The energy industry's policy wish list is piling up in the face of skyrocketing power demand from AI, electrification and chips manufacturing, Nick writes.

Why it matters: Energy companies are fretting a lot about demand right now.

• They want a permitting overhaul that makes it easier to build transmission and policies to keep the lights on as the grid becomes more distributed.

Nick's been interviewing execs and listening to testimony central to this evolution. Here's what they say …

Ben Fowke, interim CEO of American Electric Power Co., thinks utilities will have to spend "hundreds of billions of dollars" to keep up with power demand driven by AI data centers.

• That means it's time for Congress "to think bigger and more comprehensively" about grid policy, he told Senate ENR yesterday.
• He also offered a pretty stark message to the GOP in an election year: "Repealing the Inflation Reduction Act would make it more costly to serve growing demand."

Jim Murphy, president of Invenergy, told Nick that AI and electrification are "really pushing the need for an all-of-the-above energy policy."

• "Transmission is the key to the puzzle," he said.
• He's skeptical that advanced nuclear reactors are the answer: "The length of time necessary to develop and construct nuclear is still many, many, many years."

Barry Powell, head of Siemens' North American electrical products business, told Nick that data center water use will "become another major political topic" in the next decade.

• That's because AI chips run hotter than those in conventional data centers.
• On the energy side, he said, "Over time, you're gonna see a lot more localized generation."

Scott Harden, CTO of Schneider Electric, is also betting on a more distributed future grid. But he sees policy challenges to deploying the AI-infused grid management tech that his company develops for utilities.

• The North American Electric Reliability Corp.'s infrastructure standards — the security guidepost for utilities — don't allow for those systems to be deployed virtually on the cloud.
• "That has to change, and I think it will."
• And Harden thinks utilities should be able to make customers pay for digital tools "in the same way that they would if they were going to invest in a peaker plant."

Democrats are asking the Justice Department to investigate oil companies for deceptive climate claims after a multiyear investigation, Nick writes.

Why it matters: This doesn't guarantee a tobacco-style federal case, but Democrats are offering access to thousands of internal industry documents gathered via subpoena.

Driving the news: Sen. Sheldon Whitehouse and Rep. Jamie Raskin wrote Attorney General Merrick Garland today to "formally refer" their climate disinformation probe to the feds.

• Whitehouse suggested they'd let DOJ examine documents the committees haven't put out publicly: "We also let them know that there's a whole lot more documents for them to look to if they wish."
• Justice didn't immediately respond to a request for comment.

Zoom in: The Democrats allege oil companies are "using deceptive practices to entrench the use of fossil fuels."

• That includes selling natural gas as a "bridge fuel" and advertising low-carbon technology despite internal doubts about its viability.

The other side: API spokesperson Andrea Woods said the move is "another unfounded political charade to distract from persistent inflation and America's need for more energy, including oil and natural gas."

• Others involved in the inquiry — the U.S. Chamber of Commerce, BP, Shell, Exxon and Chevron — didn't immediately respond to comment requests.

Our thought bubble: This is but one part of the fresh election-year pressure Democrats are putting on the oil industry.

• House E&C Dems also said today they're launching an investigation into oil companies "colluding" to drive up prices.
• Raskin would likely be in charge of House Oversight next year if Dems take the House, so we could see him deepen both these lines of inquiry.

🗓️ 1. Approps floor fun: The House is expected to take up appropriations bills next month, but Interior and Energy-Water aren't coming until mid- or late July, according to Axios' Juliegrace Brufke.

🔥 2. Burning furnaces: The Senate yesterday approved a Congressional Review Act resolution disapproving an EPA rule on furnace energy efficiency, much to the chagrin of climate advocates.

🔌 3. Yet another CRA: Brett Guthrie introduced a CRA resolution going after EPA's effluent discharge regulation on power plants. Given his status on E&C, we think this is one to watch.

🍪 4. Supply chain champs: Senate Commerce Chair Maria Cantwell introduced her companion version of House-passed legislation that would create a federal supply chain resilience response program.

⛽️ 5. Gas going out: The Biden administration is unleashing almost 1 million barrels of gasoline from reserves in the northeastern U.S. created after Hurricane Sandy, which will essentially close the stockpile.

💧 6. WRDA you doing: Senate Environment and Public Works unanimously advanced its 2024 water resources bill this morning.