Good morning. Renewables are now the cheapest source of electricity in history—so why are utilities still planning like the economics haven't changed? Climate tech investor Ramez Naam told us what it’ll take to rewire utility incentives to reflect that reality. Tune in to the latest episode of Power Perspectives to learn more.
P.S. We’re gathering power industry leaders for meaningful, off-the-record conversations on affordability, AI, and the evolving demands on modern utilities. Register here to join us in Washington, D.C. on June 23.
— Molly, Carrie, and the Energy Central editorial team
Join us June 23 in Washington, D.C. as we bring together utility decision-makers for networking and meaningful conversations on the challenges shaping today's power sector.
North American utilities have a ‘deteriorating’ outlook, Fitch Ratings says. 😬
Risky business: This recent update marks a downgrade from the agency’s “neutral” outlook issued in December. Why the demotion? “Rising affordability concerns that are increasing political and regulatory risk for the sector,” Fitch wrote, noting that regulatory pushback to rate increases is piling up quicker (and more broadly) than previously expected.
Shifting back into neutral: For the power industry to return to “neutral,” the agency is looking for 1) signs that affordability concerns are abating and 2) proof that utilities can “recover rising investment needs without materially increasing regulatory lag or weakening credit profiles.”
Is the Iran war actually over?
The US and Iran appear to have reached an agreement to reopen the Strait of Hormuz—and end a conflict that left about a quarter of the world’s crude oil in limbo (and the US Strategic Oil Reserve at its lowest level since the 1980s).
The nations are set to sign the deal in Switzerland on Friday…but most US officials have no idea what the details look like. Still, this news sent oil prices tumbling more than $4 a barrel. "Ships of the World, start your engines. Let the oil flow!” President Trump wrote on Truth Social.
Hold your horses: It won’t be that simple. It could take two to three months for shipping to return to normal. And the tentative deal doesn’t clear up the tension over Iran’s nuclear program (the US and Iran will have 60 days to figure that out).
Data center developers are shelling out millions to accelerate the grid buildout.
And in Wyoming, Microsoft is on the hook for nearly $40M in construction costs for Cheyenne Light, Fuel & Power’s new 115-kV substation (and associated transmission lines), Halcyon reported. These will serve the tech giant’s nearby data center.
Can your substations withstand today's security threats? Register now to discover practical strategies for improving resilience, threat detection, and physical security across the grid.
The largest US wind farm will kick off commercial operations this month.
In New Mexico, Pattern Energy’s SunZia Wind Project is scheduled to put its 916 turbines to use in the coming weeks, the EIA announced. Its summer generating capacity (3.6 GW) is over 3x bigger than that of the country’s next two biggest wind farms.
This will make wind power 45% of NM’s capacity mix (but most of those electrons will head for AZ and Southern CA via the new 550-mile SunZia transmission line).
The planned $33.4B AES sale is catching heat from shareholders.
As announced in March, a consortium led by BlackRock’s Global Infrastructure Partners is set to acquire AES. Now, the company’s shareholders want to halt the deal while they “seek more details,” Reuters reported. But AES said it has offered all of the required information. Meanwhile, a law firm is investigating claims from investors that AES has violated securities laws.
Here’s how New York plans to bring 5GW of new nuclear online by 2050. 👀
NYSERDA and the state’s Department of Public Service have laid out the options to meet that lofty goal.
The costs: To fund this massive buildout, NY residents could pay between $15-$24B in subsidies over 25 years. Plus, private investors—and ratepayers—could cover any cost overruns (and with the industry’s track record, those will most likely pile up).
The designs: The paper lays out a few options, including five traditional large reactors or 20 SMRs. The authors noted that the Westinghouse AP1000—the only advanced reactor now operating in the US—could prove quicker (and less risky) to build. And speed is the name of the game: To benefit from federal tax credits, the state must start building by 2033.
⚡ ComEd has a $15B plan to revamp the grid. Hear how the utility is planning for concentrated load without overbuilding or shifting costs to other customers—tune in to our Power Perspectives interview with CEO Gil Quiniones.
Rising energy costs are reshaping grid operations. Tune in to hear how utilities and energy users can improve reliability, manage costs, and unlock more value from energy assets in real time.
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