The energy world is in flux. The PJM grid’s price collar proposal is sparking fears of market distortion, Arizona is fast-tracking nuclear, and Trump is putting the brakes on offshore wind. Meanwhile, Big Tech is leaning into nuclear, utilities are reshuffling power costs, and global energy politics are as volatile as ever. Let’s dive in.

PJM’s ‘Price Collar’ Plan Sparks Market Integrity Fears

PJM Interconnection—the backbone of the U.S. power grid—wants to cap and floor its next two capacity auctions, effectively managing what is supposed to be a free market. The proposal, a response to pressure from Pennsylvania Governor Josh Shapiro, sets a $325/MW-day cap and a $175/MW-day floor for 2026-2028 auctions, aimed at protecting both consumers and power producers. But critics argue it's just another market distortion, arbitrarily setting prices rather than letting supply and demand dictate them.

North Carolina regulators and consumer groups are fighting back, arguing the artificial price floor could drive up costs for ratepayers without any meaningful reliability benefits. PJM’s market monitor warns the plan undermines trust in the system, and even utilities that usually back these policies are voicing skepticism. With energy demand surging—thanks to AI, EVs, and industry growth—this plan could exacerbate uncertainty, push investors away, and lock in inefficient market rules for years.

Arizona Moves to Fast-Track SMRs, Bypassing Red Tape

Arizona legislators are taking a bold step toward nuclear expansion, proposing a bill that would let utilities build small modular reactors (SMRs) without traditional environmental reviews—if colocated with large industrial loads or existing power plants. The state’s three biggest utilities—APS, Salt River Project, and Tucson Electric—are already exploring sites for next-generation nuclear, and this bill would cut years off the approval timeline.

Opponents argue the measure dodges public scrutiny, but supporters say it’s a necessary move to meet Arizona’s booming energy demand. With data centers, AI clusters, and semiconductor fabs all hungry for reliable, baseload power, Arizona sees nuclear as its best bet. If passed, the bill could serve as a model for other states looking to circumvent bureaucratic roadblocks and fast-track nuclear expansion.

Trump Yanks Permit for Atlantic Shores Offshore Wind

The Atlantic Shores 1.5-GW offshore wind project just hit a massive roadblock. The EPA pulled its air quality permit, citing Trump’s January 20th executive order that mandated a review of all offshore wind projects. The move is part of a broader shift in U.S. energy policy, with Trump looking to pause new offshore leases, reassess environmental impacts, and redirect investment toward fossil fuels and nuclear.

Developers Shell and EDF Renewables are furious, calling the decision a political stunt that undermines regulatory certainty. But the numbers tell a different story: both companies recently took billion-dollar write-downs on the project, signaling that offshore wind’s economics were already looking shaky. With rising costs, supply chain delays, and mounting local opposition, Trump’s move may be less about ideology and more about letting offshore wind die a natural financial death.

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Good Bet, Bad Bet

Good Bet: Constellation Energy (CEG)
With PJM’s capacity market in chaos, offshore wind struggling, and nuclear getting fast-tracked, the biggest winner is Constellation Energy (CEG). The company owns the largest nuclear fleet in the U.S. and benefits from PJM’s price manipulations, Arizona’s pro-nuclear stance, and the general trend toward reliable, baseload power. Big Tech wants nuclear, and Constellation is the biggest game in town.

Bad Bet: Ørsted (ORSTED)
If you’re still betting on offshore wind, you’re ignoring reality. Ørsted, the world’s largest offshore wind developer, is in freefall, slashing projects and watching its stock price bleed out. With the EPA and Trump blocking new projects, and developers writing down billions in losses, offshore wind’s days as an energy darling are over. The next wave of energy investment? Baseload power—nuclear and gas. Ørsted is on the wrong side of history.

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