A hot inflation report sent the 10-year Treasury back above 5%. Washington advanced permitting reform and PJM fast-tracked 1.7 GW in Pennsylvania, but the fastest relief for building owners still comes from what they control onsite.
The electricity index rose 0.9% in October alone according to the U.S. Bureau of Labor Statistics (BLS), more than twice the 0.4% increase in overall consumer prices. Energy rose 0.7% after a 5.2% jump in September. The report, released November 10, lands as owners are still sorting through the midterm results, and is moving markets faster than the election did.
Key Facts at a Glance
Consumer prices: All items rose 0.4% in October and core prices 0.3%. Energy rose 0.7% and electricity 0.9%. BLS did not publish 12-month changes because October 2025 data were not collected during the government shutdown (BLS).
Treasury yields: The 10-year yield rose back above 5% on November 10 after the inflation report, up from a two-month low near 4.84% on November 5 (Trading Economics).
Federal Reserve: Gov. Christopher Waller said he would support a half-point increase in December if inflation keeps accelerating, and Dallas Fed President Lorie Logan backed at least two more quarter-point increases (Trading Economics).
Commercial real estate returns: MetLife Investment Management forecasts gross unlevered returns of 5.0% in 2026 and 6.4% in 2027 as low construction pipelines limit new supply.
Permitting: The Senate advanced the Bipartisan American Affordability and Jobs Act 73-25 on a cloture vote on November 9 (RTO Insider).
Inflation Puts Rate Hikes Back on the Table
Last week the bond market gave owners a break. This week it took it back. Yields climbed after the October report showed both headline and core prices above expectations, and two Federal Reserve officials made the case for more increases. Markets now treat a December hike as the likely outcome.
The longer view is brighter. MetLife Investment Management expects gross unlevered returns to improve from 5.0% this year to 6.4% in 2027, because so little new space is under construction. That puts a premium on existing buildings, and among existing buildings, on those that can hold operating costs steady while electricity rises faster than everything else.
Washington Moves on Permits; the Queue Moves on Its Own Clock
The Senate cleared the 60-vote threshold for the permitting bill with room to spare. The bill sets deadlines for federal environmental reviews, limits lawsuits over federal permits and requires new data centers of 20 MW or more to pay for their grid upgrades. “Americans can’t afford to wait for lower electricity prices,” said Sen. Martin Heinrich (D-N.M.), a cosponsor; a spokesperson for House Minority Leader Hakeem Jeffries (D-N.Y.) said the bill “falls short” in a number of areas, the Associated Press reported. Final Senate passage and House action are still ahead. Most grid connections run through regional operators and utilities, on their own timelines.
PJM Interconnection showed what a faster path looks like, and how narrow it is. On November 5, Pennsylvania announced that three projects totaling about 1.7 GW were selected for PJM’s new Expedited Interconnection Track, including 1.36 GW of battery storage at Engie’s French Creek site in Crawford County and DESRI’s Little Blue site in Beaver County. PJM expects to finish each review in about 12 months, less than half the usual time, with power online by mid-2029. Projects must be at least 250 MW and carry state backing. The track adds regional capacity by 2029. Buildings waiting on a new transformer or service upgrade need faster tools.
The Case for Building the Grid From the Edge
A study released November 5 by The Brattle Group for The Pew Charitable Trusts puts a number on the alternative. Removing policy barriers to distributed energy could add more than 400 GW of onsite and local resources by 2050 and avoid $614 billion in U.S. power system costs, about half the projected increase in household bills. Three changes, planning for distributed resources in distribution systems, cutting permitting costs and reforming interconnection, account for $266 billion of that. “DERs can provide a significant new energy supply if barriers to their adoption are removed,” said Maureen Quinlan, who leads Pew’s grid work.
The market is already moving. GridPoint plans 2 GW of batteries across more than 20,000 commercial buildings to cut demand charges, which often make up 30% to 50% of a bill. EVgo plans a 750 kW charging architecture for 2027 and agreements for more than 900 fast chargers at grocery centers. Charging operators are consolidating to offer owners turnkey service: Hypercharge Networks acquired multifamily provider REVS Charging, and Leotek, a unit of Taiwan’s Lite-On Technology, agreed on October 2 to acquire charging software company AmpUp in a stock deal. Meanwhile, voters approved limits in nearly all of 41 local data center measures in the November 3rd midterm elections. Large single loads face more resistance; distributed resources spread across many buildings face less.
Two Markers Worth Watching: Connecticut and Denver
Connecticut is building the local version of that fix. State regulators directed Eversource and United Illuminating in 2025 to design a flexible interconnection program, which lets solar and storage projects connect to existing lines in exchange for limiting output when a local circuit is congested. The approach “shortens interconnection timelines and lowers grid upgrade costs,” according to the Great Plains Institute. The utilities proposed different paths this spring: Eversource favors a scheduled stage, with set times and output limits, until its grid management software is in place, while United Illuminating, which has piloted the technology, would move directly to real-time control. The draft applied to projects larger than 500 kW. For owners, flexible interconnection means a rooftop or parking-lot system can connect without paying for a full upgrade first.
Denver shows the compliance side of the same equation. The city updated its Energize Denver building performance rules effective August 27, adding flexibility on deadlines, alternate compliance paths and phased improvement plans. A federal judge this fall allowed a challenge by apartment, hotel and commercial real estate groups to proceed against Denver’s building performance standards while dismissing the challenge to its appliance rules, and the United States intervened in support of the challengers. The rules remain enforceable while the case continues, according to the law firm Otten Johnson. Lenders are already pricing it in: Otten Johnson reports that a June 23 Freddie Mac bulletin allows lenders to ask about Energize Denver benchmarking and compliance plans during underwriting and to require reserves or escrows when a property is off track. Compliance now shows up in the loan terms, which makes efficiency and onsite energy upgrades a financing issue as well as an operating one.
When the grid moves slowly, the building that manages its own peak, its own financing and its own flexibility sets its own timeline.
Three Levers Owners Control
Cut the peak. Batteries and load controls lower demand charges, the part of the bill that grows fastest when capacity is scarce.
Fix the cost of capital. Commercial Property Assessed Clean Energy (C-PACE) financing carries fixed rates over long terms, a hedge when the 10-year is back above 5%.
Join the programs that pay. Utility storage solicitations, demand response and flexible interconnection programs reward buildings that can adjust their load.
Three Actions for This Week
Add October’s 0.9% electricity increase to 2027 operating budgets and check which leases pass utility costs through to tenants.
Rerun refinancing scenarios for 2027 maturities with a 10-year above 5% and a December rate increase.
Ask your utility which distributed energy or demand response programs are open for 2027 enrollment.
See You in Houston - May 2027
We are excited to announce our second annual ChargedUp! Pavilion at the American Planning Association’s 2027 National Planning Conference (NPC27), May 15 to 18 in Houston, TX. Houston sits at the center of the country’s energy economy, and the conference program includes a dedicated track on climate change, energy and the environment. The Pavilion will bring together planners, developers, utilities and the companies building distributed energy, the people who decide where power goes and the people who decide where buildings go. More to follow.
The Bottom Line
Electricity is rising faster than prices overall, and capital costs are rising with it. Federal permitting reform and fast-track interconnection help the grid over years. Owners who manage their own peak demand, lock in long-term capital and enroll their flexibility in paid programs can act this quarter.
Sources
• American Planning Association. “APA Invites Planners to Shape National Planning Conference (NPC27) in Houston.” Aug. 11, 2026. https://planning.org/blog/9333375/apa-invites-planners-to-shape-national-planning-conference-npc27-in-houston/
• American Public Power Association (Paul Ciampoli). “Report Says Distributed Energy Resources Could Avoid More Than $600 Billion in U.S. Power System Costs Through 2050.” Nov. 6, 2026. https://www.publicpower.org/node/31627
• ArentFox Schiff. “Colorado Ruling Keeps Federal Preemption Challenge to Building Energy Mandates Alive.” Oct. 2026. https://www.afslaw.com/perspectives/energy-cleantech-counsel/colorado-ruling-keeps-federal-preemption-challenge-building
• Associated Press via Bangor Daily News. “Senate Weighs Sweeping Energy Legislation in First Major Action Since Midterm Elections.” Nov. 9, 2026. https://www.bangordailynews.com/2026/11/09/nation/senate-weighs-sweeping-energy-legislation-in-first-major-action-since-midterm-elections
• Charged EVs. “Canadian EV Charging Operator Hypercharge Expands Its US Presence With Acquisition of REVS Charging.” Oct. 26, 2026.
• ChargedUp!. “GridPoint Plans 2 GW of Batteries Across 20,000 Buildings as Onsite Storage Moves Into the Commercial Portfolio.” Nov. 11, 2026.
• Connecticut Public Utilities Regulatory Authority. “Connecticut Distributed Generation Interconnection Working Group Meeting Summary.” March 10, 2026. https://portal.ct.gov/-/media/pura/electric/el-adds/pura-ix-wg-march-10-2026_mtg-summary.pdf?rev=06aca41a89d2451b92737d72f7f2e19d&hash=5C1BEEBCAEF7361BE1F25F3D2C6360ED
• EVgo via U.S. Securities and Exchange Commission. “EVgo Inc. Form 8-K, Exhibit 99.1: Third Quarter 2026 Results.” Nov. 9, 2026. https://www.sec.gov/Archives/edgar/data/0001821159/000182115926000032/exhibit991evgoearningsrele.htm
• Facilities Dive. “GridPoint Adds Onsite Battery Storage to Help Facilities Bring Down Costs.” Nov. 4, 2026. https://www.facilitiesdive.com/news/gridpoint-adds-on-site-battery-storage-to-help-facilities-bring-down-costs/873722/
• GeneOnline News (Lite-On Technology filing). “Lite-On Unit Leotek Electronics USA Announces Acquisition of 100% of AmpUp Inc..” Oct. 2, 2026. https://geneonline.news/光寶科-2301-代子公司leotek-electronics-u-s-a-corporation-公告取得ampup-inc-100股權/
• Great Plains Institute (Aileen Cole and Val Stori). “Connecticut Charts a Path for Flexible Interconnection.” July 29, 2025. https://betterenergy.org/blog/connecticut-charts-a-path-for-flexible-interconnection/
• MetLife Investment Management. “U.S. Commercial Real Estate Chartbook, H2 2026.” Oct. 2026. https://www.metlife.com/investments/global/insights/outlooks-and-market-updates/us-commercial-real-estate-chartbook-h2-2026/
• Mile High CRE. “Energize Denver Adopts Updated Rules.” Sept. 3, 2026. https://milehighcre.com/?p=62048
• Office of Gov. Josh Shapiro, Commonwealth of Pennsylvania. “Shapiro Administration Helps Cut Red Tape for Three Key Energy Projects.” Nov. 5, 2026. https://pa.gov/governor/newsroom/2026-press-releases/shapiro-administration-helps-cut-red-tape-for-three-key-energy-p
• Otten Johnson Robinson Neff + Ragonetti (Klay McDowall), Rocky Mountain Real Estate Law. “Energize Denver Update: Federal Court Challenge and New Lender Requirement.” Oct. 9, 2026. https://www.rockymountainrealestatelaw.com/2026/10/energize-denver-update-federal-court-challenge-and-new-lender-requirement/
• RTO Insider. “Senate Permitting Reform Bill Comfortably Clears Cloture Vote.” Nov. 9, 2026. https://www.rtoinsider.com/151021-senate-permitting-reform-bill-comfortably-clears-cloture-vote/
• T&D World. “Brattle, Pew Report Finds Distributed Energy Resources Could Avoid $614 Billion in U.S. Power System Costs Through 2050.” Nov. 5, 2026. https://www.tdworld.com/distributed-energy-resources/news/55416974/brattle-pew-report-finds-distributed-energy-resources-could-avoid-614-billion-in-us-power-system-costs-through-2050
• Trading Economics. “US 10-Year Treasury Yield Up to 4.9% (news stream, updated Nov. 10).” Nov. 10, 2026. https://tradingeconomics.com/united-states/government-bond-yield/news/598668
• U.S. Bureau of Labor Statistics. “Consumer Price Index Summary, October 2026.” Nov. 10, 2026. https://www.bls.gov/news.release/cpi.nr0.htm