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How 2023 marked a renewed push for public power.

Voters in Maine were confronted with an unusual decision when they went to the polls this November. Question three on the ballot asked Mainers if they wanted to eliminate the two private utilities that delivered electricity to 97% of the state. A new, nonprofit utility called Pine Tree Power would take over the service, and it would be overseen by a publicly-elected board.
Though the proposal may sound radical, it’s not unheard of. Since the dawn of the electric grid, communities have periodically decided to municipalize their utilities. The city of Sacramento, California, took over PG&E’s local electric distribution franchise in 1946. Winter Park, Florida, took over electric service from a company called Progress Energy in 2005. But a takeover at the state level has only been attempted by Nebraska, where the entire state’s electric service went public in the 1940s and has remained that way ever since.
Unlike in Nebraska, the campaign in Maine failed. Seventy percent of voters said “no” to question three. But the ballot measure wasn’t a one-off. This year marked a renewed push for public power that’s growing around the country in light of the challenges of tackling climate change.
Investor-owned utilities have used their vast financial resources and political influence to delay and block the transition off of fossil fuels, in ways large and small, for decades. Activists, tired of trying to work within that system, are turning their attention to what they see as the more systemic root cause — the perverse incentives created by having utilities that need to turn a profit.
Americans often refer to their electricity or gas providers as “public utilities.” But only about 15% of the population is served by a government-owned, customer-owned, or member-owned electric utility. The other 85% are beholden to private companies that were granted monopolies to sell electricity decades ago.
What started as a smattering of independent campaigns to change that ratio started to coalesce into a nationally coordinated movement this year. A few weeks before the vote on the ballot measure, some 70 delegates from about 40 grassroots climate groups from around the country convened for a workshop at the Press Hotel in Portland, Maine. For three days, they exchanged notes and strategies for how to get public power on the agenda in their own cities and states, and reform public utilities in places that already had them. By the end, they had cemented a more energized, organized coalition.
The guiding theory behind the push for public power is that public utilities don’t need to generate returns for shareholders, theoretically enabling them to make investments guided by other priorities, like reducing emissions — and charge customers less in the process.
“We’ve seen time and time again that the market is not going to correct this,” Greg Woodring, a workshop participant from Ann Arbor, Michigan, told me. “Public power gives us the ability to choose where our energy is coming from, the ability to directly make that change without having to ask or plead or beg or incentivize a corporate entity that, at the end of the day, is only making a decision based on what’s going to make the most profit possible.”
But public power is divisive in the larger climate movement. While not necessarily ideologically opposed, critics are concerned about wasting time and money. Private utilities don’t go without a fight, and communities can get bogged down in legal battles for years. The city of Boulder, Colorado, famously tried to wrest control over its electric service from the utility Xcel for a decade, and gave up.
In Maine, the Conservation Law Foundation, a prominent environmental group, warned that the cost of a transition to public power was too uncertain, that it could mire the state in litigation, and that having a publicly-elected board could subject critical energy decisions to “partisan political maneuvering.” Instead, the group made a case for strengthening laws and regulations. However, it also conceded that if the utilities don’t meet metrics of affordability and sustainability they should face stiffer fines, or even lose their ability to operate in the state.
Defenders of investor-owned utilities argue that they have advantages over nonprofits when it comes to building the clean grid of the future. “The investor-owned business model enables companies to raise and deploy massive amounts of capital in an efficient and cost-effective manner, and their purchasing power helps to minimize costs to customers,” said Sarah Durdaller, a spokesperson for the Edison Electric Institute, a trade group for private electric utilities. She told me that the organization’s members’ “commitment to delivering resilient clean energy to our customers has never been stronger, and our focus on affordability has never been more important.”
The Maine campaign was not the first time a shift to publicly-owned utilities has been pitched as a climate strategy. One of the main motivations for Boulder’s effort, which started in 2010, was Xcel’s unwillingness to help the city meet its climate goals. But the increased momentum behind public power in 2023 signaled a new direction for climate activism more broadly, which had seemed to stagnate after the rise and fall of the youth-led Sunrise Movement and the election of Joe Biden.
“This is a site where we can practice democracy,” Isaac Sevier, one of the workshop organizers, told me. “I think that’s something that energizes people, it gives them more hope, it gives them something to be a part of and fight for and struggle for in a time when so many people are turning away.”
The workshop in Maine was convened by a handful of national organizations, including the Climate and Community Project, a progressive think tank, Lead Locally, a group that works to elect progressive candidates, and the Democratic Socialists of America’s Green New Deal Campaign Commission.
The DSA has been a major force behind the recent surge in interest in public power. At the start of this year, it kicked off a new campaign called “Building for Power” focused on trying to strengthen public institutions at the local level. In addition to public power, DSA is advocating for green public housing and transit, and improved public spaces.
“We want to rebuild, and in some cases, build anew, public sector capacity,” Matt Haugen, one of the organizers of the workshop, told me. “Through decades of neoliberalism, the public sector has been hollowed out in the U.S., and we’re seeing in all these areas that it’s clear the private sector just cannot meet these human needs.”
Many of the participants at the workshop were DSA members, but there were also local organizers affiliated with national environmental organizations, like 350 and the Sierra Club, and others from smaller, grassroots groups. There was a freshman in college, a seasoned activist in his 80s, and many ages represented in between. While almost everyone there was from a left-leaning city, they hailed from every corner of the country, including California, Montana, Michigan, Tennessee, Puerto Rico, and Washington, D.C.
Some, like Woodring of Ann Arbor, were from cities that were already in the early stages of considering a public power takeover. His group had convinced the city council to complete a feasibility study on municipalization. Others, like Marta Meengs, from Missoula, Montana, were trying to figure out how to win smaller battles, like the right to have community-owned solar farms. Others wanted to reform existing public power agencies, like Amy Kelly from Tennessee, where the federally-owned Tennessee Valley Authority runs the grid — but is investing heavily in natural gas, and offers few avenues for civic engagement.
One such group had already seen some success. The New York chapter of the DSA passed the Build Public Renewables Act earlier this year after four years of campaigning. The law directs the New York Power Authority, an existing state-owned power provider, to shut down all of its fossil fuel plants by the end of 2031, and expands its mandate to include building renewable energy projects. Most residential customers in New York are actually served by private utilities, but proponents saw the law as a way to get more clean energy built, faster, and with high labor and equity standards.
The Inflation Reduction Act, the climate law signed by President Biden last year, is one reason the tides turned for the New York campaign. It enabled government agencies and nonprofits to take advantage of tax credits for renewable energy projects for the first time, improving the economics of public power.
“It really opens up a huge amount of additional space for public power to be a part of the answer,” Johanna Bozuwa, executive director of the Climate and Community Project, told me.
Though few of the participants had ever met or even heard of each others’ campaigns, the stories that led them to advocate for public power shared a number of common themes: Worsening power outages due to extreme weather. Alarm over the insufficient pace of emission reductions. Outrageously high bills. But perhaps most of all, frustration with constantly coming up against utilities wielding money and influence to fight clean energy.
Woodring, of Ann Arbor, cited a 2022 analysis that found that more than 90% of sitting legislators in Michigan at the time took money from groups and individuals affiliated with DTE, the biggest utility in the state. The company was also tied to more than $200,000 in donations to Governor Gretchen Whitmer, who’s responsible for appointing the state’s utility regulators. As a result, according to the workshop participants from Michigan, the company has been able to restrict the growth of residential solar, which would eat into its profits.
Mikal Goodman, a 23-year-old city councilmember from Pontiac, Michigan, told me his interest in public power stemmed from DTE’s high rates and failure to invest in modernizing its transmission system. Some of its poles and wires dated back to before World War II, he said. Last winter, storms knocked out power to hundreds of thousands of households in southeast Michigan, leaving some families in the dark for over a week. But the day after one especially bad storm in February that left 450,000 people without power, DTE’s CEO Gerardo Norcia bragged to Wall Street analysts about the company’s “strong financial results” due to budget cuts and delayed maintenance.
In Pontiac, Goodman said, outages are life-threatening. He described the city as a donut hole — a poor, majority minority community surrounded by much wealthier, whiter towns. Most Pontiac residents don’t have the resources to run backup generators, replace rotting food, or flee to hotels if they need to, like many of their well-off neighbors, he said.
The idea that energy is a human right, and should not be treated as a commodity, came up repeatedly at the workshop. Many of the participants were drawn to public power by the desire to see an energy transition that benefits everyone, not just those who can afford clean energy.
Sevier, who has done a lot of work related to decarbonizing buildings, was frustrated that other advocates in the field were ignoring the growing energy affordability crisis. One in six households are behind on their utility bills, according to the National Energy Assistance Directors Association, and gas and electric utilities are increasingly disconnecting customers that are in arrears. A January report from Bailout Watch, a nonprofit watchdog of fossil fuel companies, estimated that the 12 utilities that perpetrated the vast majority of shutoffs between 2020 and the fall of 2022 could have forgiven the debt with just 1% of their spending on shareholder dividends.
“If we require that everything in your life become electric, but at the same time, we don’t transform a system that guarantees that everyone actually can have electricity,” Sevier told me, “then I ask, who are we building this ‘electrify everything’ system for?”
Other advocates questioned a system where the public is often forced to pay for a company’s mistakes, but which the public has no say over. Travis Gibrael, an organizer with a group called Reclaim Our Power in northern California, which is working on a public takeover of PG&E, described the hypocrisy of the state’s relationship with the company. Governor Gavin Newsom’s administration helped the company emerge from bankruptcy after it was found responsible for wildfires that destroyed whole towns and killed more than 100 people. Now the company is raising rates by 13% to pay for wildfire prevention measures like burying power lines.
“They burn down the state, they kill a bunch of people. And yet all of those liabilities are just put on us, including the people who lost family members,” Gibrael told me. “It’s like, we’re already paying for the cost of the system and all the crises that are coming from it. So for us to just own it, because we’re already paying for it, makes sense.”
Reclaim Our Power has allies in the city government of San Francisco, which is in the early stages of trying to purchase the local electric grid from PG&E.
In some ways, Maine seemed to be an ideal testing ground for such sweeping reforms. Central Maine Power and Versant, the two private electric companies in Maine that would have been ousted, are consistently rated the worst for customer satisfaction in the Northeast. CMP has faced multiple investigations and fines over its billing system, customer service, and delays connecting new solar projects to the grid. Mainers additionally hate the company due to a controversial power line it is building to deliver hydropower from Canada into the U.S.
Advocates also appealed to nationalist views by highlighting the fact that both companies have “foreign owners,” and that they are funneling ratepayer dollars out of the country rather than back into Maine’s communities. (CMP is owned by Iberdrola, a Spanish company. Versant is owned by Enmax, a Canadian company owned by the city of Calgary.)
Public power advocates attributed their loss largely to the nearly $40 million the incumbent utilities spent fighting the campaign. “They outspent us 37 to one,” Lucy Hochschartner, the deputy campaign manager for Pine Tree Power, told me. “We were persuading people one by one, as they were getting absolutely inundated by messaging on the television, in their mailbox, on the radio, over digital.”
But she also said the campaign was successful in that it got a lot more people talking about the issue — it made national headlines for weeks — which could make it easier for future campaigns.
Reflecting on the loss, John Qua, a campaign manager at Lead Locally, told me it showed that running a ballot initiative is probably one of the most difficult ways to win public power. Another path is to try and win an electoral majority to enact legislation. “While it takes longer, you can cement a stronger, usually progressive majority in support,” he said.
Workshop attendees were clear-eyed about the fact that public ownership would not, in itself, be a silver bullet. They were quick to acknowledge the shortcomings of many existing public institutions, and that a publicly-owned utility will only be as strong as public participation in elections and decision making — a tall order when so few people today even understand the basics about where their energy comes from. Grace Brown, a researcher at the University of Glasgow in Scotland who studies public power movements, said it’s a much harder proposition in the U.S. than in Europe, where people are used to relying on the government for services, and socialism isn’t such a dirty word.
“That’s not just about winning votes, it’s about changing the mindset of this whole country,” she told me. “It’s trying to change these huge ideological ideas of how this country understands what the state should be and what the government should do.”
Public power isn’t the only idea out there for breaking the inertia and corporate capture of the energy system. This year, Colorado, Connecticut, and Maine passed laws that will prevent utilities from charging ratepayers for their lobbying efforts. Several states are experimenting with new, performance-based regulations, whereby utilities’ compensation is tied to specific goals, including emission reductions.
There’s also evidence that the existing channels for democratic engagement with the energy system aren’t totally broken. California and Michigan both recently made big strides on the climate and equity issues that public power advocates care about. This summer, the Golden State passed a law requiring utilities to design progressive rates tied to customers’ incomes. Michigan passed a law requiring utilities to use 100% clean energy by 2040.
The revitalized push for public power is about more than clean energy. To proponents, it’s about shaping this new, green energy system in a way that benefits a wider public. Whether or not they see more victories, the questions they are raising about who decides when and how we transition to this hypothetical clean energy future are already infiltrating the wider climate discussion. And as past public power movements, like the one in Boulder, have shown, even when the campaigns fail, the threat they pose to utilities is usually enough to get the companies to change their approach.
If there’s one thing I took away from the workshop, it’s that the movement is just getting started. Expect to see more high-profile campaigns — perhaps in San Francisco or Ann Arbor — in the coming years.
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On Tesla’s solar factory, Bolivia’s protests, and China’s hydrogen motorcycle
Current conditions: The East Coast heat wave is exposing more than 80 million Americans to temperatures near or above 90 degrees Fahrenheit through at least the end of today, putting grid operators who run PJM Interconnection and the New York electrical systems on high alert • Thunderstorms are drenching the United States’ southernmost capital city, Pago Pago, American Samoa, and driving temperatures up near 90 degrees • Some 3,600 miles north in the Pacific, Guam’s capital city of Hagåtña is in the midst of a week of even worse lightning storms.
American investment in low-carbon energy and transportation has fallen for a second consecutive quarter, ending an unbroken growth trend stretching back to 2019. In the first three months of 2026, total investment in those green sectors reached $61 billion, according to a Rhodium Group analysis published this morning. That’s a 3% drop from the previous quarter — and a 9% decline from the first three months of 2025. Contrary to the Trump administration’s claims to be overseeing a resounding revival of U.S. manufacturing, investments in clean technologies fell for a sixth consecutive quarter to $8 billion, down a whopping 34% from the first quarter of 2025. With federal tax credits for electric vehicles eliminated, investments into battery manufacturing plunged 47% year over year. At the state level, there’s been some progress. Virginia, Colorado, New Mexico, Oklahoma, Michigan, and New York all recorded their largest year-over-year increases over the past four quarters as clean electricity investments at least doubled in each state. “Wind was the primary driver in Virginia, New Mexico, New York, and Colorado; and solar in Michigan and Oklahoma,” the report noted. Sales of electric vehicles, at least on a worldwide level, are also gaining momentum: the International Energy Agency released a report this morning that forecast 30% of global new car sales will be battery electric this year.
The Tuesday night primary elections in six U.S. states, meanwhile, offered mixed results for clean energy supporters. Representative Thomas Massie, the dissident Republican from northern Kentucky who repeatedly broke with his party to criticize President Donald Trump and boasted of his off-grid home’s solar and battery system, lost by double digits to his White House-backed rival. Pennsylvania’s state Representative Chris Rabb, a progressive would-be “Squad” member whose platform mirrors the Green New Deal movement’s key policy demands, won the Democratic primary for the 3rd Congressional District spanning parts of Philadelphia.

During an appearance on Fox News last week, investor and “Shark Tank” star Kevin O’Leary vowed to release documents showing that opponents of the data center complex he proposed building in the Utah desert received funding from China, suggesting the protesters seeking to thwart his $100 billion megaproject were useful idiots in Beijing’s bid to hamper America’s technological progress. Now Secretary of the Interior Doug Burgum is echoing those claims. “It’s not organic and local,” he said Thursday on stage at the Alaska Sustainable Energy Conference in Anchorage, where he was the keynote speaker. “Some of this is foreign-sourced dark money coming in.” The link between rising electricity prices and data centers, he said, was “specious.” He went on to cite a specific example of a small town in North Dakota, from when he served as the state’s governor, where a billion-dollar data center project ended up reducing costs for ratepayers by paying a premium to “buy down” the price households paid. It wasn’t immediately obvious which project he was referring to. But my best guess from some cursory research is that he may have meant the Applied Digital data center in Ellendale, along the southeastern border with South Dakota. In 2023, Prairie Public reported that the facility helped bring down transmission costs, reducing ratepayers’ bills by as much as $61 per year.
Burgum also suggested that Democrats were inflaming the data center issue for political gain. But opposition spans the political spectrum. Tom Steyer, the billionaire progressive running for governor of California, on Monday walked back a response to a candidate questionnaire published by Greenpeace, in which he said he supported a pause on data center development. In a statement to Politico, campaign spokesperson Kevin Liao said that while Steyer wants to ensure protections for electricity prices and water resources, he does not support a temporary ban.
It appears Elon Musk is more likely to follow through on his promise to build enough manufacturing capacity to churn out 100 gigawatts of solar panels in the U.S. than to sell 500,000 Cybertrucks a year. Tesla has selected a site just outside Houston for a new factory that will expand the company’s capacity to churn out panels in its home market. That’s according to Electrek, which said it had independently confirmed a tip from a source pointing the publication to the Brookshire, Texas, site. The plant will be co-located with a battery factory that is already under construction at the same site.
“Any level of commitment to onshore the entire supply chain is a positive sign for American solar manufacturing and supply chain security,” Yogin Kothari, the chief strategy officer at the SEMA Coalition trade group that advocates for U.S. solar manufacturers against cheap Chinese imports, told me in a text message Tuesday night. “We can make solar panels here — we just have to have the commitment to do it.”
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New Yorkers could receive $200 rebates from the state as part of Albany’s effort to soothe the pinch of rising electricity prices. On Tuesday, Newsday reported that the program would be part of the state budget agreement, which Democratic Governor Kathy Hochul and the Democrat-led legislature are still working to finalize. It wouldn’t be the first check the Hochul administration is sending out to voters as the former lieutenant governor, who initially came to power when former Governor Andrew Cuomo resigned over alleged sexual misconduct, runs for reelection in November. Last year, in a bid to combat the sting of inflation, the state issued rebates ranging from $150 to $400 depending on filing status and adjusted gross income in 2023.
Though it’s home to the world’s largest known reserves of lithium, landlocked Bolivia’s vast resources have largely remained undeveloped after two decades of rule by a left-wing government leery of foreign investment. The right-wing government that finally broke the Movimiento al Socialismo party’s grip on power in La Paz last year has sought to tap the so-called white gold in its salt flats, particularly as Washington looks for new sources of metals outside of supply chains China largely controls. New documents published Tuesday by the left-wing journalist Ollie Vargas appear to show the Bolivia’s Public Prosecutors Office’s warrants to arrest protesters and labor leaders connected to recent nationwide strikes on charges that include terrorism. “Bolivia’s government has ordered the arrest of all the main leaders of the indigenous movements and mineworkers unions,” Vargas wrote in a post on X. “They’re being charged for Terrorism for having organised the general strike against hunger. Strike continues regardless, now in day 7.” Clashes between law enforcement and protesters started last week.
China’s hydrogen industry is booming. Its sales of electrolyzers are beating out domestic manufacturers in Europe. Fuel cell vehicles are hitting the roads. Hydrogen refueling stations are opening. But the Chinese hydrogen sector with the highest volume of orders coming from overseas is for something simpler: Two-wheeled, hydrogen-powered motorcycles. That’s according to the latest China Hydrogen Bulletin, in which analyst Jian Wu reported from the 6th China International Consumer Products Expo on the island province of Hainan that a maker of the motorcycles had secured $300 million in overseas orders.
The maker of smart panels is tapping into unused grid capacity to help power the AI boom.
The race for artificial intelligence is a race for electricity. Data centers are scrambling to find enough power to run their servers, and when they do, they often face long waits while utilities upgrade the grid to accommodate the added demand.
In the eyes of Arch Rao, the CEO and founder of the smart electrical panel company Span, however, there is a glut of electricity waiting to be exploited. That’s because the electric grid is already oversized, designed to satisfy spikes in demand that occur for just a few hours each year. By shifting when and where different users consume power, it’s possible to squeeze far more juice out of the existing system, faster, and for a lot less money, than it takes to make it bigger.
This is what Span’s smart panel does — it manages the energy drawn by household appliances to help homeowners integrate electric vehicle chargers and heat pumps without triggering the need for electrical upgrades.
Now the age of AI has opened up new opportunities for the company. Last month, Span announced the launch of XFRA, a device that works with Span’s smart panel to power AI applications by tapping into the unused electrical capacity available to homes and businesses.
The company refers to XFRA as a “distributed data center.” It’s sort of like if you chopped up a full-scale data center into washing machine-sized boxes and plugged them into peoples’ homes; Span’s smart panel then acts as a conductor, orchestrating XFRA’s energy consumption to take advantage of unused power capacity without stepping on the home’s other energy needs. In exchange for hosting one of these XFRA “nodes,” Span will offer homeowners and tenants deeply discounted, if not free electricity and internet service.
The idea sounded audacious, verging on fantastical, until I watched the economics play out in real time at one of Span’s labs in a warehouse south of San Francisco. Ryan Harris, the company’s chief revenue officer, showed me an XFRA prototype — a metal box about the size of a freezer chest stuffed with Dell servers and Nvidia liquid-cooled GPUs. Span was renting out the processing power from this node and six others to AI users through an online marketplace. On a computer screen next to the unit, a dashboard showed the revenue flowing in from the fleet — $500 over the past 24 hours, and more than $21,000 in the previous three weeks. The numbers continued to tick up as I stood there.
When I first planned to write about Span, XFRA was still a secret. I reached out because its smart panel business, which debuted in 2019, seemed to suddenly take off.
In February, Span announced that PG&E, the largest utility in California, would be installing its devices in thousands of homes beginning this summer. Then in March, the company revealed a partnership with Eaton, one of the biggest legacy electrical equipment companies in the world. Eaton is investing $75 million in Span and will begin selling co-branded electrical panels to its extensive network of distributors, installers, and homebuilders later this year. With the launch of XFRA, Span is becoming something like a utility itself. To date, the company has raised more than $400 million, and will soon close a nearly $200 million Series C.
Of course it will take more than smart electrical panels to serve data centers’ soaring power needs. In this era of unprecedented energy demand growth, building a bigger electrical system is unavoidable — but the size of the investment, and the cost impacts on everyday electricity customers, are malleable. Several recent studies have shown just how big the opportunity is to get more energy out of our existing infrastructure if the entire system can become a bit more flexible.
Last year, Duke University researchers found that on average, the U.S. is utilizing only about half of our electricity generation capacity. Nationwide, they estimated, the grid could accommodate at least 76 gigawatts of new load — close to the total generation capacity installed in California — without having to upgrade the electrical system or build new power plants, so long as those new end-users were somewhat flexible with when and how much electricity they used.
More recently, in a report commissioned by a coalition called Utilize, of which Span is a member, the Brattle Group found that milking just 10% more from our existing grid infrastructure on an annual basis could reduce electricity rates for all end users by 3.4%. Utilities can sell more energy, faster, and spread the fixed costs of running the system across more customers.
What all this meant in practice did not fully click for me until I saw a demonstration of Span’s panel at the lab a few weeks ago. Harris, the CRO, led me to a free-standing wall lined with household appliances, a stripped-down version of an all-electric home. A minisplit heat pump whirred while a high-speed electric vehicle charger was juicing up a Rivian parked on the warehouse floor. A TV screen displayed the amount of power going to each device, as measured by Span’s electric panel.
Together, the heat pump and charger were using about two-thirds of the electric capacity of this demonstration home, which was running on a 100-amp utility service connection. The charger alone was using 48 amps.
The owner of this theoretical home would typically not have been allowed to install such an energy-intensive EV charger without upgrading to 200-amp service. Electric codes require that residential electrical systems have room for the rare scenario that a home’s major appliances all run at once, for safety reasons. Otherwise, the occupants might accidentally try to draw more power than their utility connection can deliver, overheat their wires, and start a fire. 100-amp connections are exceedingly common in homes designed to use gas or propane for cooking and heating, but once you replace those appliances with electric versions, or add an EV charger, you start to push the limit.
A service upgrade to 200 amps can take many months and cost several thousands of dollars. The utility typically has to run new wiring to the house, and might even have to augment the grid infrastructure serving the neighborhood.
Span’s smart panel offers an alternative.
“Shall we turn on some load?” Harris said. An engineer on Span’s product team turned on the demo home’s electric water heater, and I watched as the chart on the screen adjusted. The water heater jumped from zero to 22 amps, while the EV charger’s amperage decreased from 48 to 33. When the engineer switched on the clothes dryer, drawing 24 amps, the EV charger’s amperage dropped further.
The electrical panel was tracking how much power was flowing to each of its circuits and throttling the EV charger in response. When the team dialed up the electric stove to heat a pot of water, the EV charger shut off altogether.
Next, Harris requested a boost to the “garage” sub-panel, simulating a hot tub or some power tools kicking on. Soon, the water heater shut off, too. “You have 50 gallons of hot water, so it’s not going to have any negative impact on the customer in that moment,” Harris told me. He showed me an alert that appeared on the Span phone app notifying the homeowner that the system was temporarily limiting power to the EV charger and water heater in order to power other devices.
Users can choose which appliances the system bumps first. While some devices, such as EV chargers, water heaters, and heat pumps, have the ability to be ramped up and down, others will simply shut off.
At $2,550 excluding labor for the smallest, most basic smart panel, and just over $4,000 for the biggest one, Span is more expensive than the average dumb panel, which can come in under $1,000. Depending on the home and the complexity of a service upgrade, however, it’s often cheaper to install Span than to move to 200 amps. It’s also almost certainly faster.
Span’s first generation product couldn’t do any of this. Initially, the company’s value proposition was just to give people more control over their energy usage. The original Span panel gave homeowners with batteries the ability to select which devices they wanted to power during an outage and ensure they didn’t accidentally lose charge on non-essentials. The company had to build an initial customer base and validate the technology in the real world, Rao told me, before it could earn the credibility (and the capital) to deploy the fully realized version of the product.
In 2023, Span debuted “PowerUp,” the software that makes what I witnessed at the lab possible. With PowerUp, Span’s smart panel went from being a cool gadget to a money-saver, helping homeowners skip utility service upgrades. The success of PowerUp opened the door for Span to engage with larger partners, starting with homebuilders.
“We had to demonstrate that we were safe and scalable in the home retrofit category to then get homebuilders — who are typically very, very cost sensitive, are not often at the tip of the spear in terms of technology adoption — to say, this is a proven technology, and it saves you money,” said Rao.
Residential developers face similar problems as homeowners, but on a bigger scale. While 200-amp connections have become more standard over the past few decades, new electrical codes that require either fully electric or electric-ready construction are pushing the limits.
“Now the load calculations will put them at 300 or 400 amps of service per home,” Rao told me. “Multiply that by a community of 500 homes, and suddenly you’ve doubled the amount of interconnection you need to bring from the utility.”
This raises the cost of development, and it can also increase the wait time — potentially by years — to get hooked up to the grid. Again, Span offers an alternative. To date, nearly half of the top 20 homebuilders across the U.S. have used the company’s technology, Rao told me. More broadly, its electrical panels have been installed in tens of thousands of homes in all 50 states.
I should note that Span is not the only solution on the market for homeowners or homebuilders to avoid service upgrades — the main alternative is just choosing appliances that don’t use so much power. There are water heaters, clothes dryers, and EV chargers on the market that run on lower amperage, and startups like Copper and Impulse Labs are making stoves with integrated batteries that enable them to do the same. There are also Span-adjacent technologies such as smart circuit splitters that let you plug two power-hungry devices, like an EV charger and a clothes dryer, into the same circuit, and the device will safely modulate power between the two.
“You can hack your way around both problems — one, of a panel upgrade, and two, a Span upgrade, which is also expensive — with cheaper solutions,” Brian Stewart, the co-founder of Electrify Now, a group that provides education and advocacy on home electrification, told me. “But it’s less elegant, let’s just say, than the Span solution.”
Though he started at the home level, Rao has always had his sights set on a much bigger customer — utilities. Several Span executives I spoke to referenced an “infamous” Powerpoint slide from the early days of the company with a bar chart that showed how the company would scale in three phases. First came “back-up,” referring to Span’s initial home battery management product. Next was “power-up,” the software that enabled electrification by avoiding service upgrades. The third was “fleet.”
The same safety principles that trigger service upgrades at individual homes also apply upstream at the neighborhood level. For example, the size of a neighborhood’s transformer, the equipment that changes the voltage of the electricity as it moves along the grid, depends on the combined amperage of the homes it serves. If all those homes are installing EV chargers or heat pumps or whatever else and starting to use more electricity, the utility will have to upgrade the transformer — a cost that gets spread across all of its customers. If a critical mass of the homes have Span panels, however, they can avoid this.
Partnering with major homebuilders earned Span “the right to sit at the table with utilities,” Rao told me, “and say, look, we’ve done this at the home level, at the community level. Imagine if you could do this at the grid level, where the benefit doesn’t just accrue to individual customers or home builders, it can accrue to all rate payers?”
I got a taste of what this looks like back at the lab, where Harris showed me Span’s “fleet capability.” There were actually three demonstration homes set up on the warehouse floor, and Harris showed me how a utility could coordinate a response across multiple Span panels to keep a neighborhood within its safe energy limits.
Imagine it’s a really hot day, and the utility is on the verge of having to institute rolling blackouts. Instead, it can implement what’s called a dynamic service rating event, sending a signal out to the Span panels served by a given transformer to reduce their electrical limit from 100 amps to 60, for example. Rather than the entire neighborhood losing power, a few homes would see their EV charging cut back or their thermostats go up by a few degrees. Of course, not everybody will want to give this kind of control to the utility; customers often cite concerns about comfort and convenience as reasons they are skeptical of these kinds of programs. When I asked Harris whether participating would require that Span customers opt in, he said it was more likely to be opt-out.
Span has done several pilot projects testing this capability. Installing electrical panels is too complex for utilities to do en masse, though. So the company developed Span Edge, a smaller version of its panel that can be installed at a building’s electricity meter. It does all the same things the larger electrical panel does, without needing to serve as the home’s central nervous system. It still enables homeowners to avoid service upgrades by throttling EV chargers or whatever other devices are hooked up to it, but it’s much simpler to install.
This is the device that the California utility PG&E will begin deploying in homes later this summer. The company will offer Span Edge to homeowners who are installing appliances that might trigger an electrical upgrade, or are considering doing so in the future, through a program called PanelBoost. It’s entirely voluntary, and while participants will have to pay for installation, the panel itself comes gratis.
“This is the first time that there’s a large-scale direct purchase of Span equipment by a utility,” Alex Pratt, Span’s vice president of business development, told me. “This has long been the North Star for the company.”
Paul Doherty, the manager for clean energy and innovation communications at PG&E, told me the company saw Span Edge as a “win, win, win for PG&E, for our customers, and for the environment.” It enables customers to electrify their homes more quickly and affordably, and for PG&E to sell more electrons without raising rates.
“We’re very bullish about the opportunity for this technology and the benefit that it will bring for the grid and for our customers here in California,” Doherty told me.
Rao sees XFRA as a natural evolution of Span’s basic premise. The company has found that 98% of its customers that have 200-amp service connections have about 80 amps available at any given time, Harris told me. Hosting an XFRA node enables homeowners to monetize that unused capacity.
To start, Span is prioritizing getting XFRA into newly built homes, where the developer handles customer acquisition and installing at scale is straightforward since every home is roughly the same. The company has partnered with the developer PulteGroup to roll out a 100-home pilot program for a total of over 1.2 megawatts of compute capacity. The partners have not specified where it will be yet or whether there will be a single offtaker for the compute.
In the longer term, Rao told me, XFRA could be the “unlock” that makes electrification more affordable for people. “There is a utopian end state in my mind where XFRA allows more of our customers to get free energy, free backup, and free internet,” he said.
First, the company will have to find out if anyone is actually willing to let XFRA into their home. During my final conversation with the CEO, after my lab visit, he showed me the infamous slide forecasting the company’s growth from “back-up to power-up to fleet.” The y-axis on the chart showed the number of homes per year the company could address at each stage. The bar for back-up systems landed at 5,000 per year, Power-up came to nearly 100,000. Suffice it to say, Span hasn’t hit these numbers.
“Are you where you want to be today?” I asked him.
Of course, he wasn’t going to say no. “We have contracts in place for hundreds of thousands of homes already with utilities,” he said. “Right now our focus is on execution — delivering on that scale, as opposed to finding that scale. It’s a deployed product, it’s not a downloadable app, so it takes time to physically deploy hundreds of thousands of endpoints. So I think that scale is coming.”
After years of dithering, the world’s biggest automaker is finally in the game.
The hottest contest in the electric car industry right now may be the race for third place.
Thanks to Tesla’s longtime supremacy (at least in this country), its two mainstays — the Model Y and Model 3 — sit comfortably atop the monthly list of best-selling EVs. Movement in the No. 3 spot, then, has become a signal for success from the automakers attempting to go electric. The original Chevy Bolt once occupied this position thanks to its band of diehard fans. Last year, the brand’s affordable Equinox EV grabbed third. And then, earlier this year, an unexpected car took over that spot on the leaderboard: the Toyota bZ.
The surprise is not so much the car itself, but rather its maker. Over the years, we’ve called out Toyota numerous times for dragging its feet about electric cars. The world’s largest automaker took the hybrid mainstream and still produces the hydrogen-powered Mirai. Nevertheless, Toyota publicly cast doubt about the viability of fully electric cars on several occasions and let other legacy car companies take the lead. Its first true EV, the bZ4X, was a disappointment, with driving range and power figures that lagged behind the rest of the industry.
Suddenly, though, the Toyota narrative looks different. Working at its trademark deliberate pace, the auto giant is revealing a batch of new EVs this year, just as competitors Ford, GM, Honda, and Hyundai-Kia are pulling back on their electric lines (and writing off billions of dollars to tilt their companies back toward fossil fuels). There is the Toyota bZ, which Car and Driver called “quicker, nicer inside, and better at being an EV” than the bZ4X, its predecessor. There is the C-HR, a small crossover that had been gas-powered before it became fully electric this year. And there is the large Highlander SUV, a popular nameplate that’s about to become EV-only.
To see what’s changed with the cars themselves, I test-drove the C-HR last week. A decade ago, I’d taken its gas-powered predecessor on a road trip down Long Island and found it to be a fun but frustrating vehicle. Toyota went way over the top with the exterior styling back then to make the little car scream “youthful,” but under the hood was a woefully underpowered engine that took about 11 seconds to push the C-HR from 0 to 60 miles per hour. Now, thanks to the instant torque of electric motors, the new version finally has the zip to go with its looks: It’ll get to 60 in under five seconds, and feels plenty zoomy just driving around town.
Inside, C-HR feels like an evolved Toyota that isn’t trying too hard to be a Tesla. The brand took the two-touchscreen approach, with a large one in the center console to handle main functions such as navigation, entertainment, and climate control, and a smaller one in front of the driver’s eyes where the traditional dashboard would be. There are still physical buttons on the wheel to manipulate music volume and cruise control, but climate controls are entirely digital.
The big touchscreen is a work in progress. It’s too crowded with information compared to a clean overlay like Tesla’s or Rivian’s, and the design of the navigation software had some profound flaws. (Whether you’re using the voice assistant or keyboard input to search for a destination, the system lags a troubling amount for a brand-new car. Maybe Toyota just expects you to use Apple CarPlay and ignore its built-in system.) Still, the interface is more iPhone-like and intuitive than what Hyundai and Kia are using in their EVs.
Here’s the real problem with the C-HR: Although it accomplishes the mission of feeling like a fun-to-drive Toyota that happens to be electric, it’s not terribly good at being an electric car. The Toyota lacks one-pedal driving, the delightful feature where the car slows itself as soon as you let off the accelerator, negating the need to move your foot between two pedals all time. Nor does it have a front trunk, a.k.a. frunk, the fun bonus on EVs made possible by the absence of an engine. According to Toyota, the C-HR is so small that engineers simply didn’t have room for a frunk (or a glovebox, for that matter).
The C-HR’s NACS charging port makes it possible to use Tesla Superchargers, and its charging port location on the passenger’s side front should make it simple to reach them. But instead of sitting on the corner of the car, easily reachable by a plug right in front of the parked vehicle, the port is several feet back, just behind the front wheel. And its door opens toward the charger, so the cord has to reach over or under the door that’s in the way. I made it work at a Supercharger in greater San Diego, but only after several frustrating tries and with less than an inch of cord to spare.
Those are the complaints of a longtime EV driver, and they might not matter to some C-HR buyers. The deepest oversight is the C-HR’s nav, which, at least right now, doesn’t have compatible charging stations built into its route planning — a warning message will notify you if the chosen route requires recharging to reach the final destination, but the car won’t tell you where to go. This is a glaring omission for potential buyers who’ll be taking their first EV road trip. (Get PlugShare, folks.) Planned charging is effectively an industry standard — even Toyota’s legacy competitors like Chevy and Hyundai will choose appropriate fast-chargers and route you to them, even if their interface isn’t as seamless and satisfying as what’s in a Tesla or Rivian. At least that’s a problem that could be solved later via software update, though.
Because of these faults, it’s difficult to imagine someone choosing this as their second or third EV. But maybe that’s not the game at all. There is a legion of Toyota drivers out there, many of whom might think about buying their first electric car if their brand built one. Despite its flaws, the C-HR is that. It’s got enough range for city living and occasional road trips, enough power to be fun to drive, and a Toyota badge on the hood.
Whatever their quirks, the very existence of the C-HR and its electric stablemates is a testament to Toyota’s plan to play the long game with EVs rather than ebb and flow with every whipsaw turn in the American car market. And they’re here just in time. Amidst volatile oil prices because of the Iran war, drivers worldwide are more interested in going electric.
In the U.S., that interest has buoyed used EV sales — not new — because so few affordable options are on the market. Although C-HR starts near $38,000, Toyota has begun to offer discounts that would bring it in line with gas-powered crossovers that are $5,000 cheaper. Maybe that’ll be enough for the subcompact to join its bigger sibling, the bZ, on that list of best-sellers.