To help you understand what is going on in the energy sector and what we expect to happen in the future, our highly-experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest...
Federal regulators want to connect new projects to the electric grid faster. A new rule shifts the approach of the Federal Energy Regulatory Commission from “first come, first served” to “first ready, first served” when the agency decides what grid upgrades to prioritize to bring new generation and storage projects online.
The rule is FERC’s first update to interconnection requirements in two decades. Wait times to connect projects to the grid have escalated in recent years. A typical power plant or storage project built in 2022 took roughly five years to proceed from its interconnection request to commercial operation, up from three in 2015.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Meanwhile, interconnection queues increased by 40% last year, bringing the total backlog of projects awaiting grid connection to 2,000 gigawatts. Experts say the move is a step in the right direction, but more is needed to reduce interconnection backlogs, as well as the cost of completing upgrades.
FERC is preparing another rule intended to spur transmission development via improved planning and cost allocation, to be released in the coming months.
With odds of a bipartisan deal to reform energy permitting starting to fade, the agency’s regulatory moves will play an outsize role in the promotion of new and improved grid infrastructure. Congressional Democrats have started to petition FERC — now evenly split between two Democrats and two Republicans, with one vacancy — on possible changes to proposed regulations. Willie Phillips, acting FERC chairman, has committed to advancing rules in a bipartisan manner.
The question now is who will fill FERC’s lone vacancy, as well as when, tipping the agency’s balance of power back in favor of the Democrats. The White House has yet to name a nominee for consideration by the Senate, despite much speculation.
This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.
Related Content
-
Stocks Keep Climbing as Fed Meeting Nears: Stock Market TodayA stale inflation report and improving consumer sentiment did little to shift expectations for a rate cut next week.
-
Your End of Year Insurance Coverage Review ChecklistStop paying for insurance you don't need and close coverage gaps you didn't know about with this year-end insurance review.
-
Crypto Trends to Watch in 2026Cryptocurrency is still less than 20 years old, but it remains a fast-moving (and also maturing) market. Here are the crypto trends to watch for in 2026.
-
Shoppers Hit the Brakes on EV Purchases After Tax Credits ExpireThe Letter Electric cars are here to stay, but they'll have to compete harder to get shoppers interested without the federal tax credit.
-
What Services Are Open During the Government Shutdown?The Kiplinger Letter As the shutdown drags on, many basic federal services will increasingly be affected.
-
The Economy on a Knife's EdgeThe Letter GDP is growing, but employers have all but stopped hiring as they watch how the trade war plays out.
-
Banks Are Sounding the Alarm About StablecoinsThe Kiplinger Letter The banking industry says stablecoins could have a negative impact on lending.
-
Japan Enters a New Era of Risk and ReformThe Kiplinger Letter Japan has entered a pivotal moment in its economic history, undertaking ambitious policy and structural reforms to escape from decades of stagnation.
-
After Years of Stagnant Growth, Hope Emerges for EU EconomyThe Kiplinger Letter Can a German fiscal push outweigh French political peril?
-
Trump's Economic InterventionThe Kiplinger Letter What to Make of Washington's Increasingly Hands-On Approach to Big Business
-
AI Start-ups Are Rolling in CashThe Kiplinger Letter Investors are plowing record sums of money into artificial intelligence start-ups. Even as sales grow swiftly, losses are piling up for AI firms.
