Senator questions Energy Secretary on power pricing and budget modeling
June 18, 2025 | Energy and Natural Resources: Senate Committee, Standing Committees - House & Senate, Congressional Hearings Compilation
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The U.S. Senate Committee on Energy and Natural Resources convened on June 18, 2025, to discuss critical energy issues, focusing on communication between the committee and the Department of Energy (DOE), energy pricing, and the implications of proposed budget changes on energy supply and costs.
The meeting began with a direct inquiry from a senator regarding the responsiveness of the Secretary of Energy to letters sent by committee members. The Secretary acknowledged the importance of formal communication and committed to responding to the senator's letters, emphasizing the need for efficient dialogue.
The discussion then shifted to energy pricing, where the senator highlighted the average retail price of electricity in the U.S., currently around 17.1 cents per kilowatt-hour. The senator noted that their utility in Central New Mexico, known for its clean and renewable energy sources, charges approximately 12 cents per kilowatt-hour. This prompted a conversation about the reliability of renewable energy and the management of the grid, countering the notion that renewable sources are unreliable during low production periods.
The senator and the Secretary agreed on the pressing issue of soaring power demand, which the Secretary described as a "train wreck waiting to happen." The need for significant investments and regulatory reforms was underscored, with the Secretary cautioning against reliance on unaffordable energy solutions. The conversation included insights from NextEra's CEO regarding rising costs for gas-fired facilities and the limited capacity gains from retiring coal plants.
The senator inquired about the DOE's modeling processes to assess the impacts of the proposed budget on energy supply and costs. The Secretary confirmed that the DOE has a dedicated team that models the grid by regions and referenced a recent decision to keep a coal plant operational in Southwestern Michigan due to low reserve margins, which was validated by subsequent events.
The meeting concluded with a request for the modeling data related to the budget, indicating a desire for transparency and further analysis of the proposed energy strategies. Overall, the discussions highlighted the complexities of energy management, the importance of communication, and the need for informed decision-making in the face of evolving energy demands.
The meeting began with a direct inquiry from a senator regarding the responsiveness of the Secretary of Energy to letters sent by committee members. The Secretary acknowledged the importance of formal communication and committed to responding to the senator's letters, emphasizing the need for efficient dialogue.
The discussion then shifted to energy pricing, where the senator highlighted the average retail price of electricity in the U.S., currently around 17.1 cents per kilowatt-hour. The senator noted that their utility in Central New Mexico, known for its clean and renewable energy sources, charges approximately 12 cents per kilowatt-hour. This prompted a conversation about the reliability of renewable energy and the management of the grid, countering the notion that renewable sources are unreliable during low production periods.
The senator and the Secretary agreed on the pressing issue of soaring power demand, which the Secretary described as a "train wreck waiting to happen." The need for significant investments and regulatory reforms was underscored, with the Secretary cautioning against reliance on unaffordable energy solutions. The conversation included insights from NextEra's CEO regarding rising costs for gas-fired facilities and the limited capacity gains from retiring coal plants.
The senator inquired about the DOE's modeling processes to assess the impacts of the proposed budget on energy supply and costs. The Secretary confirmed that the DOE has a dedicated team that models the grid by regions and referenced a recent decision to keep a coal plant operational in Southwestern Michigan due to low reserve margins, which was validated by subsequent events.
The meeting concluded with a request for the modeling data related to the budget, indicating a desire for transparency and further analysis of the proposed energy strategies. Overall, the discussions highlighted the complexities of energy management, the importance of communication, and the need for informed decision-making in the face of evolving energy demands.
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