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And four more things we learned from Tesla’s Q1 earnings call.

Tesla doesn’t want to talk about its cars — or at least, not about the cars that have steering wheels and human drivers.
Despite weeks of reports about Tesla’s manufacturing and sales woes — price cuts, recalls, and whether a new, cheaper model would ever come to fruition — CEO Elon Musk and other Tesla executives devoted their quarterly earnings call largely to the company's autonomous driving software. Musk promised that the long-awaited program would revolutionize the auto industry (“We’re putting the actual ‘auto’ in automobile,” as he put it) and lead to the “biggest asset appreciation in history” as existing Tesla vehicles got progressively better self-driving capabilities.
In other Tesla news, car sales are falling, and a new, cheaper vehicle will not be constructed on an all-new platform and manufacturing line, which would instead by reserved for a from-the-ground-up autonomous vehicle.
Here are five big takeaways from the company's earnings and conference call.
The company reported that its “total automotive revenues” came in at $17.4 billion in the first quarter, down 13% from a year ago. Its overall revenues of $21.3 billion, meanwhile, were down 9% from a year ago. The earnings announcement included a number of explanations for the slowdown, which was even worse than Wall Street analysts had expected.
Among the reasons Tesla cited for the disappointing results were arson at its Berlin factory, the obstruction to Red Sea shipping due to Houthi attacks from Yemen, plus a global slowdown in electric vehicle sales “as many carmakers prioritize hybrids over EVs.” The combined effects of these unfortunate events led the company to undertake a well-publicized series of price cuts and other sweeteners for buyers, which dug further into Tesla’s bottom line. Tesla’s chief financial officer, Vaibhav Taneja, said that the company’s free cash flow was negative more than $2 billion, largely due to a “mismatch” between its manufacturing and actual sales, which led to a buildup of car inventory.
The bad news was largely expected — the company’s shares had fallen 40% so far this year leading up to the first quarter earnings, and the past few weeks have featured a steady drumbeat of bad news from the automaker, including layoffs and a major recall. The company’s profits of $1.1 billion were down by more than 50%, short of Wall Street’s expectations — and yet still, Tesla shares were up more than 10% in after-hours trading following the shareholder update and earnings call.
The strange thing about Tesla is that it makes the overwhelming majority of its money from selling cars, but has become the world’s most valuable car company thanks to investors thinking that it’s more of an artificial intelligence company. It’s not uncommon for Tesla CEO Elon Musk and his executives to start talking about their Full Self-Driving technology and autonomous driving goals when the company’s existing business has hit a rough patch, and today was no exception.
Tesla’s value per share was about 33 times its earnings per share by the end of trading on Monday, comparable to how investors evaluate software companies that they expect to grow quickly and expand profitability in the future. Car companies, on the other hand, tend to have much lower valuations compared to their earnings — Ford’s multiple is 12, for instance, and GM’s is 6.
Musk addressed this gap directly on the company’s earnings call. He said that Tesla “should be thought of as an AI/robotics company,” and that “if you value Tesla as an auto company, that’s the wrong framework.” To emphasize just how much the company is pivoting around its self-driving technology, Musk said that “if somebody believes Tesla is not going to solve autonomy they should not be an investor in the company.”
One reason investors value Tesla so differently relative to its peers is that they do, actually, expect the company will make a lot of money using artificial intelligence. No doubt with that in mind, executives made sure to let everyone know that its artificial intelligence spending was immense: The company’s free cash flow may have been negative more than $2 billion, but $1 billion of that was in spending on AI infrastructure. The company also said that it had “increased AI training compute by more than 130%” in the first quarter.
“The future is not only electric, but also autonomous,” the company’s investor update said. “We believe scaled autonomy is only possible with data from millions of vehicles and an immense AI training cluster. We have, and continue to expand, both.”
Musk described the company’s FSD 12 self-driving software as “profound” and said that “it’s only a matter of time before we exceed the reliability of humans, and not much time at that.”
The biggest open question about Tesla is what would happen with its long-promised Model 2, a sub-$30,000 EV that would, in theory, have mass appeal. Reuters reported that the project had been cancelled and that Tesla was instead devoting its resources to another long-promised project, a self-driving ride-hailing vehicle called the “robotaxi.”
Musk tweeted that Reuters was “lying” but never directly denied the report or identified what was wrong with it, instead saying that the robotaxi would be unveiled in August. He later followed up to say that “going balls to the wall for autonomy is a blindingly obvious move. Everything else is like variations on a horse carriage.”
Before the call, Wall Street analysts were begging for a confirmation that newer, cheaper models besides a robotaxi were coming.
“If Tesla does not come out with a Model 2 the next 12 to 18 months, the second growth wave will not come,” Wedbush Securities analyst Dan Ives wrote in a note last week. “Musk needs to recommit to the Model 2 strategy ALONG with robotaxis but it CANNOT be solely replaced by autonomy.”
Anyone who expected to get their answers on today’s call, though, was likely kidding themselves.
Tesla announced today it had updated its planned vehicle line-up to “accelerate the launch of new models ahead of our previously communicated start of production in the second half of 2025,” and that “these new vehicles, including more affordable models, will utilize aspects of the next generation platform as well as aspects of our current platforms.” Musk added on the company’s earnings call that a new model would not be “contingent on any new factory or massive new production line.”
Some analysts attributed the share pricing popping after hours to this line, although it’s unclear just how new this new car would be.
Tesla’s shareholder update indicated that any new, cheaper vehicle would not necessarily be entirely new nor unlock massive new savings through an all-new production process. “This update may result in achieving less cost reduction than previously expected but enables us to prudently grow our vehicle volumes in a more capex efficient manner during uncertain times,” the update said.
Of the robotaxi, meanwhile, the company said it will “continue to pursue a revolutionary ‘unboxed’ manufacturing strategy,” indicating that just the ride-hailing vehicle would be built entirely on a new platform.
Musk also discussed how a robotaxi network could work, saying that it would be a combination of Tesla-operated robotaxis and owners putting their own cars into the ride-hailing fleet. When asked directly about its schedule for a $25,000 car, Musk quickly pivoted to discussing autonomy, saying that when Teslas are able to self-drive without supervision, it will be “the biggest asset appreciation in history,” as existing Teslas became self-driving.
When asked whether any new vehicles would “tweaks” or “new models,” Musk dodged the question, saying that they had said everything they had planned to say on the new cars.
One bright spot on the company’s numbers was the growth in its sales of energy systems, which are tilting more and more toward the company’s battery offerings.
Tesla said it deployed just over 4 gigawatts of energy storage in the first quarter of the year, and that its energy revenue was up 7% from a year ago. Profits from the business more than doubled.
Tesla’s energy business is growing faster than its car business, and Musk said it will continue to grow “significantly faster than the car business” going forward.
Revenues from “services and others,” which includes the company’s charging network, was up by a quarter, as more and more other electric vehicle manufacturers adopt Tesla’s charging standard.
Another speculative Tesla project is Optimus, which the company describes as a “general purpose, bi-pedal, humanoid robot capable of performing tasks that are unsafe, repetitive or boring.” Like many robotics projects, the most the public has seen of Optimus has been intriguing video content, but Musk said that it was doing “factory tasks in the lab” and that it would be in “limited production” in a factory doing “useful tasks” by the end of this year. External sales could begin “by the end of next year,” Musk said.
But as with any new Tesla project, these dates may be aspirational. Musk described them as “just guesses,” but also said that Optimus could “be more valuable than everything else combined.”
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The self-described “ecosocialist” ran an ultra-disciplined campaign for New York City mayor. Once he’s in office, the climate issue could become unavoidable.
Zohran Mamdani, the New York state assemblyman, democratic socialist, and Democratic nominee, was elected mayor of New York City on Tuesday night.
Many factors fueled his longshot rise to Gracie Mansion — a congested primary field, a gleam-in-his-eyes approach to new media, and an optimistic left-wing worldview rendered newly credible by global tumult — but perhaps above all was a nonstop, months-long performance of bravura message discipline. Since the Democratic primary began in earnest earlier this year, Mamdani has harped in virtually every public appearance on what he has described as New York’s “affordability crisis,” promising to lower the city’s cost of living for working-class residents.
He hammered that message even as the election required him to play a shifting set of roles. During the primary, he set himself apart from a field overflowing with progressives by showcasing his differences with the Democratic Party. During the general election, he became the consummate Democrat, earning the votes of the party’s most loyal voters even as the former governor and one-time old-guard Democrat Andrew Cuomo ran an independent bid. Fittingly, Mamdani’s victory speech Tuesday night alluded to and remixed lines from socialists and liberal Democrats alike — including Cuomo’s father, New York’s former governor Mario Cuomo.
“A great New Yorker once said that while you campaign in poetry, you govern in prose,” Mamdani said, paraphrasing the elder Cuomo. “If that must be true, let the prose we write still rhyme, and let us build a shining city for all.”
So given all the notes he struck during the campaign, it is revealing to consider those Mamdani left unplayed. One in particular stands out: Throughout the long mayoral campaign, Mamdani rarely spoke about climate change — often doing so only when directly asked.
This might not seem meaningful on its face. Mamdani had a lot of issues he could focus on, after all. (He also spoke intermittently about, say, K-12 education, even though as mayor he will oversee the nation’s largest school district.)
But in light of his biography, Mamdani’s relative reticence on climate change stands out. During his early career in the state legislature, Mamdani defined himself in part through his climate activism, and by his view that New York should be “leading the country in our fight against the climate crisis,” as he said in a 2022 press release. He helmed some of the most aggressive recent activist efforts to shut down, block, and replace fossil fuel infrastructure in Gotham. They provide a window into where his mayoralty could go — and also illustrate the fraught politics of climate change in Year 1 of Trump 2.0.
From his first days in the New York State Assembly in 2021, Mamdani placed himself at the forefront of the debate over the future of fossil fuels in New York’s energy system. “When I ran for this office, it was on a platform of housing, justice, and energy for all,” he said in a statement soon after his election.
Many of his biggest policy proposals as a legislator focused on climate change. He backed the Build Public Renewables Act, a bill that empowers New York’s state power agency to develop wind and solar projects in order to meet the state’s climate goals. He resisted NRG Energy’s push to replace an aging natural gas peaker plant in Astoria, Queens, with a newer power plant that would still burn gas. And he opposed the expansion of natural gas pipelines into the state while cosponsoring the Clean Futures Act, which would, he said, ban all new natural gas power plants across New York.
Climate change was the issue, he said, at the very heart of his political identity. In July 2022, after the state assembly expired without a vote on the Build Public Renewables Act and amid a heat wave in New York, he called for a special session to pass the bill, deeming climate change a “human catastrophe.”
“There are a number of bills that I would love to pass tomorrow. I’m not calling for a special session for all of them,” he told Spectrum News. “The reason we have to call for this one is because climate change is not waiting.”
In its fight against the Queens power plant, his legislative office — working alongside the Stop NRG Coalition, an alliance of local residents, the Democratic Socialists of America, and traditional environmentalists such as Earthjustice and the Sierra Club — called 36,000 households and sent more than 7,800 postcards asking residents to reject the plant, Mamdani later said. Ultimately, locals filed more than 6,000 comments to oppose the proposed plant; when the New York Department of Environmental Conservation ultimately denied a key permit in October 2022, Mamdani claimed victory.
He was also clear about who had lost that fight: big corporations and fossil fuel-aligned capitalism. “This shows when we organize against corporations that put capital over the collective, we can win a world where we all live with dignity,” he said. “Stopping the Astoria power plant is an amazing victory towards a habitable planet and the clean future we all deserve.”
Many of Mamdani’s other climate efforts were ultimately successful. The Build Public Renewables Act passed in April 2023 as part of the state budget and was signed into law by Governor Kathy Hochul. The state has not passed the Clean Futures Act, although regulators have rejected other proposed fossil-fuel power plants across the state, citing its 2019 climate leadership law.
In a little-watched May 2021 video that gives a concentrated dose of Mamdani’s political vision at the time, he described himself not as a socialist, but as a “proud ecosocialist” who believed that electricity should be treated as a “public good.”
“Did you ever wonder why New York state only gets 5% of its energy from wind and solar?” he asked in the video. “It’s because of one word: capitalism.” The way to fight that capitalistic hold on energy production, he said, was with public power — government ownership and development of zero-carbon generation.
Even after those victories, Mamdani remained a proud champion of climate issues. As recently as a year ago, he suggested that activism and agitation around climate change was a key way that progressives could differentiate themselves from Trump in the eyes of the working class. At a rally in late November last year, shortly after a drought resulted in a rare brush fire that consumed 2 acres of the city’s beloved Prospect Park, he exhorted the New York Power Authority, or NYPA, to move faster to develop its pipeline of renewables projects — and framed credible climate action as essential to countering Trump’s rise.
“The climate crisis does not care about any of the reasons that are usually given so much weight in Albany. It doesn’t care if you want to blame the supply chain. It doesn’t care if a private company says it has reduced profitability. It cares only if you build out renewable infrastructure,” he said.
“If you want to know how to defeat the Donald Trump far-right movement, it’s by showing we actually have a workable alternative,” he continued. “Because if working class people can’t breathe the air, if they can’t afford to live in the city they call home because they can’t find a union job, and if they look around at their favorite parks being on fire, why would they trust us?”
“It is time to show them why,” he concluded. “It’s time for the Build Public Renewables Act.”
Mamdani has continued to push for NYPA to accelerate its renewables construction — he posted a video of the same rally to his Instagram feed in September, encouraging his followers to file public comments with New York state.
As recently as February 2025, he described New York City as facing an “existential moment of our climate crisis” at a candidate forum, and said that enforcing the city’s climate laws would require “taking on the real-estate industry.”
But in the months since, his earlier bold rhetoric — casting practical concerns as no object when it comes to climate action — has faded, and he has evinced more sympathy for landlords and homeowners who may bear decarbonization’s costs. He still describes climate change in existential terms, but has become far less likely to bring it up unbidden in his own speeches and media appearances.
As a major party mayoral candidate, too, Mamdani largely avoided framing climate action as a necessary antidote to Trumpism. When seeking to contrast himself with the president, he focused almost entirely on cost of living issues. In a Fox News appearance in October, Mamdani addressed Trump directly and said that he would work with him to address New Yorkers’ cost of living.
His campaign website’s only stated climate proposal is a “Green Schools” plan to renovate 500 public schools, turn 500 asphalt schoolyards into green spaces, and construct “resilience hubs” at 50 schools. Speaking with The Nation in April — in one of his few recent long-form interviews on climate policy — Mamdani set that plan within his broader campaign, saying “climate and quality of life are not two separate concerns. They are, in fact, one and the same.” Schools, he said, offer “an opportunity for comprehensive climate action.”
But his website has few other details about what climate actions he might like to pursue once he takes office as mayor. Indeed, the candidate who once blamed capitalism for New York’s failure to build renewables is now promising to establish a “Mom-and-Pop Czar” to cut fines on small businesses and speed up permitting. It also gives few clues about how Mamdani would handle decarbonization’s inevitable trade-offs. If achieving a faster renewables buildout led to higher energy prices for consumers and small businesses, what would he do?
Even in situations where his slogans could reasonably connect to some climate benefit, Mamdani did not complete the handshake. His website does not mention the pollution benefits of fast and free bus service, for instance, even though free transit in other campaigns has been described as a climate policy. His 25-minute victory speech, delivered to a jubilant crowd on Tuesday night, did not mention climate change at all.
Regardless of what he’s said, Mamdani will be required to take big actions on climate policy as mayor. The most significant will likely arise from an ordinance called Local Law 97, which requires New York City’s large buildings to reduce their greenhouse gas emissions by 2050. That law’s strict new set of pollution caps and penalties will start in 2029, and many landlords are set to pay big fines. During the second mayoral debate, Mamdani repeated that the “climate crisis is one of the most pressing issues facing this city,” and said he wants the law’s fines to be enforced. But he also added that “the city should make it easier for buildings to comply.”
Mamdani has also argued that the city and state should renew a set of tax breaks to make it cheaper for large residential buildings, like condos and co-ops, to meet the law’s targets, and has proposed creating a “one-stop shop” for Local Law 97 compliance in the city governance, according to his debate remarks and a memo about homeowner policy released by his campaign.
In replacing climate change with cost of living, Mamdani has moved closer to what appears to be an emerging consensus among his party. Recent autopsies of the 2024 election have argued that voters believed Democrats were too focused on issues like climate change and not enough on affordability or inflation. Mamdani’s relentless focus on near-term costs — and his embrace of clear, actionable, and frankly non-climate-related slogans — suggests that one young ecosocialist might now agree with them. His ultimate victory suggests that it wasn’t a bad gamble.
The next governor of the Garden State turned a potential liability into an advantage.
Mikie Sherrill was vulnerable. While New Jersey’s gubernatorial elections tend to favor the party not in control of the White House, no party had won three straight terms in the governor’s mansion at Drumthwacket since the Kennedy administration.
Yet the Democratic congresswoman and former Navy helicopter pilot defeated her Republican rival, former New Jersey State Assemblyman Jack Ciattarelli, on Tuesday night by a comfortable margin of 56% to 43% at press time.
To get there, Sherrill had to overcome not only historical precedent but a potentially devastating kitchen table issue: New Jersey has seen its already high electricity prices rise faster than almost anywhere else in the country, with retail rates going up as much as 20% this summer alone.
It could have proved politically lethal. Heatmap polling has shown that voters blame their state government and electric utility for rising rates more than anyone currently or formerly in power in Washington, D.C. And they are worried about electricity prices — according to CNN exit polling, the top issues among New Jersey voters were taxes and the economy, with about 60% saying that electricity costs were a “major problem where they live.”
Sherrill sought to turn the electricity cost issue from a burden to an advantage by making a clear and simple pledge: that she would declare a state of emergency and freeze utility bills. “On day one, I’m declaring a state of emergency on utility hikes. I’ll freeze those rate hikes to lower your family’s bills… New Jersey, I am not playing. I am not writing a strongly worded letter, I am not starting up a working group, I'm not doing a 10 year study. I am declaring a state of emergency,” Sherrill declared at a pre-election rally.
The results speak for themselves, but they are not entirely unexpected. Sherrill had consistently led in polling against Ciattarelli and even had a 10-point lead on who would handle energy costs better, according to a Fox News poll.
“Mikie Sherrill took the issue of soaring utility bills seriously and centered her campaign around a concise solution to this ongoing crisis,” Skanda Amarnath, the executive director of economics think tank Employ America, told me. “She deserves credit for not shying away from what could have easily been a liability of a campaign issue.”
Sherrill was able to use the electricity prices issue to create some space from her predecessor, incumbent governor Phil Murphy. Murphy was associated with a renewables forward strategy, including offshore wind, and had cast some doubt on the effectiveness and practicality of Sherrill’s pledge. “I’m not sure how you’d actually do that,” Murphy told reporters in August.
“Governor Murphy has taken a lot of blame for increased energy prices. He kind of went all in on clean energy. I think she’s trying to create distance between herself and an incumbent from her party,” Dan Crawford, senior vice president at Echo Communications Advisors, a public relations firm that specializes in climate and clean energy, told me.
Sherrill also embraced nuclear energy on the trail, one of the few non-politically-polarizing energy generation sources left in the United States, saying she would “immediately develop a plan for a new nuclear power site in Salem County.”
Ciattarelli stuck to standard Republican moves on energy, saying he would ban offshore wind and take New Jersey out of the Regional Greenhouse Gas Initiative, the Northeastern cap-and-trade system.
“The price freeze was a very smart move because it was very old in a way. It's very Trumpy,” Crawford said. “I'm going to use an executive order to freeze prices. I'm going to fight for you. I'm going to take the fight to PJM. She’s not really worrying as much about the details, but she’s calling attention to the issue. I think that did kind of make energy prices a bigger issue in the campaign and put Ciattarelli on the defensive a little bit.”
Now Sherrill will have to deal with the politics and practicalities of actually implementing a price freeze, navigating potential legal challenges, and maintaining the necessary investment levels in the state’s grid in order to meet its decarbonization goals.
“For the first time in a long time, utility bills became a top issue in a gubernatorial election. In New Jersey, both candidates leaned heavily on utility affordability messaging, feeling pressure from voters to demonstrate leadership on this issue,” Charles Hua, the executive director of Powerlines, told me. “Now, it is imperative for Governor Sherrill to deliver on her promise to make utilities affordable — voters will be paying attention.”
Environmental groups hailed Sherrill’s win as a victory for renewables against the regulatory assault launched on them by President Trump and as a sign that advocates for renewables could effectively leverage the electricity price issue to their advantage.
“Make no mistake, out of control energy costs were a top tier issue in this year’s election, and in Sherrill, New Jerseyans have elected a governor who knows that renewable energy is cheaper, cleaner, and faster to deploy than dirty, old alternatives, and who has a strong mandate to lead the Garden State forward,” EDF Action president David Klieve said in a statement.
And the electricity price issue will likely flare up in statewide and national races in 2026.
“Electricity price spikes are going on all over the country,” Justin Balik, a vice president at Evergreen Action, told me. “Folks should be taking a close look at how Mikie messaged around these issues.”
A “seismic change” comes for the state’s Public Service Commission.
Voters in Georgia ousted two Republican energy regulators in a statewide election on Tuesday, shaking up the party’s nearly two decade-long run holding all five seats on the state’s Public Service Commission.
Democrats Alicia Johnson and Peter Hubbard, who campaigned on the promise to protect ratepayers from skyrocketing energy bills by pushing for more renewable energy, won in a landslide against incumbents Tim Echols and Fitz Johnson.
“The election of two new Public Service Commissioners represents a seismic change in Georgia’s energy landscape and reflects a new politics of electricity in America,” Charles Hua, the executive director of PowerLines, a nonprofit focused on reforming utility regulation, said in a statement. “Consumers have sent a clear message: they are paying attention and will hold public officials accountable for decisions that impact their utility bills.”
Public Service Commissioners are key gatekeepers in the energy transition. When utilities want to build new power plants, transmission lines, pipelines, or other energy infrastructure, they first have to get approval from the local PSC. Not only do commissioners preside over what gets built, but also how much of the cost can be put on ratepayers. They are smack dab in the middle of today’s holy trinity of energy politics — climate change, data centers and demand growth, and affordability.
Every state has a Public Service Commission, but only 10 let voters choose who sits on it — elsewhere commissioners are appointed by the governor or legislature. Utility regulation is so esoteric, however, that these races rarely draw much attention. In Georgia, there was an even bigger uphill battle than usual to engage voters, since in many places, the PSC contest was the only race on the ballot. Yet mounting frustration over electricity costs propelled the race into the spotlight.
“I've never seen a Public Service Commission race catch the cultural zeitgeist and break through to the general public like this one has,” Daniel Tait, the research and communications director for the Energy and Policy Institute, a utility watchdog group, told me.
There’s also been a long buildup to the race after it was held up for the past two election cycles due to a lawsuit. During that time, the commission approved six rate hikes for customers of Georgia Power, the largest utility in the state, in part to pay for major cost overruns on new nuclear reactors at Plant Vogtle. Rates increased by 33% in the past 2 years, translating to an additional $500 per year for the average household, according to PowerLines. Meanwhile, Georgia Power reported $4 billion in profits last year.
“If Georgia Power comes to the commission and wants a rate increase, they get it,” said Tait. “If they want to build a bunch of gas plants, they get it. If they want to raise their profit margin, they get it.”
Now Georgia Power is proposing a major expansion of natural gas power — more than 5 nuclear reactors’ worth — mostly to meet data center demand. The new commission will be assessing those plans and have power to approve or reject the utility’s proposed generation projects.
Johnson and Hubbard, the two Democrats, have promised to bring greater scrutiny to utility spending. With just two out of five seats, though, they may be limited in what they can do. Tait expects they might be able to find a third vote on some issues, such as strengthening data center rules and taking another look at utility profit margins — especially if sitting Republicans get skittish about their own seats after this election. The PSC in Louisiana previously had a similar three to two makeup, Tait said, and there were a number of votes that did not split on party lines.
Hubbard, however, will have to build his reputation in record time — while a typical term on the commission is six years, the lawsuits screwed up the schedule for Hubbard’s seat, and he’ll be forced to run for re-election next year.