Latest news with #PJM
Politico
2 hours ago
- Business
- Politico
Tax credit whiplash
Good morning and welcome to the weekly Monday edition of the New York & New Jersey Energy newsletter. We'll take a look at the week ahead and look back on what you may have missed last week. TAX CREDIT WHIPLASH — POLITICO's Marie J. French and Ry Rivard: The accelerated phaseout of federal tax credits for clean energy has increased uncertainty for state efforts to bolster renewables. States are delaying procurements of new renewables, including offshore wind and solar, as they evaluate the energy impacts of the One Big Beautiful Bill Act. Energy experts and policymakers expect consumer costs to be higher due to policy changes in the GOP megabill. 'Those costs will certainly increase, not just from short term supply shocks and the loss of federal tax credits but also from the uncertainty,' said Julia Hoos, an energy analyst with Aurora Energy Research. Why it matters: New York, New Jersey and other Northeast states have ambitious renewable energy goals. Democratic leaders were already signaling delays in meeting them after rising costs led to canceled contracts before President Donald Trump's election, but the looming end of federal support elevates the uncertainty and potential for missed milestones. 'These goals were based on, predicated on, offshore wind and solar really emerging as primary energy sources,' Gov. Kathy Hochul told reporters on July 11. 'But I have to deal with the reality that with a president that's hostile to those interests — and has told me directly that — how do we pretend that the goals will be met when all the incentives to invest in those industries has dissipated?' PJM TO HEAR FROM GOVERNORS — POLITICO's Ry Rivard: The embattled operator of the nation's largest electric grid agreed to hear from concerned governors' offices next week following a bipartisan letter from state leaders questioning whether it has its act together. In recent days, 10 governors, including three Republicans, have questioned the direction taken by PJM Interconnection LLC, which runs the grid and energy market for 13 states and Washington, D.C. PJM board Chair David Mills said Friday the grid operator would make time at the July 23 PJM Members Committee meeting to hear from the governors' representatives, who are expected to urge the grid operator to fill two seats on its nine-seat board with people handpicked by the states. On Wednesday, the governors of Delaware, Illinois, Kentucky, Maryland, Michigan, New Jersey, Pennsylvania, Tennessee and Virginia told PJM it is facing an 'unprecedented crisis of confidence.' On Thursday, Ohio Gov. Mike DeWine, a Republican, sent PJM a separate letter saying he supported his fellow governors' position. While blue states have long criticized PJM, the bipartisan criticism is perhaps the most serious political threat to PJM in its decades of existence. In a letter to governors, Mills — a former energy industry executive and consultant — defended his organization's record and said PJM is keeping the lights on 'through some of the most challenging circumstances that any grid operator, anywhere, has faced.' HAPPY MONDAY MORNING: Let us know if you have tips, story ideas or life advice. We're always here at mfrench@ and rrivard@ And if you like this letter, please tell a friend and/or loved one to sign up. Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories. Here's what we're watching this week: MONDAY — The New Jersey Department of Environmental Protection is expected to publish substantially amended coastal building rules i n the New Jersey Register. TUESDAY — The Department of Public Service holds public statement hearings on the Propel NY transmission project on Long Island, 1 and 6 p.m., Knights of Columbus, 81 Sea Cliff Ave., Glen Cove. — The Department of Public Service holds public statement hearings on the Con Edison rate hike proposal, 6 p.m., JCC of Staten Island. — The Department of Environmental Conservation holds a hearing on the draft cryptocurrency environmental impact report, 2 p.m. WEDNESDAY — The New York State Energy Planning Board meets to vote on a draft energy plan, 1 p.m., Empire State Plaza, Meeting Room 6, Albany. — The Department of Public Service holds public statement hearings on the Propel NY transmission project on Long Island, 1 and 6 p.m., Nassau County Legislature. — The PJM Members Committee is expected to hear complaints from governors' representatives, 3 p.m. — The Department of Environmental Conservation holds a hearing on the draft cryptocurrency environmental impact report, 4 p.m. Around New York — 'This is a project of super-importance to the Trump administration, and I was honored to be asked to do it,' Andy Byford told City & State. — explores whether blocking gas-fired power plants was a mistake. — OPINION: NYSERDA President and CEO Doreen Harris touts programs to help New Yorkers save on energy bills, plus a nascent idea for a new nuclear plant upstate. Around New Jersey — NJ Transit's new budget 'calls for $980 million in fare revenue, but NJ Transit has failed to make its fare revenue goals for the past nine years,' Larry Higgs reports. What you may have missed NETFLIX EXEMPTION — POLITICO's Ry Rivard: Netflix is getting a major exemption from New Jersey's new coastal flood rules after months of lobbying over permitting issues at the sprawling former Army base it is working to redevelop. The carve-out will allow one of Democratic Gov. Phil Murphy's pet projects — a $1 billion film and television studio — to avoid complying with climate change regulations his administration has been working on since before the pandemic. Changes to the draft rules show the administration plans to exempt film studios, like Netflix, that have partnerships with the state's Economic Development Authority. Netflix is planning to build 12 soundstages at Fort Monmouth, a 292-acre former Army installation in Eatontown and Oceanport, New Jersey. State Sen. Declan O'Scanlon, a Republican who represents the area, said he's 'thrilled' Netflix got the carve-out but said every coastal development project should get the same level of 'deliberation and fair consideration.' The governor called changes to the flood rule a compromise. 'This is a classic situation where you're trying to get the right balance,' Murphy told reporters Tuesday in Newark. In lobbying disclosures from this year and last year, Netflix reported lobbying the DEP 'regarding environmental permitting issues related to the development of the former United States Army Base named Fort Monmouth.' The company also reported lobbying Eric Brophy, the governor's deputy chief of staff for economic development, about 'DEP flood report rules.' OFFSHORE WIND TRANSMISSION TERMINATED — POLITICO's Marie J. French: President Donald Trump's quest to stop 'windmills' in the ocean has led New York to abandon a major transmission project intended to support offshore wind. The decision to cancel the proposed investment is an acknowledgment that New York will not meet its 2035 offshore wind target given Trump's indefinite pause on permitting for the technology. Offshore wind is fundamental to the state's efforts to reduce greenhouse gas emissions. Public Service Commission Chair Rory Christian criticized federal attacks on the industry and said the commission's decision was necessary to protect ratepayers. The commission canceled the process to select a transmission plan during its regular monthly meeting Thursday. — On the 2035 target: 'Staff does not expect any additional generation to be developed in the New York Bight until federal policy changes, and even if the federal government resumes its support of the industry in a few years, projects will likely not be operational by 2035,' said Liz Grisaru, a senior adviser for policy at the department, during the meeting. After the meeting, DPS spokesperson Jim Denn said 'while the goals will be difficult to achieve by 2035, it is possible more offshore wind projects could come online by then depending on whether there are any shifts in federal policy.' — Reactions: The New York League of Conservation Voters' Julie Tighe said the group is 'deeply disappointed' by the decision. 'While the federal government continues to undermine progress on clean energy, New York should be doubling down on our commitment to become energy independent, not stalling it,' she said in a statement. 'These lines take many years to plan, permit, and build — by kicking the can now, we're risking falling behind in our clean energy transition and driving up costs in the future.' Natural Resources Defense Council's Chris Casey also found the decision 'deeply disappointing.' 'Rather than stepping back, the state should be continuing low-cost, high-value work — such as completing the grid operator's cost benefit analysis, selecting the most effective project, and advancing state-level approvals — to position New York to move quickly once federal barriers ease,' he said in a statement. The Alliance for Clean Energy New York and the New York Offshore Wind Alliance, which pushed for work to continue on the transmission project, issued a more milquetoast comment: 'Offshore wind projects can take more than a decade to develop, spanning far beyond state and federal election cycles. We encourage New York State to continue developing infrastructure in the near-term that will enable new generation to come online, addressing reliability and affordability for New Yorkers.' ENERGY ASSISTANCE EXPANDED — POLITICO's Marie J. French: More utility customers in New York will receive bill discounts under an expanded affordability program approved Thursday. The Public Service Commission voted to expand eligibility for the state's 'energy affordability program' to moderate-income residents. The move is expected to provide financial assistance to an additional 1.6 million households. 'With this expanded policy, we expand our reach to more households — households who had previously been excluded from this vital support because they didn't meet legacy criteria — even though they were still struggling to pay their bills,' said Public Service Commission Chair Rory Christian. 'More New Yorkers will be able to afford to keep the lights on.' Utility costs have been raising affordability concerns, with Gov. Kathy Hochul slamming proposed rate hikes and customer advocates pointing to the high number of people unable to pay their bills. The expanded program was required by the state budget passed in 2023 as lawmakers sought to address those concerns. — Also at the PSC: The commission took steps to hold utilities accountable for delays and problems with community solar credits and billing. New performance metrics could penalize utilities, although the commission only adopted two of six proposed measures. That was partly due to a recognition that complaints about consolidated billing have declined in recent years and that any costs to improve utility billing systems would be passed on to ratepayers. 'I think these provisions are going to encourage the right behavior from utilities and also, compensate customers if utility behavior is not aligned with our expectations,' Christian said. About 224,000 customers across the state are enrolled in community distributed generation programs, according to Department of Public Service staff. The commission also authorized the utilities to increase the fee utilities collect from community solar projects from 1 percent to 1.5 percent to cover their costs to comply with the order .… The commission also approved a Rochester transmission project to improve reliability … Central Hudson will have to start demand response programs and non-pipeline alternatives under a gas planning order. NEXT GOVERNOR COULD EASILY REMAKE BPU — POLITICO's Ry Rivard: New Jersey's next governor could quickly remake state energy policy after taking office by filling three seats on the powerful five-seat Board of Public Utilities. The board has been down a member for more than a year and a second vacancy opened Wednesday following the abrupt departure of Republican member Marian Abdou, who said she was leaving to tend to her family. A third spot could open next March, when Democratic commissioner Zenon Christodoulou's term expires. That means unless Gov. Phil Murphy, a term-limited Democrat, can get the Senate to quickly approve a pair of new members, his successor will be able to totally reshape the board during their first months in office. A Murphy spokesperson said the governor expects to fill the vacancies during the lame-duck legislative session after the election in collaboration with the Senate. UTILITY CALL CENTER LAW UNCERTAIN — POLITICO's Marie J. French: The fate of a union-backed measure to keep and expand utility customer service jobs in New York is uncertain after a federal court ruling. GREENWAY — Gov. Phil Murphy broke ground on a new rails-to-trails greenway to connect Newark and Jersey City. In the bed of an old Norfolk Southern line, the trail for bikes and pedestrians will eventually extend for nine miles through parts of Essex and Hudson counties. The first mile, which is in Newark and expected to be completed by the end of 2026, will cost about $65 million. It will be the first new state park in decades. Brendan Gill, an Essex County commissioner who championed the project, said it took 15,000 letters to Murphy and other officials to get going and had been under discussion for well over a decade. 'There was excuse after excuse after excuse as to why this project was never going to happen,' he said. Sen. Teresa Ruiz, who represents Newark, described the toxins and shabbiness of the area when it was an abandoned rail line and said, 'imagine the good of what this open space can do.' — Ry Rivard
Fast Company
4 days ago
- Business
- Fast Company
AI data centers require massive amounts of power—making electricity more expensive for everyone around them
It's a staggering statistic: Around 70% of the world's internet traffic flows through Virginia. The state's data centers, some of which feature hallways nearly a mile long with thousands of thrumming servers on either side, make possible the billions of retail transactions, videos streams, and artificial intelligence queries that happen around the world each day. But as more data centers are built to accommodate AI and other data-intensive processes, energy demand is expected to skyrocket. A single hyperscale data center can use the same amount of energy as a large city, and the stress this is placing on local power grids is expected to drive up energy costs for residents in Virginia—and around the country. 'What we are projecting, with the contracts that are already in place, is that the energy demand in Virginia will almost double just because of AI and data centers,' says João Ferreira, a regional economist who worked on a recent report about data centers by the Virginia Joint Legislative Audit and Review Commission. 'That, of course, will impact all the electricity ratepayers, because we will end up paying more for electricity.' Virginia is an enormous energy importer This exploding demand is especially burdensome for states serviced by PJM, a regional transmission organization serving Virginia, 12 other states, and Washington, D.C. The organization, the largest of its kind in America, coordinates the movement of power from company to company and state to state. Virginia imports more energy than any other state—50.1 million megawatt hours, or 36% of its total energy supply, as of 2023—so the expansion of the state's energy needs are expected to reverberate throughout the PJM region. A recent report by the Institute for Energy Economics and Financial Analysis finds that ratepayers in other states will end up paying for the infrastructure that transports energy to data centers. West Virginia, which the report uses as a case study, could pay an estimated $440 million for two new energy transmission lines, despite having no data center industry of its own. These transmission lines—called the Mid-Atlantic Reliability Link and Valley Link—propose to bring energy from power plants in Pennsylvania to Virginia and from those in West Virginia to Maryland, respectively. These lines are still proposals, rather than ongoing construction projects. Still, they raise concerns because all ratepayers in the region will pay for the lines, passing hundreds of millions of dollars onto taxpayers in each state. When utility companies build transmission lines and other infrastructure, the cost is spread across all ratepayers in the region. The assumption is that these lines provide benefits, like reliability of electricity, to everyone, so everyone should pay for them. But the large data centers powering AI programs upend this logic, says Cathy Kunkel, author of the recent report and energy consultant at IEEFA. 'It's just so enormous and we're really talking about building infrastructure that would not be needed if not for the data centers,' Kunkel adds. A new model of electricity demand While data centers and other internet infrastructure have been powered by sources across state boundaries for decades, concerns about residential ratepayers' burdens are more intense than ever due to the mismatch between the modern demands of the energy sector and the legal framework governing it—much of which was developed decades ago, when our energy needs were quite different. 'Everybody gets electricity delivered from some company that has a monopoly on delivering electricity within that geographic area,' says Ari Peskoe, Director of the Electricity Law Initiative at Harvard Law School. 'Even though their prices are heavily regulated and their profit margins are regulated as well, they still want to grow their business.' The way that these businesses grow in this regulatory environment is by building out their physical infrastructure, which guarantees them a certain rate of return. The larger the company and the more infrastructure they manage, the more money is allowed to flow into the business. Hidden subsidies With this traditional model of regulated growth, data centers are a windfall. Their large size and energy needs means substantial infrastructure must be added to the grid, and energy companies do their best to attract data centers to the regions they serve. Peskoe has found that confidential deals often take place between data centers and utility companies, providing rates that are not as transparent as typical rate-setting processes. 'Everybody, obviously, is trying to reduce their own rate that they pay, but that, in effect, causes somebody else to pay more, because you have this billion-dollar pie that everything has to add up to,' Peskoe says. These hidden subsidies raise issues for legislators and residents, alike. States are struggling to meet environmental goals as transitions to renewable energy sources are put on hold and fossil fuel power plants reopen to help meet rising energy demand. Meanwhile, residents are already starting to feel the rising costs: 78% of Americans are stressed about their high energy bills, according to a CNET survey last year. Reacting to the Virginia Joint Legislative Audit and Review Commission report last year, which touched on many of these issues, the tech-company backed Data Center Coalition (DCC) issued a statement highlighting the positive findings of the report. Namely that the industry 'supports 74,000 jobs, $5.5 billion in labor income, and $9.1 billion in GDP in Virginia' each year. 'We look forward to continuing to engage with policymakers about the JLARC findings and opportunities to advance positive economic, environmental, and social outcomes while building and supporting Virginia's 21st-century economy,' DCC President Josh Levi said in the statement. Searching for a fair system Community advocates, policy analysts, and economists advocate for reforming the way utilities serve the data center industry. Some states like Georgia and Ohio are starting to consider ratepayer protections—such as creating new rates that separate industries using large amounts of energy from industries and residents that do not—as their data center industries start to grow. Other states, like Utah and Maryland, are passing bills that provide transparent rate structures for data centers, aiming to eliminate the 'hidden subsidies.' In other cases, it's the utility companies themselves pushing back against fronting the cost of data center growth. Some companies are starting to require long-term contracts with guaranteed minimum payments from data centers, Kunkel says, ensuring they remain accountable for the long-term costs of infrastructure. As costs continue to rise, legislators are pushing for regulatory bodies to explore other solutions. In February, Sen. Tim Kaine (D-VA) and three other senators wrote a letter urging the Federal Energy Regulatory Commission to make guidelines insulating consumers against rising costs and other ill effects of increased energy demand. Later that month, FERC ordered a review of the issues AI data centers can cause other consumers, ultimately planning to evaluate the need for updated regulations. (Current FERC Chairman Mark Christie was nominated during President Trump's first term and has been in office since 2021. The agency has largely escaped the cuts and firings seen at other agencies within the Department of Energy.) Can Virginia teach us how to regulate data centers? Still, policy options for protecting consumers remain largely unexplored both at the local and national levels. FERC has not yet issued a comprehensive set of regulations for data centers, and this year—for the second year in a row—most of the laws to explicitly regulate the burgeoning industry and protect consumers from the price shocks associated with soaring power demand did not make it through Virginia's General Assembly. 'Too often, residents are left out of conversations about how data centers impact their daily lives—whether it's increased noise, strain on infrastructure, or rising electric bills,' said Del. Josh Thomas (D-Gainesville, Va.), in a Jan. 14 press briefing about proposed data center reforms within Virginia. Both houses of the Virginia state legislature passed bills that would have required localities to conduct a site assessment to gauge the impact of energy intensive facilities—including data centers—on noise, water, forests and cultural assets like parks and historical sites. During the legislative session, a representative from the Data Center Coalition told a House subcommittee that some of the proposed regulation—requiring a power-grid impact assessment before approving data center projects, for example—would signal to major businesses 'that their time and their money may be best invested elsewhere,' The Washington Post reported at the time. The Data Center Coalition represents 36 major companies in the data sector, including Amazon Web Services, Google, Microsoft and Meta. The bills were vetoed by the governor. One that was signed into law directs the State Corporation Commission, a state agency in charge of determining utility rates, to look into whether customers—like data centers—are being charged correctly for their energy usage. (The Coalition did not respond to an email asking their views on the passed measures.) With Virginia still at the forefront of the data center industry, it may be the best place to learn how to regulate data centers and protect impacted communities. But so far, community activists do not see Virginia as a positive role model. 'My perspective is that it's a cautionary tale,' says Julie Bolthouse, director of land use at Piedmont Environmental Council, a Virginia-based environmental advocacy group. 'Honestly, I've been very disheartened and jaded by the lack of action from Virginia compared to other states, especially around ratepayer protection.
The Guardian
4 days ago
- Business
- The Guardian
Google inks $3bn US hydropower deal as it expands energy-hungry datacenters
Google has agreed to secure as much as 3GW of US hydropower in the world's largest corporate clean power pact for hydroelectricity, the company said on Tuesday, as big tech pursues the expansion of energy-hungry datacenters. The deal between Google and Brookfield Asset Management includes initial 20-year power purchase agreements, totaling $3bn, for electricity generated from two hydropower facilities in Pennsylvania. The tech giant will also invest $25bn in datacenters across Pennsylvania and neighboring states over the next two years, Semafor reported on Tuesday. The technology industry is intensifying the hunt for huge amounts of clean electricity to power datacenters needed for artificial intelligence and cloud computing, which has driven US power consumption to record highs after nearly two decades of stagnation. Ruth Porat, president and chief investment officer at Google parent company Alphabet, discussed the news at an AI summit in Pittsburgh. Donald Trump announced $70bn in AI and energy investments there. 'This collaboration with Brookfield is a significant step forward, ensuring clean energy supply in the PJM region where we operate,' Amanda Peterson Corio, Google's head of datacenter energy, said in a statement. Over roughly the last year, Google has struck several first-of-a-kind power purchase agreements, including for carbon-free geothermal energy and advanced nuclear. The company is also working with the country's largest electricity grid operator, PJM Interconnection, to use AI to speed up the process of hooking up new power supplies to the grid. Sign up to TechScape A weekly dive in to how technology is shaping our lives after newsletter promotion Google said it has signed an initial framework agreement with Brookfield, owner of Brookfield Renewable Partners, which develops and operates renewable energy plants. Its two hydropower sites in Pennsylvania will be upgraded and relicensed as part of the arrangement, the companies said. Google said it plans to expand the deal eventually beyond those sites to other parts of the mid-Atlantic and midwest.
CBS News
5 days ago
- Business
- CBS News
Controversial piedmont powerline project requests access to survey more Maryland properties
The developers behind the controversial Piedmont powerline project requested access to additional properties in Maryland Tuesday after they were allowed to survey nearly 90 locations in June. The Piedmont Reliability Project would build 70 miles of 500,000-volt overhead transmission lines through three Maryland counties: Baltimore, Carroll and Frederick. According to New Jersey-based developer PSEG Renewable Transmission, the project would help address power grid congestion and a potential energy deficit in Maryland. In June, PSEG was given permission to survey 91 properties that could be impacted by the project. The approval came despite opposition from property owners who raised concerns about environmental impacts and changes to their land. On Tuesday, PSEG filed an additional request to access nearly 200 Maryland properties to perform "non-invasive field surveys," according to a lawsuit. In their lawsuit, PSEG cited Maryland's need for more transmission lines as the reason for its push to survey properties. PJM Interconnection, the grid operator for several northeast states, expects that the regional transmission system could see blackouts and "voltage collapse conditions" unless the project is completed by June 2027, according to the lawsuit. PJM and PSEG entered into an agreement that allows the developer "to take reasonable efforts to ensure that it obtains all necessary authorizations and permits to construct and place the [transmission lines] in service by June 1, 2027," the lawsuit states. The company said it has to begin construction by the first quarter of 2026 in order to complete the project on time. The property surveys must be completed before construction can begin. Property owners appealed the initial motion that granted PSEG access to 91 locations in June. The powerline project has also faced opposition from community leaders, including Baltimore County Executive Kathy Klausmeier/ She indicated in February that she wanted to intervene in the application process. At the time, Klausmeier said she would "continue to work with state partners to share serious concerns about this project's impacts and work to protect our county's agricultural legacy and land preservation interests." Maryland Gov. Wes Moore also spoke out against the project in November 2024, saying he had "grave concerns" about the planning process and the lack of communication about the impacts of the project. He planned to meet with company leaders to discuss his concerns.
The Guardian
5 days ago
- Business
- The Guardian
Google inks $3bn US hydropower deal in largest clean energy agreement of its kind
Google has agreed to secure as much as 3GW of US hydropower in the world's largest corporate clean power pact for hydroelectricity, the company said on Tuesday, as Big Tech pursues the expansion of energy-hungry data centers. The deal between Google and Brookfield Asset Management includes initial 20-year power purchase agreements, totaling $3b, for electricity generated from two hydropower facilities in Pennsylvania. The tech giant will also invest $25bn in data centers across Pennsylvania and neighboring states over the next two years, Semafor reported on Tuesday. The technology industry is intensifying the hunt for massive amounts of clean electricity to power data centers needed for artificial intelligence and cloud computing, which has driven US power consumption to record highs after nearly two decades of stagnation. Ruth Porat, president and chief investment officer at Google parent company Alphabet, discussed the news at an AI summit in Pittsburgh. Donald Trump announced $70bn in AI and energy investments there. 'This collaboration with Brookfield is a significant step forward, ensuring clean energy supply in the PJM region where we operate,' Amanda Peterson Corio, Google's head of data center energy, said in a statement. Over roughly the last year, Google has struck several first-of-a-kind power purchase agreements, including for carbon-free geothermal energy and advanced nuclear. The company is also working with the country's largest electricity grid operator, PJM Interconnection, to use AI to speed up the process of hooking up new power supplies to the grid. Sign up to TechScape A weekly dive in to how technology is shaping our lives after newsletter promotion Google said it has signed an initial framework agreement with Brookfield, owner of Brookfield Renewable Partners, which develops and operates renewable energy plants. Its two hydropower sites in Pennsylvania will be upgraded and relicensed as part of the arrangement, the companies said. Google said it plans to expand the deal eventually beyond those sites to other parts of the mid-Atlantic and midwest.
