Christian Fong
@christiantfong.bsky.social
Now: decarbonizing the electricity sector with
@rockymtninst.bsky.social | Then: @INDems @HawaiiSenate | Always: @UCBerkeley | all views are my future dog’s
@rockymtninst.bsky.social | Then: @INDems @HawaiiSenate | Always: @UCBerkeley | all views are my future dog’s
Check out the excellent analysis here by my colleagues Jesse Cohen, Lauren Shwisberg, and @tyfi.bsky.social here: rmi.org/gas-turbine-...
Gas Turbine Supply Constraints Threaten Grid Reliability; More Affordable Near-Term Solutions Can Help - RMI
With long waitlists for gas plant turbines, electricity demand growth will require faster, cost-efficient solutions for a more flexible grid.
rmi.org
June 24, 2025 at 3:47 PM
Check out the excellent analysis here by my colleagues Jesse Cohen, Lauren Shwisberg, and @tyfi.bsky.social here: rmi.org/gas-turbine-...
Luckily, a combination of energy efficiency, demand side management, advanced transmission technologies, interconnection queue shortcuts, and co-location of clean energy and new large loads can meet 95% of new loads, even accounting for plant retirements:
June 24, 2025 at 3:47 PM
Luckily, a combination of energy efficiency, demand side management, advanced transmission technologies, interconnection queue shortcuts, and co-location of clean energy and new large loads can meet 95% of new loads, even accounting for plant retirements:
Even if you are able to get a new gas plant, it's going to be costly. Actual costs for recent gas plants show that capital costs for new gas plants are actually 130–200% of industry benchmarks. And that's not taking into account higher fuel costs due to increased LNG exports.
June 24, 2025 at 3:47 PM
Even if you are able to get a new gas plant, it's going to be costly. Actual costs for recent gas plants show that capital costs for new gas plants are actually 130–200% of industry benchmarks. And that's not taking into account higher fuel costs due to increased LNG exports.
@advaitarun.bsky.social called this out months ago here: heatmap.news/ideas/natura.... New gas plants that don't already have their turbine orders secured aren't going to be built any time soon, with a doubling of new gas plant constructed projected over the next 5 years.
June 24, 2025 at 3:47 PM
@advaitarun.bsky.social called this out months ago here: heatmap.news/ideas/natura.... New gas plants that don't already have their turbine orders secured aren't going to be built any time soon, with a doubling of new gas plant constructed projected over the next 5 years.
Read the full article here! www.eenews.net/articles/uti...
Utilities await DOE action on loans to boost grid
Energy Secretary Chris Wright says he is considering the fate of Biden-era financing that utilities consider critical for improving electric reliability.
www.eenews.net
June 10, 2025 at 10:05 PM
Read the full article here! www.eenews.net/articles/uti...
Rising energy bills are increasingly on people's minds. Full-scale repeal of the IRA would be disastrous for energy affordability. LPO loans (and the ITC and PTC!) are critically important to reduce electric bills, from @charlesxhua.bsky.social and myself:
June 10, 2025 at 10:05 PM
Rising energy bills are increasingly on people's minds. Full-scale repeal of the IRA would be disastrous for energy affordability. LPO loans (and the ITC and PTC!) are critically important to reduce electric bills, from @charlesxhua.bsky.social and myself:
Even utilities that haven't received commitments for loans, like Southern Company, parent company of Georgia Power, recognize EIR loans as important for future investments, and may apply as long as Congress doesn't defund LPO:
bsky.app/profile/chri...
bsky.app/profile/chri...
Southern Company, which provides electricity to a large portion of the Southeast, is vigorously defending LPO right now, saying the financing is critical in achieving energy dominance and lowering energy bills. I'll be providing updates in this thread:
science.house.gov/2025/4/energ...
science.house.gov/2025/4/energ...
Energy Subcommittee Hearing - Risky Business Part 2: The DOE Loan Guarantee Program
science.house.gov
June 10, 2025 at 10:05 PM
Even utilities that haven't received commitments for loans, like Southern Company, parent company of Georgia Power, recognize EIR loans as important for future investments, and may apply as long as Congress doesn't defund LPO:
bsky.app/profile/chri...
bsky.app/profile/chri...
Utilities are going to bat for these loans, with PG&E stating that these loans can save ratepayers over $1 billion. But there are also costs if these loans are denied, with PG&E saying that uncertainty around these loans is raising their cost of capital.
June 10, 2025 at 10:05 PM
Utilities are going to bat for these loans, with PG&E stating that these loans can save ratepayers over $1 billion. But there are also costs if these loans are denied, with PG&E saying that uncertainty around these loans is raising their cost of capital.
$43 billion in low-cost loans to utilities that will lower electricity rates for tens of millions of Americans are at stake. These loans are important for affordability, especially in the wake of load growth that will require new capital investments
bsky.app/profile/chri...
bsky.app/profile/chri...
June 10, 2025 at 10:05 PM
$43 billion in low-cost loans to utilities that will lower electricity rates for tens of millions of Americans are at stake. These loans are important for affordability, especially in the wake of load growth that will require new capital investments
bsky.app/profile/chri...
bsky.app/profile/chri...
I hope hearing that Southern Company, which owns some of the most fossil-heavy utilities in the country, strongly supports LPO and its cost-reducing financing can persuade more reasonable minds to keep LPO as an important tool for the electric grid. (2/2)
April 30, 2025 at 5:53 PM
I hope hearing that Southern Company, which owns some of the most fossil-heavy utilities in the country, strongly supports LPO and its cost-reducing financing can persuade more reasonable minds to keep LPO as an important tool for the electric grid. (2/2)
The AIER researcher does bring up a good point in that regulatory uncertainty can also cause the market failures that LPO seeks to fix, and that we should solve these. What he fails to mention is that trying to dismantle the government has created lots of regulatory uncertainty.
April 30, 2025 at 4:52 PM
The AIER researcher does bring up a good point in that regulatory uncertainty can also cause the market failures that LPO seeks to fix, and that we should solve these. What he fails to mention is that trying to dismantle the government has created lots of regulatory uncertainty.
Congressman Riley (D-NY) questions the researcher from the American Institute for Economic Research on his testimony, which says that most LPO guaranteed loans are not additional. Congressman Riley counters that the study he cites was for federal loans in general, not 1703, lol.
April 30, 2025 at 4:45 PM
Congressman Riley (D-NY) questions the researcher from the American Institute for Economic Research on his testimony, which says that most LPO guaranteed loans are not additional. Congressman Riley counters that the study he cites was for federal loans in general, not 1703, lol.
Congresswoman Salinas (D-OR) asks SoCo what would happen if LPO loans were canceled. SoCo responds by saying that utilities everywhere are facing growing capital needs, and this high demand is putting upward pressure on rates. Projects would be delayed and/or more expensive.
April 30, 2025 at 4:32 PM
Congresswoman Salinas (D-OR) asks SoCo what would happen if LPO loans were canceled. SoCo responds by saying that utilities everywhere are facing growing capital needs, and this high demand is putting upward pressure on rates. Projects would be delayed and/or more expensive.
On a question for how LPO can avoid picking winners and losers, former General Counsel Walsh talks about how LPO financing doesn't just benefit the company that gets the loan, but the entire sector by derisking commercial lending and opening up supply chains
April 30, 2025 at 4:32 PM
On a question for how LPO can avoid picking winners and losers, former General Counsel Walsh talks about how LPO financing doesn't just benefit the company that gets the loan, but the entire sector by derisking commercial lending and opening up supply chains
Congresswoman Biggs (R-SC) talks about how LPO-financed projects have failed, and asks how Vogtle was made a success in comparison.
While Vogtle is the first new nuclear plant the US has built in nearly a decade, it was also $17 billion over budget (on a $14 billion estimate)
While Vogtle is the first new nuclear plant the US has built in nearly a decade, it was also $17 billion over budget (on a $14 billion estimate)
April 30, 2025 at 4:23 PM
Congresswoman Biggs (R-SC) talks about how LPO-financed projects have failed, and asks how Vogtle was made a success in comparison.
While Vogtle is the first new nuclear plant the US has built in nearly a decade, it was also $17 billion over budget (on a $14 billion estimate)
While Vogtle is the first new nuclear plant the US has built in nearly a decade, it was also $17 billion over budget (on a $14 billion estimate)
Former General Counsel Walsh talks about how LPO losing 150/250 of its staff would save taxpayers <$30 ~million~ each year, but would severely degrade the ability to manage its existing portfolio of $25 ~billion~ in principal and issue new loans.
April 30, 2025 at 4:18 PM
Former General Counsel Walsh talks about how LPO losing 150/250 of its staff would save taxpayers <$30 ~million~ each year, but would severely degrade the ability to manage its existing portfolio of $25 ~billion~ in principal and issue new loans.
Former General Counsel Walsh talks about how LPO losing 150/250 of its staff would save taxpayers <$30 ~million~ each year, but would severely degrade the ability to manage its existing portfolio of $25 ~billion~ in principal and issue new loans.
April 30, 2025 at 4:13 PM
Former General Counsel Walsh talks about how LPO losing 150/250 of its staff would save taxpayers <$30 ~million~ each year, but would severely degrade the ability to manage its existing portfolio of $25 ~billion~ in principal and issue new loans.
Congresswoman Ross asks if LPO financing can help mitigate some of the CWIP costs and risks to ratepayers, to which the SoCo representative confirms it can
April 30, 2025 at 4:08 PM
Congresswoman Ross asks if LPO financing can help mitigate some of the CWIP costs and risks to ratepayers, to which the SoCo representative confirms it can
Congresswoman Ross is from North Carolina, where SB 261 is currently making its way through the legislature. This bill would 1) remove NC's interim carbon reduction target and 2) widely expand the use of CWIP for "baseload facilities"
ncleg.gov/BillLookup/2...
ncleg.gov/BillLookup/2...
Senate Bill 261 (2025-2026 Session) - North Carolina General Assembly
ncleg.gov
April 30, 2025 at 4:06 PM
Congresswoman Ross is from North Carolina, where SB 261 is currently making its way through the legislature. This bill would 1) remove NC's interim carbon reduction target and 2) widely expand the use of CWIP for "baseload facilities"
ncleg.gov/BillLookup/2...
ncleg.gov/BillLookup/2...
Interesting turn here: Ranking Member Ross asks about construction work in progress (CWIP), and how it shifts risks from utilities onto ratepayers, listing Santee Cooper as an example:
bsky.app/profile/chri...
bsky.app/profile/chri...
VC Summer brings up an interesting debate around cost shifting—South Carolina ratepayers will end up paying billions of dollars for a nuclear plant that never went into service. If tech companies revive it, should they also pay for the initial $9ish billion instead of ratepayers?
Wow. With data center owners hunting for power, South Carolina utility Santee Cooper is accepting bids to buy the site of the disastrous V.C. Summer nuclear project, which cost $9 billion before being cancelled in 2017 with the twin reactors just 40% complete www.nytimes.com/2025/01/22/b... 🔌💡 ⚛️
April 30, 2025 at 4:04 PM
Interesting turn here: Ranking Member Ross asks about construction work in progress (CWIP), and how it shifts risks from utilities onto ratepayers, listing Santee Cooper as an example:
bsky.app/profile/chri...
bsky.app/profile/chri...
and that the entire market benefits after FOAK projects are built, with LPO financing providing that inducement for companies that want to take a leadership role.
April 30, 2025 at 3:58 PM
and that the entire market benefits after FOAK projects are built, with LPO financing providing that inducement for companies that want to take a leadership role.
Chairman Weber asks the former General Counsel Sam Walsh to LPO about why billion-dollar companies are unable to finance first of a kind (FOAK) projects. Mr. Walsh responds that there is significantly less risk to not be first...
April 30, 2025 at 3:58 PM
Chairman Weber asks the former General Counsel Sam Walsh to LPO about why billion-dollar companies are unable to finance first of a kind (FOAK) projects. Mr. Walsh responds that there is significantly less risk to not be first...