Policy Outlook for 2025: Everything Leads Back to Demand

Without urgent action in Washington, demand for electricity will continue to outpace supply, threatening jobs and investment. 

LPPC CEOs convened in Washington to discuss the expectations and priorities for the new Congress and Administration with federal legislators, regulators, and other energy industry leaders. Strategies for meeting load growth underpinned every conversation. 

“Electric utilities power America’s economic progress. To be world leaders in AI, advanced manufacturing, and electrification, our country needs significant investments in electric infrastructure,” said LPPC president-elect Tom Falcone. “Lawmakers and regulators must urgently address issues such as permitting reform and the EPA’s power plant rule.”

‍Senator Kyrsten Sinema (AZ), Rep. Ferguson (GA-3), and Rep. Scott Peters (CA-50) shared their perspectives on the outlook for the new Congress and highlighted LPPC's success in building allies and raising awareness of public power issues on Capitol Hill. 

They also encouraged LPPC to continue to educate policymakers about the relationship between public power priorities and Congressional priorities of jobs, economic strength, and global competitiveness—especially with so many new members in Congress. To emphasize this point, Rep. Ferguson stated that more than 60% of the House GOP is new since the Inflation Reduction Act (IRA) was signed into law.

Rep. Peters pointed out that permitting reform is a major area of interest to Republicans, and he believes Democrats may be open to bipartisan solutions. Permitting reform is a policy priority that threads through virtually every level of meeting electricity demand. Al Gore of the Zero Emissions Transportation Association (ZETA), which advocates for 100% EV sales, pointed out that many of the decarbonization goals within the IRA depend on permitting reform and also the role of the IRA in encouraging domestic manufacturing. 

‍Mark Menezes, CEO of the United States Energy Association, addressed the big-picture outlook for energy policy. He predicted that the next administration would choose innovation over regulation. Instead of imposing limits, the Trump Administration would likely seek to encourage breakthroughs in advanced nuclear and carbon capture technologies. 

“LPPC is ready to work with the new Trump administration and Congress to supply American communities with reliable and affordable electric power,” said Falcone.

From the consumption side of the equation, Chris Phalen of the National Association of Manufacturers (NAM) and Craig Sundstrom of Amazon Web Services (AWS) discussed how large electricity consumers like the manufacturers and data centers are working with power companies, communities, and policymakers to advance generation and infrastructure projects. 

‍Karin Herzfeld, Senior Counsel at the Federal Energy Regulatory Commission (FERC), noted that as recently as 2021, demand side was not a primary focus for the regulatory agencies that oversee electricity. In addition to seeking progress on permitting reform, she put forth that regulatory priorities should include expanding transmission capability and tackling the interconnection queues. 

“Now is a pivotal time for utilities,” said Javier Fernandez, Vice Chair of LPPC and CEO and President of Omaha Public Power District. “Between load growth, commitments to decarbonization, aging infrastructure, and changing climate conditions, utilities are working extra hard to keep the lights on. To meet America’s growing power demand, we need regulatory certainty built on a sustainable, long-term framework.”