AM Briefing
Endangered Species Act in Danger
On Turkey’s COP31 win, data center dangers, and Michigan’s anti-nuclear hail mary
Sign In or Create an Account.
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Welcome to Heatmap
Thank you for registering with Heatmap. Climate change is one of the greatest challenges of our lives, a force reshaping our economy, our politics, and our culture. We hope to be your trusted, friendly, and insightful guide to that transformation. Please enjoy your free articles. You can check your profile here .
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Subscribe to get unlimited Access
Hey, you are out of free articles but you are only a few clicks away from full access. Subscribe below and take advantage of our introductory offer.
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Create Your Account
Please Enter Your Password
Forgot your password?
Please enter the email address you use for your account so we can send you a link to reset your password:
On Turkey’s COP31 win, data center dangers, and Michigan’s anti-nuclear hail mary
Members of the nation’s largest grid couldn’t agree on a recommendation for how to deal with the surge of incoming demand.
California energy companies are asking for permission to take in more revenue. Consumer advocates are having none of it.
On ravenous data centers, treasured aluminum trash, and the drilling slump
Rob and Jesse talk data center finance with the Center for Public Enterprise’s Advait Arun.
New Jersey Governor-elect Mikie Sherrill made a rate freeze one of her signature campaign promises, but that’s easier said than done.
So how do you freeze electricity rates, exactly? That’s the question soon to be facing New Jersey Governor-elect Mikie Sherrill, who achieved a resounding victory in this November’s gubernatorial election in part due to her promise to declare a state of emergency and stop New Jersey’s high and rising electricity rates from going up any further.
The answer is that it can be done the easy way, or it can be done the hard way.
What will most likely happen, Abraham Silverman, a Johns Hopkins University scholar who previously served as the New Jersey Board of Public Utilities’ general counsel, told me, is that New Jersey’s four major electric utilities will work with the governor to deliver on her promise, finding ways to shave off spending and show some forbearance.
Indeed, “We stand ready to work with the incoming administration to do our part to keep rates as low as possible in the short term and work on longer-term solutions to add supply,” Ralph LaRossa, the chief executive of PSE&G, one of the major utilities in New Jersey, told analysts on an earnings call held the day before the election.
PSE&G’s retail bills rose 36% this past summer, according to the investment bank Jefferies. As for what working with the administration might look like, “We expect management to offer rate concessions,” Jefferies analyst Paul Zimbrado wrote in a note to clients in the days following the election, meaning essentially that the utility would choose to eat some higher costs. PSE&G might also get “creative,” which could mean things like “extensions of asset recoverable lives, regulatory item amortization acceleration, and other approaches to deliver customer bill savings in the near-term,” i.e. deferring or spreading out costs to minimize their immediate impact. “These would be cash flow negative but [PSE&G] has the cushion to absorb it,” Zimbrado wrote.
In return, Silverman told me that the New Jersey utilities “have a wish list of things they want from the administration and from the legislature,” including new nuclear plants, owning generation, and investing in energy storage. “I think that they are probably incented to work with the new administration to come up with that list of items that they think they can accomplish again without sacrificing reliability.”
Well before the election, in a statement issued in August responding to Sherrill’s energy platform, PSE&G hinted toward a path forward in its dealings with the state, noting that it isn’t allowed to build or own power generation and arguing that this deregulatory step “precluded all New Jersey electric companies from developing or offering new sources of power supply to meet rising demand and reduce prices.” Of course, the failure to get new supply online has bedeviled regulators and policymakers throughout the PJM Interconnection, of which New Jersey is a part. If Mikie Sherrill can figure out how to get generation online quickly in New Jersey, she’ll have accomplished something more impressive than a rate freeze.
As for ways to accomplish the governor-elect’s explicit goal of keeping price increases at zero, Silverman suggested that large-scale investments could be paid off on a longer timeline, which would reduce returns for utilities. Other investments could be deferred for at least a few years in order to push out beyond the current “bubble” of high costs due to inflation. That wouldn’t solve the problem forever, though, Silverman told me. It could simply mean “seeing lower costs today, but higher costs in the future,” he said.
New Jersey will also likely have to play a role in deliberations happening in front of the Federal Energy Regulatory Commission about interconnecting large loads — i.e. data centers — a major driver of costs throughout PJM and within New Jersey specifically. Rules that force data centers to “pay their own way” for transmission costs associated with getting on the grid could relieve some of the New Jersey price crunch, Silverman told me. “I think that will be a really significant piece.”
Then there’s the hard way — slashing utilities’ regulated rates of return.
In a report prepared for the Natural Resources Defence Council and Evergreen Collaborative and released after the election, Synapse Economics considered reducing utilities’ regulated return on equity, the income they’re allowed to generate on their investments in the grid, from its current level of 9.6% as one of four major levers to bring down prices. A two percentage point reduction in the return on equity, the group found, would reduce annual bills by $40 in 2026.
Going after the return on equity would be a more difficult, more contentious path than working cooperatively on deferring costs and increasing generation, Silverman told me. If voluntary and cooperative solutions aren’t enough to stop rate increases, however, Sherrill might choose to take it anyway. “You could come in and immediately cut that rate of return, and that would absolutely put downward pressure on rates in the short run. But you establish a very contentious relationship with the utilities,” Silverman told me.
Silverman pointed to Connecticut, where regulators and utilities developed a hostile relationship in recent years, resulting in the state’s Public Utilities Regulatory Authority chair, Marissa Gillett, stepping down last month. Gillett had served on PURA since 2019, and had tried to adopt “performance-based ratemaking,” where utility payouts wouldn’t be solely determined by their investment level, but also by trying to meet public policy goals like energy efficiency and reducing greenhouse gas emissions.
Connecticut utilities said these rules would make attracting capital to invest in the grid more difficult. Gillett’s tenure was also marred by lawsuits from the state’s utilities over accusations of “bias” against them in the ratemaking process. At the same time, environmental and consumer groups hailed her approach.
While Sherrill and her energy officials may not want to completely overhaul how they approach ratemaking, some conflict with the state’s utilities may be necessary to deliver on her signature campaign promise.
Going directly after the utilities’ regulated return “is kind of like making your kid eat their broccoli,” Silverman said. “You can probably make them eat it. You can have a very contentious evening for the rest of the night.”
Current conditions: Unseasonable warmth of up to 20 degrees Fahrenheit above average is set to spread across the Central United States, with the potential to set records • Scattered snow showers from water off the Great Lakes are expected to dump up to 18 inches on parts of northern New England • As winter dawns, Israel is facing summertime-like temperatures of nearly 90 degrees this week.
The Department of the Interior finalized a rule last week opening up roughly half of the largely untouched National Petroleum Reserve-Alaska to oil and gas drilling. The regulatory change overturns a Biden-era measure blocking oil and gas drilling on 11 million acres of the nation’s largest swath of public land, as my predecessor in anchoring this newsletter, Heatmap’s Jeva Lange, wrote in June. The Trump administration vowed to “unleash” energy production in Alaska by opening the 23 million-acre reserve, as well as nearby Arctic National Wildlife Refuge, to exploration. By rescinding the Biden-era restrictions, “we are following the direction set by President Trump to unlock Alaska’s energy potential, create jobs for North Slope communities, and strengthen American energy security,” Secretary of the Interior Doug Burgum said in a statement, according to E&E News. In a post on X, Alaska Governor Mike Dunleavy, a Republican, called the move “yet another step in the right direction for Alaska and American energy dominance.”
The new rule is expected to face challenges in court.“Today’s action is another example of how the Trump administration is trying to take us back in time with its reckless fossil fuels agenda,” Erik Grafe, a lawyer with Earthjustice, an environmental nonprofit group, said in a statement to The New York Times.

For the first time in United Nations climate negotiations, countries attending the COP30 summit in Belém, Brazil, are grappling with the effects of mining the minerals needed for batteries, solar panels, and wind turbines, Climate Home News reported. In a draft text on Friday, a working group at the summit recognized “the social and environmental risks associated with scaling up supply chains for clean energy technologies, including risks arising from the extraction and processing of critical minerals.”
The statement came amid ongoing protests from Indigenous groups, including those from Argentina who warned that the world’s increased appetite for South America’s lithium reserves came at the cost of local water resources for peoples who have lived in regions near mining operations for millennia.
Nearly one fifth of the Environmental Protection Agency’s workforce has opted into President Donald Trump’s mass resignation plan, according to new data E&E News obtained on Friday. As of the end of September, the EPA’s payroll included 15,166 employees, according to data released during the government shutdown, meaning that more than 2,620 employees accepted the “deferred resignation” offer.
Under Administrator Lee Zeldin, the EPA has advanced proposals that even the agency under Scott Pruitt, the top environmental regulator at the start of Trump’s first term, dared not attempt. Zeldin has moved to rescind the endangerment finding, which forms the legal basis for virtually all major climate regulations at the EPA. Zeldin even tried to kill off the popular Energy Star program for efficient appliances, but — as I wrote earlier this month — he backed off the plan.
Sign up to receive Heatmap AM in your inbox every morning:
The next-generation geothermal company Eavor is preparing to start up its debut closed-loop system at its pilot project in Germany, Think Geoenergy reported. The startup has stood out in the race to commercialize technology that can harness energy from the Earth’s molten core in more places than conventional approaches allow. While rivals such as Fervo Energy, Sage Geosystems, and XGS Energy, pursue projects in the American Southwest, Eavor focused its efforts on Germany, where it saw potential to tap into the lucrative district heating market. Eavor also developed special drilling tools that promised to shave “tens of millions” off the cost of digging wells. As I wrote here last month, the company just completed successful tests of its technology.
BlackRock’s Global Infrastructure Partners inked a deal with the Spanish construction company ACS to form a joint venture to develop roughly $2.3 billion worth of data centers. The 50-50 joint venture will consist of ACS’ existing data-center portfolio, including 1.7 gigawatts of assets under development in Europe, the U.S., and Australia. ACS is contributing its existing portfolio to the business, The Wall Street Journal reported, “in exchange for about 1 billion euros in cash and initial earnout payments of up to 1 billion euros” if the data centers hit certain commercial milestones. “Global demand for data centers is set to grow more than 15 times by 2035, driven by the expansion of AI, cloud migration, and the exponential rise in data volumes,” ACS CEO Juan Santamaria said.
In a first, Swedish scientists have managed to successfully isolate and sequence RNA from an Ice Age wooly mammoth. Researchers at Stockholm University extracted the genetic information from mammoth tissue preserved in Siberian permafrost for nearly 40,000 years. The findings, published in the journal Cell, show that RNA, in addition to DNA and proteins, can be preserved over long periods of time. “With RNA, we can obtain direct evidence of which genes are ‘turned on,’ offering a glimpse into the final moments of life of a mammoth that walked the Earth during the last Ice Age. This is information that cannot be obtained from DNA alone,” Emilio Mármol, lead author of the study, said in a press release.
Editor’s note: This article has been updated to clarify the staff shrinkage at the EPA.