Trump Wants Them to Pay Their Fair Share. The Energy Report 01/16/2026

Democrats are always saying that they want the millionaires and billionaires to pay their fair share so I can only assume that they will cheer President Trump’s plan to make big tech pay their fair share in rebuilding the power grid. Naureen Malik at Bloomberg and the Wall Street Journal both are reporting that the Trump Administration today will propose that the nation’s largest power grid operator hold an emergency auction in which tech companies would have to bid to build new power plants. This move is to increase the affordability for consumers of electricity because the artificial revolution has been a major reason why electricity prices, unlike other energy prices, have been on the rise.

This move is going to be what the journal calls an unprecedented attempt by the federal government to check rising prices within the PJM Interconnection which is the largest regional transmission organization (RTO) in the United States. It coordinates the movement of wholesale electricity, operates competitive markets, and ensures grid reliability across a massive region. And manages the high-voltage electric grid serving approximately 67 million people in all or parts of 13 states (Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia) and the District of Columbia. Headquartered in the Philadelphia area, it acts as a neutral, independent operator.

This move is aimed at keeping electricity prices from spiraling out of control as these data centers continue to demand more power. President Trump believes that they should have a role in building this infrastructure because the Magnificent 7—companies like Alphabet, Amazon, Meta, Apple, and Tesla—are expected to make roughly $2 trillion from artificial intelligence this year. While Trump supports their success, he also recognizes that their growing energy demands are driving up costs for consumers, and this plan is his way of alleviating that burden. This approach should benefit both consumers and companies: the companies will need reliable energy, which requires a better power grid, and they will have to help pay for it. The goal is to achieve this without passing higher prices on to consumers.

Although this is unprecedented, similar situations exist in the natural gas market. For example, many companies have interruptible contracts so they use less natural gas when temperatures drop and consumer demand rises. Overall, this is a creative way to address affordability concerns while giving the artificial intelligence revolution an opportunity to help rebuild the power grid for the benefit of both the companies relying on it and the consumers, all while keeping prices lower.

President Trump’s actions in Venezuela are putting downward pressure on prices. You could see that pretty dramatically, especially when the market got a sense that President Trump was not going to attack Iran, and that, of course, put the focus back on the fact that the US is starting to pull in substantial amounts of Venezuelan oil into US refineries and its commanding a fair price and not the usual dictator discount.

Reuters reported that U.S. Energy Secretary Chris Wright said on Thursday the U.S. is getting a 30% higher price for Venezuelan crude oil than Venezuela got before U.S. special forces captured President Nicolas Maduro this month. “We’re getting about a 30% higher realized price when we sell the same barrel of oil than they sold the same barrel of oil three weeks ago,” Wright said at a U.S. Energy Association event. This extra oil that US refiners love to refine is creating a cushion of supply especially if we don’t attack Iran.

Is the market too sure President Trump will not attack Iran this weekend? Reports of increased US military presence in the Middle East could keep investors cautious, especially with the three-day Martin Luther King Jr. holiday approaching. The U.S. military is deploying additional defensive and offensive capabilities to the region in preparation, should President Trump decide to order a strike on Iran.

Despite the possibility for a near term spike in prices, the reality is that President Trump’s foreign policy is going to be a major factor that will keep oil prices from spiraling out of control. Not only do we have more stability in the globe but more supply as well and that should help keep us in this era of lower prices. And with the incredible demand growth that we expect to see over the coming years, we’re going to need that supply to not only feed the artificial intelligence revolution but the growth in our manufacturing sector as well as our trading partners as well. Call Phil Flynn if you want to get involved 888-264-5665.

The other thing that traders are going to watch is this incredible cold front that’s coming back. But now with reports that we saw some LNG outages this week due to planned and unplanned maintenance, the key will be this sustainability of coal to really make a long-term impact on supply.  Yet the further south the storm goes and if the cold dips into Texas, it could impact production if it doesn’t it won’t be as a big impact on the overall supply side of the market.

According to Fox Weather, there is a chance that snow could fall in Florida and Georgia this weekend as freezing temperatures move throughout the South. While the exact amounts are still uncertain, accumulations sufficient for plowing are possible, which could result in major travel disruptions in southern regions that rarely see winter weather. Facts whether it’s also saying beware of falling iguanas if you happen to be where an iguana is. Here in Wisconsin that’s not much of a worry but you never know. 

Yet The Ice Man Cometh as Caleb Williams The ICE MAN will really freeze as my Chicago Bears are set to host and beat the Los Angeles Rams in the NFC Divisional Round playoff game on Sunday, January 18, 2026  at Soldier Field. Fox  Weather is saying that forecasts indicate very cold conditions, with highs in the teens (around 10-18°F) and kickoff temperatures potentially in the single digits or low teens, plus wind gusts that could make wind chills feel like 0°F to -10°F or lower . This would rank among the coldest games in Soldier Field history (possibly top 3-10, depending on exact kickoff temps), and one of the chilliest for the Rams (a warm-weather team). Much Warmer that the 1985 NFC Championship Game (for the 1985 NFL season), where the Chicago Bears defeated the Los Angeles Rams 24-0 at Soldier Field on January 12, 1986. The game-time temperature was around 37 °F (3 °C), with cloudy conditions, snow showers, and wind around 19 mph (leading to a wind chill in the mid-20s °F). Some recollections describe it as cold and blustery, with late-game snow flurries adding to the atmosphere (though one account humorously called the “snow” confetti from George Halas). GO Bears! 😊!

To keep up with these latest breaking weather moves that is moving the natural gas market, download the Fox Weather app to keep up with the latest at the same time stay tuned to the Fox Business Network the only network that is invested in you. Also make sure you sign up for the Phil Flynn Daily Trade Levels as well as the manic metals report by calling 888-264-5665 or emailing pflynn@pricegroup.com.

 

Thanks,

Phil Flynn

Senior Market Analyst & Author of The Energy Report

Contributor to FOX Business Network

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