NOTE: We will note be sending the Energy Market Update the week of February 16 due to the federal holiday. We will return the week of February 23.
Weekly Energy Industry Summary
Commodity Fundamentals
Week of February 9, 2026
By The Numbers:
- Prompt month (March 2026) natural gas settled at $3.14/MMbtu, down $.28 on Monday, February 9.
- Prompt month crude oil settled at $64.36/bbl, up $.81 on Monday, February 9.
Natural Gas Fundamentals - Bearish
- Warmer weather enters the Midwest and Southeast driving down residential and commercial demand in its wake.
- The March Nymex contract settled at $3.14/MMBtu, down $.28/MMBtu.
- Production is back above 108 Bcf per day as freeze offs have largely abated.
- Demand from power generation, and residential/commercial customers dropped 8 Bcf over the past day in response to much warmer temperatures.
- Storage inventories are largely expected to end the season below the five year average which gives some measure of support to pricing action.
- Global LNG prices are soft, with prompt TTF trading $11.70, NBP at $10.80 and JKM at 11.10/MMbtu. Soft LNG prices are bearish of domestic natural gas all other things being equal.
- Bearish weather and recovered domestic supply are bearish of pricing action this week.
Crude Oil - Neutral/Bullish
- Oil prices bumped up $.81/bbl as WTI settled at $64.36 amid continued uncertainty regarding Iran and potential U.S. military action.
- Reports of "easing tensions" pursuant to diplomatic efforts are punctuated by news of the U.S. advising ships to steer clear of the Straits of Hormuz, the largest crude oil shipping lane globally.
- Concerns are rising relative to negotiations between Iran and the U.S. coming to an agreement on Iran ending its nuclear fuels enrichment program and the ongoing social unrest in the country.
- Insiders say that India's imports of Russian crude oil may drop by half under pressure from the Trump Administration.
Economy - Neutral
- December retail sales were flat, falling well short of estimates, CNBC reports.
- Economic data on non-farm payrolls for January will be coming later this week with expectations of a gain of 55,000 reported.
- Unemployment is expected to remain unchanged at 4.4%.
- The January consumer price index will be published on Friday.
- Weekly initial jobless claims will be released on Thursday.
Weather - Bearish
- The 16-30 day outlook shows milder air driving into the Midwest, South and Southeast with above normal conditions through much of the country.
- The exception is the far northern tier and the northeast where more "normal" conditions will persist.
- There is cold air available in western Canada, however there is no blocking mechanism currently to allow that air to flow into the U.S.
Weekly Natural Gas Report
- Inventories of natural gas in underground storage for the week ending January 30 are 2,463 Bcf; a withdrawal of 360 Bcf was reported for the week ending January 30.
- Gas inventories are 27 Bcf less than the five-year average and 41 Bcf more than the same time last year.
Weekly Power Report:
Mid-Atlantic Electric Summary
- The Mid-Atlantic Region’s forward power prices were lower over the past week, as changing forecasts began weighing on the markets. Nymex natural gas futures lost ground on Friday as two-week forecasts offered little bullish support. U.S. natural gas futures fell by more than 8% on Monday as weather forecasts turned slightly warmer and most of the freeze-off production is back except for the Northeast. A trough in the West is bringing storms and cooler-than-normal conditions. This shifts the main ridge axis over the Mid-continent, where temperatures will average well above normal as milder Pacific air pushes out the cold air. The farther east you go, the less protection there is from the Mid-continent ridge. This means storms within the pattern can bring some colder days to the far north and Northeast. Forward power prices for the 2026-2030 terms, last week, were -2% lower with a -13% decrease for the balance of 2026 and only a 1% increase for the 2028-2030 terms. The final, day-ahead settlement price average in West Hub for January is $154.93/MWh, which is 132% higher than January’s final settlement price last year in 2025.
- PJM Reports Preliminary Winter Storm Fern Results; Significant Uplift Charges - At the 2/5 Operating Committee meeting PJM reviewed the operations and market impacts of Winter Storm Fern and prolonged cold that hit the region between 1/23 - 2/2. The two highest peak days during this period were 1/29 (139,046 MW) and 1/30 (138,479 MW), both of which are in the top ten all-time PJM winter peaks. PJM secured 202(c) waivers from the Department of Energy to allow units to run above their permit limits. Thirty-nine units with an ICAP value of 5.2 GW ran a total of 1,035 hours above their permit limits under the exemption.
- PJM discussed issues with its load forecast, including one over-forecast of ~10GW, and noted that it needs to better understand the impacts of building and school closures on load. While gas production remained strong, spot gas prices through this event reached historic levels throughout the eastern U.S. with many hubs trading well over $100/MMBtu with prices in New York and New England approaching $300/MMBtu. Generator performance throughout the event was considered strong, with a generator outage rate of 13.26%, although generator performance included advance commitment of 50-60 GW throughout the week.
- Finally, PJM acknowledged that transmission outages impacted clearing prices. Day-Ahead Total Locational Marginal Price (LMP) peaked at $2,314.58/MWh while Real-Time Hourly LMP stayed below $1,000/MWh. PJM called pre-emergency Demand Response for BGE, DOM and PEPCO on 1/25 to preserve generation for later in the week. Localized congestion also peaked on 1/25 with 14 out of 18 active constraints bound at the $2,000/MWh penalty factor. PJM noted unit self-scheduling of between 68,632 MW and 53,008 MW per day. PJM noted that market rules currently under review in the stakeholder process address fuel certainty, unit forced outage risk and forecast error.
Great Lakes Electric Summary
- The Great Lakes Region’s forward power prices were lower over the past week, as the expectation of warmer temperatures started weighing on markets. Nymex natural gas futures lost ground on Friday as two-week forecasts offered little bullish support. U.S. natural gas futures fell by more than 8% on Monday as weather forecasts turned slightly warmer and most of the freeze-off production is back except for the Northeast. A trough in the West is bringing storms and cooler-than-normal conditions. This shifts the main ridge axis over the Mid-continent, where temperatures will average well above normal as milder Pacific air pushes out the cold air. The farther east you go, the less protection there is from the Mid-continent ridge. This means storms within the pattern can bring some colder days to the far north and Northeast. Forward power prices for the 2026-2030 terms, last week, were -2% lower overall, with a -7% decrease for the balance of 2026 and neither an increase or decrease for the 2028-2030 terms. The final, day-ahead settlement price average in COMED for January was $84.57/MWh, which is 85% higher than January’s final settlement price last year, while in AdHub the final price settled at $104.46/MWh for the month or was 85% higher year-over-year. In Michigan, those final settlement averages for January were $98.36/MWh or 98% higher than last year for the same month, while in Ameren the final index price averaged $92.81/MWh or was 95% higher than last year.
- PJM Reports Preliminary Winter Storm Fern Results; Significant Uplift Charges - At the 2/5 Operating Committee meeting PJM reviewed the operations and market impacts of Winter Storm Fern and prolonged cold that hit the region between 1/23 - 2/2. The two highest peak days during this period were 1/29 (139,046 MW) and 1/30 (138,479 MW), both of which are in the top ten all-time PJM winter peaks. PJM secured 202(c) waivers from the Department of Energy to allow units to run above their permit limits. Thirty-nine units with an ICAP value of 5.2 GW ran a total of 1,035 hours above their permit limits under the exemption.
- PJM discussed issues with its load forecast, including one over-forecast of ~10GW, and noted that it needs to better understand the impacts of building and school closures on load. While gas production remained strong, spot gas prices through this event reached historic levels throughout the eastern U.S. with many hubs trading well over $100/MMBtu with prices in New York and New England approaching $300/MMBtu. Generator performance throughout the event was considered strong, with a generator outage rate of 13.26%, although generator performance included advance commitment of 50-60 GW throughout the week.
- Finally, PJM acknowledged that transmission outages impacted clearing prices. Day-Ahead Total Locational Marginal Price (LMP) peaked at $2,314.58/MWh while Real-Time Hourly LMP stayed below $1,000/MWh. PJM called pre-emergency Demand Response for BGE, DOM and PEPCO on 1/25 to preserve generation for later in the week. Localized congestion also peaked on 1/25 with 14 out of 18 active constraints bound at the $2,000/MWh penalty factor. PJM noted unit self-scheduling of between 68,632 MW and 53,008 MW per day. PJM noted that market rules currently under review in the stakeholder process address fuel certainty, unit forced outage risk and forecast error.
Northeast Energy Summary
- Temperatures averaged 14⁰ below normal for the last 9 days of January, and the ISO noted managing the system during this period has been the most challenging since the winter of 2017-18. Daily system peak load (~18.5GW, on average) abated somewhat relative to last week (~19.5GW), both are above normal (and not seen at these levels since winter of 2017-2018) but within 1.4% of forecast. Real-time Operating Reserve margins remain comfortably surplus. Between 1/24 and 2/1, energy from oil-fired and gas-fired generation each accounted for ~28% of all energy, with nuclear, imports, renewables and hydro contributing 19%, 11%, 9%, and 5% respectively. For this same period, total fuel oil burned was ~66 million gallons, exceeding by over 15 million gallons that used in the previous four winters. On 1/30, the DOE approved a two-week extension of the 202(c) waiver of environmental limits (now through 2/14). As of 2/1, there are 57 units on waiver request, with 21 reporting emission exceedances.
- Prices have abated and steadied. The ISO reports that the monthly energy market value in January was ~$2.3 billion (the highest in over a decade), and that the daily energy market value on 1/27 (~$422 million) was approximately two and one-half times higher than the previous high (~$170 million on 1/23/14). Forecasted Energy Requirement (FER) prices have likewise moderated this week compared to last week, and for January ISO reports FER credits were 15% of total DA E&AS market value. In summary, the system appears to be holding up well (albeit expensive) as we pass through this extended cold snap.
- Net energy imports from Canada have resumed. NECEC has been importing ~1.1 GW around the clock since 2/1, while Phase II has varied between ~300-1,200 MW. When NECEC is injecting energy, there is oftentimes significant congestion pricing in Maine ($200+/MWh) not seen prior to NECEC’s 1/16 in-service date.
- In an uncharacteristic move ISO-NE added two new items to its 2026 work plan which is typically difficult to revise once set: 1) Modifications to Pay-for-Performance (PfP). The FERC recently issued a compliance order in response to the New England Power Generators Association’s Section 206 complaint, arguing among other things, the Balancing Ratio during a PfP event should be capped at 1.0. This prevents resources from being charged penalties for not delivering more than 100% of their obligated amount. The ISO also pledged to address a loophole that unfairly benefits exports during a PfP event (a 2024 External Market Monitor recommendation) as well as examine lowering the PfP rate (currently $9,337/MWh). ISO must make a compliance fining by 7/21. 2) Modifications to Day-Ahead Ancillary Services (DASI). The ISO will also be addressing the IMM’s recommended modifications to DASI (released 2/4). The IMM made three recommendations: 1) increase the strike price, 2) reduce the Forecast Energy Requirement (FER) constraint, and 3) reduce or eliminate the reserve non-performance factor (i.e., the bias that increases the reserve requirements). Each of these recommendations will be discussed with stakeholders in detail beginning in April, with a targeted effective date by end of year.
- U.S. district judge ruled in favor of the Sunrise Wind project, rejecting the Trump administration’s national‑security rationale for halting construction. Sunrise Wind - an Ørsted‑developed, 924‑MW offshore wind project off New York’s coast - successfully argued that the stop‑work order was unsupported and financially damaging, with potential losses exceeding $8 billion if delays continued. Ørsted plans to resume work immediately following the ruling. The case unfolds against the backdrop of a politically charged energy debate in New York, where Republican gubernatorial candidate Bruce Blakeman has attacked Governor Kathy Hochul over rising energy costs, linking them to state climate policies and utility surcharges. While energy prices have been driven in part by infrastructure investments and elevated fossil fuel costs, climate‑policy‑related charges account for roughly 9.5% of a typical National Grid residential bill. Hochul has emphasized affordability and reliability, signaling openness to modifying aspects of the state’s 2019 climate law and utility rate‑setting processes. The governor continues to support offshore wind, contrasting sharply with Blakeman’s “all‑of‑the‑above” critique and Trump’s assertion that wind energy is a “scam.” All paused offshore wind projects have now secured court victories enabling construction to restart, underscoring the tension between federal actions and New York’s clean‑energy ambitions.
ERCOT Energy Summary
- Well, winter lasted about a week in Texas as we had predicted, the cold front would more center on the Eastern seaboard. Texas saw daytime highs in the upper 60’s to low 70’s ushering in an early Spring Break. Overnight lows were in the upper 30’s to mid-40’s F.
- Nationally, there was a loss in weather-related demand over the weekend, but the overall pattern ideas did not change significantly. A trough in the West is bringing storms and cooler-than-normal conditions. This shifts the main ridge axis over the Mid-continent, where temperatures will average well above normal as milder Pacific air pushes out the cold air. The farther east you go, the less protection there is from the Mid-continent ridge. This means storms within the pattern can bring some colder days to the far north and Northeast.
- Looking at Texas, the Spring Break theme will continue this week and next. This week, a trough over the West Coast has pushed the main ridge axis across the middle third of the nation. This means Texas will experience a prolonged stretch of warmer weather. Although there will be some variability, the absence of cold air means that even the cooler days remain above normal, while the warmer days are much and strong above normal.
- The forward calendar strips week over week and month over month basis were the following:
Source: ERCOT
ERCOT Real Time Prices
Source: ERCOT
- Prices have been subdued with the warm up in temperatures after Winter Storm Fern as Real Time LMP prices settled at $19-21/MWh last week for the North, South and Houston Zones while some congestion in the West pushed the weekly average up to $31/MWh.
Recent Solar, Wind and Battery Milestones:
- ERCOT set a new record for maximum solar output of 30.15 GW on Feb 6th at 10 am CT. On January 25th, ERCOT set a new preliminary gas fired generation level of 50.8 GW. On December 23rd, maximum power storage reached a new record of 9,720 MW at 5:20 PM CT, up from 4,568 MW back in the beginning of 2025.
- Wind peaked at 28,470 MW on March 3rd. The combined renewables record was set last week on June 21st at 12:55 CT with 47,040 MW vs load of 73,320 MW or 64% of ERCOT load.
Generator Outages:
- Last week generation outages dropped from ~13 GW on Feb 4th to 9-10 GW on February 5th and held steady there last week.
https://www.gridstatus.io/graph/ercot-outages?iso=ercot&outageType=thermal
Source: ERCOT & Grid Status
TX Legislature, PUCT & ERCOT News:
ERCOT News: Large Load Proposed Batch Process
ERCOT Batch Study Presentation:
In late January, ERCOT presented a second update to the Public Utility Commission of Texas (PUCT) regarding the development of the Large Load Batch Study process. ERCOT is seeking to use a phased “batch process” for transmission interconnection studies to address a surge in large-load requests. The existing "single-project" evaluation system has been overwhelmed by the need to restudy projects to accommodate newly proposed large loads. Ultimately, the batch approach aims to speed up grid connections and provide certainty to developers by grouping requests to analyze cumulative transmission impacts for qualifying projects simultaneously rather than requiring repeated, individual restudies.
As an interim step ERCOT has proposed utilizing multiple “Batches” with different qualification criteria to clear out the backlog. Initially, ERCOT is planning to use a “Batch Zero” in two phases, “Batch Zero Phase A” and “Batch Zero Phase B”. Although the entry criteria for Batch A is shown as TBD in this filing, ERCOT explained that Phase A would likely be for those projects that are near the finish line and want to be energized early next year. The “Intermediate agreement” requirements, which are still pending, from Project 58481 rule is a part of the entry criteria for Phase B and the only entry criteria for ongoing batch studies. ERCOT is planning explain in more detail its proposed draft criteria at a Batch Study Process for Large Load Interconnections Workshop scheduled for 2/3. ERCOT plans to gather stakeholder feedback at the 2/3 workshop. ERCOT will have a subsequent workshop on 2/12 before submitting the refined proposal proposed on 2/13 for the Commission to review and present it to the Commission for discussion at the Open Meeting on 2/20. The project timeline for batch studies to get implemented by this time next year (Feb 2027) is listed below.
Source: ERCOT
At its 1/9 open meeting, the Public Utility Commission of Texas (PUCT) adopted large load forecasting criteria as directed by Senate Bill 6. As its open meeting this week, the PUCT adopted a staff proposal to change that criteria to address concerns regarding ERCOT’s ability to modify Distribution Service Provider (DSP)-provided load data without Commission approval. Under the prior language, ERCOT could adjust DSP-provided load data provided without Commission approval if the change corrected errors or reflected a withdrawal. The revised language now require DSP agreement for any adjustment. If the DSP does not agree with ERCOT's proposed change, ERCOT must request Commission approval at an open meeting and provide detailed, specific reasoning behind the adjustment. These changes to not affect other elements of the PUCT’s load forecasting rule that requires disclosure of duplicate interconnection requests, demonstration of site control, submission of a load ramping schedule, and evidence of financial commitment. In addition, ERCOT remains obligated to produce an annual assessment comparing forecasted and actual load outcomes and recommending improvements.
CAISO, Desert Southwest and Pacific Northwest Energy Summary
- Warmth will linger across California and the Southwest to start the week before the pattern becomes more unsettled towards the middle of the week with an increase in storminess to the region. The pattern then looks to turn colder towards the end of this week and into the weekend as a trough digs into the left side of the map. Temperatures don't look all that extreme but will be below normal. Colder than normal temperatures are expected to persist into next week along with a very stormy pattern, mostly into NorCal and the Pacific NW. Overnight lows in the 40s will be common for California, which after the recent few weeks of much above level temperatures, will feel downright frigid. Bottom line, sadly the very warm start to February will come to an end this week for much of the West as the pattern turns colder and stormier heading into the back half of the month. One upside could be found in the chances that the upcoming precipitation arrives in the form of snowpack which may provide some relief to the underperformance of the West water year to date.
- SoCalGas is facing operational constraints in their North Zone due to the Line 225 force majeure notice from a few months back. SoCalGas stated the assessment and exploration period will be coming to an end in March and the work to fix the damaged pipe will begin in April and is expected to take months. The near-term impact from this news should be minimal given the grid has been able to handle the outage up to this point and we are headed towards a period on the grid where renewables alleviate the need for thermal gen and batteries further lighten the load. We still need to get through the upcoming colder weather, but for now nothing taxing appears headed in this direction. The days where High operational flow orders (OFOs) are in play within PG&E’s gas grid are going to be a common theme this spring given the natural gas demand outlook tied to power burns and other consumption components. An example of this was seen last week when PG&E was starting to let the High OFO notices fly. Given the small volume of gas withdrawn from storage this season, tolerances for system balancing are small.
- Also indicative of what is likely to be seen this spring, congestion was a common theme in the day ahead settlements on the CAISO last week as solar production was high which drove midday prices in SP15 well under those seen in NP15 for the same period. Fortunately for SoCalGas, this helps with system balancing given their constraints in the North Zone noted above; day ahead index buyers will rejoice as the peak solar hours clear below the $0 MWh waterline. We need to get through the near-term change in the forecast towards colder temps later in the week, which see the morning ramp period become the period of most price escalation.
LevelTen Energy Snapshot Graphs and Commentary
LevelTen Energy’s snapshot on U.S. and EU Power Purchasing Agreement (PPA) pricing is below. For more information on LevelTen please visit www.leveltenenergy.com.
Policy Landscape – U.S. Sustainability Matters
- Federal Focus on Cybersecurity and Infrastructure: The extension of the Cybersecurity Information Sharing Act (CISA 2015) aims to protect state and local entities with cyber grant programs, indirectly supporting sustainable, resilient infrastructure.
- House Committee Advances Energy Security Bills: Legislation targets protection of critical energy infrastructure from cyber threats, extreme weather, and physical attacks, supporting the sustainability of energy systems amid rising demand due to AI, data centers, and electrification.
- FERC's Streamlined Permitting & Data Center Strategy: FERC is accelerating interconnection timelines and approvals to meet increased demand from large loads, particularly AI-driven data centers. These efforts aim to balance reliability, affordability, and environmental considerations, including changes to National Environmental Policy Act (NEPA) review processes.
- NERC CEO Outreach on Large Loads: NERC is actively engaging industry CEOs to discuss integrating emerging large loads—such as data centers—onto the grid. The Large Loads Task Force and Level 2 Alert initiatives focus on reliability, modeling, and sustainability impacts of these facilities, which can exceed 1 GW in size.
- PJM Stakeholder Support for Capacity Auction Price Collar: Many stakeholders, including environmental and public-interest groups, advocate for extending the price cap to prevent market volatility and support affordability during transitions to more sustainable energy resources. Concerns focus on ensuring new generation is incentivized without excessive price increases.
- New Jersey BPU Accelerates Renewable & DER Integration: The Board of Public Utilities is seeking ways to improve regulations for faster interconnection of renewables and distributed energy resources (DERs), including upgrades to hosting capacity maps and constrained circuits—directly supporting grid sustainability and clean energy growth.
- Connecticut DEEP Zero-Carbon RFP: Connecticut’s Department of Energy and Environmental Protection has issued a procurement for new and existing zero-carbon electricity resources. The RFP targets greenhouse gas reduction and a fully zero-carbon electric sector by 2040, emphasizing reliability, affordability, and long-term sustainability. Connecticut is collaborating with other New England states to select projects that meet these goals.
- Sunrise Wind Project Resumes Construction: Offshore wind development in New York, enabled by court rulings, supports the state’s clean energy ambitions and sustainability goals, despite political challenges and debates over affordability and reliability.
- ISO-NE Cold Snap Response and Work Plan: ISO New England’s response to extreme cold, including reliance on oil and gas-fired generation, highlights the ongoing need for sustainable energy solutions. They have also introduced
Policy Landscape for Renewable Power
In 2026, affordability and reliability continue to be a key focus at the state-level while environmental standards and EPA rollbacks are a challenge at the national-level. The Department of Energy continues to cancel and revise clean energy loans from the previous administration. In Texas, regulators approved new firming requirements that will apply to post-2027 interconnections, therefore increasing development and compliance obligations for new wind and solar resources.
January 23, 2026: Lawsuits target EPA rollback of coal plant water pollution standards
- Two separate lawsuits were filed against the EPA this month by the Center for Biological Diversity and a coalition by the Southern Environmental Law Center (SELC). Both lawsuits aimed to “stop the Environmental Protection Agency from weakening standards that limit water pollution, including the release of mercury, selenium and arsenic, from coal-fired power plants.”
- Water pollutants from coal-fired power plants are regulated under the Clean Water Act through effluent limitation guidelines. In December 2025, the EPA issued a final rule “extending compliance deadlines for effluent limitations as much as five years, until December 31, 2034,” claiming that the extension was necessary in order “to affordably meet the nation’s rising electricity demand, including for data centers and manufacturing.”
- The EPA’s December 2025 rollback follows a 2024 rule aimed at bringing “nearly all power plants into full compliance with the Act no later than 2029 or required retirement of coal plants that could not meet the standards of the Act.” The 2024 ruling would have required coal-fired power plants to “use the most modern and effective pollution control technology available before discharging toxic wastewater.”
January 22, 2026: Energy Department Reins in Over $83 Billion in Biden‑Era Loans
- The U.S. Department of Energy announced that the Office of Energy Dominance Financing (EDF) is restructuring, revising, or eliminating more than $83 billion in loans and conditional commitments issued under the Biden administration. This follows a first‑year review of roughly $104 billion in principal loan obligations, including about $85 billion that had been rushed out in the final months after Election Day.
- EDF has eliminated around $9.5 billion in government‑subsidized wind and solar projects, replacing them with financing for natural gas and nuclear uprates aimed at providing more affordable and reliable energy.
- In total, nearly $30 billion is being de‑obligated, with another $53 billion under revision; the office retains more than $289 billion in available loan authority.
January 21, 2026: New Jersey governor orders state to accelerate solar, storage and virtual power plants
- New Jersey Gov. Mikie Sherrill issued executive orders aimed at lowering rising electric rates by expanding in‑state power generation and accelerating clean‑energy deployment.
- To ensure ratepayer relief, residential customers will again receive bill credits similar to the $100 credits issued in 2025, funded through comparable mechanisms to last year’s bill assistance.
- The orders require the NJ Board of Public Utilities (BPU) to rapidly launch new solicitations for solar projects, community solar (3 GW), and grid‑scale storage, with aggressive 45‑ to 90‑day timelines.
- Regulators must also begin developing a statewide virtual power plant program within 180 days to reduce peak demand and enhance reliability.
- Utilities and clean‑energy advocates responded positively, emphasizing the need for grid reliability, expanded resources, and the benefits of solar and storage in lowering costs.
December 18, 2025: The Public Utility Commission of Texas (PUCT) Finalizes Firming Requirements Under HB 1500
- The PUCT approved a final order implementing firming requirements for generation resources interconnecting on or after January 1, 2027, requiring non-firm resources to build onsite firming or secure bilateral agreements with eligible resources.
- ERCOT will assign each covered generator a Seasonal Average Generation Capability (SAGC) ahead of each season, with compliance measured during low operation reserve hours when Physical Responsive Capability falls below 3,000 MW, and penalties and incentives settled after the season.
- The requirements exclude existing generators and capacity additions at existing facilities, and allow firming from generation, storage, distributed resources, or load, directing compliance obligations primarily to new resources entering the interconnection queue.
- The firming requirements will affect new wind and solar resources, which may need to secure additional capital investments or contractual arrangements for firming as part of project development and interconnection planning.
Sustainability Corner- Information on Sustainability Concepts
EPA Hosts Roundtable Discussion with Data Center Coalition on Clean Air Resources and Energy Reliability
EPA representatives emphasized the importance of aligning data center growth with the Clean Air Act, noting that new facilities must appropriately manage emissions, secure required permits, and address localized air quality considerations. Officials also acknowledged community concerns related to air emissions, electricity use, land impacts, and noise, and highlighted the agency’s commitment to increased transparency and engagement with state, Tribal, and local stakeholders.
During the session, the Office of Air and Radiation (OAR) introduced its new Clean Air Act Resources for Data Centers webpage. The site consolidates guidance, modeling tools, and regulatory interpretations to help developers navigate the permitting process more efficiently. OAR also previewed upcoming permitting reform efforts aimed at reducing delays and administrative burdens while maintaining public health protections.
The EPA’s Office of Water underscored the importance of water availability and management in data center operations, particularly in relation to cooling technologies. The office expressed interest in further collaboration with industry partners to support sustainable water use.
The roundtable was framed within the context of the national AI strategy and the Administration’s priorities around innovation, infrastructure, and competitiveness. Overall, the discussion reflected EPA’s intent to support data center deployment through clearer guidance, improved interagency coordination, and more streamlined processes, while maintaining protections for air quality, water resources, and surrounding communities.
For questions on these items and more please reach out to SustainabilityTeam@Constellation.com and your inquiry will be directed to an inhouse expert.
Stay up-to-date on the latest energy news and information:
Coming soon from Constellation Customer Insights: Help us provide you with greater service by completing our online study later this month. For a limited time, eligible customers can choose to accept an incentive for taking the time to provide feedback.
- Energy Market Intel Webinar - Register for our next market update webinar on Wednesday, February 25 at 2 p.m. ET when the CMG team will provide insights on market factors currently affecting energy prices, such as weather, gas storage and production, and domestic and global economic conditions.
- Fortunato & Friends Webcast - Stay tuned for information regarding our next Fortunato & Friends webinar featuring Constellation's Chief Economist and a special guest
- Energy Terms to Know - Learn important power, gas and weather terms.
- Sustainability Assessment - We invite you to complete a brief assessment that helps us learn where your company is in building and/or implementing a sustainability plan. Through these insights, Constellation can customize solutions to meet your needs.
- Subscription Center - Sign up to receive updates on the latest market trends.
Questions? Please reach out to our Commodities Management Group at CMG@constellation.com.