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FERC Proposes NEPA Revisions to Streamline Air Quality Analyses and Accelerate Natural Gas Projects

LCG, October 16, 2026--The Federal Energy Regulatory Commission (FERC) announced on Thursday its new proposal to revise and accelerate its review of air quality effects for proposed natural gas projects under the National Environmental Policy Act (NEPA). The draft policy statement highlights revisions designed to (i) avoid unnecessary delays and duplicative analysis and (ii) deliver greater regulatory certainty and a streamlined path forward for project applicants.

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AEP Announces 702-MW Bloom Fuel Cell Project to Serve Google in Wyoming

LCG, October 14, 2026--American Electric Power (AEP) today announced plans for a 20-year power purchase agreement (PPA) with Google, under which AEP will invest approximately $4 billion to advance a new 702-MW fuel cell generation project located near Cheyenne, Wyoming. Google will acquire power from Cheyenne Fuel Cell, LLC, which is approximately 92 percent owned and controlled by AEP and 8 percent owned by funds advised by Basalt Infrastructure Partners, LLP. AEP and its partners plan to start construction this year and to be fully operational by the end of 2028.

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Industry News

FERC Receives Criticism Over Grid Incentives

LCG, Mar. 14, 2003--The period allowed by Federal Energy Regulatory Commission (FERC) for public comment on current rulemaking proposals ended yesterday, with a number of commercial energy users and state agencies questioning a method to reward utilities that sell their transmission assets or make them part of regional grids.

Numerous estimates were made of how much energy consumers would pay to utilities that were allowed incentives of up to 300 basis points in higher rates of return to yield control of their transmission assets. FERC believes that opening the transmission grid by encouraging regional transmission organizations would lead to lower energy prices. While the Edison Electric Institute, a representative for a group of large investor-owned utilities, put the cost of the incentives at $20 million per year, a group of state consumer advocates estimated their cost at $711 million per year.

Profit margins of 15 percent could be possible for utilities under the proposed rules. Williams Cos. Inc. found that the reduction of discrimination in grid access would be beneficial, with the incentives costing residential consumers less than $2 per year. Companies submitting comments to the FERC included Boeing Co., Georgia-Pacific Corp., Hewlett-Packard Co. and Weyerhauser Co. Members of that group found the rates of return that would be allowed to be excessive.
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