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More Californians have searched for news about “floods” in 2023 than “wildfires,” which seems in keeping with this summer’s series of out-of-left-field climate disasters. The worst smoke pollution hit … the East Coast. The deadliest wildfire in modern U.S. history leveled … a former wetland in Hawaii. Naturally a hurriquake in Los Angeles and catastrophic flooding in Palm Springs would come next?
But California’s reputation as the land of drought and fire has obscured the fact that extreme flooding is the other player in the state’s deadly climatological triumvirate. From the atmospheric rivers this winter, which caused some 500 mudslides and inflicted as much as $1 billion in damage, to Hurricane Hilary dumping record-breaking rains over the southwestern United States this weekend, floods are understandably top-of-mind (especially with a relatedly somewhat slow start to the state’s fire season).
Here’s what you need to know about the future of extreme floods in the Golden State:
Former Hurricane Hilary was the first tropical storm to make landfall in California in 84 years, easily snapping the practically nonexistent late August daily rainfall records around L.A. In fact, hurricanes making landfall in the lower lefthand corner of the U.S. is so rare that there isn’t actually much of a data record for scientists to use as a point of comparison, Inside Climate News reports — which makes forming future projections and establishing links to climate change actually rather difficult.
What we do know is this: California has largely avoided hurricanes in the past due to the generally cold waters off its coast, which NBC News describes as acting as a sort of “shield” for the state. Hurricanes get their strength and moisture by forming over warm waters, and the eastern Pacific has historically been as much as 9 degrees cooler than the same latitude in the Gulf of Mexico.
But California’s shield has a crack. July was the hottest recorded month on planet Earth and the waters Hilary passed over on its journey north were 4 degrees warmer than usual, the Los Angeles Times explains. Sure enough, research shows that hurricane landfalls in the eastern Pacific could increase dramatically along with global and oceanic warming — bringing more rain and floods along with them.
There are certain conditions that made Hilary particularly unusual, however: A heat dome that formed over the central United States, for example, helped tug the storm directly over California, as opposed to a more typical path of a hurricane or tropical storm being pushed out to sea by easterly winds off the continent. So while hurricanes might be more intense and wet in the future, they won’t necessarily continue to make it over to California the way Hilary has.
Yes, to some extent. In addition to greenhouse gas emissions making the oceans warmer, the weather pattern called El Niño is likely responsible for some of the warming of the waters off of Baja California, which intensified Hurricane Hilary. But again, there were also unique conditions that contributed to Hilary’s unusual path over the southwestern United States, including the prevailing wind patterns. Strong El Niño years, as a result, don’t necessarily mean more hurricanes for Southern California.
El Niños have tended to bring higher winter rainfalls to Southern California, though that is also not necessarily a guarantee. NOAA’s outlook for the coming winter doesn’t currently show above-average precipitation expected for the state. Some El Niño years are actually drier than average, which goes to show that “El Niño is just one hand on the atmospheric steering wheel,” Weather Underground writes.
California isn’t a land of droughts or floods — it’s a land of both. A better way to think about the future of weather in the state is as one of extremes.
That’s because, “[i]n a seeming paradox, drought and flooding are two sides of one coin,” Governing explains. “A warmer atmosphere can hold more water, and higher temperatures cause more water on the Earth’s surface to evaporate. This can result in bigger rainstorms.”
The good news is, most of California is now free of drought conditions and this year’s fire season has been quieter because of all the wet vegetation. But while Tropical Storm Hilary apparently only inflicted minor damage and no known deaths this weekend, floods have been a devastating fixture of life in the Golden State before and they will be again.
As Yale Climate Solutions warned earlier this year, “Given the increased risk [due to climate change], it is more likely than not that many of you reading this will see a California megaflood costing tens of billions in your lifetime.”
California doesn’t need 40 days and nights of rain to experience its worst-case flood event, researchers have found. If a 30-day rainstorm similar to one that hit the then-unpopulous state in 1862 were to strike again today, it could potentially be a $1 trillion disaster — “larger than any in world history” — UCLA’s “ARkStorm 2.0” scenario modeling found last year.
“Every major population center in California would get hit at once — probably parts of Nevada and other adjacent states, too,” Daniel Swain, a UCLA climate scientist and co-author of the paper, said in a statement at the time.
Unlike a tropical storm, which passes in a number of days, the ARkStorm flood event would last a month in the form of sequential atmospheric rivers, like the kind that battered the state this past winter. The link between climate change and heavy precipitation is well understood, and the researchers found that “climate change has already doubled the likelihood of such an extreme storm scenario,” with “further large increases in ‘megastorm’ risk … likely with each additional degree of global warming this century.”
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Utilities are bending over backward to convince even their own investors that ratepayers won’t be on the hook for the cost of AI.
Utilities want you to know how little data centers will cost anyone.
With electricity prices rising faster than inflation and public backlash against data centers brewing, developers and the utilities that serve them are trying to convince the public that increasing numbers of gargantuan new projects won’t lead to higher bills. Case in point is the latest project from OpenAI’s Stargate, a $7-plus-billion, more-than-1-gigawatt data center due to be built outside Detroit.
The project was announced Thursday by Michigan Governor Gretchen Whitmer, who focused heavily on the projected economic benefits of the projects while attempting to head off criticism that it would lead to higher costs. In the first sentence of her press release, she said that the project will “create more than 2,500 union construction jobs, more than 450 jobs on site and 1,500 more across the county.” Also, it “will be one of the most advanced AI infrastructure facilities in the U.S., especially when it comes to its efficient use of land, water, and power.” Oh, and it “will not require any additional power generation to operate.”
The utility set to power the project, DTE Energy, released its quarterly earnings Thursday, as well, which described a 1.4-gigawatt project it had already executed. In a presentation for analysts and investors, DTE said that the new data center would pay for “required storage through a 15-year energy storage contract,” and that it would “support affordability for existing customers as excess capacity is sold.”
On a call with analysts, DTE Energy chief executive Joi Harris further asserted that the project has “meaningful affordability benefits to our existing customers.” As the data center ramps up, she explained, it can use existing excess capacity on the grid. By the time it reaches full strength, it will enjoy the benefits of “nearly $2 billion of incremental energy storage investments and additional tolling agreements to support this data center load.”
Who will pay for energy storage and tolling agreements? A DTE spokesperson, Jill Wilmot, clarified in an email that “DTE will meet the 1.4 gigawatts of demand from the data center with existing capacity,” and that “new energy storage will be built — and paid for by the customer” — that is, Stargate — “to help augment times of peak demand, ensuring continued reliability for all customers.”
Data centers help spread out the fixed costs of the grid more widely, Wilmot went on. “Data center development in DTE’s electric service territory will not increase customer rates,” she said, adding that “DTE is ensuring the data center will absorb all new costs required to serve them — in this case, battery storage. Our customers will not pay.”
That said, Wilmot did not answer a question about whether there would be any network or transmission upgrades necessary. She told me that she expected DTE would make a filing for the project with Michigan regulators later Friday.
Consumer advocates were skeptical of the utility’s claims. “When you are talking about new demand as massive as what would be created by this data center, we can’t afford to just take DTE at its word that other customers won’t be affected,” Amy Bandyk, the executive director of the Citizens Utility Board of Michigan, told me in an email. She called for Michigan regulators “to require DTE and the data center customer to agree on a tariff specific to that customer that includes robust protections against cost-shifting and provisions that any incremental costs will be solely covered by this new customer.”
More utilities and data center developers are trying to explicitly head off claims that data centers are driving up electricity rates. In another recent data center announcement for a multi-billion-dollar project in West Memphis, Arkansas, Google and the Arkansas Economic Development Commission said that “Google will be covering the full energy costs for the West Memphis facility and will be ramping up new solar energy and battery storage resources for the facility.”
Drew Marsh, the chief executive of Entergy, the utility serving the project, confirmed on an earnings call earlier this week that Google “will protect energy affordability for existing customers by covering the full cost of powering the data center in West Memphis.” He also said that in Mississippi, where Amazon has announced a $16 billion project, “customer rates would be 16% lower than they otherwise would have been due to these large customers.”
So why are utilities — which, after all, get paid by ratepayers for the investments they make in their systems — telling their investors about all the money they’re not charging ratepayers?
In short, utilities and developers know they’re on political thin ice, and they don’t want to kill the golden goose of data center development by stoking a populist backlash to rising electricity prices that could result in either government-mandated slashing of their investment plans, caps on the rates they can charge, or both.
“Looking ahead, we anticipate the central issue will be how utilities protect residential customers from costs associated with large-load customers, or else face potential consequences from regulators,” Mizuho analyst Anthony Crowdell said in a note to clients earlier this week. “Data centers, and their associated load, have the potential” to “cause political push-back.”
This is already happening across the country. The frontrunner in the New Jersey gubernatorial race, Democrat Mikie Sherrill, for example, has promised to freeze electricity rates, which have seen a sharp runup in recent years. Indiana Governor Mike Braun, a Republican, said in a recent statement that “we can’t take it anymore,” in reference to rate hikes. Indiana has also rejected a number of proposed data centers, as I covered earlier this year.
This means that utilities will have to think carefully about how and to whom they allocate costs arising from data center development and operation.
“Allocation of cost will be pivotal as the current ’pocketbook issues driving a lot of the U.S. political debate could create some challenging regulatory outcomes should data centers put pressure on customer bills,” Crowdell wrote.
But what’s said in an announcement to the media or to investors may not always reflect the reality of utility cost allocation, Harvard Law School professor Ari Peskoe told me.
“Don’t trust a utility press release or comment from a CEO of a monopoly that says Hey, these rates are good for you,” he told me.
Peskoe told me to pay close attention to the regulatory fillings utilities make for their data center projects, not just what they tell the press or investors. “Are the utilities themselves actually making these claims as strongly as their CEOs are making them in investor calls? And then once we do have a regulatory process about it, are they being transparent in that regulatory process? Are they hiding a lot of details behind the confidentiality claims so that only the participants in that proceeding actually get to see the details?”
Peskoe also pointed to other costs that might be incurred in the course of data center development that get socialized across the rate base but aren’t necessarily directly tied to any one development, like the transmission and network upgrades, that have contributed to large price increases in the PJM Interconnection territory.
“What you’re looking for is a firm contract that ensures the data center is going to be paying for every penny that the utility is incurring to provide service, so that it’s paying for all the new infrastructure that’s serving it,” Peskoe said. Without that, all you have is a press release.
The state formerly led by Interior Secretary Doug Burgum does not have a history of rejecting wind farms – which makes some recent difficulties especially noteworthy.
A wind farm in North Dakota – the former home of Interior Secretary Doug Burgum – is becoming a bellwether for the future of the sector in one of the most popular states for wind development.
At issue is Allete’s Longspur project, which would see 45 turbines span hundreds of acres in Morton County, west of Bismarck, the rural state’s most populous city.
Sited amid two already operating wind farms, the project will feed power not only to North Dakotans but also to Minnesotans, who, in the view of Allete, lack the style of open plains perfect for wind farms found in the Dakotas. Allete subsidiary Minnesota Power announced Longspur in August and is aiming to build and operate it by 2027, in time to qualify for clean electricity tax benefits under a hastened phase-out of the Inflation Reduction Act.
On paper, this sounds achievable. North Dakota is one of the nation’s largest producers of wind-generated power and not uncoincidentally boasts some of cheapest electricity in the country at a time when energy prices have become a potent political issue. Wind project rejections have happened, but they’ve been rare.
Yet last week, zoning officials in Morton County bucked the state’s wind-friendly reputation and voted to reject Longspur after more than an hour of testimony from rural residents who said they’d had enough wind development – and that officials should finish the job Donald Trump and Doug Burgum started.
Across the board, people who spoke were neighbors of existing wind projects and, if built, Longspur. It wasn’t that they didn’t want any wind turbines – or “windmills,” as they called them, echoing Trump’s nomenclature. But they didn’t want more of them. After hearing from the residents, zoning commission chair Jesse Kist came out against the project and suggested the county may have had enough wind development for now.
“I look at the area on this map and it is plum full of wind turbines, at this point,” Kist said, referencing a map where the project would be situated. “And we have a room full of people and we heard only from landowners, homeowners in opposition. Nobody in favor.”
This was a first for the county, zoning staff said, as public comment periods weren’t previously even considered necessary for a wind project. Opposition had never shown up like this before. This wasn’t lost on Andy Zachmeier, a county commissioner who also sits on the zoning panel, who confessed during the hearing that the county was approaching the point of overcrowding. “Sooner or later, when is too many enough?” he asked.
Zachmeier was ultimately one of the two officials on the commission to vote against rejecting Longspur. He told me he was looking to Burgum for a signal.
“The Green New Deal – I don’t have to like it but it’s there,” he said. “Governor Burgum is now our interior secretary. There’s been no press conferences by him telling the president to change the Green New Deal.” Zachmeier said it was not the county’s place to stop the project, but rather that it was up to the state government, a body Burgum once led. “That’s probably going to have to be a legislative question. There’s been nothing brought forward where the county can say, We’ve been inundated and we’ve had enough,” he told me.
The county commission oversees the zoning body, and on Wednesday, Zachmeier and his colleagues voted to deny Longspur’s rejection and requested that zoning officials reconsider whether the denial was a good idea, or even legally possible. Unlike at the hearing last week, landowners whose property includes the wind project area called for it to proceed, pointing to the monetary benefits its construction would provide them.
“We appreciate the strong support demonstrated by landowners at the recent Commission meeting,” Allete’s corporate communications director Amy Rutledge told me in an email. “This region of North Dakota combines exceptional wind resources, reliable electric transmission infrastructure, and a strong tradition of coexisting seamlessly with farming and ranching activities.”
I personally doubt that will be the end of Longspur’s problems before the zoning board, and I suspect this county will eventually restrict or even ban future wind projects. Morton County’s profile for renewables development is difficult, to say the least; Heatmap Pro’s modeling gives the county an opposition risk score of 92 because it’s a relatively affluent agricultural community with a proclivity for cultural conservatism – precisely the kind of bent that can be easily swayed by rhetoric from Trump and his appointees.
Morton County also has a proclivity for targeting advanced tech-focused industrial development. Not only have county officials instituted a moratorium on direct air capture facilities, they’ve also banned future data center and cryptocurrency mining projects.
Neighboring counties have also restricted some forms of wind energy infrastructure. McClean County to the north, for example, has instituted a mandatory wind turbine setback from the Missouri River, and Stark County to the west has a 2,000-foot property setback from homes and public buildings.
In other words, so goes Burgum, may go North Dakota? I suppose we’ll find out.
And more of the week’s top news about renewable energy conflicts.
1. Staten Island, New York – New York’s largest battery project, Swiftsure, is dead after fervent opposition from locals in what would’ve been its host community, Staten Island.
2. Barren County, Kentucky – Do you remember Wood Duck, the solar farm being fought by the National Park Service? Geenex, the solar developer, claims the Park Service has actually given it the all-clear.
3. Near Moss Landing, California – Two different communities near the now-infamous Moss Landing battery site are pressing for more restrictions on storage projects.
4. Navajo County, Arizona – If good news is what you’re seeking, this Arizona county just approved a large solar project, indicating this state still has sunny prospects for utility-scale development depending on where you go.
5. Gillespie County, Texas – Meanwhile out in Texas, this county is getting aggressive in its attempts to kill a battery storage project.
6. Clinton County, Iowa – This county just extended its moratorium on wind development until at least the end of the year as it drafts a restrictive ordinance.