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March 10, 2025

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Offshore Wind Development Rebound Expected — Outside US

With one notable exception, the offshore wind industry is on track for a global rebound, Rystad Energy predicts in its 2025 outlook, released March 2.

The energy research and intelligence company expects capacity additions to reach 19 GW — substantially more than the roughly 8 GW and 10 GW seen in 2024 and 2023, respectively — and expects investment to reach $80 billion.

Mainland China, the world’s largest offshore wind market, will account for more than 12 GW of the total. With South Korea and Taiwan added in, Rystad projects 74% of 2025 offshore generation capacity additions will be in Asian waters. The U.K., Germany, France and Netherlands account for the remaining 26%.

The world’s largest economy, which until very recently offered robust policy support for offshore wind development, is zeroed out in Rystad’s 2025 forecast of capacity additions.

“U.S. federal policy is creating significant global ripple effects, hindering offshore wind development, especially where a large portion of auctioned capacity lies,” Petra Manuel, Rystad’s senior offshore wind analyst, said in announcing the outlook. “President Donald Trump’s January memorandum halting new leasing and approvals on the Outer Continental Shelf, citing environmental and safety concerns, could last throughout his term, pausing new developments and creating continued uncertainty for ongoing projects.”

One U.S. offshore wind project now under construction, the 800-MW Vineyard Wind 1, could potentially have a 2025 commercial operation date, but it has experienced repeated delays.

Four other projects are in the works: Offshore and onshore construction are underway on Revolution Wind and Coastal Virginia Offshore Wind, while onshore work has begun for Sunrise Wind and Empire Wind 1.

None of the four are scheduled to be completed this year.

Trump’s Jan. 20 memorandum suspended new offshore wind leasing and directed “a comprehensive review of the ecological, economic and environmental necessity of terminating or amending any existing wind energy leases,” injecting a new degree of risk and uncertainty into an industry already struggling to build momentum in the U.S.

While China will dominate construction completion in 2025, Rystad expects that European projects will represent the bulk of final investment decisions (FIDs) made in 2025 for future construction starts — 9.5 GW in total, with Poland, Germany and the U.K. accounting for 6.9 GW. Worldwide, 2025 FIDs are expected to be about equal to those of 2024.

Another barometer of future planning is site leasing. Rystad notes that seabed areas holding a record 55 GW of potential capacity were offered at auction in 2025 outside China. But not all of that capacity found a buyer, particularly in the U.S., where two of four auctions were called off before being held and a third drew bids for only half the lease areas offered.

Rystad expects significantly less capacity to be offered at auction in 2025 — about 30 to 40 GW worldwide, which would be in line with activity seen in 2021 and 2022.

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Ontario Threatens 25% Tariff on Electricity to US

Ontario Premier Doug Ford announced March 4 that the province will enact a retaliatory 25% tariff on its electricity exports to the U.S. — or even halt them — if President Donald Trump doesn’t stand down in a burgeoning trade war. 

“Today, I am writing to every senator, every congressman and woman and the governors from New York state, Michigan and Minnesota, telling them that [if] these tariffs persist, if the Trump administration follows through on any more tariffs, we will immediately apply a 25% surcharge on the electricity we export,” Ford said from a podium emblazoned with “Canada is not for sale.” 

“We will not hesitate to shut off their power as well,” Ford told reporters at the press conference. 

According to a draft public notice of tariff  rules  posted March 3, a 25% tariff on nearly all goods from Mexico and Canada and a 10% tariff on Canadian energy went into effect at 12:01 a.m. March 4.  

Ford’s announcement was part of an unfolding Canadian response. He said it was a “tough day” for both the U.S. and Canada. 

“Canada and Ontario did not start this fight. We want to work with our American friends and allies, not against them. We said we’d never start a trade and tariff war with the U.S. But you’d better believe we’re ready to win one,” he said. 

Ford added that the U.S. leaders he has spoken to agree that Trump’s tariffs on Canada are a “massive mistake” that stand to hurt both countries. He said the two could have worked together to economically sustain one another.  

“We have no choice. We have to respond … tariff for tariff, dollar for dollar,” he said. Ford said Canadians should be prepared for a long fight and escalations, including “surcharges or outright restrictions” on the critical minerals and electricity Canada supplies to the U.S. Ford said Ontario’s tariffs would be used to help the workers affected. 

Canadian power exports to the U.S. fluctuate year to year, though the U.S. is consistently a net importer of power. In 2023, the U.S. took in 15 TWh compared to 42 TWh in 2022, according to the U.S. Energy Information Administration. The decline was brought on by an ongoing drought affecting Canadian hydropower and lower natural gas prices in the U.S.  

Ontario exports power through New York, Michigan and Minnesota. The province powers about 1.5 million homes across those states. 

During a separate and routine press conference March 4, New York Gov. Kathy Hochul said she does not think her state has a “target on our backs from Canada.”  

“Fortunately for our state, I’m good at developing positive relationships with our allies, not embarrassing them,” Hochul said. She said the western part of the state and Canada share an “incredible synergy” and that she had previous assurances from Ford that he would not harm the state.  

“Now, whether that means he can help the flow of energy that we’re already counting on to keep coming here … I’m happy to have additional conversations with him on how we can support each other during this crisis,” she said. 

In response to RTO Insider, MISO said it had more to do to understand how the U.S.’ tariffs work and did not address the prospect of Ontario’s retaliation. The MISO footprint includes Michigan and Minnesota. 

“This is a fluid situation, and it is unclear whether the U.S. import tariffs apply to imports of electricity from Canada, and it is uncertain whether or when this will be resolved. MISO has received no confirmation from federal agencies regarding the duties’ applicability to electricity or who will be responsible for paying or collecting them,” spokesperson Brandon Morris told RTO Insider. 

However, MISO noted that less than 1% of its total energy in 2024 was supplied via Canadian imports, with less than half of that hailing from Ontario. 

“For context, that amount is equivalent to approximately one power plant. MISO manages the loss of power plants like this every day to ensure reliability across our footprint,” Morris said. 

Stacey LaRouche, press secretary for Michigan Gov. Gretchen Whitmer, said the governor and her team are monitoring the situation. Whitmer has previously warned that tariffs would put jobs on both sides of the border at risk and stand to further slow supply chains and raise consumer costs. 

Minnesota Gov. Tim Walz called the tariff back-and-forth “totally avoidable.”  

“And if I had some advice on this one: President Trump can just claim victory. We’ll create an award here and award it [to] him that he won the trade war. Good for you,” Walz said during a March 4 press conference before the agricultural community of Cannon Falls, Minn. “But let us get back to the work of real economics; the growing of food; making sure that we’re innovating for the future.”   

Ford said he was encouraging his fellow premiers to follow suit with reciprocal surcharges. If any make similar announcements, ISO-NE could be included in Canada’s counteroffensive. 

“New England’s power system is connected to Quebec and New Brunswick, not Ontario, and the region’s grid is operating reliably today,” ISO-NE said in an email to RTO Insider. 

Vincent Gabrielle and Jon Lamson contributed to this report. 

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Former BPA Leaders Again Protest Workforce Cuts

IRVING, Texas — Former Bonneville Power Administration heads Randy Hardy (1991-1997) and Stephen Wright (2000-2013) have again collaborated on a public letter distributed in the Pacific Northwest about the “tremendous risk being created” in the region by workforce reductions at the federal agency.

In a letter made public March 3, which followed a previous letter in February, Hardy and Wright argued that the reductions will not realize taxpayer savings, as all BPA expenses are funded through electricity rates charged to its utility customers and passed on to retail consumers. They noted that the federal power marketing administration has already lost 14% of its workforce and a fifth of its power dispatchers, endangering the entire Northwest power grid.

“There has been no strategy to the workforce reductions such as targeting less important positions, or fencing off positions critical to ensuring public health and safety such as power dispatchers and lineworkers,” the former administrators wrote. “While BPA management is strictly limiting communication, from our experience we can presume that management is now attempting to plug round pegs into square holes and in many cases not having anywhere near enough pegs.”

“The implications of those people dropping out of the workforce without a plan just leads one to question: ‘What are the impacts going to be?’” Wright, a member of SPP’s Board of Directors, told RTO Insider as the letter was being released. “When you have people that are everything from duty schedulers, hydro schedulers to linemen, it just leaves you with a bunch of questions about, well, how are they going to manage through this? And then what implications are there for others that are impacted by their operations? They’re so interconnected, there’s a chance that that could be widespread.”

The administrators added three concerns to those expressed in their previous letter:

    • The reductions will increase outage repair times across BPA’s six-state region.
    • Employee safety will be compromised with crews stretched thin and likely requiring more overtime.
    • Geopolitical tension translates to risk of cybersecurity intrusions.

“We reemphasize that we strongly support seeking efficiency gains especially through the adoption of new technology,” Hardy and Wright wrote. “But electricity delivery, unlike many other businesses, is a function where the public reasonably expects — and public health and safety demands — round-the-clock, uninterrupted service.”

They closed their missive by asking for relief from the Department of Energy, urging a total exemption from pending reductions, lifting an existing hiring freeze, rehiring the 100 or so probationary employees already laid off, and exempting the U.S. Army Corp of Engineers and Bureau of Reclamation staff who are funded by BPA revenues.

BPA is part of DOE and provides about 28% of the Northwestern U.S.’ electricity, managing a 15,000-mile transmission network. It is one of the key potential participants in SPP’s Markets+, a day-ahead service offering. Wright serves as chair of the Interim Markets+ Independent Panel and is one of three SPP directors serving on it.

The letter was written for those in the Northwest and distributed by the Public Power Council and others. Hardy took the message to The Seattle Times.

Wright said he and Hardy are simply doing what others can’t.

“We’re putting information out right for people to be aware of,” he said. “The problem is, it’s difficult for the agencies to talk about this, and so, to some extent, we have to surmise some things. But between Randy and me, we just have enough years having been at Bonneville; we can put pieces together that it might not be easy for other people to put together.”

Wright was speaking during a break in SPP’s Energy Synergy Summit. In a separate meeting earlier that day, he asked SPP legal staff about staff reductions at FERC and the potential effect on the grid operator’s “specific issues.”

“I was asking the question because I don’t know what’s going on, but the way [job reductions] landed at Bonneville, I don’t know why it would be significantly different: … the relatively random nature in which people are choosing to resign, or the implications of probationary employees,” he said. “And by the way, ‘probationary employee’ doesn’t mean that they’re new.”

According to the U.S. government, probationary federal workers are new or reassigned employees under evaluation during a trial period, which generally lasts a year. A federal employee can become probationary with a transfer or new job within the same department.

When it was pointed out to Wright during the meeting that he is helping to raise awareness of the layoffs and their potential effect on the Northwest, he said, “This is a very active conversation in the Northwest.”

“The thing that really is bothersome about this is that it doesn’t do anything for the federal deficit,” he said.

In the letter, Wright and Hardy wrote, “Reducing BPA staff does not save U.S. taxpayers one dime.”

The former administrators are not alone in expressing their concerns over the BPA job reductions. Wright reeled off a list of several other public figures who are also speaking up: All but one of Washington state’s Democratic U.S. representatives, who wrote a letter to Energy Secretary Chris Wright (Rep. Marie Gluesenkamp Perez was the lone holdout); Energy and Commerce Committee member Rep. Kim Schrier (D-Wash.), who made a speech on the House floor; and Oregon’s U.S. senators, Ron Wyden (D) and Jeff Merkley (D), who wrote a letter to President Donald Trump. (See Ore. Senators Ask Trump to Justify ‘Reckless’ Job Cuts at BPA.)

Wright said the only Pacific Northwest Republican who has spoken about the issue is U.S. Rep. Dan Newhouse (Wash.). “He did it in a newsletter to his constituents, just saying he’s concerned about the impacts on the energy and research issues. He also has a National Lab in his district,” Wright said.

Asked if the outreach to the government and stakeholders is working, Wright said, “It’s definitely getting attention. I mean, a fair amount of attention.”

Fred Heutte, senior policy associate with the Northwest Energy Coalition, agreed with the sentiments in the letter. He told RTO Insider that though NWEC disagrees with BPA on many issues, “we are absolutely committed to the idea that Bonneville must have the staff to operate the system day-to-day.”

The staffing crisis “is a direct threat to reliability,” Heutte said. He added that regional entities, such as WECC, “have a role in standing up and saying that their main focus under the [Energy Policy Act of 2005] is reliability.”

Heutte sits on WECC’s Member Advisory Committee. The organization oversees compliance with reliability standards. It also conducts resource assessments and planning functions for the Western Interconnection.

Approximately 90 million people are served in the Western Interconnection. Heutte said that WECC speaking up would send a “very important signal.”

“We want people to say, ‘If I flip the switch, the lights will go on.’ That’s a good thing, but there’s an enormous amount of work and enormous amount of vulnerability now to not having the staff sufficient to make that happen. So I hope at the appropriate time that WECC will speak up.”

When asked to comment on the letter, BPA spokesperson Doug Johnson told RTO Insider in an email that “there is nothing in the letter we feel the need to correct or expand upon.”

“WECC is aware of the personnel impacts at Bonneville Power Administration and other federal entities in the West,” Kris Raper, vice president of strategic engagement and external affairs at WECC, told RTO Insider in an email. “We will continue to monitor the situation as it develops, including collaborating and coordinating with BPA and other electric industry owners and operators in support of their role in serving customers with the essential power that they need.”

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FERC Grants Palisades Extra Time to Get Online

FERC has given the Palisades Nuclear Plant special permission to exceed MISO’s 36-month limit on generator suspensions as owner Holtec International works through the plant’s reopening. 

The commission decided Feb. 28 that Holtec can use a 22-month extension on top of the RTO’s three-year limit to bring Palisades back online (ER25-1083). 

The MISO tariff limits generation suspensions to a cumulative 36-month maximum over a five-year span. After reaching the limit, generators are expected to return to service or risk termination of interconnection service. 

Holtec told FERC that its plan to return Palisades to service was not crystalized until April 2024. Previous owner Entergy placed Palisades in suspension status with MISO in 2022. 

FERC’s leeway means Holtec now has until March 1, 2027 — instead of May 20, 2025 — to start the reactor under MISO’s rules. Holtec is navigating a recommissioning process with the Nuclear Regulatory Commission and hopes to have the plant online in October at the earliest. (See Anti-nuclear Groups Challenge Palisades Reopening.) 

Holtec argued that if it was not granted the extra time and lost its interconnection rights with MISO member Michigan Electric Transmission Co., it could result in “substantial delays or potential loss of baseload generation critically needed to support resource adequacy in the MISO region.”  

The Michigan Public Service Commission filed comments in support of the waiver. 

Holtec also said it is preparing a new generator interconnection agreement to file with MISO that will lay out expectations and associated deadlines on the path to reactivating the partly decommissioned nuclear plant. 

FERC said Holtec seemed to act in good faith and that a continuation of the Palisades suspension without terminating interconnection service would not harm any third parties. On the other hand, the commission said that disconnecting Palisades from the MISO system would “jeopardize the recommissioning timeline.”

The commission noted that, according to Holtec, Palisades’ reopen will not require network upgrades. It also said it had Holtec’s word that MISO verified the 22-month waiver would not present “reliability concerns or interconnection queue management issues.” 

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State Briefs

ARIZONA 

House Approves Bill to Require Utility Wildfire Prevention Plans

The House of Representatives approved a bill that would require utilities to prepare wildfire mitigation plans to prevent wildfires and decrease any damages that may occur. Those strategies include inspection procedures for wildfire risks, procedures for de-energizing power lines, community outreach and public awareness efforts, and new steps on how power companies will monitor compliance with their plans. The bill now heads to the Senate. 

More: Arizona Capitol Times 

COLORADO 

House Passes Bill to List Nuclear as ‘Clean Energy’

The House of Representatives passed a bill that would add nuclear power to the state’s list of “clean energy” resources. The state’s definition of “clean energy” determines which projects are eligible for clean energy financing at the county and city levels and determines which resources may be used by a utility to meet the state’s 2050 clean energy target. The bill now heads to the Senate. 

More: Colorado Politics 

DELAWARE 

NRG Closes State’s Last Coal Plant

NRG officially closed the coal-fired Indian River Power Plant on Feb. 23. Originally scheduled for decommission in 2022, the plant was kept operational while transmission upgrades were conducted to the grid until 2026. Now, the plant will close 22 months early. 

More: WBOC 

LOUISIANA 

Meta Announces Plans for $10B AI Data Center

Meta recently announced plans to build a $10 billion AI data center in Richland Parish. To power the massive data center, Entergy is investing $6 billion in infrastructure, including a 10,000-acre solar farm, three natural gas turbines and 100 miles of new transmission lines. The facility, which is projected to be the largest of more than 20 Meta data centers worldwide, is expected to be operational by 2030. 

More: WVUE 

NEVADA 

NV Energy Seeks 9% Rate Increase

NV Energy is seeking approval from the Public Utilities Commission for a $215 million rate increase in Southern Nevada. The increase would raise residential rates by 9%. The utility also asks to increase shareholder return on equity from 9.5% to 10.25% and save low-income residents about $20/month by eliminating the basic service charge. 

More: Nevada Current 

NEW MEXICO

House Passes Low-income Rates Bill

The House of Representatives passed legislation that would pave the way for low-income rates for investor-owned utility customers. The bill would let utilities submit applications to the Public Regulation Commission for low-income rates. The legislation does not create a low-income rate but instead allows utilities to craft a rate or develop a program that is brought to the PRC for approval. 

More: New Mexico Political Report 

SOUTH DAKOTA

Lawmakers Endorse Eminent Domain Hurdles, Enviro Studies for Carbon Pipelines

Lawmakers have advanced legislation that would make it more difficult for carbon dioxide pipeline companies to use eminent domain and would subject their projects to required environmental impact statements. 

A bill to ban eminent domain for carbon pipelines passed the House last month and is awaiting action in the Senate. Meanwhile, another bill approved by the Senate would retain eminent domain as an option but would require entities using it to first attend mediation with the affected landowner and to have a state permit before commencing eminent domain proceedings. 

Elsewhere, the House Commerce and Energy Committee voted 9-4 to send a bill to the House floor that would require an environmental impact statement for CO2 pipelines. The bill would require utility regulators to prepare or require the preparation of statements before approving a permit. 

More: South Dakota Searchlight 

PUC Approves Massive Wind Farm

The Public Utilities Commission has approved a 260-MW wind farm. The $621 million project will consist of 68 turbines on 46 square miles of privately owned land in Deuel County. More than 50 conditions were included in the permit, addressing cooperation with local agricultural operations, daily time limits on construction, protection of threatened or endangered species, noise levels and more. 

More: South Dakota Searchlight 

TEXAS 

Shell Sells Residential Portfolio to NRG Energy

Shell confirms it has sold its residential book of customers in the ERCOT market to NRG Energy. No other details of the transaction were released. 

More: Houston Chronicle 

VERMONT 

Lawmakers Signal Pause of Clean Heat Standard

Lawmakers indicated they likely will not continue to pursue development of a Clean Heat Standard. 

The discussions come a month after a report was released saying the standard would cost $1 billion over 10 years and raise heating fuel 58 cents/gallon to reduce carbon emissions in the thermal sector. 

Lawmakers also are discussing a change to the Global Warming Solutions Act, a law that created carbon emission reduction deadlines, if the Clean Heat Standard is abandoned. 

More: WPTZ 

VIRGINIA 

Lawmakers Approve Rate Relief for Appalachian Power Customers

The House and Senate approve a bill that would provide relief to Appalachian Power ratepayers. Appalachian would be prohibited from raising rates during the winter months, while there also would be moratoriums on late fees for residential customers. The bills must be signed by Gov. Glenn Youngkin. 

More: Roanoke Times 

SCC Approves Dominion LNG Storage Facility

The State Corporation Commission has approved Dominion Energy’s plans to construct a liquified natural gas storage facility. The 25 million gallon facility, capable of storing up to 2 billion cubic feet, would be for the utility’s 1,358-MW Brunswick and 1,588-MW Greensville power stations. Construction is expected to begin this year and be completed by the end of 2027. 

More: Inside Climate News 

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Federal Briefs

NOAA Suffers Mass Layoffs

The Trump administration informed hundreds of probationary employees in the National Oceanic and Atmospheric Administration that they were fired. The firings were expected to cost more than 800 people their jobs. 

Most of the employees were responsible for producing weather forecasts, maintaining radar systems, gathering data from satellites and monitoring commercial fisheries. Several hundred more staff members were expected to leave as part of the resignation program. 

More: The Washington Post; The New York Times 

Congress Votes to Overturn Rule Implementing Methane Fee

The House last week voted 220-206-1 to overturn a Biden-era rule implementing a program that charges oil and gas companies for excess methane emissions. The Senate voted 52-47 the next day to repeal the rule. 

Overturning the rule does not necessarily eliminate the program, which was written into law in the 2022 Inflation Reduction Act. Fully overturning the rule appears to require additional legislation, and Republicans are expected to try to repeal it as part of their broader legislative package. Under the law, companies that emit methane at levels equivalent to 25,000 metric tons of carbon dioxide each year must pay for their excess emissions. 

More: The Hill; The Washington Post 

EIA: US Coal Retirements to Double in 2025

U.S. power generators plan to remove about 8.1 GW of coal-fired capacity in 2025, which would roughly double the amount that was retired in 2024, according to the Energy Information Administration. Coal retirements slowed last year to 4 GW, a sharp decrease from the 9.8 GW retired annually over the past decade, the EIA said. The country’s electricity supply from coal, which once was the primary source, has dropped to about 16%. 

More: Reuters 

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Company Briefs

NRG to Build Natural Gas Plants to Supply Data Centers

NRG Energy has announced plans to build four new natural gas power plants to supply data centers. 

NRG said it plans to build 5.4 GW of natural gas combined-cycle power plants primarily to serve data centers in the ERCOT and PJM markets. The first 1.2 GW are expected to begin operations in 2029. 

NRG also said it plans to build three gas-fired plants totaling 1.5 GW in the Houston area. 

More: Houston Chronicle 

EDF Withdraws from Atlantic Shores Wind Project

French energy giant EDF announced it has withdrawn from its stake in the Atlantic Shores wind project off New Jersey. Its partner, Shell, also withdrew from the 200-turbine, 1,510-MW project in January. Following Shell’s decision, the New Jersey Board of Public Utilities decided not to proceed with a new solicitation that would have allowed Atlantic Shores to submit an updated bid. 

More: WorkBoat 

Air Products Drops Green Hydrogen Projects in 3 States

Air Products officials announced the company is canceling projects in New York, California and Texas. 

The company said the cancellation of the $500 million green hydrogen facility in New York was “based on recent regulatory developments rendering existing hydroelectric power supply ineligible for the Clean Hydrogen Production Tax Credit, as well as slower than expected development of a hydrogen mobility market in the region.” 

Air Products’ board of directors and CEO recently conducted a review of numerous projects, making the decision to cease operations to record a pre-tax charge not to exceed $3.1 billion in its fiscal 2025 second quarter. 

More: North County Now 

First Solar Q4 Sales Up

First Solar reported net sales for the fourth quarter were $1.5 billion, up $0.6 billion from the prior quarter. Meanwhile, net sales for the full year were $4.2 billion compared to $3.3 billion in the prior year. Looking ahead, sales are forecast to be about 32% higher than in 2024. 

More: pv magazine 

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Seattle City Light, Others Urge BPA to Pause Day-ahead Decision

The Bonneville Power Administration should remain in CAISO’s Western Energy Imbalance Market (WEIM) and hold off on joining a day-ahead market, Seattle City Light and other Northwest parties urged in a letter sent to BPA CEO John Hairston days before the agency is expected to issue its draft day-ahead market decision. 

In the March 3 letter, City Light, Portland General Electric (PGE), PacifiCorp and three labor groups praised BPA for pushing for independent market governance in the West, saying the agency’s involvement in developing day-ahead markets by SPP and CAISO has resulted in important market governance reforms. 

With BPA slated to release its draft day-ahead market decision March 6, the signatories argued the “DAM decision presents a critical opportunity for BPA to acknowledge the results of its leadership on governance reform, the desire for additional progress, and the need for additional information to provide the strongest business case for a decision to join a DAM that delivers the greatest economic and reliability benefits to BPA customers.” 

The letter contended that BPA has three options: 

    • Joining SPP’s Markets+, which has independent governance but a smaller footprint with a higher risk of market seams and “great efficiency challenges for itself and the region.”
    • Participating in CAISO’s Extended Day Ahead Market (EDAM), “a market within CAISO governance but with a larger footprint and momentum and progress towards independent governance.”
    • Joining neither market and continuing to participate in the WEIM. 

When asked to comment on the letter, BPA spokesperson Doug Johnson told RTO Insider in an email that the agency “has no plans to alter its current timetable for the day-ahead market decision.” 

BPA staff previously recommended Markets+ largely because of the market option’s independent governance design. Dawn Lindell, CEO of City Light, argued in a November letter that BPA’s Markets+ leaning was “alarming,” saying the agency ignored studies showing the economic benefits of EDAM. (See Rising Tensions Evident at BPA Day-ahead Markets Workshop and Markets+ Leaning ‘Alarming,’ Seattle City Light Tells BPA.) 

A municipal utility, City Light is the largest entity in BPA’s “preference” customer base of publicly owned utilities.  

In January, Hairston tamped down expectations that BPA is all in on SPP’s Markets+. (See In Letter to Senators, BPA Tempers Markets+ Leaning.) 

In the March 3 letter, City Light and the other signatories again pointed to the studies to argue that EDAM could provide significant benefits and that joining Markets+ would be costly. 

Additionally, “BPA’s own analysis through the Western Markets Exploratory Group (WMEG) shows double the benefits for BPA when choosing to remain in the WEIM with current market commitments compared to participation in Markets+ ($398 million v. $203 million),” the letter stated. 

BPA’s March 6 deadline also ignores recent steps taken to create a new independent regional organization that will assume governance over CAISO’s markets, according to the letter. 

California state lawmakers on Feb. 20 introduced a bill that sets the conditions under which CAISO and Golden State utilities can participate in energy markets governed by an independent regional organization. (See Pathways ‘Step 2’ Bill Introduced in Calif. Legislature.) 

In asking BPA to postpone its day-ahead market decision, the letter also took note of the need for more information and recent staffing challenges brought by the Trump administration. (See 2 Top BPA Execs to Depart; Army Corps of Engineers also Faces Massive Cutbacks) 

“[W]e ask that BPA choose to remain in the WEIM for the foreseeable future and not commit to join a day-ahead market at this time,” the letter stated. “This would allow BPA to explore mechanisms to better monetize its participation in WEIM, while continuing to lead on governance reform as it considers future DAM opportunities. Additionally, it would delay the creation of an unavoidable, not easily managed or reversible, seam and maintain the coordination in the West that is critical to keep the lights on and costs down.” 

Another notable aspect of the letter: It was signed by three International Brotherhood of Electrical Workers locals representing workers at City Light, BPA and Tacoma Power, marking the first time any of those unions have taken a position on the day-ahead markets issue. IBEW 125 in Portland, Ore., represents workers at PGE and PacifiCorp, in addition to BPA. 

Tacoma Power last month became the second Northwest entity to commit to joining Markets+. (See Tacoma Power to Join SPP’s Markets+.) 

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ISO-NE Braces for Tariffs on Canadian Electricity

In preparation for potential fees on electricity imports from Canada, ISO-NE requested authorization from FERC on Feb. 28 to collect import duties while simultaneously arguing that the RTO “is not the appropriate entity” to do so (ER25-1445).

The Trump administration’s monthlong pause of the tariffs on Canadian goods, which include a 10% fee on energy imports, expires March 4.

Vague language in the original executive order, coupled with limited communication from the administration, has created significant uncertainty regarding what is included in the energy carveout, how the tariffs will be applied and whether the tariffs apply to electricity. (See Uncertainty Remains Around Energy Tariffs amid Last-minute Deals.)

Along with the 10% energy tariff, President Donald Trump on Feb. 1 imposed tariffs of 25% on all other imports from Canada, as well as those from Mexico.

At a press conference March 3, Trump said the tariffs will proceed, with “no room left for Mexico or for Canada” to avoid them.

ISO-NE has argued that the tariffs “do not appear to apply to electricity and that, even if they do, ISO New England would not be responsible implementing them.”

The RTO noted that the definition referenced by the February order on Canadian imports does not explicitly include electricity. It defines energy or energy resources as “crude oil, natural gas, lease condensates, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, the kinetic movement of flowing water and critical minerals.”

ISO-NE also pointed to statements from the U.S. International Trade Commission indicating that electricity is exempt from U.S. tariff laws.

The RTO’s proposal is intended to protect it if the administration does in fact determine it is responsible for the tariffs, which would pose a “significant financial risk to the ISO” if it does not have the means to collect the fees, it said.

It noted that the “failure to have a cost-recovery mechanism in place prior to the effective date of a Canadian import tariff would place the ISO at risk of noncompliance with a federal obligation and, in a worst-case scenario, could force the ISO to seek bankruptcy protection.”

If it is unable to pay the duties, the federal government could direct the RTO to suspend imports, which could create “precipitous, adverse consequences” for grid reliability, ISO-NE wrote.

It estimated that a 10% tariff on electricity imports would cost the region about $66 million annually, while a 25% tariff would cost the region about $165 million annually. The RTO noted that Canadian imports have covered about 11% of the region’s load over the past five years.

Imports are poised to increase when the New England Clean Energy Connect (NECEC) transmission line comes online, likely by early 2026. The NECEC project includes a long-term contract for the supply of baseload power from Québec to Massachusetts. Hydro-Québec has said it is monitoring the potential effects of the tariffs on its long-term contracts.

To prevent potential fallout for the New England market, ISO-NE proposes a “temporary mechanism” enabling it to collect the tariffs. In the absence of direction from the administration regarding which entities ISO-NE should collect the duties from, the RTO would charge the fees “to the entities selling the assessed electricity into the ISO-administered market.”

If the federal government provides more specific information around the responsible entities, ISO-NE would alert its market participants and adopt the requirements, the RTO noted.

The proposal will only take effect if the Trump administration determines ISO-NE is responsible for the tariffs. If the temporary mechanism does take effect, the RTO said it would work with stakeholders to create a “cost-collection mechanism that is specific to the terms and conditions of the import tariff and resulting imposed import duties.” The RTO would be required to file the final mechanism within 120 days of the date the temporary mechanism takes effect.

ISO-NE said its proposal is intended to apply to any other future import duties imposed by the federal government on electricity. The Trump administration has said it may increase the tariffs if Canada retaliates with its own duties on U.S. goods.

Ontario Premier Doug Ford on March 3 said he is prepared to cut off electricity exports to the U.S. “with a smile on my face” if the tariffs go into effect.

“They rely on our energy. They need to feel the pain. They want to come at us hard; we’re going to come back twice as hard,” Ford said.

The RTO requested an expedited review of its order, asking FERC to rule on its filing by the end of March and accept a March 1 effective date for the proposal. It also asked for a shortened comment period ending March 10.

ISO-NE’s filing mirrored a proposal submitted by NYISO on the same date. NYISO also argued that the executive order does not appear to apply to electricity but asked FERC to authorize it to collect tariffs if required to do so by the administration. (See NYISO Preparing to Collect Duties on Canadian Electricity Imports.)

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ACORE Panel: Did Loper Bright Really Overturn Chevron?

WASHINGTON ― The headlines in the wake of the U.S. Supreme Court decision in Loper Bright Enterprises vs. Raimondo were unequivocal: The Chevon doctrine had been overturned, ending court deference to federal agency expertise in interpreting vague or ambiguous legal statutes. 

Well, maybe not, according to David Hill, executive vice president for energy at the Bipartisan Policy Center. “It’s absolutely true, Chevron was overruled,” Hill said during a panel on the changing legal landscape under the Trump administration during the second day of the American Council on Renewable Energy’s Policy Forum on Feb. 27. “But it’s worth actually thinking about what was the Chevron decision, and what were the courts and the agencies actually doing … and what did the court in Loper Bright … actually say?” 

Hill and others on the panel spent an hour trying to untangle the legalities, or lack thereof, in the onslaught of executive orders and actions unleashed in the six weeks since President Donald Trump was inaugurated, along with the impact of major court decisions like Loper Bright. 

Going back to the original Chevron doctrine, Hill said, the decision to defer to agency expertise in interpreting a statute was supposed to be a two-step process in which the courts first had to determine whether a statute was ambiguous or “clear on its face.” Part of the problem with Chevron was how it was applied, he said. 

“The courts would be all over the board with it. There were judges in individual cases that would disagree about whether or not a statute was clear or ambiguous,” Hill said, which complicated the second step of deciding whether an agency’s interpretation should be deferred to.  

Once again, the courts decided if an agency’s interpretation was permissible and reasonable. Under Loper Bright, courts no longer can give “binding deference” to agencies, he said. What they can do is “give the agency very great respect, due respect. They can consider it highly persuasive, especially informative, [give it] most respectful consideration, great weight. So, what’s the difference between that and some pretty great amounts of deference?” 

As the lower courts ruled on how to apply deference under Chevron, they also likely will “decide how much Loper Bright actually changed the real law,” Hill said. “Now they can’t say … ‘we’re just stuck with what the agency said,’ but they can give a lot of weight to what the agencies did, and I think they will on some of the really technical, statutory interpretations.” 

Cary Coglianese, director of the Penn Program on Regulation at the University of Pennsylvania’s Carey Law School, generally agreed with Hill’s interpretation of Loper Bright, but said the ruling likely would have symbolic impacts. Beyond the court overturning a 40-year-old precedent, “you have to also think about Loper Bright in the context of a larger Supreme Court that’s deeply skeptical of administrative power,” he said. 

Coglianese pointed to other recent cases, such as West Virginia vs. EPA, which raised the “major question doctrine demanding greater clarity whenever agencies are to use statutes to do something important, like regulating to protect against climate change.” 

Future cases may be “a little less about how Loper Bright is actually written and what it says, but more [about] what it actually means to be part of a larger, shifting legal landscape,” he said. “And quite frankly, we can’t discount at all the administrative and political landscape that’s shifting as well.” 

Is the Endangerment Finding Safe?

Speaking from the legislative side, Ana Unruh Cohen, Democratic staff director for the House Natural Resources Committee, said individual lawmakers “always aspire to write a very clear and direct … piece of legislation, and then things get negotiated; things change.”  

Certainly, as representatives move new bills, they are focused on ensuring their language is clear, Unruh Cohen said. Similarly, Hill said, agency staff writing regulations will have to think carefully about building a well-argued paper trail to validate their interpretation of statutes without relying on Chevron.  

Could Loper Bright also be used to advance further deregulation, such as a rollback of EPA’s 2009 endangerment finding, which allowed the agency to regulate greenhouse gas emissions under the Clean Air Act? 

Unruh Cohen noted that the Supreme Court has not overturned the endangerment finding in the past, even when it had the opportunity to do so, but Coglianese again pointed to the shifting legal and administrative landscape. “Maybe this current Supreme Court would be willing,” he said. “If they’re willing to go back and overrule Chevron, if they’re willing to go back and overrule Roe v. Wade,” is the endangerment finding really safe? 

“Maybe they would be happy to say, yeah … we now accept that EPA under the Trump administration has a better reading of the Clean Air Act that says it never authorized regulating greenhouse gas emissions.” 

Coglianese and Unruh Cohen both expect that any approach to overturning the endangerment finding would have to be done on statutory grounds rather than a full-on attack on climate science. Congressional Republicans have shifted their approach from one that questions climate science itself to one that asks which policies can best address the issue, Unruh Cohen said. 

Coming at it from a statutory perspective starts from the “question of whether we have the statutory authority in the first place to do this,” Coglianese said. “Then, quite frankly, none of that technical information really matters.” 

Coglianese also laid out the statutory and constitutional issues related to Trump’s funding pause. “One has to ask the people who are issuing these directives, do they have statutory authority? Second, are they acting in a manner that is not arbitrary? … 

“Then there’s these constitutional questions about whether it’s consistent with our separation of powers. Whether it’s consistent with the spending clause of the United States Constitution for the executive branch on its own to simply decide what we want to spend money on or not, even though Congress has approved and told the administration to carry out the spending.” 

The catch, he said, is the pacing and timing problem: “Those who control the computers are able to block funding, and there’s not a lot of transparency around that. The courts are being much more deliberative and trying to figure out what’s going on.”