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US power grid is put to the test by arctic cold and data center demand
Electric infrastructure in the U.S. is at risk of being weakened by the demands of data centers, which are constantly on the go. Starting Friday, a pattern of Arctic cold extreme weather is expected, bringing with it extremely low temperatures, heavy snow, and ice. This could pose significant challenges to the electric grid until next week. The North American Electric Reliability Corporation (NAERC), the United States' top power regulator, made this assessment on Thursday. In several Midwest and Great Plains States, the cold weather has already reduced gas supplies through freezing of oil and gas pipes and wells. U.S. Natural Gas Futures have risen by 63% in the last three days, reaching a six-week peak on Thursday due to forecasts of extreme temperatures over the next two week. According to data and analysts from LSEG, demand next week will likely approach 'last winter’s record, as homes and business crank up their heaters in order to escape a brutally cold snap. The PJM Interconnection, the U.S.'s largest power grid, is expected to reach a record-breaking winter electricity demand next week. The grid operator warned that "peak demand could exceed 130,000 MW next week for seven consecutive days, a winter streak PJM had never experienced." "Depending on the temperatures, PJM may set a record winter peak load on January 27. This cold weather could last into early February. PJM has taken extra precautions to prepare. PJM provides electricity to 67,000,000 people in 13 states, including Washington D.C. It has struggled to meet the booming demand for power from Big Tech's data centers, which are needed for the rapid growth of artificial intelligence. Extreme weather has caught regional grids including PJM off guard in recent years. In Texas, the worst incident occurred in early 2021. More than 200 people died when nearly half of Texas's generation capacity was lost. Millions of Texans lost power, including a family of an 11 year old boy who froze and died in his bed. In after-action reports, the Electric?Reliability?Council of Texas (ERCOT), which is the main grid operator in the state, was criticised for failing to ensure that the system had been properly winterized. Since then, utilities and grid operators have had to comply with stricter state and federal regulations. ERCOT plans, for instance, to complete at least 450 inspections during the winter season (December - February). ERCOT reported that 240 inspections were completed as of January 2018. The gap between summer and winter peaks is closing, due to rapid data center expansion, according to Philip Krein, an expert in grids at the University of Illinois Urbana-Champaign. This means that utilities will have less time, for example, when performing maintenance, to shut down power plants. Krein stated that this makes the grid vulnerable. The maintenance season is stretched like never before. Both ERCOT (the utility) and PJM (the power company) said that they expect to have enough electricity generation this winter to meet the demand. ERCOT forecasts that there is a very slight chance of a controlled, small blackout in the morning on January 31. ERCOT CEO Pablo Vegas stated on Thursday that he is confident in the Texas grid's ability to handle cold weather. (Reporting by Tim McLaughlin, Editing by Nia William and Diane Craft).
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WestJet seat U-turn exposes risks for airlines squeezing economy passengers
WestJet, a Canadian airline, abruptly reversed its decision to introduce tighter economy seats last week following viral videos showing passengers with limited legroom. This U-turn was a warning to North American carriers who are redesigning their cabins to favor higher-paying passengers, often by reducing space and cutting back on once-standard amenities in the rear of the plane. WestJet reconfigured a part of its Boeing 737 fleet in order to add premium seating as well as six extra seats in economy. In order to make more room, certain rows of economy seats were equipped with fixed-back chairs that couldn't recline. The pitch (the distance between the seat in front and the one behind it) was also reduced from 30 inches to 28 inches. The airline has since apologized, but the incident has now become a flashpoint for a larger North American effort to attract higher-paying passengers and charge them extras for items that were once standard. WestJet claimed that its changes would give travelers more choices at different prices. But critics said it was a step towards a thinner product - less comfort and higher fees for basic things like choosing seats. Robert Mann, an independent airline analyst, said WestJet’s case is a "cautionary story" for other carriers. He added that economy passengers have a certain tolerance level. Delta Air Lines executives, United Airlines executives, and American Airlines executives have all told investors that demand for tickets at the front of the cabin is the strongest, while the demand for cheaper tickets is weaker as low-income earners feel the pinch from rising costs after the pandemic. Delta's increased demand for premium seats has offset the softness of the main seat. The airline reported that premium-cabin revenues surpassed main-cabin revenues for the first quarter of the year. It expects most near-term growth in seats to come from the premium cabins. THE ECONOMY SQUEEZE Price-conscious travelers are forced to make trade-offs as airlines increase the number of extra-legroom rows and expand first-class cabins. They get less legroom, have fewer included features, and pay more for things that were once part of their ticket. United has increased its use of Basic Economy. This includes limiting changes, advanced seat selection, and on many routes, travelers are limited to one personal item, unless they qualify for exemptions. American Airlines has also reduced the number of perks included in its lowest fares. Even the 'economy' carriers are changing. Southwest Airlines, known for its open seating policy, will be moving to assigned seating by the end of this month. They'll also add fare bundles, and extra legroom can be purchased. Gabor Lukacs, an advocate for air passenger rights, said that travelers are now aware that the economy fare can cost more after fees and taxes have been added. Airline executives claim that lower base fares benefit travelers and help them cover increasing labor and operating costs. IdeaWorksCompany data shows that fares dropped 3.8% from the previous year in 2024, but revenue per passenger from add-ons rose 2.5%. When WestJet was asked for comment, it referred to the CEO's Friday statement, which stated that the airline had "tried seat pitchings that are popular around the world as they provide affordable airfares." Budget European carriers like Ryanair, WizzAir and easyJet are known for their'sold-out' seats that have a 28 or 29 inch gap between them and the row ahead. These planes are often used for short-haul flights. Some analysts warn that the strategy still assumes premium demand to hold. Demand has dropped quickly in past recessions, including the 2008 Financial Crisis and the first months of pandemic. The report also notes that the majority of seats are sold to price-sensitive customers who may not be willing to accept a new standard with less legroom or fewer inclusions. Viral BACKLASH WestJet's episode has re-opened the debate on how tight airlines can make economy cabins, as they add more premium seating. Ronn Torossian of New York crisis-PR firm 5WPR said, "Economy customers may not purchase lie-flat seats but they still make their decisions with their cameras, posts and purchases." Samantha Taylor, WestJet's Chief Experience Officer, told her staff that the rollout of the new seats was harming the cabin crew who were dealing with passengers' frustrations as well as the brand. Flight attendants and passengers have said that WestJet's backlash is due to the fear of a slower evacuation because of the tighter seating. People familiar with the situation said that some cabin crew raised concerns to the regulator Transport Canada and that their union requested a risk assessment by the airline. Transport Canada stated that the configuration met federal safety standards. Boeing, the manufacturer of the plane, has not responded to a comment request. The U.S. Federal Aviation Administration, when asked about the approval of?cabin reconfigurations', said that it allows planemakers use a computer-based analysis for certification purposes if there are reliable test data from previous live demonstrations. Two passengers who were seated in the reconfigured seat said that they couldn't have reached the position for the emergency brace. Amanda Schmidt, 32 years old, who filmed a video that was widely circulated of her father, a 6-foot-3 man, crammed into an economy chair for a part of a 4-hour flight, said the redesign had caused such a stir as it went beyond a simple threshold. Schmidt stated that "when you buy a chair for a person, it should be able to fit a person." Schmidt said, "You shouldn’t pay more just because you are tall." (Edited by Joe Brock, Rod Nickel and Rod Nickel; Allison Lampert and Rajesh Kum Singh in Montreal)
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Source: SpaceX has lined up four Wall Street Banks for the mega 2026 IPO
Elon Musk's SpaceX has lined up four Wall Street banks to play leading roles in a possible initial public offering. This could be one of the biggest market debuts. The person stated that Goldman Sachs and Morgan Stanley were being considered as senior leaders for the IPO. However, they cautioned that plans could change depending on market conditions. Last month, it was reported that SpaceX had been 'interviewing banks to play key roles in the IPO. Morgan Stanley emerged as a top contender for a major role due to its close ties with Musk. The company is also launching a secondary stock sale, which could put the company's value at up to $800 billion. reported Last month, SpaceX's plans come as the markets prepare for a potentially massive year of U.S. listings. Artificial intelligence firms?Anthropic, and OpenAI are also laying the groundwork for possible IPOs. SpaceX had been reported to be seeking a $25 billion IPO this year. The Financial Times reported on Thursday that Bank of American is a potential contender to play a major role in this offering. Morgan Stanley, Goldman Sachs, JPMorgan Chase, and Bank of America declined to comment. SpaceX has not responded to a comment request immediately. (Reporting from Echo Wang in New York, and Prakhar Shrivastava in Bengaluru. Editing by Shreya biswas, Shailesh kuber and Nick Zieminski.
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BNSF warns that a winter storm is expected to snarl traffic along central US rail corridors
BNSF Railway, owned by Berkshire Hathaway, said on Thursday that a winter'storm' will disrupt operations along major corridors. Heavy snow, high winds and extreme cold are all threatening train movement. Railroad warned that customers who were moving freight through storm-affected areas should expect delays and longer transit time. They also said that shipments could temporarily be routed in a nonstandard way, or pass through "unfamiliar" locations, or encounter atypical interlockings. Winter storms will hit the U.S. energy and transport infrastructure. They will also threaten major disruptions for airlines, railways, and power providers. BNSF stated that the storm would disrupt a 'wide swath' of central United States, as it moves eastward from west. It will affect its operations in central Oklahoma and western Kentucky, with 8-15" of snow. Earlier Tuesday, CSX announced that it was closely monitoring a winter'storm' that could disrupt operations in several U.S. States as the storm intensifies and moves across its network. (Reporting and editing by Tasim Zaid; Apratim Sarkar)
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US Airlines issue waivers for travel as winter storm threatens to disrupt widespread travel
U.S. Airlines have announced sweeping travel waivers, as a 'winter storm', which is forecast to bring heavy snow, dangerous ice and sleet to two dozen states threatens to disrupt air travel in a large swath across the country, heading into the weekend. National Weather Service warned that a mix of freezing rain and sleet could cause travel to be dangerous, and power outages, and damage trees in the Southeast. Heavy snow is also expected further north. AccuWeather says that the 'winter storm' is expected to bring temperatures as cold as those not seen since 2021. Carriers warned that the combination of ice, snow and strong winds may slow airport operations and cause delays, cancellations and rebookings during the busiest winter travel period. Dan DePodwin is vice president for forecasting operations of AccuWeather. He said that this will most likely result in thousands of cancellations of flights on Saturday, Sunday, and Monday. According to Hopper, a travel booking app, up to 15,000 flights could be delayed by the storm. MAJOR AIRLINES OFFER FLEXIBLE REBOOKING OPTIONS Southwest Airlines has warned that it is expecting disruptions in parts of the 'South and East'. Customers will have two weeks to either rebook their flights or standby. Delta Air Lines warned that weather conditions could disrupt flights in the Southern Plains, Southeast and Atlanta. The airline offered free changes to customers who meet the waiver requirements. American Airlines has expanded flexibility to include major hubs like Dallas-Fort Worth, Charlotte and the Carolinas, and United Airlines offered a waiver that covered the Mid-Atlantic, Northeast, and parts of the Carolinas, Ohio Valley and Newark. This allowed affected customers the ability to change their travel plans within a certain period of time without incurring any fees for changes or fare variations, as long as they kept the same itinerary. JetBlue has announced a Northeast waiver covering?New York City and Boston area airports. It will also waive cancellation and change fees for customers travelling to and from eleven cities. Frontier Airlines, an ultra-low-cost carrier, said that if domestic or international flights are delayed by more than six hours, they can refund travelers. Spirit Airlines said that it would waive modification fees and fare difference across 13 cities between January 23 and 25. Airlines advised travelers to closely monitor flight status and to use mobile apps or airline websites in order for rebookings to be made as quickly as possible. Travelers are already getting ready for disruptions. Hopper reported that it has seen an increase of 17% in travelers who add Disruption Assistance for trips this weekend. DePodwin said that even in places far from the storm such as Denver, Chicago, and Minneapolis, the ripple effects of the widespread travel-halting storm would be felt. Reporting by Rajesh Kumar Singh from Chicago, and Doyinsola Oladipo from New York. Editing by Louise Heavens, Andrea Ricci and Andrea Ricci.
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US Airlines issue waivers for travel as Winter Storm Fern threatens to cause widespread disruptions
U.S. Airlines have announced sweeping travel waivers in response to Winter Storm Fern. Forecast to bring?heavy snow and sleet across two dozen states as well as dangerous ice, Winter Storm Fern threatens to disrupt air travel throughout a large swath across the country. National Weather Service warned that a mix of freezing rain and sleet could cause travel hazards and power outages in the Southeast. More snow is forecast further north. AccuWeather predicts that the winter storm will bring temperatures?not seen in 2021. Carriers warned that the combination of ice, strong winds and snow could cause delays, cancellations and rebooking difficulties during the busy winter travel period. MAJOR AIRLINES OFFER FLEXIBLE REBOOKING Options Southwest Airlines has warned that it will be experiencing disruptions in parts of the South East and South. Customers can rebook or travel standby if they wish within a 2-week period. Delta Air Lines warned that weather conditions could affect flights in the Southeast and Southern Plains, including the Atlanta hub. Customers who meet the waiver requirements can make changes to their travel plans without paying any fees. American Airlines has expanded similar flexibility to its network, which includes major hubs like Dallas-Fort Worth, Charlotte and the Carolinas. United Airlines, which operates in Newark, Washington and the Ohio Valley, also issued a waiver that covered much of the Mid-Atlantic, Northeast, and the Carolinas. JetBlue has announced a Northeast waiver covering New York, Boston and other?area airports. It will also waive cancellation and change fees for customers travelling to or from 11 cities. Ultra-low-cost-carrier Frontier Airlines ?said if flights are canceled or delayed for more than three and ?six hours for domestic and international flights respectively, travelers can request a refund. Spirit Airlines has announced that it will waive modification charges and fare differences in 13 cities between January 23-25. As the storm progresses, airlines urged travelers monitor flight status and to use mobile apps or airline websites to rebook flights as quickly as possible. Reporting by Rajesh Kumar Singh from Chicago and Doyinsola Oladipo from New York, with editing by Louise Heavens
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Castlelake begins talks with bankrupt Spirit after Frontier's bid is deemed inviable
Four people with knowledge of the situation say that Castlelake, an investment firm, has entered 'talks' to buy Spirit Airlines after a rival offer from Frontier Group Holdings in November was deemed to be unviable. Castlelake's discussions with Spirit Airlines may not lead to a viable deal or offer, but they have revived hope that Spirit, which has filed for bankruptcy twice in less than one year, could still find a way out through a sale, rather than risking liquidation or becoming a much smaller airline. CNBC was the first to report Castlelake's interest. Spirit and Frontier declined to comment. Castlelake didn't immediately respond to an inquiry for comment. "A VERY DIFFERENT SENSE OF SPIRIT" The company's survival is at stake. Marshall Huebner of Davis Polk & Wardwell, representing Spirit at a hearing held on Wednesday in the U.S. Bankruptcy Court of the Southern District of New York said: "It's fair to state that the airline was substantially reimagined and almost completely re-invented over the past several months." "This is an entirely different spirit. He said that the Spirit is smaller, tighter and better. Spirit's creditors kept the carrier afloat in its second Chapter 11 through emergency financing, including a lifeline of $100 million secured in December for operations and restructuring. The next steps could determine if Spirit is acquired or disappears. The union of pilots is publicly pressing bondholders to release additional financing in order to avoid liquidation. In a letter sent to bondholders on January 13, the Air Line Pilots Association (the union that represents Spirit's Pilots) said: "What remains unclear is whether or not its bondholders are willing to honor their funding commitments to allow a restructuring, or if they would rather force a liquidation, which would destroy South Florida's hometown carrier." Spirit's problems are partly due to the tougher environment that discount airlines face: excessive?capacity and tepid leisure demand, as well as fare pressure from legacy carriers who flood the market with cheap seats. Spirit's financial officer Fred Cromer said that the industry did not see a hoped-for recovery in 2025. This left Spirit overextended, and forced to make drastic cost cuts. This combination undermined Spirit’s turnaround following its first bankruptcy. In October, the airline reduced its fleet by almost 100 aircraft and exited more than a dozen U.S. market and suspended around 40 routes in its restructuring plan. Spirit's financial future is becoming increasingly uncertain as its bankruptcy proceedings began in August. This was its second filing within a year. Castlelake launched Merit AirFinance in August. The platform is backed by $1.8billion of deployable capital and aims to provide debt funding to airlines and aircraft lessees for both new and used assets. Reporting by Sabrina Valle in New York and Doyinsola Oladipo in Bengaluru, with additional reporting by Shivansh Tiwary in Bengaluru, Abhinav Paramar in Bengaluru, and Nathan Gomes at Bengaluru. Editing by Shailesh Kuber, Vijay Kishore and Rod Nickel.
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Largest US electric grid expects all-time record winter demand
The PJM 'Interconnection', the U.S. largest power grid, is expected to reach a new record next week. This is as the United States prepares for a blast of Arctic cold. PJM's forecast for the next seven days, published on Thursday morning, predicted 144 465 megawatts on demand on 27 January. This would be a new?winter record for PJM, surpassing the 143.700 megawatts set in January 2025. PJM, the largest grid operator in North America, serves 67 million customers?in thirteen states and Washington, D.C. PJM struggles to keep up 'with the booming demand resulting from the proliferation of 'Big Techs power-hungry?data?centers required for the rapid growth of artificial intelligence. PJM did not respond to a request for comment. The grid operator stated in November that it would be able to provide enough resources to service the 67,000,000 people?in its footprint?this winter, under the expected conditions. PJM anticipates having a total of?180.800 megawatts operational capacity. This is enough to meet peak demand. The National Weather Service has predicted that a cold front will bring sub-zero temperatures to the Eastern two-thirds.
France intercepts suspected Russian Shadow Fleet Tanker in Mediterranean
On Thursday, the French navy intercepted in the Mediterranean a Russian oil tanker suspected of being part of "the shadow fleet" that allows Russia to export its oil despite sanctions.
This operation was carried out with the help of several of our friends. Emmanuel Macron, French president, said on X that the operation was "completely compliant with the United Nations Convention on the Law of the Sea".
In a separate press release, the French maritime security said that the intercept was made in high seas between the southern coasts of Spain and Morocco's northern coast.
The statement also added that other countries, including Britain's navy, had supported the operation.
John Healey, British Defence Minister, said that Britain provided support in tracking and monitoring for the operation. HMS Dagger was one of the vessels that monitored the tanker GRINCH as it passed through the Straits of Gibraltar.
RUSSIA ADOPTS TO SANCTIONS
The EU has imposed sanctions on Russia in 19 different packages. However, Moscow has not only adapted to the majority of measures, but continues to sell millions and millions of barrels at discounted prices to countries like India and China.
A large amount of oil is transported by what's known as the shadow fleet, a group of vessels that operate outside the Western maritime industry.
In his blog post, Macron stated that the intercepted oil tanker was sailing out of Murmansk (northern Russia) and is under international sanctions. It's also suspected to be operating under a false banner.
According to LSEG, the tanker was flying a 'Comoros flag.
Macron said that "the activities of the Shadow Fleet contribute to funding (Russia's war of aggression) against Ukraine". In a recent post on X, Ukrainian President Volodymyr Zelenskiy?said that the operation was exactly the type of resolve required.
He proposed that the oil carried by the tankers of the Shadow Fleet be confiscated and then sold.
The case was sent to the Marseille prosecutor, who is responsible for?matters relating to maritime law. The prosecutor ordered that the ship be diverted "for further investigation". TASS reported that Moscow claimed France hadn't informed Russia of the intercept.
The Russian Consulate in Marseille, citing the Russian Embassy in France, TASS, reported that the Russian Consulate in Marseille was?trying to determine whether Russian citizens were among the crew.
In October, France arrested another sanctioned oil tanker, the Boracay. It was released after a couple of days.
(source: Reuters)