AM Briefing
Pennsylvania’s Climate Exit
On power prices keep climbing, TVA’s ‘historic’ gas buildout, and mounting climate woes
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On power prices keep climbing, TVA’s ‘historic’ gas buildout, and mounting climate woes
On America’s climate ‘own goal,’ New York’s pullback, and Constellation’s demand response embrace
On partisan cuts, an atomic LPO, and the left’s data center fight
On Massachusetts’ offshore headwinds, Biden’s gas rules, and Australia’s free power
Rob and Jesse touch base with WeaveGrid CEO Apoorv Bhargava.
On Arctic drilling, BYD’s drop, and Democrats’ timid embrace of nuclear recycling
Current conditions: Hurricane Melissa now a Category 2 storm, has left as much as $52 billion in damages in its wake • Sadly for trick-or-treaters, a new storm moving northward from the Mississippi Valley is forecast to bring heavy rains and gusty winds to the Northeast, particularly New England, on Halloween • Heavy rains are bringing the highest possible flood risk to Kenya today.
Oil giant Shell withdrew from its Atlantic Shores project to develop offshore wind off the coast of New Jersey and New York. In a press release on Thursday, the company said it was pulling out of a 50-50 joint venture with the French energy giant EDF as the Anglo-Dutch behemoth grapples with the Trump administration’s so-called “total war on wind.” The decision, the company said, “was taken in line with Shell’s power strategy,” which includes “shifting away from capital-intensive generation projects to assets that support our trading and retail strengths.” The move comes nearly a month after Shell’s top executive in the United States called out President Donald Trump for setting what she called a bad precedent for future administrations that would use the legal approaches the White House has taken to attack offshore wind against oil and gas, as I wrote here a few weeks ago.
The Senate voted Thursday to overturn Biden-era rules limiting drilling in the Alaskan Arctic. The 52-45 vote, in which Senator John Fetterman of Pennsylvania joined Republicans to vote in favor, canceled out the 2022 Biden administration plan that made just 52% of land in what’s known as the National Petroleum Reserve in Alaska available for drilling. A previous Trump administration proposal made 82% of the area eligible for drilling. “This will benefit North Slope communities with jobs & economic growth, and support their tax base to improve access to essential services like water and sewer systems and clinics,” Alaska Senator Dan Sullivan, who sponsored the legislation to withdraw the Biden-era rules, said in a post on X in September.
The move comes a week after Trump opened a broad swath of Alaskan wilderness to drilling, as I reported here.
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Chinese electric auto giant BYD reported another slump in its quarterly profits amid growing domestic competition. Much like Tesla, which has seen its market share in the U.S. drop in recent months as rivals surged ahead, BYD saw its third-quarter profits tumble 33% from a year earlier to roughly $1.1 billion. Total revenue dropped 3%. The Shenzhen-based company — the world’s largest electric automaker — remains dominant in China, but rivals Geely Automobile Holdings and Chongqing Changan Automobile Co. saw increases in third-quarter sales of 96% and 84% respectively, Bloomberg reported.
Still, BYD’s strength in the international market gives the Chinese company an edge over Tesla, the U.S.’s domestic EV champion. As Heatmap’s Matthew Zeitlin wrote recently, “Tesla’s stranglehold over the U.S. EV market may be weakening, so too is its hold on the international market.”
Real estate giant Related Companies agreed to build a data-center campus worth more than $7 billion on farmland outside Detroit, in what The Wall Street Journal called “one of the largest deals yet” for this class of property deals to power artificial intelligence. The 250-acre campus is the fourth new site announced as part of a $300 billion contract between Oracle and OpenAI to power the ChatGPT-maker’s Stargate project.
The news came the same day the small modular reactor startup Blue Energy announced a deal with the artificial intelligence company Crusoe to develop a nuclear-powered data center campus in Port of Victoria, Texas. The project, which aims to build up to 1.5 gigawatts of power, would first build natural gas-fired plants with the intention of phasing them out in favor of Blue Energy’s nuclear reactors by 2031. The nuclear company plans to construct its plants on sites where it can ship the reactors to the campus by barge. “We’re not really doing anything where there isn’t regulatory precedent in the past,” Blue Energy CEO Jake Jurewicz told nuclear scholar Emmet Penney on the podcast Nuclear Barbarians earlier this month. “In the end, it comes down to being really thoughtful with design, plant architecture, and site selection.”
Nuclear waste recycling was once a third-rail issue among liberals who, like former President Jimmy Carter, feared that the technology to extract additional reactor fuel from spent uranium risked sending the message worldwide that the U.S. supported continued weapons proliferation. But when the Senate Environment and Public Works Committee voted Wednesday to approve legislation to streamline the process for licensing nuclear recycling plants, only a handful of Democrats pushed back. The radioactive waste sitting at power plants across the U.S. is relatively tiny compared to the amount of electricity those fuel rods produced. But part of why the spent fuel remains dangerously toxic for so long is that it still contains the vast majority of the energy in the uranium. By reprocessing the enriched metal to extract the useful fuel isotopes, the nation’s waste stockpile would shrink and, by some estimates, the U.S. could power its entire grid system for more than a century.
At this week’s vote, the opposition stood out against the unanimous support for other bills to promote plastics cleanup and diesel emissions, E&E News reported. But the bipartisan Nuclear REFUEL Act attracted just a handful of dissenters, ultimately passing in a 16 to 3 vote. Separately, in Illinois late Thursday, Governor JB Pritzker signed legislation to lift the state’s moratorium on building nuclear reactors. That puts the state, by far the largest nuclear hub in the nation, in play for new large-scale reactors that the Trump administration has pledged to fund.

Happy Halloween, to all who celebrate. In the holiday spirit, would you like to read something a little spooky? Climate change is already taking a toll on the nation’s pumpkin crop. Extreme heat and rain are reducing how many gourds are available for jack-o-lanterns, as the National Oceanic and Atmospheric Administration warned last year. The downward trend continues. In the latest crop update from the U.S. Department of Agriculture, the per capita availability of pumpkins fell by 11%, more than five times the reduction in squash and twice the fall in sweet potatoes.
On permitting reform optimism, GM layoffs, and LA’s H2 conversion
Hurricane Melissa made landfall over Cuba with winds raging up to 120 miles per hour | If the Category 5 storm veers westward as it heads north, Melissa will bring roiling seas to Atlantic Canada; if it veers eastward, it will bring rain to the United Kingdom | Heavy snowfall in Tibet forced Chinese authorities to shut down access to Mount Everest.

China’s commerce ministry promised to suspend its latest export restrictions on rare earths for at least a year as part of a trade truce President Donald Trump brokered with President Xi Jinping. Under rules Beijing issued on October 8, Chinese companies were required to obtain the ministry’s permission before exporting equipment to process ore and technology for mining and refining rare earths, magnets made from the metals, and components for electric vehicle battery manufacturing. That doesn’t mean Beijing is dialing back all its restrictions on rare earths, over which China controls roughly 90% of the world’s refining capacity. “Importantly, China’s commerce ministry today made no mention of suspending its April 4 regulations, which require export licenses for seven kinds of rare earths and magnets made from them,” The New York Times’ Beijing bureau chief, Keith Bradsher, wrote Thursday morning. “The April rules continue to disrupt production at the many factories in the United States and Europe that need Chinese materials.”
That’s bad news for Western rare earth companies whose stocks have been on a tear since China announced the latest export controls. But it’s good news for clean-energy companies who need access to the minerals — and not their only cause for optimism this morning. The Federal Reserve cut its benchmark interest rate by a quarter of a percentage point, bringing the cost of borrowing down to its lowest level in three years. The move came amid a flurry of economic uncertainty from the United States’ ongoing trade conflicts, accusations from the Trump administration’s over jobs and inflation reports, and the ongoing government shutdown. For the first time since 2019, two Fed officials dissented over the rate cut decision — one who wanted a larger, half-point cut, and the other who called for holding steady at the current level. The political upheaval aside, any cut is good news for renewable energy developers. As Heatmap’s Matthew Zeitlin wrote after last month’s quarter-point cut, the move may “provide some relief to renewables developers and investors, who are especially sensitive to financing costs.” But it still “may not be enough” to erase the challenges from higher tariffs.
On Wednesday, General Motors pinkslipped more than 3,400 workers who build electric vehicles and batteries as the company “rapidly adjusts to new policy under President Donald Trump and sluggish interest among U.S. buyers,” The Detroit News reported. The automaker’s Detroit-area all-electric assembly plant, called Factory Zero, will be the hardest hit, with 1,200 cuts.
GM had emerged this year as the best-selling electric vehicle maker in the country, with record sales in the most recent quarter. By eliminating the $7,500 federal tax credit for electric vehicles last month as part of his One Big Beautiful Bill Act, however, Trump cost GM “1.6 billion,” as Andrew Moseman wrote last week in Heatmap.
Just over a week ago, as I wrote here, Rhode Island Senator Sheldon Whitehouse warned that his vote on the bipartisan permitting reform ideas he helped put forward depended on the Trump administration easing up on what we’ve frequently called in this newsletter the “total war on wind.” Secretary of the Interior Doug Burgum balked at the idea. And yet, talks seem to be progressing. On Wednesday, E&E News reported that Whitehouse, the top Democrat on the Environment and Public Works Committee and a longstanding climate hawk, said talks were "pretty constant right now” and that the Senate planned to release a framework by the end of the year. He added that “there’s good faith on all four corners, referring to Environment and Public Works Chair Shelley Moore Capito, a West Virginia Republican, Energy and Natural Resources Chair Mike Lee, a Utah Republican, and ranking member Martin Heinrich, a New Mexico Democrat. “I don’t think we necessarily have to be down to legislative language, but it has to be clear enough to where we’re going so our colleagues have a chance to look at it and kick the tires and see what their concerns are.”
Kentucky is reeling from the looming halt to federal food stamps. Now the Trump administration wants to let the nation’s biggest grid operator charge Kentuckians to keep aging fossil fuel stations open in other states? No way, say one of the state’s biggest utilities and its attorney general. As Utility Dive reported, East Kentucky Power Cooperative, which serves nearly a quarter of the state’s ratepayers, and Attorney General Russell Coleman are challenging the PJM Interconnection’s plan to make utilities across its system pay for the Department of Energy’s emergency orders to keep coal-, oil-, and gas-fired power plants set to close this year open past their expiry dates. Much like the coal plant the agency ordered to stay open in Michigan, the Energy Department recently directed utilities in the PJM service area to keep two gas- and oil-fired units online near Philadelphia and a 400-megawatt oil-fired plant going near Baltimore. In August, the Federal Energy Regulatory Commission rejected East Kentucky Power Cooperative’s arguments against having to pay for PJM’s overall costs. But now the utility and the attorney general, a Republican, are fighting back against the latest filings.
Elsewhere in the PJM territory, chip giant Nvidia is investing in a data center built to smooth out power use as demand for artificial intelligence surges. The project, announced in Axios, is “the first commercial rollout of software that adjusts energy draw in real time.” Nvidia is set to deploy grid-regulating software by the startup Emerald AI at a server farm under construction in Virginia. Once completed, the facility will be “the first built to a new industry-wide certification on flexible power.”
The Los Angeles Department of Water and Power board voted unanimously to approve a contentious plan for an $800 million conversion of two units at the Scattergood Generating Station. The 3 to 0 decision to sign off on the plant’s environmental impact report clears the way for the city’s largest gas-fired plant to burn both natural gas and hydrogen. While the regulators said the plan was in line with the city’s goal of running on 100% renewables by 2035, since green hydrogen is made with clean electricity, opponents told the Los Angeles Times that the project would prolong the use of fossil fuels in the city and contribute to local pollution from nitrogen oxides.
If successful, the conversion will be one of the country’s biggest experiments in swapping gas for hydrogen. On Long Island in New York, utility giant National Grid announced a plan in August to install the world’s first linear generator that will run entirely on green hydrogen. Yet the efforts come as the Trump administration has eliminated federal funding for two of the seven regional hydrogen hubs set up under the bipartisan Infrastructure Investment and Jobs Act that were specifically designed to commercialize green hydrogen. And now, as Heatmap’s Emily Pontecorvo wrote, a list of rumored cuts that could come once the government shutdown ends puts the other five hubs on the chopping block.
Artificial intelligence is starting to decode the language of whales. Now biologist David Gruber of the Cetacean Translation Initiative, who has spent decades trying to understand marine life, said that the work his research outfit is doing to detect patterns in whale songs could “dramatically strengthen legal protections for nonhuman life,” Inside Climate News reported. Already, Gruber’s work has uncovered a sperm whale “alphabet,” finding that click patterns shift with conversational context, and discovered that whales even have dialects with pods from different parts of the ocean “vocalizing as differently as a New Yorker and a Texan.”