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AM Briefing

Trump Orders Colorado River Water Cuts on Arizona, California, and Nevada

On steel, uranium, and roof tiles

Lake Powell.
Heatmap Illustration/Getty Images

Current conditions: Tropical Storm Moke sideswiped Hawaii yesterday just weeks after a weakened Hurricane Lala became the first major storm to hit the Big Island in decades • On the western fringe of the United States’ Pacific borders, Typhoon Saudel struck Guam and the Northern Mariana Islands over the weekend, bringing heavy rain and flooding • Temperatures in Khorramshahr, on Iran’s border with Iraq, are topping 118 degrees Fahrenheit, rendering the southwestern port city the hottest place on Earth.


THE TOP FIVE

1. Trump administration orders Arizona, California, and Nevada to cut water use

With water levels in reservoirs across the American West at record lows, the Trump administration has directed Arizona, California, and Nevada to cut back on how much water they use from the Colorado River over the next two years. On Friday, the Department of the Interior imposed the reductions via a series of documents detailing a two-year and a 10-year plan to salvage the supplies from the drought-stricken river fed by snowmelt from Colorado’s stretch of the Rocky Mountains. As climate change has shifted snow patterns, levels on the river have dropped. Yet the seven states that depend on the water — the aforementioned three in the Lower Basin, and Colorado, New Mexico, Utah, and Wyoming in the Upper Basin — could not come to agreement among themselves on how to divvy up the dwindling supply. Instead, the Interior Department came up with a proposal that forced the Lower Basin states to pare back first. As you may recall, Arizona’s Democratic governor called the cuts “draconian” when the administration released its proposal in early August. The plan, which imposes short-term cuts while leaving a larger split for later, sets the stage for what E&E News predicted would be “a behemoth legal fight.”

2. Energy Department redirects $500 million for green steel to upgrading a coal-fired blast furnace

When the Department of Energy announced a review last year of droves of grants the Biden administration had given for clean industrial projects, the nation’s leading green steel project appeared on the chopping block. Cleveland-Cliffs, the steel giant based in Vice President JD Vance’s hometown in Ohio, said it was renegotiating the $500 million grant that was supposed to fund construction of a modern, integrated mill that could increase U.S. steel production and allow the country to compete with China in selling lower-carbon material to Europe. More than a year later, the deal has finally been renegotiated. As expected, the money will now go instead toward upgrading a coal-fired blast furnace at the Middletown Works plant, Canary Media reported on Friday. Never mind the fact that Congress promulgated the money specifically for lower-carbon steel, making the shift “possibly illegal,” as my colleague Emily Pontecorvo reported last year.

3. Congestion costs on largest U.S. grid spike by nearly half

Congestion costs on PJM Interconnection skyrocketed 43% to $6 billion during the first half of this year, up from $2.1 billion during the same period of 2025. That’s according to the grid’s independent watchdog, which last week warned that bottlenecks on high-voltage transmission lines during high-stress events such as storms or heat waves were now what Reuters put bluntly as “the single biggest driver of the increase in soaring wholesale electricity costs.” Across the U.S., July’s electricity bills were, in the frank words of Heatmap’s Matthew Zeitlin, “higher than ever.”

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4. America’s nuclear fuel supply chain is forming anew

Last week, the uranium miner Ur-Energy sent the first shipment from its mine in Wyoming, World Nuclear News reported Friday. That same day, the American subsidiary of the European uranium giant Urenco broke ground on its latest facility in the U.S., NucNet reported. Downstream, meanwhile, Standard Nuclear — a fuel manufacturer specializing in extra-expensive but extra-safe ceramic-coated fuel pellets called TRISO, which I have written about previously— just cut another deal with a major vendor.

5. Tesla abandons solar roof tiles

I have a confession. Nearly a decade ago, I sat at my sister’s kitchen counter in Massachusetts after she gave birth to my niece, trying to write about the latest technology to come out from Tesla. Not yet burdened by its billionaire chief executive’s political baggage, the company was largely seen at the time as subverting preconceptions about the popularity of electric vehicles. Tesla’s erstwhile absorption of Musk’s former solar manufacturer, Solar City, only cemented the company’s status as an industry leader in producing and deploying panels domestically. The conventional wisdom, at least among some industry analysts at the time, was that any bet against Tesla was an ill-advised gamble against the lucky Mr. Musk. So, I wrote about it as a breakthrough. But the solar-generating roof tiles the company unveiled that fall when I was in New England turned out to be little more than a passing fantasy. Now Electrek has reported that the company plans to discontinue the product.

THE KICKER

And I said, dam. Egyptian Cabinet/Handout/Anadolu via Getty Images

Say what you will about Spain’s solar records or America’s gas surge, nothing quite matches the enormous surge of power that is a new hydroelectric station. This week, Tanzania christened its largest-ever hydroelectric station, the Julius Nyerere Hydropower Dam, named for the country’s revolutionary first prime minister after independence. Mwananchi, the country’s largest newspaper, said the plant’s launch “opened a new chapter in Tanzania’s energy sector.”

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AM Briefing

Atomic Prime

On Fervo’s milestone, a long-duration storage bonanza, and Solar-for-All

An Amazon building.
Heatmap Illustration/Getty Images

Current conditions: Thick fog in South Carolina caused a 50-car pileup on Interstate-95 in which dozens were injured • Tropical Storm Choi-wan was upgraded to “severe” status as the cyclone tracks north of the Northern Mariana Islands toward Japan’s remote Ogasawara archipelago • In the Atlantic, Tropical Storm Hanna is moving northeast toward the Azores, but may weaken before hitting the Portuguese islands.


THE TOP FIVE

1. Yet another hyperscaler invests in large existing nuclear

Almost exactly two years ago, nuclear energy had its Big Tech glow-up. Amazon took an equity stake in X-energy, a developer of helium-cooled small modular reactors. Google invested in Kairos Power, another fourth-generation SMR designer that uses molten salt as a coolant. Microsoft, meanwhile, agreed to pay $16 billion to restart the functioning reactor at Constellation Energy’s Crane Clean Energy Center, formerly known as Three Mile Island. With electricity demand now surging, however, hyperscalers are increasingly following the more conservative Microsoft playbook. Google, as I previously told you, backed plans to bring Iowa’s lone nuclear plant, NextEra Energy’s Duane Arnold station, online again. Facebook-owner Meta — in addition to investments in two next-generation reactor companies, Oklo and TerraPower — inked a deal to buy nuclear electricity from two of utility Vistra’s plants in Ohio and Pennsylvania for the next 20 years.

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Podcast

Governor Mikie Sherrill on Electricity Prices, Nuclear Power, and Building in New Jersey

Matthew Zeitlin talks with the New Jersey leader at Heatmap House at New York Climate Week.

Mikie Sherrill.
Heatmap Illustration/Luke Liu

Governor Mikie Sherrill is a former Navy pilot, federal prosecutor, and a member of the U.S. House of Representatives. She was elected New Jersey's governor in November 2025 in a campaign dominated by the state’s surging electricity prices.

For this episode of Shift Key, Governor Sherrill joined Heatmap correspondent Matthew Zeitlin for a live conversation at our Heatmap House event, part of New York Climate Week. She reflected on electricity inflation, power markets, and what a data center developer would need to do to build in New Jersey.

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Mikie Sherrill.
Heatmap Illustration/Luke Liu

This transcript has been automatically generated.

Subscribe to “Shift Key” and find this episode on Apple Podcasts, Spotify, Amazon, YouTube, or wherever you get your podcasts.

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