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Hi there. Despite price-shock pushback, we’re not questioning the safety of egg executives or used car dealers. But that's where utility leaders find themselves in 2026, our own Matt Chester points out. Today, soaring energy bills mark the latest entry in a long list of household expenses that have come to define specific decades. But this chapter is different—and Matt’s got the major lessons for utility pros in this defining moment.
— Molly, Alex, and the Energy Central editorial team
Managing dozens of utility initiatives? See how Greencastle helped a major energy provider stand up a PMO overseeing 100+ projects and nearly $600M in investments.
Data centers could gobble up to 40% of the US electrical equipment market by 2030. (WoodMac)
As predicted by WoodMac in a new report, it would prove quite a jump from <2% in 2020. But the sector is set to need plenty of supplies—quickly. Data center capacity is forecast to leap from around 24 GW in 2026 to 110 GW in 2030 (nearly 70% of total load growth over that period).
In the hyperscale segment, for example, the needed number of padmount transformers could spike from around 1,500 units in 2025 to nearly 9,400 by 2030. Over that period, MV switchgear and automatic transfer switches are each forecast to swell from 786 to nearly 4,700 units.
Why it matters: Lead times for critical equipment already sit at 18-36 months. Now, manufacturers are returning to customers with year-old purchase orders and tacking on 20% price hikes just to hold delivery schedules—and hyperscalers are opening their wallets.
Could this trend hamper utility expansion plans?
PJM's first intake under its revamped interconnection process drew in 220 GW, led by natural gas and storage. (PJM)
The context: This reformed Cycle process replaces first-come, first-served with first-ready, first-served. It requires upfront financial commitments and proof of site control before projects can even enter the queue (to avoid the clogged pipeline PJM faced in 2022).
The breakdown: Natural gas dominated at 105.8 GW—nearly half the total submissions. Next up: storage (67 GW), nuclear (17.9 GW), and solar (14.8 GW). And the "other" bucket (506 MW) on PJM’s list includes biomass, coal, methane…and fusion, for the first time.
PJM expects demand to climb by >30 GW between 2024 and 2030, steered largely by data centers. Now, PJM is piloting HyperQ, Google Tapestry's AI tool, to help speed up all those reviews.
President Trump won’t lift the Strait of Hormuz blockade until Iran handles his concerns over its nuclear program. (Axios)
Trump has nixed Iran’s recent proposal, which would reopen the critical waterway while delaying talks on the country’s nuclear program (he shared his thoughts on the matter with an AI-generated meme). Now, he sees the blockade as his most powerful tool—on Tuesday, he met with oil & gas execs over the possibility of this play lasting months.
Behind the scenes, US Central Command has reportedly prepped a short, intense wave of strikes on Iran—likely targeting infrastructure—as a fallback to break the deadlock. Meanwhile, Iranian state media warned the blockade will soon prompt an “unprecedented” response from its armed forces.
Geothermal is riding a regulatory tailwind. 💨
BLM's newly approved categorical exclusion (CE) for geothermal exploration on public lands waives full NEPA review for projects impacting up to 10 acres. It builds on a prior CE that was limited to geophysical studies requiring zero new construction.
And last Thursday, the US House greenlit a bill that would exclude some geothermal projects on state and private land from national drilling permit requirements.
Load growth, renewables, and extreme weather are pushing grids to evolve. Join Schneider Electric on May 19 to learn how utilities are using AI to plan faster, reduce risk, and improve grid resilience today.
The PNW could swing from a 1.2-GW capacity surplus in 2025 to a nearly 9-GW shortfall by 2030. (E3)
These stats come from a new E3 study commissioned by regional utilities and generation owners. What’s driving the squeeze? Both supply and demand pressures, including expanding data centers, electrification, AC adoption, and ongoing coal retirements.
Wind, solar, and battery additions in the region’s queue would contribute 1.9 GW of effective capacity by 2030; upcoming firm resources add 1.1 GW more, leaving roughly 6 GW unaccounted for. Filling the gap on schedule would require annual resource addition rates 4-5x above historical levels.
The California Senate blocked a bill that would help San Francisco acquire PG&E's local assets and form a municipal utility. (Daily Energy Insider)
Opposition from a state Senate committee centered around cost shifts to remaining PG&E ratepayers and job security for PG&E employees.
The bigger picture: It’s the latest of many failed attempts to bring utilities under cities’ wings, including past efforts from SF. Under 10% of municipalization efforts launched in the past 25 years have resulted in still-operating utilities, a 2025 Brattle Group report found.
CAISO’s Western Energy Imbalance Market delivered $382M in participant benefits over Q1. (CAISO)
That marks over $8.6B in value since the market came online in 2014. This past quarter’s winners? NV Energy ($103.8M), PacifiCorp ($60.5M), and LADWP ($52.7M) topped the quarterly benefit rankings (out of the 22 balancing authorities currently participating).
These dollars come from cost savings, upped renewable integration, and increased operational efficiencies, among other factors.
Worth watching: EDAM, the day-ahead extension, launches tomorrow. Now, it’s positioned to capture value in the segment where most energy trading actually goes down.
Two of the country's biggest public power players announced interim leaders this week.
TVA's board tapped Mike Skaggs as interim CEO (following Don Moul’s interestingly timed retirement). Meanwhile, BPA's Chief Administrative Officer Robin Furrer was appointed acting administrator as the DOE searches for a permanent pick.
The transitions land as both agencies face heavy strategic lifts: TVA's nuclear buildout and BPA's role anchoring the PNW as it faces a looming multi-GW resource adequacy gap.
Pressures like DER growth and two-way flows are pushing grids to their limits. Join the conversation to hear how Semtech uses edge intelligence, automation, and security to modernize faster—without costly system overhauls.
🧩 Gas turbines are a critical piece of grid stability and profitability. To ensure these crucial assets are up to spec and avoid operational snags, it’s key to run periodic major inspections. Dive into the details with our partners at MD&A, who give power pros the confidence that comes with long-term reliability.
Smarter meters are reshaping grid operations. Tune in on June 9 to find out how Sense turns real-time data into faster fixes, sharper decisions, and stronger customer programs across the grid.
Thanks for reading. Ciao for now!