October 22, 2025

Currents - Energy Industry Insights, V 9, Issue 10, 2025

James Bailey, Mark Heath, Sophia Hines, Steven Lee, Barry Naum, Jason Wandling, Derrick Price Williamson

Spilman Thomas & Battle, PLLC

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Volume 9, Issue 10

● Welcome

Welcome to our tenth issue of Currents 2025.

Thank you for reading!

The Solar for All Program and Subsequent Lawsuit Against EPA

By Sophia L. Hines

The tug of war for appropriations is not new. As reported by the Associated Press, the most recent battle is over clean energy funding for Americans. On April 22, 2024, former President Joe Biden announced $7 billion in federal grants for residential solar projects serving 900,000-plus households in low- and middle-income communities as the Solar for All program. The grants were awarded by the Environmental Protection Agency (EPA) with the expectation that the funds would eventually reduce emissions by the equivalent of 30 million metric tons of carbon dioxide and save households $350 million annually. These climate-change-related policies continue to be heavily politically charged.

Click here to read the entire article.

Citing the Need for ‘Significant Reform,’ Pennsylvania’s Governor Threatens to Pull the State Out of the Region’s Power Grid

“As the largest energy producer in the 13-state system, its exit would ripple through the region.”

Why this is important: As national and regional power demand and prices rise and the development of new generation capacity continues to stall, a number of PJM Interconnection LLC (PJM) participating states are starting to point the finger at PJM. For example, Pennsylvania Governor Josh Shapiro recently portended the possibility that Pennsylvania may exit the nation’s largest Regional Transmission Organization (RTO). This reflects months of increased engagement by PJM-participating states looking for internal governing reform of the RTO to address the myriad issues facing PJM, particularly the emergence of massively energy-intensive data centers and the confluence of these rising demands with participating states’ competing energy policy goals. Although the threat that Pennsylvania – PJM’s largest energy-producing state – may “go it alone” is a definite shot across PJM’s bow, it is unclear if such alternatives are feasible. That said, Pennsylvania is not alone in its intense focus on grid performance. As stated by Maryland Governor Wes Moore, “Thirteen governors have united with a single urgent message for our regional grid operator, and it underscores the seriousness of the crisis that we now face.” --- Barry A. Naum

Utilities Race to Meet Surging Data Center Demand With New Power Models

“The rapid rise of AI data centers is testing the limits of the power grid, driving utilities to boost capital spending, overhaul tariffs, and build new flexibility into their systems to keep pace with demand - while maintaining reliability and sustainability.”

Why this is important: This article illustrates how the rapid growth of data centers, due to AI and supercomputing demand, is reshaping the energy sector, utility pricing models, and infrastructure development. This has far-reaching implications not just for tech companies, but also for businesses across all sectors that rely on data services, invest in real estate, or depend on stable energy markets. Understanding these dynamics is crucial for informed decision-making in operations, finance, and long-term planning. --- James M. Bailey

Protecting West Virginians or Raising Their Power Bills?

“It would require utilities to run perhaps more expensive plants even when cheaper ones are available.”

Why this is important: The commentary addresses potential legislation in West Virginia that would legally mandate the operation of coal-fired power plants at least 69 percent of the time. The author takes issue with the value of such a mandate because it could result in coal-fired power plants being dispatched – producing power – even when there are cheaper alternatives available in the wholesale market for electricity. The result in such a circumstance is that ratepayers would pay more for electricity than they should. This can also occur, however, when coal plants fail to dispatch in favorable market conditions because those plants did not obtain an adequate amount of coal; in that scenario, ratepayers lose the value of having the coal-fired power plants available. Both scenarios are important because under the current regulatory model, ratepayers can be protected from the related costs if the Public Service Commission deems that the utility acted imprudently or unreasonably in operating (or not) its coal-fired power plants, but a legislative mandate could effectively eliminate this key regulatory protection for consumers. --- Derrick Price Williamson

Nuclear in My Backyard? More of America, and the Market, Seems OK with It

“The first small modular reactions in the United States could be operable by the end of the decade, but opinions vary on whether it is realistic to expect widespread deployment over the next decade.”

Why this is important: Covert Township, Michigan, may soon become the face of a nuclear revival. The long-shuttered Palisades Nuclear Plant is being restarted with a $1 billion federal loan and will host two new small modular reactors (SMRs) from Holtec by the early 2030s. SMRs are factory-built, smaller (≤300 MW) reactors meant to be mass-produced, cheaper, and quicker to install. They’re usually 300 megawatts or smaller. Each Holtec SMR-300 can power about 300,000 homes, offering steady energy to a grid strained by data centers and AI growth.

Local leaders welcome the jobs, which the article estimates could number approximately 900, with the average annual salary coming in at approximately $107,000. They also welcome the promised economic stability after years of seasonal swings and generational downturns. “Big Tech” is helping drive the movement: Microsoft plans to source power from a revived Three Mile Island plant, Google is partnering on new reactor projects, and Bill Gates’ company TerraPower plans to build out new SMR sites.

Experts call modern nuclear designs safer and more efficient, but caution that SMRs remain unproven at scale. Regulatory adaptation, cost overruns, and public skepticism still loom large. Even so, with 56 percent of Americans now favoring nuclear, momentum is building for what Gates calls “the subatomic future of energy.” --- Jason E. Wandling

With Louisiana Leading the Way, US LNG Exports Set a Record in September

“U.S. liquefied natural gas exports reached a record 9.4 million metric tons in September, surpassing the previous high of 9.3 million in August, The Center Square writes.”

Why this is important: Exports of liquified natural gas (LNG) hit a record of 9.4 million metric tons in September 2025, surpassing the old record of 9.3 million metric tons set the month before. Strong export demand and increased port capacity have led to the increases. Louisiana accounted for 61 percent of U.S. exports, followed by Texas at 31 percent. Ports in Virginia and Georgia were next on the list of the most tonnage. Records show 85 tankers left Louisiana ports in September, which was two-thirds of shipments. Europe was the largest purchaser of U.S. natural gas at 66 percent, followed by Asia at 17 percent, and Africa and Latin America at 15 percent. The increases were led by increased port capacity and permitting decisions that increased capacity. Since Russia’s invasion of Ukraine, U.S. natural gas has helped Europe reduce reliance on Russian gas. --- Mark E. Heath

When Sunshine became Cheaper than Coal

“Falling battery prices and innovations in solar materials are making clean energy more reliable than ever.”

Why this is important: A recent study from the University of Surrey found that solar energy has become so cost-effective in the sunniest countries that it has become cheaper than electricity generated from coal, gas, or wind. When solar panels are combined with batteries, the ability to store and release electricity when needed leads solar to be a more reliable, dispatchable source of power that helps balance grid demand. The study notes, however, that challenges for solar power remain, as significant solar additions to existing electricity networks have led to grid congestion and wasted energy when supply exceeds demand, making energy storage and smart grid technologies necessary for solar reliance. --- Steven W. Lee

Study Finds Data Centers Add Billions to Ohio Economy

“For every $1 in state tax incentives, Ohio gained $2.10 in return, pushing annual tax revenue from data centers to more than $1 billion in 2024.”

Why this is important: The data center sector is rapidly becoming a cornerstone of the Ohio economy as it has grown into a significant source of jobs, investment, and tax revenue. In 2024, Ohio’s data center industry supported approximately 95,000 jobs and contributed approximately $12 billion to the state economy. This is relevant to all states, but particularly West Virginia and others who are actively pursuing data center developments. --- James M. Bailey

Trump is Handing Out Public Land and Millions of Dollars to Revive Big Coal, Sending Advocates Reeling

“This comes as the administration has restricted new solar and wind farms on federal lands, and decried subsidies provided to these two renewable energy sources.”

Why this is important: The Trump administration is going all in to keep aging coal-fired plants in operation. The administration has announced it will spend $625 million to keep coal-fired plants in operation even though many were built in the 1960s, 1970s, and 1980s. While supporting coal, the administration has attempted to stop wind and solar development at a time when the rest of the world continues to build renewables. The administration announced it would restrict wind and solar development on federal lands and objected to federal tax breaks given to wind and solar in previous administrations. The administration also announced plans to lease 13.1 million acres of federal land for coal mining. However, in their first high-profile auction of federal land in Montana, federal officials rejected the only bidder's attempt to acquire 167 million tons of coal on public lands in Montana for less than a penny per ton in the ground. The sale would have been the biggest U.S. government coal sale in more than a decade, but the failed sale underscores a continued low appetite for coal among utilities that are turning to cheaper natural gas and renewables such as wind and solar to generate electricity. --- Mark E. Heath

More Geothermal Energy, “Faster Than Anyone Thought Possible”

“Those obstacles are beginning to crack as geothermal stakeholders begin to deploy advanced drilling and exploration methods borrowed from the oil and gas industry to create human-made geothermal conditions underground.”

Why this is important: New innovation and funding are pushing geothermal power from niche to mainstream because new technology promises to make use of geothermal sources for clean, 24/7 electricity faster than was possible until the last couple of years. Tech and new energy startups are combining AI and newly economic oil-and-gas techniques to unlock hidden heat reserves across the U.S., far beyond traditional geothermal zones. For example, Utah-based Zanskar is using AI-driven mapping to locate deep underground resources. Its recent discoveries in the Pumpernickel Valley Geothermal Project Thermal Gradient in northern Nevada rank among the top American geothermal finds in a decade and could deliver electricity in just three years. Zanskar says improved exploration tools cut discovery costs per megawatt tenfold.

Other firms are racing in too. Utah’s Rodatherm raised $38 million to pilot a modular, closed-loop system that boosts efficiency by 50 percent and could rival fossil fuel costs. Abroad, Germany’s Factor2 Energy is testing a CO₂-based geothermal loop that turns carbon storage sites into clean energy generators.

Together, these breakthroughs suggest geothermal could soon provide reliable, carbon-free baseload power, challenging fossil fuels at least to a certain extent. No one is fooling themselves into thinking this is a cure-all. There simply aren’t enough geothermal sources in the United States to rely on the source. Further, geothermal will face significant political headwinds; however, existing coal, oil, and gas plants, as well as established renewable sources, may dampen legislative changes. More broadly speaking, nuclear is the better-known of the alternatives, and political support for nuclear is increasing regardless of the political affiliations of state legislatures because the need for powerful and zero-emission electricity is tilting the field in favor of the once-discarded and disfavored sector. --- Jason E. Wandling

Pak Ships 1st Consignment Of Rare Earth Minerals To US: Report

“Sources in Washington told Dawn that the shipment marks a crucial step towards Pakistan's integration into the global critical minerals supply chain.”

Why this is important: The United States and Pakistan are advancing towards the implementation of an agreement for Pakistan to export rare earth minerals to the United States. According to a recent report, US Strategic Metals plans to invest nearly $500 million to set up mineral processing and development facilities in Pakistan. The partnership has the potential to provide the United States with greater access to essential raw materials to reduce dependency on dominant external suppliers, and it affords Pakistan the potential to generate billions in revenue and employment opportunities. --- Steven W. Lee

New England’s Final Coal Plant Shuts Down Years Ahead of Schedule

“Poor economics drove the aging New Hampshire plant offline three years early, even as the Trump administration pushes to revitalize coal.”

Why this is important: On the same day the Trump administration announced plans to spend $625 million in federal funds to keep aging coal-fired plants in operation, the last coal-fired plant in New England closed three years early as it was uneconomical to operate. The Merrimack Station, a 438-megawatt power plant in New Hampshire, came online in the 1960s and provided baseload power to the New England region for about 50 years. But natural gas, which is viewed as cheaper and more efficient, has taken over the New England regional market. In 2000, gas-fired plants generated about 15 percent of the region’s electricity, but by 2024, gas-fired plants were producing more than half of the region’s electricity. In that same period, solar power production accelerated, lowering demand on the grid during the day and creating more evening peaks. As coal plants take longer to ramp up to generate electricity than other sources like natural gas, the owner of Merrimack Station stated that the coal plant became less economical for these shorter bursts of demand in the evenings, so the plant was closed ahead of schedule. The utility has announced plans to repurpose the 400-acre plant site, just outside Concord, for clean energy projects, taking advantage of existing electric infrastructure to connect a 120-megawatt combined solar and battery storage system to the grid. --- Mark E. Heath

● EIA Energy Statistics

Here is a round-up of the latest statistics concerning the energy industry.

ELECTRICITY

Electric Power Monthly

PETROLEUM

This Week in Petroleum

Weekly Petroleum Status Report

NATURAL GAS

Short-Term Energy Outlook - Natural Gas

Natural Gas Weekly Update

Natural Gas Futures Prices

COAL

Short-Term Energy Outlook - Coal

Coal Markets

Weekly Coal Production

RENEWABLES

Short-Term Energy Outlook

Monthly Biodiesel Production Report

Monthly Densified Biomass Fuel Report

Send Print Report

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.