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Yes, $200,000 fire insurance premiums are possible in Los Angeles now.

Most of the time, the hot, wealthy, coutured-up real estate agents on the hit Netflix series Selling Sunset make selling luxury homes in the Los Angeles hills look like a breeze. The only adversity the Oppenheim Group girls seem to face is inter-office drama over perceived slights, blown out of proportion by savage gossip and likely invented for the cameras.
But in the new season that premiered last week, one of the agents pulled back the veil, just for a moment, on a problem that’s starting to give their high net worth buyers pause: fire insurance.
In the first episode, agent Emma Hernan throws an open house for brokers at a palatial, $19 million home in Beverly Hills. The modern, 5-bed, 9-bath, has “unobstructed jetliner views from every room,” a “fingerprint-secured Mezcal/Wine tasting room,” an infinity pool, a Himalayan salt sauna, a Japanese soaking tub, a wet steam room, a poolside cabana, a 20-person theater with a bar, and a tacky-as-hell human-sized chess set.

But the house, with its opulent amenities and epic vistas, is tucked into a private hillside surrounded by trees. “When you buy a property in this area, the fire insurance and things along those lines can be pricey,” Hernan tells a group of agents gathered on the balcony.
It turns out, Hernan is throwing the event because the original buyer she lined up fell out of escrow after finding out the fire insurance on the house was going to cost an eye-popping $200,000 per year, minimum.
As she tells the other agents the number “isn’t that crazy for a house in the Hills,” they nod knowingly. “But they expected it to be like $40,000, which isn’t going to happen.”

It’s a wild example of what’s going on in the California insurance market right now, where many homeowners are seeing their rates skyrocket, if not getting dropped from their plans altogether, while others can’t find anyone willing to sell them a policy to begin with — no matter how much they are willing to spend.
“There's some people that cannot get it,” Shelton Wilder, a luxury real estate agent in Los Angeles, told me. “And they checked everywhere and so they just don't have insurance on their home.”
This is a pretty recent phenomenon. A 2021 report by the University of California, Berkeley, Center for Community Innovation traces how fire insurance payouts rose dramatically in the last decade due to continued development in high-risk areas and climate change driving more severe burns. It notes that in the latter half of last century, the industry paid an average of $100 million per year in fire insurance claims in the state. But between 2011 and 2018, that number exploded to an average of $4 billion per year. During the particularly bad wildfire seasons of 2017 and 2018, companies paid out two times in incurred losses what they made in earned premiums.
The following year, there was a 31 percent jump in policy non-renewals statewide, mainly in areas with high wildfire risk, according to the California Department of Insurance. Insurers began retreating from some parts of the state altogether. Last week, State Farm, the largest provider of home insurance policies in the country, put a freeze on new applications in the entire state of California.
“It used to be a negligible part of the home purchase process,” another L.A. real estate agent, Brock Harris, told me. “You would just call State Farm and get a policy and whatever, they all kind of cost the same. In a lot of areas it’s suddenly a big part of the analysis of whether the home is affordable. It's kind of crazy.”
Brock’s wife and partner, Lori Harris, had a similar experience to Hernan, the Netflix star. Her client put an offer on a house in Mandeville Canyon, a ritzy hillside neighborhood where Gweneth Paltrow, Dr. Dre, and Lachlan Murdoch have all bought homes. But then she found out the fire insurance was going to be $100,000. “Obviously it was a huge deterrent,” said Harris. “It spooked her. We have clients who won’t look at Mandeville because of the history of evacuations. There’s only one road down so they get freaked out by it.”
It’s not just higher fire risk that’s driving up premiums. Supply chain issues, labor shortages, and inflation are all making the rebuild process a lot more costly.
Many Golden State residents who can’t find insurance on the market are eligible for coverage through a state-mandated program called the California FAIR Plan, but the premiums are on average much higher. The average market insurance in Los Angeles goes for about $1,500 per year, but the FAIR Plan costs an average of $3,200. (FAIR Plan policies only cover up to $3 million.)
Last year, in an attempt to increase access to coverage, the California Department of Insurance issued first-in-the-nation rules requiring insurers to give discounts to property owners that reduce their wildfire risk, like installing a fire-resistant roof or clearing debris around the structure.
As for the house in Beverly Hills? One year later, it’s still on the market. But it got a $6 million price cut — or the equivalent of those fire insurance payments over the course of a 30-year mortgage.
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Will America be the land of opportunity for AtkinsRéalis’ tried-and-true CANDU?
Unruffled by President Trump’s taunts of turning Canada into the 51st state, Canadian Prime Minister Mark Carney has vowed to regain leverage over Washington by remaking his nation as an “energy superpower.” Instead of building pipelines from the oil fields of Alberta to American refineries, Ottawa will run them to its West Coast ports to sell crude directly to Asia. Rather than importing electricity from offshore wind farms in the American Northeast, Nova Scotia will build its own turbines and sell the power back to energy-starved New England as the Trump administration thwarts the region’s own buildout.
But Canada’s path to reviving its nuclear industry may run — counterintuitively — through the United States.
Last week, Montreal-based AtkinsRéalis inked a deal with utility Hoosier Energy and the Indiana government to explore building up to 6 gigawatts of reactors in the state. The agreement is only a memorandum of understanding to kick off a study examining potential sites across the state. But it marks the first real effort to export Canada’s unique pressurized heavy-water reactors, called CANDUs, to the U.S., and highlights how America’s domestic nuclear industry has atrophied to the point that foreign developers of large-scale units are racing to establish a beachhead in the world’s largest atomic power market.
“If the Americans had created the CANDU, everyone in the world would know about it,” Joe St. Julian, the American-born president of AtkinsRéalis, told me. “There’s just a cultural difference in the way that the Canadians go about things and the way the Americans do.”
Pronounced “CAN-do,” the upbeat acronym stands for Canada Deuterium Uranium and evokes the government’s post-war, can-do spirit, mustered to help protect its sovereignty during the bipolarity of the Cold War. Developed in the 1950s by Canadian government scientists and now used across the country’s entire nuclear fleet, CANDUs rely on deuterium, a version of hydrogen with an extra neutron, as their “heavy water” coolant to sustain their chains of split atoms. Uranium powers virtually all commercial nuclear reactors, but CANDUs are distinct in that they can run on the raw stuff, rather than enriched uranium. That’s their real advantage: By forgoing the costly and heavily scrutinized enrichment process, Canada can tap its vast resources of mined uranium without facing the bottleneck of the expensive enrichment facilities or attracting the intensive oversight of global regulators monitoring for the production of atomic weapons.
The 17 reactors that provide 15% of Canada’s electricity today are all CANDUs. India’s fleet largely borrowed the technology, and Argentina, China, Romania, and South Korea have all imported their own CANDUs. But the buildout largely stopped in the last century. Canada built its last CANDU in Romania in 2007. The last Canadian CANDU — Unit 4 of the Darlington nuclear plant in Ontario — came online in 1993.
Two years ago, Canada sought to restart its reactor buildout by commissioning its first American-designed unit. Construction began last year on the world’s first BWRX-300, a small modular reactor that uses enriched uranium as fuel. The U.S. plans to build the second version of the same reactor at the Tennessee Valley Authority’s Clinch River site. Whether it can deliver the cost savings SMRs promise remains an open question, given that nuclear developers have historically improved economics by making reactors bigger, not smaller.
But Chris Keefer, a Toronto physician-cum-nuclear advocate who hosts the in-depth energy podcast Decouple, told me he believes Canada’s real error is in benching the CANDU. While Ontario’s government-owned utility “got their backs slapped endlessly for having the courage to go first” in building the inaugural SMR on the continent, “they’re idiots to be investing $21 billion of Canadian ratepayers’ money to prop up an American company with American technology,” he said, colorfully characterizing the move as a massive error and “the result of dis-coordinated decision-making.” (Converted from loonies to U.S. dollars, that figure is about $14.9 billion.)
While Keefer added that he opposes the trade war between Washington and Ottawa, he also recognizes it as a potential opening. “Part of me loves it and this deglobalization moment we’re in, where strategic autonomy and national interest matter,” he said.
The Carney administration has yet to set clear rules on what kind of reactor technology it will support domestically, but it could, in theory, limit access to federal subsidies for provinces and utilities that opt for non-CANDU technologies. For now, however, there appears to be quiet agreement between the U.S. and Canada on bringing the technology south. St. Julian said the Canadian Ministry of Energy has been “very supportive” in talks about providing financing for CANDU exports to the U.S. AtkinsRéalis is also in talks with the U.S. Department of Energy, though a source familiar with that agency’s thinking cast doubt over the possibility that the Trump administration would ultimately fund a Canadian project in the U.S.
None of this was a part of AtkinsRéalis’ long game, St. Julian told me. “The U.S. had four or five of its own reactor technologies,” he said. “Why would it build a foreign technology?” But shortly after Trump returned to office, “We looked at it and realized the U.S. is down to a single large reactor technology: Westinghouse. The other three or four are no longer in business.”
That was the opening AtkinsRéalis needed. “The U.S. made clear it had the aspiration to build 300 new nuclear power stations,” St. Julian went on. “Between Westinghouse and new technologies coming online with SMRs, we said they couldn’t possibly reach their aspiration no matter how optimistic they are about the capacity and supply chain of first-of-a-kind technologies.”
So the company applied to the U.S. Nuclear Regulatory Commission for approval of the CANDU. In June, AtkinsRéalis sent the regulator a formal heads-up about its plans to file an application this past summer, and it expects to complete its second topical report for the NRC by the end of this month.
The CANDUs aren’t the only foreign reactors making a play in the U.S., though. Last month, South Korea unveiled a deal with the Trump administration to fund construction of up to six AP1000s and two APR1400s.
The CANDU does have some drawbacks that the APR1400 doesn’t. The same characteristics that let its reactors sustain fission using raw uranium also cause wear and tear that requires a significant refurbishment every 35 years. (Canada is already funding a campaign of repairs domestically.) And while a typical refueling outage for a light water reactor lasts up to two months and renovations ahead of a relicensing can take up to a year, the refurbishment process for a CANDU can take the unit offline for two years or more.
AtkinsRéalis declined to comment on its internal estimates of the cost of such a refurbishment, which is — among industry experts — widely criticized as costly. But St. Julian said the company guarantees at least two refurbishments in a CANDU’s lifetime, giving each unit a 105-year lifespan. Amortizing the costs over more than a century of electricity production, not to mention the company’s experience building units all over the world, means a CANDU is “a lot less expensive” than rival technologies, he said.
“The APR1400’s biggest advantage is the Korean industrial ecosystem,” Nana Menya Ayensu, a non-resident senior fellow at the Atlantic Council who worked on energy policy in the Biden White House, told me. “But the CANDU has lots of advantages that are specific to the technology in terms of not needing enriched fuel.”
Keefer highlighted another upside he’s acutely aware of due to his day job as an emergency-room doctor: CANDUs are particularly well-suited to batch-producing “enormous amounts” of medical isotopes, such as cobalt-60, used in cancer chemotherapy and the sterilization of surgical instruments, among other uses.
The technology is certainly attracting attention. Last month, Argentina and Romania agreed to work together on more CANDU projects. Weeks later, as I reported, Poland’s state-backed nuclear developer approved a tender for a second nuclear power station, for which it’s considering the CANDU. Last week, Turkey signed an agreement with Carney to cooperate on civilian nuclear energy, putting the CANDU in contention for the country’s second atomic power station.
And earlier this month, Atlas Atomics, a startup backed by Ohio’s Republican gubernatorial candidate Vivek Ramaswamy, raised $400 million in a Series A to commercialize its own pressurized heavy water reactor, in what Keefer dubbed in his newsletter the “AmeriCANDU.”
St. Julian said the new competition shows the unique value of the CANDU. “The difference is, we’ve been doing it for 70 years, and we spent tens of millions of dollars to perfect this technology; they’re just starting,” he said. Then he cracked a half smile. “They have the benefit of being a second movement,” he added. “But, man, we have a big head start.”
Plus, one big opportunity for climate change.
Anthropic is worried about its ability to power data centers.
While much of the company’s more-than-330-page filing for its planned initial public offering focuses on the mundane (executive compensation) and the extraordinary (“existential risks” are mentioned three times), considerable space is devoted to the problems of power.
The word “energy” appears 14 times in the section of the document laying out risks to Anthropic’s business, while “climate” or “climate change” is mentioned four times.
The overarching concern the company has is that it might not get enough power for data centers running its large language models. “Delays in securing energy, water, and other critical services for these facilities could further slow the pace at which newly commissioned compute becomes available for use,” is one representative sample from its risk factors section. The document later notes that “our business may face increased scrutiny related to these activities … including from the investment community and the local communities in which we operate,” in a later section on environmental, social, and governance standards.
Anthropic is also concerned with the pace of the energy infrastructure build-out more generally, noting “the construction of the generation and transmission infrastructure on which we depend is itself capital-intensive and exposed to labor shortages, supply chain disruptions, permitting delays, changes in interest rates, tariffs, other cost overruns, and financing constraints.” These concerns will be familiar to anyone following the debate in Washington, D.C., over permitting reform, which is also centered on making transmission easier and cheaper to build.
Later in the document, Anthropic writes that electricity policy is both highly varied across the country — “Grid-tied electrical supply, for instance, is subject to the jurisdiction of federal and state energy regulators, regional grid operators, and public utility commissions” — and also evolving, noting specifically that “environmental standards applicable to power generation continue to evolve, including as a result of changing governmental priorities and shifting public and political views regarding climate change and the appropriate treatment of various power generation sources.”
The risk of these policies is that they could result in “failure to secure access to adequate electrical power,” which could then “adversely affect our cost structure and limit our ability to scale our compute infrastructure, develop and deploy our models, and service our customers.”
Anthropic also acknowledges energy can be quite expensive, writing that costs are “largely outside of our control” and can “rise sharply during periods of peak demand or constrained supply, and such increases in energy costs could adversely affect our results of operations.”
Anthropic is the charter member of an industry group, along with Nvidia and Google, to promote and enable demand flexibility, which would reduce peak demand — and thus bring down electricity prices and alleviate the need for additional new infrastructure — by having data centers draw down their power usage when demand was at its highest. The company notes that it has also signed on to “voluntary commitments to offset the impact of our data center energy consumption on local communities and electricity ratepayers.” Already, the document says, “these commitments have increased, and we expect will continue to increase, our operating costs.”
And while the document has little to say about climate change per se and even less about sustainability and renewables, it does note that “the physical effects of climate change may increase our operating costs over time, as higher average temperatures can increase the power consumption and water usage required to cool equipment at the facilities on which we depend.”
Climate change also acts as an amplifier for potential disasters that could affect the company. “The impact of climate change may increase these risks,” the company says of “war, terrorist attacks, and other acts of political violence, or any significant natural disaster, such as an earthquake, fire, hurricane, tornado, flood, or significant power outage.”
Specifically, Anthropic calls out climate-related risk specific to the Bay Area, where it is headquartered. Or, as it bloodlessly describes it, “a region known for seismic activity and increasingly for the threat of fires.”
Otherwise, climate change and sustainability policy is largely seen as a regulatory and cost burden. For example, “regulations relating to [environmental, social, and governance] matters, including environmental sustainability and climate change, are under consideration, being adopted, or being rolled back or revised, which may impact our necessary disclosures and increase compliance costs,” and “sustainability initiatives, goals, or commitments could be difficult to achieve or costly to implement.”
It notes a variety of California, European Union, and United Kingdom climate disclosure laws “will require the dedication of significant time and resources” while also observing that “across the United States ... enacted or proposed ‘anti-ESG’ policies or legislation or have issued related legal opinions,” which could “expose any sustainability, employment, governance, or other corporate practices we adopt to the risk of litigation, antitrust investigations or challenges by federal or state authorities, and result in injunctions, penalties, and reputational harm.”
The document is far less detailed about what Anthropic and its products could do to alleviate or prevent climate change and its effects. This is not surprising for a regulatory filing concerned with disclosing corporate information and outlining risks to investors — but the filing is also supposed to explain the business opportunities it sees as well. In that regard, climate is relegated to a laundry list of potential scientific projects Anthropic’s products could be helpful with. “Claude is also being applied to pressing global problems in scientific research, drug discovery, education, and climate analysis,” it writes.
If its S-1 is any indication, there will be a lot of work to do.
Current conditions: Typhoon Champi swept past Taiwan, leaving one dead and 500 injured as the weakened storm slams into South Korea and Japan • Hurricane Vance is churning off Mexico, bombarding the coast with waves up to 13 feet tall • Tropical Storm In-Fa could strengthen into a powerful storm as it heads toward the Northern Mariana Islands, a U.S. territory.
Brazilian President Luiz Inácio Lula da Silva has secured an unprecedented fourth term, winning 51% of votes in Sunday’s run-off election with far-right challenger Flávio Bolsonaro. The photogenic son of the imprisoned former president Lula defeated in 2022, Bolsonaro, 45, had promised to cut taxes, slash government spending on things like environmental enforcement, and bring South America’s largest economy in closer alignment with President Donald Trump. His message, which resonated in the Amazon’s frontier boomtowns, secured Bolsonaro more votes in the first round of the election on October 4. Lula’s win makes history twice over. He’s the first since democracy returned to Brazil in 1988 to pull ahead and defeat the first-round winner in the runoff. He’s also the first president elected to four terms, with his first two served between 2003 and 2011. On energy, the differences between the candidates are primarily over the role of government in the market, with the conservative Bolsonaro advocating more privatization and Lula seeking to strengthen the role of state-backed enterprises in generating income for the government and carrying out industrial policy.
On actual energy technologies, however, the discrepancy is relatively small, at least compared to the partisan divides in U.S. politics. Brazil’s grid is overwhelmingly clean, powered primarily by hydroelectricity. And Lula, an octogenarian leftist, has ramped up production of oil and gas through Brazil’s state-backed Petrobras. Lula’s signature since he first won the presidency in 2002 has been growing the economy and shrinking poverty while reducing deforestation of the Amazon. Bolsonaro, by contrast, had promised to strip away protections for the world’s largest tropical rainforest. The Amazon is currently seeing a surge of fires as ranchers look to clear woodlands to make way for more cattle pastures. Folha de S.Paulo, Brazil’s newspaper of record, wrote that Trump would now be Lula’s chief foreign challenge.

Brazil’s election wasn’t the only political earthquake on Sunday. Serbian voters booted out former President Aleksandar Vučić, a pro-Russian figure widely described as a “strongman” in the Western press, in a student-led movement that the Associated Press said heralded a “seismic shift” in the Balkan country’s politics. The victorious Student List party had formed adjacent to protests against what would have been Europe’s largest lithium mine, Rio Tinto’s so-called Jadar. Amid increasingly fierce protests, the Anglo-Australian mining giant mothballed the project last year. Vučić had championed the mine as a way to improve his country’s ties to the West as European battery makers look for sources of the metal outside of China. His defeat signals little hope of the project’s return. Serbia’s other energy megaproject, its planned first nuclear power station, now faces new uncertainty. The Student List has not, from what I can tell, made any statements for or against atomic energy. But the previous government had been in talks with Russia’s Rosatom and the Chinese government to build its first reactors. That decision on whether and with whom to move forward on the plant will now fall to the new government.
Helium may seem like a pretty casual commodity, the sort of thing you can buy a tank of in Costco to fill party balloons. But the gas, which has the lowest boiling point of any element, has a wide range of industrial applications. It’s used to make semiconductors, as a tool to detect leaks in natural gas pipelines, and as a coolant in a next-generation class of high temperature gas-cooled nuclear reactors. Now the Department of Energy has anointed helium with a special strategic status. On Friday, the agency designated helium as the latest critical material, a key step toward directing more federal funding toward domestic production of the gas. The U.S. is already among the top three suppliers of helium in the world. But global supplies took a hit this year when Iran closed off the Strait of Hormuz, preventing Qatar’s vast helium exports from reaching the market. “Helium is essential to producing the semiconductors and advanced technologies that power our economy,” Secretary of Energy Chris Wright said in a statement. “By designating helium as a critical material, we are taking another step toward securing our supply chains, creating American jobs, and ensuring the United States leads the world in energy and technological innovation.”
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The Russian energy giant Novatek is “secretly controlling” Polar Train LNG, the Trump-linked company developing a liquified natural gas export terminal on Alaska’s North Slope, the Financial Times reported. The venture — launched in March by Gentry Beach, an investor with ties to the Trump family, to repurpose work the Russians had done on a facility in Alaska — had “featured in high-level negotiations between Washington and Moscow over potential business deals that could help secure an end to Russia’s war in Ukraine,” the newspaper reported. Polar has been awaiting permission from the Trump administration to circumvent U.S. sanctions to negotiate with Russia. Now Polar LNG’s American chief executive, Joel Riddle, told the FT “that he discovered Novatek was already financing the venture and directing operations before the necessary approvals were obtained.” He resigned from his post last month, along with most of the executive leadership team. “I resigned as chief executive of Polar LNG because I felt uncomfortable that the Russian company Novatek was financing and ultimately controlling the strategic direction of the company,” Riddle said. “Building an LNG facility in Alaska is a very strategic project for the U.S. and as a patriot I feel this needs to be developed using US technology and funded by U.S. investors, not a Russian company.”
Unlike other kinds of intermittent renewable power sources, tidal energy promises almost guaranteed predictability. The problem, however, is that it’s geographically limited. A lot of the most advanced projects attempting to make the technology work are in Canada or Europe. Yet renewable technologies have, in recent decades, found commercial viability after sorting out the details of their hardware in Asia. That’s what makes tidal energy developer Minesto’s project in Indonesia so interesting. It’s in one of Asia’s fastest-growing economies, with an archipelagic geography that offers a lot of potential for tidal. Last week, the trade magazine International Water Power & Dam Construction reported that the company had been chosen to participate in the Sweden-Indonesia Sustainability Partnership, a Swedish government-backed program backing clean energy projects in Indonesia. “Indonesia has significant untapped potential in ocean and hydropower resources, which can play an important role in diversifying the country’s renewable energy mix,” said Johan Lennefalk, the acting country manager for Indonesia at Business Sweden, the government agency that promotes Swedish companies overseas. “Minesto’s technology offers a particularly promising solution by harnessing tidal currents that have previously been difficult to utilise, providing predictable renewable electricity that complements other hydropower and ocean energy solutions.”
Remember when solar panels were exclusively large, rooftop rigs? The commodification of the solar panel in recent years has begun making photovoltaics almost ubiquitous, a reality set to expand as more countries legalize plug-in solar that can work on a balcony like a satellite dish. Chinese panels are now so cheap that Europeans have started using them to build garden fences. Now, in Nigeria, solar panels are the must-have wedding gift du jour. Bloomberg reports that solar panels, batteries, and inverters “are turning up on wedding registries, alongside more traditional gifts such as bed linen and microwaves.”