatile fuel costs, as well as provide clean energy production. --- Stephanie U. Eaton
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“The move comes after the Trump administration ordered work to halt on five offshore wind projects totaling 7 GW.”
Why this is important: Senate Democrats have ended efforts to pass legislation to speed up permitting for energy projects in response to the Trump administration’s halting previously approved permits for offshore wind farms. The Standardizing Permitting and Expediting Economic Development Act, “the SPEED Act,” was designed to revise the National Environmental Policy Act, which requires federal agencies to assess how their actions affect the environment. In recent years, many gas pipelines and other critically needed energy projects have been tied up in endless permit reviews and litigation that not only slowed the construction of major energy infrastructure but also greatly increased costs. The House passed the SPEED Act in December and a bipartisan group of senators was working on getting it through the Senate. But that work stopped following the Trump administration’s decision to pause leases and order work to halt for 90 days for undisclosed national security reasons that affect five offshore wind projects: the 2.6-GW Coastal Virginia Offshore Wind, the 2-GW Empire Wind and 924-MW Sunrise Wind off of New York, the 800-MW Vineyard Wind 1 off Massachusetts, and the 700-MW Revolution Wind offshore Rhode Island. Sens. Sheldon Whitehouse, D-R.I., the ranking member of the Environment and Public Works Committee, and Martin Heinrich, D-N.M., the ranking member of the Energy and Natural Resources Committee, announced that the administration’s permit action on previously approved and fully permitted wind projects stops all work on the SPEED Act. The two thanked West Virginia Senator Shelley Moore Capito, R-W.Va., and Senator Mike Lee, R-Utah, chairs of the Environment and Public Works and Energy and Natural Resources Committees, for their work on the bill prior to the suspension of the offshore wind project permits. Without legislation, almost all new energy projects will continue to face protracted delays from permitting and litigation once permits are issued. --- Mark E. Heath
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Here is a round-up of the latest statistics concerning the energy industry.
ELECTRICITY
PETROLEUM
NATURAL GAS
COAL
RENEWABLES
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