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Maybe the PHEV really is the starter EV America needs.

When my sister’s long-lived Scion met a sudden, destructive end last month, she was ready to take the leap into electric. She tried one plug-in hybrid she could find in Topeka, Kansas — an old Chevy Volt — before rejecting it in favor of a gently used Nissan Leaf.
Across town, my parents had been car-shopping, too. And while they thought about a plug-in hybrid as a way to dip their toes into electrification, they found only one on the nearby lots — a used car the dealer tried to sell above MSRP because, well, they could. Mom and dad wound up with a traditional hybrid Hyundai crossover instead.
Such struggles are no surprise. The PHEV has become an uncommon sight as most automakers have introduced fully electrified vehicles and, increasingly, left the plug-in hybrid behind. However, as full EVs have run into headwinds, the PHEV might be due for a comeback. Five years after giving up on plug-in hybrids to go all-electric, General Motors now says it will start making them again.
This is good news for a country that, frankly, needs a starter EV.
I admit it: Five years ago, when GM ditched hybrids to go fully electric, I was glad. Yes, the Chevy Volt had shifted lots of people to electrified driving. But the plug-in hybrid is a paragon of “jack of all trades, master of none.”
With electric car components jammed in alongside its traditional hoses and belts, a PHEV is never going to be a great gasoline car. And because it must contain all the parts for petroleum propulsion, a plug-in hybrid can fit only a small battery with a limited range. The new Toyota Prius Prime PHEV can deliver up to 44 miles of electric driving, and that meager figure is a major leap from the around 25 miles of the previous model. The soon-to-be-axed Subaru Crosstrek PHEV delivers only 17 all-electric miles, and costs thousands more than a normal gas version.
From a climate perspective, PHEVs also looked like an easy way out for carmakers who should have been fully electrifying their lineups instead — a way for brands like Toyota to call their cars “electrified” without actually building battery EVs. It was a half-measure, a “stepping stone,” in a world that needs to completely turn over its car fleet.
For drivers, though, the core argument for the PHEV has always been a compelling one. Its battery range is limited, yes, but the electric miles are probably enough to accomplish a commute or local errands. Local electric driving drastically cuts one’s gasoline budget. On longer trips, there’s no need for the range anxiety that comes with a true EV since the gas engine has your back.
Yet PHEVs struggled to catch on fully during their first wave. A decade ago, when precious few mainstream EVs were on sale, plug-in hybrids accounted for about half of electrified U.S. car sales. About five years ago, when mass-market EVs like the Tesla Model 3 and Y arrived — and the Chevy Volt departed the scene — things changed. By 2023, PHEVs made up only 20 percent, meaning Americans bought four times as many pure EVs as plug-in hybrids.
Perhaps the America of five years ago simply was not yet familiar enough with electric driving to understand the benefits a plug-in hybrid could deliver. Buyers who were truly bullish on electric, like me, jumped right past the hybrid and bought a full EV. The fact that plug-in hybrids cost a lot more while delivering a pittance of electric miles didn’t help.
But that was then. In 2024, the legacy car companies sound far less enthusiastic about their plans to electrify completely. While EV demand is not cratering, as some apocalyptic headlines would suggest, it is possible that electric cars are entering a holding pattern, or at least a gap year or two. Drivers willing to buy a pricey new EV have mostly done so. Millions more are biding their time, waiting for better charging infrastructure where they live, a wave of truly affordable EVs, or some other factor to push them toward pure electric.
These people need a starter EV — something to get their feet wet in electrified driving that isn’t a $40,000 new car. Now that a handful of decent electrics have been on the market for several years, a used full EV could fill that role. That’s especially true for families that have a combustion vehicle or hybrid as their other car, and can drive a used Chevy Bolt or Nissan Leaf around town without having to worry so much about its diminishing battery.
Still, most Americans want their car to do everything, including a long road trip if necessary. They should consider the PHEV. In parts of the country without a lot of charging infrastructure, the plug-in hybrid would make an ideal beginner EV, given the security of the gas engine to ease one’s range anxiety.
But with the automakers having gone full electric in the past few years, plug-in hybrids are few and far between. Toyota, which has been dragging its feet about pure EVs, makes plug-in hybrid versions of the RAV4 and the Prius. The Wrangler 4xe plug-in hybrid is Jeep’s signature electrified effort so far. BMW, Kia, Hyundai, and others offer PHEV variants of some of their vehicles (though that’s no guarantee you’ll find the one you want at your local dealership, given their niche status.) PHEV sales lag behind both ordinary hybrids and full electric vehicles.
With General Motors ready to revive its plug-in hybrid line, perhaps the technology is due to catch its second wind just as weary buyers look for a more comfortable way to start driving on electrons. As with full battery EVs, it comes down to price and range. If Chevy can cook up a Volt 2.0 that impresses on both fronts, then the PHEV may finally find its footing in the U.S.
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Residents of Hawaii may see their bill grow by as much as 30%.
While the gasoline that powers Americans’ cars has seen dramatic price hikes following the effective closure of the Strait of Hormuz, the price of the natural gas that provides the bulk of the electricity that powers Americans’ homes, office buildings, factories (and, indirectly, some cars) has actually been roughly flat since the war began, meaning that a huge portion of American energy consumption remains unaffected by the global energy crisis.
Except in Hawaii.
The state has a series of (literally) islanded electrical grids that rely heavily on burning oil to generate electricity, unlike the other 49 states whose grid-connected power plants are largely natural gas, coal, or nuclear. This puts Hawaii ratepayers at the mercy of the global oil market — and it will be exacting a higher price.
“Hawaiian Electric customers should prepare for potential increases in energy costs in the coming months, driven by rising global oil prices linked to escalating geopolitical tensions, including the ongoing conflict involving Iran,” the utility Hawaiian Electric said in a statement last week.
The utility, which serves the vast majority of Hawaii’s residents, said that typical residential bills “may rise between 20% and 30% over the next several months,” with customers on Oahu seeing hikes in April and the rest of the state seeing hikes in May and June.
On Oahu, the utility owns two oil-fired plants with around 1,000 megawatts of capacity, alongside diesel and biodiesel plants. It also buys power from other oil, biomass, and biofuel plants.
About two-thirds of Hawaii’s electricity comes from oil, with the balance coming from renewables, according to the Energy Information Administration. The state — uniquely among the 50 — has no natural gas-fired power or nuclear power, and its last coal-fired power plant shut down in 2022. It has accordingly high electricity prices, with the highest average price of any state, according to the EIA, but also the lowest per-capita electricity demand. (Hawaii isn’t exactly a center of electricity-intensive industrial production.)
The average electricity bill in Hawaii in March was around $195 a month, according to Heatmap and MIT’s Electricity Price Hub, compared to $158 in California, $189 in Texas, and $144 in New York. The average price of electricity of $0.42 per kilowatt-hour is well above California’s $0.36, New York’s $0.24, or Texas’s $0.21.
Hawaii’s crude oil largely comes from Libya, Argentina, Nigeria, and Brazil, according to the Energy Information Administration, before being processed at the state’s sole refinery on Oahu.
With the United States and Israeli war with Iran now well into its second month, that oil is getting more expensive. Benchmark oil prices have jumped from $67 to $115 per barrel since the war began on February 28. Gasoline prices in Hawaii average $5.60 per gallon, according to Triple AAA, compared to $4.48 a month ago.
The state’s dependence on oil for both electricity and transportation has driven residents to use its electricity efficiently, and lawmakers to attempt to transition to locally produced, non-fossil sources of energy. The state has a net-negative carbon target for 2045, and two of its islands, Kauai and Hawaii, already get at least half of their electricity generation from renewable sources, including solar, geothermal, and hydropower. However Oahu, the state’s most populous island, gets only around 30% of its electricity from renewables.
The electricity price spike could also imperil Hawaiian Electric’s ability to get out from under its substantial liabilities related to the 2023 Maui wildfires. The utility was named as a party to a $4 billion settlement for wildfire damages that has been inching towards completion since the state Supreme Court ruled in February that insurers couldn’t “go directly after Hawaiian Electric Industries, the parent company of Hawaiian Electric Co., and other parties at fault for the fire who agreed to fund the settlement,” Honolulu Civil Beat reported.
The settlement “is closer to resolution than ever,” Jefferies analyst Julien Dumoulin-Smith wrote in a note to clients Tuesday. The investment bank has maintained a negative rating on the stock, he wrote, in part because “the affordability backdrop is deteriorating at the worst possible time.”
Hawaiian Electric “remains one of the most oil-exposed electric utilities in the United States, and the recent Iran-related oil spike could begin pressuring customer bills in late spring, subject to procurement timing and fuel inventory drawdown,” he wrote. The price hike could affect the utility’s ability to “rebase” — i.e. increase — its rates, as it has proposed to state regulators.
The utility has argued that it needs to increase prices to deal with inflation, including the price of electrical transformers, which have more than doubled since 2020. The proposed rate hike would raise bills by between $8 and $12 next year. The utility has said that “fortifying the reliability and resilience of the electric grid and power generation assets requires investments that keep pace with the costs of maintaining and improving the systems serving five islands,” pointing to $183 million it plans to spend on grid improvements in Honolulu by the end of the decade, which outstrips the revenue request of $170 million. It has also said it needs higher revenue to deal with higher insurance premiums following the Maui fires.
Hawaii’s wholesale dependence on oil for electricity generation is almost completely anomalous in the 50 states. About 90% of its total energy usage comes from petroleum, according to the EIA, compared to about 38% for the country as a whole.
While much of the United States electricity system is at least somewhat insulated from shockwaves emanating throughout the global economy, there are two notable exceptions in the country’s far west and far east.
The only other region where oil plays a key role in the electric grid is Hawaii’s geographic opposite: New England.
New England has several dual-fuel power plants that can use oil when demand for natural gas for heat spikes in the winter. And like Hawaii, New England is hooked into global energy markets, though in the latter case that has more to do with liquified natural gas, which the region is forced to import due to its sparse natural gas pipeline network.
But if the war with Iran ends up spiking electricity prices in New England this winter, the world will have far larger problems than Bostonians’ electric bills.
Who even wants to drive more than 400 miles without taking a break to recharge — literally or metaphorically?
Take a moment to ask yourself: When was the last time you drove 300-plus miles without stopping? For reference, that means tackling a five- or six-hour journey, like L.A. to San Francisco or Houston to New Orleans, in one shot. Unless you have a bladder of steel and an obsession with making good time, there’s a good chance you’re making at least one pit stop on the way.
But if you wanted to, soon you could drive that far in one shot without burning gas.
Electric cars are reaching a point where such trips are nearly within reach. A few years ago, many if not most consumer EVs came with 200-some miles per charge. Then many automakers introduced the option to pay more for the longer-range battery, which extended driving range to 300 miles or more. Suddenly, more models have begun to top the 400-mile plateau.
The latest eye-popping range number comes from the 2027 BMW i3. This is the fully electrified version of the brand’s 3 Series, one of the icons of the automotive world. The launch version of that car comes with 440 miles of range, per the Environmental Protection Agency’s rating. It joins vehicles such as the Lucid Air, Chevy Silverado EV Extended Range, and Rivian’s Dual Max trucks and SUVs in topping 400 miles of maximum range. These are high-end EVs out of the reach of most buyers. Yet their mere availability suggests an automotive tipping point: At that point, an EV can go about as far as you’d even want to travel without a break.
To understand the importance of this milestone, remember what range numbers really mean. The EPA’s rating comes from testing an EV over a variety of driving conditions, from city stop-and-go to interstate road tripping. If you do all your driving around town, or stick to the speed limit on a 55-mile-per-hour country highway, then you might reach your car’s mileage estimate. But speed kills range. Fly down the freeway at 70 miles per hour and you won’t come anywhere close to the stated maximum.
Real-world testing makes this abundantly clear. The new Chevrolet Bolt is rated at 262 miles, impressive for a little car. Traveling 75 miles per hour, though, it makes a hair under 200 miles. In a much, much bigger vehicle, Chevy’s engineers got the Silverado EV to go 1,000 miles on a single charge by driving it 25 miles per hour; at realistic speeds, it might go 400-some. My own Tesla Model 3 has made the speed penalty abundantly clear over the years. Initially rated at 240 miles, it has never been able to travel more than about 150 miles at speeds above 70 miles per hour. Keep in mind that charging speed slows drastically as the battery approaches full. On a road trip, you’ll recharge only to 80% or 90% of capacity because it’s not worth it to wait 10 or 20 minutes for the last trickle of electricity.
The upshot: You want your EV to start with a big range number, because the number shrinks. The EPA rating is just a starting point — one that invariably wanes as the years go by. An EV with 400-plus miles of range will still have 300-some when it gets old. That’s a huge deal compared to the previous generation: Older cars that started in the 200s might see road trips become annoying ordeals if they drop below 200 “miles” per charge.
Three years ago this month, I wrote that people should buy as much EPA range as they could afford and that 300 was the magic number. That way, the real-world range you probably care about most — how long you can drive down the interstate without stopping — is at least 200 actual miles. After three hours on the road, you might be ready for a 20 or 30-minute break to stretch your legs and recharge the battery, anyway.
The arrival of more 400-mile ranges pushes EVs even closer to parity with combustion vehicles when it comes to road trip convenience. The more miles you have to work with, the more your trips and stops are decided by your own happiness and comfort rather than by the need to wait for more juice. Remember, too, that used EVs are all the rage right now as Americans seek affordable ways to avoid paying for gasoline. An older EV’s remaining range matters a lot to its second and third owner. A car that starts with 400 miles of range might still deliver an acceptable number of miles per charge even when it has hundreds of thousands of miles on the odometer.
The other thing is, battery capacity isn’t just about driving. An EV can use its stored energy for just about anything: to air-condition the dog while you eat dinner in a non-dog-friendly restaurant, to back up your home’s power supply during a blackout, to keep everyone comfortable and entertained while you wait in the parking lot, or to use its cameras to record footage of anyone who might mess with the vehicle. The more range, the more an EV can use energy for other purposes and still have plenty saved for driving.
Of course, the most powerful upshot of 400-mile electric cars is the death of range anxiety. The fear of running out of juice in the middle of nowhere — or of making an annoying number of charging stops with a lower-range EV — has kept many electric-curious buyers away. Many are turning back toward hybrid cars and even the forthcoming wave of extended-range EVs that use a gas engine as a backup generator. But worries about range and the steady but slow growth of America’s charging networks start to fade away when you realize many gasoline-burning cars would run out of fuel before your 400-mile EV hits empty.
Current conditions: The warm, springy temperatures in the Northeast and Great Lakes are set to drop by as much as 30 degrees Fahrenheit as cold air moves into the region • Telekitonga and Telekitokelau, two of the northernmost atolls in the Kingdom of Tonga, are facing severe winds from Tropical Cyclone Vaianu • The death toll from the floods deluging southern and eastern Afghanistan topped 110.

Over the weekend, President Donald Trump renewed his on-again, off-again threat to borrow a tactic from Russia’s playbook in Ukraine and bomb Iran’s power plants. As I told you in yesterday’s newsletter, Trump set a deadline of Tuesday night — tonight — for Tehran to reopen the Strait of Hormuz or face the bombardment of its key civilian infrastructure. The Wall Street investment research firm Citrini Research sent an analyst to the strategic chokepoint with a briefcase of $15,000 in cash, Cuban cigars, and Zyn nicotine packs, and produced a report that concluded that billions of dollars in cargo were still passing through the Strait — but only if linked to the Iranian government or to Chinese vessels. On Monday, Iranian authorities halted two Qatari tankers that attempted to cross the narrow waterway out of the Persian Gulf. “Iranians want the regime gone and they don’t want the country destroyed,” one expert told the hawkish Free Press writer Eli Lake. “Now they fear that the country will be destroyed and the regime will remain.”
It’s unclear whether Washington would target the Bushehr nuclear plant, Iran’s first and only civilian atomic power station. Built by the Russians, the single-reactor station came online in 2011, just months after the Fukushima disaster, and was before the war undergoing an expansion. Russia’s state-owned Rosatom has decried the absence of global outrage over U.S. and Israeli missiles landing near the plant as a double standard, given that the Kremlin’s own occupation of Ukraine’s top nuclear plant drew widespread condemnation. On Saturday, however, the International Atomic Energy Agency said that a projectile fragment had killed a plant worker in the fourth and latest strike near the power station. On Sunday, the World Health Organization sounded the alarm over the safety of the plant. “The latest incident involving the Bushehr nuclear power plant is a stark reminder: a strike could trigger a nuclear accident, with health impacts that would devastate generations,” WHO director-general Tedros Adhanom Ghebreyesus wrote in a post on X.
If you thought Stephen Miller’s influencer wife embracing solar and the Trump administration declining to appeal its big offshore wind legal losses meant the president had turned the page on his anti-renewables agenda, think again. The fiscal year 2027 budget proposal the White House released Friday highlights “plans to continue waging its longstanding war against renewable energy and climate initiatives while boosting support for artificial intelligence and fossil fuels,” E&E News reported. In a fact sheet entitled, “Ending the Green New Scam,” the White House says “President Trump is committed to eliminating funding for the globalist climate agenda while unleashing American energy production.” The document thrice refers to renewable energy as “unreliable.” Overall, the budget proposed slashing non-military spending by the federal government roughly 10%, or $73 billion.
The White House’s budget proposal is, of course, more of a statement of priorities than anything else, and cuts that steep are unlikely to pass through Congress. The administration has, meanwhile, outlined the biggest boost to military spending in modern history, raising the budget to $1.5 trillion.
A gunman fired more than a dozen shots into an Indianapolis lawmaker’s home early Monday morning, leaving behind a note on the doormat reading “no data centers.” City Council member Ron Gibson, a third-term Democrat and native of Indiana’s largest city, had voted in favor last week of approving construction of a 75-megawatt data center on a lot that The Indianapolis Star described as having “sat idle for years and did little for economic development in the neighborhood.” The roughly 14-acre property appears on Google Earth to be an empty dirt lot surrounded by an auto body shop, a payday lender, and a gas station. In a statement to The Indianapolis Recorder, Gibson said that while he understood that public service meant withstanding criticism from those who disagree with his decisions, this attack was unlike anything he ever expected. He said his eight-year-old son was in the house. “Just steps from where those bullets struck is our dining room table, where my son had been playing with his Legos the day before. That reality is deeply unsettling,” Gibson said. “This was not just an attack on my home, but endangered my child and disrupted the safety of our entire neighborhood.”
Local opposition to data centers has erupted across the country over the past year, leading to what Heatmap’s Robinson Meyer documented as a wave of cancellations.
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Until recently, the plastics industry was in the doldrums. Amid surging scrutiny of the environmental and health impacts of plastics’ global waste crisis, cheap natural gas and a vast network of suppliers had kept prices for materials such as polyethylene low. Then came the Iran War. Now it’s a boom. High demand has chemical giant Dow running its “crackers” — plants that heat ethane, a component of natural gas, to more than 1,700 degrees Fahrenheit to crack the molecule into hydrogen and ethylene, the basic building block of the plastics such as polyethylene — near full capacity, The Wall Street Journal reported. Shares in Dow and rival LyondellBasell are up nearly 80%. “In my career of almost 30 years of covering chemicals, I have never, ever seen price hikes this steep and this quick,” Hassan Ahmed, a partner at Alembic Global Advisors, told the newspaper.
Polestar, the Swedish-based and Chinese-owned automaker, is betting that the land of big cars will be the land of big electric cars. By the end of this year, the Polestar 3, the company’s flagship electric SUV and its largest battery-powered vehicle, will be assembled exclusively in the U.S. InsideEVs noted that this will make the model the only American-made electric vehicle in Polestar’s portfolio. The Polestar 3 is currently built in Chengdu, China, and Volvo’s Ridgeville plant in South Carolina. By the end of the year, Polestar will end its Chinese production, according to CarBuzz.
Panama emerged as one of the world’s most significant new players in the copper market right as demand for the metal was surging. Then, in 2023, anti-mining protests shut down First Quantum’s Cobre Panama mine. Since then, the facility has sat idle. But on Tuesday, the Panamanian government is expected to issue permits that will allow for the removal and processing of copper ore stockpiled at the site, La Estrella de Panamá reported.