Author: Graham Foster

Dive Brief: The Public Utility Commission of Texas has recently approved a new net metering plan for a 260-MW AI data center that will be built alongside a wind farm of a similar size. This decision has the potential to set a standard for similar projects in the state. This will be the second data center at the site, with the developer arguing it should operate under different rules than the first since the combined load of both centers—around 525 MW—exceeds the generation capacity of 265.5 MW. The commission did not accept this argument. The recent order mandates that the…

Overview: Recently, New York Governor Kathy Hochul signed an executive order to pause the establishment of new hyperscale data centers, which are those that consume 50 megawatts (MW) or more of electricity. This moratorium will last for up to one year while state officials work on a regulatory framework. Details: The governor’s order gives the government time to review a recent legislative bill that outlines requirements for existing data centers. Hochul’s executive order aligns with many concerns raised in the proposed Responsible Data Center Development Act, which was passed by the state legislature earlier this year but remains unsigned. As…

CMS Energy recently announced its decision to sell non-utility renewable energy operations within its NorthStar Clean Energy Services subsidiary. This subsidiary is responsible for operating about 1.8 gigawatts of generation capacity across several states including Michigan, Ohio, and Texas. Based in Jackson, Michigan, CMS Energy mentioned that this move aims to streamline its corporate structure, generate approximately $500 million, and prepare the company to focus primarily on regulated utility operations after 2027. The utility branch, known as Consumers Energy, serves nearly 1.8 million electric customers and 1.7 million gas customers throughout central and western lower Michigan. CMS Energy will continue…

The Trump administration is looking into changing energy efficiency requirements for distribution transformers that were previously approved two years ago. This potential revision is raising concerns among utility companies and other stakeholders about possible delays in grid expansion. The currently planned rules, which are set to take effect in 2029, would adjust efficiency targets for transformers by including more amorphous electrical steel, alongside the commonly used grain-oriented electrical steel (GOES). The Department of Energy (DOE) aimed to strike a balance in 2024 by allowing both materials to be used, ensuring that manufacturing can meet the rising demand for grid equipment.…

The Federal Energy Regulatory Commission (FERC) has announced a new task force focused on “grid-enhancing technologies” (GETs). This initiative aims to explore how the agency can provide support, potentially through incentives, as stated by FERC Chairman Laura Swett during an oversight hearing in the U.S. Senate. Utilities have started incorporating GETs, which include tools like dynamic line ratings and advanced power flow controllers, with promising results on cost savings. However, while the Federal Power Act prohibits FERC from mandating these technologies, it allows the agency to encourage transmission owners to assess their economic impacts. FERC may consider including GETs in…

Joseph Kelliher, a former chair of the Federal Energy Regulatory Commission (FERC) and current head of Joseph Kelliher Consulting, recently discussed the recommendations from the Organization of PJM States (OPSI) regarding PJM Interconnection’s governance. OPSI suggests that both PJM and its transmission owners should make specific filings at the request of OPSI under the Federal Power Act. Their reasoning is that PJM’s governance is outdated, but Kelliher argues that the fundamental legal framework remains unchanged. Kelliher believes these recommendations do not align with the Federal Power Act. Historically, under Section 205, only public utilities like PJM can propose changes to…

Last month, a conference in Las Vegas for executives of major utility companies was interrupted by protesters. Their anger stemmed from soaring electricity costs, highlighting growing public frustration with utility companies. This unrest is pushing the industry to defend its profit margins, which are legally guaranteed. As concerns about affordability rise, several states are looking to lower the return on equity (ROE) for utilities through various regulatory and legislative strategies. While consumer advocates argue this is long overdue, utility companies warn that reducing ROE could hurt their credit ratings, potentially leading to higher costs for customers. Experts suggest that the…

Key Points The U.S. Department of Energy (DOE) has updated its rules for exporting electricity, but these changes clash with the DOE’s acknowledgment of “energy emergencies” in various parts of the country, as pointed out by Public Citizen. Public Citizen believes the DOE should rethink its new power export regulations introduced on June 22, particularly since these rules prevent public input and intervention in export authorization processes. If the DOE does not reconsider, Public Citizen may take legal action to challenge the new export rules, according to Tyson Slocum, the group’s energy program director. Insights In May 2025, the DOE…

The PJM Interconnection has a deadline until the end of September to implement governance and stakeholder reforms, as emphasized by Laura Swett, the agency’s chairman. If an agreement is not reached, the Federal Energy Regulatory Commission (FERC) will step in and impose its own regulations. Swett highlighted that PJM is currently facing a serious legitimacy crisis, noting that some transmission owners are even contemplating leaving the Regional Transmission Organization (RTO). “Market participants have lost faith in PJM’s ability to make sound decisions,” she remarked during a FERC technical conference. Newly appointed President and CEO, David Mills, who took over in…

The U.S. economy is shifting into a new phase driven by artificial intelligence (AI). Investment in data centers and computing infrastructure is on the rise as companies gear up for this technological transformation. However, electric utilities are facing a significant challenge: they must enhance the grid to support the swift growth of AI. It’s not just about money and electricity; skilled engineers, technicians, and project managers are also essential to build and maintain this infrastructure. Simply put, without the right workforce, the AI-driven economy cannot grow. By 2030, electricity demand from U.S. data centers is expected to reach 426 terawatt-hours…