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Will America’s luck hold in 2024? The oddsmakers — that is, scientists — have a bad feeling.

Are you feeling lucky?
Americans are. Close to two-thirds say they’ve gambled in the past year; the sports pages are filled with headlines detailing the fallout of various investigations and scandals. But while there isn’t exactly a bookmaker for something like the Atlantic hurricane season, meteorologists around the country are feeling pretty good about their bets this time around.
“We could be extremely wrong and only have two hurricanes,” Philip Klotzbach, one of the authors of the Colorado State University’s 2024 forecast, which came out earlier this month and predicted a whopping 23 named storms, told me. “But I think the odds of that this year are very low, just because the Atlantic is so warm.”
Traditionally, early spring is when Americans begin to hear from agencies and universities about the upcoming Atlantic storm season. That won’t peak for another four or five months, and from the safety of April, it can be tough to muster concern about what late summer might yet inflict upon the nation’s coasts.
Still, the trickle of headlines this year has been nothing short of alarming. In addition to CSU’s prediction, North Carolina State University issued a forecast of between 15 and 20 named storms in 2024, meaning we could potentially tick well above the 1991-2020 average of 14 per year. On Wednesday, the Weather Channel upped the ante with a new estimate of 24 named storms. AccuWeather Lead Hurricane Forecaster Alex DaSilva told me his team estimates there is a 15% chance of 30 or more named storms this year — enough to break the record set in 2020 and exhaust the World Meteorological Organization pre-prepared list of 21 storm names, forcing it to dip into its new and never-before-used “supplemental” list.
Meanwhile, the National Oceanic and Atmospheric Administration is busy putting together its own forecast, a massive, multi-agency collaboration between the National Climate Prediction Center, the National Weather Service, the National Hurricane Center, and NOAA’s Atlantic Oceanographic & Meteorological Laboratory. While the government’s final prediction is still a few weeks away from being made public in May, Matthew Rosencrans, the lead hurricane season forecaster at NOAA’s Climate Prediction Center, told me the agency’s ocean team has been providing monthly briefings on the Atlantic’s record warmth to the forecasters. Of particular concern to the teams is the fact that even if the summer sea surface warms at the lowest rate of any year since 1980, 2024 will still be in the top four of all sea surface temperature years since then.
Michael Lowry, the hurricane and storm surge specialist at Miami’s WPLG Local 10 News, told me this is what has him the most alarmed. “I struggle to find a good language to say how extreme and unprecedented it is, but it’s extreme and unprecedented and almost scary, the amount of warmth that we’re looking at in the Atlantic,” he said.
Warm water, of course, is hurricane Red Bull — it can increase a storm’s destructive potential, taking forecasters by surprise. In addition to the waning El Niño and the likely start of a La Niña — which will make the wind conditions more favorable to Atlantic storm formation — all the agencies I spoke with cited the sea-surface temperatures as a concerning complication in their predictive models. Klotzbach, the CSU researcher, told me the record-warm water gives him more confidence in his models than he would otherwise have this early in April because of the strong correlation between warm waters and storm formation; DaSilva, at AccuWeather, told me it is these same temperatures that have made him concerned about the potential for rapidly intensifying storms like Hurricane Ian in 2022.
Kerry Emanuel, professor emeritus in atmospheric science at MIT, was not as impressed by the predictions, however. Putting a numerical estimate on how many hurricanes will form in the North Atlantic in a given season is “not really very interesting or practical,” he told me. “If you’re a gambler, and you’re placing a bet, OK — but if you’re a coastal resident, what you really care about is relatively intense landfalling storms.”
The more storms there are in the Atlantic in a given season, the more likely intense storms will make landfall — “but not a lot” more likely, Emanuel stressed. Because of that, when it comes to making hurricane season predictions, “I wish NOAA would knock it off because it’s intentionally misleading,” he said.
Emanuel wasn’t alone in his dismissal of the seasonal forecasts. “I’ve got to be straight with you: I think they have limited utility,” John Cangialosi, a senior hurricane specialist at the National Hurricane Center, who focuses more on tracking storms as they form, told me. “It’s sort of like in Powerball, when someone sees $30 million and is like, ‘I’m going to play if it’s $5 million or not,’” he added. “It’s so damn silly. You need to worry about this no matter what.”
That’s because describing hurricane seasons as “quiet” or “active” is really a matter of perspective, even if it makes for good headlines. For example, most people consider 2023 to have been a quiet year since almost no major storms made landfall on U.S. coasts. “But it was a very busy season; just fortunately, most of the storms stayed out at sea,” Klotzbach, of CSU, told me.
In a sense, America merely got a lucky break. While Hurricane Idalia, the strongest storm to hit Florida’s Big Bend region in 125 years, made landfall in 2023, its greatest impact was in a sparsely populated area, leading to limited damage and loss of life. On the other hand, 1992 was technically a “quiet” year for hurricane formation, but all it took was one storm — in that case, Hurricane Andrew, which killed over 60 people and was one of the costliest storms in U.S. history — to cement it in our collective memory.
Further complicating the picture that hurricane forecasts paint is, of course, climate change. The combination of record-warm Atlantic waters and a forecast for an active year makes it tempting to tie the two together. “The human mind is so good at pattern recognition that it wants to attribute a cause to every effect,” Emanuel, the MIT professor, said.
But there’s a whole cocktail of factors driving the Atlantic’s bonkers-warm temperature, including the aforementioned El Niño, which is just part of a naturally occurring global weather pattern known as ENSO; the decreasing presence of sulfur dioxide aerosols, which have a cooling effect; the Tonga volcano eruption, which might have had a temporary warming effect; and yes, greenhouse gas emissions. The lack of clarity around this larger picture has led some researchers to sound an alarm about the urgency of sharpening our understanding; climate change, however, can only confidently be credited with a small portion of the current anomalous spike in sea surface temperatures, which in turn only explains only about 35% to 40% of the changes in tropical cyclone activity.
“It’s not fair to say climate change has caused record warmth, which has caused record hurricanes,” Cangialosi, at the Climate Prediction Center, said. “Because, guess what? Next year we could be in a cool phase — and then where did climate change go?”
That’s far from saying climate change isn’t a factor at all; we just need to be careful with our scales. Besides, there are things we know are directly connected to climate change — like rising sea levels and increased rainfall — that will make hurricane landfalls deadlier in the coming decades.
Hurricane forecasts aren’t totally useless, either. For one thing, they have enormous scientific value, helping researchers better understand the amalgamation of conditions that go into the formation of a major tropical storm. Lowry, the Florida-based meteorologist, also joked they can help confirm that “my job may be a lot busier in the next few months.”
There is a public value, too: Headlines inarguably help keep the approaching season top-of-mind. This is especially important for the masses of new residents who have recently moved to the Gulf Coast and Southeastern shores — undeterred by subsidized insurance rates that don’t properly warn of the region’s risk — and might lack knowledge of how to prepare for the season.
After all, Mother Nature ultimately has the house advantage. And while America was spared a catastrophic storm in 2023, luck has a funny way of running out.
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The cost crisis in PJM Interconnection has transcended partisan politics.
If “war is too important to be left to the generals,” as the French statesman Georges Clemenceau said, then electricity policy may be too important to be left up to the regional transmission organizations.
Years of discontent with PJM Interconnection, the 13-state regional transmission organization that serves around 67 million people, has culminated in an unprecedented commandeering of the system’s processes and procedures by the White House, in alliance with governors within the grid’s service area.
An unlikely coalition including Secretary of Energy Chris Wright, Secretary of the Interior Doug Burgum, and the governors of Indiana, Ohio, Virginia, West Virginia, and Tennessee (Republicans), plus the governors of Maryland, Kentucky, Pennsylvania, Delaware, Illinois, Michigan, New Jersey, and North Carolina (Democrats) — i.e. all 13 states of PJM — signed a “Statement of Principles” Friday demanding extensive actions and reforms to bring new generation onto the grid while protecting consumers.
The plan envisions procuring $15 billion of new generation in the region with “revenue certainty” coming from data centers, “whether they show up and use the power or not,” according to a Department of Energy fact sheet. This would occur through what’s known as a “reliability backstop auction,” The DOE described this as a “an emergency procurement auction,” outside of the regular capacity auction where generation gets paid to be available on the grid when needed. The backstop auction would be for new generation to be built and to serve the PJM grid with payments spreading out over 15 years.
“We’re in totally uncharted waters here,” Jon Gordon, director of the clean energy trade group Advanced Energy United, told me, referring to the degree of direction elected officials are attempting to apply to PJM’s processes.
“‘Unprecedented,’ I feel, is a word that has lost all meaning. But I do think this is unprecedented,” Abraham Silverman, a Johns Hopkins University scholar who previously served as the New Jersey Board of Public Utilities’ general counsel, told me.
“In some ways, the biggest deal here is that they got 13 governors and the Trump administration to agree to something,” Silverman said. “I just don't think there's that many things that [Ohio] Governor [Mike] DeWine and or [Indiana] Governor [Mike] Braun agree with [Maryland] Governor [Wes] Moore.”
This document is “the death of the idea that PJM could govern itself,” Silverman told me. “PJM governors have had a real hands off approach to PJM since we transitioned into these market structures that we have now. And I think there was a real sense that the technocrats are in charge now, the governors can kind of step back and leave the PJM wrangling to the public service commissions.”
Those days are over.
The plan from the states and the White House would also seek to maintain price caps in capacity auctions, which Pennsylvania Governor Josh Shapiro had previously obtained through a settlement. The statement envisions a reliability auction for generators to be held by September of this year, and requested that PJM make the necessary filings “expeditiously.”
Shapiro’s office said in a statement that the caps being maintained was a condition of his participation in the agreement, and that the cost limit had already saved consumers over $18 billion.
The Statement of Principles is clear that the costs of new generation procured in the auction should be allocated to data centers that have not “self-procured new capacity or agreed to be curtailable,” a reference to the increasingly popular idea that data centers can avoid increasing the peak demand on the system by reducing their power usage when the grid is stressed.
The dealmaking seems to have sidestepped PJM entirely, with a PJM spokesperson noting to Bloomberg Thursday evening that its representatives “ were not invited to the event they are apparently having” at the White House. PJM also told Politico that it wasn’t involved in the process.
“PJM is reviewing the principles set forth by the White House and governors,” the grid operator said in a statement to Heatmap.
PJM also said that it would be releasing its own long-gestating proposal to reform rules for large load interconnection, on which it failed to achieve consensus among its membership in November, on Friday.
“The Board has been deliberating on this issue since the end of that stakeholder process. We will work with our stakeholders to assess how the White House directive aligns with the Board’s decision,” the statement said.
The type of “backstop procurement” envisioned by the Statement of Principles sits outside of PJM’s capacity auctions, Jefferies analysts wrote in a note to clients, and “has been increasingly inevitable for months,” the note said.
While the top-down steering is precedent-breaking, any procurement within PJM will have to follow the grid’s existing protocols, which means submitting a plan and seeking signoff from the Federal Energy Regulatory Commission, Gordon told me. “Everything PJM does is guided by their tariffs and their manuals,” he said. “They follow those very closely.”
The governors of the PJM states have been increasingly vocal about how PJM operates, however, presaging today’s announcement. “Nobody really cared about PJM — or even knew what they PJM was or what they did — until electric prices reached a point where they became a political lightning rod,” Gordon said.
The Statement is also consistent with a flurry of announcements and policies issued by state governments, utility regulators, technology companies, and the White House this year coalescing around the principle that data centers should pay for their power such that they do not increase costs for existing users of the electricity system.
Grid Strategies President Rob Gramlich issued a statement saying that “the principle of new large loads paying their fair share is gaining consensus across states, industry groups, and political parties. The rules that have been in place for years did not ensure that.”
This $15 billion could bring on around 5.5 gigawatts of new capacity, according to calculations done by Jefferies. That figure would come close to the 6.6 gigawatts PJM fell short of its target reserve margin after its last capacity auction, conducted in December.
That auction hit the negotiated price caps and occasioned fierce criticism for how PJM manages its capacity markets. Several commissioners of the Federal Energy Regulatory Commission have criticized PJM for its high capacity prices, low reserve margin, and struggles bringing on new generation. PJM’s Independent Market Monitor has estimated that planned and existing data center construction has added over $23 billion in costs to the system.
Several trade and advocacy groups pointed out, however, that a new auction does not fix PJM’s interconnection issues, which have become a major barrier to getting new resources, especially batteries, onto the grid in the PJM region. “The line for energy projects to connect to the power grid in the Mid-Atlantic has basically had a ‘closed for maintenance’ sign up for nearly four years now, and this proposal does nothing to fix that — or any of the other market and planning reforms that are long overdue,” AEU said in a statement.
The Statement of Principles includes some language on interconnection, asking PJM to “commit to rapidly deploying broader interconnection improvements” and to “achieving meaningful reductions in interconnection timelines,” but this language largely echoes what FERC has been saying since at least its Order No. 2023, which took effect over two years ago.
Climate advocacy group Evergreen Action issued a statement signed by Deputy Director of State Action Julia Kortrey, saying that “without fixing PJM’s broken interconnection process and allowing ready-to-build clean energy resources onto the grid, this deal could amount to little more than a band aid over a mortal wound.”
The administration’s language was predictably hostile to renewables and supportive of fossil fuels, blasting PJM for “misguided policies favored intermittent energy resources” and its “reliance on variable generation resources.” PJM has in fact acted to keep coal plants in its territory running, and has for years warned that “retirements are at risk of outpacing the construction of new resources,” as a PJM whitepaper put it in 2023.
There was a predictable partisan divide at the White House event around generation, with Interior Secretary Burgum blaming a renewables “fairy tale” for PJM’s travails. In a DOE statement, Burgum said “For too long, the Green New Scam has left Mid-Atlantic families in the dark with skyrocketing bills.”
Shapiro shot back that “anyone who stands up here and says we need one and not the other doesn’t have a comprehensive, smart energy dominance strategy — to use your word — that is going to ultimately create jobs, create more freedom and create more opportunity.”
While the partisan culture war over generation may never end, today’s announcement was more notable for the agreement it cemented.
“There is an emerging consensus that the political realities of operating a data center in this day and age means that you have to do it in a way that isn't perceived as big tech outsourcing its electric bill to grandma,” Silverman said.
Editor’s note: This article originally misidentified the political affiliation of the governor of Kentucky. It’s been corrected. We regret the error.
“Additionality” is back.
You may remember “additionality” from such debates as, “How should we structure the hydrogen tax credit?”
Well, it’s back, this time around Meta’s massive investment in nuclear power.
On January 9, the hyperscaler announced that it would be continuing to invest in the nuclear business. The announcement went far beyond its deal last year to buy power from a single existing plant in Illinois and embraced a smorgasbord of financial and operational approaches to nukes. Meta will buy the output for 20 years from two nuclear plants in Ohio, it said, including additional power from increased capacity that will be installed at the plants (as well as additional power from a nuclear plant in Pennsylvania), plus work on developing new, so-far commercially unproven designs from nuclear startups Oklo and TerraPower. All told, this could add up to 6.6 gigawatts of clean, firm power.
Sounds good, right?
Well, the question is how exactly to count that power. Over 2 gigawatts of that capacity is already on the grid from the two existing power plants, operated by Vistra. There will also be an “additional 433 megawatts of combined power output increases” from the existing power plants, known as “uprates,” Vistra said, plus another 3 gigawatts at least from the TerraPower and Oklo projects, which are aiming to come online in the 2030s
Princeton professor and Heatmap contributor Jesse Jenkins cried foul in a series of posts on X and LinkedIn responding to the deal, describing it as “DEEPLY PROBLEMATIC.”
“Additionality” means that new demand should be met with new supply from renewable or clean power. Assuming that Meta wants to use that power to serve additional new demand from data centers, Jenkins argued that “the purchase of 2.1 gigawatts of power … from two EXISTING nuclear power plants … will do nothing but increase emissions AND electricity rates” for customers in the area who are “already grappling with huge bill increases, all while establishing a very dangerous precedent for the whole industry.”
Data center demand is already driving up electricity prices — especially in the area where Meta is signing these deals. Customers in the PJM Interconnection electricity grid, which includes Ohio, have paid $47 billion to ensure they have reliable power over the grid operator’s last three capacity auctions. At least $23 billion of that is attributable to data center usage, according to the market’s independent monitor.
“When a huge gigawatt-scale data center connects to the grid,” Jenkins wrote, “it's like connecting a whole new city, akin to plopping down a Pittsburgh or even Chicago. If you add massive new demand WITHOUT paying for enough new supply to meet that growth, power prices spike! It's the simple law of supply & demand.”
And Meta is investing heavily in data centers within the PJM service area, including its Prometheus “supercluster” in New Albany, Ohio. The company called out this facility in its latest announcement, saying that the suite of projects “will deliver power to the grids that support our operations, including our Prometheus supercluster in New Albany, Ohio.”
The Ohio project has been in the news before and is planning on using 400 megawatts of behind-the-meter gas power. The Ohio Power Siting Board approved 200 megawatts of new gas-fired generation in June.
This is the crux of the issue for Jenkins: “Data centers must pay directly for enough NEW electricity capacity and energy to meet their round-the-clock needs,” he wrote. This power should be clean, both to mitigate the emissions impact of new demand and to meet the goals of hyperscalers, including Meta, to run on 100% clean power (although how to account for that is a whole other debate).
While hyperscalers like Meta still have clean power goals, they have been more sotto voce recently as the Trump administration wages war on solar and wind. (Nuclear, on the other hand, is very much administration approved — Secretary of Energy Chris Wright was at Meta’s event announcing the new nuclear deal.)
Microsoft, for example, mentioned the word “clean” just once in its Trump-approved “Building Community-First AI Infrastructure” manifesto, released Tuesday, which largely concerned how it sought to avoid electricity price hikes for retail customers and conserve water.
It’s not entirely clear that Meta views the entirety of these deals — the power purchase agreements, the uprates, financially supporting the development of new plants — as extra headroom to expand data center development right now. For one, Meta at least publicly claims to care about additionality. Meta’s own public-facing materials describing its clean energy commitments say that a “fundamental tenet of our approach to clean and renewable energy is the concept of additionality: partnering with utilities and developers to add new projects to the grid.”
And it’s already made substantial deals for new clean energy in Ohio. Last summer, Meta announced a deal with renewable developer Invenergy to procure some 440 megawatts of solar power in the state by 2027, for a total of 740 megawatts of renewables in Ohio. So Meta and Jenkins may be less far apart than they seem.
There may well be value in these deals from a sustainability and decarbonization standpoint — not to mention a financial standpoint. Some energy experts questioned Jenkins’ contention that Meta was harming the grid by contracting with existing nuclear plants.
“Based on what I know about these arrangements, they don’t see harm to the market,” Jeff Dennis, a former Department of Energy official who’s now executive director of the Electricity Customer Alliance, an energy buyers’ group that includes Meta, told me.
In power purchase agreements, he said, “the parties are contracting for price and revenue certainty, but then the generator continues to offer its supply into the energy and capacity markets. So the contracting party isn’t siphoning off the output for itself and creating or exacerbating a scarcity situation.”
The Meta deal stands in contrast to the proposed (and later scotched) deal between Amazon and Talen Energy, which would have co-located a data center at the existing Susquehanna nuclear plant and sucked capacity out of PJM.
Dennis said he didn’t think Meta’s new deals would have “any negative impact on prices in PJM” because the plants would be staying in the market and on the grid.
Jenkins praised the parts of the Meta announcement that were both clean and additional — that is, the deals with TerraPower and Oklo, plus the uprates from existing nuclear plants.
“That is a huge purchase of NEW clean supply, and is EXACTLY what hyperscalars [sic] and other large new electricity users should be doing,” Jenkins wrote. “Pay to bring new clean energy online to match their growing demand. That avoids raising rates for other electricity users and ensures new demand is met by new clean supply. Bravo!”
But Dennis argued that you can’t neatly separate out the power purchase agreement for the existing output of the plants and the uprates. It is “reasonable to assume that without an agreement that shores up revenues for their existing output and for maintenance and operation of that existing infrastructure, you simply wouldn't get those upgrades and 500 megawatts of upgrades,” he told me.
There’s also an argument that there’s real value — to the grid, to Meta, to the climate — to giving these plants 20 years of financial certainty. While investment is flooding into expanding and even reviving existing nuclear plants, they don’t always fare well in wholesale power markets like PJM, and saw a rash of plant retirements in the 2010s due to persistently low capacity and energy prices. While the market conditions are now quite different, who knows what the next 20 years might bring.
“From a pure first order principle, I agree with the additionality criticism,” Ethan Paterno, a partner at PA Consulting, an innovation advisory firm, told me. “But from a second or third derivative in the Six Degrees of Kevin Bacon, you can make the argument that the hyperscalers are keeping around nukes that perhaps might otherwise be retired due to economic pressure.”.
Ashley Settle, a Meta spokesperson, told me that the deals “enable the extension of the operational lifespan and increase of the energy production at three facilities.” Settle did not respond, however, when asked how Facebook would factor the deals into its own emissions accounting.
“The only way I see this deal as acceptable,” Jenkins wrote, “is if @Meta signed a PPA with the existing reactors only as a financial hedge & to help unlock the incremental capacity & clean energy from uprates at those plants, and they are NOT counting the capacity or energy attributes from the existing capacity to cover new data center demand.”
There’s some hint that Meta may preserve the additionality concept of matching only new supply with demand, as the announcement refers to “new additional uprate capacity,” and says that “consumers will benefit from a larger supply of reliable, always-ready power through Meta-supported uprates to the Vistra facilities.” The text also refers to “additional 20-year nuclear energy agreements,” however, which would likely not meet strict definitions of additionality as it refers to extending the lifetime and maintaining the output of already existing plants.
A third judge rejected a stop work order, allowing the Coastal Virginia offshore wind project to proceed.
Offshore wind developers are now three for three in legal battles against Trump’s stop work orders now that Dominion Energy has defeated the administration in federal court.
District Judge Jamar Walker issued a preliminary injunction Friday blocking the stop work order on Dominion’s Coastal Virginia offshore wind project after the energy company argued it was issued arbitrarily and without proper basis. Dominion received amicus briefs supporting its case from unlikely allies, including from representatives of PJM Interconnection and David Belote, a former top Pentagon official who oversaw a military clearinghouse for offshore wind approval. This comes after Trump’s Department of Justice lost similar cases challenging the stop work orders against Orsted’s Revolution Wind off the coast of New England and Equinor’s Empire Wind off New York’s shoreline.
As for what comes next in the offshore wind legal saga, I see three potential flashpoints:
It’s important to remember the stakes of these cases. Orsted and Equinor have both said that even a week or two more of delays on one of these projects could jeopardize their projects and lead to cancellation due to narrow timelines for specialized ships, and Dominion stated in the challenge to its stop work order that halting construction may cost the company billions.