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A zhuzhed-up explanation of the international plastics treaty negotiations you definitely didn't pay attention to this week.

Let’s just admit it: The INC-2 has a pizzazz problem. For one thing, if you’re not in the know, its name could easily be mistaken for the model number of
a large kitchen appliance. Even if you are in the know, it’s difficult to get excited about what is “the second of five U.N. Intergovernmental Negotiating Committee for Plastics meetings” — even if this one did take place in Paris.
But what the INC-2 lacks in, shall we say, broad public interest appeal, it makes up for in importance, compelling characters, and drama. Yes, I said it: drama!
Here’s everything you need to know about this week’s INC-2 negotiations, which concluded on Friday and have the ultimate aim of creating a first-of-its-kind legally binding global plastics treaty.
This week, over 2,000 participants from 175 countries flocked to the UNESCO headquarters in Paris to debate, lobby, demonstrate, observe, sing, make art, and generally get very little sleep. For many attendees, it was a reunion of sorts: The first Intergovernmental Negotiating Committee meeting (INC-1) was held six months ago in Uruguay; the next, INC-3, will take place in Kenya in November.
Why such a frenetic, globe-trotting schedule? Because the delegates only have until the end of 2024 — technically, just 15 more total negotiating days — to hammer out the specifics of the first international plastic pollution treaty, as directed by the U.N. Environment Assembly last year. If they’re successful, the treaty will be the most important international environmental agreement since the Paris Climate Agreement was signed in 2015.
It’s a complicated subject. Campaigns against things like plastic straws and takeout bags have come to be seen by some U.S. activists as distractions, while others have defended plastics’ enormous lifesaving upsides and the fact that a like-for-like replacement of everyday plastics with paper bags could, counterintuitively, skyrocket global emissions (fun fact: the single-use plastic bag was invented as an environmentally friendly alternative to cutting down trees).
But the INC delegates aren’t trying to get rid of plastics altogether, just reduce their use. The U.N. cites data that shows over a third of all plastics are used for “gratuitous” purposes like packaging, including food and beverage containers, which overwhelmingly end up in landfills. Cutting down on wasteful packaging while promoting recyclable and reusable goods could slash 80% of plastic pollution by 2040.
Unfortunately, the world’s plastic problem is only getting worse. Emissions from the making of plastics alone are expected to outpace coal emissions within the decade. By 2040, U.N. projections show conventional plastics, which are made using newly extracted fossil fuels and thus a major part of oil companies’ plans for surviving the energy transition, taking up a whopping 19% of the global carbon budget. And by 2060, the 139 million metric tons of plastic we produce every year could triple unless the world makes changes.
Anti-plastic activists, scientists, and a 55-country bloc of negotiators led by Rwanda and Norway that calls itself the “High Ambition Coalition to End Plastic Pollution” are pushing for caps on plastic production. Their argument is that cutting off plastics at the source is the only way to turn off the proverbial “tap” of pollution created during the “full lifecycle” of a plastic item, from the extraction of oil to make it, the energy required to shape it, and its eventual disposal in a landfill or recycling plant. Others are pushing to regulate what chemicals can be used to make plastics. And though it seems far less realistically achievable, a ban on single-use plastics has also been floated, including by the 14-nation Pacific Small Island Developing States (PSIDS) group.
The plastic treaty negotiations are breaking into three distinct camps, which I’ll call the “One Big Pledge” group, the “Bespoke Pledges” group, and “Saudi Arabia,” because it’s just Saudi Arabia.
The One Big Pledge group — primarily made up of the members of the 55-country High Ambition Coalition to End Plastic Pollution — wants an international, legally binding treaty that will “end plastic pollution by 2040” — however that target may be ultimately defined — by capping new plastic production at a “sustainable level,” likely by targeting single-use plastics; limiting the chemicals that can be used in the creation of plastics in order to reduce health hazards and encourage recyclability; and establish provisions for plastics at the end of their life to maximize reuse rather than leakage into the environment.
In a bit of pre-meeting drama, Japan ditched America to join the High Ambition Coalition, leaving the U.S. as “the only major developed country” that isn’t part of the group. High Ambition Coalition members also include Canada, Australia, the United Kingdom, the European Union, and Mexico.
The “Bespoke Pledges” group wants to take what The Washington Post calls a “less stringent” approach by letting countries “come up with their own pledges” — kind of like a children’s arts-and-craft project fair where everyone gets to make their own popsicle stick man, except instead of a popsicle stick man it’s a commitment to ending pollution and there are no penalties if yours sucks.
Some Democrats and assorted celebrities have protested that this approach is kind of lame, but the Biden administration is nevertheless pitching it as being more like the Paris Climate Agreement (which, of course, was notorious among activists for this very aspect of its structure). The U.S. is also insisting that it is being “just as ambitious” as the High Ambition Coalition even as others have deemed its position rather “underwhelming.” Hey, at least the American Chemistry Council likes it?
Meanwhile, Saudi Arabia thinks the American plan of “come up with your own pledge and don’t worry about an enforcement mechanism” sounds basically great, but it could go for an even more hands-off treaty, too. Its proposal lists just two suggested “obligations” for signatories: “designing [plastics] for circularity” when possible and agreeing to share recycling tips with other countries.
For delegates, activists, and industry interests departing Paris this weekend, there was a distinct air of anxiety about how much work still lies ahead. Part of the issue was that negotiations in Paris got off to a slow — the rumor in the refillable water bottle fountain line is that it was an intentionally slow — start.
The biggest reason for the delay was an extended debate over the draft rules of procedure. First there was a kerfuffle about how voting blocs like the EU can cast votes on behalf of their member states. But that discussion gave some oil-producing countries like Brazil, Saudi Arabia, and Iran an opening to try to revise the rules in a much bigger way: requiring decisions to ultimately have a consensus rather than be put to a vote.
The distinction between “voting” and “consensus,” while procedurally in the weeds, is actually a significant one. As the rule is written now, if consensus is not achieved, decisions then go to a vote, which must pass with two-thirds support. Countries that supported the change included Brazil, China, Saudi Arabia, India, Iran, Russia, and Venezuela; countries that backed voting as a final option included the U.S., EU, U.K., Canada, Norway, and Senegal, whose delegate explained the issue succinctly and to applause: “Consensus is what kills democracy,” he was reported as saying. “If one or two countries don’t agree, we’re stuck.” Without the option to vote, it’s likely any meaningful plastics treaty will be DOA.
Meanwhile, Mexico’s delegate, Camila Zepeda, was losing her patience at this point: “It’s a waste of time and energy ... We’ve heard arguments at length [that] don’t focus on the essential issue, plastic pollution,” she reportedly said. “Everyone, turn off your microphones, stop your speeches.”
But if it was the intent of major oil-producing states to delay negotiations, it worked. After agreeing to disagree about the rule on Wednesday — essentially kicking the can down the road to INC-3 — states like Saudi Arabia, Russia, and Iran continued to raise questions that seemed designed to run out the clock (the Iranian delegate’s concern about observing a reasonable bedtime, at least, was relatable). Mexico’s delegate finally snapped, waving her name placard above her head, scolding her colleagues that it was time to “roll up your sleeves and get to work,” and then grabbed her backpack and walked out of the room:
Attention then turned to what will likely be a crux of negotiations: the role of recycling and “circularity” in the eventual treaty. Anti-plastic activists are gunning hard for the first of the three classic R’s: to reduce the amount of plastic that gets made, period. Oil and chemical interests, though, wanted to focus on the third R: recycling.
There’s a reason even countries like Saudi Arabia (and the U.S.) are writing “circularity” into their obligations: proposals that push advanced plastic recycling, with the intent of extending the lifespan of plastics, will allow fossil fuel companies and states to keep extracting oil to make new plastics by taking the attention off the plastic caps being mulled by the High Ambition nations. There also isn’t an agreed-upon meaning of the term “circularity,” Inside Climate News points out, meaning countries and companies can use the eco-friendly buzzword without being nailed to a commitment they don’t intend to keep.
Additionally, there are lots of valid concerns about advanced recycling, from the heavy energy and emissions output required to extend the lifespan of plastics to the current technological inability to minimize the dangers of toxic chemicals produced in the process.
Some players have also have stressed that all the attention on recycling alone is too limited. “To focus on plastic waste in this treaty would be a failure because you have to look at plastic production to solve the crisis — including the extraction of fossil fuels and the toxic chemical additives,” Dr. Tadesse Amera, the co-chair of the International Pollutants Elimination Network, told Spain’s El País.
A global agreement on how to handle plastic pollution was still clearly a ways off on Friday as the conference wound down. But by the end of the week, the delegates could celebrate genuine progress toward formulating objectives, obligations, and implementation tactics, and had additionally mandated a zero draft text of the treaty be written by the chair, which will be considered at INC-3. Activists applauded the step, which due to the delays, had not been a given.
There remain major hurdles to clear, however. If there is a single major takeaway from INC-2, it’s that oil-producing countries are becoming worried enough about the treaty’s direction that they’re beginning to drop the cooperative veneer and drag their heels. Even a relatively “underwhelming” plan like United States’ voluntary pledge proposal could potentially be at risk of failing if the consensus group ultimately wins out. “We may have to conjure up some additional days to finalize these talks,” one participant told the Earth Negotiations Bulletin on Wednesday. A hypothetical “INC-6” entered the vocabulary.
In the meantime, the delegates, lobbyists, activists, and observers are on their way back to their respective countries to catch up on sleep, detox from all the chocolate that was consumed, and prepare for INC-3 in Nairobi in November. The clock is ticking but if there is a glimmer of hope for the anti-plastics team, it’s that the oil interests are outnumbered. As Yvette Arellano — the founder and executive director of the Houston-based environmental justice group Fenceline Watch — told me by email from the ground in Paris, “They know once this starts going, it’s only gonna catch more public interest and global momentum.”
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On nuclear tax credits, BLM controversy, and a fusion maverick’s fundraise
Current conditions: A third storm could dust New York City and the surrounding area with more snow • Floods and landslides have killed at least 25 people in Brazil’s southeastern state of Minas Gerais • A heat dome in Western Europe is pushing up temperatures in parts of Portugal, Spain, and France as high as 15 degrees Celsius above average.

The Department of Energy’s in-house lender, the Loan Programs Office — dubbed the Office of Energy Dominance Financing by the Trump administration — just gave out the largest loan in its history to Southern Company. The nearly $27 billion loan will “build or upgrade over 16 gigawatts of firm reliable power,” including 5 gigawatts of new gas generation, 6 gigawatts of uprates and license renewals for six different reactors, and more than 1,300 miles of transmission and grid enhancement projects. In total, the package will “deliver $7 billion in electricity cost savings” to millions of ratepayers in Georgia and Alabama by reducing the utility giant’s interest expenses by over $300 million per year. “These loans will not only lower energy costs but also create thousands of jobs and increase grid reliability for the people of Georgia and Alabama,” Secretary of Energy Chris Wright said in a statement.
Over in Utah, meanwhile, the state government is seeking the authority to speed up its own deployment of nuclear reactors as electricity demand surges in the desert state. In a letter to the Nuclear Regulatory Commission dated November 10 — but which E&E News published this week — Tim Davis, the executive director of Utah’s Department of Environmental Quality, requested that the federal agency consider granting the state the power to oversee uranium enrichment, microreactor licensing, fuel storage, and reprocessing on its own. All of those sectors fall under the NRC’s exclusive purview. At least one program at the NRC grants states limited regulatory primacy for some low-level radiological material. While there’s no precedent for a transfer of power as significant as what Utah is requesting, the current administration is upending norms at the NRC more than any other government since the agency’s founding in 1975.
Building a new nuclear plant on a previously undeveloped site is already a steep challenge in electricity markets such as New York, California, or the Midwest, which broke up monopoly utilities in the 1990s and created competitive auctions that make decade-long, multibillion-dollar reactors all but impossible to finance. A growing chorus argues, as Heatmap’s Matthew Zeitlin wrote, that these markets “are no longer working.” Even in markets with vertically-integrated power companies, the federal tax credits meant to spur construction of new reactors would make financing a greenfield plant is just as impossible, despite federal tax credits meant to spur construction of new reactors. That’s the conclusion of a new analysis by a trio of government finance researchers at the Center for Public Enterprise. The investment tax credit, “large as it is, cannot easily provide them with upfront construction-period support,” the report found. “The ITC is essential to nuclear project economics, but monetizing it during construction poses distinct challenges for nuclear developers that do not arise for renewable energy projects. Absent a public agency’s ability to leverage access to the elective payment of tax credits, it is challenging to see a path forward for attracting sufficient risk capital for a new nuclear project under the current circumstances.”
Steve Pearce, Trump’s pick to lead the Department of the Interior’s Bureau of Land Management, wavered when asked about his record of pushing to sell off federal lands during his nomination hearing Wednesday. A former Republican lawmaker from New Mexico, Pearce has faced what the public lands news site Public Domain called “broad backlash from environmental, conservation, and hunting groups for his record of working to undermine public land protections and push land sales as a way to reduce the federal deficit.” Faced with questions from Democratic senators, Pearce said, “I’m not so sure that I’ve changed,” but insisted he didn’t “believe that we’re going to go out and wholesale land from the federal government.” That has, however, been the plan since the start of the administration. As Heatmap’s Jeva Lange wrote last year, Republicans looked poised to use their trifecta to sell off some of the approximately 640 million acres of land the federal government owns.
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At Tuesday’s State of the Union address, as I told you yesterday, Trump vowed to force major data center companies to build, bring, or buy their own power plants to keep the artificial intelligence boom from driving up electricity prices. On Wednesday, Fox News reported that Amazon, Google, Meta, Microsoft, xAI, Oracle, and OpenAI planned to come to the White House to sign onto the deal. The meeting is set to take place sometime next month. Data centers are facing mounting backlash. Developers abandoned at least 25 data centers last year amid mounting pushback from local opponents, Heatmap's Robinson Meyer recently reported.
Shine Technologies is a rare fusion company that’s actually making money today. That’s because the Wisconsin-based firm uses its plasma beam fusion technology to produce isotopes for testing and medical therapies. Next, the company plans to start recycling nuclear waste for fresh reactor fuel. To get there, Shine Technologies has raised $240 million to fund its efforts for the next few years, as I reported this morning in an exclusive for Heatmap. Nearly 63% of the funding came from biotech billionaire Patrick Soon-Shiong, who will join the board. The capital will carry the company through the launch of the world’s largest medical isotope producer and lay the foundations of a new business recycling nuclear waste in the early 2030s that essentially just reorders its existing assembly line.
Vineyard Wind is nearly complete. As of Wednesday, 60 of the project’s 62 turbines have been installed off the coast of Massachusetts. Of those, E&E News reported, 52 have been cleared to start producing power. The developer Iberdrola said the final two turbines may be installed in the next few days. “For me, as an engineer, the farm is already completed,” Iberdrola’s executive chair, Ignacio Sánchez Galán, told analysts on an earnings call. “I think these numbers mean the level of availability is similar for other offshore wind farms we have in operation. So for me, that is completed.”
That doesn’t mean it plans to produce electricity anytime soon.
Greg Piefer thinks nearly all his rivals in the race to commercialize fusion are doing it backward.
Of the 59 companies tracked in the Fusion Industry Association’s latest annual survey, 48 are primarily focused on generating electricity, off-grid energy, or industrial heat by harnessing the power produced when two atoms fuse together in the same type of reaction that fuels the sun. Just four are following the path of Shine Technologies and using plasma beam energy to manufacture rare and extremely valuable radioisotopes for breakthrough cancer treatments — 10 if you count the startups with a secondary medical business.
“We’re a bit different from fusion companies trying to sell the single product of electricity,” Piefer, the chief executive of Wisconsin-based Shine Technologies, told me. “The basic premise of our business is fusion is expensive today, so we’re starting by selling it to the highest-paying customers first.”
Shine Technologies’ contrarian strategy is winning over investors. On Thursday, the company plans to announce a $240 million Series E round, Heatmap can report exclusively. The funding, nearly 63% of which came from biotech billionaire Patrick Soon-Shiong, will provide enough capital to carry the company to the launch of the world’s largest medical isotope producer and lay the foundations of a new business recycling nuclear waste.
For now, Piefer said, Shine’s business is blasting uranium with enough extremely hot plasma beam energy to generate medical isotopes such as molybdenum-99 for diagnostic imaging or lutetium-177 for targeted cancer therapies. In the next few years, however, Shine Technologies is looking to apply its methods to recycling and reducing radioactive waste from commercial fission reactors’ spent fuel. Only then, sometime a decade from now, will the company start working on power plants.
“I would essentially define electricity as the lowest-paying customer of significance for fusion today,” Piefer said.
Soon-Shiong contributed $150 million to the funding pool via NantWorks, the biotech company he founded. Other investors include the financial services giant Fidelity Investments, the American division of the Japanese industrial conglomerate Sumitomo Corporation, the Texas investment bank Pelican Energy Partners, the healthcare-focused investor Deerfield Management, and the global asset manager Oaktree Capital. As part of the deal, Soon-Shiong — known outside the medical industry as the owner of the Los Angeles Times — will join Shine Technologies’ board of directors.
Since its founding in 2005, Shine has brought down the cost per fusion reaction by a thousandsfold. Over a Zoom call, Piefer pointed out the window behind him in his office in Janesville, Wisconsin, nearly two hours southwest of Milwaukee. In the afternoon sun was a gray, nondescript-looking warehouse. Inside, construction was underway on the world’s largest facility for producing medical isotopes. Dubbed Chrysalis, the flagship plant is set to come online in 2028.
“We’ll make 20 million doses of medicine per year with it,” he said. “It’ll be the biggest beneficial use of fusion for humans ever, and we expect it to be the dominant technology for decades. This will be the way the United States produces neutron-based radioisotopes probably for the next 50 years.”
To make medicine, the company follows four steps. First, it dissolves uranium. Next, it irradiates the material with the plasma beam. Then comes the separation process to remove valuable isotopes from the other radioactive material. Finally leftover uranium gets recycled back into the process. Rinse and repeat.
“It’s the first closed loop ever used for producing medicine this way,” Piefer said.
To recycle spent nuclear fuel, the company just remixes those steps, he said.
“You dissolve uranium from the nuclear waste. You separate out valuable materials. You recycle the uranium and plutonium in a reactor,” Piefer said. Then fusion comes in with the plasma beam technology to transform highly radioactive material that stays dangerous for longer than Homo sapiens is known to have existed into something that decays in half-lives that take years, decades, or centuries rather than millennia, decamillennia, and centimillennia.
“There’s about half a percent of long-lived nuclear waste from fission that we don’t know what to do with. It lives basically forever. We don’t have a use for it. But if you hit it with fusion neutrons, it becomes short-lived,” Piefer said. “So it’s the same four steps. For medicine, it goes one, two, three, four. For recycling it goes one, three, four, two.”
Not only is the market for testing and medical isotopes already worth billions of dollars, it’s on track to more than double in the next decade. Currently, it’s largely served by what Piefer called “60-year-old fission reactors.”
“These are specialized research reactors that are very cold and very constrained from a capacity standpoint,” he said. “You can buy new ones, but it takes billions of dollars and probably two decades to bring a new reactor online.”
By contrast, Shine Technologies broke ground on Chrysalis in 2019, and is set to complete the project at what Piefer said would be an eighth the cost of building a new research reactor.
The U.S. government, meanwhile, is helping to fund the next phase of Shine Technologies’ business. Just a few weeks ago, the Department of Energy gave the company a share of $19 million split between five companies looking to commercialize reprocessing technology. Last year, the company inked a deal with the reactor fuel startup Standard Nuclear to sell the fuel-grade material it recovers from recycling.
In both the fusion and next-generation fission industries, companies often lure investors by promising to pull off several very challenging things at once, said Chris Gadomski, the lead nuclear analyst at the consultancy BloombergNEF.
Oklo, a stock market darling for its planned microreactor and power plant business, was also among the recipients of the federal funding for waste reprocessing. Amazon-backed microreactor developer X-energy just won approval to start manufacturing the rare and expensive form of reactor fuel known as TRISO. TAE Technologies, the fusion startup that merged in December with the parent company of President Donald Trump’s social media network TruthSocial in a bid to build the world’s first fusion power plant, also has a subsidiary producing medical isotopes.
“I usually look at it as a distressing sign when you have an energy company tackling four or five different things,” Gadomski said. “But Shine is really a medical device company that is focused on isotopes but whose technology can also reprocess spent fuel — and, by the way, it can be applied down the road to energy.”
So far, Shine’s technology has followed a similar Moore’s Law trajectory to semiconductors.
From roughly 1990 to 2000, microchips used in workstations increased their computation rate per dollar. Then came the gaming era from 2000 to 2015, when videogames drove demand for more and more efficient semiconductors, with upgrades on average every other year. From 2015 until roughly the debut of ChatGPT in 2022, the high-speed computing applications spurred on chip upgrades at a similar rate. Now the artificial intelligence era is upon us, transforming chipmakers such as Nvidia into goliaths seemingly overnight.
Piefer sees Shine Technologies on its own 35-year timeline. From 2010 to roughly 2023, testing dominated the business. From then until about 2028, medical isotopes are the new play. The recycling pilot plant set to come online after 2030 will kick off the reprocessing period. And finally, sometime in the 2040s, Piefer wants to get into energy production.
“It’s a different approach than most,” he said.
“Don’t get me wrong, moonshots have their place, too,” he added. “But I feel very confident in this path.”
After a disappointing referendum in Maine, campaigners in New York are taking their arguments straight to lawmakers.
As electricity affordability has become the issue on every politician’s lips, a coalition of New York state lawmakers and organizations in the Hudson Valley have proposed a solution: Buy the utility and operate it publicly.
Assemblymember Sarahana Shrestha, whose district covers the mid-Hudson Valley, introduced a bill early last year to buy out the Hudson Valley’s investor-owned utility, Central Hudson Gas and Electric, and run it as a state entity. That bill hung around for a while before Shrestha reintroduced it to committee in January. It now has more than a dozen co-sponsors, a sign that the idea is gaining traction in Albany.
With politicians across the country in a frenzy to quell voters’ growing anxieties over their power bills, public power advocates are seizing the moment to make a renewed case that investor-owned utilities are to blame for rising prices. A victory for public power in the Hudson Valley would be the movement’s biggest win in decades — and could serve as a blueprint for other locales.
Shrestha’s proposal, while ambitious, draws on a long history of public power campaigns in the United States, stretching from the late 1800s to the New Deal 1930s to the present. Most recently, a 2023 referendum in Maine would have seen the state take over its two largest utilities; organizers argued the move would improve service and lower rates. But as Emily Pontecorvo covered for Heatmap, Maine voters rejected the referendum by a nearly 40-point margin. Public power advocates chalked up the loss to Maine’s investor-owned utilities outspending the proposition’s supporters by more than 30 to 1.
The current Hudson Valley campaign has a lot in common with Maine’s. In both, utilities rolled out faulty billing systems that overcharged customers, fueling resentment. Both targeted utilities owned by foreign corporations (Central Hudson is owned by Fortis, a Canadian company; Central Maine Power is owned by a subsidiary of Iberdrola, a Spanish company, while Versant, another utility in the state, is a subsidiary of Enmax, a Canadian corporation). And both took place amid rate hikes.
Shrestha has spent the past year working her district, holding town halls to sell the bill to her constituents. At each one she presents the same schpiel: “I gave people a little brief story of each of the different notable fights, from Long Island Power Authority to Massena to Maine to Rochester,” she told me, “because I also want people to understand that our fight is not happening in isolation.”
Public power advocates in the Hudson Valley are certainly applying lessons from the Maine defeat to their own campaign. For one, the venue is paramount. This time, public power campaigners are gearing up for a fight in the statehouse rather than the ballot box.
Unlike a ballot proposition, state legislation typically doesn’t attract millions of dollars in television and radio advertising from deep-pocketed utilities. Sandeep Vaheesan, a legal scholar and public power expert, told me that passing a law may be a more feasible route to victory for public power.
“Legislative fights are more winnable because referenda end up being messaging wars,” Vaheesan told Heatmap. “And more often than not, the side that has money can win that war.”
The message itself is also key. One lesson Maine organizers walked away with is that affordability is a winning strategy — an insight that has only gotten more robust over the past several months.
The Climate & Community Institute, a progressive climate think tank, released a report in November reflecting on the Maine referendum that put numbers to the campaigners’ intuition. “While climate change was an issue for many in our polling,” the report states, “it often took a backseat to problems Mainers continue to experience, like rising costs and power shutoff risks.” The group also pointed me to a survey it did in the fall of 2023 — years before data centers and energy demand became top-tier political issues — in which 69% of voters said they were worried about climate change, but 85% said they were worried about energy costs.
So how could public power lower costs for ratepayers?
“If you take shareholders out of the picture — if you replace private debt with cheaper public debt — you can lower rates pretty quickly and bring energy bills down,” Vaheesan argued.
The proposed Hudson Valley Power Authority wouldn’t have a profit motive; its return on equity, currently 9.5% for Central Hudson, would be reduced to zero. As a public entity, HVPA could also access capital at much lower interest rates than a private company and would be exempt from state and federal taxes.
Investor-owned utilities also inflate customers’ bills with unnecessary capital spending, Shrestha told me.
“The only way they can drive up their profits is by expanding their capital infrastructure, which is a very rare and unique characteristic of this industry,” she said, noting that a company like Walmart can’t make a profit by overspending. “So we’re stuck with a grid that is unnecessarily bloated and cumbersome and not at all efficient.”
A feasibility report commissioned by HVPA supporters and released in December estimates that ratepayers would see their bills go down by 2% in the first year after the public takeover — and result in 14% lower bills by 2055. A competing report, issued by opponents of the legislation, claimed the delivery portion of charges could increase by 36% under HVPA due to the cost of buying out Central Hudson, though advocates criticized the report for failing to publish any data.
Hudson Valley public power supporters can take another lesson from Maine to counter a combative utility. The two Maine utilities estimated the cost for the state to acquire them would be billions of dollars more than what public power advocates estimated — though in a televised debate, an anti-referendum representative refused to defend the stated numbers until the moderator instructed her to do so.
Lucy Hochschartner, the deputy campaign manager for Pine Tree Power (Maine’s proposed state-run utility), said she often assuaged voters’ concerns over the acquisition price by comparing it to buying a house.
“Right now we pay a really high rent to [Central Maine Power],” Hochschartner told us. “We pay them more than a billion dollars in revenue a year through our electric grid. And instead we could have moved to a low-cost mortgage.”
With a public acquisition, the cost of buying the electrical and gas systems would be funded through revenue bonds, paid off through customers’ bills over time. However a spokesperson for Central Hudson, Joe Jenkins, said the company would launch a legal battle rather than agree to sell its assets to New York State.
“Fortis has made no inclination that the company is for sale,” Jenkins told me. “So to take over a company by means of eminent domain, I believe that our parents would want to see this through a court.”
While a legal battle could be costly, public power advocates say the cost of inaction is also high. Winston Yau, an energy and industrial policy manager at the Climate & Community Institute, told me that publicly run utilities are better equipped to lead the transition to carbon-free power and adapt to a warming and more turbulent climate.
“Climate disasters and extreme weather events and heat waves are a major and increasing cause of rising utility bills,” Yau said. “In the coming decades, a significant amount of new investment will be needed.”