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Welcome to our 11th and final issue of 2025 of Currents -- our energy industry insights e-newsletter.
A sincere thank you to everyone who read Currents this year. As we plan for 2026, please let us know what you would like to see in the new year. Do you have topics you would like us to discuss? A change in the format? Any other suggestions? We welcome all thoughts and suggestions. Email us and we will be sure to discuss the best ways to keep this publication at a high level of value.
Again, thank you for reading!
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Barry A. Naum
Chief Content Editor, Currents
Member, Co-Chair of Utility Law Group
| | Renewal of the Dominant Model for Power | | |
By Derrick Price Williamson
For over a century, the United States has implemented an overarching energy policy referred to academically as the Dominant Model. That traditional policy, developed over the bulk of the last century, has promoted four key fuel resources for power: oil, coal, nuclear, and natural gas -- with the latter three forming the three-legged foundation for the electric industry. The effective intent of that policy has been promotion of a large-scale, national energy industry as the feedstock for economic growth and prosperity.
In the last decade or so, in part in response to negative externalities like climate change and in recognition of technological advances in renewable power production, the three-legged stool forming the basis of power for the Dominant Model began to wobble with increases in solar and wind power production capacity, the closure of many coal-fired power plants as a result of higher coal and compliance costs, and the regulatory and political promotion of broader “clean” energy policies, such as President Obama’s Clean Power Plan.
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“FirstEnergy announced it is planning to invest $7.7 billion to build a new natural gas-fired electric plant along with utility grade solar in West Virginia.”
Why this is important: The article provides an overview of FirstEnergy’s announcement of “plans” to invest several billion dollars in West Virginia for infrastructure upgrades and, most notably, to build or acquire a 1,200 megawatt natural gas-fired power plant. Although the announcement is devoid of details, this is important because it raises critical questions. At the forefront will be who FirstEnergy proposes to pay for its circa $5 billion power plant. Often, monopoly utilities (like FirstEnergy’s operating companies) seek to shift the risk of such massive investments from their shareholders to their captive customers. They do this by seeking to impose surcharges on ratepayers even before the plant is up and running; in this way, if there are construction cost increases or delays, the utility is still recovering investment costs from customers who are not receiving a “used and useful” service. Another question is whether it would be more economically prudent for West Virginia (and the region) if a competitive wholesale power provider built such a natural gas-fired power plant. The benefits from construction, jobs, and utilization of West Virginia natural gas would all be essentially the same, but without saddling captive retail customers with decades of cost (plus a regulated rate of return) as would be the case if FirstEnergy builds (or buys) such a plant in the name of its monopoly utility companies. --- Derrick Price Williamson
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“Resistance from landowners is visible across the country as companies pursue new oil, gas and carbon projects.”
Why this is important: The Trump administration’s plans for energy dominance are running into the same problem that stymied the Biden administration’s attempts to boost clean energy production – claims of property rights that stop new projects from being built, such as pipelines for oil and gas. Currently, the Federal Energy Regulatory Commission has 1,500 miles of new gas pipelines in its list of pending projects. The focus by property owners opposing the new pipelines and power lines President Trump wants to build is arguing that the new projects cannot be built as they violate the property rights of landowners and constitute improper use of eminent domain. Forces opposing Trump projects are joining with environmental groups to keep new energy projects from being built. In fact, groups just stopped a proposed 2,000-mile CO2 pipeline in the Midwest by arguing the project violated a farmer’s property rights. The solution to these issues is likely the one used to complete the MVP pipeline in Appalachia – Congressional legislation to exempt such projects from environmental lawsuits. --- Mark E. Heath
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“One way they’ve tried to circumvent the will of the people is by having blue states and cities sue energy companies for ‘climate damages.’”
Why this is important: The District of Columbia Circuit Court of Appeals upheld a regulation that created tighter standards for gas-powered commercial water heaters and consumer furnaces. This could lead to certain types of gas appliances being pushed out of the market. Both energy companies and environmental groups are responding with additional litigation. Energy companies are fighting to keep natural gas projects alive, while climate activists are continuing to push back and move to implement more environmentally friendly energy sources. It is predicted that this issue will continue to the Supreme Court, as some states and cities are suing energy companies for climate damages as a result of the production of natural gases. The question is whether the states have the power to regulate these issues, as some argue that it would fall under Congress’s authority to regulate interstate commerce. --- Taiesha K. Morgan
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“PJM, the grid operator for 13 states including Pennsylvania, said that it and its members have sufficient resources to serve the 67 million people in its footprint this winter under expected conditions.”
Why this is important: After several years of concerning reports from regional transmission operators (RTOs) around the country and about a lack of supply, PJM Interconnection, LLC (PJM), the RTO over the 13-state region including Virginia, West Virginia, Pennsylvania, Ohio, and several other Mid-Atlantic states recently reported that it expects to have sufficient generation to meet peak needs this winter. Indeed, PJM reports having sufficient resources to meet projected peak needs (which, if met, would represent a record peak level of energy demand) plus additional reserve in the event energy needs are higher than forecasted. PJM also plans to conduct substantial testing on generation resources within its footprint to seek to confirm the ability of resources to provide power when needed. --- Carrie H. Grundmann
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“Data center demand for computing facilities that can consume as much power as entire cities, but America's electrical grid is struggling to keep pace.”
Why this is important: Artificial Intelligence (AI) is not new, but it has certainly taken center stage in national energy production and development discussions. The article amplifies the fact that the U.S. energy grid is old and in need of serious renovation. In addition to current development and consumer needs, AI centers are requesting and requiring a range of multiple gigawatts of power. Some analysts estimate that trillions of dollars are likely to be invested between now and 2030, with as much as $3 trillion by 2028. A key roadblock is access to fundamental components needed for infrastructure upgrades, such as transformers. With supply chain delays, resource market fluctuation, and the ever-increasing competition from multiple market sources, the increased demand on the grid is also creating delays in the development of other legitimate projects because of the backlog of planned but possibly hypothetical AI data projects. Acres of space, gigawatts of power, and potential environmental consequences are the holy trinity of the AI frenzy. How the grid will sustain itself and expand to meet these demands is yet to be determined. --- Sophia L. Hines
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“Virginia has the world's largest concentration of data centers, which are facilities designed to house the technical infrastructure that allow artificial intelligence to operate, and demand for them has only continued to grow as the AI boom proliferates.”
Why this is important: This article discusses newly elected Virginia Governor Abigail Spanberger’s initial thoughts on energy policy in Virginia. In many respects, her recommendations – building more generation and requiring data centers to pay their fair share – are nothing new. Parties who frequently litigate energy matters before the Virginia State Corporation Commission are already aware of the need (and plan) for new generation resources in Virginia, particularly within Dominion Energy’s service territory, and of ongoing matters before the Commission to consider how to allocate costs to data centers. While the issues facing Virginia are not new, the question is how Governor-elect Spanberger plans to address the energy issues facing Virginia. At least one sign of how the incoming administration’s plans to address this question is answered by the recent announcement of the individuals tapped to serve on the transition team for Energy, all three of whom spent time and/or are currently with the Southern Environmental Law Center. How this will unfold will become clearer as we move towards the inauguration. --- Carrie H. Grundmann
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“The PUC drafted a plan for how large electricity users pay for power and interact with the grid.”
Why this is important: The Pennsylvania Public Utility Commission (PUC) has drafted a “model tariff” plan to figure out how big electricity users pay and interact with the energy grid as a whole. The main concern is to protect regular households from paying more because of the introduction of big energy users like data centers. This is an issue that many households are facing in the United States, not just in Pennsylvania. If the plan moves forward, it could lay the framework for other parts of the country to follow.
The actions taken by the PUC come at the same time that customers are reporting an increase in their electric rates, including proposed rate increases from regulated utilities, like PPL. Although distribution charges -- for costs tied to delivering electricity through local lines to homes and small businesses -- and transmission charges for the cost of transporting electricity long distances and at higher voltage levels for large users are usually handled differently as between residential consumers and large customers, the concern is that if there is more investment in transmission infrastructure and new generation to serve data centers, then that will lead to more residential customer rate increases.
Those in communities that are to be affected by data centers moving in have pushed back on the potential increase to their electric bills. This will not be the last time that there is a state or community that tries to strike this balance. This balance is necessary if areas want to continue to support data center development. --- Nicholas A. Muto
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“The Trump administration struck a deal last month with the owners of Westinghouse to invest $80 billion to build nuclear plants across the U.S.”
Why this is important: The Trump administration’s Secretary of Energy Chris Wright believes most of the funds for new energy development will go to nuclear projects. The administration is working with Westinghouse to invest $80 billion in nuclear plants. The new AP1000 reactor Westinghouse is working on can power 750,000 homes and could be critical to meeting new power demands from AI projects. One of President Trump’s new Executive Orders calls for the U.S. to break ground on 10 large nuclear plants by 2030. Secretary Wright hopes to see 12 new nuclear plants under construction when President Trump leaves office in three years. --- Mark E. Heath
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“'The idea is to have people who are solar home owners to be able to mingle with what we call the ‘solar curious’ — those who are interested in going solar,’” said SUN West Virginia Program Associate Cory Chase.
Why this is important: The Washington, D.C.-based nonprofit Solar United Neighbors, or SUN, is expanding its presence in West Virginia by hosting another “solar co-op” in the state across Berkeley, Jefferson, and Morgan counties in 2026. The goal, according to SUN representatives, is to support participants who are interested in installing solar panels on their properties at a reduced group rate. According to figures provided by SUN, the organization has so far helped 180 families start using solar power and installed 1.4 MW of solar capacity across the state. This is important because even if the move towards residential solar is incremental, understanding the rising interest in these programs may offer insight into how residential customers are managing their energy bills, their confidence in utility providers, and their changing energy needs. --- Jamie L. Martines
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“As the nation’s solar capacity continues to expand, federal regulators have yet to finalize a cohesive framework for managing end-of-life solar panels—leaving states, local governments, and the private sector to navigate a growing policy gap.”
Why this is important: The Environmental Protection Agency has pushed rulemaking to deal with the impending wave of soon-to-be-retired solar panels to February 2026, with an expected completion date of August 2027 – nearly a year later than originally projected when the Agency announced these efforts in 2023. Solar panels contain both glass and toxic heavy metals, which need to be separated before the panels are recycled. Some states have put regulations in place to guide this process, while others have no rules at all. This lack of clear, consistent guidance could threaten the growth of the solar industry because it makes it more difficult for stakeholders to plan ahead for the long-term costs and regulatory burdens associated with siting a new project. --- Jamie L. Martines
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“A planned supersized floating wind turbine with two spinning heads will generate nearly double the amount of energy as the current record-holder.”
Why this is important: The world’s largest wind turbine is setting records for energy production. The largest turbine being tested in China at sea has blades twice as long as a Boeing 777’s wingspan and will generate 26 MW of power. As this wind turbine is being completed, China has plans for an even larger one that will produce 50 MWs of power at sea. Due to reduced Chinese government subsidies for wind farms, China is building larger turbines to produce more power with fewer turbines, which reduces the overall cost of wind farms. --- Mark E. Heath
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“Consumers Energy and Detroit Edison (now known as DTE Energy) appointed TAES to overhaul the 1,875MW Ludington Pumped Storage Plant 15 years ago.”
Why this is important: The article explains the status of a breach of contract case arising from repairs made to the Ludington Pumped Storage Plant, which is a Michigan hydroelectric plant that opened in 1973 and features six 312 MW pump turbines. The plant is owned by DTE Electric Company. They contracted with Toshiba Energy Systems in 2010 to overhaul the plant. Toshiba provided a guaranty with respect to the contract, in which Toshiba agreed to “return the Plant to as nearly an as new condition as possible” and allow the plant to operate with a “minimum thirty (30)-year service life” with “only minimal routine maintenance.” Plaintiffs allege that TAES’s work is defective in multiple respects. The work, which began in 2015, resulted in operational issues that left several units inoperable for 90 percent of the year.
Construction has started on many new energy production projects since the injection of federal money in the first half of this decade. As some of these projects gain steam or even near completion, more and more of these kinds of claims with enormous damages claims will crop up. This suit alleges more than $800,000,000 in damages.
On September 26, the district judge ruled on several outstanding discovery motions to exclude expert witness testimony on both sides. On October 21, the court entered an order limiting each side to 77 hours of witness testimony at the trial. Both parties appear ready to try the case for at least a month. --- Jason E. Wandling
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“To reduce the administrative burden on all parties, regulators and utilities must explicitly distinguish between an EV that is merely ‘capable’ of bi-directional charging and one that is enabled.”
Why this is important: Electric vehicle batteries store large amounts of electricity, more than several days' worth of power for the average American home. They could provide flexibility for anyone who powers their home with a solar power/battery system by allowing them to hook up their home electrical system to a car that may have been charged elsewhere. In the winter, when power from a solar array is greatly reduced, an EV could be charged in town and later that night be used to power a house. But that only works if the car has the hardware and software that allow such bidirectional flow to happen. The federal government needs to set standards for what qualifies as bidirectionally capable and what is bidirectionally enabled. Clearly defining bidirectionally enabled will encourage the adoption of vehicle standards that will increase options for EV owners and solar energy users. --- David L. Yaussy
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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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