Speaking Energy

Federal energy regulators are assuming expanded roles as the administration prioritizes energy dominance and infrastructure development to meet unprecedented power demand. FERC Chairman Laura Swett has vowed to expedite data center interconnections while addressing jurisdictional challenges, warning that unmet electricity demand could drive data centers abroad and create national security risks. The agency is processing pipeline applications faster than in prior years and considering blanket authorizations for certain LNG and hydroelectric projects to streamline approvals. 

Pipeline projects previously stalled by Clean Water Act permits are being revitalized, particularly in northeastern states where historically high electricity prices have increased openness to natural gas infrastructure. The Department of Energy is expanding its emergency authority to require retention of generation resources and has granted major LNG export approvals, signaling commitment to expanding U.S. export capacity under a streamlined framework that deprioritizes climate considerations.  

The Administration is bullish on the opportunities for the U.S. energy industry in Venezuela and eager to support companies willing to navigate the political risk inherent in the operations at the moment. Early meetings with President Trump and industry leaders showed the path forward may be longer and more complex than anticipated by the President. 

As permitting reforms advance and the pendulum swings toward fossil fuel favorability, the regulatory and policy landscape is fundamentally reshaping energy infrastructure development timelines and investment opportunities. 

Oil & Gas in 2026: Energy Policy & Regulation 

Delve into the complete regulatory & policy outlook at our Oil & Gas in 2026 report.

Macroeconomic turbulence and volatile commodity markets significantly influenced oil & gas M&A activity throughout 2025, with deals showing renewed momentum only in the year's second half.  

The global energy sector enters 2026 amid major policy shifts, geopolitical tension and evolving market dynamics. The Trump administration’s reversal of Biden-era climate initiatives and renewed emphasis on domestic production have reshaped the policy landscape, offering a more favorable regulatory environment even as conflicts abroad, oil price volatility and shifting trade policies tempered deal activity through 2025.

On January 16, 2026, the National Energy Dominance Council (NDEC) and governors from each of the 13 states in PJM issued a Statement of Principles urging PJM Interconnection, L.L.C. (PJM) to hold an emergency backstop auction and take other measures to support the entry of new capacity to preserve the reliability of the PJM region. The Statement of Principles calls on PJM to expeditiously file with the Federal Energy Regulatory Commission (FERC or the Commission) tariff revisions that would overhaul aspects of PJM’s market rules to address rising electricity prices and growing reliability risks in the PJM region. The Statement of Principles comes at a time of growing concern that PJM will not have sufficient capacity in the coming years to meet demand due to the retirement of existing generation resources, the glacial pace of new entry and projected increased demand associated with data center development.

On December 19, 2025, the Federal Energy Regulatory Commission (FERC or the Commission) issued its much-anticipated order on show cause proceeding concerning the co-location of generation and load within the PJM Interconnection, L.L.C. (PJM) market.^[1] In the order, the Commission finds that PJM’s tariff is unjust and unreasonable because it does not provide sufficient clarity on the rates, terms, and conditions of service applicable to generators serving Co-Located Load and does not include transmission services appropriate for customers that are willing and able to limit their use of the transmission system in certain conditions. 

We are pleased to share the program materials and a recording of Akin’s recently presented webinar, “Navigating the Evolving Landscape of Corporate PPAs.”

On November 7, 2025, the New York Department of Environmental Conservation (NYSDEC) and the New Jersey Department of Environmental Protection (NJDEP) reversed their prior positions and approved Clean Water Act (CWA) Section 401 Water Quality Certifications and other environmental permits for the Transcontinental Gas Pipeline Company’s (Transco) Northeast Supply Enhancement Project (NESE). NESE is a 25-mile natural gas pipeline expansion project certificated by the Federal Energy Regulatory Commission (FERC) that is intended to deliver 400,000 dekatherms per day of natural gas produced in Pennsylvania to local distribution company customers in New York City through new facilities in Middlesex County, New Jersey and an underwater segment traversing the Raritan and Lower New York Bays.

The market for the direct procurement of energy by commercial and industrial buyers has been active in the U.S. for a decade.  In years past, buyers often engaged in such purchases on a voluntary basis to achieve their goals to use renewable energy.  These days, C&I buyers are turning to direct procurement or self-supply to obtain a reliable source of energy.  Sufficient and accessible energy from a local utility may not be available or may be materially delayed or trigger significant capital costs.  This is a material change driven in part by increased demand for electricity, including demand from data centers, EV infrastructure and industrial development.       

On October 23, 2025, the Secretary of the U.S. Department of Energy (DOE) directed the Federal Energy Regulatory Commission (FERC) to conduct a rulemaking to assert jurisdiction over load interconnections to the bulk electric transmission system and establish standardized procedures for the interconnection of large loads.¹ The Directive included an advanced notice of proposed rulemaking (ANOPR) that sets forth the legal justification for asserting jurisdiction over transmission-level load interconnections and fourteen principles that should inform FERC’s rulemaking process. The Secretary has directed FERC to take “final action” on the Directive no later than April 30, 2026.