The Federal Energy Regulatory Commission should reject a call for a 90-day pause in its deliberations over the PJM Interconnection’s rules for colocating data centers at power plants, according to PJM, major utilities and other organizations. “The national interest will be best served by a quick dismissal of this proceeding, and a ruling that the existing PJM Tariff remains just and reasonable,” PJM transmission owners said in a Wednesday filing urging FERC to dismiss a call for stakeholder settlement talks. “Rather than fighting about a wish list of new rules, the parties will then instead begin to focus on obtaining service under the rules in place today.” The transmission owners include utility companies such as American Electric Power, Dominion Energy, Duke Energy, Exelon, FirstEnergy and PPL Electric. “The record is clear — no matter how connected to the PJM transmission system, large loads pose both a safety and a reliability concern,” the utilities said. “It is unrealistic to ask the [transmission owners] to accede to these demands in the context of settlement procedures while those questions remain unresolved.” PJM also wants FERC to ignore the call for settlement discussions that was made in late April by the Electric Power Supply Association, the PJM Power Providers Group, Calpine, Cogentrix Energy Power Management, Constellation Energy Generation and LS Power Development. “The Commission should not pause its work on offering the industry guidance on a path forward for co-location arrangements,” PJM said in a Monday filing. The call for settlement talks lacks broad stakeholder support, PJM said, noting it is holding a workshop on “large load” issues on Friday. American Municipal Power, a wholesale power provider for public power utilities, and Northern Virginia Electric Cooperative and Northeastern Rural Electric Membership Corp. also oppose holding settlement talks. Beside the power generators and trade organizations,

Dive Brief: The Inflation Reduction Act – which passed in 2022 without any Republican support and is anticipated to cost taxpayers between $780 billion and $2 trillion over its first ten years – is likely to be targeted for cuts as the Republican-controlled Congress aims to cut spending by $2 trillion in order to cut taxes by $4.5 trillion. However, certain provisions of the IRA have won support with Republican lawmakers, setting up likely disagreements over cuts in the budget reconciliation process. That process is already expected to be “very contentious,” said Harry Godfrey, who leads Advanced Energy United’s federal investment and manufacturing working group. “[House Ways and Means Committee Chairman Jason Smith] and the Ways and Means Republicans will need revenue and will be seeking it, and have been saying all along that the IRA is an area they’re going to look at,” said Ryan Abraham, a principal with Ernst & Young’s Washington Council advisory practice. “But obviously there are some concerns among some members.” Dive Insight: Abraham noted the May 1 letter sent by 26 House Republicans to Chairman Smith, advocating for the preservation of the IRA’s 45U, 45Y, and 48E tax credits. The letter advocates on behalf of nuclear power specifically, “[urging Smith] to maintain federal investment in the existing nuclear energy fleet while accelerating deployment of the next generation of nuclear power technologies.” The 45U credit is the IRA’s zero-emission nuclear power production credit, while 48E and 45Y are technology-neutral credits, which were targeted in legislation introduced in April by Rep. Julie Fedorchak, R-N.D. “There’s a lot of concern that some of the bonus items that have been created in the IRA, like direct pay and transferability, which were also in that Fedorchak bill, could also get targeted,” Abraham said. However, he said, “Chairman Smith is aware

WASHINGTON — The U.S. Department of Energy (DOE) today announced three new policy actions that are projected to save more than $935 million annually for the American taxpayer, while expanding American innovation and scientific research. In three new policy memorandums, the DOE announced that it will follow best practices used by fellow grant providers and limit “indirect costs” of DOE funding to 10% for state and local governments, 15% for non-profit organizations, and 15% for for-profit companies. The Energy Department expects to generate over $935 million in annual cost savings for the American people, delivering on President Trump’s commitment to bring greater transparency and efficiency to federal government spending. Estimated savings are based on applying the new policies to 2024 fiscal year spending. “This action ensures that Department of Energy funds are supporting state, local, for-profit and non-profit initiatives that make energy more affordable and secure for Americans, not funding administrative costs,” U.S. Secretary of Energy Chris Wright said. “By aligning our policy on indirect costs with industry standards, we are increasing accountability of taxpayer dollars and ensuring the American people are getting the greatest value possible from these DOE programs.” These policy actions follow an announcement made in April to limit financial support of “indirect costs” of DOE research funding at colleges and universities to 15%, saving an estimated additional $405 million annually. By enacting indirect cost limits, the Department aligns its practices with those common for other grant providers. The full three memorandums are available below: POLICY FLASH SUBJECT: Adjusting Department of Energy Financial Assistance Policy for State and Local Governments’ Financial Assistance Awards BACKGROUND: Pursuant to 5 U.S.C. 553(a)(2), the Department of Energy (“Department”) is updating its policy with respect to Department financial assistance funding awarded to state and local governments. Through its financial assistance programs (which include grants and cooperative agreements),

If Shell Plc were to acquire BP Plc, it would be among the largest deals in European history, creating for the first time a European oil major that could challenge industry leaders Exxon Mobil Corp. and Chevron Corp. The circumstances for such a takeover might not be auspicious for BP — its shares have lost almost a third of their value in the last year and investors are unconvinced by the company’s turnaround plan — but the deal would be transformative for Shell. Since Bloomberg reported that Shell has been studying the merits of an acquisition — something both companies have so far declined to comment on — analysts have been gaming out both the upsides and downsides. Here are some of their conclusions: Oil Behemoth Combining the two London-based oil majors would create an energy giant with upstream oil and gas production of nearly 5 million barrels of oil equivalent a day, according to UBS Group. This would be an 85% increase from Shell’s current output of about 2.7 million barrels a day, making the combined company the largest investor-owned oil and gas producer. Exxon produced an average of 4.6 million barrels of oil equivalent a day in the first quarter, while Chevron pumped 3.4 million a day.  Adding BPX, the Denver-based US shale unit, to Shell’s portfolio would go some way to correct the company’s decision to sell its business in the Permian basin to ConocoPhillips in 2021, just before the industry experienced a major boom. Shell’s then-upstream director, Wael Sawan, is now chief executive officer.  LNG Dominance  Shell is already the world’s largest seller of liquefied natural gas, and acquiring BP would propel the business “to new heights,” said RBC. The combined companies’ LNG sales would jump to more than 90 million tonnes a year, representing more than 20%

Devon Energy Corp. and Ridgemont Equity Partners are divesting their interests in a natural gas pipeline serving the Permian Basin with a capacity of about 2.5 billion cubic feet a day. Put onstream November 2024, the Matterhorn Express Pipeline is fully contracted. The system consists of a 510-mile mainline and associated compression that carries gas from the Waha area to Wharton, Texas. It also has delivery capabilities for Katy, Texas, as well as laterals in the Midland Basin, according to operator WhiteWater Development LLC. The stake sales by Devon and Ridgemont will result in WhiteWater, MPLX LP and Enbridge Inc. owning 65 percent, 10 percent and 10 percent of the pipeline respectively, according to a joint statement. “WhiteWater’s equity interest in the Matterhorn Express Pipeline will be jointly backed by [infrastructure investors] FIC and I Squared, and WhiteWater will continue to operate the Matterhorn Express Pipeline”, said the statement posted on WhiteWater’s website. The parties expect to complete the transactions in the second quarter. MPLX separately said its side of the transaction consists of a 5 percent acquisition that would raise its stake to 10 percent for a purchase price of $151 million. Devon separately said it will receive about $375 million in proceeds. “Proceeds from the divestiture will be used to further strengthen the company’s investment-grade financial position”, it said in its quarterly report. “The monetization of Devon’s equity ownership will not change the terms or conditions of the company’s secured capacity on the pipeline”. In a separate transaction, Devon said in the report its partnership with BPX for the Blackhawk field in the Eagle Ford shale had been dissolved. That dissolution has resulted in Devon owning around 46,000 net acres with a stake of 95 percent and operatorship. For the first quarter (Q1), Devon reported $494 million in net profit.

The UK and Norway have formalised a green industrial partnership focused on the energy transition amid a week of setbacks for Labour’s clean power goals. UK energy secretary Ed Miliband travelled to Oslo to sign the deal alongside Norway’s trade and industry minister Cecilie Myrseth and energy minister Terje Aasland. The two governments first announced the partnership in December last year, stating their ambition to cooperate on carbon capture and storage (CCS) projects. Alongside CCS, the partnership will also focus on hydrogen, offshore wind, sustainable energy systems, green supply chains and joint efforts on skills development. The UK government said it will also feature collaboration on the protection of UK and Norwegian offshore infrastructure and reducing barriers to cross-border CO2 storage. An independent report found that closer cooperation between the UK and Norway could create up to 51,000 jobs and add up to £36 billion to the UK economy. © Leon Neal/PA WirePrime Minister Sir Keir Starmer and Norwegian Prime Minister Jonas Gahr Store tour the Northern Lights CCUS Plant CO2 transport and storage facility in Bergen, during a trip to Norway. Image: Leon Neal/PA Wire The Norwegian government said the UK is the country’s second-largest trading partner after the EU, with total trade in 2024 coming to approximately £38bn. More than 200 Norwegian firms operate in the UK, including Equinor, Statkraft Vårgrønn, which altogether employ over 15,000 people. In a statement, Miliband said that together, Norway and the UK can “take advantage of the opportunities ahead in the North Sea”. “Energy security is national security – and only by working with key partners like Norway can we accelerate clean power that we control, getting us off the rollercoaster of fossil fuels in these unstable times,” Miliband said. Meanwhile, Aasland said the two countries “have a unique relationship in the