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Temperatures aren’t supposed to get nearly as low as winter 2021. The doesn’t mean folks aren’t worried.

Winter has begun to arrive in Texas. In the panhandle, temperatures are expected to get as low as 22 degrees Fahrenheit on Monday, while the National Weather Service forecast office in Amarillo told residents to brace themselves for Tuesday, when “temperatures will plummet to some 20 to 30 degrees below normal.” The more populous parts of the state can expect more cold weather later this week and next; in Austin, lows could dip below freezing by Sunday and into next week, while in Dallas, the thermometer could reach down to 25 this weekend. Austin could have ice, possibly leading to snarled traffic and the occasional downed power line thanks to a gliding car.
None of this is any match for Winter Storm Uri, which paralyzed the state in February 2021, causing a multi-day blackout that killed more than 200 people. But any winter cold stretch in Texas will bring up questions about how the state’s unique electricity system will handle it. “It’s deep in the Texas psyche now, and anytime it gets really hot or really cold the grid is front of mind,” said Joshua Rhodes, a research scientist at the University of Texas.
The vast majority of Texas is on its own electric grid, and the state’s electricity market for businesses and households is far less regulated than anywhere else in the country — Texas households have more options about where they can purchase electricity from, for instance, and the offerings tend to be less standardized. While Texas does typically have low electricity prices, the system can also lead to massive spikes in what households pay. After Uri, when some customers who did still have power faced charges in the five figures, utilities regulators capped prices at $5,000 per megawatt hour.
As in much of the South, Texan households are more like to use electricity to heat their homes, which makes a blackout during a prolonged cold snap extra deadly. The failures during Uri triggered a slew of reports and investigations into what happened and who profited from it. The Federal Energy Regulatory Commission found a lack of weatherization across the board, but especially in the natural gas system, which was behind 87% of all generation outages, some due to distribution failures and others due to power production issues. There were wind outages, as well, thanks to iced turbine blades.
“ERCOT” — the Texas electricity authority — “says they’re ready, but they say they’re ready all the time,” said Ed Hirs, an energy economist and lecturer at the University of Houston. “There’s a credibility issue.”
There has been substantial winterization across the entire system since Uri, Rhodes said. Considering the expected lows will be around 12 degrees higher this week than they were during Uri, Rhodes added, “if any power trips offline for temperature issues, then that would worry me because that means we haven’t done our jobs.”
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Americans paid $217 on average for electricity last month, according to Heatmap and MIT’s Electricity Price Hub.
July is typically the season of high electricity bills, and this year is no exception.
Nationally, the average electricity bill spiked to $217, an all-time high, according to new data from Heatmap and MIT’s Electricity Price Hub. That’s up from $177 in June, and $215 last July. Meanwhile, electricity rates were 19 cents per kilowatt-hour, virtually unchanged from June and slightly higher than July of last year.
Throughout the country, many ratepayers are seeing higher costs and charges in the portion of their bill covering the cost of power generation.
Once again, some of the most notable electricity price and bill trends were seen in the mid-Atlantic region, the heart of the data center boom and the anchor area of the PJM Interconnection. The region also includes Virginia, where Florida utility and energy developer NextEra is attempting to acquire the commonwealth’s dominant utility, Dominion.
In July, Dominion customers saw typical generation charges rise to $155 a month, up from $124 a year ago. Overall bills for Dominion customers were about $259 this past month.
The higher bills are in part due to the “fuel charge rider” that went into effect this past month to help recover about $1 billion in additional generation costs claimed by the utility. Those charges stem in part from higher fuel costs this past winter, when natural gas prices spiked to their highest level since the winter of 2022-23, Dominion officials said in a filing to the state’s utilities regulator. The MIT researchers estimate that the fuel charge added around $53 to July bills, up $12 from July of last year.
In neighboring Delaware, bills were $216 a month in July, a record high, while prices were around 19 cents per kilowatt-hour. Customers of the state’s main utility, Delmarva Power, saw a near 20% hike in the supply charge in their standard service offerings, as prices rose from around 16 cents per kilowatt-hour from last year.
The Delaware Public Service Commission voted at the beginning of last month to allow an interim rate increase of about $3 per month for the typical customer, which went into effect July 9. Soon after, Delaware Governor Matt Meyer signed a law giving the state’s regulators more discretion to reject putting certain utility costs into the rate base and thus limit subsequent price hikes requested by utilities. The governor’s office described the law as a mechanism “to prioritize prudent spending over unchecked cost recovery.”
The energy developer is backing off after a Heatmap report.
Clearway says it is backing off its plans to build a data center and gas power plant on federal land, days after Heatmap revealed the energy developer’s proposal.
Last week, I reported that Clearway asked the Trump administration’s Bureau of Land Management to swap a five year-old application for a solar farm’s permits with “a proposed data center and natural gas facility.” Clearway’s chief development officer John Woody had written in a letter to BLM dated April 3 that the swap was “the result of a shift in our internal development priorities” and intended “to better align with the goals of our Administration.” He also noted the plans were in “exploratory early stages.”
This news fit a trend. I obtained Clearway’s letter right after reporting on a different solar project on federal land that was being swapped for a data center. But it turns out, the company’s internal thinking continued to shift: on Friday, they reached out to me saying they are now nixing the data center and gas plant, after concluding it wasn’t the right call for their business.
“Since our initial filing, we’ve evaluated how to make the best use of this public land in a way that serves its intended purpose: the public interest. As a clean energy developer and operator, our focus in Nevada remains solar and battery storage,” Clearway said in a statement it provided to me from an unnamed spokesperson. “We are in the process of amending our application to reflect the state’s growing demand for low-cost, reliable energy.”
In addition, Clearway on Monday sent a letter to BLM formally alerting the agency it has no plans to build the data center, which it also provided to me.
When I first broke news of Clearway’s plans, I said it was an apparent aberration – they oversaw relatively few fossil projects and had never worked in data centers. I chalked this pivot up to yet another energy developer changing its tune with the winds of national politics. Now that the company is apparently sticking to its guns, I’m mostly just left wondering what happened here – and relieved some still remain committed to zero-emissions power in the booming business of electrons.
The deal, shared exclusively with Heatmap, is the startup’s third in the oil-importing country.
Hydrogen fuel comes in myriad forms. There’s green hydrogen, which is extracted from water molecules using zero-carbon electricity. There’s blue hydrogen, derived from methane and scrubbed clean by carbon capture. And then there’s white hydrogen. Otherwise known as natural or geologic hydrogen, this type of hydrogen comes directly from naturally occurring deposits in the earth, can accumulate in considerable quantities and concentrations, and is highly energy-efficient to extract compared to manufacturing pathways such as electrolyzers and steam methane reforming.
It’s a seductive promise, but finding deposits with enough hydrogen to make the economics of exploration work is difficult. That’s where Koloma comes in. The startup uses a bespoke subsurface data set, which its founders developed over 20-plus years, to flag the areas most likely to hold sufficient hydrogen, after which they can extract it for power and derivative fuels.
On Thursday, the startup announced its latest exploration deal, its third in the Philippines, which will give it exclusive rights to a roughly 817-square-mile area in western Zambales Province on the island of Luzon. Altogether, the company now has rights to explore more than 1,600 square miles of the island.
The Philippines until recently imported 98% of its oil from the Middle East. Since the onset of the U.S. and Israel-led war in Iran and the subsequent closure of the Strait of Hormuz, the country’s responses have included declaring an energy emergency, imposing a four-day workweek, tripling solar panel imports from China, and even planning to dust off the Bataan Nuclear Power Plant, which has sat idle since 1986.
The country also sits between three active tectonic plates, which means it has a lot of young iron-rich rock formations exposed to water — exactly the conditions that continuously produce natural hydrogen.
“The Philippines is like the poster child of that,” Pete Johnson, Koloma’s CEO, told me. “The geology is very, very good.” Accordingly, the prospect of a plentiful, easy-to-tap domestic energy source has gotten Philippine policymakers excited. The government collects data on natural leaks of hydrogen from the ground to help companies like Koloma narrow their search.
In theory, once a viable deposit is discovered, extraction is straightforward. “If you drill a hole into that pressurized reservoir, the gas is going to flow by itself. It’s just like poking a hole in a balloon,” Johnson told me. Where electrolyzers need around 55 megawatt-hours of energy to produce a ton of hydrogen and gas-powered reformers need around 40 megawatt-hours, natural hydrogen extraction would take 3 megawatt-hours maximum, according to the CEO. And unlike some methods to artificially stimulate the formation of hydrogen deposits, which my colleague Katie Brigham wrote about last week, tapping into natural wells doesn’t require injecting high-pressure fluids, which keeps the structural integrity of the subsurface intact.
Koloma has no hard agreement with the Philippine government to earmark any of the hydrogen it may produce there for domestic consumption, Johnson told me. But given the difficulty of transporting the lightweight gas and the projected growth of the Philippine economy, he expects the country would be the overwhelming beneficiary of Koloma’s activities there.
Once it’s extracted, Koloma could sell the hydrogen as a primary resource (major population and industrial centers like Manila are close to exploration sites) or as a feedstock for products like ammonia and sustainable aviation fuel, which local manufacturers could then export. There may also be opportunities to sequester captured CO2, which easily bonds with the types of rock often found in natural hydrogen deposits and can in turn make the rock more reactive for hydrogen generation.
Hydrogen has figured heavily in the decarbonization and energy security plans of import-dependent East and Southeast Asian economies for a long time. As Katie explained earlier this year, it’s also a centerpiece of China’s latest five-year plan. Japan, meanwhile, has been a leader since the industry’s inception, rolling out the world’s first hydrogen strategy in 2017. The Philippines’ partnership with Koloma is a bet that there are enough hydrogen balloons under its land to put its energy plans on the same trajectory.