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On FERC’s ‘disastrous misstep,’ the World Court’s climate ruling, and 127 SMRs

Current conditions: West African countries including Guinea-Bissau, Guinea-Conakry, Senegal and The Gambia are facing flash flooding from heavy rainfall • The southwestern corner of New Mexico is suffering “exceptional” drought, the highest possible level in the U.S. Drought Monitor. • Already roasting in excessive heat, Des Moines, Iowa, is bracing for thunderstorms.
The Department of Energy canceled a nearly $5 billion loan guarantee for the Grain Belt Express, a transmission project designed to move wind power from Kansas to the industrial upper Midwest. After more than a decade of development, the power line won bipartisan support and secured $4.9 billion in federal financing late last year to fund the first phase of the project, running from Ford County in Kansas to Callaway County in Missouri.
As Heatmap’s Matthew Zeitlin explained, the project eventually drew the ire of Missouri Senator Josh Hawley, who recently stepped up his attacks in the hopes that a more friendly administration could help scrap the project. The transmission line’s developer, Invenergy, told Heatmap in a statement that “a privately financed Grain Belt Express transmission superhighway will advance President Trump’s agenda of American energy and technology dominance.”
The microreactor startup Oklo inked a deal with Liberty Energy, the fracking giant where Secretary of Energy Chris Wright served as chief executive before entering government. Liberty was already an early investor in Oklo, and Wright served on the nuclear company’s board. But the new deal is a strategic partnership with a plan to deploy Liberty’s gas equipment alongside Oklo’s reactors, mirroring similar pairings that other small modular reactor developers have promoted.
Oklo is among 127 small modular reactor designs currently under development worldwide, according to a new tally from the Nuclear Energy Agency at the Organisation for Economic Co-operation and Development, the 38-member club of rich countries. Of those designs, 51 are in pre-licensing or licensing processes, and 85 are in active discussion between SMR developers and site owners. Just seven are either operating or under construction.
The Federal Energy Regulatory Commission approved fast-track interconnection processes proposed by the Midcontinent Independent System Operator and the Southwest Power Pool. The new processes will allow power plants to sidestep the standard reviews for a grid hookup. Gas-fired power plants are “likely to be the main beneficiary of the fast-track processes, with standalone batteries also potentially being included,” Utility Dive reported. The American Clean Power Association, the biggest renewable energy lobby, called the decision “a dangerous misstep.”
Southern California’s landmark rule to spur the electrification of certain boilers and water heaters survived a major court challenge. A federal court last week upheld the first-in-the-nation regulation that applies to light-industrial and commercial boilers, steam generators, process heaters, residential pool heaters and tankless water heaters. The ruling, which only applies to the 17 million people in large parts of Los Angeles and its surrounding suburbs, could “help reenergize efforts around the country to replace fossil-fuel-burning equipment with electric heat pumps and other clean technologies,” Canary Media’s Maria Gallucci wrote.
Heatmap’s Emily Pontecorvo reported earlier this week on an effort in Newton, Massachusetts to beat back new gas pipelines block by block. But overall, the fight for electrification has recently faced repeated setbacks. In 2023, a federal court struck down the northern California city of Berkeley’s pioneering ban on new gas hookups, which was replicated in cities across the country. Last year, gas utilities staged something of a coup at the quasi-governmental organization that writes the building codes used in nearly every state.

In a historic decision on Wednesday morning, the International Court of Justice ruled that countries must act on climate change. While non-binding, the verdict from the United Nations’ high court was dubbed “the biggest climate case in history,” as it established the first international legal precedent of a nation state’s responsibility to curb planet-heating emissions.
The tiny South Pacific island republic of Vanuatu called the ruling a “milestone in the fight for climate justice” and vowed to “take the ICJ ruling back to the United Nations General Assembly, and pursue a resolution that will support implementation of this decision,” said Vanuatuan climate minister Ralph Regenvanu. He anticipated opposition from Washington. “Even as fossil fuel expansion continues under the U.S.’s influence, along with the loss of climate finance and technology transfer, and the lack of climate ambition following the U.S.’s withdrawal from the Paris Agreement,” he said, “major polluters — past and present — cannot continue to act with impunity and treat developing countries as sacrifice zones to further feed corporate greed.”
Researchers at Japan’s Shinshu University have demonstrated for the first time that a new eco-friendly plastic made from microbes safely decomposes in deep ocean conditions
“This research addresses one of the most critical limitations of current bioplastics—their lack of biodegradability in marine environments,” said Professor Seiichi Taguchi at the Shinshu’s Institute for Aqua Regeneration. “The study provides a pathway for safer alternatives to conventional plastics and supports the transition to a circular bioeconomy.”
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On Taiwan’s LNG investment, Chinese solar job cuts, and molten chloride fast reactors
Current conditions: Temperatures in Washington, D.C., are climbing up to the mid 80s Fahrenheit today before taking a double-digit plunge as cold air blows in this weekend • California’s biggest utility has warned of looming blackouts as the southern part of the state braces for a potential wildfire • Tropical Storm Trudy is strengthening in the Pacific off the coast of Mexico into what could become a major hurricane.
The Houthis sent a clear signal this week: We are coming for Saudi Arabia’s oil industry. Days after striking Riyadh and scaring Western oil executives away from an industry summit in the Saudi capital, the Iran-backed rebels hit the headquarters of the kingdom’s state energy behemoth, Aramco. Official reports on Tuesday initially downplayed the impact on the sweeping complex in Dhahran, in Saudi Arabia’s oil-rich east. On Wednesday, however, Reuters reported that the missile attack had caused “extensive damage,” including “with a fire spreading across several floors.” Saudi Arabia has at other points during the conflict after proven resilient. After Houthi missiles pulverized a key node on the East-West Pipeline that serves as the main conduit to get oil from the Persian Gulf coast to the Red Sea shore, crews quickly created a workaround to restore the flow of crude. Following a brief uptick, the prices of Brent crude, the global benchmark, and the U.S.-centric West Texas Intermediate both fell on Wednesday. Maybe not for long: The Houthis vowed yesterday to continue targeting oil facilities.
Since shutting down its nuclear plants, Taiwan has become dependent on natural gas for at least half its electricity generation. But the self-governing island democracy doesn’t drill any of the fuel. It’s dependent on imports at a moment when, thanks to the war in Iran, anyone who isn’t producing their own is looking for a cheap, steady supply of liquified natural gas. Taipei has found a supplier. In a Wednesday post on his Truth Social platform, President Donald Trump said Taiwan agreed to buy 30% of the LNG shipped from the proposed $55 billion megaproject to build a gas pipeline from Alaska’s Arctic coast to an export terminal south of Anchorage. As part of the 20-year deal, Trump said the Taiwanese government would pay $4.4 billion for an equity stake in the project. Taiwan’s Ministry of Economic Affairs confirmed the deal and said it would work out the details later.
The pledged investment for the long-delayed project comes days after the Environmental Defense Fund released a new analysis showing that utilities and developers are cooling on clean power and once again pumping money into fossil fuel infrastructure at a rate that could see gas and even coal regain “a market share not seen since the early 2010s.” Amid all this investment, the national average retail price of electricity fell year over year from 20 cents per kilowatt-hour in September 2025 to 19.6 cents per kilowatt-hour last month, according to the freshest data on Heatmap and MIT’s Electricity Price Hub. “Great news, right?” my colleague Matthew Zeitlin wrote yesterday. “Not really.” He explains further: “While this is the first year-over-year decline in average prices since September 2023, it’s mostly due to California moving around its Climate Credit to the late summer months of August and September, historically among the highest-demand periods on the grid. The state previously delivered the credits in April and October. But while this is a nice thing for California ratepayers, it does less to tell us about nationwide electricity price trends.”

China’s top five solar manufacturers cut nearly 41,000 jobs last year as Beijing cracks down on the overcapacity that made exports so cheap Europeans started building fences out of panels. A new Reuters analysis of company filing shows that Longi Green Energy, Trina Solar, Jinko Solar, JA Solar, and Tongwei employed 40,589 fewer people than a year earlier. That 21% drop followed a 31% decline last year. The job cuts represent what the newswire called a “paradox,” in that the solar sales are booming as the world seeks alternatives to Middle Eastern hydrocarbons, yet the biggest manufacturers built too many factories and now no one can make any money.
The shift in China comes as the U.S. scrambles to rebuild its solar manufacturing capacity. Tariffs that Trump implemented, former President Joe Biden maintained, and Trump doubled down on have already set the stage for what my colleague Emily Pontecorvo reported may or may not be a manufacturing resurgence in the U.S. In August, we reported the Department of Commerce’s new trade restrictions were the administration’s lifeline to solar manufacturers that lost a key incentive when federal tax credits went away, taking with them the bonus for buying domestically-produced panels.
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The world has seen experimental reactors that use molten salt as a coolant for a fission reaction fueled by uranium or plutonium. Several startups, including Bill Gates’ TerraPower, are now seeking to commercialize a version of that technology. Recently, the startup partnered with the utility giant Southern Company to examine a whole new possibility: A molten chloride fast reactor that uses liquid salts as both a coolant and a fuel. If that could work, it would be the first in the world. The advantages of the technology, in theory, would be limited enrichment needs, no fuel assemblies of uranium pellets, and a more flexible reactor that can ramp up and down to meet the grid’s needs. On Wednesday, the Department of Energy backed the effort to validate the science behind so-called MCFR reactors. The research will take place at the Idaho National Laboratory and has support from Southern and Core Power, a startup looking to harness fission to power cargo ships.
Is quantum computing a climate technology? Despite overlapping investors, it’s a difficult case to make, my colleague Katie Brigham wrote earlier this year. But the ways in which the technology develops certainly could be a model for other energy breakthroughs. On Wednesday, New York City Mayor Zohran Mamdani unveiled a deal with New York University whereby City Hall will support the construction of a quantum computing lab in exchange for 15% of any proceeds from selling intellectual property developed at the facility. “In the first deal of its kind in NYC history, the public is investing $30 million in a quantum lab — in exchange for three board seats and 15% of the revenue generated from technology it creates,” Lina Khan, the chair of the board of the New York City Economic Development Corporation, wrote in a post on X. “And if any firm coming out of the lab merges, gets acquired, or IPOs, the city gets a payout.”
When the solution to Indonesia’s very modern smog problems was invented, the archipelago nation remained under Dutch colonial rule and the planet was about 1 degree Celsius, or 1.8 degrees Fahrenheit, cooler than it is today. To ease the thick haze in Jakarta and other cities from forest fires the country the country is repurposing a weather-modification technique first invented in the 1940s. Per Bloomberg: “Aircraft will disperse pellets of dry ice above South Sumatra province in an experimental approach that authorities hope will reduce the hazardous smoke that’s blanketed the region for weeks, disrupting economic activity and damaging public health.” The first trial run starts today.
Energy costs remain high — and early voting has begun.
The national average retail price of electricity has fallen year over year from 20 cents per kilowatt-hour in September 2025 to 19.6 cents per kilowatt-hour in September of this year, or about 2%, according to the latest update to Heatmap and MIT’s Electricity Price Hub.
Great news, right?
Not really.
While this is the first year-over-year decline in average prices since September 2023, it’s mostly due to California moving around its Climate Credit to the late summer months of August and September, historically among the highest-demand periods on the grid. The state previously delivered the credits in April and October.
But while this is a nice thing for California ratepayers, it does less to tell us about nationwide electricity price trends. Excluding the credit, average prices would have been roughly flat, according to the MIT researchers. And even with the credit, bills are still rising year over year, at around $180 per month, up from $173 a year ago (though down from this year’s all-time high of $217 in July). Forty-five states and Washington, D.C., have seen their average bills go up over the last year.
The Bureau of Labor Statistics’ recently released inflation figures showed electricity prices rising 0.2% in September from August and 4.4% over the last year, while overall prices rose 0.6% and 3.7%, trends largely driven by increases in the price of gasoline.
As we’ve written about several times before, some of the biggest electricity price increases are in the Northeast and mid-Atlantic. In New York, prices in September were 31.5 cents per kilowatt-hour, up from 30 cents in August and 27 cents in September of last year.
In Maine, which sits at the end of the sparse New England natural gas network, prices have been rising sharply. In September, prices were just under 40 cents per kilowatt-hour, compared to 37 cents in August and 31 cents a year ago. Maine’s public advocate has blamed years of price hikes on natural gas prices, distribution costs — especially repairing infrastructure damaged by storms —and, to a lesser extent, subsidies for renewables.
Maine is just one of several midterm battlegrounds where energy costs have taken center stage, especially since the war in Iran spiked oil prices.
In Ohio, where Sherrod Brown is seeking to return to the Senate by defeating Jon Husted, electricity prices stand at just over 20 cents per kilowatt hour, compared to 18 cents last September, while bills have risen from about $129 a month to $162. Brown leads Husted in the polls by about 4 percentage points, according to Nate Silver’s polling average. Ohio started early voting earlier this month.
Fossil fuels are the real October surprise.
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At this point, the real October surprise may be the lack of one — because little seems set to change in the U.S. energy economy between now and the midterm elections on November 3.
Inflation certainly isn’t budging. Prices rose 3.7% over the past year, and 0.6% in September alone, according to today’s new government inflation report. That reading was hot — a tenth of a percent above what economists expected.
Surging gasoline and especially diesel fuel prices were to blame. Gasoline prices rose 9.1% last month, which pushed up prices above the economy: Transportation services, a category that includes airfare and Uber rides, increased by 0.6%, while food prices rose by 0.6%. (Read my colleague Matthew Zeitlin on how rising diesel costs can jack up food prices.) Staggeringly, fuel oil prices rose 15.3% — an eye-popping reading for a report where figures are usually in the tenth of a percent.
President Trump seems to be running out of time to repair the U.S. energy economy before Americans elect the last Congress of his presidency. His last-minute deal to free up 2.25 millions barrels of oil from Russia this month — with another 11 million or so to come afterward — seems unlikely to lower diesel prices, given that it represents only a few days of U.S. demand. (The deal has already succeeded in undermining Ukraine, however, and led six Republican senators to rebuke him this week.) Meanwhile, Election Day is in 20 days, and Americans are already voting in 20 states.
This is not how the Trump administration was supposed to play out — at least not according to its proponents. Trump in 2024 ran on taming the energy inflation that had plagued President Biden’s last two years in office. He vowed to “drill, baby, drill” and end Biden’s ambitious climate policies, which he called a “Green New Scam.” He even promised to do the bidding of oil company CEOs if they only steered $1 billion to his campaign.
This flagrant offer of quid pro quo may have mortified some in the industry, but it was coherent with the rest of Trump’s pitch: For more than a decade, he has essentially argued that only by surrendering to the fossil fuel industry, by giving oil and gas companies as much regulatory relief as they can stand, can voters finally escape high energy prices. Trump, of course, cemented this pitch in a typically over-the-top and ill-considered proposal, pledging to cut energy prices in half by 2026 or so. That was never going to happen, and its failure to happen has blown up for the president. But the underlying idea was consistent.
The Trump administration has spent the past two years executing this energy agenda. It repealed large swaths of the Inflation Reduction Act, ending incentives to build new solar and wind farms and terminating consumer-side subsidies for electric vehicles. It rolled back fines and rules restricting wasteful methane pollution. It has effectively eliminated fuel efficiency standards for cars and trucks. And it has declared an extralegal war on the wind industry.
And what has happened? Prices have gone up anyway. Gasoline and diesel are more expensive on an inflation-adjusted basis than they were on the day Trump took office. Now, you might argue that this surge is unrelated to the underlying policy, and that gasoline and diesel prices have surged because of the fallout from Trump’s war in Iran — not his domestic energy policy.
But the Iran crisis reveals the problem that Trump would have faced in any event: Oil prices are set on the global market, and neither the domestic oil industry nor the federal government possess the capacity to swing America’s production or consumption enough to affect those prices. Trump’s presidency, in other words, would always have been held hostage by the global energy markets — just as Biden’s was before him.
There is a deeper lesson here: The fossil fuel industry cannot guarantee low prices for consumers in the enduring way that Trump has promised — even if you give it all the regulatory relief that it demands. Nor can the oil, gasoline, and diesel markets deliver the deep energy security or economic stability that American policymakers want — or that voters desire. Trump’s war on Iran has continually been undermined by the American economy’s exposure to crude oil prices; the president is now compromising Ukraine’s defense in order to secure a dubiously small amount of crude. Fossil fuels remain America’s soft underbelly. Policymakers will keep getting poked until the country diversifies its energy system.