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Welcome to our sixth issue of Currents – our energy industry insights e-newsletter – for 2026.
We are pleased to announce that several of the firm’s practice groups and attorneys, including our Energy & Natural Resources and Environment practices, were recognized in the 2026 edition of Chambers USA, a directory of leading law firms and attorneys. Chambers and Partners annually researches the strength and reputation of law firms and individual lawyers across the globe. The evaluation process includes interviewing lawyers and their clients, including influential general counsel at Fortune 100 companies, high-profile entrepreneurs, and significant purchasers of legal services. Considerable credence is given to the opinions of clients. Click here to learn more.
Thank you for reading!
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Barry A. Naum
Chief Content Editor, Currents
Member, Co-Chair of Utility Law Group
| | Equinor USA Onshore Properties – Results and Impacts | | |
By Alexander Macia, Paul G. Papadopoulos and Chelsea E. Thompson
Recently, the Supreme Court of Appeals of West Virginia (SCAWV) awarded a total victory for natural gas producer Equinor USA Onshore Properties, LLC, regarding the calculation of severance tax and the timeliness of its appeals of those taxes. The decision not only affects how natural gas producers report and pay severance taxes, but also the manner in which appeals of those taxes (and others) are timely filed.
Click here to read the entire article.
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“The administration is invoking the Defense Production Act, a 1950 law that gives presidents broad authority over industries deemed critical to national security, to support existing coal plants and expand development.”
Why this is important: The Trump administration is using the 1950 Defense Production Act to issue $700 million in grants to upgrade coal plants in the U.S. New coal projects will receive $185 million, including a new coal plant in West Virginia, $425 million for upgrades to 13 existing coal plants in the U.S., and $75 million will be used to pay for upgrades to coal export facilities. --- Mark E. Heath
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“Positioning the commonwealth as a national leader in energy and data center development while keeping power reliable and affordable is a central goal in Gov. Josh Shapiro’s new budget plan.”
Why this is important: The article points out that a recent study by the Commonwealth Foundation concluded that Pennsylvania’s electric consumers have paid more than $3.3 billion in costs to support “alternative” energy policies and development. At a time when power affordability and reliability concerns are prevalent, continuing to pursue green energy mandates such as those reflected in Governor Shapiro’s 2025 “Lightning Plan” could exacerbate these problems without actually doing much for the environment. As quoted in the article by an officer of the Foundation, “Pennsylvania does not need energy mandates -- it needs affordable, reliable energy [resulting from] competition in the marketplace.” This is an important point and highlights the potential adverse effects of pursuing well-intentioned policies without considering the cost consequences for consumers. --- Derrick Price Williamson
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“There were 444 new wells drilled last year in Pennsylvania, an increase from 309 in 2024.”
Why this is important: Pennsylvania counties and municipalities that host natural gas wells are eligible to receive “impact payments” through a state program called Act 13. The fee amount is tied to factors such as the price of natural gas, the number of wells drilled, and population. Pennsylvania saw an increase in new natural gas wells in 2025, with 444 new wells drilled in the state, up from 309 new wells in 2024. This, in turn, drove up Pennsylvania's natural gas impact fee payments by 48 percent — or $79 million — compared to 2024, to $243.8 million statewide. Of that total, $133.8 million went to counties and municipalities, while the rest went to state agencies and the Marcellus Shale Legacy Fund. The impact payments could support major investments in local infrastructure or capital reserves, as long as local governments manage the money effectively. The top seven municipalities all received around $1 million, while the top seven receiving counties banked between $2 million and $7.8 million each. --- Jamie L. Martines
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“The latest win came when the Federal Energy Regulatory Commission issued a 3-0 decision to let the nuclear plant use grid interconnection rights currently assigned to an aging coal and gas power plant in Delaware County.”
Why this is important: The effort to restart the former Three Mile Island Unit 1 nuclear reactor has achieved another significant milestone, bringing the project one step closer to becoming the first commercial nuclear reactor in the United States to return to service after being retired for economic reasons.
The Nuclear Regulatory Commission recently issued a draft environmental finding concluding that restarting the reactor is not expected to result in significant environmental impacts. The determination represents a major step in the NRC's review process and reduces the likelihood that the project will require a more extensive environmental review.
Project developer Constellation has proposed restoring the facility to operation in response to growing demand for reliable, carbon-free electricity, particularly from large data centers and artificial intelligence applications.
The environmental finding follows other recent regulatory approvals, including actions related to the facility's grid interconnection rights. While additional licensing approvals, inspections, equipment upgrades, and testing remain necessary before the plant can resume operations, the latest decision strengthens expectations that the reactor could return to service as early as 2027.
The project is being closely watched as a potential model for future efforts to expand electricity supply by bringing retired nuclear generating assets back online. --- Jason Wandling
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“Rising concerns over energy security, fuel price volatility, and dependence on imports are driving renewed support for nuclear power.”
Why this is important: A growing number of governments and major corporations are embracing an “all-of-the-above” energy strategy that includes nuclear power as a critical component of long-term energy security. Recent geopolitical disruptions, fuel price volatility, and rapidly increasing electricity demand—particularly from artificial intelligence and data centers—have renewed interest in nuclear generation worldwide.
Japan, which sharply reduced its reliance on nuclear energy following the Fukushima disaster, is now considering the construction of additional reactors as concerns about imported fuel supplies and energy costs grow. China continues an aggressive nuclear buildout, with multiple new reactors expected to enter service this year and dozens more under development.
In the United States, technology companies are increasingly supporting nuclear projects to secure reliable, 24/7 electricity for expanding data center operations. Unlike intermittent renewable resources, nuclear power provides dispatchable, low-carbon generation that is less vulnerable to fuel market disruptions and geopolitical events. As a result, nuclear power is moving back toward the center of global energy planning after years of uncertainty about its future role. --- Jason Wandling
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“New U.S. regulations and a wave of startup interest are breathing new life into TRISO-fueled reactors, which have struggled to take off due to high fuel costs.”
Why this is important: A new generation of nuclear developers is betting on an advanced fuel known as TRISO (“tri-structural isotropic” fuel), which many industry advocates describe as significantly safer than conventional nuclear fuel used in today's commercial reactors.
TRISO fuel consists of tiny uranium particles encased in multiple layers of ceramic and carbon-based materials designed to contain radioactive byproducts even under extreme temperatures. Because of these characteristics, TRISO is often described as "meltdown-resistant" and is viewed as a promising fuel source for many small modular reactor (SMR) and microreactor designs currently under development.
Interest in the technology has accelerated as the United States seeks to expand domestic nuclear generation to meet growing electricity demand from data centers, artificial intelligence applications, and broader electrification trends. Several advanced reactor developers—including X-energy and Kairos Power—are incorporating TRISO fuel into projects now moving through the federal licensing process.
Recent regulatory developments may further boost adoption. The NRC has begun developing licensing pathways tailored to advanced reactor technologies, and regulators have cited the inherent safety characteristics of TRISO-based designs when evaluating certain projects. Supporters argue that these regulatory changes could shorten permitting timelines and reduce development risk.
Despite the growing enthusiasm, significant obstacles remain. TRISO fuel is substantially more expensive than conventional low-enriched uranium fuel, and the commercial supply chain remains in its early stages. While several companies are investing in domestic manufacturing capacity, large-scale production has yet to be demonstrated. Questions also remain regarding long-term operating performance because relatively few TRISO-fueled reactors have operated commercially.
The technology illustrates both the promise and challenges of the emerging advanced nuclear sector: improved safety and regulatory flexibility could help accelerate deployment of next-generation reactors, but widespread adoption will likely depend on whether manufacturers can significantly reduce fuel costs and establish a reliable domestic supply chain. For energy developers, utilities, and regulators, the evolution of TRISO fuel may become a key factor in determining how quickly advanced nuclear technologies move from demonstration projects to commercial-scale deployment. --- Jason Wandling
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“Solar and storage provided 90% of all new power added in the U.S.”
Why this is important: Solar has come a long way and is a fixture in integrated resource plans (IRPs) of many utility planners. In fact, the amount of power in the U.S. generated by solar (12.8 percent) has now surpassed power generated by coal (12.2 percent). As of May 2026, 45.5 terawatt hours of solar were generated, which is enough to power about 50 million households. This growth in solar energy has occurred despite administrative challenges and is expected to double in capacity by 2034.
Per the article, the growth of solar is important because it solidifies continued business opportunities for suppliers and contractors in the renewable energy space. It presents opportunities to evaluate the addition of battery storage to solar facilities to better meet peak demands utilities face. It requires careful planning and development of new solar sites, including consultation with real estate and environmental professionals to address site-specific properties and impacts. --- Stephanie U. Eaton
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“The 50 States of Solar Decommissioning: 2025 Snapshot report from the NC Clean Energy Technology Center and DSIRE Insight found that solar decommissioning policy is becoming an increasingly active area of state regulation, as lawmakers and landowners seek to clarify who is responsible for removing equipment, restoring land, and covering end-of-life costs.”
Why this is important: Producers of fossil fuels, like coal, oil and gas, are expected to make provisions for what happens at the end of production – reclamation for coal mines, well plugging for oil and gas. As the first large installations of solar panels are coming to the end of their working lives, more thought is being given to how the sites should be closed and/or the photovoltaic panels disposed of. Co-located battery installations are facing some of the same scrutiny. --- David L. Yaussy
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“Three reports lay out recommendations for development of an offshore transmission system and highlight the potential for high voltage direct current technology.”
Why this is important: President Trump’s memorandum, commonly known as the “Wind Memo,” forced the development of offshore wind projects to a halt, but a series of cases litigated in the 1st Circuit held that the memorandum and subsequent agency action were unconstitutional. Thus, removing the “unlawful ban on wind energy” and resuming development of offshore wind projects.
Following the resumption of development of offshore wind projects, the article states that the Northeast States Collaborative on Interregional Transmission published three reports containing recommendations for offshore wind projects. These recommendations included information regarding technical specifications for projects, procedural and procurement approaches for projects, and opportunities to modernize existing project plans to reflect new technologies. These reports provide suggestions for future wind projects and stand for the reinvigoration of offshore wind projects after the “Wind Memo” had been struck down. These recommendations also reflect the willingness of some states to push through disruptions that the federal government has created to slow the development of wind power. --- Andrew B. Komorowski, Summer Associate
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“The utility would use onshore infrastructure at the site for a wind farm off the Outer Banks.”
Why this is important: Dominion Energy has been required by the Virginia Clean Economy Act to produce more zero-emission power. Dominion is more than happy to comply, building one large offshore wind farm (the Coastal Virginia Offshore Wind project) and planning another off the Outer Banks. The reason is simple – regulated utilities make money from capital expenditures, for which they are allowed a reasonable rate of return as a percentage of the cost of construction. Offshore wind facilities are capital intensive and expensive, leading to large recoveries for the utilities. The Trump administration is fighting offshore wind projects, but Dominion is moving ahead with its plans, doubtless hoping to outlast that opposition. --- David L. Yaussy
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“The International Energy Agency slashed its global oil demand outlook for this year, as higher prices weigh on consumption, but said a post-war supply rebound could lead to an oil glut in 2027.”
Why this is important: In a somewhat surprising development, the International Energy Agency believes the effect on the world oil supply caused by the Iranian war will be a drop in oil demand by more than 700,000 barrels per day until the end of 2026 and then an increase in demand in 2027. IEA says that the global demand for oil will decrease 3.9 million barrels per day for the rest of this year, which means a new total demand of 102.4 million barrels per day. But they predict oil demand will increase next year to 110.3 million barrels per day. In addition, since February 28, 2026, when the war began, world oil inventories have dropped 3.8 million barrels per day. Those decreases factored into the significant oil price swings since the Iran conflict began, as countries, including the U.S., withdrew oil from strategic reserves. --- Mark E. Heath
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“China is driving the transition, but Europe and other countries are catching up fast.”
Why this is important: This article highlights how rapidly changing consumer demand and technological advances can reshape an entire industry. The growth of electric vehicles is occurring much faster than many experts predicted, suggesting a major shift in transportation and energy systems on a global scale. Countries that establish leadership in electric vehicle production may gain long-term economic advantages. This article also demonstrates that the transition to clean energy may be driven by affordability and performance, rather than solely by government regulations or environmental concerns. The rapid adoption of electric vehicles could influence future investments into energy production and technological advancements, making this an important development for economies worldwide. --- Jessica Blevins, Summer Associate
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“The plaintiffs argued the 11 projects – located in New York, Oregon, Connecticut, Minnesota, and Colorado – were targeted because those states voted for former Vice President Kamala Harris.”
Why this is important: A U.S. District Court Judge has enjoined the Trump administration‘s attempt to cancel $82.1 million in clean energy grants to 11 projects. Plaintiffs alleged that projects in New York, Oregon, Connecticut, Minnesota, and Colorado were selected because they were located in states that voted for Democratic Presidential candidate Kamala Harris in the 2024 election. The 11 grants have been ordered fully reinstated, but DOE says it will appeal. --- 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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