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Welcome to our second issue of Currents 2025, our energy e-newsletter. Before we dive into the energy issues we focused on in this edition, we have a few announcements and events to pass along.
ANNOUNCEMENTS
Please join us in welcoming James T. Taylor to the firm. James serves as Counsel in the Roanoke, Virginia office. His primary area of practice is litigation, with a focus on civil matters. He has extensive experience defending employers in complex issues and defending business clients against various allegations, including fraud, conversion, breach of contract, negligence, tort claims, and breach of fiduciary duty, among others.
Derrick Price Williamson recently was honored with the Clarence C. Morrison Equal Professional Opportunity Award by the Dauphin County Bar Association (DCBA). The Morrison Award is bestowed annually on a single outstanding member of the DCBA. Each honoree must meet the standard of “significant contribution” to the advancement of equal professional opportunity in the local bar and community. Congratulations to Derrick!
Congratulations to Steven Hemric for being recognized by the North Carolina Super Lawyers as a member of their “Rising Stars” group. Steven practices in North Carolina and South Carolina with a focus on advising construction industry clients across all project stages, from bidding and contract negotiation through resolution of jobsite disputes and litigation.
EVENTS - SPONSORING, PRESENTING AND ATTENDING
2025 West Virginia Economic Development Council's Legislative Conference, February 25-26, Charleston, WV
The 2025 WVEDC Legislative Conference includes educational sessions covering relevant economic development topics facing economic developers practicing in the State of West Virginia. Click here to learn more.
The North Carolina State Construction Conference, March 6, Raleigh, NC
This conference is one of North Carolina’s preeminent educational and networking events for construction professionals. The conference brings together key stakeholders in planning, design, and construction from state agencies and institutions to discuss the state’s capital improvement program and mutual concerns about the costly and complex process. Click here to learn more.
DRI Construction Law Seminar, March 17-19, Philadelphia, PA
Navigating the ever-evolving litigation landscape is a thrilling challenge for both new attorneys and seasoned veterans. As technology advances and construction practices improve nationwide, fresh obstacles arise for insurance companies, lawyers, and clients alike. Join us as we dive into innovative strategies and share invaluable insights to propel the defense construction practice into 2025. Click here to learn more.
ABA Employment Rights and Responsibilities Committee Midwinter Meeting, March 17-22, Puerto Vallarta, Mexico
Join us for the ABA Employment Rights and Responsibilities (ERR) Committee Midwinter Meeting and National Symposium on Technology in Labor and Employment Law, which is presented by the Technology in the Practice and Workplace Committee. Click here to learn more.
2025 ABA National Conference on Equal Employment Opportunity Law, March 25-29, San Francisco, CA
This event promises to be the premier destination for employment attorneys seeking to stay ahead of the curve on cutting-edge employment law issues. Click here to learn more.
West Virginia Coal Association's Annual Mining Symposium, April 15-16, Charleston, WV
This year’s Symposium is cosponsored by the West Virginia Coal Mining Institute and will feature a lineup of excellent speakers and timely topics geared toward all mining professionals. The Symposium will also feature the Annual Mountaineer Guardian Safety Awards and Environmental Excellence Awards Luncheons and Hall of Fame Induction Ceremony. Click here to learn more.
Again, thank you for reading!
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Barry A. Naum
Chief Content Editor, Currents
Member, Co-Chair of Utility Law Group
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Energy Demand Rises with Growth of Data Centers | |
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By Steven W. Lee
In recent years, significantly higher electricity demands have been forecasted with the growth of large-load data centers, driven primarily by the development of artificial intelligence. The projected growth of data centers has caused utilities and states to grapple with important questions for all electricity consumers: who bears the cost burden for the infrastructure and new generation necessary to support new large-load customers, and how will enough generation be built in time to support the rapid growth?
Click here to read the entire article.
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“After more than 140 years together, Chevron dumped California via text, in a split fueled by snubs, insults, accusations and the lure of a new partner.”
Why this is important: The departure of Chevron's headquarters from California after more than 140 years signals a deepening rift between the nation's most populous state and its fossil fuel industry. This split, driven by California's aggressive climate policies and the company's resistance to rapid energy transition, could reshape both the state's energy landscape and its economy.
California's relationship with Chevron began in 1876 when wildcatters drilled the state's first successful oil well north of Los Angeles. The discovery launched Chevron and helped power California's economy for over a century. Chevron’s move from the Golden State follows other corporate giants such as Tesla, SpaceX, and Oracle.
Chevron’s exit can likely be explained by the state's increasingly stringent environmental regulations. California has banned the sale of new gasoline-powered cars by 2035 and now requires refiners to maintain specific fuel storage levels to prevent price spikes. Electric vehicles account for more than 25 percent of new car sales in the state. Industry analysts note that these policies, combined with higher operating costs, have contributed to the closure of 26 refineries since 1983, leaving just 14 operating today.
For California, the stakes extend beyond losing Chevron's headquarters. The company operates two of the state's largest refineries, representing a third of California's gasoline production capacity. Any decision to cease or reduce operations could further increase prices in a state that already has the second-highest gas prices in the nation after Hawaii.
Ultimately, the Chevron-California divorce raises challenging questions about balancing aggressive climate action with economic stability. The debate continues as California pursues its clean energy goals while grappling with the practical implications of pushing out its largest energy producer. --- Hikmat N. Al-Chami
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“Following President Donald Trump’s recently imposed tariffs on imports from China, China retaliated with a range of tariffs, including a 15% tariff on coal and liquefied natural gas imports from the U.S.”
Why this is important: West Virginia state government continues to watch the new tariffs imposed on China for their impact on state revenue. In the past three years, state revenue from severance taxes on energy sales has dropped dramatically from $1.18 billion to approximately $400 million last year. The cause for the revenue drop has been decreasing sales prices for gas and coal.
Last month, after President Trump imposed U.S. tariffs on imports from China, China increased its tariffs for U.S. coal sold to China by 15 percent.
That tariff increase is likely to cause a decrease in the approximately 5 million tons of West Virginia metallurgical coal currently exported to China. Those sales would likely switch to Australia. Ironically, West Virginia tax revenue benefited from increases in metallurgical coal sales in the early 2020s when China would not buy Australian met coal after Australia blamed China for causing the COVID-19 epidemic. That switch in markets led to record high prices for U.S. met exports to China and strong state tax revenues for West Virginia. --- Mark E. Heath
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“The Nature Conservancy and the Cumberland Forest Limited Partnership have announced agreements with Sun Tribe Development and ENGIE to develop 14 solar energy and three battery storage projects on 360 acres of former coal mines in the Appalachians.”
Why this is important: The article summarizes concerted efforts by The Nature Conservancy (TNC) to dovetail renewable energy development with coal mine reclamation. In pertinent part, TNC has announced agreements to build 17 solar and battery storage projects on a collective 360 acres of former coal mines in the Appalachians, with a projection of producing 49 MW of solar power and 320 MW of utility scale battery storage. The targeted design to coordinate such development on closed coal mines seeks to enhance development in rural communities, add to tax revenues, and provide local construction and long-term jobs. This is important as an emblem of pursuing an all options on the table energy production strategy that also benefits rural, low-income areas in Appalachia. --- Derrick Price Williamson
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“Developers plan to add even more solar, wind, and battery storage capacity in 2025, but the Trump administration isn’t making that easy.”
Why this is important: The United States saw unprecedented growth in the renewable energy sector last year. The country added 47 percent more capacity in 2024 than in 2023. The decline in technology costs within the sector, coupled with tax incentives provided by the Inflation Reduction Act, has been a significant driver of growth in the clean energy industry. Solar energy emerged as the leading contributor to clean energy growth, setting a new record for installed capacity in the United States last year. Texas led the nation in new solar installations, followed by Florida and California. Non-renewable energy sources still generated around 60 percent of the United States’ electricity last year.
Continuing the upward trajectory of clean energy will largely depend on the Trump administration. Clean energy projects nationwide have faced delays, and the potential revocation of tax credits has diminished confidence in the continued expansion of the sector. Wind energy has especially taken a hit. Wind energy has struggled previously due to the lack of long-distance transmission lines, which make it difficult to transport the generated energy. Statements like “no new windmills” and supply chain issues can damage the wind energy sector even more.
Regulatory compliance challenges are emerging as changes to federal tax credits and incentives create uncertainty for ongoing and future projects. The potential revocation of previously authorized funding raises legal questions about government authority and contractual obligations, potentially leading to litigation. Additionally, changes in permitting requirements and land use regulations could impact project timelines and development, necessitating legal scrutiny. Contract renegotiations may also become necessary as businesses adapt to shifting financial incentives and regulatory frameworks. Furthermore, investment risks are increasing due to policy instability, requiring careful legal assessment to ensure compliance with evolving regulations. As the legal landscape continues to change, addressing these issues will be essential for maintaining momentum in the clean energy sector. Only time will tell what is in store for the clean energy industry. --- Nicholas A. Muto
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“Governor Josh Shapiro announced he has reached an agreement with PJM Interconnection on a plan to resolve his recent lawsuit and to save consumers more than $21 billion over the next two years.”
Why this is important: Governor Shapiro’s lawsuit may prove to be a deft political move, as it has resulted in a settlement that mitigates some of the impact of the recent PJM capacity price cap rule change. These efforts are certainly a positive development for PJM states and their consumers by mitigating the impacts of the otherwise portended 800+ percent cap increase. But even at the agreed capacity price cap resolution, the costs in PJM for generation will still be at record-level highs. Despite the good news, this issue will remain on the forefront for PJM states. --- Barry A. Naum
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“Historically, with solar development, you want to find land that is not expensive, is preferably already cleared and doesn’t have a mountain in the middle of it.”
Why this is important:
North Carolina is one of many states with a carbon emission reduction target, with a 70% reduction by 2030, and a plan to reach carbon neutrality by 2050. In fact, North Carolina’s legislature passed the “Carbon Plan Statute”, N.C. Gen. Stat. Sec. 62-110.9, also known as “House Bill 951,” that was signed into law in 2021. In an effort to meet these reduced carbon emission goals, the state’s primary utilities are investing in a substantial commitment to increased solar development, which is part of each Carbon Plan portfolio put forth by Duke Energy. Duke Energy’s updated Carbon Plan will be released by September 1, 2025.
Private development of solar facilities is also increasing. For example, as this article explains, SAS Institute in Cary, NC, and RTI International in Research Triangle Park, NC, have both installed solar on their corporate campuses to serve at least a portion of their respective electricity needs. One challenge that some companies locating in North Carolina who have seemingly competing needs for decarbonization and increased electricity usage may have is locating land for further solar development. The interview between State of Change producer Michelle Lotker and Steve Kalland, executive director of NC State’s NC Clean Energy Technology Center, explores how solar can pair with agriculture to meet increasing clean energy goals and needs. While traditional land-lease agreements may provide income for farmers who install solar systems on their property, as solar demand has increased, a new type of solar development has emerged: agrivoltaics. The intent for agrivoltaics is to merge agricultural development and solar development in ways that maximize the benefits for both sectors. With input from The Nature Conservancy and NC Wildlife Federation, discussions related to how to develop pollinator habitats around solar modules, the use of grazing animals to maintain vegetation around solar panels, and the use of either raised solar modules to allow crops underneath or the use of panels on trackers that allow them to be moved when farm equipment needs to pass through the field. In light of the large amount of agricultural land in North Carolina, further development of agrivoltaics, and increased pairing of solar with battery storage, could certainly help the state go “clean” by 2050. --- Stephanie U. Eaton
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“The first of three offshore substations for the Coastal Virginia Offshore Wind (CVOW) project has arrived at the Portsmouth Marine Terminal in the US.”
“The utility now plans to spend $10.7 billion on the Coastal Virginia Offshore Wind project, up from $9.8 billion in 2021.”
Why this is important: Work is progressing on Dominion Energy Virginia’s offshore wind project known as the Coastal Virginia Offshore Wind (CVOW), which is located off the coast of Virginia. In December 2024, the first of three offshore wind substations were delivered to the Portsmouth Marine Terminal in eastern Virginia. The project is currently approximately 50 percent completed, is proceeding on time, and construction is expected to be completed by the end of 2026. When complete, CVOW is expected to provide 2.6 GW of clean, carbon-free energy, enough to power approximately 660,000 homes.
Of particular note, we recently learned through a Dominion press release as mentioned in the NPR article that the projected total costs of CVOW have increased from the $9.8 billion as estimated in 2021 to $10.7 billion (a nearly 10 percent increase) due primarily to higher network upgrade costs as assigned by PJM, the regional electric grid operator. Fortunately, due to a stipulation negotiated by groups representing customer interests, including Walmart, the Virginia Attorney General, Appalachian Voices, and Sierra Club, the full extent of these cost increases will not be borne by customers. Instead, these cost overruns – up to $11.3 billion – are shared 50/50 between customers and Dominion. Additional customer protections kick in if the costs of CVOW exceed $11.3 billion. For project costs between $11.3 billion and $13.7 billion, Dominion would bear the full responsibility for those cost increases.
While Dominion does not currently anticipate any issues with bringing CVOW online since it is a fully permitted project, the Trump administration has issued directives that (1) pause any further permitting and leasing of offshore wind projects; and (2) require federal officials to study whether existing leases should be amended or terminated. Dominion also has two additional leases under development, thus, it remains to be seen whether these leases will be impacted by the Trump administration. There is also a lawsuit by environmental groups against CVOW due to the potential impact on marine life. --- Carrie H. Grundmann
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“U.S. exports of coal have been rising steadily to satisfy growing global demand for the world’s dirtiest fossil fuel, even though its domestic consumption has decreased.”
Why this is important: Despite concerns over global warming, the use of coal worldwide continues to greatly increase. The amount of coal-fired electricity has more than doubled since 2000 to 2.175 GW (gigawatts) in 2024. Worldwide demand for coal is expected to total 8.77 billion tons a year from 2024 through 2027, led by increased electrical demand in China, Vietnam, India and other developing countries. China imported 542 million tons of coal last year to increase its stockpiles for weather events and other surges in electrical demand. Hydropower, wind and solar now produce 40 percent of China’s electricity, but coal is a backup for all three when renewable generation lags, such as droughts that diminish hydropower. In India, increasing worldwide temperatures are requiring more coal to provide cooling and the demand for Artificial Intelligence is surging electrical demand in many countries, including the U.S. --- Mark E. Heath
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“The group ‘No TMI Restart’ plans to urge commissioners not to cooperate with Constellation Energy's evacuation plan to prevent the plant's restart.”
Why this is important: The proposed restart of Three Mile Island's (TMI) Unit 1 reactor is moving ahead on schedule, with Constellation Energy making significant progress in hiring and facility preparations. The project represents a complex intersection of Big Tech's growing energy needs, the push for carbon-free power, and lingering public anxiety over nuclear safety at the site of America's worst commercial nuclear accident.
Constellation Energy reports they have already hired 200 of the roughly 600 full-time employees who will work at the newly renamed Crane Clean Energy Center. Dave Marcheskie, community relations manager, notes many employees are returning to the facility after being transferred elsewhere. "They had jobs at other sites, but they wanted to move back to the area... and grow their family here," he said.
The project has faced opposition from local activists like Gene Stilp, director of "No TMI Restart," who argues that the project prioritizes corporate interests over community safety. His group has urged commissioners not to cooperate with Constellation Energy's evacuation plan. A key point of contention: the power generated won't serve local communities but instead will be transmitted to Microsoft facilities in Virginia through a 20-year power purchase agreement.
Multiple regulatory approvals must still be secured from agencies including the U.S. Nuclear Regulatory Commission, along with completion of environmental impact assessments, state and local permits, and license renewal through 2054, before the reactor can resume operations. A filing with the NRC indicates Constellation plans to target a re-opening by the end of the second quarter in 2027.
The restart effort will create thousands of construction jobs during the facility preparation process. The company plans significant upgrades to the plant's turbine, generator, main power transformer, and cooling and control systems.
This development comes against the backdrop of TMI's troubled history. In 1979, Unit 2 suffered a partial meltdown that fundamentally changed nuclear industry safety protocols and public perception. While Unit 2 remains permanently shuttered, supporters point to Unit 1's separate design and Constellation's "proven track record of safety and performance and excellence" as evidence of its viability as a power generation option. --- Hikmat N. Al-Chami
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“According to a release, Shapiro’s energy plan will create jobs, lower costs for consumers, protect Pennsylvania from global instability by building next generation power, and position the commonwealth to continue to be a national energy leader for decades to come.”
Why this is important: As with his actions to address PJM capacity price caps, Governor Shapiro’s announcement of an “all-of-the-above” approach for energy likely represents a positive development for the Commonwealth of Pennsylvania. It may also prove to be a critical shift in political winds from the last Pennsylvania administration by embracing energy solutions that were previously disfavored. At the same time, however, the announced “Lightning Plan” is not without holes. As noted by some critics, the potential presence of “carbon taxes” – a reference to the former administration’s efforts to bring Pennsylvania into the Regional Greenhous Gas Initiative (RGGI), which Governor Shapiro has also supported on appeal to the Pennsylvania Supreme Court – indicates a potentially significant inconsistency that many criticize as being contradictory to the overall announced policy goals. --- Barry A. Naum
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Court Lifts Injunction on Corporate Transparency Act – Most Companies Must File by March 21, 2025 | |
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By Brienne T. Marco and Joseph C. Unger
After months of litigation, the Corporate Transparency Act is once again effective, and most companies subject to the CTA are required to file Beneficial Ownership Information reports with the U.S. Treasury’s Financial Crimes Enforcement Network on or before March 21, 2025.
Click here to read the entire article.
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Here is a round-up of the latest statistics concerning the energy industry.
ELECTRICITY
PETROLEUM
NATURAL GAS
COAL
RENEWABLES
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