THIS WEEK AT A GLANCE
COMMITTEE ACTIVITY
House Energy Subcommittee — No Action This Week
The House Energy and Commerce Committee's Energy Subcommittee held no hearings or markups during the week of March 23. The full committee was active on other matters — the Communications and Technology Subcommittee reviewed the Telecommunications Act of 1996, the Health Subcommittee held its hearing on illicit drug threats, and the full committee held a markup of two bills to reauthorize FirstNet and modernize the emergency alert system, both of which passed and were reported to the full House. No energy-specific legislation moved through the House Energy and Commerce Committee this week.
The Hormuz disruption, the administration's continued use of Section 202(c) emergency authority, and the Interior Department's TotalEnergies settlement are all subjects that could generate Energy Subcommittee oversight interest as the spring calendar develops. No hearing has been announced for the week of March 30.
Senate Energy and Natural Resources Committee — Bulk Power System Hearing
On the other hand, the Senate Energy and Natural Resources Committee, chaired by Sen. Mike Lee (R-UT), held a full committee hearing on March 25 to examine the state of the bulk power system. Witnesses included Todd Snitchler, President and CEO of the Electric Power Supply Association; Travis Fisher, Director of Energy and Environmental Policy Studies at the Cato Institute; and Dr. Liza Reed, Director of Climate and Energy Policy at the Niskanen Center.
Fisher testified that the grid has become a constraint on economic growth and proposed allowing large new loads — such as AI data centers — to develop off-grid power systems under voluntary contracts, physically separate from the existing transmission network, to avoid interconnection delays and cost-shifting to existing ratepayers. Snitchler focused on transmission congestion and the pace of interconnection approvals as the primary near-term reliability risks.
Ranking Member Sen. Martin Heinrich (D-NM) used his opening to argue that electricity costs have risen 13% since the Trump administration took office, attributing the increase to the administration's energy posture and the Iran conflict's effect on oil and gas prices. Heinrich called for expanded transmission investment, faster interconnection timelines, and requirements that data centers bear the cost of the grid upgrades they necessitate rather than passing those costs to existing ratepayers.
Puerto Rico Connection
The cost-allocation debate over large new loads has direct federal policy implications for Puerto Rico. How Congress and FERC resolve the question of who pays for the grid upgrades required by large new industrial loads will shape the regulatory framework that applies to any such development on the island — and whether those costs fall on new entrants or on existing residential and commercial ratepayers served by a grid already operating under federal emergency orders.
KEY DEVELOPMENTS
Iran Conflict and Strait of Hormuz — Fourth Week
The U.S.-Israeli military campaign against Iran entered its fourth week. Commercial tanker traffic through the Strait of Hormuz remains at a near-standstill, and energy markets have yet to stabilize. Brent crude settled at $112.57 per barrel on Friday, March 27, and West Texas Intermediate at $99.64 — the highest closing prices since July 2022.
President Trump issued a 48-hour ultimatum demanding Iran reopen the Strait, then announced a five-day pause on strikes against Iranian energy infrastructure following what he described as productive bilateral talks. He subsequently extended that pause through April 6, citing ongoing negotiations. Iran permitted a small number of oil tankers to transit the Strait during the week, which Trump characterized as a goodwill gesture. Analysts were not persuaded that the broader supply disruption had eased.
The global LNG market has sustained serious damage. Iranian strikes on Qatar's Ras Laffan Industrial City — the largest LNG export facility in the world — caused infrastructure damage that QatarEnergy warned may take up to five years to repair. LNG spot prices in Asia climbed 48% over the course of the conflict. European gas storage, already at roughly 30% capacity after a severe winter, saw the Dutch TTF benchmark nearly double. Goldman Sachs revised its oil forecast upward, projecting Brent to average $110 through April, and warned that ten weeks of sustained Hormuz disruption could push prices past their 2008 record.
Puerto Rico Connection
Puerto Rico's natural gas cost exposure differs materially from that of European and Asian buyers. New Fortress Energy (NFE) holds the primary LNG supply agreement with the Puerto Rican government — a seven-year contract approved by the Financial Oversight and Management Board in late 2025 — with pricing benchmarked to the Henry Hub index, not to Middle Eastern or global spot markets. NFE supplies the island from its Fast LNG facility offshore Altamira, Mexico, fed by U.S. natural gas through the Sur de Texas-Tuxpan pipeline. That supply chain does not transit the Strait of Hormuz.
Puerto Rico is not immune to this crisis. Oil prices affect diesel and fuel oil costs across the island. But the natural gas component of Puerto Rico's generation fuel mix is priced against a domestic U.S. benchmark at a moment when Middle Eastern LNG has become dramatically more expensive for the rest of the world. The administration issued a 60-day Jones Act waiver on March 18 covering certain energy products and fertilizer. Analysts do not expect the waiver to have a material effect on Puerto Rico's energy costs in the current environment, as the island's principal supply constraints are driven by global commodity prices rather than vessel availability.
Interior Department Pays $1 Billion to Exit TotalEnergies Offshore Wind Leases
The Department of the Interior reached a $1 billion settlement with TotalEnergies SE to terminate the French company's two U.S. offshore wind lease agreements. The leases covered projects that had not yet entered construction. The administration's stated basis for the settlement is lowering the cost of energy for American consumers.
The agreement is the largest direct payment the administration has made in its effort to wind down offshore wind development in federal waters. Earlier actions — permitting freezes, project denials, and lease suspensions — did not involve federal outlays. Paying a foreign energy company to exit the U.S. market drew criticism from Democratic members of the House Energy and Commerce Committee, who argued the payment rewarded inaction and diverted funds that could have supported domestic energy development.
The administration has consistently framed offshore wind as economically uncompetitive and unreliable. The Interior Department has indicated that clearing the leasehold inventory is a policy objective, and additional settlements with other lease holders remain possible.
Puerto Rico Connection
The federal government has now made clear — through permitting freezes, project denials, and direct lease buyouts — that offshore wind will not receive federal support during this administration. Some of Puerto Rico's long-term energy planning documents have referenced offshore wind as a potential future resource. Those assumptions require revision given the current federal posture.
DOE, SoftBank, and AEP Ohio Announce 10 GW AI Power Partnership at Portsmouth Site
The Department of Energy announced a public-private partnership with SoftBank's SB Energy and AEP Ohio to develop generation and transmission infrastructure at the DOE-owned Portsmouth Site in Pike County, Ohio. SB Energy will build 10 gigawatts of new generation capacity to power a 10 GW data center campus planned for the site. AEP Ohio will invest $4.2 billion in new and upgraded transmission infrastructure in southern Ohio to support the project. DOE characterized the arrangement as structured to deliver the power at no net cost to American ratepayers.
The Portsmouth Site is a former uranium enrichment complex currently undergoing federal environmental cleanup. Its redevelopment as a major AI infrastructure hub reflects the administration's use of DOE land assets to accelerate domestic power deployment. The project is one of the largest single-site power commitments announced to date in support of AI data center demand.
The deal follows the model of the DOE-Stargate initiative and reinforces the administration's view that meeting AI power demand requires deploying all available generation resources on an accelerated timeline.
DOE Invokes Section 202(c) Authority to Preserve Indiana Coal Generation
The Department of Energy issued two emergency orders under Section 202(c) of the Federal Power Act requiring coal-fired generation facilities in Indiana to remain in service. DOE cited the need to preserve grid reliability and ensure affordable, secure power for the Midwest.
The Indiana orders extend a pattern of 202(c) actions the administration has pursued since May 2025. DOE has now issued more than 40 such orders since that date, collectively stalling the retirement of at least 4.4 gigawatts of coal capacity across multiple states. The administration's position is that dispatchable generation is being retired faster than replacement capacity can be deployed, creating reliability risk that warrants emergency intervention. Democratic members of the committee have disputed that characterization, arguing the administration is misapplying emergency authority to serve a policy preference rather than address a genuine reliability emergency.
Puerto Rico Connection
DOE's Section 202(c) emergency orders for Puerto Rico — issued under the same statutory authority — are currently active through May 11, 2026. The Indiana orders confirm that the administration remains willing to sustain and expand this authority well into 2026. Puerto Rico's orders have been renewed four times since May 2025. Hurricane season begins June 1. No fifth renewal has been announced. The 21-day gap between the current order expiration and the start of hurricane season remains the immediate watch item.
OTHER DEVELOPMENTS
SPARK — Concept Paper Deadline Reached
The April 2 concept paper deadline for DOE's Speed to Power through Accelerated Reconductoring and other Key Advanced Transmission Technology Upgrades (SPARK) funding opportunity has passed. SPARK makes available up to $1.9 billion in grid transmission funding under the third round of the Grid Resilience and Innovation Partnerships (GRIP) Program. Entities that did not submit a concept paper by 5:00 PM ET on April 2 are ineligible for this cycle. Full applications are due May 20, 2026, and DOE expects to announce project selections in August 2026.
DOE Genesis Mission — $293 Million RFA Now Open
DOE released a $293 million Notice of Request for Applications under the Genesis Mission, the administration's initiative to deploy artificial intelligence across DOE's scientific facilities, data assets, and National Laboratories. The RFA is open to interdisciplinary teams from National Laboratories, U.S. industry, and academia. It spans multiple DOE program offices, including the Office of Electricity and the Hydrocarbons and Geothermal Office. Phase I awards range from $500,000 to $750,000 over nine months. Phase II awards range from $6 million to $15 million over three years. Phase I applications and Phase II letters of intent are both due April 28, 2026. A dedicated analysis of the Genesis Mission RFA will be published separately by this firm.
DOE Announces $50 Million for Tribal Energy Infrastructure
DOE's Office of Indian Energy announced a $50 million competitive funding opportunity for Tribal-led energy planning and infrastructure deployment. Eligible applicants are federally recognized Tribes and Alaska Native corporations. Applications are due July 24, 2026 at 5:00 PM ET. The program is not open to Puerto Rico municipalities or public agencies.
LOOKING AHEAD
Upcoming Hearings
No Energy Subcommittee hearings have been announced for the week of March 30, 2026. The committee's spring oversight calendar is expected to develop in the coming weeks.
On Our Radar
Threads we are monitoring for Puerto Rico impact:
