What's Happening in Energy

What's Happening in Energy - Mar 27

Written by Nat Bullard | Mar 27, 2026 4:00:01 AM

What's Happening in Energy highlights the most interesting findings from public utility commission filings.

Hey there, it's Nat –
 

This week’s WHiE covers:

  • An 8-hour, 500 MW, Compressed Air Energy Storage facility in the Southwest,
  • A couple of our favorite charts from the PJM Independent Market Monitor’s State of the Market report,
  • A special gas services contract for a “sustainable greenhouse tomato facility” in the Mid-Atlantic,
  • Concerns about the impact of the batch study process on large load net-metering arrangements in ERCOT,
  • And much more!

Consider this as a choose-your-own-depth experience. Skim for the essentials, or chase the linked filings and Halcyon queries down a rabbit hole. Here are a few queries to start you off:

What's Happening in Energy — Mar 27
Powered by Halcyon

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In MISO, Charles River Associates (CRA) presented key questions regarding PJM’s Reliability Backstop Auction (RBA) as mandated by the White House and a consortium of governors. One issue is the potential for a “bifurcation” in the market between new and existing generators. According to CRA,

“The reliability backstop solicitation may require a significant redesign of PJM’s capacity market before the 2030/31 BRA because it would effectively bifurcate the capacity market between new and existing market participants, with new loads (mostly data centers) and new generation participating in the backstop, and existing loads and generation participating in the BRA.”

The presentation surveyed capacity market reforms across ISOs/RTOs (see market comparisons, pp. 4-7) and included a chart comparing estimated PJM supply against the RBA procurement target — which would need to clear roughly 50–60 gigawatts (GW) by 2035/2036.

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In Pennsylvania, environmental groups, consumer advocates, and industrial parties have agreed on terms for a settlement agreement in PPL Electric’s rate case (docket profile). One of the major topics of the settlement was PPL’s new large load tariff, LP-6. We asked Halcyon to summarize the parties’ views on the tariff in their statements of support for the settlement agreement. Check out the response.

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In South Carolina, Duke Energy Carolinas (DEC), Duke Energy Progress (DEP) and other parties came to a stipulation agreement on a request for proposals framework for 400 MW of standalone energy storage. The parties included the Carolina Clean Energy Business Association (CCEBA) and the South Carolina Office of Regulatory Staff (ORS), which also submitted a proposed order to the commission. We asked Halcyon to summarize the agreement:

  • Volume allocation is split between DEC and DEP based on South Carolina peak load shares — though if their proposed merger is approved before the 2026 request for proposal (RFP), a single combined target may be proposed.
  • Ownership split targets 200 MW of third-party storage via Energy Storage Service Agreements (ESSAs) and 200 MW of utility-owned storage.
  • In-service deadline is 2032.

Halcyon angle: Today’s large language models can still be like interns: they work best with clearly-scoped tasks. Our query directed Halcyon to focus on: “goals, dates, and contingencies,” and to skip the legal terms and conditions that comprise half of the stipulation. See the full response or a comparison of the Staff’s Proposed Order to the Stipulation. (docket profile)

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In ERCOT, many parties have submitted comments on Planning Guide Revision Request 145 (PGRR145), which would set the rules for the batch study process proposed to streamline large-load interconnection.

We asked Halcyon to summarize the commenters' concerns (response), and a key issue emerged: PGRR145’s interaction with the implementation of net-metering arrangements in TX Senate Bill 6 (SB6 passed in 2025 to establish a regulatory framework to manage the rapid growth of consumers with high electricity demands). Specifically, commenters warned that the pending SB6 implementation rules in Public Utility Commission of Texas docket 58479, combined with ERCOT’s PGRR145, would push study completion past SB6's statutory deadline — since net-metering studies couldn't begin until after each six-month batch study cycle. Generator and retailer Vistra put it plainly,

“The timeline in PGRR145 in combination with those pending rule provisions likely prevents the study process from being “complete” until more than nine months after ERCOT has the information it needs to assess transmission security.[1] That is fundamentally incompatible with the 120-day timeline in PURA § 39.169(d).”

Halcyon angle: Want to track the rulemaking proceeding for SB6? Sign up for Halcyon’s curated alert.

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In California, Humboldt County community choice aggregator Redwood Coast Energy Authority (RCEA), submitted a load forecast in the California Energy Commission’s Integrated Energy Policy Report proceeding (RCEA presentation). RCEA has experienced a 19% decline in annual energy demand since 2021. This load decrease brings up an important question about forecast risk in the new era of data center load growth. According to RCEA, “Practices that … do not reassess load forecast and load share frequently enough will lead the CEC and CPUC to overprescribe load share to communities with flat or negative load trends…. this leads to inequity, ... resulting in over-procurement and inflated costs for customers.”

Note the inactive key account type called-out below – cannabis growers.

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In PJM, the Independent Market Monitor (IMM) presented highlights from its 2025 State of the Market report (presentation; volumes 1, 2). Standout figures: total wholesale power costs jumped 91.8% from Jan–Feb 2025 to Jan–Feb 2026, and capacity costs surged 389.5%. Why? Contributing factors include elevated regulation clearing prices driven by high lost opportunity costs during congestion and shortage events, partial and fractional clearing of inframarginal units that become marginal in the operational hour, and — though not named in the presentation — Winter Storm Fern’s market impact (see Halcyon’s weekly curated alert). Standout charts: the trajectory of maximum hourly solar and wind by month since 2020. Wind has remained stable, but solar has increased by over 10 GW!


Another standout: the number of hours that loads were over 125 GW in the winter and summer seasons over the past two years. This chart shows a system in growth mode during the peak hours–summer and winter 2025 set all time peak load records.

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In Arizona, Hydrostor, a long-duration compressed air energy storage (CAES) developer and operator, filed generation and transmission plans for its Copper Valley Project (filing)–a 500 MW, 8-hour, 4,000 megawatt-hour (MWh), CAES facility in Buckeye. By September 2032, the facility would interconnect to the 500 kV Jojoba substation in Maricopa County with a 4-mile 500 kV transmission line. Curious how CAES works?

And here’s a project map. The facility sits at the confluence of state and federal lands — in “Alternative B” (outlined in purple) the gen-tie line may snake around the federal lands.

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In Illinois, the Illinois Commerce Commission approved a Commonwealth Edison tariff and rider revision governing service requests from Large Demand Project applicants. The revisions define a large demand project as a single load ramping to 50 MW or more within 10 years, and establish deposit requirements ($1,000,000 base, plus $500,000 per 100 MW increment above 200 MW), letter of credit requirements, and refund and retention policies. Future stakeholder workshops on load forecasting and interconnection transparency are also included. Read a summary of the order. (Docket profiles 25-0679, 25-0677)

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In Virginia, stakeholder comments on Dominion Energy’s proposed Virtual Power Plant (VPP) Pilot Program are now on the record. Below is a summary of comments from Appalachian Voices, Clean Energy Solutions Coalition (CESC), Solar United Neighbors (SUN) along with a request from Dragon Energy, a geothermal drilling and installation company, to include geothermal heat pump resources in the program.

Dragon Energy's submission uses a 25°F Virginia morning to make a point: unlike air-source heat pumps, geothermal units maintain stable, low demand around the clock. This is not achieved through curtailment, rather ground-coupling eliminates the demand spikes that strain the grid on its most stressed mornings.

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In Texas, Freestone Power Generation seeks approval for a net metering arrangement between its Freestone Energy Center (1,099 MW of dispatchable capacity across six generation resources) and C1 Freestone 1's (C1) proposed 760 MW data center, both in Freestone County. ERCOT recommends the approval of the net metering arrangement based on the conclusions of the system impacts study. BUT the recommendation is subject to specific load curtailment conditions during transmission emergencies and restrictions on participation in demand response programs. Meanwhile, direct testimony from CyrusOne (an affiliate of C1) states “ERCOT’s second condition recommendation is commercially unworkable … as written [it] allows future ERCOT protocol requirements, without Commission review of their application to this Net Metering Arrangement …” The prehearing conference is April 2nd.

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And while on the subject of ERCOT large loads, a March update from the Large Load Working Group (LLWG) covers considerable ground. Among the updates: three remaining feasible options for integrating controllable load resources (CLR) and bring your own generation (BYOG) into Batch Zero — a one-time transitional step toward a permanent, recurring batch study process.

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Halcyon Team Query of the Week

Public Comment Excerpt(s) of the Week

  • At the FERC, a resident of Sylvania, Georgia, one Robert E. Lee, submitted public comment on the Elba Bridge pipeline project (public comment). This greenfield pipeline would interconnect with the giant South System Expansion 4 pipeline across Mississippi, Alabama, and Georgia proposed by Southern Natural Gas.

    “Our family lives and works on a farm in Screven County, Georgia near the small town of Newington. This land has been in our family since the 1700s. For generations, we have worked to grow crops, pay our taxes, and preserve not only this land, but the values and faith that have sustained us…Today, that legacy is being threatened by the proposed Elba Bridge Project by Kinder Morgan, which seeks to construct a natural gas pipeline directly through our farm…We are especially troubled that this project appears to serve interests outside our community, transporting gas to another state for a private data center, while placing the burden entirely on local landowners. There is no demonstrated necessity for this project within our county or state, yet we are being asked to sacrifice land that has been carefully maintained for centuries.”

    We were intrigued by the reference to data centers, so we asked Halcyon to explain the justification for the Elba Bridge project. Halcyon responded that the Elba Bridge project would provide gas to the Canadys gas plant in Colleton County, South Carolina. We covered Dominion and Santee Cooper’s joint application to build the 2,130 MW Canadys Station back in the December 19th WHiE. In the application, a representative of Dominion argued that the generation is necessary to support load in Charleston as generators retire.

New Docket of the Week

  • In Virginia, Appalachian Natural Gas Distribution (ANGD) applied to the Corporation Commission for expedited approval of its special contract with Credo Fresh (doing business as “Pluck’d”) to provide firm natural gas service for Credo’s 65-acre “sustainable greenhouse tomato facility” (docket profile and application).

    “Credo Fresh began taking natural gas transportation service from ANGD in December 2025 pursuant to ANGD’s Industrial Gas Service rate schedule (“Schedule IS”). The Schedule IS rates, however, are not sustainable for Credo Fresh to operate in Virginia…The intended purpose of the special rate in this Application is to provide Credo Fresh with an individualized cost structure and contract term for the delivery of natural gas that allows it to operate its plant in Carroll County and to accommodate its expansion plans, as opposed to operating the facility elsewhere…Credo Fresh has also explained the importance of operating climate-controlled environments in a manner that is economically effective to offer its fresh-grown tomatoes in Virginia and elsewhere.”

In case you missed it, the most clicked item from last week’s WHiE
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