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Reading between the lines of Governor Kathy Hochul’s big nuclear announcement.

With New York City temperatures reaching well into the 90s, the state grid running on almost two-thirds fossil fuels, and the man who was instrumental in shutting down one of the state’s largest sources of carbon-free power vying for a political comeback on Tuesday, New York Governor Kathy Hochul announced on Monday that she wants to bring new, public nuclear power back to the state.
Specifically, Hochul directed the New York Power Authority, the state power agency, to develop at least 1 gigawatt of new nuclear capacity upstate. While the New York City region hasn’t had a nuclear power plant since then-Governor Andrew Cuomo shut down Indian Point in 2021, there are three nuclear power plants currently operating closer to the 49th Parallel: Ginna, FitzPatrick, and Nine Mile Point, which together have almost 3.5 gigawatts of capacity and provide about a fifth of the state’s electric power, according to the nuclear advocacy group Nuclear New York. All three are now owned and operated by Constellation Energy, though FitzPatrick was previously owned by NYPA.
Hochul’s announcement did not specify a design or even a location for the new plant, but there were some hints. The press release describes “at least one new nuclear energy facility with no less than one gigawatt of electricity.” While 1 gigawatt is the capacity of a Westinghouse AP1000, the large, light-water reactor built at Plant Vogtle in Georgia, the explanation seems to leave room for the possibility of multiple, smaller plants.
Then there was where Hochul chose to make the announcement, in front of the monumental Robert Moses Niagara Power Plant, which, when it was built in 1961, was the largest hydropower plant in the western hemisphere. The release includes an intriguing reference to the country just on the other side of the river, saying that the plan “will allow for future collaboration with other states and Ontario, building on regional momentum to strengthen nuclear supply chains, share best practices, and support the responsible deployment of advanced nuclear technologies.”
To me at least, all this points to the possibility that we could actually be talking about a small modular reactor, specifically GE Hitachi’s BWRX-300, one of a handful of SMR designs vying for both regulatory approval and commercial viability in the U.S. Canada’s Ontario Power Generation recently approved a plan to build one, with the idea to eventually build three more for a total 1.2 gigawatts of generating capacity, i.e. roughly the amount Hochul’s targeting. The Tennessee Valley Authority, America’s largest public power provider, is also looking at building a BWRX-300. Whichever is completed first will become the first operating SMR in North America. (A NYPA spokesperson told me there has been “no determination on technology yet,” nor on location.)
There are a few policy conclusions we can draw from the announcement, as well, one being that Hochul has determined New York’s energy needs do not match up with its current, renewables-heavy energy roadmap set out more than five years ago. The 2019 Climate Leadership and Community Protection Act (signed by Cuomo) set out a goal for New York to supply 70% of its electricity with renewables by 2030; about a year ago, the Hochul administration said that it would likely not meet that target, which has only slipped farther from view under the Trump administration’s assault on the offshore wind industry, which was supposed to anchor the state’s renewables supply — especially near New York City, where land is scarce but shoreline is plentiful.
The new nuclear plan also has a distinctively upstate appeal, which is not surprising considering Hochul’s Buffalo roots. (She said during the announcement that she had visited the Niagara plant, which is just outside Buffalo, “so many times.”) The upstate power grid is less carbon intensive than the downstate grid and is due to receive much of the wind and solar development necessary to meet New York’s climate goals. But the northern reaches of the state are also more politically conservative and more rural, making it both an inviting target for renewables development and a potential wellspring of opposition.
“The fundamental challenge of wind, solar, and storage across upstate is that it’s subject to a lot of local opposition,” Ben Furnas, who served as director of the Mayor’s Office of Climate and Sustainability in New York City, told me. “Something that’s remarkable about nuclear power is that the land footprint is more modest.” (The NYPA spokesperson said that NYPA’s own plans for renewable development were not being altered.)
Nuclear power plants can also be economic lifelines — especially in rural areas — due to the permanent, high-paying jobs they support and direct economic benefits to the surrounding communities.
“There’s a lot of real win-win deals to be struck,” Furnas said. “It’s not an unknown, radical, alien notion. Plenty of people work in those plants and live near them. It’s a very different politics than what was happening in Hudson Valley around Indian Point,” where environmental groups like Riverkeeper (long associated with former Cuomo associate and current Secretary of Health and Human Services Robert F. Kennedy, Jr.), had worked for years to shut down the plant.
Monday’s nuclear announcement included supportive quotes not just from the usual suspects of state energy and environmental officials and union leaders, but also from the chief executive of Micron, which is set to start working on a semiconductor fabrication facility in the central part of the state. “A critical factor in the success of the semiconductor ecosystem is access to affordable, reliable energy. We commend New York State for advancing an all-of-the-above energy strategy — including nuclear power,” Micron CEO Sanjay Mehrotra said in a statement.
“To power this one facility, Micron is going to need so much power — so much incredible power — and there’s only one commercially viable option that can deliver that much clean, renewable, reliable power, and that’s what’s been operating in New York for decades: nuclear energy,” Hochul said Monday. “Harnessing the power of the atom is the best way to generate steady zero-emission electricity, and to help this transition.”
The mainstream environmental groups that supported the renewables-focused 2019 law (many of which either oppose nuclear power or are at best neutral towards it) were nowhere to be found during today’s announcement, however, and the plan has already drawn skepticism from some progressives.
Liz Krueger, a Manhattan Democrat who chairs the New York state senate’s finance committee, said in a statement that she had “significant concerns” about the nuclear plan, including its cost effectiveness, how to dispose of nuclear waste, the time required to site and build the project, whether other renewable options could fill the gap instead, and whether it has the “full informed consent from impacted communities.”
“I have yet to see any real-world examples of new nuclear development” that have met all these concerns, Krueger said. New York has a checkered history of nuclear development: Long Island ratepayers spent decades paying for the completed but never operational Shoreham nuclear plant, whose costs ballooned by billions of dollars as construction dragged on from 1973 to 1984.
But the announcement comes at a time when the federal regulatory and tax balance is tipping toward nuclear regardless. The Trump administration issued a fleet of executive orders looking to speed up nuclear construction and regulatory approvals, and Senate Republicans’ version of the mega budget reconciliation bill includes far more generous treatment of nuclear development compared to wind and solar.
Public Power NY, an advocacy group that supports renewables development by NYPA, expressed skepticism about the nuclear plan in spite of these supportive signs.
“Hochul’s decision to step in based on promises from Donald Trump shows just how unserious she is about New Yorker’s energy bills and climate future. NYPA should be laser focused on rapidly scaling up their buildout of affordable solar and wind which is the only way to meet the state’s science-based climate goals and lower energy bills,” the group said in a statement.
For his part, Furnas was more pragmatic. “It’s really good that Governor Hochul is putting everything on the table when it comes to ensuring reliable generation for New York State and to meet clean air and carbon emission goals,” he said. “It would be foolish and unfortunate to not look at everything she can.”
Hochul herself appears determined to push through.
During the announcement, referring to the buzzing power plant behind her, Hochul said that “belief in sometimes impossible ideas” can bring people together. The power plant currently standing on that site was built in less than three years after an earlier plant on the Niagara collapsed. New nuclear power in New York may have seemed impossible, but it might still happen.
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New tariffs and price floors for imported polysilicon aim to protect U.S. producers from Chinese competition.
Almost exactly a month after President Donald Trump’s landmark tax law effectively eliminated a key incentive for solar developers to buy panels made in America, his administration is throwing a lifeline to manufacturers behind the nation’s fastest-growing and quickest-to-deploy source of electricity.
On Thursday afternoon, after the markets closed, the White House announced new tariffs and minimum import prices for imported polysilicon as part of an effort to prop up the domestic supply chain for the primary ingredient in semiconductors and solar panels.
The levies come in response to complaints from polysilicon makers that the dearth of U.S. factories demanding solar-grade polysilicon made it difficult to compete with Chinese giants who benefit from selling both the solar- and microchip-grade versions of the ultra-pure industrial material derived from quartz and sand. The companies made the petition under Section 232 of the Trade Expansion Act of 1962, which gives the White House the power to restrict imports and charge tariffs on imports that demonstrably impair national security.
The Trump administration will impose a 15% tariff on all imports and set baseline prices at which the levies would apply for each component in the solar supply chain. Polysilicon will have a minimum import price of $20 per kilogram. Wafers, the ultra-thin slice of crystalline silicon that acts as the foundation of a photovoltaic cell, and ingots, the silicon material before it’s sliced, will start at $100 per kilogram. Cells, the tiny silicon-based devices that absorb photons from sunlight and break away electrons that generate electrical currents, will have a minimum price of $0.22 per watt. Modules, the completed panels, are $0.38 a watt.
The majority of U.S. solar factories simply assemble wafers and cells into modules, leaving them reliant on imports. But the policy won’t hit all at once. The Commerce Department is giving companies 120 days before the restrictions kick in.
The agency will also set up an incentive program that allows manufacturers that make large capital investments in the U.S. to avoid the worst of the levies. Jeffrey Kessler, the Under Secretary of Commerce in charge of executing on 232 cases, pushed for the provision as a bid to avoid what happened when Europe attempted to protect its own solar manufacturers by setting a minimum import price meant to keep Chinese companies from flooding the market. That policy ended up subsidizing the very Chinese parent companies putting market domination ahead of profits back home.
Avoiding that outcome is tricky under any circumstances. China and the U.S. don’t have a tax treaty, which makes it difficult for American authorities to confirm a company’s ownership structure. The surest way to seal off the U.S. market is with 100% tariffs such as those imposed on Chinese electric vehicles.
In this case, the Commerce Department decided to allow companies with active plans to onshore the solar supply chain to apply for an exemption from the new trade rules. Ahead of the announcement, sources familiar with the talks listed South Korean giant Qcells, which just opened the nation’s largest integrated solar factory in Georgia, as one obvious example of a company that would pass muster.
Solar manufacturers applauded the move. “Today’s decision from the White House balances the reality of where America’'s solar energy manufacturing is today while advancing our collective ambition to onshore the entire supply chain from polysilicon to finished panels in the U.S.,” Andy Park, the global CEO of Qcells, said in an emailed statement. “American solar manufacturers are ready to rise to the occasion.”
The trade action “creates a market where wafer and cell manufacturing can happen in the United States, and companies can go fully vertically integrated,” Nick Iacovella, the executive vice president of the Coalition for a Prosperous America, a bipartisan trade association that represents manufacturing companies at every stage of the polysilicon supply chain, told Heatmap.
“What this does is cement a key input in the supply chain that’s critical not just for chips, but for the most efficient, best-performing solar modules,” he said. “We shore up our chip supply chain at a time when there is a greater urgency to derisk from China invading Taiwan — and also during a time when the AI data center boom is driving massive demand for new energy generation, with solar driving a lot of the new capacity coming onto the grid.”
The levies come a week after the Federal Communications Commission banned the use of new types of foreign-made inverters, the equipment needed to patch solar panels onto the grid. Analysts said the ban would have a limited effect on the solar industry, since it allows for the current models on the market to be sold. The purpose of that policy is to prop up domestic factories at a moment when Europe, despite its struggle to reindustrialize, is experiencing an inverter manufacturing boom.
Despite those intentions, multiple industry sources who spoke on condition of anonymity told Heatmap that trade restrictions alone would likely prove insufficient to prop up a domestic solar supply chain at the scale needed to minimize imports.
The latest data from the Rhodium Group found that new U.S. investments in solar factories peaked from the second half of 2022 through the first quarter of 2025. During that time, as Emily reported in May, the announced projects averaged more than $2 billion per quarter. At least 30 new utility-scale solar factories opened across the U.S. just last year.
Since then, development has plummeted. Investment in new solar factories announced fell to about $350 million in the first quarter of 2026, a drop of more than 80%.
By raising the price of panels overall, the Commerce Department is providing a particular boon to America’s leading solar manufacturer, First Solar. While the Phoenix-based panel-maker’s thin-film cell technology doesn’t use polysilicon, the price hike from the tariffs will give the company an edge by allowing the company to either raise its prices to match new industry-wide benefits or undercut its competitors. Investors in the company told Heatmap its recent bookings average sales of about $0.36 per watt.
Another clear winner is T1 Energy, which Roth analysts say “would eventually be a beneficiary once it ramps up its U.S. cell manufacturing, which is now expected to come online” next year. The company’s share price spiked more than 10% in after-hours trading, while First Solar was up more than 8%.
“There are a lot of people in the administration who support solar,” Iacovella said. “They just don’t want a bunch of Chinese solar panels.”
Still, he added, “this is all about the chip supply chain.” While the benefits to solar are welcome, “this is a two-for-one.”
The Trump administration has signed a deal with RWE, a German developer, to cancel more than 3 gigawatts of offshore wind near New York and New Jersey.
This is an edition of Heatmap Daily, an evening review of the day’s news written by our executive editor. Sign up for it here.
There goes another one. The German energy developer RWE has signed a $1.2 billion deal with the Trump administration to give up its claims to develop offshore wind farms in New York, California, and Louisiana. The Trump administration has now bought out 12 offshore wind leases, paying energy developers $3.93 billion for the privilege of not developing renewable energy along the American coastline.
Today’s is the largest payout yet — and fittingly so, I suppose, because it is among the most damaging. As part of the deal, RWE abandoned its plans to build a more than 3-gigawatt offshore wind farm in the New York Bight. When RWE first leased that site in 2022, it paid $1.1 billion for it — the biggest offshore wind lease auction ever held in the United States.
RWE promised that the resulting facility, dubbed Community Offshore Wind, would generate 700 jobs and $3 billion in local economic activity. It would have been close enough to New Jersey and New York that its power could have flowed to either state, although no final power contract was ever signed. Now all of that is kaput.
In the eyes of some critics, RWE had overpaid for that lease — and in that context, the Trump administration has I suppose done the German developer a favor, bailing them out from a bad investment in a legally dubious manner. (New York’s attorney general is suing to block a similar payout to Total Energies.)
But even beyond that context, there remains one big problem with these deals — an issue even more glaring now than when Trump started targeting wind projects last year. It is that the United States — and especially the Northeast, and especially New York — needs as much electricity as it can get right now. The Trump administration is striving to bring new power demand online in the form of data centers, but cutting off new sources of generation if they fail to meet its aesthetic standards.
Anticipating this sensitivity, RWE’s press statement announcing the deal goes on to list major energy projects that it’s committed to in the United States. These projects all involve, coincidentally (or not), fossil fuels: They include a $900 million stake in a Louisiana liquified natural gas export terminal and a $300 million reservation for new natural gas turbines. (RWE implies, but doesn’t say outright, that it will build 15 natural gas peaker plants with these turbines.) When we asked for more details about these projects, and whether we should anticipate anything new, RWE immediately got back to us: “We are unable to discuss further details on the investments.”
Yet as RWE well knows, these projects won’t help solve a coming energy shortage in New York or New England. For one, the Louisiana LNG export terminal is, well, an export terminal: It will help move energy out of the country, not generate more of it at home. Those exports might boost Americans’ fortunes in a vague, long-term, balance-of-payments way, but they won’t keep a lid on anyone’s power bills (which, by the way, just hit an all-time high). More importantly, the 15 peaker plants that RWE cites are largely going to be built … in other regions of the country. If the lights go out on Houston Street, a new gas plant in Houston can’t help.
Americans paid $217 on average for electricity last month, according to Heatmap and MIT’s Electricity Price Hub.
July is typically the season of high electricity bills, and this year is no exception.
Nationally, the average electricity bill spiked to $217, an all-time high, according to new data from Heatmap and MIT’s Electricity Price Hub. That’s up from $177 in June, and $215 last July. Meanwhile, electricity rates were 19 cents per kilowatt-hour, virtually unchanged from June and slightly higher than July of last year.
Throughout the country, many ratepayers are seeing higher costs and charges in the portion of their bill covering the cost of power generation.
Once again, some of the most notable electricity price and bill trends were seen in the mid-Atlantic region, the heart of the data center boom and the anchor area of the PJM Interconnection. The region also includes Virginia, where Florida utility and energy developer NextEra is attempting to acquire the commonwealth’s dominant utility, Dominion.
In July, Dominion customers saw typical generation charges rise to $155 a month, up from $124 a year ago. Overall bills for Dominion customers were about $259 this past month.
The higher bills are in part due to the “fuel charge rider” that went into effect this past month to help recover about $1 billion in additional generation costs claimed by the utility. Those charges stem in part from higher fuel costs this past winter, when natural gas prices spiked to their highest level since the winter of 2022-23, Dominion officials said in a filing to the state’s utilities regulator. The MIT researchers estimate that the fuel charge added around $53 to July bills, up $12 from July of last year.
In neighboring Delaware, bills were $216 a month in July, a record high, while prices were around 19 cents per kilowatt-hour. Customers of the state’s main utility, Delmarva Power, saw a near 20% hike in the supply charge in their standard service offerings, as prices rose from around 16 cents per kilowatt-hour from last year.
The Delaware Public Service Commission voted at the beginning of last month to allow an interim rate increase of about $3 per month for the typical customer, which went into effect July 9. Soon after, Delaware Governor Matt Meyer signed a law giving the state’s regulators more discretion to reject putting certain utility costs into the rate base and thus limit subsequent price hikes requested by utilities. The governor’s office described the law as a mechanism “to prioritize prudent spending over unchecked cost recovery.”