This Week in Energy

Every week, Stateside Associates will feature energy-related legislative, regulatory, and federal programs impacting state and local public policies and proceedings, including upcoming Groups events, activities, and conversations in This Week in Energy.

For more information on our Energy Practice, please contact Taylor Beis.

Generation

Wyoming’s LSO 112, prefiled on August 17, establishes an excise tax on the production of electricity from wind, solar, and nuclear generating resources in the state. The measure imposes the tax on each megawatt-hour of electricity produced at the point of interconnection, though facilities are exempt until three years after they first produce electricity for sale. The bill was prefiled ahead of the 2027 legislative session and is eligible for committee referral when the legislature convenes.

 

California’s AB 2476, introduced on February 20, eliminates the requirement that a pumped hydroelectric facility receive direct state funding appropriations before January 1, 2023, for the state to procure its resources. The measure also directs regulators to allow energy-only resources to satisfy procurement requirements to the maximum extent feasible to support clean energy deployment and grid reliability. The measure was amended and passed the Senate on August 18.

 

Affordability

There are no affordability updates for this week.

 

Large Load and Data Centers

Governor Shaprio’s Executive Order 2026-05, in Pennsylvania was signed on August 18. The order requires data center proposals applying for state permits to comply with the Governor’s Responsible Infrastructure Development (GRID) Requirements. The measure mandates that facilities with peak demand over 25 MW execute a specific consent agreement, bans non-disclosure agreements, and establishes strict annual energy and water reporting. It also directs state agencies to advocate for utility rules that protect regular consumers from infrastructure costs and ensure data centers are curtailed first during grid emergencies.

 

Electricity and Market Issues

Pennsylvania’s HB 2740 requires the Public Utilities Commission to use a mandatory capital structure of 50% equity and 50% debt for establishing rates, rates of return, and revenue calculations. The measure prohibits regulators from considering a utility's or parent company's actual capital structure, ordering that the 50/50 formula applies exclusively for ratemaking purposes. The bill was introduced and referred to the House Consumer Protection, Technology, and Utilities Committee on August 18.

 

The California Public Utilities Commission will hold an August 31 oral argument regarding updates to the Energy Resource Recovery Account and Power Charge Indifference Adjustment. The proceeding focuses preventing cost-shifting between bundled utility customers and departing load customers. Specifically, regulators will address how procurement costs and Renewable Energy Credits are valued to ensure fair rate distribution. 

 

Permitting and Siting

Montana’s Energy and Technology Interim Committee is scheduled to meet on September 9 to discuss draft legislation related to the electric grid. The agenda features reviews of SJ 12 and SJ 21, which propose studies on electric transmission capacity and interstate power grid development, respectively. The committee will also consider a separate measure aiming to establish grid utilization metrics.

GROUPS EVENTS

There are no upcoming energy-related Groups events.

For more information on upcoming events, contact Taylor Beis.