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The Northeast is in the middle of its first true blizzard in years. That long gap wasn’t because of climate change, though.

Happy blizzard day, Northeast. While you might be (okay, or most definitely are) sick of the snow at this point, take comfort in the fact that this storm is different. It meets the definition of a true blizzard, in which a large amount of snow falls with sustained winds over 35 miles per hour and visibility reduced to less than a quarter of a mile for more than three hours. That’s a mouthful, all of which is to say: Complain away! You’ve earned it!
New York City hasn’t issued a true blizzard warning since 2017 — but that isn’t because of climate change. In fact, big, bad storms like this one might be getting even worse.
I spoke with Colin Zarzycki, an associate professor of Meteorology and Climate Dynamics at Pennsylvania State University, on Monday morning about what we can expect from winter storms in a warming climate. Our conversation has been lightly edited for clarity, and the snow-weary should proceed with caution.
I've read both that blizzards will increase in a warming world because the atmosphere can hold more moisture to make more snow, and also that, because it’s warmer, a lot of the precipitation will fall as rain instead of snow, so the storms will decrease. What does the research actually say?
Let’s back up for one second. Blizzards like we have in the Northeast today are a subset of nor’easters. We also call them mid-latitude or extra-tropical cyclones — you hear people talk about “low pressure,” “bomb cyclones.” At the end of the day, these are synonyms for storms that track up the East Coast of the U.S. and dump a lot of snow, particularly along the major metro corridor.
A blizzard is a special subset, where you have strong winds that blow the snow around. And that’s really problematic, because — have you experienced a lot of snowstorms?
I went to college in Vermont and lived in New York City for 10 years, so I’m familiar with snow.
I ask because, every once in a while, you talk to someone from, like, Miami, and they’re like, “I don’t know what you’re talking about.” But during these strong wind events, blowing snow reduces the visibility. That’s very bad for transportation like aviation, but also just driving on highways and roads.
I want to be careful, because there’s been less work done on the wind side of things. The broad consensus is that if you measure nor'easters as a function of their low pressure — which is somewhat analogous to wind speed; they’re not exactly related, but they’re pretty close — there actually doesn’t seem to be a huge shift. For every storm that comes up the East Coast and turns into a bomb that’s blowing 80-mile-an-hour winds, the distribution of the wind looks pretty similar across different climates, whether cooler or warmer.
What you’re referring to about the precipitation: — this is the thing we’re most confident in the science [of]. If you make the very simple argument — which admittedly, our models indicate it is not a bad argument — that if the number of nor’easters that move up the coast stays relatively constant and the intensity of them doesn’t change a lot as measured by wind speed, but if the atmosphere is warmer and can hold more water vapor, then the rates of what’s coming out of the sky essentially increase.
Now if you’re thinking, “Okay, well, that’s snow,” then yes. If you could take this storm and put it in a time machine and move it 50 years from now, and if the atmosphere is 2 degrees [Celsius] warmer, then you’re going to have more precipitation coming out of the sky, all other things being equal.
But you mentioned the other tricky thing that complicates life. When climate scientists think about precipitation in, let’s say, Florida, where it doesn’t snow at all, it generally all just goes one way: It gets warmer, it rains harder. But in the Northeast, we have two things that compete with each other. On the one hand, precipitation increases, as we just discussed. But then obviously, if it warms, more of these storms are likely to produce rain rather than snow.
If you look at just the average number of snowstorms in a warmer world, whether you’re comparing today relative to 1850, or if you’re looking at today and trying to figure out what’s going to happen in 2100, in general, the warmer it gets, the less total snow and the less total number of snowstorms because more of them become rainstorms. The tricky thing is, the decrease really only happens with the weaker snowstorms, the nuisance types.
So if we still get periods in warmer climates where it’s cold enough to snow, and now we’ve turbocharged the atmosphere’s ability to hold moisture by warming, then what we’ve actually done is make it so that when it does snow, it snows harder. In general, we expect to see fewer overall snowstorms when it’s warming, which is very consistent with what we’ve seen in observations in the Northeast U.S. If you look at any major metro area and you plot snow since 1950 it’s generally been on a downslope. But these big blizzard-type storms aren’t going away.
The jury is out as to whether the most, most, most, most extreme snowstorms become a little more extreme. But the big take-home message is that the frequency of big nor’easters isn’t going away, even if the climate warms.
There has been a lot of talk about this being the first blizzard to hit New York City in nine years. I don’t think I can remember a storm quite like this from when I was living there. Is that because this is the most extreme version you’re referring to, that we haven’t seen as often?
If you were to ask someone who has lived in New York City since the 1950s, they would probably tell you that this is a bad snowstorm, but that they’ve seen similar ones. I’m not an expert on the history of New York City weather, but there were a couple of big storms, I think, in the 1970s that were analogous to this, if not a little worse.
What is unique about this storm is that we really haven’t seen one of these tight coastal blizzards this year. We had that storm that came through earlier this year, which also brought a decent amount of snow to New York, but it tracked across the country rather than forming right off the coast and moving up that direction. This one is dragging snow across New York City and Boston; it’s a very classic Northeastern U.S. blizzard.
I think the main aspect is that we have been in a period of luck. We haven’t had these storms as frequently in the past. Some of it goes to that kind of dice-rolling thing with the temperatures. But if you look over the last 10 years, I would assume it’s not that New York City has been nice and sunny and calm in the winter. It’s that you’ve had these wintertime cyclones, but it’s been a lot more rain, or wet, rainy, sleety snow. It hasn’t been cold enough air to really lock in the blizzard conditions.
My understanding is that blizzards are specific atmospheric events in which the wind speed must exceed 35 miles per hour and visibility is limited. How difficult is that to capture in the data? I know from my reporting on tornadoes that it can be really difficult to capture wind events. How do you study this?
The fancy word in climate science is “compound extremes,” and a blizzard is a form of a compound extreme where you have multiple hazards at the same time. Add one layer on top of another, and the more there are, the harder it is to get information out of the data.
Especially in densely populated areas like the Northeastern U.S., blizzards are fairly tricky to look at. When you read the National Weather Service’s definition of a blizzard, it’s like, “It has to be snowing, and you have to have sustained winds, and you have to have decreased visibility.” All of those mean you’re adding layers of complexity to the data.
Tornadoes are a little similar; they’re a discrete phenomenon, and you need specific ingredients to all line up, and there’s also an observation problem. It’s somewhat analogous to blizzards: I could be at JFK Airport in New York, which is right on the ocean. There’s not a lot in the way to slow down the winds. Especially if you have drier snow, it’s very easy for it all to blow around. If I’m a guy working at JFK, I’m saying, “This is really bad, it’s really windy, the snow is coming down, and we can’t see anything. We have to shut everything down.” But put yourself in Midtown or somewhere where you’re surrounded by buildings and a little further away from the ocean, then suddenly the winds might be reduced because you have more obstacles that can slow it down. You’re experiencing the exact same storm, but the impacts are very different.
You said at the beginning that the underlying assumption is that nor’easters will continue at the same rate they’re happening now. Is there anything I should know about the way climate change is impacting those events?
Precipitation is the main thing. There’s been some work on the frequency and track of the storms, and we’ve seen small changes. But we also have a sample-size problem. The more you want to focus on the intense storms, the less you have in your records, and the more challenging it is to tease out what’s going on. That’s one of the reasons I really like models.
So maybe, if you squint, you can see some small changes in the frequency or the track, but it’s on the order of 5% to 10% per year. But the number of nor’easters we actually get in a given winter is not small; depending on how you want to classify it, it’s something like 10 to 15 any given winter. They don’t all produce a lot of snow; some of them go offshore, and if you’re sailing a boat in the middle of the ocean, then you’d be like, yeah, this is a big problem. But generally, we have very high confidence in understanding the precipitation, and decent confidence in understanding how the rain-snow partitioning changes. The winds, I think, are kind of an open question. But we’re talking secondary effects relative to the precipitation for all of them.
Is there anything else I should know about blizzards and climate change?
I do interviews every winter about bomb cyclones and big storms. The fact that I do multiple interviews a winter implies that the storms themselves are not anomalous. If you actually count them, you end up with a decent number. You just need the dice to come up snake eyes — all the ingredients need to line up for it to be something impactful. And that’s what’s happening now.
What climate change does is change the underlying probabilities and distributions. But at the end of the day, the main thing that actually drives what’s going on with these storms is, can the atmosphere put the Lego pieces together for these impacts? Every cyclone that we get during the winter, if you go back and look at the historical record, there’s plenty of evidence for these types of storms.
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America’s largest renewable developer is swallowing up the utility at the heart of the data center boom.
NextEra Energy, which also owns the utility Florida Power & Light, announced Monday morning that it had agreed to acquire Dominion Energy, the utility that operates in Virginia and the Carolinas. The deal would create an energy giant valued at around $67 billion. It would also — importantly for Virginia and PJM Interconnection, the 13-state electricity market of which the state is a part — create a battery electric storage giant.
The companies said in a Monday presentation laying out the case for the merger to investors that the combined entity would be the largest power company in the United States and the third largest energy company behind just ExxonMobil and Chevron. The companies projected that, when combined, they would be the domestic leader in total generation, market capitalization, rate base, annual capital expenditure, total generation built, and, specifically, battery storage capacity.
NextEra is already a storage leader. Its Florida utility is planning to add 7.6 gigawatts of battery storage over the next decade, and its development arm added almost a gigawatt of storage to its backlog in just the first quarter of this year.
NextEra’s storage expertise couldn’t come at a better time for Dominion. Virginia passed a law in April mandating that the utility procure 16 gigawatts of short-duration storage and 4 gigawatts of long-duration storage by 2045, with 4 gigawatts of short-term storage coming by 2030. Compare that to a previous state target for Dominion of around 3 gigawatts of storage 2035 and the challenge becomes apparent.
“With NextEra Energy’s world leadership in battery storage, there’s a potential to accelerate Dominion Energy’s capital plan to meet Virginia’s storage goals,” NextEra Chief Executive John Ketchum said on a call with analysts discussing the merger plans.
The market Dominion operates in in Virginia, PJM Interconnection, has long been a laggard in bringing new storage resources onto its grid, thanks to its famously dysfunctional interconnection queue. Although its newly refreshed queue has seen a large increase in storage projects compared to when the organization closed it to new projects in 2022, the market is still well behind storage-friendly peers like California and Texas.
PJM has also become notorious more recently for its capacity market, which has fueled price increases across the region in the billions of dollars, and yet failed to procure the reserve margin PJM typically aims for in its most recent auction. “Given that we’re the world’s leader in battery storage and the legislation that was just passed by Virginia, there is a tremendous opportunity to meet that capacity short quickly by deploying battery storage in the right places,” Ketchum said Monday. “We know what a big impact battery storage can have, and how quickly it can have it on capacity-short positions. And so we look at a Dominion in Virginia with [a] short capacity position — I think there’s a real opportunity to accelerate investment.”
The proposed deal comes at a time of rising prices and public anger at utilities up and down the Eastern Seaboard, and especially in the Mid-Atlantic. Dominion’s rates in Virginia have risen around 36% in the past four years, according to the Heatmap-M.I.T. Electricity Price Hub, while typical bills have risen from about $96 per month to $146 per month. Virginia’s rates have grown faster than average in PJM, but are still well below the increases in states like Maryland and New Jersey despite serving a fast-growing data center industry.
While elected Democrats in PJM states regularly bash utilities (see: New Jersey and Pennsylvania), it’s possible that both Virginians and Virginia might look favorably on NextEra, Jefferies analyst Julien Dumoulin-Smith wrote in a note to clients Monday. “If [NextEra] focuses on storage development under the new Democratic legislation recently passed, it could form a coalition of support; we believe this is [a] critical point that could make the deal approval process less bumpy than some other recent M&A deals.”
Morningstar analyst Andrew Bischof saw the deal as allowing each side to use the other’s expertise (and balance sheet) to ramp up investment. Dominion might be able “leverage NextEra’s strong balance sheet to accelerate investment, particularly in Virginia,” whereas NextEra “could accelerate its data center ambitions, which had trailed those of its regulated peers, by using Dominion’s expertise and relationships to expedite NextEra’s data center hub plans,” he wrote in a note to clients Monday.
Building out more storage could also be great for a regulated utility like Dominion, as it would get to put new resources into its rate base and garner a return on equity.
“The General Assembly just added new storage requirements for us, which we think are going to be great for our customers, being able to work with Nextera and this combined company on that,” Dominion chief executive Robert Blue said on the call. “I think this is really going to benefit our customers as we serve them better and will deploy capital faster that way.”
On Thacker Pass, the Bonneville Power Administration, and Azerbaijan’s offshore wind
Current conditions: New York City is bracing for triple-digit heat in some parts of the five boroughs this week • The warm-up along the East Coast could worsen the drought parching the country’s southeastern shores • After Sunday reached 95 degrees Fahrenheit in the war-ravaged Gaza, temperatures in the Palestinian enclave are dropping back into the 80s and 70s all week.
Assuming world peace is something you find aspirational, here’s the good news: By all accounts, President Donald Trump’s two-day summit in Beijing with Chinese President Xi Jinping went well. Here’s the bad news: The energy crisis triggered by the Iran War is entering a grim new phase. Nearly 80 countries have now instituted emergency measures as the world braces for slow but long-predicted reverberations of the most severe oil shock in modern history. With demand for air conditioning and summer vacations poised to begin in the northern hemisphere’s summer, already-strained global supplies of crude oil, gasoline, diesel, and jet fuel will grow scarcer as the United States and Iran mutually blockade the Strait of Hormuz and halt virtually all tanker shipments from each other’s allies. “We are taking that outcome very seriously,” Paul Diggle, the chief economist at fund manager Aberdeen, told the Financial Times, noting that his team was now considering scenarios where Brent crude shoots up to $180 a barrel from $109 a barrel today. “We are living on borrowed time.”
The weekend brought a grave new energy concern over the conflict’s kinetic warfare. On Sunday, the United Arab Emirates condemned a drone strike it referred to as a “treacherous terrorist attack” that caused a fire near Abu Dhabi’s Barakah nuclear station. The UAE’s top English-language newspaper, The National, noted that the government’s official statement did not blame Iran explicitly. The attack came just a day after the International Atomic Energy Agency raised the alarm over drone strikes near nuclear plants after a swarm of more than 160 drones hovered near key stations in Ukraine last week.
We are apparently now entering the megamerger phase of the new electricity supercycle. On Friday, the Financial Times broke news that NextEra Energy is in talks with rival Dominion Energy for a tie-up that would create a more than $400 billion utility behemoth in one of the biggest deals of all time. The merger talks, which The Wall Street Journal confirmed, could be announced as early as this week. The combined company would reach from Dominion’s homebase of Virginia, where the northern half of the state is serving as what the FT called “the heartland of U.S. digital infrastructure serving the AI boom,” down to NextEra’s home-state of Florida, where the subsidiary Florida Power & Light serves roughly 6 million customers. While Dominion dominates data centers in Northern Virginia, NextEra last year partnered with Google to build more power plants and even reopen the Duane Arnold nuclear station in Iowa.

Trump digs lithium. In fact, he’s such a fan of Lithium Americas’ plan to build North America’s largest lithium mine on federal land in Nevada that he renegotiated a Biden-era deal to finance construction of the Thacker Pass project to secure a 5% equity stake in the publicly-traded developer. Yet the White House’s macroeconomic policies are pinching the nation’s lithium champion. During its first-quarter earnings call with investors last week, Lithium Americas cautioned that the Trump administration’s steel tariffs, coupled with inflation from disrupted shipments through the Strait of Hormuz, could add between $80 million and $120 million to construction costs at Thacker Pass. Most of the impact, Mining.com noted, is expected this year. Once mining begins, the project could spur new discussion of a strategic lithium reserve, the case for which Heatmap’s Matthew Zeitlin articulated here.
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The Department of Energy has selected Travis Kavulla, an energy industry veteran, as the 17th chief executive and administrator of the Bonneville Power Administration, NewsData reported. Founded under then-President Franklin D. Roosevelt in 1937, the federal agency is a holdover from the New Deal era before utilities had built out electrical networks in rural parts of the U.S. Unlike the Tennessee Valley Authority — which functions as a standalone utility that owns and sells power, though it’s wholly owned by the federal government and its board of directors is appointed by the White House — the BPA, as it’s known, is a power marketing agency that sells electricity from hydroelectric dams owned by the Army Corps of Engineers and the Department of the Interior’s Bureau of Reclamation. Kavulla currently serves as the head of policy for Base Power, the startup building a network of distributed batteries to back up the grid. He previously worked as the regulatory chief at the utility NRG Energy, and as a state utility commissioner in his home state of Montana. NewsData, a trade publication focused on Western energy markets, cautioned that the Energy Department may hold off on announcing the appointment for “the next few days or weeks” as sources warned that “it might be delayed while the department conducts a background check, or to allow the new undersecretary of energy, Kyle Haustveit, to be confirmed.”
Reached Sunday night via LinkedIn message, Kavulla politely declined to comment on whether he was appointed to lead the BPA.
Offshore wind may be spinning in reverse in the U.S. as the Trump administration attempts to, as Heatmap’s Jael Holzman put it, “murder” an industry through death by a thousand cuts. But elsewhere in the world, offshore wind is booming. Just look at Azerbaijan. Despite its vast reserves of natural gas, the nation on the Caspian Sea is looking into building its first offshore turbines. On Friday, offshoreWIND.biz reported that the Azerbaijan Green Energy Company, owned by the Baku-based industrial giant Nobel Energy, had commissioned a Spanish company to design a floating LiDAR-equipped buoy for the country’s first turbines in the Caspian. The debut project, backed by the Azeri government, would start with 200 megawatts of offshore wind and eventually triple in size.
Before the wealthy software entrepreneur Greg Gianforte ran to be governor of Montana, he donated millions of dollars to a Christian-themed museum that claims humans walked alongside dinosaurs and the Earth is just 6,000 years old. After winning the state’s top job, the Republican set about revoking virtually all policies related to climate change, including banning the projected effects of warming from state agencies’ risk forecasts. With drought withering the state, however, Gianforte has turned to perhaps the most ancient policy approach humanities leaders have called upon to fix devastating weather patterns: Pray. On Sunday, Gianforte declared an official day of prayer for rain. “Prayer is the most powerful tool we have,” he wrote in a post on X. “I ask all who are faithful to come to God with thanks and pray.”
With construction deadlines approaching, developers still aren’t sure how to comply with the new rules.
Certainty, certainty, certainty — three things that are of paramount importance for anyone making an investment decision. There’s little of it to be found in the renewable energy business these days.
The main vectors of uncertainty are obvious enough — whipsawing trade policy, protean administrative hostility toward wind, a long-awaited summit with China that appears to have done nothing to resolve the war with Iran. But there’s still one big “known unknown” — rules governing how companies are allowed to interact with “prohibited foreign entities,” which remain unwritten nearly a year after the One Big Beautiful Bill Act slapped them on just about every remaining clean energy tax credit.
The list of countries that qualify as “foreign entities of concern” is short, including Russian, Iran, North Korea, and China. Post-OBBBA, a firm may be treated as a “foreign-influenced entity” if at least 15% of its debt is issued by one of these countries — though in reality, China is the only one that matters. This rule also kicks in when there’s foreign entity authority to appoint executive officers, 25% or greater ownership by a single entity or a combined ownership of at least 40%.
Any company that wants to claim a clean energy tax credit must comply with the FEOC rules. How to calculate those percentages, however, the Trump administration has so far failed to say. This is tricky because clean energy projects seeking tax credits must be placed in service by the end of 2027 or start construction by July 4 of this year, which doesn’t leave them much time left to align themselves with the new rules.
While the Treasury Department published preliminary guidance in February, it largely covered “material assistance,” the system for determining how much of the cost of the project comes from inputs that are linked to those four nations (again, this is really about China). That still leaves the issue of foreign influence and “effective control,” i.e. who is allowed to own or invest in a project and what that means.
This has meant a lot of work for tax lawyers, Heather Cooper, a partner at McDermott Will & Schulte, told me on Friday.
“The FEOC ownership rules are an all or nothing proposition,” she said. “You have to satisfy these rules. It’s not optional. It’s not a matter of you lose some of the credits, but you keep others. There’s no remedy or anything. This is all or nothing.”
That uncertainty has had a chilling effect on the market. In February, Bloomberg reported that Morgan Stanley and JPMorgan had frozen some of their renewables financing work because of uncertainty around these rules, though Cooper told me the market has since thawed somewhat.
“More parties are getting comfortable enough that there are reasonable interpretations of these rules that they can move forward,” she said. “The reality is that, for folks in this industry — not just developers, but investors, tax insurers, and others — their business mandate is they need to be doing these projects.”
Some of the most frequent complaints from advisors and trade groups come around just how deep into a project’s investors you have to look to find undue foreign ownership or investment.
This gets complicated when it comes to the structures involved with clean energy projects that claim tax credits. They often combine developers (who have their own investors), outside investment funds, banks, and large companies that buy the tax credits on the transferability market.
These companies — especially the banks, which fund themselves with debt — “don’t know on any particular date how much of their debt is held by Chinese connected lenders, and therefore they’re not sure how the rules apply, and that’s caused a couple of banks to pull out of the tax equity market,” David Burton, a partner at Norton Rose Fulbright, told me. “It seems pretty crazy that a large international bank that has its debt trading is going to be a specified foreign entity because on some date, a Chinese party decided to take a large position in its debt.”
For those still participating in the market, the lack of guidance on debt and equity provisions has meant that lawyers are having to ascend the ladder of entities involved in a project, from private equity firms who aren’t typically used to disclosing their limited partners to developers, banks, and public companies that buy the tax credits.
“We’re having to go to private equity funds and say, hey, how many of your LPs are Chinese?” David Burton, a partner at Norton Rose Fulbright, told me. This is not information these funds are typically particularly eager to share. If a lawyer “had asked a private equity firm please tell us about your LPs, before One Big Beautiful Bill, they probably would have told us to go jump in the lake,” Burton said.
Still, the deals are still happening, but “the legal fees are more expensive. The underwriting and due diligence time is longer, there are more headaches,” he told me.
Typically these deals involve joint ventures that formed for that specific deal, which can then transfer the tax credits to another entity with more tax liability to offset. The joint venture might be majority owned by a public company, with a large minority position held by a private equity fund, Burton said.
For the public company, Burton said, his team has to ask “Are any of your shareholders large enough that they have to be disclosed to the SEC? Are any of those Chinese?” For the private equity fund, they have to ask where its investors are residents and what countries they’re citizens of. While private equity funds can be “relatively cooperative,” the process is still a “headache.”
“It took time to figure out how to write these certifications and get me comfortable with the certification, my client comfortable with it, the private equity firm comfortable with it, the tax credit buyer comfortable with it,” he told me, referring to the written legal explanation for how companies involved are complying with what their lawyers think the tax rules are.
Players such as the American Council on Renewable Energy hope that guidance will cut down on this certification time by limiting the universe of entities that will have to scrub their rolls of Chinese investors or corporate officers.
“It’d be nice if we knew you only have to apply the test at the entity that’s considered the tax owner of the project,” i.e. just the joint venture that’s formed for a specific project, Cooper told me.
“There’s a pretty reasonable and plain reading of the statute that limits the term ’taxpayer’ to the entity that owns the project when it’s placed in service,” Cooper said.
Many in the industry expect more guidance on the rules by the end of year, though as Burton noted, “this Treasury is hard to predict.”
In the meantime, expect even more work for tax lawyers.
“We’re used to December being super busy,” Burton said. “But it now feels like every month since the One Big Beautiful Bill passed is like December, so we’ve had, like, you know, eight Decembers in a row.”