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AES and Meta Announce PPAs to Provide 650 MW of Solar Capacity for Data Centers

LCG, May 22, 2025--The AES Corporation (AES) yesterday announced that it has entered into two, long-term Power Purchase Agreements (PPA) to support Meta's data centers with 650 MW of solar capacity from two AES projects that will be starting operation in the Southwest Power Pool (SPP). AES expects these two solar projects will provide economic benefits to communities in Texas and Kansas, including hundreds of new construction jobs and contributing millions in long-term tax revenue.

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TVA Submits First Construction Permit Application for SMR at Clinch River Site

LCG, May 21, 2025--The Tennessee Valley Authority (TVA) announced yesterday that it is the first utility in the U.S. to submit a construction permit application (CPA) for the GE Vernova Hitachi Nuclear Energy (GVH) small modular reactor (SMR) BWRX-300 technology to the U.S. Nuclear Regulatory Commission (NRC). The application is TVA's next step in pursuing an SMR at its Clinch River site, near Oak Ridge, Tennessee. Preliminary SMR site preparation could begin as soon as 2026.

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Industry News

Transmission Access to Continue to Favor Utilities

LCG, Nov. 4, 2003--Legislators in Congress who are concerned about the Federal Energy Regulatory Commission's plan for large regional electricity markets have effectively prevented the agency from doing away with utilities' preferential access to transmission lines.

Sen. Pete Domenici has reportedly been told by Senators from the South that their vote on an energy bill would depend on utilities having the ability to secure transmission access before other entities, such as merchant energy suppliers. Utilities such as Southern Co., which serves customers in the Southeast, want to bear the cost of transmission expansion only to the extent that it is necessary to serve their customers, not for the benefit of other energy suppliers. As electricity flows cannot be strictly controlled, determining who derives benefits from transmission lines is a complicated exercise.

Domenici, who has made his skeptical view of FERC's Standard Market Design clear for some time, intends to block its implementation until 2007. FERC believes that greater centralization of authority for grid operation and investment decisions is necessary to cut through the institutional friction inherent in many local entities overseeing small parts of a larger system.

In the Northwest, the Bonneville Power Administration, which was created by the federal government to be a low-cost supplier of electricity, also is wary of a greater role for FERC in administering its market. It wants to avoid rate increases in its region caused by higher prices in California, or wherever power demand puts pressure on supplies. Pat Wood III, the chairman of FERC, says that the regionally concentrated opposition shows that these utilities believe their strategic positions are at stake. The agency has revised upward the number of regional transmission organizations, which coordinate operations in a given market area, it might be willing to accept.
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