Rapidly Escalating Energy Demand Dominates Discussions at USEA’s 2025 State of the Energy Industry Forum
LPPC President Tom Falcone joined a panel of experts at this year’s USEA Annual State of the Energy Forum, where he underscored the need for support from Washington policymakers to ensure grid reliability and meet growing energy demand.
Major industries, such as semiconductor manufacturing facilities and data centers powering AI innovations, are driving an unprecedented need for reliable power across the U.S. To keep pace, LPPC member utilities in states like Georgia, Nebraska, Texas, and Arizona, to name a few, are scaling up their generation capacity. Falcone noted that demand is so high in certain communities that the local utility must double their capacity by 2030 to meet it.
“As utilities are expanding renewable energy technologies like wind, solar, and battery storage, they must also rely on natural gas as a firming resource to ensure grid reliability,” Falcone said. “But supply chain limitations pose significant hurdles — combustion turbines ordered today may not be delivered until 2032, and large transformers come with a four-year wait time. These delays could threaten the pace of grid development needed to power economic growth.”
As the new Administration and Congress look to advance their policy priorities in 2025, Falcone emphasized the role federal policymakers must play in addressing these challenges and supporting those who are building and maintaining the infrastructure needed to support America’s growing economy. “Our member utilities are pursuing all kinds of innovation, from carbon capture, to hydrogen, to advanced nuclear and storage. But with today’s technology, natural gas has to be built alongside renewables to maintain reliability, particularly in areas with rapidly growing demand for electricity,” Falcone said.
He referenced policies such as EPA’s Power Plant Rule, which requires new natural gas plants to meet not yet possible 90% carbon capture standards by 2032 or operate at less than 40% capacity. This policy could inadvertently worsen supply chain issues by increasing demand for already scarce equipment, as utilities are forced to build more plants to artificially limit their run time, raising cost and challenging the ability to meet electric demand without reducing carbon emissions.
Additionally, federal permitting reform and the preservation of key financing tools for public power, like elective pay credits, are both crucial to keeping infrastructure projects affordable and viable. These credits, which can sometimes cover 30-40% of project costs, help utilities meet rising demand while keeping costs low for American consumers. Proposals in Congress to scale back these tools could delay infrastructure projects, drive up costs, and strain the electric power sector’s ability to power the growth of the American economy.
