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Environmentalists, however, still aren’t sold on the ADVANCE Act.

While climate change policy is typically heavily polarized along party lines, nuclear energy policy is not. The ADVANCE Act, which would reform the nuclear regulatory policy to encourage the development of advanced nuclear reactors, passed the Senate today, by a vote of 88-2, preparing it for an almost certain presidential signature.
The bill has been floating around Congress for about a year and is the product of bipartisanship within the relevant committees, a notable departure from increasingly top-down legislating in Washington. The House of Representatives has its own nuclear regulatory bill, the Atomic Energy Advancement Act, which the House overwhelmingly voted for in February.
The resulting bill — a.k.a. the one that just passed — is a compromise between the House bill and the ADVANCE Act originally introduced in 2023, has been stapled to the “Fire Grants and Safety Act,” a bipartisan bill that reauthorizes a gaggle of federal firefighting programs that has already passed the House.
The nuclear piece of it is designed to align the Nuclear Regulatory Commission around so-called “advanced” nuclear reactors, a catch-all term that covers a number of designs and concepts that are typically smaller than the existing light water reactor fleet and would, ideally, be largely factory-built to reduce costs. So far, the NRC has only approved one advanced reactor design, put forward by the nuclear startup NuScale, but plans to actually build it fell through due to escalating costs. Another advanced nuclear project, Bill-Gates-backed TerraPower, has started construction ahead of receiving approval from the NRC.
The ADVANCE Act would eliminate some fees for applicants going through the NRC approval process; instruct the NRC to develop specific rules for “microreactors,” which might only have 20 or so megawatts of capacity and could be used for single sites or rural areas; establish prizes for advanced reactors; and “streamline” the NRC process for advanced nuclear reactors. That last bit would involve beefing up the Commission with additional staffing, change its mission statement to be more supportive of nuclear energy’s benefits (as opposed to merely its risks), and come up with a way to make it easier to develop nuclear reactors on brownfield sites such as decommissioned coal plants.
The Nuclear Energy Institute said in a statement in April that the bill would “improve our ability to get more nuclear reactors approved and on the grid more quickly.” That is exactly what some environmental groups are unhappy about, however. “Senate Majority Leader Chuck Schumer’s apparent embrace of new nuclear energy development represents a stark betrayal of the clean, safe renewable energy options like wind and solar that he claims to champion,” Wenonah Hauter, executive director of Food & Water Watch, said in a statement last week.
The ADVANCE Act is just one of a flurry of legislative and executive actions to support the nuclear energy industry. Nuclear power qualifies for a number of Inflation Reduction Act tax credits and the beefed up Loan Programs Office has committed up to $1.5 billion for the re-opening of the Palisades Nuclear Plant in Michigan.
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The additional clean capacity would represent nearly 3% of North America’s existing total.
North America has about 37.5 gigawatts of total virtual power plant capacity, according to energy consultancy Wood Mackenzie’s latest estimate, published last year. That capacity is spread across roughly 2,000 VPPs, which aggregate distributed energy resources like batteries, smart thermostats, and heat pumps to cut, shift, or supply electricity when the grid is under strain — effectively turning them into a single, coordinated power plant.
On Thursday, Google and VPP operator Voltus announced plans to add another 1 gigawatt of clean capacity over the next three or four years — or nearly 3% of North America’s existing total. Under Voltus’ “bring your own capacity” model, Google will fund the VPP to help meet its booming data center power needs, while Voltus will enroll businesses and households across the PJM Interconnection, the notoriously overstrained grid region spanning parts of the Midwest and Mid-Atlantic, compensating them for their participation either directly or through electricity bill credits.
The announcement expands on a three-year, 100-megawatt deal the two companies signed in June, extending their commitment through 2040. Voltus CEO Dana Guernsey told me that the smaller deal gave the companies a starting point for a much more ambitious partnership. “It’s a lot easier to explain to people how you’re going to 10x if you’ve already 1x, and so we had to start somewhere,” she said. “We always had our eyes set on bigger things.”
Earlier this month, Voltus closed an oversubscribed $225 million Series D round led by Generation Investment Management to scale its VPP portfolio to 20 gigawatts by 2030. The first phase of the Google partnership is also oversubscribed, Guernsey told me. While that flexible power won’t come online until next year, this means Voltus has already lined up over 100 megawatts of accredited capacity that PJM can count on to deliver when needed, much as it would a natural gas plant or solar-plus-storage installation.
In the meantime, the VPP operator says its broader PJM portfolio has already demonstrated what it can do. Last week, an unseasonably warm stretch of fall weather required PJM to activate its Emergency Load Response Program twice. With 46 gigawatts of generation offline for planned maintenance or construction and another 15 gigawatts unexpectedly unavailable, “distributed resources came through,” Guernsey posted on LinkedIn. “This is how a modern grid should work.” Based on preliminary data, she told me that Voltus delivered about 105% of its committed load reduction during the events.
And VPPs can do more than help avert emergencies. Grid operators are increasingly calling on distributed resources for routine grid management too, such as to ease daily price spikes, reduce emissions when the sun or wind isn’t available, or relieve congestion on a local line. “It’s nearly constant. I think soon we’ll be able to say it’s like every hour,” Guernsey told me.
So far this year, Voltus has reduced electricity demand in PJM by more than 200 gigawatt-hours. Now the company plans to lean more heavily on batteries, particularly at commercial and industrial sites, to accelerate its growth. Guernsey told me that with battery costs falling, electricity prices rising, and fixed payments to participants through 2040, the math now works to deploy batteries at scale, without exposure to unpredictable wholesale electricity prices.
She’s betting that other hyperscalers will see the value in large-scale battery deployments too. Most of the buzz today has revolved around hyperscalers bringing their own generation online — both to secure power faster and head off community opposition by paying their own way. Thus far, Google is the only hyperscaler committed to bringing its own distributed capacity through a VPP. But getting the big players to embrace these new “bring your own capacity” contracts, which Voltus launched last September, is central to its growth strategy.
Guernsey has likened these novel capacity contracts to the corporate renewable power purchase agreements that Google also helped pioneer in the early 2010s. Now she sees a similar opportunity for VPPs to move from a promising concept to a mainstream procurement tool.
“There’s been this notion that we’re coming up on an inflection point for a very long time,” she said of the VPP market. “And I want to be able to say we came up on the inflection point, we went past it, and now we are scaling. And this is an awesome proof point.”
The Federal Reserve raised the federal funds rate by a quarter point, the central bank announced Wednesday afternoon, its first rate change since Chairman Kevin Warsh took his seat in May and its first rate hike in over three years.
The federal funds rate will now sit between 3.75% and 4%. According to projections by regional Federal Reserve presidents and members of the Board of Governors, the central bank expects to hike rates one more time this year.
In its now characteristically brief statements, the Federal Open Market Committee said that the hike “will support a timelier return to the Committee's 2 percent goal” for inflation. Inflation is currently running at 3.4% and has been above the Fed’s 2% target since 2021.
The FOMC’s (brief) statement explaining the hike pointed to “resilient” domestic spending and “robust” capital investment. It characterized the economy as “expanding at a solid pace,” albeit with “elevated” uncertainty due to “geopolitical developments.”
This combination of factors — high oil prices due to the partial shutdown of the Strait of Hormuz and high investment in data centers — have helped push up yields on Treasury bonds, which helped maneuver the Federal Reserve into its rate hike. These rising Treasury yields have made raising capital more difficult for sectors besides artificial intelligence, very much including the capital-intensive renewable and clean energy industries.
Warsh attributed higher Treasury yields to “economic strength, competition for capital, and geopolitics,” in his press conference following the rate announcement. The yield on the 10-year treasury bond, often used as a benchmark for the cost of money throughout the economy, rose to over 5% on the news, the highest level since 2007.
The August Electricity Price Hub data is in.
It’s another hot and expensive summer.
Across the country, average household electricity bills are up 2.7% in the first eight months of the year, according to the latest update to Heatmap and MIT’s Electricity Price Hub, tacking on $4 per month to the typical bill. This level of rise is consistent with the pace set in 2024 and 2025, but faster than 2021 and 2023.
As we’ve discussed before, some of the fastest growth in prices comes either in the Atlantic Seaboard — with Washington, D.C., Virginia, and New Jersey all having year over year growth rates of at least 7.5% — thanks largely to increased demand and capacity payments in the PJM Interconnection marketplace. Another standout so far this year is Hawaii, which is uniquely dependent on imported oil to power its grid and has seen its 12-month trailing average prices rise by over 8% so far this year.
California, which is well known for seeing especially sharp price increases in recent years largely due to wildfire-related costs, has seen somewhat restrained bill growth so far this year across the state, with the 12-month-rolling average bill rising just 3% in the past 12 months and prices going up 4%. (That price level is still quite high, however, at almost 32 cents per kilowatt-hour, compared to a national average of around 19.)
Rates charged by Southern California Edison, one of the state’s big three investor-owned utilities, are up almost 15% in the past year, averaged across its baseline regions. The MIT researchers attribute this increase to two major factors: one, a decrease in the California Climate Credit, which is paid out to electricity customers from the state’s emissions cap-and-invest program. This year, the credit for Southern California Edison ratepayers is $72, applied to bills in July and August in tranches of $36. Last year, by contrast, Southern California Edison handed out $112 in two tranches, April and October.
The second factor in Southern California Edison’s inflated bills is an increase in the fixed charge portion of the bills ratepayers receive. Following changes in California state law designed to distribute the cost of the grid more equitably, SCE revamped its rate structure at the end of last year to include a “Base Services Charge” of $24 per month for customers not enrolled in any special rate program. At the same time, SCE instituted a roughly 10% decrease in its per-kilowatt-hour electricity rate in order to protect lower-income ratepayers (who would pay a fixed charge substantially lower than the baseline $24). PG&E moved to a similar system earlier this year.
When it introduced the new rates in November of last year, SCE said that “medium energy users” would likely see little change in their bills. Price Hub data suggests, however, that the typical household has seen a bill increase from the new service charge of 13%, even before accounting for the smaller climate credit.