Energy Update: Week of September 29th

Friends,

After a terrible start, US golfers made a serious run at the Europeans in yesterday’s Ryder Cup at Bethpage Black, NY. Despite having an 7-point lead, the US team won five of the first six head-to-head matches (and took points in all but one) to make it the Europeans sweat out the 15-13 victory. This year's tournament will be remembered as the rowdiest Ryder Cups in living memory and perhaps one of the best in terms of quality.

Wednesday is October 1^st and that means we are talking shutdowns this week. Normally, shutdowns during the two decades prior were instigated by Congressional Republicans as they sought to hold down government spending. This time, it’s Democrats who are refusing to provide the necessary votes to keep the lights on. The White House and Congressional leaders will meet today, but the House is out and doesn’t plan to come back given it has already passed a stop-gap funding bill to keep the government open and Thursday is Yom Kippur, the Day of Atonement and the Holiest Day on the Jewish calendar. 

So, the ball is in the Senate’s court when it convenes today to pick up consideration of the National Defense Authorization Act and the nomination of former Rep. Michael Waltz to be UN ambassador. One twist here: Should the government close Wednesday at Midnight (which seems a near certainty), OMB instructed agencies should consider using the shutdown as “an opportunity to consider reduction in force (RIF) notices for employees working in areas affected by the shutdown” and whose programs “are not consistent with the president’s priorities.”  Whether it is a pressure tactic or reality, it won’t be great to morale. 

The White House is also having “Coal Day” today.  This morning, Interior, EPA, and DOE are announcing a coordinated effort on coal. They announced new acreage for coal leasing, reductions in royalty rates, new permits, new funding for coal facilities (both retrofit and new builds), and other EPA regulatory news (including compliance extension for ELG). Some specifics: It is a $625 million investment including:

• $350 million to modernize coal plants with reliable electric power and capacity;
• $175 million for coal projects that are expected to bring cheaper, more reliable energy to rural communities;
• $50 million to upgrade wastewater management systems to extend the lifespan of coal plants and reduce operating costs;
• $25 million to enable coal power plants to operate on dual fuel;
• $25 million to support investments that will maintain boiler efficiency and reliability when utilizing 100% natural gas.

Coincidently, Vistra made a major announcement this morning on affordability and reliability for the Texas market. Vistra will build two new advanced natural gas power units, together totaling 860 megawatts, on-site at its Permian Basin Power Plant. This expansion more than triples current capacity to 1,185 MW.  In addition to the new Permian Basin units, Vistra is also moving on several other projects including:

• Completed – upgrades of existing gas plants: More than 400 MW of generation capacity across its existing Texas gas-fueled power plant fleet.
• Nearing Completion – new solar facility: Construction is nearly complete on the 200-MW Oak Hill solar project, located atop the site of the retired and reclaimed Oak Hill lignite mine, expected to deliver power 4Q of 2025.
• On-Track – repowering a retiring coal plant: The Coleto Creek Power Plant that was scheduled for retirement in 2027 is being repowered to create a dispatchable gas plant and repurpose the considerable existing infrastructure. This will restore approximately 630 MW of generation to the grid, and still retain the important economic and tax benefits to the community of Goliad.

Tomorrow at 9:00 a.m., please join or tune in for the annual AGA Winter Heating Outlook briefing, setting the stage for what’s to come in the natural gas consumers this winter at a time of surging energy demand. I am headed to Boston to moderate a panel on permitting (and I suspect any government shutdown issues) at the Emissions Marketing Association’s annual meeting.  OPEC+ meets on Wednesday and is expected to continue its production boost.

Finally, I am heading on Sirius XM’s Julie Mason Show on P.O.T.U.S. 124 today just after 5:30 pm to discuss last week’s Climate Week activity, Russian oil and uranium challenges and almost certainly a judge’s decision to overturn the Administration’s stop work order for the Rhode Island offshore wind project.

Hoping everyone has a good fast on Wednesday evening and Thursday. I know it is an important yearly event for many (including my family).

Call with questions.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932                                                                                                    

FRANKLY SPOKEN

““I am not going to cry into my beer over any of the dialogue on wind, other than to create a thriving business,” he said. “We believe wind has an important role to play. We do think there are elements of the quality performance of the industry that need to be better.”

Scott Strazik, chief executive officer and president of GE Vernova, in an interview with David Gelles at the New York Times Climate Forward event, where Strazik acknowledged the landscape for U.S. wind has shifted.

ON THE PODCAST

Jennings Show Talks Uranium Enrichment with GLE Exec – The Scott Jennings Show has launched a new interview series called Investing in America, highlighting companies that are betting on America’s future by creating jobs, building technology, and strengthening our economy. For the first installment, Scott sat down with Stephen Long, CEO of Global Laser Enrichment, to talk about how one American company is leading a nuclear energy comeback.

FUN OPINIONS

DOE’s Wright Takes on Russian Uranium in CNN Interview – In an interview on CNN with Kate Bolduan, Energy Secretary Chris Wright defended the President UN Speech while highlighting the Administrative approach to renewables and oil/gas.  The most Interested part to me is the discussion around the 6:00 mark when Bolduan asked about US reliance on Russian Uranium to fuel nuclear power plants.  Wright agreed that the US needs to produce more uranium domestically and highlighted a potential announcement that DOE will make on the subject in the next few weeks. Currently, GLE and other uranium producers are competing for DOE contracts to increase domestic production.

FROG BLOG

USEA CEO Corner with Orsted – In an interview, USEA's President & CEO Mark Menezes hosts a conversation with Amanda Dasch, the Region Americas CEO for Ørsted.  Of course, Ørsted is in the news lately with the conversation focused on how her leadership is shaping the energy landscape and building a stronger community. Dasch says Ørsted highlights the opportunity in the United States specifically to build major infrastructure projects that made sense regionally for the power demands that we had in the regions.  Offshore wind is something that makes sense in the New England area where we're building projects right now.

FUN FACTS

Share of Electricity Production from Nuclear: EIA reports that energy-related CO2 emissions per capita fell in every U.S. state from 2005 to 2023.  It was because we burned less coal and more natural gas, wind and solar.

IN THE NEWS

White House Rolls out Coal Initiatives – This morning, Interior, EPA, and DOE are announcing a coordinated effort on coal.  They announced new acreage for coal leasing, reductions in royalty rates, new permits, new funding for coal facilities (both retrofit and new builds), and other EPA regulatory news (including compliance extension for ELG).  Some specifics: It is a $625 million investment including:

• $350 million to modernize coal plants with reliable electric power and capacity;
• $175 million for coal projects that are expected to bring cheaper, more reliable energy to rural communities;
• $50 million to upgrade wastewater management systems to extend the lifespan of coal plants and reduce operating costs;
• $25 million to enable coal power plants to operate on dual fuel;
• $25 million to support investments that will maintain boiler efficiency and reliability when utilizing 100% natural gas.

Vistra Adds Major New Units for Reliability, Affordability– In addition to the big White House announcements, our friends at Vistra had already planned to make major announcements with the next phase of its capital plan to support grid reliability in Texas. In 2024, Vistra identified more than $1 billion worth of potential capital additions in generation capacity within the Texas ERCOT market by 2028 if market conditions were supportive. Now, based on customer demand and to meet West Texas’ growing power needs, particularly the state’s expanding oil and natural gas industries, Vistra will build two new advanced natural gas power units, together totaling 860 megawatts, on-site at its Permian Basin Power Plant. This expansion more than triples the site’s current capacity from 325 MW to 1,185 MW.  In addition to the new Permian Basin units, Vistra is also moving on several other projects including:

• Completed – upgrades of existing gas plants: Over the past year, Vistra has invested in technologies and upgrades that added more than 400 MW of generation capacity across its existing Texas gas-fueled power plant fleet. These improvements have been completed and are generating power for the people of Texas. The company is working on additional projects over the next year and expects that when finished, all the upgrades will have added a total of 500 MW of additional capacity.
• Nearing Completion – new solar facility: Construction is nearly complete on the 200-MW Oak Hill solar project, located atop the site of the retired and reclaimed Oak Hill lignite mine. Commercial operations of this new facility are expected to commence in the fourth quarter of 2025.
• On-Track – repowering a retiring coal plant: The company will repower the Coleto Creek Power Plant that was scheduled for retirement in 2027. By investing in plant upgrades and supporting pipeline expansion, the company will create a dispatchable gas plant on the property and repurpose the considerable existing infrastructure. This will restore approximately 630 MW of generation to the grid, and the new gas-fueled capacity can serve Texans for decades to come, while retaining the important economic and tax benefits to the Goliad area.

Texas Gov. Greg Abbott on the plan:

“Texas leads the nation in energy production, providing reliable and affordable power for Texans and the rest of the country,” said Texas Governor Greg Abbott. “Vistra’s bold investment in the Permian Basin will reinforce our state’s electric grid, spur jobs, and drive regional economic growth for years to come. Together, we are powering Texas by supporting families, fueling businesses, and meeting the energy demands of our thriving state.”

NatGas Report: 16% Increase in Recoverable Natural Gas Supplies – The AGA’s Potential Gas Committee rolled out its 60^th Anniversary report on natural gas resources in the United States on Tuesday, showing a 16% increase in technically recoverable domestic natural gas resources from the previous biannual report, the largest reported value in its history. The increase shows an industry primed to fuel the economy of the future with abundant domestic supplies to meet growing demand for energy. The Potential Gas Committee assesses 90 geologic provinces encompassing seven geologic areas with the cooperation and teamwork of geologists from around the nation to provide a meaningful appraisal of the U.S. long-range natural gas supply. According to the report, the U.S. currently has 3,871 Tcf of total technically recoverable natural gas resources with shale gas accounting for 58% of total natural gas resources. The total U.S. future natural gas supply, including both reserves and resources, stands at a record 4,562 Tcf. With abundant natural gas resources, more than 2.8 million miles of existing pipeline networks and extensive storage systems, the U.S. natural gas industry is strategically placed to serve as the backbone of a scalable energy system that can reliably meet expanding energy demands.

Judge Restarts Offshore Wind Project – Ørsted’s Revolution Wind project can resume construction after a Federal judge granted an injunction overturning the Trump Administration’s August “Stop-Work” order.  Judge Royce Lamberth, Reagan appointee, said the project’s developers are likely to succeed in their claims, and the project is likely to suffer irreparable harm in the absence of an injunction. The Revolution Wind project is a 700-MW offshore Rhode Island, joint owner Ørsted said Monday after a judge granted the project a preliminary injunction against the Trump administration’s stop work order. Lamberth wrote that the Administration’s  decision was “the height of arbitrary and capricious.” 

BPC Report on NatGas, Power shows Key Future Role – The Bipartisan Policy Center released its Future of Natural Gas report recently which outlines policy recommendations for natural gas to remain a reliable, affordable, and increasingly low-emissions resource in the path to net-zero emissions by 2050. The initiative calls for coordinated federal policy in five key areas: infrastructure, coordinated planning, liquefied natural gas (LNG) and exports, measurement, monitoring, reporting and verification (MMRV), and innovation and decarbonization. The framework emphasizes that natural gas will continue to play a vital role in a net-zero economy, supporting decarbonization efforts, but requires enhanced infrastructure and decarbonization technologies to meet climate goals and energy demands. Some key details:

• Natural gas will remain central to reliability, flexibility, decarb – One of the main premises of the report is that NG is unlikely to disappear—even under aggressive decarbonization trajectories—and it continues to provide critical value to the electric sector. 
• Interdependency of gas and power systems demands coordinated planning and modeling – The report emphasizes that many planning regimes currently treat NG and electric systems in silos—an approach that increasingly fails under tight coupling or stress events.
• Infrastructure modernization and decarb of the gas system are essential – A core theme is that to preserve the viability of NG in a low-carbon future, the gas infrastructure (pipelines, compressors, leak controls, blending capacity) must itself evolve. 
• Robust Measurement, Monitoring, Reporting, and Verification (MMRV) is a differentiator – A major focus of the BPC report is that the credibility of “lower-emissions” gas hinges on rigorous, transparent MMRV across the value chain, and that this credibility will matter in both domestic regulation and international gas trade. 

ON THE SCHEDULE THIS WEEK

EMA Conference Set for Boston – The Emissions Marketing Association’s annual meeting will be in Boston today to Wednesday at the Royal Sonesta Hotel to look at new pathways and current challenges in environmental markets. I will be there tomorrow to moderate a panel on permitting (and I suspect any government shutdown issues).

Enviros Talk Shutdown Impacts on EPA – Today at 1:00 p.m., former EPA officials hold a presser on to discuss the impacts of any potential shutdown. Among the speakers are former Director of EPA’s Office of Children’s Health Protection Jeanne Briskin and Vicki Arroyo, former EPA Associate Administrator for Policy.

POLITICO Holds Transportation Policy Outlook – POLITICO holds a Transportation policy briefing tomorrow at 8:00 a.m. at Union Station that examines what all of this change means for ground transportation regulation and investment. The future of American road transportation is undergoing a reset in Washington. The fuels and batteries needed to power the automobiles of tomorrow will be shaped by today’s fluctuating consumer demand and shifting policy priorities.

AGA Holds Winter Outlook Briefing – AGA's annual Winter Heating Outlook will take place tomorrow at 9:00 a.m., setting the stage for what’s to come in the natural gas industry and for consumers this winter at a time of surging energy demand. The event is live at AGA’s offices at 400 North Capitol Street, but also virtual. Please RSVP to Adam Kay at akay@aga.org or Emily Ellis at eellis@aga.org to join/attend.

Forum Looks at Africa Minerals – The Brookings Institution holds a discussion tomorrow at 10:00 a.m. on leveraging U.S.-Africa critical mineral opportunities and strategies for success. The Africa Growth Initiative (AGI) at Brookings will launch its new report on the prospects of developing a U.S.-Africa critical mineral supply chain. Rep. Sheila Cherfilus-McCormick (D-Fla.) delivers remarks.

CSIS Looks at Quantum Materials – The Center for Strategic and International Studies Renewing American Innovation Program; and the Chicago Quantum Exchange hold a symposium tomorrow at 10:30 a.m. on growing the Midwest Quantum ecosystem. This event draws together the region’s leading research universities and national laboratories along with federal and state agencies, public-private partnerships, and industry participants to explore the region’s assets and capabilities and the challenges and opportunities for cooperation. Speakers will describe the diverse set efforts underway to accelerate the growth of Illinois’s quantum tech economy and develop its quantum workforce. Speakers will include DOE’s Superconducting Quantum Materials and Systems Center director Anna Grassellino and Argonne National Laboratory’s Dick Co.

Chatterjee Talks Energy Demand – The Harvard Kennedy School Belfer Center will host a discussion on Campus with former Federal Energy Regulatory Commission Chairman Neil Chatterjee tomorrow at noon, looking at the new “era” of growing energy demand.

Forum Looks at Electricity Competition – The R Street Institute holds a virtual discussion tomorrow at 1 p.m. on state-by-state scorecard on electricity competition in states. The event features the authors of R Street’s recent “State-By-State Scorecard on Electricity Competition” to explain its methodology, research, and results. Panelists from across the electricity ecosystem will discuss their experiences with electricity competition and share their perspectives on the state of competition in their own jurisdictions and around the country. NRG’s Travis Kavulla is among the panelists.

Forum to Look at Utah Public Land Issues – ConservAmerica holds webinar tomorrow at 1:00 p.m. to bring together state and local leaders, exploring how a balanced approach to federal public land management and disposal can help unlock opportunities while preserving Utah’s natural values. Panelists will discuss the challenges faced by local communities and practical strategies to improve collaboration between the federal government and state and local officials, ensuring that conservation priorities are honored while also addressing pressing needs for affordable housing and economic development.

Forum Looks at Heat Pump Adoption – Advanced Energy United holds a conversation tomorrow at 2:00 p.m. with policy advocates and industry experts on how state and regional policies can scale adoption of heat pumps and other electric home solutions nationwide. The event will address key insights into state-level strategies that can expand markets for electric heat pump heating and cooling appliances, with direct examples of how developers, contractors, and businesses are benefiting from supportive policy environments. Our friend Emily Pontecorvo of Heatmap moderates the expert panel.. 

R St Forum Moves to Permitting – Tomorrow at 5:00 p.m., R St holds its second session in the Preparing for Energy Load Growth series and will examine how Congress can modernize permitting to accelerate energy projects while maintaining environmental protections. Experts will discuss the potential impacts and political durability of pending proposals as well as what reforms might mean for the economy, consumers, and industry. BPC’s Xan Fishman speaks.

OPEC+ Will Continue Production Increase – OPEC+ meeting on Wednesday and is expected to continue its production boost. The Joint Ministerial Monitoring Committee (JMMC) of OPEC+ has emphasized the need for full compliance with oil production agreements, ahead of the meeting. The JMMC, which includes top energy ministers from OPEC and allies led by Russia, met online on July 28 to discuss the critical importance of achieving full conformity and compensation.

Senate Energy Marks Up Legislation – The Senate Energy Committee’s Public Lands, Forests, and Mining Subcommittee holds a hearing on Wednesday at 10:00 a.m. on pending legislation.

Forum Looks at Climate Denial – On Wednesday at 3:30 p.m., the Carnegie Endowment for International Peace holds a discussion on combatting climate denialism in the U.S. The event will look at the new paper by Leonardo Martinez-Diaz, Milo McBride, and Noah Gordon, “Climate Clarity: On the Future of Climate Action in the United States,” and will feature a discussion on climate clarity.

Yom Kippur – Wednesday Sundown to Thursday Sundown.

Methane Comments Due – On Friday October 3^rd (pending potential shutdown), comments are due on EPA’s proposed extension of compliance for oil and gas sector methane emissions controls, after a month-long comment period extension.

IN THE FUTURE

CATO Forum on NATO Features Sen. Lee –The Cato Institute holds a conversation on the future of the NATO alliance with Senator Mike Lee on Tuesday October 7^th. This discussion will examine efforts at defense burden sharing and the challenges of balancing American interests with an ever-expanding menu of international commitments. We will also consider what principles should guide US engagement in Europe and opportunities for rebalancing the transatlantic relationship.

R St Forum Moves to Permitting – On Tuesday October 7^th at 5:00 p.m., R St holds its third and final session of its Preparing for Energy Load Growth series will explore how Congress can address this bottleneck. Experts will examine the economics and politics of transmission—including regional divides and federal-state tensions—and the role of federal government. The conversation will also highlight what bipartisan reforms could help build a more resilient and affordable grid.

Chamber to Hold Permitting Push on Capitol Hill – The US Chamber holds a permitting event on Capitol Hill on Thursday October 9^th.  The event will feature a forum and Policy panels, as well as visits to Congressional offices.  House Resources Chair Bruce Westerman will be among the speakers. 

Carbon Capture Report Launched – On Thursday October 9^th at 9:00 a.m., the Global CCS Institute will hold the launch event of the Global Status of CCS 2025 Report. The Global Status of Carbon Capture and Storage (CCS) Report delivers an exciting snapshot of new developments and breakthroughs in CCS over the past year, unveiling the latest data on projects in operation and under development. Jeff Dennis of the Electricity Customer Alliance speaks.

LA Biz Council Sustainability Summit Set – The Los Angeles Business Council’s 19^th Sustainability Summit will be held in LA on Thursday October 9^th at USC. Speakers will include LA County Supervisor Lindsay Horvath, CEC Commissioner Nancy Skinner, Cal Resource s Secretary Wade Crowfoot, Cal ISO CEO Elliot Mainzer and many more.

Bracewell’s Tax Expert to Speak at SAF Congress – The Sustainable Aviation Fuel North American Congress will be held on October 14^th to 16^th in Houston at the Marriott Marquis Hotel. SAF North America 2025 brings together more than 800 decision-makers from across aviation, energy, and government to tackle the biggest challenges in SAF scale-up, infrastructure, and policy. Speakers will include all major airlines, DOE’s Valerie Reed and Blake Simmons, Bracewell’s tax expert Tim Urban and many more.

Hydro Forum to Explore New Opportunities – The National Hydropower Association holds its Clean Currents forum from October 14^th to 17^th in Pittsburgh, PA.

Agri-Pulse Hosts Ag Jobs, Clean Energy Forum – As world leaders prepare to convene at COP30 in Belém, Brazil this November, American agriculture stands at a pivotal moment to demonstrate its leadership in sustainable food systems innovation. The Agri-Pulse and JBS holds a forum at the on October 21^st at 2:00 p.m. in the National Press Club in Washington, D.C. to spotlight how U.S. farmers, ranchers, and their supply chain partners are already delivering the solutions the world needs. This timely forum will showcase real-world success stories and policy recommendations from the Sustainable Business COP (SB COP)—a global collaborative of private-sector companies—demonstrating how American agriculture is proving that productivity and sustainability go hand-in-hand.

Former FERC Chair Headlines Power Forum – POWER eXchange holds a forum in Denver on October 28^th to look at Data Center questions. Former FERC Chairman Mark C. Christie will keynote, bringing two decades of regulatory insight on reliability, market design, and the future of power and digital infrastructure.

BPC Permitting Summit Features Key Congressional, FERC Leaders – On October 29^th, the Bipartisan Policy Center holds its Permitting Summit 2025, a half-day event bringing together congressional leaders from both sides of the aisle, key administration officials, and leaders from industry and the nonprofit sector. Through keynote addresses, fireside chats, and expert panels, speakers will explore the questions above and the policy and political dynamics shaping permitting reform. Key speakers include Seb. Dave McCormick, Reps. Bruce Westerman and Jared Golden, FERC Chair David Rosner and FERC Commissioner Lindsay See.