In this week's Market Movers Americas, presented by Ellie Potter:
• Groups comment on FERC transmission proposal
• MISO to release RFP schedule for big grid projects
• Inflation Reduction Act paves way for biofuel growth
• US HRC market watchful of latest price increase
This week, the US Federal Energy Regulatory Commission will begin sifting through the flurry of comments it received from state regulators, grid operators, industry groups and others in response to its proposed electric transmission rule. That massive rulemaking aims to improve regional grid planning and cost allocation processes to help build out needed transmission infrastructure.
The Midcontinent Independent System Operator will release its schedule for issuing requests for proposals for some long-range transmission planning projects by Aug. 24. The first batch of projects, which are worth about $10.3 billion, will help move low-cost renewable energy around much of MISO, but only some of the facilities among the 18 planning projects will be eligible for the competitive developer selection process.
Following the recent passage of the Inflation Reduction Act, US renewable energy producers are celebrating the enormous investment in climate and energy. That law contains provisions that will help many undercapitalized companies fund increased biofuel industry growth, such as a provision clearing up the disposition of the key $1/gal federal blenders tax credit. The package also extends the expiration date from December 2022 to December 2024.
Participants in the US hot-rolled coil steel market continue to keep a close watch on pricing to see if the latest increase announced by Nucor gains traction or merely serves to stem the tide of the ongoing price erosion. US hot-rolled coil prices have fallen roughly 47% since hitting a year-high peak of $1,500/st in mid-April.
I'm Ellie Potter. Thanks for kicking off your Monday with S&P Global Commodity Insights.