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FERC Proposes NEPA Revisions to Streamline Air Quality Analyses and Accelerate Natural Gas Projects

LCG, October 16, 2026--The Federal Energy Regulatory Commission (FERC) announced on Thursday its new proposal to revise and accelerate its review of air quality effects for proposed natural gas projects under the National Environmental Policy Act (NEPA). The draft policy statement highlights revisions designed to (i) avoid unnecessary delays and duplicative analysis and (ii) deliver greater regulatory certainty and a streamlined path forward for project applicants.

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AEP Announces 702-MW Bloom Fuel Cell Project to Serve Google in Wyoming

LCG, October 14, 2026--American Electric Power (AEP) today announced plans for a 20-year power purchase agreement (PPA) with Google, under which AEP will invest approximately $4 billion to advance a new 702-MW fuel cell generation project located near Cheyenne, Wyoming. Google will acquire power from Cheyenne Fuel Cell, LLC, which is approximately 92 percent owned and controlled by AEP and 8 percent owned by funds advised by Basalt Infrastructure Partners, LLP. AEP and its partners plan to start construction this year and to be fully operational by the end of 2028.

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Industry News

SMUD May Cancel 1000 MW of New Generation

LCG, May 20, 2002-The Sacramento Municipal Utility District (SMUD) is considering canceling plans to build the Consumnes Power Plant.

The plans were to build the 1000 MW gas-burning plant next to out-of-commission Rancho Seco, using 8,000 acre-feet of water from the American River for cooling. The California Energy Commission questioned this water usage, preferring power plants to use reclaimed water or dry cooling methods over high-quality water when possible.

SMUD says that it would cost significantly more to build the Consumnes plant without the use of American River water. The steeper price tag decreases the chances of SMUD choosing to build the plant by 25 to 50 percent.

The first phase of building, to generate 500 MW, was scheduled to be operational in 2005 and would have cost $374 million to build. The second phase would have come on-line sometime around 2008. SMUD says that cooling the plant with sewage treatment plant water, 26 miles away, would cost $45 million extra in construction and $8 million in operation over 30 years. Air cooling would add $42 million in construction and $291 million in operation.

Apparently SMUD is fairly upset about the permitting process, and according to the Sacramento Bee, former SMUD chief and current chairman of the California Power Authority David Freeman said, "They're pretty angry; these folks are not in the habit of being regulated. It brings out the animal in them."

While the potential cancellation of this plant will not be seriously detrimental to the region, the pattern of delay is worrying some people because more generation or better transmission is necessary for grid stability in the Sacramento region. Two other area plant projects have also been delayed; they are the Roseville and Rio Linda-Elverta projects.

A SMUD report detailing options for the project is due in June.

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