September 2, 2025

Currents - Energy Industry Insights: V 9, Issue 8, 2025

James Bailey, Michael Basile, Stephanie Eaton, Carrie Grundmann, Steven Lee, Taiesha Morgan, Nicholas Muto, Barry Naum, Jason Wandling, Derrick Price Williamson, David Yaussy

Spilman Thomas & Battle, PLLC

+ Follow Contact

Facebook

Send

Embed

Volume 9, Issue 8

Welcome

Welcome to our eighth issue of Currents 2025.

Thank you for reading!

Extending the Lives of Fossil Fuel Power Plants Based on Arguably Tenuous Assumptions May Increase Power Prices

By Derrick Price Williamson

In July, the Trump administration’s Department of Energy (DOE) issued a report on the adequacy of electric generation resources to meet the current and projected demand for electricity. The DOE report ostensibly supports the continued operation of fossil fuel-based power plants, even if they are set to be retired as a function of weak economic viability. The open questions being debated are whether such measures are necessary and at what cost to consumers.

DOE’s report, warning of the potential for widespread blackouts if fossil fuel plant retirements occur, is being challenged both as to substance and form. DOE has 30 days to respond to the rehearing requests, which, if denied, may be appealed.

In their rehearing filing, three clean energy groups claim that the report “falls far short of a serious assessment of reliability and resource adequacy.”

Click here to read the entire article.

Interior Department Sets Offshore Energy Leasing Schedule Under One Big Beautiful Bill Act

“By committing to a predictable sale schedule, the Department is delivering on President Trump’s promise to expand American energy production and strengthen U.S. energy independence.”

Why this is important: The Interior Department’s decision to set an offshore production leasing schedule under the One Big Beautiful Bill Act is significant because it establishes a new federal framework for offshore energy development. This action signals a potential shift in national energy priorities and could have broad implications for domestic energy markets. By shaping expectations about future supply, the federal leasing schedule may influence investment decisions, regulatory certainty, and long-term energy planning across the sector.

For West Virginia and the greater Marcellus Shale region -- where energy production is concentrated onshore in natural gas -- the effects are likely indirect but still important. Expanded offshore leasing could alter market dynamics by influencing natural gas pricing, shifting capital flows, or steering policy emphasis toward certain fuels. If offshore production increases substantially, it could expand overall national supply and place downward pressure on natural gas prices, directly affecting Marcellus producers. Moreover, a federal focus on offshore projects might compete with shale plays for infrastructure dollars, private capital, and policy support, potentially reshaping production and investment strategies in our region and other inland regions.

In short, while the immediate regulatory change applies only to offshore projects, federal shifts in leasing policy often reverberate through the entire energy sector. For the Marcellus Shale, that means market and policy ripple effects -- through pricing, competition, and infrastructure priorities -- that could meaningfully influence the region’s energy future. --- Michael J. Basile

Lighting the Way for West Virginia: Microgrid Law Aims to Attract Data Centers, Then Share the Wealth They Generate

“A West Virginia law–opposed by an environmental group–allows new data centers to be served by behind-the-meter microgrids whose owners could sell 10% of the power generated into the wholesale market.”

Why this is important: This article provides a thorough review of the 2025 legislation, H.B. 2014, that authorizes microgrids in West Virginia for the purpose of powering high-impact data centers. This new law is a substantial expansion of third-party electric generation. This is an especially hot topic with the boom in data storage demand and has become the focus of Governor Morrisey’s economic development strategy. There has been substantial interest and efforts in developing large-scale data centers in West Virginia, which presents a tremendous opportunity across numerous sectors. In addition to examining the new law’s regulatory framework, the article provides historical background and provides comparisons to new laws in Oregon. --- James M. Bailey

Businesses Face 'Chaos' as EPA Aims to Repeal Its Authority Over Climate Pollution

“The Environmental Protection Agency's endangerment finding has served as the legal basis for federal climate regulations under the Clean Air Act since 2009.”

Why this is important: One of President Trump’s many first-day executive orders, “Unleashing American Energy,” established a 30-day deadline for EPA to submit recommendations on the legality and continuing applicability of the 2009 Endangerment Finding. Subsequently, the Trump administration announced it would rescind the Endangerment Finding. This article states: “Companies have long complained that the government's efforts to rein in heat-trapping pollution are impractical. But a lot of businesses want the EPA to be in charge of setting national standards of some kind, according to proponents and legal experts, because it helps shield them from lawsuits and creates a predictable environment in which to make big, long-term investments.”

The main reason for that, according to the article, is that many companies rely on preemption as a defense to third-party lawsuits that claim injuries are allegedly related to climate change. Theodore Boutrous, counsel for Chevron, disagrees. He notes that the Supreme Court has already determined that greenhouse gases are regulated pollutants subject to regulation pursuant to the Clean Air Act. Now that that’s established, the federal government occupies the field.

Regardless, the Trump administration’s many pending regulatory changes in the air sector face legal challenges. --- Jason E. Wandling

Opposition Ramps Up Against MARL as Company Officials Highlight Benefits

“Residents have opposed the project primarily because of the $450 million price tag that will be passed onto FirstEnergy customers with no apparent benefit to justify the expense.”

Why this is important: The proposed Mid-Atlantic Resiliency Link (MARL), a 105-mile, 500,000-volt transmission line, raises pressing questions about who should bear the financial and environmental costs of modernizing a transmission line. The MARL is intended to originate in Greene County, Pennsylvania, connecting to a substation in Gore, Virginia, to ultimately provide energy to a data center in Fredrick County, Virginia via West Virginia. This development comes with a cost of $450 million. West Virginia residents are being asked to potentially fund this project, which primarily benefits data center growth in Virginia. This produces challenges of fair resource distribution and whether this comes with any local benefit. The West Virginians Against Transmission Line Injustice (WATI) is a growing group created with the intent to provide a platform for citizens and local governments to assert their voices in the development process that otherwise might sideline local concerns. The efforts serve as a timely reminder to policymakers and regulators that infrastructure projects must be evaluated through the lens of social and economic justice of the West Virginia community. NextEra Energy Transmission Senior Project Director Kaitlin McCormick has asserted that the changes will ultimately eliminate the use of fossil fuels from the portfolio and that the development will benefit all of the industries, businesses, and electric consumers in West Virginia and the surrounding states. --- Taiesha K. Morgan

Data Center Firms could Buy Utilities and Add Renewables, Says Trade Group Exec

“And the data center firms are pushing for more and more generation, almost without hesitation with regards to price.”

Why this is important: As data center companies continue to forecast significant energy needs in the coming years, Simon Mahan, the executive director of the Southern Renewable Energy Association, which represents wind, solar, storage, and transmission sectors, discusses a hypothetical scenario in which a data center company purchases an electric utility to help meet its energy needs.

Mr. Mahan views the proposition as enticing for massive companies like Amazon, Google, or Meta, because they could then control their own energy supply and create long-term cost certainty. As Mr. Mahan acknowledges, however, any purchase of an electric utility would require regulatory approval, which would likely invite significant scrutiny from stakeholders. Perhaps due to this situation being entirely hypothetical, Mr. Mahan neglects to mention the duty of a regulated electric utility to provide safe and reliable service to all of its customers at just and reasonable rates, a duty which would not be abrogated if a data center company purchased an electric utility. --- Steven W. Lee

6 Themes Driving Grid Risk Today: NERC

“With every aspect of the power grid changing, it’s time to rethink traditional system planning and operating approaches, a new report says.”

Why this is important: A recent report entitled “Reliability Risk Priorities,” published by the North American Electric Reliability Corp. (NERC), the organization responsible for developing and enforcing mandatory reliability standards to ensure the security and reliability of the bulk power system, identified major themes and risks to the electric grid as it faces unprecedented load growth and ever increasingly complex and diverse generation to serve load. The report identifies the interrelation of the issues and concludes that traditional planning and operating approaches are no longer appropriate. Ensuring reliability of the grid is of primary importance to regulators, utilities, and customers who are relying on electricity more than ever before. This report signals that the risks to reliability are only growing as demand from data centers and other electrification is also increasing. --- Carrie H. Grundmann

Trump’s Overhaul of Nuclear Regulatory Commission Spurs Fears of More Delays

“With the administration bracing for peak hour energy demand to rise by at least 100 gigawatts by 2030, nuclear advocates say that timeline can no longer work if the U.S. wants to add a substantial amount of nuclear power to its energy mix.”

Why this is important: The nation is careening on a collision course between astronomical demand growth, spurred primarily by data center and advanced technologies, and the retirement of traditional baseload generation in favor of alternative forms of energy, which is already delayed through long project queue lines. Sustainable large capacity solutions are immediately necessary, and new nuclear generation is viewed by growing numbers as the best and most practical solution. To that end, President Trump has made immediate development of nuclear reactors (already a tremendously slow regulatory process) a cornerstone of his energy policy, targeting a more efficient Nuclear Regulatory Commission as the initial step in sparking faster roll-out of nuclear generation. President Trump’s standard operating procedure of taking a broadsword approach to languid government bureaucracy – starting with the firing of NRC members – is meeting the standard reflexive response of opposition in Congress and among special interest groups. Simply stated, the President’s approach is causing concern among some advocates of nuclear energy development that faster regulatory review and approval of nuclear projects may be hampered by the very tactics aimed at achieving this objective. Whether those fears are ultimately realized, or perhaps even ultimately manifested by the amplified opposition to all things “Trump,” remains to be seen. --- Barry A. Naum

Trump Administration Bans Solar on Farmland

“Building solar installations on farmland has become a popular practice in the U.S. and, more recently, in the UK as well, as in other parts of Europe.”

Why this is important: According to information from the Solar Energy Industries Association (SEIA), despite quarterly declines in capacity, the U.S. solar industry installed 10.8 gigawatts-direct current (GWdc) of capacity in the first quarter of 2025. Further, for the utility-scale segment, the first quarter of this year is one of the segment’s top quarters for solar installations of all time. The continued expansion of solar facilities in the U.S., many of which are or are planned to be coupled with on-site battery storage of some sort, is coinciding with ever-increasing load growth that utilities are reporting to regulating authorities across the country. This load growth is driven by a variety of factors, such as the construction of data centers, increased demand from electric vehicles (EVs), and expanding electricity usage by all consumers. Despite high electric demand, the high level of solar construction may not be sustainable.

On August 19, 2025, Agriculture Secretary Brooke Rollins announced that the U.S. Dept. of Agriculture banned the use of farmland for the construction of solar facilities. It is too soon to gauge the impact of the ban on solar installations, but according to the U.S. Dept. of Agriculture, more than 70 percent of solar farms in rural areas were installed on agricultural land from 2012-2020. That said, based on 2020 data, the total area of rural land impacted by solar farms and by wind farms combined is 424,000 acres compared to 897 million acres of farmland used in the U.S.

Nevertheless, given the ban on using farmland for solar sites, coupled with tariffs on solar panels and related materials and solar tax credit rollbacks, the solar construction industry is likely to see some shrinkage over the next few years. Some projects that were not commenced prior to these legal changes may have to be relocated. There is also the potential that contracts in place between solar developers and/or utilities for new solar facilities planned for construction on farmland will be impossible to perform or made salvageable by force majeure clauses. Different solar technologies that are both more efficient and can be installed on buildings or man-made facilities, and that are not impacted by tariffs, may need to be deployed. --- Stephanie U. Eaton

WV Groups Call on Morrisey, McCuskey to Push Against End of Federal Solar Program

“Twelve organizations — including American Friends Service Committee of West Virginia, Appalachian Voices, Christians for the Mountains, and Citizens’ Climate Lobby of West Virginia — sent a letter asking Gov. Patrick Morrisey and Attorney General J.B. McCuskey to speak against the program’s cancellation.”

Why this is important: Governor Morrisey has opted to return over $100 million to the federal government that was awarded to West Virginia as part of the EPA’s Solar for All program. The purpose of the funds was to invest in solar energy projects that would lower electric costs for low-income ratepayers. This is noteworthy due to critics’ contention that the funds could still be utilized to lower electric costs. There is additional questioning over whether the state was legally required to return the funds at this stage, as the EPA had already both obligated and disbursed the funds to the state. ---James M. Bailey

'Something’s Gotta Give:' Virginia is Struggling to Balance Energy Needs with Local Tensions Over Solar Development

“The state is also racing to meet the terms of 2020’s Virginia Clean Economy Act, which sets a goal to use only carbon-free electricity by 2045.”

Why this is important: In 2020, Virginia enacted the Virginia Clean Economy Act (VCEA) that puts the investor-owned utilities in Virginia on a path towards carbon neutrality by the middle of the century. To achieve these legislative goals, the VCEA approved the development of thousands of megawatts of solar energy. Local communities, however, have opposed solar, particularly when the proposal is to situate it on usable land (rather than rooftops, paved land, or brownfield sites), making it challenging for the goals of the VCEA to be achieved. The article addresses the tension between the VCEA and local opposition, noting that more needs to be done to overcome local opposition. Adding to the tension is a rural versus urban divide where rural communities feel like they are being asked to sacrifice their farmland to power data centers located miles away in more populated parts of the state. At current, a solution has not been developed, but if Virginia wants to continue to expand solar in the state, a viable solution is necessary. --- Carrie H. Grundmann

EPA Set to Issue Biofuel Waivers for Small Refiners

“In that proposal, the Trump administration eyed an 8% increase in the volume of biofuels to be blended with regular fuels next year, at a total of 24.02 billion gallons”

Why this is important: The EPA’s biofuel waivers may reduce biofuel demand, easing financial pressure on small refiners in the U.S., but potentially hurting local biofuel producers and lowering compliance credit prices, which may disrupt regional energy markets and agricultural interests. The EPA’s decision to grant biofuel waivers for small refiners may significantly affect the eastern U.S. energy sector.

Refiners in the region may see reduced costs and improved profit margins due to decreased biofuel blending mandates, but this would also likely lower demand for locally produced biofuels. As a result, regional biofuel producers, often located in states with strong agricultural economies, could face financial strain. The move may also reduce the price of biofuel compliance credits, altering trading dynamics and potentially dampening incentives for future renewable investments. Overall, the waivers may risk creating tension between oil interests and agriculture-based energy producers here. --- Michael J. Basile

New Oil and Gas Resources Discovered in Northern Colorado, Southern Wyoming

“The discovery includes an estimated 3 million barrels of oil and 666 billion cubic feet of gas that are recoverable.”

Why this is important: The United States Geological Survey (USGS), along with other companies, has initiated efforts to increase drilling campaigns and independent energy production. These efforts have been streamlined under the Trump administration. The USGS has announced that for the first time since about 1920, new resources have been discovered in the Phosphoria Total Petroleum System. Since this time, the system has yielded approximately 500 million barrels of oil and 2.5 trillion cubic feet of natural gas. This most recent discovery in northern Colorado and southern Wyoming forecasts approximately three million barrels of oil and 666 billion cubic feet of recoverable gas. This comes after many within the oil production space believe that the U.S.’s oil production has begun to plateau. This discovery will likely have a large impact on the growing demand for natural gas within the industry. Whether these resources will be used depends on many factors, including the needs of U.S. industry, market conditions, infrastructure capacity, and the balance regulators strike between environmental oversight and energy security. The Crude Life points out in their article that “[f]or the oil and gas industry, the discoveries reinforce a familiar lesson: even in mature basins, the subsurface continues to surprise.” --- Taiesha K. Morgan

Sorry, New York: West Virginia won’t Clean Up Your Climate Mess

“That’s why I, along with 21 other state attorneys general, three energy trade associations and one energy company, have sued the New York politicians responsible for implementing the Climate Change Superfund Act.”

Why this is important: West Virginia’s Attorney General J.B. McCuskey goes on the offensive in this op-ed published in the New York Post. He criticizes New York State Democrats for passing The Climate Change Superfund Act, which, according to the Attorney General, “imposes liability on energy producers for doing just that — producing energy.” He doesn’t pull any punches, writing:

“The DEC [Department of Environmental Conservation] doesn’t have to find fault. It doesn’t have to file a lawsuit and convince a judge or jury that a particular energy producer caused specific harm to New York.

No, the law declares energy producers to be automatically ‘responsible’ just because politicians say so.

That’s not justice, and it’s not the rule of law.

That’s authoritarian bureaucrats picking winners and losers.

And the losers will be many.”

The Attorney General isn’t exaggerating. It’s the stated aim of the legislation. According to bill proponent New York Governor Kathy Hochul, “This landmark legislation shifts the cost of climate adaptation from everyday New Yorkers to the fossil fuel companies most responsible for the pollution. By creating a Climate Change Adaptation Cost Recovery Program, this law ensures that these companies contribute to the funding of critical infrastructure investments, such as coastal protection and flood mitigation systems, to enhance the climate resilience of communities across the state.”

Attorney General McCuskey and his litigation challenge New York’s authority to require such a landmark redistribution of wealth long after most of the transactions called into question occurred. He writes: “West Virginia can’t tell Idaho potato farmers how to harvest their spuds — and New York can’t tell West Virginia energy companies how to mine coal or extract gas and oil. The Constitution also doesn’t allow states to come up with their own regulatory schemes when the federal government has rules controlling specific conduct, especially in areas of unique federal interest.”

General McCuskey’s suit, West Virginia v. James, is pending as case number 1:25-cv-00168 in the United States District Court Northern District of New York. --- Jason E. Wandling

Scientists Propose Turning Nuclear Waste into Potentially Safer Nuclear Fuel

“Tarnowsky estimates that 55 pounds of tritium has the capacity to power more than 500,000 homes for six months, if used for fusion.”

Why this is important: Since the formation of the sun, nuclear fusion has been the best and most efficient form of nuclear energy. Unfortunately, it is also a process that has never been able to be effectively produced in humanity’s nuclear age – until very recently. Instead, mankind has relied on fusion’s counterpart: fission. One by-product of nuclear fission, however, is potentially dangerous radioactive waste far in excess of the waste that might be produced through fusion technology. This fission waste remains radioactive for potentially thousands of years, creating significant disposal problems for current reactors. Now that commercial fusion technology has reached initial stages of development, the door is opening to this cleaner form of nuclear power that could provide “vast energy supplies.” Fusion is not without significant challenges, however. Chief among these challenges is the need for heavy elements, including tritium, a rare (the U.S. currently produces none) and extremely expensive (approximately $15 million per pound) form of hydrogen. Physicist Terence Tarnowsky, a researcher at Los Alamos National Laboratory, reports that tests conducted at Los Alamos may offer a solution by creating tritium from the waste currently produced at U.S. nuclear power plants through the use of particle accelerators. While success still requires significant further testing and analysis, the option appears promising for future U.S. fusion reactor technology. --- Barry A. Naum

America’s Secret Sauce Powering the Nation’s Energy Revolution: 293 Dams Undergo Rehab

“The success of these dams inspired the construction of hundreds of other hydroelectric dams across the US, harnessing rivers to produce virtually free electricity, control flood and provide irrigation.”

Why this is important: The article highlights that America's dams not only helped contribute to the country's industrial and economic might in the past, but will also be a major factor in the country's energy sector moving forward. Hydropower currently accounts for 27 percent of the country's renewable energy output. Many of the dams throughout the United States produce more energy than nuclear power plants. The benefits of dams, like sustainability and cost-effectiveness, are why they are considered to be critical infrastructure. The dams in the United States have an enormous impact on both the economy and the environment.

Because of these factors, both the federal government and private investment groups are investing in rehabilitating aging dams across the U.S. -- the average age of hydroelectric plants in America is 79 years. The money being poured into the ageing dams is to upgrade safety systems, strengthen dam walls, modernize technology, and improve rivers for the benefit of both aquatic life and kayakers. As reflected in the article, hydroelectric power offers both sustainability and cost-effectiveness, a rare combination among clean energy sources, and with continued investment and modernization, America's dams will remain a cornerstone of the nation's energy future. --- Nicholas A. Muto

Google Pledges More Support for Nuclear-Powered Data Centres

“Google, the Tennessee Valley Authority and Kairos Power have announced a landmark agreement to deploy a next-generation nuclear reactor, with the aim of powering Google’s regional data centres.”

Why this is important: A number of factors are driving a renaissance in nuclear power. Cracks are developing in environmental NGO opposition to nuclear, as it is perhaps the most reliable source of non-fossil fuel energy, at the same time that electricity demand is skyrocketing across the country. Google, Meta, and other data center operators simply can’t rely on intermittent sources of energy like wind and solar, and have been willing to experiment with small modular reactors that might be the long-term solution to their need for large, uninterrupted power supplies. Kairos will be one of the first SMRs to come online, and the power industry is watching closely to see whether it will work and be cost-efficient. --- David L. Yaussy

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.