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Is international cooperation or technological development the answer to an apocalyptic threat?

Christopher Nolan’s film Oppenheimer is about the great military contest of the Second World War, but only in the background. It’s really about a clash of visions for a postwar world defined by the physicist J. Robert Oppenheimer’s work at Los Alamos and beyond. The great power unleashed by the bombs at Hiroshima and Nagasaki could be dwarfed by what knowledge of nuclear physics could produce in the coming years, risking a war more horrifying than the one that had just concluded.
Oppenheimer, and many of his fellow atomic scientists, would spend much of the postwar period arguing for international cooperation, scientific openness, and nuclear restriction. But there was another cadre of scientists, exemplified by a former colleague turned rival, Edward Teller, that sought to answer the threat of nuclear annihilation with new technology — including even bigger bombs.
As the urgency of the nuclear question declined with the end of the Cold War, the scientific community took up a new threat to global civilization: climate change. While the conflict mapped out in Oppenheimer was over nuclear weapons, the clash of visions, which ended up burying Oppenheimer and elevating Teller, also maps out to the great debate over global warming: Should we reach international agreements to cooperatively reduce carbon emissions or should we throw our — and specifically America’s — great resources into a headlong rush of technological development? Should we massively overhaul our energy system or make the sun a little less bright?
Oppenheimer’s dream of international cooperation to prevent a nuclear arms race was born even before the Manhattan Project culminated with the Trinity test. Oppenheimer and Danish physicist Niels Bohr “believed that an agreement between the wartime allies based upon the sharing of information, including the existence of the Manhattan Project, could prevent the surfacing of a nuclear-armed world,” writes Marco Borghi in a Wilson Institute working paper.
Oppenheimer even suggested that the Soviets be informed of the Manhattan Project’s efforts and, according to Martin Sherwin and Kai Bird’s American Prometheus, had “assumed that such forthright discussions were taking place at that very moment” at the conference in Potsdam where, Oppenheimer “was later appalled to learn” that Harry Truman had only vaguely mentioned the bomb to Joseph Stalin, scotching the first opportunity for international nuclear cooperation.
Oppenheimer continued to take up the cause of international cooperation, working as the lead advisor for Dean Acheson and David Lilienthal on their 1946 nuclear control proposal, which would never get accepted by the United Nations and, namely, the Soviet Union after it was amended by Truman’s appointed U.N. representative Bernard Baruch to be more favorable to the United States.
In view of the next 50 years of nuclear history — further proliferation, the development of thermonuclear weapons that could be mounted on missiles that were likely impossible to shoot down — the proposals Oppenheimer developed seem utopian: The U.N. would "bring under its complete control world supplies of uranium and thorium," including all mining, and would control all nuclear reactors. This scheme would also make the construction of new weapons impossible, lest other nations build their own.
By the end of 1946, the Baruch proposal had died along with any prospect of international control of nuclear power, all the while the Soviets were working intensely to disrupt America’s nuclear monopoly — with the help of information ferried out of Los Alamos — by successfully testing a weapon before the end of the decade.
With the failure of international arms control and the beginning of the arms race, Oppenheimer’s vision of a post-Trinity world would come to shambles. For Teller, however, it was a great opportunity.
While Oppenheimer planned to stave off nuclear annihilation through international cooperation, Teller was trying to build a bigger deterrent.
Since the early stages of the Manhattan Project, Teller had been dreaming of a fusion weapon many times more powerful than the first atomic bombs, what was then called the “Super.” When the atomic bomb was completed, he would again push for the creation of a thermonuclear bomb, but the efforts stalled thanks to technical and theoretical issues with Teller’s proposed design.
Nolan captures Teller’s early comprehension of just how powerful nuclear weapons can be. In a scene that’s pulled straight from accounts of the Trinity blast, most of the scientists who view the test are either in bunkers wearing welding goggles or following instructions to lie down, facing away from the blast. Not so for Teller. He lathers sunscreen on his face, straps on a pair of dark goggles, and views the explosion straight on, even pursing his lips as the explosion lights up the desert night brighter than the sun.
And it was that power — the sun’s — that Teller wanted to harness in pursuit of his “Super,” where a bomb’s power would be derived from fusing together hydrogen atoms, creating helium — and a great deal of energy. It would even use a fission bomb to help ignite the process.
Oppenheimer and several scientific luminaries, including Manhattan Project scientists Enrico Fermi and Isidor Rabi, opposed the bomb, issuing in their official report on their positions advising the Atomic Energy Commission in 1949 statements that the hydrogen bomb was infeasible, strategically useless, and potentially a weapon of “genocide.”
But by 1950, thanks in part to Teller and the advocacy of Lewis Strauss, a financier turned government official and the approximate villain of Nolan’s film, Harry Truman would sign off on a hydrogen bomb project, resulting in the 1952 “Ivy Mike” test where a bomb using a design from Teller and mathematician Stan Ulam would vaporize the Pacific Island Elugelab with a blast about 700 times more powerful than the one that destroyed Hiroshima.
The success of the project re-ignited doubts around Oppenheimer’s well-known left-wing political associations in the years before the war and, thanks to scheming by Strauss, he was denied a renewed security clearance.
While several Manhattan Project scientists testified on his behalf, Teller did not, saying, “I thoroughly disagreed with him in numerous issues and his actions frankly appeared to me confused and complicated.”
It was the end of Oppenheimer’s public career. The New Deal Democrat had been eclipsed by Teller, who would become the scientific avatar of the Reagan Republicans.
For the next few decades, Teller would stay close to politicians, the military, and the media, exercising a great deal of influence over arms policy for several decades from the Lawrence Livermore National Laboratory, which he helped found, and his academic perch at the University of California.
He pooh-poohed the dangers of radiation, supported the building of more and bigger bombs that could be delivered by longer and longer range missiles, and opposed prohibitions on testing. When Dwight Eisenhower was considering a negotiated nuclear test ban, Teller faced off against future Nobel laureate and Manhattan Project alumnus Hans Bethe over whether nuclear tests could be hidden from detection by conducting them underground in a massive hole; the eventual 1963 test ban treaty would exempt underground testing.
As the Cold War settled into a nuclear standoff with both the United States and the Soviet Union possessing enough missiles and nuclear weapons to wipe out the other, Teller didn’t look to treaties, limitations, and cooperation to solve the problem of nuclear brinksmanship, but instead to space: He wanted to neutralize the threat of a Soviet first strike using x-ray lasers from space powered by nuclear explosions (he was again opposed by Bethe and the x-ray lasers never came to fruition).
He also notoriously dreamed up Project Plowshare, the civilian nuclear project which would get close to nuking out a new harbor in Northern Alaska and actually did attempt to extract gas in New Mexico and Colorado using nuclear explosions.
Yet, in perhaps the strangest turn of all, Teller also became something of a key figure in the history of climate change research, both in his relatively early awareness of the problem and the conceptual gigantism he brought to proposing to solve it.
While publicly skeptical of climate change later in his life, Teller was starting to think about climate change, decades before James Hansen’s seminal 1988 Congressional testimony.
The researcher and climate litigator Benajmin Franta made the startling archival discovery that Teller had given a speech at an oil industry event in 1959 where he warned “energy resources will run short as we use more and more of the fossil fuels,” and, after explaining the greenhouse effect, he said that “it has been calculated that a temperature rise corresponding to a 10 percent increase in carbon dioxide will be sufficient to melt the icecap and submerge New York … I think that this chemical contamination is more serious than most people tend to believe.”
Teller was also engaged with issues around energy and other “peaceful” uses of nuclear power. In response to concerns about the dangers of nuclear reactors, he in the 1960s began advocating putting them underground, and by the early 1990s proposed running said underground nuclear reactors automatically in order to avoid the human error he blamed for the disasters at Chernobyl and Three Mile Island.
While Teller was always happy to find some collaborators to almost throw off an ingenious-if-extreme solution to a problem, there is a strain of “Tellerism,” both institutionally and conceptually, that persists to this day in climate science and energy policy.
Nuclear science and climate science had long been intertwined, Stanford historian Paul Edwards writes, including that the “earliest global climate models relied on numerical methods very similar to those developed by nuclear weapons designers for solving the fluid dynamics equations needed to analyze shock waves produced in nuclear explosions.”
Where Teller comes in is in the role that Lawrence Livermore played in both its energy research and climate modeling. “With the Cold War over and research on nuclear weapons in decline, the national laboratories faced a quandary: What would justify their continued existence?” Edwards writes. The answer in many cases would be climate change, due to these labs’ ample collection of computing power, “expertise in numerical modeling of fluid dynamics, and their skills in managing very large data sets.”
One of those labs was Livermore, the institution founded by Teller, a leading center of climate and energy modeling and research since the late 1980s. “[Teller] was very enthusiastic about weather control,” early climate modeler Cecil “Chuck” Leith told Edwards in an oral history.
The Department of Energy writ large, which inherited much of the responsibilities of the Atomic Energy Commission, is now one of the lead agencies on climate change policy and energy research.
Which brings us to fusion.
It was Teller’s Lawrence Livermore National Laboratory that earlier this year successfully got more power out of a controlled fusion reaction than it put in — and it was Energy Secretary Jennifer Granholm who announced it, calling it the “holy grail” of clean energy development.
Teller’s journey with fusion is familiar to its history: early cautious optimism followed by a realization that it would likely not be achieved soon. As early as 1958, he said in a speech that he had been discussing “controlled fusion” at Los Alamos and that “thermonuclear energy generation is possible,” although he admitted that “the problem is not quite easy” and by 1987 had given up on seeing it realized during his lifetime.
Still, what controlled fusion we do have at Livermore’s National Ignition Facility owes something to Teller and the technology he pioneered in the hydrogen bomb, according to physicist NJ Fisch.
While fusion is one infamous technological fix for the problem of clean and cheap energy production, Teller and the Livermore cadres were also a major influence on the development of solar geoengineering, the idea that global warming could be averted not by reducing the emissions of greenhouse gas into the atmosphere, but by making the sun less intense.
In a mildly trolling column for the Wall Street Journal in January 1998, Teller professed agnosticism on climate change (despite giving that speech to oil executives three decades prior) but proposed an alternative policy that would be “far less burdensome than even a system of market-allocated emissions permits”: solar geoengineering with “fine particles.”
The op-ed placed in the conservative pages of the Wall Street Journal was almost certainly an effort to oppose the recently signed Kyoto Protocol, but the ideas have persisted among thinkers and scientists whose engagement with environmental issues went far beyond their own opinion about Al Gore and by extension the environmental movement as a whole (Teller’s feelings about both were negative).
But his proposal would be familiar to the climate debates of today: particle emissions that would scatter sunlight and thus lower atmospheric temperatures. If climate change had to be addressed, Teller argued, “let us play to our uniquely American strengths in innovation and technology to offset any global warming by the least costly means possible.”
A paper he wrote with two colleagues that was an early call for spraying sulfates in the stratosphere also proposed “deploying electrically-conducting sheeting, either in the stratosphere or in low Earth orbit.” These were “literally diaphanous shattering screens,” that could scatter enough sunlight in order to reduce global warming — one calculation Teller made concludes that 46 million square miles, or about 1 percent of the surface area of the Earth, of these screens would be necessary.
The climate scientist and Livermore alumnus Ken Caldeira has attributed his own initial interest in solar geoengineering to Lowell Wood, a Livermore researcher and Teller protégé. While often seen as a centrist or even a right wing idea in order to avoid the more restrictionist policies on carbon emissions, solar geoengineering has sparked some interest on the left, including in socialist science fiction author Kim Stanley Robinson’s The Ministry for the Future, which envisions India unilaterally pumping sulfates into the atmosphere in response to a devastating heat wave.
The White House even quietly released a congressionally-mandated report on solar geoengineering earlier this spring, outlining avenues for further research.
While the more than 30 years since the creation of the Intergovernmental Panel on Climate Change and the beginnings of Kyoto Protocol have emphasized international cooperation on both science and policymaking through agreed upon goals in emissions reductions, the technological temptation is always present.
And here we can perhaps see that the split between the moralized scientists and their pleas for addressing the problems of the arms race through scientific openness and international cooperation and those of the hawkish technicians, who wanted to press the United States’ technical advantage in order to win the nuclear standoff and ultimately the Cold War through deterrence.
With the IPCC and the United Nations Climate Conference, through which emerged the Kyoto Protocol and the Paris Agreement, we see a version of what the postwar scientists wanted applied to the problem of climate change. Nations come together and agree on targets for controlling something that may benefit any one of them but risks global calamity. The process is informed by scientists working with substantial resources across national borders who play a major role in formulating and verifying the policy mechanisms used to achieve these goals.
But for almost as long as climate change has been an issue of international concern, the Tellerian path has been tempting. While Teller’s dreams of massive sun-scattering sheets, nuclear earth engineering, and automated underground reactors are unlikely to be realized soon, if at all, you can be sure there are scientists and engineers looking straight into the light. And they may one day drag us into it, whether we want to or not.
Editor’s note: An earlier version of this article misstated the name of a climate modeler. It’s been corrected. We regret the error.
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Current conditions: The devastating 7.4-magnitude earthquake that struck Colombia has left at least 111 dead • Severe thunderstorms once again caused ground stops at New York City’s airports, stranding your correspondent at Chicago O’Hare for the entire afternoon • Tropical Storm Chan-Hom is battering Tokyo.
The United States sweltered through its hottest month in more than 130 years of analysis, breaking records set during the 1930s Dust Bowl. The average temperatures in the lower 48 states in July came out to 76.89 degrees Fahrenheit, 0.12 degrees above the value from July 1936. “Those who deny or dismiss U.S. climate change have hit a Waterloo moment of sorts,” wrote Yale Climate Connections.
The water levels in Lake Mead, meanwhile, have dropped to a record low as drought parches the American West. “This is a significant wake-up call,” J.B. Hamby, chairman of the Colorado River Board of California and the state’s lead negotiator, told The New York Times. “We need to have long-term solutions that are going to get us away from the precipice.”
For years, the world’s great powers have jockeyed for control of the Arctic as climate change thawed sea ice enough to open new shipping routes across the frigid polar region. Now China is poised to launch its first regular container shipping service through the frigid North. On Monday, the Financial Times reported that Sea Legend, a Chinese cargo vessel that delivers to ports in Turkey and North Africa, will begin weekly service through the Arctic with a route following Russia’s northern coastline. Beijing is calling the approach its “Ice Silk Road.”
The Trump administration, meanwhile, told researchers Monday that it would stop funding the National Oceanic and Atmospheric Administration's lead report on how climate change is affecting the Arctic, Politico reported.
The Trump administration won federal approval to reconsider the environmental review for the stalled Atlantic Shores offshore wind project off Atlantic City, New Jersey. Previously a joint venture between the French energy giant EDF and the oil behemoth Shell until the latter company pulled out following Trump’s reelection, the remaining developer had argued in court that the approval process completed under the Biden administration could not be reopened. While the company “points to various ways that it believes that Congress has limited” the Department of the Interior’s authority to reconsider a review, “none speak with the exquisite specificity to undercut” the government’s right to remand the approval, according to court documents Heatmap obtained last night. Acknowledging the potential for the White House to bog down the procedure in bureaucracy, the court said it will require the Trump administration to provide a status report for why a 120-day deadline for revisiting the review would not be possible. My colleague Jael Holzman had put the project on death watch last year.
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If you listened to any of Tesla’s recent earnings calls, you know that Elon Musk has a lot of big plans for the company that don’t involve luxury electric vehicles with large in-dash homescreens. The company wants to mass produce humanoid robots. It’s promised to basically double America’s output of solar panels. And it’s aiming to build a $16.8 billion chip factory to rival Taiwan’s semiconductor industry. Yet that facility won’t be powered by Tesla’s solar. Instead, Musk said that his other company, SpaceX, will set up batteries and natural gas to keep the lights on for the plant. “The plant sits on the site of a former coal-fired power plant, and SpaceX plans to power it with newly built natural gas plants and batteries,” Electrek reporter Fred Lambert wrote. “So the compute future gets built on the same fossil ground as the past. Just swap coal for gas.”
At the start of the Iran War, a four-dimensional chess interpretation of President Donald Trump’s motivations posited that the conflict was actually about asserting control over China’s supply of hydrocarbons. Six months into the war, The Economist has declared China “the world’s great oil power.” Despite relatively limited domestic supplies, the People’s Republic managed to seize control over its energy fate through stockpiling, restricting exports, and curbing domestic demand by, for example, encouraging city dwellers to take mass transit and or cycle over driving. Among the other ways Beijing is limiting demand, as I have written previously: It’s pouring money into green hydrogen, ammonia, and methanol.

Puerto Rico’s blackouts got worse last year without extreme weather bringing on the outages. The latest data from the U.S. Energy Information Administration shows that the island’s beleaguered ratepayers suffered an average of 36 hours of power interrupts that were not caused by major events such as hurricanes. That’s 19% more than in 2024. Between 2021 and 2025, Puerto Ricans experienced a combined average of 29 hours of power loss each year.
The president has paid $4 billion to kill projects that were already dying or dead.
At a certain level, it defies belief: The Trump administration is spending nearly $4 billion … for nothing.
It’s paid something for nothing at least five times now. Last week, the administration reached a $1.2 billion deal with the German energy company RWE to not build three wind farms, including a large installation off the coast of New Jersey. The Chicago-based developer Invenergy signed a separate deal in June. It’s not clear these deals are legal, yet they keep happening.
These agreements mark the formal end of the first American offshore wind boom, which began in the late 2010s and stepped up during the Biden administration. This buildout, alas, never quite found its sea legs. As recently as February 2022, you could squint at the horizon and imagine that 14 gigawatts of turbines might soon spin along the East Coast. Now, we’ll be lucky to get more than six gigawatts by the end of the decade.
That’s a lot of lost generation capacity — and as I’ve repeatedly written, its absence is going to be a problem for the northeastern United States. The Mid-Atlantic and New England, which were set to receive some of the largest offshore facilities, will still need a lot more new electricity in the years to come, especially during winters. (New York City, for instance, now avoids blackouts by relying on two aging barge-mounted power plants parked in the East River.) And while many of the developers who received President Trump’s payouts pointed to fossil fuel investments in their press releases — as if to imply that those other projects were “replacing” the lost wind farms — relatively few of the power plants mentioned will be built in the Northeast.
Yet there’s another weird aspect of these offshore deals that I haven’t focused on as much: Why are they happening in the first place? That’s the subject of a helpful new article published today by James Sallee, an economics professor at UC Berkeley. He observes that many of the offshore wind projects that the Trump administration has now paid to “cancel” were struggling financially long before January 20, 2025. Few of the farms, if any, would have been built under any administration. So why, exactly, is Trump paying off their developers?
Let’s roll the tape. More than four years ago, the Biden administration held the country’s largest offshore auction ever for a set of promising offshore-wind sites along the Atlantic coast. That brought in more than $4 billion; as part of it, a German company named RWE placed a record-shattering bid for a particularly promising area off New Jersey’s coast. The date? February 25, 2022.
As it turned out, that auction was not the most important thing that happened that week in global energy markets — or world history. A day earlier, Russian troops began their full-scale invasion of Ukraine, igniting a geopolitical firestorm that ultimately ushered in an era of tighter energy supplies, rampant inflation, and higher interest rates. Although the offshore developers could not have known it then, those three trends would reshape the economics of their projects. That’s because offshore wind farms — far more than solar, battery, or gas plants — require titanic upfront investment, as Sallee writes:
Offshore wind is extremely capital intensive: enormous costs come up front, while revenue arrives over decades. Inflation raised the cost of steel, turbines, vessels, and labor. Higher interest rates reduced the present value of future revenue and raised financing costs. Where developers signed fixed-price contracts, developers were left holding the capital cost risk when conditions changed.
Unit economics started to deteriorate, and costs ballooned. Projects started to fail as early as October 2023, when Orsted canceled its Ocean Wind 1 and 2 projects slated for the New Jersey coast. I remember talking to an energy expert at the time who mused that for the same per-megawatt cost as an offshore wind farm, the state might as well just build a new Westinghouse nuclear reactor. (Its governor Mikie Sherrill is now exploring doing just that.)
By the time President Trump took office, in other words, many offshore wind projects were already on financial life support, if not deceased. Given the real underlying shift in project economics, that should have decreased the value of developers’ offshore leases — which are, as Sallee writes, more of an option than a permit, because they give a developer the right to study an area but do not authorize construction per se.
Yet over the past year, the Trump administration has reimbursed five developers largely in full, and it hasn’t gotten much in return. Perhaps that’s what the administration needed to do in order to fully kill these projects without risk of future legal sanction. Yet it is … strange. “The deals relate to development rights that look uneconomic today, even before the buyouts,” Sallee says. “The buyouts may limit how quickly offshore wind could rebound in a future economic and policy environment, but as of today it seems as though the government just spent $3.9 billion of taxpayer dollars spent to shoot a corpse.”
I wonder if that description undersells it. In a certain light, the government isn’t really shooting the corpse so much as handing it big wads of cash. Since the first of these deals were announced, I’ve struggled with what to call them — buyouts? payouts? — but Sallee’s post (which you should go read in full) made me wonder if bailout is the best option. After all, imagine if a hypothetical President Kamala Harris had reimbursed this same set of companies for the full value of their failed offshore wind bets — and used the Justice Department’s permanent and technically unlimited Judgement Fund to do it. What would journalists say then? How would Republicans respond?
Or to make the analogy truly work, I suppose, imagine that a President Harris had bailed out oil companies for some overly exuberant bet made during an earlier Republican administration, then claimed (with dubious evidence) that they would use the refunds to build renewables. That would still be an enormous waste of public money, but it would scramble the politics somewhat, perhaps evoking astonished embarrassment from her allies and delighted confusion from her opponents. Which might — to return to our world — mirror some of the response we’re seeing to Trump’s wind payouts.
As electricity prices rise, the stakes for the leaders of states like Virginia, Pennsylvania, and Indiana are only getting higher.
Governors are increasingly throwing their weight around in the technocratic and often obscure utility ratemaking process. The latest example is Virginia Governor Abigail Spanberger, who last week published a Washington Post op-ed announcing that she would intervene in the attempted acquisition of the state’s dominant utility, Dominion, by Florida utility and energy development company NextEra Energy.
Spanberger is “deeply skeptical about whether selling our primary state-regulated utility to an out-of-state company is good for the commonwealth,” she wrote. While she didn’t go so far as to oppose the merger, she did insist that NextEra maintain jobs in the state, comply with Virginia’s clean energy goals, and come up with cost savings for Virginians. And while the state’s utility regulators will make the ultimate decision themselves, she said, she wanted to use her leverage as the state’s highest ranking and most visible elected official “to make sure Virginians have a voice in the process.”
It’s not unheard of for a governor to try to influence utility regulators by picking members of state utility commissions — or simply by haranguing them. But as electricity bills rise to their highest level ever, according to Heatmap and MIT’s Electricity Price Hub, governors in particular have started responding to pressure from voters to do something — anything — about it.
In New Jersey, Governor Mikie Sherrill won office in part by promising to freeze electricity rates — then used her influence over the utility regulators to make it happen.
In Indiana, Governor Mike Braun replaced the head of the state utility regulator after his predecessor agreed to a rate increase from the utility AES Indiana.
In North Carolina, Governor Josh Stein publicly called on the state’s dominant utility, Duke Energy, to reduce a rate increase request.
And the whole PJM Interconnection market, which includes Indiana, Virginia, and New Jersey, exists under a capacity price cap worked out in litigation initiated by Pennsylvania Governor Josh Shapiro, who has also led an effort alongside the White House to procure more generation and pressured the utility PECO to withdraw a rate case.
“Governor Shapiro is maybe the pioneer of this,” Eric Miller, the interim vice president of the states program at Evergreen Action and a former climate and energy official under former New Jersey Governor Phil Murphy, told me. “Legislators, they hear from their constituents about utility issues, whether it’s shut-offs or high prices. They go to their elected officials, and those elected officials engage with the governor’s office,” he said.
Utility regulation and ratemaking exists in a netherworld between public policy and private business. Most customers in the U.S. are served by investor-owned electric utilities, but the prices they pay are set by boards whose members are typically appointed by governors after a long, quasi-judicial process.
The process by which rates are set is wonky by design, with thousands of pages of filings and analysis explaining what costs need to be recovered at what rate paid by ratepayers. “Intervening” in a public service commission decision typically involves quietly slipping a document into a large docket, to be seen solely by utility regulators and lawyers (plus a few enterprising reporters.) To the extent the public or elected officials get to weigh in, it’s often through non-governmental advocacy groups or state officials designated as advocates for the public.
That governors are now openly taking responsibility for such a painfully bureaucratic process is “an indication of just how central utility rates are to overall energy affordability concerns that governors are hearing,” Jeff Dennis, executive director of the Electricity Customer Alliance and a former Department of Energy and Federal Energy Regulatory Commission official, told me.
With prices as high as they are, “the stakes are higher, and so the governors feel like in order to fulfill their campaign promises or their job as the top elected official in the state, that they’ve got to be directly heard,” he said. In Virginia, for example, typical bills have grown over 45% in the past five years, and by almost 12% in the past year alone.
When it comes to assigning responsibility for high electricity prices, Americans are most likely to blame their state government and their utility (and, increasingly, data centers), according to Heatmap polling.
Governors, who have a direct mandate from the public, can exert a unique countervailing force in a process that many critics argue is weighted towards utility interests. “Despite a lot of fences to prevent regulatory capture and rent seeking, it happens,” Miller said, “and having an executive weigh in directly can shake that up.”
There are risks, however, to governors getting more directly involved in the ratemaking process. One is that it could encourage short-term thinking, leading to measures that hold down prices at the expense of potentially necessary investments to maintain reliability or building out the infrastructure necessary to bring on new sources of power like wind and solar.
On top of that, “There’s certainly always a risk that the proceedings get more political,” Dennis told me. But he noted that ultimately, it’s utility commissions making the decisions, and they’re obligated to provide a record of filings and data to support their decisions.
Governors getting involved more formally could also have upsides, Dennis said, by shining a spotlight on the process that ultimately affects every resident and business in the state. “It brings a lot more spotlight to how utilities are making decisions about investments and how customers are impacted by those decisions, and I don’t think that that’s necessarily a bad thing.”
Governors also have a different set of mandates and responsibilities than the utilities do. While utilities have a mandate to provide reliable electric service — and thus spend whatever they can convince their regulators is necessary to do so — Miller argued that governors have to balance reliability and affordability for their constituents.
“The regulatory monopoly that utilities have is a political creation made by the elected officials in that jurisdiction.” Miller told me. “It is well within the authority of those same elected officials to decide to take a very hard look at whether that model is delivering the type of outcome that they want.”