WHAT’S HAPPENING TODAY: Good afternoon and happy Thursday, readers! With Thanksgiving just one week away, we at Daily on Energy are looking forward to eating some sweet potato casserole, fresh cranberry sauce, and turkey.
In today’s Daily on Energy, Callie and Maydeen cover the Federal Energy Regulatory Commission vote to update its controversial transmission planning rule, giving the states more flexibility. We also look at what a former Trump administration official has to say about reports stating that President-elect Donald Trump plans to restart progress on the Keystone XL pipeline.
The UN climate conference is expected to end tomorrow, but global leaders have yet to strike a deal on climate finance. However, international leaders at the meeting, such as the European Union and Canada, announced a coalition committing to new greenhouse gas emission targets by 2035 – without U.S. participation.
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.
FERC APPROVES UPDATED CONTROVERSIAL TRANSMISSION RULE: The Federal Energy Regulatory Commission has unanimously voted to approve Order No. 1920-A, updating its controversial transmission planning rule from earlier this year by giving more flexibility back to the states.
A reminder: In May, FERC issued Order No. 1920 following a 2-1 partisan vote. The rule was meant to help project where the grid and expected load growth will be headed in the coming years, in an attempt to also help meet any growing demand. Republican commissioner Mark Christie voted against the order and joined other GOP critics in claiming the rule as written would prioritize green policy rather than consumers, forcing some states to pay for green energy projects they didn’t ask for. You can read about the full details of the order from Callie here.
The details: During its monthly meeting on Thursday, FERC approved the revised, bipartisan order in a 4-0 vote, with Commissioner Lindsay See not participating. It comes months after the commission had received nearly 50 requests for rehearing and clarification over the original order issued.
While the original rule is largely intact, the revised order expands state regulators’ roles in cost allocation for transmission projects, and eases up on the benefits and factors previously required for identifying long-term transmission needs. Additionally, it extends the deadline for transmission providers to propose a date for when they will begin their long-term regional transmission planning cycle by one year.
Christie concurred, in part, with the new order, saying he was pleased with many of the changes made. “I’ve been insistent that state regulators have got to have the authority to protect their consumers from unfair or excessive transmission costs…I’m glad that we’ve really made some improvements here,” he said.
Despite the changes, the Republican indicated the commission is expecting additional pushback on the revised order, adding that he looks forward to hearing from the states in the coming weeks.
TRUMP TO REVIVE KEYSTONE PIPELINE, NOT A SURPRISE FORMER ADVISOR SAYS: President-elect Donald Trump is reportedly aiming to restart progress on the Keystone XL pipeline on his first day back in office, a move that comes as no surprise to former administration officials.
The details: Sources familiar with Trump’s plans told Politico on Wednesday that the president-elect was looking to revive the pipeline shut down by President Joe Biden.
While there has been no major push for construction of the pipeline to restart – and the pipeline’s developer effectively gave up the project – former Trump climate advisor George David Banks told Callie on Thursday that day-one support for Keystone XL should be expected.
“I think just from a political and legacy perspective, I don’t know how you don’t do it,” Banks said, adding that it would be “very noticeable” if it wasn’t a part of the first round of energy and environmental orders issued at the start of the next Trump administration.
New hurdles: Since leaving office, Trump has lambasted Biden’s decision to pull the permit for the 1,200 mile crude oil pipeline that had been highly criticized by climate activists. However, the Republican may have difficulty in seeing a smooth start to reviving the project given that developer TC Energy no longer owns the pipeline system, according to Politico. Additionally, any portions of the pipeline that had been installed underground in both the U.S. and Canada, have since been dug up. At the same time, both countries have still seen record output levels of oil. While the need for reviving the pipeline may no longer be there, such action would affirm Trump’s pro-oil agenda.
INDONESIA’S COAL PHASEOUT: In a major effort to reduce global greenhouse gas emissions, Indonesia has announced plans to shut down all of the country’s coal-fired power plants within the next 15 years.
The details: President Prabowo Subianto announced the move during the G-20 Summit in Brazil this week, saying the southeast Asian nation is aiming to also add over 75 gigawatts of renewable energy capacity in that same time frame.
Currently, Indonesia’s power mix is dominated by coal, which made up more than 221,000 gigawatt hours of the country’s energy capacity in 2023, according to data from Bloomberg. Combined with natural gas, it accounts for nearly 80% of Indonesia’s electricity.
While the country faces a steep hill to climb in expanding its renewable capacity, Subianto remained confident in his announcement. He pointed to the fact that Indonesia is situated along the Equator, increasing its opportunities for solar power energy thanks to plentiful sunlight. Through this green push, the president said, he is “very optimistic” Indonesia can achieve net-zero before 2050.
GRID OPERATOR PRESSURED TO REFORM RULES TO RELIEVE RATES: PJM Interconnection, the largest regional transmission organization monitoring a multistate grid in the United States, is facing calls from across its grid to reform its rules and relieve pressure on consumers.
Some background: During its July capacity auction, PJM sent shockwaves through the market when it announced that it would be increasing its costs from $28.92 per megawatt-day to $269.92 per megawatt-day starting next year. This is more than an 800% increase that is expected to trickle down to consumers’ monthly electricity bills.
The details: As a result, several states and advocacy groups have filed legal complaints and letters against PJM, according to a new report from Inside Climate News. The governors of Maryland, Pennsylvania, New Jersey, Illinois, and Delaware recently joined together in calling on PJM to adjust its capacity market rules and clear the path for increased transmission for thousands of clean energy projects that could pump more energy into the grid.
“In July, we saw the staggering results of PJM’s capacity auction for the 2025/2026 Delivery Year, with clearing prices almost 10 times higher than the previous auction,” the letter reportedly read. “The resulting $14.7 billion bill will be paid by our residents and our businesses and could deter future economic development.”
The states are reportedly claiming that current PJM rules favor fossil fuel companies and existing utilities, making it more difficult for clean energy projects to make a dent in the market. Specifically, the letter pointed to two Baltimore-area based power plants that were not included in the July capacity auction that could have provided around 2,000 more megawatts of electricity to the RTO’s grid. Both of the plants – one of which runs on coal and the other oil – reportedly operate under special PJM agreements that do not require the units to participate in auctions.
However, PJM has denied that its rules favor oil and gas companies, telling Inside Climate News, “PJM has been warning for some time that policy pressure on generators to retire before their replacement is in place could result in a supply crunch.”
What’s next: In October, PJM announced it would be delaying its December capacity auction by around six months. A PJM spokesperson told Inside Climate News that this delay will allow the RTO, stakeholders, and FERC to address any rule reforms that need to be made.
COP29 – NEW CLIMATE TARGETS SET, WITHOUT THE UNITED STATES: The European Union joined with eleven countries, including Canada and Mexico, to create a coalition committed to new greenhouse gas emission targets by 2035, without the U.S., Politico reports.
Politico reported last week that the U.S. had plans to participate in the coalition but decided not to join. It is unclear whether the U.S. dropped the proposal in light of the incoming Trump administration.
Senior U.S. climate adviser John Podesta told Politico via email that “We continue to work with countries to set ambitious climate targets with rapid emissions reductions that are required to secure a safer, cleaner planet for ourselves and our children.” He added that the U.S is working on its own 2035 targets.
The coalition agreed to slash greenhouse emissions by 2035 to limit global temperature warming to 1.5 degrees celsius as part of the 2015 Paris Agreement.
The coalition said “We encourage countries to set and/or accelerate their net zero greenhouse gas emissions goals. We call on others to join this effort.”
GLOBAL DATA CENTERS ARE INCREASING RELIANCE ON FOSSIL FUELS: Global data centers’ energy demand is being met by fossil fuels like natural gas and coal due to the lack of clean energy alternatives, Reuters reports.
Company executives, regulators and analysts told Reuters that countries like Poland and Germany could consider using coal to help meet data centers’ energy demands. Meanwhile, in the U.S., utilities are building new gas plants and delaying retiring power plants.
According to the Department of Energy, data centers consume “10 to 50 times the energy per floor space of a typical commercial office building.”
“Collectively, these spaces account for approximately 2% of the total U.S. electricity use, and as our country’s use of information technology grows, data center and server energy use is expected to grow too,” it added.
Big tech companies like Meta and Amazon have committed to reducing emissions and moving toward renewable energy sources.
“I think everyone agrees that we need more and more renewable energy to keep up with a growing demand,” Meta spokesman Jim Cullinan told Reuters. “I think it is up to the utilities to comment on how they will fill the supply.”
ICYMI – TEXAS REFINERY RELEASED DEADLY GAS: Last month, more than 13 tons of a deadly hydrogen sulfide gas was released at an oil refinery around 20 miles outside of Houston on the coast of the Gulf of Mexico.
The details: The U.S. Chemical Safety Board revealed on Wednesday that around 27,000 pounds of the toxic gas was released during an incident on Oct. 10. The incident led to the death of two contract workers and injuries of 13 others.
The deadly gas was released during a maintenance activity when two contract workers partially opened a flange connection on piping that contained the gas. The maintenance was not intended to be done on that piping, but another separate segment just five feet away from where the incident occurred. After the gas was released, hours-long shelter-in-place orders were issued for nearby cities Deer Park and Pasadena and part of the nearby Texas State Highway 225 was temporarily closed.
“Hydrogen sulfide is a highly toxic substance that can result in serious injury and death even at low concentrations,” CSB chairperson Steve Owens in a statement. “This dangerous incident resulted in the death of two workers and put others workers and the surrounding communities at very serious risk.”
Since the incident, multiple lawsuits have reportedly been filed against the current and former refinery owners, on behalf of the victims’ surviving family members, locals, and other workers who had been injured, according to Reuters.
About the facility: The refinery, located in Deer Park, Texas, is owned by Mexican state-owned oil and gas firm Pemex, and is one of the 20 largest refineries in the U.S. According to its website, the refinery has a capacity of 340,000 barrels a day.
RUNDOWN
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