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There’s a lot about the fires in Pacific Palisades, Eaton Canyon, and Sylmar that’s unusual, but they were still entirely predictable.

January is one of the worst months of the year for wildfires — in southern Australia. Not in the metro area of Los Angeles, where it is, technically, supposed to be the rainy season.
But try telling a fire that it’s unseasonal.
At the time of this writing, three wildfires are burning in the Los Angeles area, mostly uncontained: the nearly 3,000-acre Palisades fire in the hills between Santa Monica and Malibu; the 500-acre Hurst fire in Sylmar, northwest of downtown L.A.; and the 2,300-acre Eaton fire outside of Pasadena. The fire has destroyed more than 1,000 buildings — including, apparently, the home of reality TV royals Heidi Montag and Spencer Pratt — and at least two people have died. Emergency management officials told an additional 30,000 people to evacuate immediately, a number that is likely to climb as dry, windy conditions worsen throughout the day on the West Coast. Though it’s still early in the unfolding disaster, forecasters expect fire weather to continue through at least Thursday, and some experts are already saying the event may end up being the costliest wildfire on record.
It’s not the case, however, that this unusual storm has taken emergency management or the public by surprise. “We’ve been advertising this event for several days and talking about how serious it could be starting last week,” Kristen Allison, a fire management specialist with the Southern California Geographic Area Coordination Center, told me. Given the high Santa Ana winds —which, with their 100-mile-per-hour gusts, were strong enough to blow unimpeded over the San Gabriel mountains and hit typically sheltered areas like Pasadena — and the low humidity, forecasters saw all the classic warning signs of wildfire well in advance.
It’s not the wind or dry air that is so atypical for January, though. “We haven’t had significant rain since April, so we’ve been dry for eight or nine months,” Allison went on. “Our fuels are basically bone dry at this point.”
And there is a lot of fuel waiting to burn after the region’s wet spring — a dangerous situation created by the see-sawing between extremes that is typical of climate change. Earlier this year, the U.S. Drought Monitor classified many parts of the state as being in a “moderate” drought, a trend that also has strong links to climate change and will have dried out the vegetation in the hills.
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Making matters worse, the winter storms that usually hit the L.A. area this time of year have tracked north, soaking the Pacific Northwest and Northern California instead. L.A.’s fires, then, are “not so much a temperature story,” Max Moritz, a cooperative extension wildfire specialist at U.C. Santa Barbara’s Bren School of Environmental Science & Management, told me. “This is really more of a precipitation and climate change story.” All the landscape was ever going to need, in other words, was a spark.
It might be a long time before we discover what this particular spark was. But it also doesn’t really matter. “Once fires like this start, there is not a whole lot firefighters can do,” Neil Lareau, a professor of atmospheric science at the University of Nevada, Reno, told me. “The pre-positioning of resources — all of that was there. But you see the impossibility of the task at hand once the fires get going.”
Allison agreed that few who live in the fire-prone hills outside of Malibu or Pasadena are likely to have ignored the warnings just because they’ve otherwise been lucky lately. “People know that if we haven’t had rain in months and months and months, and we got the wind coming — they know this is fire weather,” Allison said. The lack of significant casualties so far might be attributed to the fact that as awful as the physical destruction is, this is also what southern California does, even if it’s an unusual time of year.
But Scott Capps, an atmospheric scientist and the head of Atmospheric Data Solutions, a forecasting firm, pointed out to me in an email that just because we expect fire weather, “we cannot predict where and when a wildfire ignition will happen.” As he explained, the terrain of southern California is complex and extraordinarily difficult to accurately model; in a fast-moving situation like the fires in L.A., the advantages of predicting fire weather quickly reach their limits. Especially when a wildfire starts burning between fuel-rich homes, entire neighborhoods can quickly go up in smoke.
The late author and urban theorist Mike Davis once argued that we should let Malibu burn. “After every major California blaze, homeowners and their representatives take shelter in the belief that if wildfire can’t be prevented, nonetheless, its destructiveness can be tamed,” he wrote, adding: “Yet, as a contemporary Galileo might say … ‘still it burns.’”
Davis was writing in 1998, a time when he described fire season as “late August to early October.” Many would argue now that there isn’t such a thing as a fire “season” anymore. Allison warned me that the forecast looks favorable for fires through Friday, and that “additional winds are coming next week” and “we’re not going to see rain anytime soon.” At a certain point, Davis’ wry pessimism might not seem not so crass.
Moritz, though, wanted to be clear in distinguishing between the inevitabilities. “We have built communities right up into and against flammable landscapes, so yes, it is inevitable that many of these neighborhoods are going to experience a fire,” he explained. But “is it inevitable that we would have this many home losses, or have to evacuate this many people, and who knows how many fatalities may end up emerging — is that part inevitable? No.”
Predicting fires is, of course, vitally important: Warnings and outlooks prevent deaths, promote home-hardening and resilience measures, and help encourage smooth evacuations that, in turn, keep first responders safe. But when you have an alignment of conditions like these, prediction will never equal prevention. Moritz argued that we need to move beyond “preventing” fires, anyway — it’s more important that we begin to think of land use and urban planning as public health measures. “We need to have urban design standards that explicitly address the need for more survivable communities” in southern California, he told me.
Because of the climate, because of bad luck, because of the folly of wanting to live somewhere with that perfect Pacific view — California was going to catch fire. “I think there are going to be some tragic outcomes that we hear about,” Moritz said, “and if there are any lessons that we can take away, it’s that we have to learn to coexist with this kind of inevitable natural hazard.”
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The gains set up Democrats to potentially flip the utility commission in 2028.
The blue wave has officially reached the Arizona down ballot. Though two Democratic wins in the Arizona Corporation Commissioner race might not drum up the same national coverage as, say, flipping a Senate seat in South Carolina, the election of Clara Pratte and Jonathon Hill to the five-seat commission could have major energy implications in a state that already saw renewables champions take over the state’s largest utility earlier this year. (With close margins in slow-to-count Arizona, the ACC race wasn’t officially called until Thursday evening, when both Republicans conceded.)
Arizona is one of 10 states that elects its utility commissioners, with the ACC regulating private water, gas, and electric companies in the state. That includes overseeing Arizona Public Service and Tucson Electric Power, where bills have increased 52% and 10%, respectively, over the past five years, per Heatmap’s data. (The publicly owned Salt River Project, which serves much of the Phoenix area, operates largely without ACC oversight.)
The ACC has been wholly in Republican hands since 2024; during that time, the body repealed Arizona’s Electric Efficiency Standards, which had incentivized utilities to pursue energy efficiency programs, as well as the state’s Renewable Energy Standard and Tariff, which supported the build-out of solar and wind power. “They were a rubber stamp for all our utilities and refused to even consider anything in support of protecting our climate,” Arizona State Representative Brian Garcia, who was reelected on Tuesday, said during a press call with Lead Locally this week. “At one instant, one of the commissioners told someone who got sick from the heat — who turned off their power and their AC — ‘Well, that’s on them.’ And I think our state and our communities have had enough of that.”
Though the ACC remains under Republican control despite the two Democratic additions, it puts full control within a one-seat striking distance for progressives when the other three seats are up in 2028 — a much easier fight to win, and potentially a huge one, given that the party hasn’t controlled the ACC since 1997.
Of particular concern in 2026, though, was the development of data centers. Ralph Heap, a Republican in the race who made the League of Conservation Voters’ 12-person “worst of the worst” list out of all 6,342 seats up for grabs nationwide on Tuesday, previously told the Arizona Capitol Times he supports the data center build-out in the name of American AI dominance. Incumbent Republican Kevin Thompson, meanwhile, has argued that the commission “has done its job of shielding ratepayers from costs associated with servicing data centers and other large load users.”
Voters evidently disagreed, backing Hill and Pratte, who say they support a data center moratorium. “The Corporation Commission might not be able to implement a pause, but I think they can certainly be a clearinghouse for information,” Hill told Yellow Sheet Report, an Arizona political tipsheet, acknowledging the relatively limited role the ACC actually has in regulating data centers beyond demanding transparency of utilities’ energy service agreements.
There are other concerns, too. Climate organizers zeroed in on the ACC race because of its influence over the solar buildout in the nation’s sunniest state, where nevertheless six of the state’s 15 counties have a restrictive ordinance against the resource, Heatmap Pro data shows. Commissioner-elect Pratte, a member of the Navajo Nation and the first Indigenous person elected to statewide office in Arizona, is also the co-founder of Navajo Power, a clean-energy company that helps tribal nations develop solar energy and storage projects.
Arizona Public Service and Tucson Electric Power also both have pending rate increase requests under review by the ACC; a 14% rate increase for residential customers and a 45% or more increase for data centers in the case of APS, and a 10% increase for residential customers in the case of TEP. (The APS’ rate case will likely be decided in December, before Pratte and Hill take their seats.)
Additionally, State Senator Lauren Kuby has introduced a bill to change the name of the ACC to the Arizona Public Utility Commission, a move intended to highlight to voters “its significance to their daily lives,” as she told the Arizona Capitol Times earlier this year. Sure enough, John Qua, the campaign director at Lead Locally, and Caroline Spears, the executive director of Climate Cabinet, previously told my colleague Matthew Zeitlin that part of the trouble with supporting progressive candidates in the ACC race was communicating to Arizona voters that, like the race for governor, it is a partisan election.
But given how things turned out Tuesday nationwide — a referendum on cost-of-living and, perhaps, data centers — it seems they needn’t have worried. Arizonans worked out exactly who to blame.
Electricity companies look like one of the biggest losers of the 2026 midterms.
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I’m still wrapping my head around the size and scale of the Democratic victory on Tuesday. I suspect Wall Street is, too. Yesterday, the S&P 500 gained about 1.6% as investors saw an upside in the Democratic blow-out. Today, they lost their nerve: The S&P fell almost 4.4%, and the tech-focused Nasdaq slid by more than 5%. That AI-loaded index is now down more than 10% from its all-time high in October, which means it’s technically entered a “correction.” (If it drops by 20%, it’ll be in a bear market.)
Amid the market carnage, utilities have held out alright. The Vanguard utilities index fell by less than one percent today, and two of the country’s biggest vertically integrated electricity monopolies — Duke and Southern Company — actually gained ground. Other power companies — including Xcel Energy, which serves the Midwest and Dominion Energy in the Southeast — did okay as well.
I find that surprising, because utilities strike me as one of the biggest losers of Tuesday’s election.
That’s partly because utilities showed up in surprisingly specific ways in candidate policy proposals this cycle. Last night, I wrote about how Senate Democratic candidates took a fairly moderate tack on climate and energy policy this year. What I didn’t mention is that Adam Hamilton, Kansas’ newly elected Democratic senator, called out utilities specifically in his proposal for major new transmission. One of his four big energy policy proposals is as follows:
Require competitive bidding processes for transmission projects instead of handing utility companies lucrative contracts at taxpayer expense. When a nearly half-billion-dollar transmission project is handed to a single utility with no competitive bidding, Kansas ratepayers can end up paying far more than they should. Competitive bidding has been shown to cut these costs by twenty to thirty percent. Politicians on both sides of the aisle should speak out against harmful policies that avoid competitive bidding, like the $493 million project that was handed to Evergy.
I mean, sounds great to me, but transmission policy does not normally rank among Democrats’ biggest applause lines. Hamilton’s other energy ideas are far more conventional, including ending Trump’s tariffs, his war on domestic energy projects, and restoring the clean energy tax credits.
Hamilton wasn’t alone in targeting utilities. David Pomerantz, who leads the watchdogging Energy and Policy Institute, has a great blog post today looking at utility politics in the 2026 election. He argues that we’re about to see utilities endure a much tougher oversight regime than they’ve faced in decades.
Why? There was much more attention on public utility regulators in this election than there have been in previous ones, he argues. Historically, public utility commission appointments have been sleepy affairs. But “incoming new governors Amy Acton (Ohio), Jocelyn Benson (Michigan), David Crowley (Wisconsin), Aaron Ford (Nevada), and Hannah Pingree (Maine) all campaigned overtly on a promise to appoint commissioners who would put ratepayers first,” he writes. In a few of those gubernatorial races, the losing Republican candidate had also promised to fire or replace the existing utility commissioners.
It goes beyond just oversight. The incoming governors in Pennsylvania, Iowa, and Maine have all vowed to reform or lower utility profits. Democrats won a majority on Georgia’s public utility commission — and flipped two seats in Arizona’s five-person board — promising to look closely at the utility profit structure, too.
In one state, voters even directly intervened to limit utility action. Michigan’s Proposition 2, which bars regulated utilities from making campaign contributions, passed overwhelmingly with more than 80% of the vote (although it now faces a legal challenge). And more than 100 politicians, including the winning Benson, pledged not to take utility campaign contributions.
Anyway, it’s an interesting post. You might remember I spoke to David last week for Shift Key about how the bipartisan permitting legislation would weaken monopoly utilities. As my colleagues Jael Holzman and Emily Pontecorvo wrote yesterday, Democrats and Republicans are now negotiating a top-down amendment to that permitting package. We’ll soon learn if the new version — which could come out any time in the next two weeks — preserves the same tough-on-utilities provisions that Dave praised.
When it comes to energy and data centers, everyone loves Texas. Its pro-business political consensus, unusually deregulated electricity market, wide-open plains, sunny skies, and large natural gas and oil deposits have attracted data center developers, renewables developers, liquefied natural gas export terminals, and battery storage entrepreneurs alike.
But this all happened under decades of unified Republican control of Texas’ government. That’s ending on January 19, when Gina Hinojosa is sworn in as governor alongside every other holder of statewide elected office who won this year. In Austin, they will join a Democratic majority Texas House of Representatives, which has been under Republican control since 2003.
Immediately following the election, stocks linked to data center development in Texas swooned — Elon Musk’s SpaceX is down 12.5% since Tuesday, data center developer CoreWeave is down almost 19%, Oracle is down 9%, Texas-based independent power producer Vistra is down 19%. Sterling Infrastructure, a civil construction company headquartered outside Houston, has seen its shares fall 32%.
On the campaign trail, Hinojosa called for a moratorium on data centers until the legislature could pass legislation putting guardrails around development, including protecting residential ratepayers from electricity price hikes and giving local communities more leeway to restrict and condition development. Two weeks before election day, she released a video criticizing Governor Greg Abbott’s “Batch Zero” review process — which had been broadly characterized as a “pause” when it was announced over the summer — for allowing new permits, and she said that she would issue a “ban” on all data center approvals until new laws could be passed.
When Abbott introduced his pause over the summer, Texas’s electricity market ERCOT had 474 gigawatts of data center interconnection requests in its queue (almost all from data centers), a figure he said was around five times the electricity market’s peak demand. That review is due to end next month, shortly before Hinojosa is due to take office, leaving little time for new projects to get approved before the moratorium goes into effect.
Some observers and investors took a sanguine view of Hinojosa’s data center policies. Gavin Baker, a longtime investor in SpaceX, said on X that Hinojosa’s policies “sound reasonable” and pointed to an interview she gave saying that the moratorium would be on new permits and would not affect the pipeline of permitted projects.
The data center and energy industry, however, is in wait-and-see mode when it comes to the severity of the moratorium.
“If she was thinking of trying to go after projects that had begun the construction process,” Brandt Vermillion, U.S. research lead at Modo Energy, said, “I think it would change the overall outlook a ton.”
According to Modo Energy analysis, there are some 25 gigawatts worth of projects under construction in Texas, another 4.6 gigawatts permitted, and another 90 gigawatts that are either just announced or have only submitted grid studies. If Hinojosa “is only going after non-permitted projects,” Vermillion added, then anyone thinking about the future path of data center development in Texas should be more concerned about supply chain constraints like obtaining enough chips to power the data centers.
That being said, the Texas legislature’s session doesn’t end until May 2027, meaning that Hinojosa’s pause could last several months before lawmakers put guardrails into law.
“I don’t think we’re going to not build another data center in the state,” Joshua Rhodes, a research scientist at the University of Texas at Austin, told me. “But I think that they’re going to be under quite a bit more scrutiny.”
That being said, analysts are now much more uncertain about the future path of electricity demand in the state. “Texas demand is difficult to project after Gina Hinojosa’s surprise win,” Jefferies analyst Julien Dumoulin-Smith wrote in a note to clients on Thursday.
That means more trouble for developers in Texas, especially for storage projects, which had already been seeing extremely volatile monthly revenue.
“Batteries and energy storage have been counting on demand to go up because they’re having a rough time out there right now in terms of revenues,” Rhodes said. “Demand will have a pretty big impact on supply.”
One thing the battery storage industry, as well as solar and wind developers, can cheer is that Democratic control of the governorship and the state House means that the threat of anti-renewables bills has fallen to essentially zero.
The renewables industry is hoping that data center development does continue in Texas, but that it looks more orderly and grid-connected.
Going forward, Vermillion expects that data center developers will have a harder time getting tax abatements, which means that a “well-capitalized hyperscaler” could potentially still pursue projects.
“Project A that was going to go about development in a certain way of seeking tax abatements and buying a bunch of reciprocating engines and trying to run themselves off grid” is much less likely to be able to go forward in Hinojosa’s Texas, Vermillion told me, especially as she is able to appoint new commissioners to the Texas Public Utility Commission or the Texas Commission on Environmental Quality.
Tim Woodruff, the data center lead at Modo, told me similarly. “In the near term, if you're one of the neo clouds, maybe now you start pushing a little harder on your projects that you have in MISO or in CAISO,” he said.