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Babcock & Wilcox Selects Siemens Energy to Supply Steam Turbine Generator Sets for Massive Applied Digital Data Center Power Project

LCG, January 8, 2026--Babcock & Wilcox (B&W) announced today that it has selected Siemens Energy to provide steam turbine generator sets for B&W’s groundbreaking project to install and deliver one GW of power for an Applied Digital AI Factory. B&W and Siemens have entered into an agreement for a limited notice to proceed to secure the turbine sets, which will enable B&W to deliver power for the project by the end of 2028. The estimated cost of the project is approximately $2 billion. The full contract release is expected in the first quarter of 2026.

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Constellation Completes Acquisition of Calpine

LCG, January 7, 2026--Constellation today announced that it completed its acquisition of Calpine Corporation from Energy Capital Partners (ECP). Constellation is now the largest producer of electricity in the U.S., with electric generation facilities across the nation.

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Industry News

California PUC Limits Fees for Some Grid Users

LCG, Apr. 4, 2003--A decision by the California Public Utilities Commission on Thursday showed unanimous support for limiting fees charged to installers of solar panels for use of the power grid, while another showed sharp divisions on similar exemptions for builders of small gas turbines.

The fees are put toward the cost of state electricity purchase bonds, issued to reimburse California for emergency purchases made on behalf of California's major utilities. They also contribute to the costs of long-term electricity contracts. Recent arguments for the solar exemption put forth were that the charges would be a disincentive to further solar installation, and that the benefits of increased supplies and reduced demand on the grid from new power sources should be rewarded. By providing subsidies not only to solar users but also those installing gas turbines, the commission is causing costs to be borne more heavily by other users, some commissioners noted.

The PUC president, Michael Peevey, was in favor of the small number of "entities who are willing to put up capital for investment in generation, transmission or distribution" being given encouragement in a market lacking in investment. Commissioner Carl Wood and former commission president Loretta Lynch expressed opposition to giving subsidies to those using microturbines and cogeneration, with Lynch saying "I think that will reduce in the long term the ability of the renewable and ultra-clean vendors to increase their market share." Wood said the policy vote would benefit large businesses and industrial facilities most, and said he would not go along with "an inclination ... to promote cost shift for the benefeit of these large customers."

The subsidy given to smaller non-renewable generation was at a lower rate than that given to renewables. Nonetheless, a lawyer for the Utility Reform Network, Matt Freedman, told the Sacramento Bee, "Every dollar we exempt these customers from paying, somebody else has to eat."
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