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FERC considers major reforms to improve the transparency and independence of the largest US power grid
U.S. 'energy officials' pushed Thursday for greater transparency and independence in PJM Interconnection as regulators consider reforms to the country’s largest power grid. PJM faces a growing risk of blackouts due to the soaring?data centre?demand while fewer new electricity supplies are being added. PJM has been struggling with power shortages and rising electricity prices ever since the demand for electricity in the Mid-Atlantic region increased two years ago. At a Federal Energy Regulatory Commission technical conference, officials from the White House and state governments met with power industry executives to discuss possible solutions to PJM’s supply and pricing problems. Some of these proposals included giving the grid operators board of'managers' more independence from their voting members and requiring that decisions made by the board be public. "We don't want to be shrouded in mystery or secrecy." James Danly, U.S. deputy secretary of energy, said that he wanted to be able to see what was going on. PJM has hundreds of members including transmission owners and operators of power plants. They vote on the market rules in a multi-layered procedure, with the board ultimately deciding if proposed changes are approved. The board's voting and deliberations are often conducted behind closed doors, according to critics. Participants at the FERC conference expressed concern that board members who serve three-year term terms run the risk being removed if they adopt a contrary or unpopular stance with the membership. Peter Lake, Senior Director, Power at the White House National Energy Dominance Council, said: "PJM needs a transparent, independent board that can make decisions and take action without fear of being terminated after each board meeting." The proposed solution to this retention dilemma was to extend the terms of PJM's board members. FERC commissioners asked PJM CEO David Mills to suggest a'reasonable' new term period. Mills suggested six to nine year terms. FERC commissioners?also discussed the possibility of?giving PJM states, including governors more power to make decisions in the grid. Governors do have some political influence on PJM, including the ability to cap power prices at the most recent power auctions conducted by the grid operator. However, they are not voting members. PJM proposed its own'series of reforms' to increase power generation, to connect data centers faster and to avoid shortages. Lake, who was the chair of the Public Utility Commission of Texas after a 'deadly grid failure that affected the entire state following Winter Storm Uri in 2021, has said he is seeing 'warning signs similar to those leading up to the disaster four years ago, and has stressed the importance of reforms. He said that the root cause of this failure was a flawed governance structure and a failing stakeholder process. These are the same ills which harm PJM now.
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During protests, Metro and Internet restrictions in Delhi affected commuters and businesses.
Commuters have had their journeys disrupted and businesses stopped in India's capital city as authorities shut down metro?stations. They also blocked mobile internet service amid protests calling for the resignation of the education minister over?exam leaking. The "critical situation" has led a traders' association to urge all businesses in Connaught Place, the commercial and business hub in central Delhi that is adjacent to the Jantar Mantar protest area, to close earlier. In a city in which the majority of mobile phone payments are made via the Unified Payments Interface, the internet restrictions have been particularly harsh on small businesses. Rakesh Yadav (38), who runs a food stall, says his daily earnings dropped from 5,000 Rupees ($52), to just 500 rupees (5 dollars), since most people don't carry cash. He said, "Make the Education Minister resign... don't ruin our livelihood at least." Taxi driver Umesh Kumra, 24, has also seen his earnings drop to only 200 rupees (about $2) a day as he is no longer able to pick up passengers via?his usual ride hailing app and those who flagged him down seldom carry cash. On Thursday evening, reporters were unable to connect to mobile internet in the region, including the protest site, popular five-star hotel, and the central business district. The government and the Telecom Department did not respond immediately to our requests for comment. Two sources confirmed that the telecoms companies were in compliance with an order from the government to disable mobile data. The authorities also announced that a few metro stations were closed, and regular announcements are made on trains. Dolly Haldar is a finance professional who has had her commute disrupted by the closure of the closest metro station to her office. "Our commute is more expensive, we are not able to reach our office in time and there's more traffic on the road. "We will be disappointed," she said. The Cockroach?Janta party, which is leading the protest, claims that people will still come to the protest despite station closures. Anant, a 21-year-old man from Delhi, was one of those who endured the disruptions in the metro system to join the sitin for the very first time on Thursday. He said, "A good educational system is the bare minimum. We should go (to protest) for our future", while he was travelling by train to find a different route to the site of the protest.
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After Houthi attacks, the cost of war risk insurance for south Red Sea cruises has increased.
Sources say that the insurance costs for shipping goods across the southern Red Sea have doubled since Thursday's attack by Yemen's Iran aligned Houthis on at least one tanker. The Houthis claimed that their forces had launched missiles and drone attacks on the Encelia and the Layla, two Saudi oil tankers. The Strait of Hormuz was essentially closed, which made the situation worse for "shipping" in the region. The strike was confirmed by maritime security sources off the coast of Jizan in southern Saudi Arabia, near Yemen's border. Donald Trump, the U.S. president, mentioned two attacks against Saudi oil tankers. The Houthis announced a naval blockade against Saudi Arabia on Monday, potentially opening up a new front in the U.S. war with Iran. Sources said that on Thursday, indicative "war risk premiums" for voyages in the southern Red Sea increased to more than 1% of a vessel's value from around 0.7%?on Monday and 0.3% the week prior to the Houthi announcement. Sources said that rates?for certain shipping companies and Saudi-linked vessels were as high as 3% on voyages departing from southern Saudi 'ports such as Jizan or Al Shuqaiq in the Red Sea, which would bring them closer to Yemeni territories, and transits through Bab el-Mandeb further south, leading into the Gulf of Aden. Even minor changes in war insurance can add up to hundreds of thousands of extra dollars for a 7-day trip. Sources said that rates for other Saudi Red Sea Ports, like Jeddah and Yanbu which are located further north along the coast, closer to the Suez Canal were quoted at around 0.1%, reflecting a lower level of risk for the time being. Sources said that two Chinese supertankers - which loaded Saudi oil in Yanbu earlier this week - sailed past the Bab el-Mandeb Wednesday. Uncertain was the amount of insurance paid. Houthi attacks on Yemen's coast started in November 2023. The group claims solidarity with Palestinians? during the Gaza War. Gaza's ceasefire only last October brought an end to the group's attacks against merchant ships. The successful passage of a China-owned oil tanker through Bab el-Mandeb suggests that "the blockade is likely to target vessels with Saudi and Western interests" as was the case in the 2023-25 Houthi 'Red Sea Anti-shipping Campaign", according to Hamish Kinnear. Principal?Middle East & North Africa Analyst at Verisk Maplecroft. The shipping industry is now facing increased risks due to two choke points in the trade, and several vessels have already been forced to change their routes as a result of Houthi threats. (Reporting and editing by Jonathan Saul with the Insurer, Michael Jones at the Insurer)
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Spain's Zapatero claims jewels seized worth $1.5m were a "courtesy gift"
Former Spanish Prime Minister Jose Luis Rodriguez Zapatero stated on 'Thursday' that the EUR1.3 million ($1.5million) worth of jewellery seized by police in an investigation were a personal gift he had received years ago, and never intended to be used for financial gain. Zapatero is being investigated for alleged influence peddling. He denies the accusations. This case is part of a string of alleged corruption scandals that have affected the Socialist Party and put political pressure on Prime Minster Pedro Sanchez's Government. Zapatero said in his first interview with Spanish public broadcaster TVE, that the jewels discovered during a search at his office had been "a personal gift" and that they had been kept for many years along with other family treasures. He said the jewels were unrelated to any of his political activities. Their origin and handling will be explained in full before a court. He denied that they were an attempt to enrich himself. Investigators claim that Investigating Judge Jose Luis Calama launched a separate investigation into the jewellery. Its origin is still unknown. Zapatero disagrees with the estimate of EUR1.3 million ($1.5million) by an 'auction house. Zapatero admitted that he would have 'not accepted the gift had he known what he knew now. He said, "Looking back I probably would have taken another decision." The?jewellery? is part of a larger investigation, which also alleges that Zapatero benefited from his influence in securing the state-backed bailout of?airline Plus Ultra. He denies these allegations. Zapatero's remarks on Thursday were dismissed by the opposition People's Party. PP spokesperson 'Ester Munoz' said Zapatero has "every?right? to lie but he?hasn?t answered any questions or doubts that Spaniards may have had? about the case.
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Aramco offers additional crude oil cargoes to the Mediterranean amid Red Sea threat, sources claim
Five trading sources have confirmed that Saudi Aramco is offering additional 'crude' cargoes to be loaded from Egypt's Mediterranean port Sidi Kerir. This comes as a result of?Houthi threats against?Saudi shipping, which raises risks for Red Sea exports southbound through the Bab el-Mandeb strait. Two sources confirmed that the cargoes are being sold on a spot-basis, and will be supplementing Aramco's long-term buyers. Aramco supplies a few customers in Europe and North America from Sidi Kerir. The additional volumes indicate that the company wants to be more flexible in its approach after the Houthis in Yemen vowed an attack on Saudi crude exports traveling through the Bab el-Mandeb strait, at the southern 'end' of the Red Sea. Aramco has declined to comment. Saudi state media reported later that the vessel caught fire after the attack. Since the Iran 'war caused disruptions to Gulf exports through the Strait of Hormuz, Saudi Arabia has increased its crude exports from its Red Sea Port of 'Yanbu.
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Sources say that drones attacked two oil tanks near the Black Sea CPC terminal in Russia.
Three industry sources reported on Thursday that drones had attacked two more oil tankers as they approached the terminal of 'the Caspian Pipeline Consortium,' on 'Russia's shores' of 'the Black Sea. This has further harmed prospects for exports to Kazakhstan, who uses this outlet. Authorities alleged that the closure of the terminal earlier this week, which accounts for more than 80 percent of Kazakhstan's oil exports, was due to safety concerns. This forced Kazakhstan to reduce its oil production. Sources said that the CPC should have provided oil to the HERA and ALATAU tanks. HERA, however, was set ablaze and damaged in the drone attack. ALATAU changed its course despite being?unharmed. CPC declined to comment. In the past few days, five tankers were attacked near the terminal. Satellite images show that there were no tankers at the CPC terminal in Novorossiysk, Russia on Thursday morning. Reporting by Kirsten Doovan; Editing by Kirsten D.
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Union Pacific reports higher quarterly profit due to strong freight demand
Union Pacific announced a 'rise' in its second-quarter profits on Thursday as a result of?strong freight demand? and pricing gains? that overshadowed an increase in operating expenses? U.S. Railroads have benefited from their pricing power and operational discipline. They have also improved network reliability and performance on time to support freight volumes and attract more business. West Coast Railway's net income for the second quarter was up 6.6% to $2 billion or $3.36 a share from $1.9billion or $3.15 a share compared to a year ago. The company's revenue increased 12% from the previous year to $6.86 billion. The freight revenue of the company also increased 12%, to $6.52 billion. Fuel costs are still a major challenge for transportation firms after the U.S. and Israeli strikes on Iran. These strikes have sent energy 'prices soaring, which has squeezed margins in all sectors, from trucking to logistics, and even airlines, causing one of the largest disruptions since the COVID-19 pandemic. The average U.S. gasoline price rose to $4 per gallon for the first time in?more than three years in March, marking the largest monthly increase since decades. Fuel-intensive industries are under pressure as prices remain at $4 per gallon. The shares of the company rose marginally during premarket trading.
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EU urges Houthis not to attack in Red Sea
Kaja Kallas, EU's foreign policy chief, said that Iran's Houthi ally in Yemen must stop all actions?that endanger?international?shipping?and the lives of?seafarers?. Kallas stated that recent threats by Yemeni Houthis of imposing a maritime blocade against Saudi Arabia "poses a direct threat to the regional stability and constitutes a dangerous escalated situation". The Houthis said on Thursday that they had struck two "Saudi oil tanks" as part of a blockade against Saudi Arabia. This could create a second chokepoint for global oil supply alongside the Strait of Hormuz. Kallas called such attacks "unacceptable", and said they inflamed an already fragile situation. The EU's top diplomat said that navigation must be unimpeded in the Strait?of?Hormuz as well as the Red Sea. She added that the EU's ASPIDES naval operations remained committed in protecting freedom of navigation in the Red Sea and surrounding international waters.
Zelenskiy, a Ukrainian official, says that Raytheon is interested in producing interceptors.
Volodymyr Zelenskiy, Ukrainian president, said that the U.S. aerospace company Raytheon expressed interest in a joint production of Patriot interceptors. Kyiv is seeking to strengthen air defences as it tries to counter escalating Russian missile attacks. Zelenskiy said on X that he was grateful for the willingness of the company to take our partnership to a?higher level. This would allow Ukraine to co-produce with RTX some of the most important air defense assets –?Patriot interceptors.
Ukraine has?asked for help? from its Western partners to build up interceptors that can down Russian ballistic rockets. It also sought agreement on securing an licence. U.S. president Donald Trump announced during the NATO summit held in Turkey earlier this month that Washington will grant Ukraine a licence to manufacture Patriot missiles interceptors.
Zelenskiy stated that discussions with the Raytheon delegation led by Vice-President Joseph DeAntona also focused on "other areas of partnerships regarding non offensive?military?equipment." Zelenskiy held a meeting with U.S. Ambassador to NATO Matthew Whitaker on Wednesday in Kyiv. The discussion focused on licenses and Zelenskiy said that he wanted "faster actions and greater support" by Kyiv’s partners. (Reporting by Ron Popeski; Editing by Sanjeev Miglani)
(source: Reuters)