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Whatever your motivation for buying an electric vehicle, here’s the thing: The first day you own one, you’re going to love it.
Forget the fears that come with a new technology, the negativity that stems from the politicization of EVs ownership, or the dead-and-buried stereotype that EVs are slow and boring rides for greenies only. Electric cars are zippy and fun because, unlike gas cars, they can produce a ton of torque from a resting stop. After a lifetime of listening to a car rattle and roar, I can say from experience that you’ll find driving in electric silence to be a revelation. An EV owner wakes up every morning with the equivalent of a full tank of gas because their home is their gas station.
Want a piece of this bliss? If so, then read on.
Brian Moody, an executive editor at Cox Automotive (which owns Kelly Blue Book) and an author specializing in transportation, automotive, and electric cars.
Joseph Yoon, consumer insights analyst for the automotive agency Edmunds.
Loren McDonald, CEO of EVAdoption, which provides data analysis and insights about the electrification of the car industry.
“That’s who the PHEV is for,” Moody told me. “You can do your errands around town with 30 to 40 miles, and when the battery runs out, you just keep driving.”
Ask nearly any EV expert and you’ll hear the same thing: “People don’t drive nearly as far as they think they do,” Moody said. Most of us put the vast majority of miles on our cars within a few dozen miles of our homes, running kids around town or driving to work. You’ll use up a small amount of your battery by the time you get home, plug in, and wake up the next day fully charged. Road trips may seem daunting to the uninitiated, but the interstates are now lined with fast-chargers and the number of them is growing quickly.
Building an EV generates more carbon emissions than building a gas car, a difference that’s due to mining and creating materials for the battery. But that’s just manufacturing a vehicle; once it’s built, it has a decade or two of driving ahead of it. A combustion car constantly spews carbon as it burns fossil fuels, which dwarfs the amount it takes to make an EV. Don’t forget: An electric car gets greener as the grid gets greener. The more clean energy is added to the world’s electrical supply, the better EVs get in comparison to gas cars. You’d need to live in a state with an especially dirty energy grid, such as Wyoming or West Virginia, for an EV not to be a much better option than driving around on gasoline. Furthermore, McDonald said, you can forget the propaganda that suggests EV batteries wind up stacked in a landfill somewhere when the cars meet their end. A growing number of companies are ready to recycle EV batteries and retrieve the precious metals therein, while it’s likely that lots of batteries will find a second life in applications such as grid storage.
It’s true that price has long been one of the biggest barriers to EV adoption. Even though tax incentives — together with savings on fuel and maintenance — make many electrics cost-competitive with their gas counterparts in the long term, their high sticker price keeps many people away. But more electric models are beginning to creep down toward the cost of entry-level gasoline cars.
As with buying an old-fashioned gas-guzzler, going to the dealership to get an EV means dealing with pushy salespeople, confusing specs, and haggling over the price. The process can be doubly frustrating for the EV shopper given the relative unavailability of some electric models and reports of some car salespeople who know frustratingly little about the very EVs they hock.
If you live in a market where EVs have taken hold, like the San Francisco Bay Area, expect knowledgeable salespeople who can walk you through the EV buying process. If you live someplace where few electrics are sold, then the experience may be hit-or-miss. Do your own research, and prepare to be your own advocate.
For a long time, things were simple: If you bought an electric vehicle, then you could take a $7,500 credit on your taxes for that year. But things have gotten murkier in the past year or two — in a bid to protect domestic manufacturing, Congress passed new rules stating that a certain amount of the car and its components had to be made in the U.S. to qualify, leaving a confusing, shifting picture of which EVs qualify and which don’t. (To wit: Many Teslas qualify, Hyundais and Kias don’t, while Rivians receive only half the credit because they’re so expensive.) The upside of the changed rules is that buyers are now allowed to get tax credits on leasing an EV, or to receive the credit as an up-front discount on their new EV. Many states have generous incentives, too. Washington, for example, will give up to $9,000 in rebates for buying an EV. “There are enormous discounts on basically every EV on the market, even before we count the $7,500 with the federal tax credit,” Yoon told me.
Before you take the plunge, take a moment and really think about how you drive — because lots of people overestimate what they need. Maybe even keep notes and check your mileage every day for a week or two to find out how much you really use the car versus how much you think you do. If you find that you could get around town on a few dozen miles of charge but road trip every other weekend, then you might consider a plug-in hybrid. If you’ve already got a gas car or hybrid to handle longer trips and are shopping for a second vehicle, there’s no reason not to go for an EV, assuming you can afford one. If you just need basic transportation to take you a few miles to work, hate the idea of ever buying gas again, and want to spend as little as possible … maybe you should get an e-bike.
A refresher: When you buy a car, you typically put a downpayment on the vehicle, and then borrow enough money from the bank to pay off the rest of its price (plus interest and sales tax) in monthly payments over the course of four, five, or even more years. Leasing is like renting an apartment. You put down a deposit and then pay monthly over the course of the lease, typically three years. But like your rent, those payments don't go toward owning the car. At the end of the lease, you give it back. With EVs especially, there are some serious advantages and drawbacks to each approach you should keep in mind.
If you live in a century-old house that would need to have significant rewiring done to accommodate an EV charger, then installing a Level 2 charger might be too expensive, so you might want to stick to a plug-in hybrid. (Again, more on charging below.) Does your office have a charger? If you live in an apartment, does the parking lot have chargers?
“How you refuel your EV is similar to how you charge your smartphone — you do it either throughout the day or at night before you go to bed. You plug in, you wake up, and it's full,” McDonald said.
“The first thing I tell people? You should probably get a Tesla,” Moody told me. Still, Elon Musk’s electric car company isn’t the darling it once was. Tesla has squandered a huge lead in the EV market by focusing on vanity projects like the Cybertruck and lost a chunk of public goodwill through Musk’s misadventures in politics and social media. But the company still has an ace up its sleeve with the Supercharger network, which is better and more reliable than the competition. This will change in the coming years, as the other automakers have adopted Tesla’s plug and their future cars will be able to use Superchargers. But for now, it’s a major advantage that makes owning a Tesla a lot less stressful than trying to get by with a competitor’s EV, especially if you make road trips. For this reason, Tesla’s Model Y — the best-selling car in the world in 2023, and the best-selling EV in America — remains a compelling choice for anyone who wants an EV to be their only car and have it go nearly anywhere.
Don’t want Musk to get your money? Fret not. EV offerings from legacy car companies and new automakers are leaps and bounds better than they were five years ago when Tesla took over the industry. Hyundai and its subsidiary Kia, in particular, have outpaced other carmakers in offering fun and practical EVs. The new Kia EV9 is the best choice for buyers who want a true EV with three rows so they can accommodate six or seven passengers, and it’s a sleek-looking vehicle for its size. Its $57,000 starting price is not cheap, but it’s probably the best deal you can get for a true three-row electric vehicle right now.
The Ioniq 5 is a quirky mashup of a crossover and a hatchback. It’s got enough space to be practical as a family vehicle, but its dimensions aren’t quite like anything else on the market. In the EV-laden part of Los Angeles where I live, it’s the most common non-Tesla electric I come across.
Introduced in 2021, the F-150 Lightning’s game-changing feature is two-way, or “bidirectional,” charging — you can plug into your house and use the energy stored in the truck’s battery to back up your home’s power supply in case of a blackout. Chevy is following suit by putting this tech into the Silverado EV. But even if you’re just driving and not powering your home, the Lightning is impressive — its standard battery produces 452 horsepower, but that number can climb to 580 on more expensive versions, and both offer a ton of torque.
Today’s Rivians are luxury lifestyle vehicles, but they offer a lot for all that cash. The R1 vehicles are spacious and well-appointed on the interior while offering lots of power and range for the off-road lifestyle the brand projects — the high-end version of the SUV gets 410 miles of range with 665 horsepower. Other excellent luxury EVs at the top end of the market include the Lucid Air and Mercedes EQS, but the Air has the space limitations of a sedan (though it is a large one) and the Benz is likely to cost more than $100,000. Rivians are pricey, but they’re not that pricey.
The people’s affordable EV champion, the Chevy Bolt, got the ax last year, but GM has promised to bring it back for people who want a smallish EV that doesn’t cost a fortune. In the meantime, the “SE” version of the Hyundai Kona EV, a small SUV, starts around $36,000 and gets 261 miles of range. (There’s an even cheaper version with 200 miles of range, but trust me: Don’t buy any new EV with less than 250 miles of range — e.g. the Nissan Leaf, Fiat 500, Mini Cooper, or Subaru Solterra — unless you really, really like it.) Chevy finally electrified its huge-selling SUV and rolled out the Equinox EV; while it starts at $41,000 now, GM promises a $35,000 version soon to come.
There are a wide variety of PHEVs that are worth a look, but an especially compelling option is the Toyota Prius Prime. The entire Prius family of hybrids and plug-in hybrids just got a facelift for 2023 that is miles ahead of the frumpy, aging look the car previously had. And where the previous Prius Prime was limited to a puny 25 miles of electric range, today’s will do 44 — enough for lots of people to do their daily city driving without burning any gas.
Some vocabulary to get you started:
Since charging at home is the make-or-break feature that will make your electrified life more convenient than your gas-burning days, your first order of business is getting a Level 2 charger installed. You’re going to need an electrician for this one, since it requires stepping up the voltage (and might require installing a new breaker panel or running new wiring, depending upon your home). Be sure to get multiple quotes so you can compare work estimates and prices.
“When you buy from an EV dealer or Tesla or whomever, they might refer you to an electrician or an installer. There are companies that have services and websites where they do all the work for you. You plug in your address and information, and they'll recommend and refer you to an installer,” McDonald said.
How much this’ll cost you varies by where you live and how much work it’ll take to set up your home, but the national average is $1,200 to $1,500, McDonald says. The exception could be older houses that were not set up for anything close to the electrical load it takes to charge a car, so if you own a hundred-year-old home in New England with lots of original wiring, you might be in for a shock. Don’t forget, however, that lots of incentives are available for setting up EV infrastructure at your home. You might be eligible for a tax credit equal to 30 percent of the cost up to $1,000.
As far as charging away from home? Most EVs automatically show nearby charging stations on their touchscreen navigation systems and will route you to the necessary stops along a long drive. Teslas will even show you how many stalls are available at a given Supercharger and how many other cars are en route. As an EV driver, you’ll get to know the fast-chargers in your neighborhood and along your familiar highways, but you’ll also get to know sites like Plugshare that will display every charger of every speed and every plug throughout that country — invaluable for planning a journey.
As you get comfortable with your own driving habits, you’ll figure out whether you need to expand your choices by purchasing adapters or dongles that let your car charge at different kinds of plugs. For example, today’s non-Tesla EVs eventually will be able to charge at Tesla superchargers, but because they are still being built with the competing CCS standard, you’d need an adapter to allow today’s Ford Mustang Mach-E to use a Tesla plug. I have an adapter in my Tesla Model 3 to use the “J1772” plugs you find on the Level 2 charger at the grocery store, and I bought one for the NEMA 14-50 plugs common at an RV campsite — just in case I really get into trouble out there.
When a car brakes to slow down, energy is lost. But in an EV, some of it can be recaptured via regenerative braking, a system that captures the energy from waste heat and puts it back into the battery. This allows for an experience unavailable to the gasoline motorist called one-pedal driving: Take your foot off the accelerator and the car immediately slows itself down via the regenerative braking system. When I drive my Tesla Model 3, I only hit the brake pedal when I need to slow down in a big hurry; otherwise, I let off the accelerator and let the car coast to a stop. This system can add several miles of range back onto the battery if you’re coasting out of the mountains on a steep downgrade.
A word of warning: Many people don’t like regenerative braking, at least at first, because it feels jerky to have the car instantly slow itself down when you let off the accelerator. But trust me, you’ll get better and better at letting off the pedal slowly so you don’t make your passengers nauseous. It’s also possible in many vehicles to turn down the regen so it’s less aggressive.
For starters, think of all the car vocabulary you won’t need anymore. An EV’s power output can be measured in torque and horsepower, but say goodbye to combustion-specific vernacular like spark plugs, cylinders, pistons, or liters as a measure of engine size (unless you get a plug-in hybrid). No more mufflers, no exhaust or timing belts. An EV has no use for miles per gallon, though carmakers and the EPA try to measure an electric car’s efficiency in miles per gallon equivalent as a way to compare them with gas cars.
As the months and years go by, you’ll appreciate a number of differences in the EV owner’s lifestyle. Drivers needn’t bother with remembering the pesky oil change every 3,000 miles, nor with worrying about the lifespans of thousands of moving parts that come with internal combustion. (On the other hand, today’s EVs burn through tires faster than gas cars do because of their weight and their performance.)
There’s a lot more to learn, of course. Just remember: The first time you bypass the gas station — with its stinky fumes and pesky commercials screaming at you — to refuel your car in the comfort of your home, you’ll wonder why you waited so long.
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The cost crisis in PJM Interconnection has transcended partisan politics.
If “war is too important to be left to the generals,” as the French statesman Georges Clemenceau said, then electricity policy may be too important to be left up to the regional transmission organizations.
Years of discontent with PJM Interconnection, the 13-state regional transmission organization that serves around 67 million people, has culminated in an unprecedented commandeering of the system’s processes and procedures by the White House, in alliance with governors within the grid’s service area.
An unlikely coalition including Secretary of Energy Chris Wright, Secretary of the Interior Doug Burgum, and the governors of Indiana, Ohio, Virginia, West Virginia, Tennessee, and Kentucky (Republicans), plus the governors of Maryland, Pennsylvania, Delaware, Illinois, Michigan, New Jersey, and North Carolina (Democrats) — i.e. all 13 states of PJM — signed a “Statement of Principles” Friday demanding extensive actions and reforms to bring new generation onto the grid while protecting consumers.
The plan envisions procuring $15 billion of new generation in the region with “revenue certainty” coming from data centers, “whether they show up and use the power or not,” according to a Department of Energy fact sheet. This would occur through what’s known as a “reliability backstop auction,” The DOE described this as a “an emergency procurement auction,” outside of the regular capacity auction where generation gets paid to be available on the grid when needed. The backstop auction would be for new generation to be built and to serve the PJM grid with payments spreading out over 15 years.
“We’re in totally uncharted waters here,” Jon Gordon, director of the clean energy trade group Advanced Energy United, told me, referring to the degree of direction elected officials are attempting to apply to PJM’s processes.
“‘Unprecedented,’ I feel, is a word that has lost all meaning. But I do think this is unprecedented,” Abraham Silverman, a Johns Hopkins University scholar who previously served as the New Jersey Board of Public Utilities’ general counsel, told me.
“In some ways, the biggest deal here is that they got 13 governors and the Trump administration to agree to something,” Silverman said. “I just don't think there's that many things that [Ohio] Governor [Mike] DeWine and or [Indiana] Governor [Mike] Braun agree with [Maryland] Governor [Wes] Moore.”
This document is “the death of the idea that PJM could govern itself,” Silverman told me. “PJM governors have had a real hands off approach to PJM since we transitioned into these market structures that we have now. And I think there was a real sense that the technocrats are in charge now, the governors can kind of step back and leave the PJM wrangling to the public service commissions.”
Those days are over.
The plan from the states and the White House would also seek to maintain price caps in capacity auctions, which Pennsylvania Governor Josh Shapiro had previously obtained through a settlement. The statement envisions a reliability auction for generators to be held by September of this year, and requested that PJM make the necessary filings “expeditiously.”
Shapiro’s office said in a statement that the caps being maintained was a condition of his participation in the agreement, and that the cost limit had already saved consumers over $18 billion.
The Statement of Principles is clear that the costs of new generation procured in the auction should be allocated to data centers that have not “self-procured new capacity or agreed to be curtailable,” a reference to the increasingly popular idea that data centers can avoid increasing the peak demand on the system by reducing their power usage when the grid is stressed.
The dealmaking seems to have sidestepped PJM entirely, with a PJM spokesperson noting to Bloomberg Thursday evening that its representatives “ were not invited to the event they are apparently having” at the White House. PJM also told Politico that it wasn’t involved in the process.
“PJM is reviewing the principles set forth by the White House and governors,” the grid operator said in a statement to Heatmap.
PJM also said that it would be releasing its own long-gestating proposal to reform rules for large load interconnection, on which it failed to achieve consensus among its membership in November, on Friday.
“The Board has been deliberating on this issue since the end of that stakeholder process. We will work with our stakeholders to assess how the White House directive aligns with the Board’s decision,” the statement said.
The type of “backstop procurement” envisioned by the Statement of Principles sits outside of PJM’s capacity auctions, Jefferies analysts wrote in a note to clients, and “has been increasingly inevitable for months,” the note said.
While the top-down steering is precedent-breaking, any procurement within PJM will have to follow the grid’s existing protocols, which means submitting a plan and seeking signoff from the Federal Energy Regulatory Commission, Gordon told me. “Everything PJM does is guided by their tariffs and their manuals,” he said. “They follow those very closely.”
The governors of the PJM states have been increasingly vocal about how PJM operates, however, presaging today’s announcement. “Nobody really cared about PJM — or even knew what they PJM was or what they did — until electric prices reached a point where they became a political lightning rod,” Gordon said.
The Statement is also consistent with a flurry of announcements and policies issued by state governments, utility regulators, technology companies, and the White House this year coalescing around the principle that data centers should pay for their power such that they do not increase costs for existing users of the electricity system.
Grid Strategies President Rob Gramlich issued a statement saying that “the principle of new large loads paying their fair share is gaining consensus across states, industry groups, and political parties. The rules that have been in place for years did not ensure that.”
This $15 billion could bring on around 5.5 gigawatts of new capacity, according to calculations done by Jefferies. That figure would come close to the 6.6 gigawatts PJM fell short of its target reserve margin after its last capacity auction, conducted in December.
That auction hit the negotiated price caps and occasioned fierce criticism for how PJM manages its capacity markets. Several commissioners of the Federal Energy Regulatory Commission have criticized PJM for its high capacity prices, low reserve margin, and struggles bringing on new generation. PJM’s Independent Market Monitor has estimated that planned and existing data center construction has added over $23 billion in costs to the system.
Several trade and advocacy groups pointed out, however, that a new auction does not fix PJM’s interconnection issues, which have become a major barrier to getting new resources, especially batteries, onto the grid in the PJM region. “The line for energy projects to connect to the power grid in the Mid-Atlantic has basically had a ‘closed for maintenance’ sign up for nearly four years now, and this proposal does nothing to fix that — or any of the other market and planning reforms that are long overdue,” AEU said in a statement.
The Statement of Principles includes some language on interconnection, asking PJM to “commit to rapidly deploying broader interconnection improvements” and to “achieving meaningful reductions in interconnection timelines,” but this language largely echoes what FERC has been saying since at least its Order No. 2023, which took effect over two years ago.
Climate advocacy group Evergreen Action issued a statement signed by Deputy Director of State Action Julia Kortrey, saying that “without fixing PJM’s broken interconnection process and allowing ready-to-build clean energy resources onto the grid, this deal could amount to little more than a band aid over a mortal wound.”
The administration’s language was predictably hostile to renewables and supportive of fossil fuels, blasting PJM for “misguided policies favored intermittent energy resources” and its “reliance on variable generation resources.” PJM has in fact acted to keep coal plants in its territory running, and has for years warned that “retirements are at risk of outpacing the construction of new resources,” as a PJM whitepaper put it in 2023.
There was a predictable partisan divide at the White House event around generation, with Interior Secretary Burgum blaming a renewables “fairy tale” for PJM’s travails. In a DOE statement, Burgum said “For too long, the Green New Scam has left Mid-Atlantic families in the dark with skyrocketing bills.”
Shapiro shot back that “anyone who stands up here and says we need one and not the other doesn’t have a comprehensive, smart energy dominance strategy — to use your word — that is going to ultimately create jobs, create more freedom and create more opportunity.”
While the partisan culture war over generation may never end, today’s announcement was more notable for the agreement it cemented.
“There is an emerging consensus that the political realities of operating a data center in this day and age means that you have to do it in a way that isn't perceived as big tech outsourcing its electric bill to grandma,” Silverman said.
“Additionality” is back.
You may remember “additionality” from such debates as, “How should we structure the hydrogen tax credit?”
Well, it’s back, this time around Meta’s massive investment in nuclear power.
On January 9, the hyperscaler announced that it would be continuing to invest in the nuclear business. The announcement went far beyond its deal last year to buy power from a single existing plant in Illinois and embraced a smorgasbord of financial and operational approaches to nukes. Meta will buy the output for 20 years from two nuclear plants in Ohio, it said, including additional power from increased capacity that will be installed at the plants (as well as additional power from a nuclear plant in Pennsylvania), plus work on developing new, so-far commercially unproven designs from nuclear startups Oklo and TerraPower. All told, this could add up to 6.6 gigawatts of clean, firm power.
Sounds good, right?
Well, the question is how exactly to count that power. Over 2 gigawatts of that capacity is already on the grid from the two existing power plants, operated by Vistra. There will also be an “additional 433 megawatts of combined power output increases” from the existing power plants, known as “uprates,” Vistra said, plus another 3 gigawatts at least from the TerraPower and Oklo projects, which are aiming to come online in the 2030s
Princeton professor and Heatmap contributor Jesse Jenkins cried foul in a series of posts on X and LinkedIn responding to the deal, describing it as “DEEPLY PROBLEMATIC.”
“Additionality” means that new demand should be met with new supply from renewable or clean power. Assuming that Meta wants to use that power to serve additional new demand from data centers, Jenkins argued that “the purchase of 2.1 gigawatts of power … from two EXISTING nuclear power plants … will do nothing but increase emissions AND electricity rates” for customers in the area who are “already grappling with huge bill increases, all while establishing a very dangerous precedent for the whole industry.”
Data center demand is already driving up electricity prices — especially in the area where Meta is signing these deals. Customers in the PJM Interconnection electricity grid, which includes Ohio, have paid $47 billion to ensure they have reliable power over the grid operator’s last three capacity auctions. At least $23 billion of that is attributable to data center usage, according to the market’s independent monitor.
“When a huge gigawatt-scale data center connects to the grid,” Jenkins wrote, “it's like connecting a whole new city, akin to plopping down a Pittsburgh or even Chicago. If you add massive new demand WITHOUT paying for enough new supply to meet that growth, power prices spike! It's the simple law of supply & demand.”
And Meta is investing heavily in data centers within the PJM service area, including its Prometheus “supercluster” in New Albany, Ohio. The company called out this facility in its latest announcement, saying that the suite of projects “will deliver power to the grids that support our operations, including our Prometheus supercluster in New Albany, Ohio.”
The Ohio project has been in the news before and is planning on using 400 megawatts of behind-the-meter gas power. The Ohio Power Siting Board approved 200 megawatts of new gas-fired generation in June.
This is the crux of the issue for Jenkins: “Data centers must pay directly for enough NEW electricity capacity and energy to meet their round-the-clock needs,” he wrote. This power should be clean, both to mitigate the emissions impact of new demand and to meet the goals of hyperscalers, including Meta, to run on 100% clean power (although how to account for that is a whole other debate).
While hyperscalers like Meta still have clean power goals, they have been more sotto voce recently as the Trump administration wages war on solar and wind. (Nuclear, on the other hand, is very much administration approved — Secretary of Energy Chris Wright was at Meta’s event announcing the new nuclear deal.)
Microsoft, for example, mentioned the word “clean” just once in its Trump-approved “Building Community-First AI Infrastructure” manifesto, released Tuesday, which largely concerned how it sought to avoid electricity price hikes for retail customers and conserve water.
It’s not entirely clear that Meta views the entirety of these deals — the power purchase agreements, the uprates, financially supporting the development of new plants — as extra headroom to expand data center development right now. For one, Meta at least publicly claims to care about additionality. Meta’s own public-facing materials describing its clean energy commitments say that a “fundamental tenet of our approach to clean and renewable energy is the concept of additionality: partnering with utilities and developers to add new projects to the grid.”
And it’s already made substantial deals for new clean energy in Ohio. Last summer, Meta announced a deal with renewable developer Invenergy to procure some 440 megawatts of solar power in the state by 2027, for a total of 740 megawatts of renewables in Ohio. So Meta and Jenkins may be less far apart than they seem.
There may well be value in these deals from a sustainability and decarbonization standpoint — not to mention a financial standpoint. Some energy experts questioned Jenkins’ contention that Meta was harming the grid by contracting with existing nuclear plants.
“Based on what I know about these arrangements, they don’t see harm to the market,” Jeff Dennis, a former Department of Energy official who’s now executive director of the Electricity Customer Alliance, an energy buyers’ group that includes Meta, told me.
In power purchase agreements, he said, “the parties are contracting for price and revenue certainty, but then the generator continues to offer its supply into the energy and capacity markets. So the contracting party isn’t siphoning off the output for itself and creating or exacerbating a scarcity situation.”
The Meta deal stands in contrast to the proposed (and later scotched) deal between Amazon and Talen Energy, which would have co-located a data center at the existing Susquehanna nuclear plant and sucked capacity out of PJM.
Dennis said he didn’t think Meta’s new deals would have “any negative impact on prices in PJM” because the plants would be staying in the market and on the grid.
Jenkins praised the parts of the Meta announcement that were both clean and additional — that is, the deals with TerraPower and Oklo, plus the uprates from existing nuclear plants.
“That is a huge purchase of NEW clean supply, and is EXACTLY what hyperscalars [sic] and other large new electricity users should be doing,” Jenkins wrote. “Pay to bring new clean energy online to match their growing demand. That avoids raising rates for other electricity users and ensures new demand is met by new clean supply. Bravo!”
But Dennis argued that you can’t neatly separate out the power purchase agreement for the existing output of the plants and the uprates. It is “reasonable to assume that without an agreement that shores up revenues for their existing output and for maintenance and operation of that existing infrastructure, you simply wouldn't get those upgrades and 500 megawatts of upgrades,” he told me.
There’s also an argument that there’s real value — to the grid, to Meta, to the climate — to giving these plants 20 years of financial certainty. While investment is flooding into expanding and even reviving existing nuclear plants, they don’t always fare well in wholesale power markets like PJM, and saw a rash of plant retirements in the 2010s due to persistently low capacity and energy prices. While the market conditions are now quite different, who knows what the next 20 years might bring.
“From a pure first order principle, I agree with the additionality criticism,” Ethan Paterno, a partner at PA Consulting, an innovation advisory firm, told me. “But from a second or third derivative in the Six Degrees of Kevin Bacon, you can make the argument that the hyperscalers are keeping around nukes that perhaps might otherwise be retired due to economic pressure.”.
Ashley Settle, a Meta spokesperson, told me that the deals “enable the extension of the operational lifespan and increase of the energy production at three facilities.” Settle did not respond, however, when asked how Facebook would factor the deals into its own emissions accounting.
“The only way I see this deal as acceptable,” Jenkins wrote, “is if @Meta signed a PPA with the existing reactors only as a financial hedge & to help unlock the incremental capacity & clean energy from uprates at those plants, and they are NOT counting the capacity or energy attributes from the existing capacity to cover new data center demand.”
There’s some hint that Meta may preserve the additionality concept of matching only new supply with demand, as the announcement refers to “new additional uprate capacity,” and says that “consumers will benefit from a larger supply of reliable, always-ready power through Meta-supported uprates to the Vistra facilities.” The text also refers to “additional 20-year nuclear energy agreements,” however, which would likely not meet strict definitions of additionality as it refers to extending the lifetime and maintaining the output of already existing plants.
A third judge rejected a stop work order, allowing the Coastal Virginia offshore wind project to proceed.
Offshore wind developers are now three for three in legal battles against Trump’s stop work orders now that Dominion Energy has defeated the administration in federal court.
District Judge Jamar Walker issued a preliminary injunction Friday blocking the stop work order on Dominion’s Coastal Virginia offshore wind project after the energy company argued it was issued arbitrarily and without proper basis. Dominion received amicus briefs supporting its case from unlikely allies, including from representatives of PJM Interconnection and David Belote, a former top Pentagon official who oversaw a military clearinghouse for offshore wind approval. This comes after Trump’s Department of Justice lost similar cases challenging the stop work orders against Orsted’s Revolution Wind off the coast of New England and Equinor’s Empire Wind off New York’s shoreline.
As for what comes next in the offshore wind legal saga, I see three potential flashpoints:
It’s important to remember the stakes of these cases. Orsted and Equinor have both said that even a week or two more of delays on one of these projects could jeopardize their projects and lead to cancellation due to narrow timelines for specialized ships, and Dominion stated in the challenge to its stop work order that halting construction may cost the company billions.