WHAT’S HAPPENING TODAY: Good afternoon and happy Tuesday, readers! Electricity prices climbed at more than double the rate of inflation last month, continuing the trend of outpacing inflation over the past two and a half years. We take a closer look at the higher electricity prices. 

Meanwhile, experts are predicting that oil prices will drop below $60 by the end of the year. The drop in cost could hinder the Trump administration’s goal to “drill, baby drill.”

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Welcome to Daily on Energy, written by Washington Examiner energy and environment writers Callie Patteson (@CalliePatteson) and Maydeen Merino (@MaydeenMerino). Email cpatteson@washingtonexaminer dot com or mmerino@washingtonexaminer dot com for tips, suggestions, calendar items, and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email, and we’ll add you to our list.

ELECTRICITY PRICE GAINS CONTINUE TO OUTPACE BROADER INFLATION: The price of electricity rose by more than double the rate of inflation in July. Electricity price gains have outpaced inflation for more than two and a half years. 

The details: The Bureau of Labor Statistics released its latest Consumer Price Index this morning, with inflation holding at 2.7% for the year ending in July. While the report suggests price pressures from the Trump administration’s tariffs were not as strong as previously thought, not all industries were spared. 

Electricity prices rose by 5.5% for the year ending in July, with prices dropping by 0.1% on a month-to-month basis. Energy services overall, including utility gas, jumped by 7.2% for the year but did drop by 0.3% compared to the month before. 

Data compiled by the Electricity Transmission Competition Coalition shows that electricity price hikes have continuously outpaced the rate of inflation since late 2021 and early 2022. The energy group insists that the recent rise in prices is not a short-term issue fueled by the tariffs, but a longer-term trend caused by regulatory failures. 

Coalition chair Paul Cicio has repeatedly accused the Federal Energy Regulatory Commission of contributing to higher prices by failing to ensure new transmission projects are competitively bid. Cicio said Tuesday that competitively bid projects can ultimately save consumers up to 40%, but only 5% of transmission projects in the U.S. are considered competitive. 

“Across America, families, farmers, and business owners are facing soaring utility bills creating a new cost of living crisis,” Cicio said, adding, “This is a perfect example of a regulatory failure impacting consumers.”

Gas still down: While electricity and utility gas prices are up, gasoline and fuel oil prices were still on the decline last month. For the year ending in July, the CPI report found that gasoline prices dropped by 9.5%. Similarly, fuel oil prices dropped by 2.9%. On a month-to-month basis, gasoline prices fell by 2.2%, but fuel oil prices increased by 1.8%. 

OIL PRICES TO DROP BELOW $60 BY END OF THE YEAR: The Energy Information Administration now expects oil prices to dip below $60 per barrel by the end of the year, putting “Drill, Baby, Drill” goals further at risk. 

The details: Earlier this afternoon, EIA released its August Short-Term Energy Outlook, which the agency forecast a “significant decline” in oil prices through 2025 and 2026. The EIA pointed to global supply growth outpacing demand as one of the primary drivers behind the dropping prices. 

EIA is specifically expecting the price of international benchmark Brent crude to around $58 per barrel in the fourth quarter of this year. Prices are then expected to drop even further to nearly $50 through 2026. 

While this dip is expected to result in lower prices at the gas pump, EIA warned that it will also depress plans to increase production. The agency said that by next year, most domestic producers will pull back on new and current drilling operations. 

Read more from Callie here. 

Something related: The EIA report comes just days after OPEC+ announced it would again be increasing its planned production hike in September, pumping an additional 547,000 barrels into the market. While fears have grown that higher supply will lead to a glut, the oil-producing bloc has given no indication that it will walk back the hike. In fact, OPEC+ has said it actually believes demand will substantially rise next year. 

In its monthly oil market report also released today, OPEC+ said it expects global crude demand to increase by 1.38 million barrels per day in 2026, up from its previous forecast of 1.28 million. Its demand growth estimate for 2025 has remained unchanged at 1.29 million barrels per day. 

INTERIOR LAUNCHES PROBE INTO WIND-TURBINE RELATED BIRD DEATHS: The Interior Department’s Fish and Wildlife Service has begun to investigate the risks wind turbines pose to birds like eagles, in the Trump administration’s latest effort to suppress the industry. 

The details: FWS is reportedly invoking the 1940 Bald and Golden Eagle Protection Act, requesting information from wind developers about eagle deaths related to their projects, according to E&E News. The letters, sent on Friday, ask developers for a laundry list of records including fatality records, mitigation and management plans, project permits, and permit applications. 

Legal analysts have warned that this information might be used by the administration to issue restrictive rules for the wind industry, imposing stricter protections for birds or shutting down projects entirely, according to the outlet. 

Under current regulations, companies are not permitted to “take” an eagle, meaning they are prohibited from pursuing, wounding or killing the bird. However, companies are permitted to obtain an “incidental take” permit, which allows for unintentional deaths in some cases. These permits were first introduced in 2009. 

What the administration is saying: Typically, such a request for information would not raise concerns among project developers, however it follows weeks of orders issued by the administration solely focused on stymieing on and offshore wind development. 

The Interior Department told E&E News that the agency is currently “updating outdated regulations to ensure our regulatory framework is modern and legally sound, does not provide preferential treatment to any entity, and effectively balances environmental protections with responsible energy development.” The agency added that wind projects and other activities that impact eagles are subject to “appropriate oversight” under the law. 

WHAT IS NEPA? Permitting reform is expected to be top of mind for the House and Senate when they return to Washington in September, as lawmakers face pressure from project developers to pass meaningful legislation by the end of the year or early next. 

The National Environmental Policy Act has remained central to this broader permitting debate with congressmen like Arkansas Republican Rep. Bruce Westerman focused on tweaking the 55-year-old law. With that in mind, Callie pulled together an explainer breaking down the history of the environmental law and how it has become so ingrained in permitting discussions. 

The breakdown also takes a look at ways to reform the bedrock law and why some legal experts say zeroing in on reducing litigation risk might not be the best strategy.

While Republicans have led the charge on permitting reform in recent years, Democrats are also seeking to quicken the permitting process to accelerate the build out of clean energy projects. For example, Democratic Rep. Scott Peters of California co-sponsored a bill last month focused on modernizing the entire permitting process, including NEPA reviews. 

As further discussions loom, if you want to learn more about why this bedrock environmental law has become so ingrained in the permitting debate, check out Callie’s breakdown here. 

SIERRA CLUB FIRES EXECUTIVE DIRECTOR: At a time when the Sierra Club is working to counter the Trump administration’s efforts to roll back climate policies, it has fired its executive director, Ben Jealous. 

The Sierra Club’s board voted yesterday to terminate Jealous’s employment due to alleged misconduct. 

A spokesperson for the group told Politico in an email that its “values all of its employees, members, and volunteers, not just those holding influence and power.” The group added they will “continue to look into concerns raised regarding misconduct irrespective of who they are raised against in furtherance of our policies, the law, and our mission.” 

The group’s rank-and-file had significant concerns with Jealous’ leadership for the past two years. He was then placed on leave in July. 

Jealous said in a statement to the New York Times that the termination is “disheartening, unfortunate, but perhaps not surprising that the board has chosen an adversarial course that the facts so clearly cannot support.” 

“I have begun the process under my contract to fight this decision. I am confident that we will prevail,” he added. 

For several years, the climate group has been experiencing budget cuts, layoffs, and complaints about unfair labor practices. 

Read more by Maydeen here. 

RACE FOR NUKES BEGINS: The Department of Energy has officially kicked off its Nuclear Reactor Pilot Program to get three test reactors operational by the Fourth of July next year, with 11 projects racing to be the first completed. 

The details: DOE announced this morning its plans to work with 11 advanced reactor projects over the 10 months in order to have three small modular reactors constructed, operational, and at critical status next year. This timeline was first announced by Secretary Chris Wright before Congress in June, as part of the administration’s efforts to bolster the nuclear energy industry. 

At the time, Wright said the reactors will be located inside the DOE’s containment facility at the Idaho National Laboratory. On Tuesday, the agency said the Reactor Pilot Program will help expedite testing of designs to be authorized at sites outside of the national labs. 

Ten companies have been selected to participate in the program: 

• Aalo Atomics Inc. 
• Antares Nuclear Inc. 
• Atomic Alchemy Inc. 
• Deep Fission Inc. 
• Last Energy Inc. 
• Oklo Inc. 
• Natura Resources LLC
• Radian Industries Inc. 
• Terrestrial Energy Inc. 
• Valar Atomics Inc. 

FORD ANNOUNCES NEW AFFORDABLE EV-TRUCK: In an effort to compete with China, Ford will begin manufacturing an electric truck that will start at $30,000. 

Ford announced yesterday at the Louisville Assembly Plant in Kentucky that it will revamp the facility to manufacture an EV mid-size pickup truck starting at $30,000. Ford will invest $5 billion to overhaul the plant and build a new battery plant in Michigan. The company said the price tag will help motivate consumers to purchase an EV. 

“It is a radically better proposition for some customers, who charge at home, don’t go long distances, less than 300 miles,” CEO Jim Farley told reporters yesterday. 

American car manufacturers have been behind the curve when it comes to competing with Chinese EV manufacturers. Chinese car manufacturers offer lower costs and more advanced electric vehicle options. Ford’s announcement also comes at a time when the Trump administration has actively taken steps to reduce EV adoption in the U.S. 

WILDFIRES AND HEATWAVES HITTING EUROPE: Record-breaking heat and wildfires are becoming the new reality for the millions living in Europe. 

Red heat alerts have been issued in parts of Italy, France, Spain, Portugal, and the Balkans, BBC reports. In Spain, weather services are predicting temperatures to reach 112 degrees Fahrenheit in some parts of the country. Spain and France are expected to be the hardest-hit by the heatwave. 

Amid extremely hot weather, wildfires have sparked throughout the continent. In Spain, a wildfire is burning in the region of Madrid, which has forced many to evacuate. There are also fires in the northwestern region of the country. 

Spanish Prime Minister Pedro Sanchez posted on X: “All the Government’s resources to fight the fires. The night will be complicated in many areas of Spain.” 

“Great caution and let us follow the authorities’ recommendations. All my support to the people in the affected areas. And my best wishes for a speedy recovery to the two firefighters injured while fighting the fire in Galicia,” he wrote. 

BBC reports that there are three large wildfires in Portugal as well. There are also fires in Greece and Albania. 

RUNDOWN

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