Transition Finance Weekly - 11/7/2025

Electricity Affordability Drove Elections; Illinois Advances Clean Energy & Transit; California Insurance “Fix”

Nov 07, 2025

Exploring the policy, politics, and economics of the clean energy transition

Each week here in Transition Finance Weekly, researchers and analysts from Pleiades Strategy summarize the top stories and trends related to the policy, politics, and economics of the clean energy transition in the states.

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1. “Wide Open Door” for Candidates To Win on Electricity Costs

Democrats focused on bringing down costs — especially through clean electricity and housing — won office Tuesday night in a wave election.

In Virginia, Abigail Spanberger was elected governor, and Democratic State Sen. Ghazala Hashmi was elected lieutenant governor. Spanberger’s Energy Affordability Plan calls for expanding local clean generation, supporting “virtual power plants” to make the grid more resilient, and ensuring data centers don’t drive up energy costs for residents. Together, Spanberger and Hashmi are expected to push policies that pair reliability and decarbonization with affordability for Virginia families.
In New Jersey, Mikie Sherrill won the governor’s race after running on an Affordability Agenda focused on lowering utility bills and building clean-energy infrastructure. Her plan emphasizes investments in renewables, grid modernization, and efficiency programs that create local jobs while reducing long-term costs for households.
In New York City, Zohran Mamdani won the mayor’s race, while Mark Levine was elected city comptroller. Levine has pledged to unite blue-state pension funds to accelerate climate investment and to protect those funds from long-term climate risks, advancing work begun by outgoing comptroller Brad Lander and signaling a continued active role for New York City in the national clean energy transition.
And in Georgia, Democrats Alicia Johnson and Peter Hubbard flipped two seats on the Public Service Commission, the first time Democrats have won statewide constitutional offices in Georgia in twenty years. The landmark victory will give renewables advocates a stronger voice in how the state regulates utilities and plans future investments.

Frances Sawyer, in Vox: “Who sits in these chairs is deeply important to how states are navigating these big questions that affect folks’ lives. It is just a huge sign that Georgians are fed up with rate hikes. They’re fed up with high bills and ready for a public service commission leadership that takes navigating the clean energy transition and household finances deeply seriously.”

2. From 2023-2024, Michigan’s Renewables Capacity Increased by 30%

With renewables expected to double by 2030, Michigan is ramping up after passing their statewide RPS.

According to the Michigan Public Service Commission’s latest Annual Status of Renewable Energy report, the state added 1,698 MW of renewable energy to the grid in 2024, bringing total capacity to 7,580 MW, a 28.9% increase over 2023. Solar continues to drive the growth, while distributed generation (DG) capacity also climbed 17%, from 189 MW to 222 MW.
The MPSC projects that by the end of 2025, Michigan will have 8.3 GW of renewables online, and by 2030, that number will more than double to 17.8 GW — even in the absence of additional federal tax incentives.
In 2023, Michigan legislated a statewide requirement for utilities to deliver 50% renewable power by 2030 and 60% by 2035 on the road to a 100% clean energy system by 2040.

3. Illinois Passes Clean Energy & Transit Funding Bills in Veto-Session Finale

In the final hours of Illinois’ fall veto session, legislators passed two major measures shaping the state’s energy and transportation future.

The Clean & Reliable Grid Act (CRGA) creates incentives for grid-scale batteries, enhanced geothermal, and virtual power plants, building on the state’s 2017 and 2021 solar and wind programs. The Illinois Power Agency projects $9.7 billion in storage development over 20 years, which is expected to save customers $13.4 billion as energy storage stabilizes prices. Batteries let the grid “triage” energy across time, flattening electricity costs in ways other technologies can’t.
Lawmakers also approved a $1.5 billion transit funding package to prevent Chicago Transit Authority, Metra, and Pace transit service cuts and layoffs, filling a $202 million 2026 budget gap. Gas tax dollars will support public transportation, and governance is restructured with a 20-member Northern Illinois Transit Authority board. As transportation emissions continue to rise as a share of the total, robust transit is a key climate strategy.
Meanwhile, Governor JB Pritzker’s proposal to increase insurance regulation failed, highlighting ongoing battles over consumer protections.

“As a result families will save money from lower transportation costs, the state’s economy will grow thanks to the large return on investment transit yields, and Illinois will continue to reduce greenhouse gas emissions,” writes Micheál Podgers of Climate Cabinet.

4. Ratepayers Out $80 Million As The Administration Forces Coal Plants To Stay Open

The move underscores how politics can override rational energy planning and inflate costs.

The Trump administration is racking up costs for Midwestern electricity customers by keeping aging coal plants online well past their planned retirements. A Department of Energy emergency order forced Consumers Energy to continue operating the massive J.H. Campbell coal plant on Lake Michigan, even though the grid didn’t need the electricity and operator Consumers Energy had planned to close it.
The result: at least $80 million in added costs since May, which Consumers Energy will be permitted to recover from ratepayers across the Midwest. EPA data shows that during the 131 days covered by the DOE order, two of Campbell’s three units didn’t need to operate on about 30 days, and the third ran on only 18 days, meaning much of the “extra” energy wasn’t even used. At current rates, the unnecessary operation is costing customers roughly $160,000 per day.

“Forcing this unnecessary coal plant to keep operating is bilking consumers for the benefit of the coal industry,” said Michael Lenoff, senior attorney for Earthjustice.

5. California’s Insurance “Fix” Isn’t Fixing Anything

Recent efforts to make fire-prone areas insurable have fallen short.

Backers of a regulatory compromise promised that insurers would write policies in high-risk zones covering at least 85% of their statewide market share, but a new New York Times investigation found that a web of industry-negotiated loopholes has all but nullified that guarantee.
As written, the rules let insurers concentrate coverage in safer areas and continue to cancel policies in risky areas while technically meeting the rules, sending FAIR Plan enrollment spiking rather than shrinking it. Analysts also flagged the state’s determination of “distressed” ZIP codes: many extend far beyond the most fire-prone zones, allowing insurers to avoid serving truly high-risk communities. For example, the 90063 ZIP code in East Los Angeles barely overlaps with at-risk land and none of the homes in that sliver face real fire danger.
The investigation shows insurers are exploiting loopholes to sidestep high-risk coverage, leaving homeowners without real options and undermining the law’s intent. California promised protection, but homeowners aren’t getting it.

“I can’t go to the grocery store or walk into a coffee shop or go to a Rotary meeting where there isn’t a couple or three folks who have a horrific story about being nonrenewed,” said Mike McGuire, the California State Senate leader, who represents Lake County.

6. FEMA Must Factor Solar and Distributed Energy into Puerto Rico Grid Rebuild

A court ruled FEMA can’t just keep leaning on fossil fuels; renewables must be part of Puerto Rico’s future.

A federal court has ruled that FEMA violated federal law by failing to consider rooftop solar, storage, and other distributed renewable energy options in Puerto Rico’s hurricane-vulnerable grid rebuild. The court ordered the agency to prepare an environmental impact statement analyzing these alternatives alongside traditional fossil fuel solutions.
The situation highlights a critical problem: most Puerto Ricans still rely on a fossil fuel-based grid that is “inadequate, unreliable, and extremely vulnerable to weather events,” according to the court. With climate change intensifying storm damage, that vulnerability has only grown. The decision follows Hurricane Erin in August 2025, which left thousands without power, and underscores ongoing delays in deploying funds Congress allocated after Hurricane Maria.
By requiring FEMA to evaluate distributed renewables, the court opens the door to a more resilient, climate-ready energy system for Puerto Rico, which could keep communities powered even when conventional centralized infrastructure fails.

”This decision shatters the misconception that there is only one way to transform the electrical system and, on the contrary, recognizes that the alternative we have promoted for years — a renewable, distributed system — is viable and should be seriously considered when allocating public funds,” said Federico Cintrón Moscoso, program director of El Puente de Williamsburg’s Latino Climate Action Network in Puerto Rico.

SPOTLIGHT: Homeowners Dropped at Record Rates in Florida and California

Homeowners in Florida and California faced unprecedented insurance upheaval in 2024, according to Weiss Ratings. An analysis of NAIC data shows policy nonrenewal rates were 2.9 times higher than in 2018, driven largely by climate-fueled disasters.

Florida, where storms pose the primary risk, led the nation with a 3.35% nonrenewal rate, closely followed by California at 3.18%, where wildfire risk dominates. In 2018, California’s nonrenewal rate was just 0.82%, showing just how acutely a series of multibillion-dollar wildfire events has stressed the insurance market.

The data paints a stark picture: as extreme weather intensifies, millions of homeowners are losing access to coverage, leaving families and communities increasingly exposed.