Electricity News in May 2018
Poland’s largest power group opts to back wind over nuclear
Poland Offshore Wind Energy accelerates as PGE exits nuclear leadership, PKN Orlen steps in, and Baltic Sea projects expand to cut coal reliance, meet EU emissions goals, attract investors, and bridge the power capacity gap.
Key Points
A shift from coal and nuclear to Baltic offshore wind to add capacity, cut EU emissions, and attract investment.
✅ PGE drops lead in nuclear; pivots $10bn to offshore wind.
✅ PKN Orlen may assume nuclear role; projects await approval.
✅ 6 GW offshore could add 60b zlotys and 77k jobs by 2030.
PGE, Poland’s biggest power group has decided to abandon a role in building the country’s first nuclear power plant and will instead focus investment on offshore wind energy.
Reuters reports state-run refiner PKN Orlen (PKN.WA) could take on PGE’s role, while the latter announces a $10bn offshore wind power project.
Both moves into renewables and nuclear represent a major change in Polish energy policy, diversifying away from the country’s traditional coal-fired power base, as regional efforts like the North Sea wind farms initiative expand, in a bid to fill an electricity shortfall and meet EU emission standards.
An unnamed source told the news agency, PGE could not fund both projects and cheap technology had swung the decision in favour of wind, with offshore wind competing with gas in some markets. PGE could still play a smaller role in the nuclear project which has been delayed and still needs government approval.
#google#
A proposed law is currently before the Polish parliament aiming at facilitating easy construction of wind turbines, mindful of Germany’s grid expansion challenges that have hindered rollout.
If the law is passed, as expected, several other wind farm projects could also proceed.
Polenergia has said it would like to build a wind farm in the Baltic by 2022. PKN Orlen is also considering building one.
PGE said in March that it wants to build offshore windfarms with a capacity of 2.5 gigawatts (GW) by 2030.
Analysts and investors say that offshore wind farms are the easiest and fastest way for Poland to fill the expected capacity gap from coal, with examples like the largest UK offshore wind farm coming online underscoring momentum, and reduce CO2 emissions in line with EU’s 2030 targets as Poland seeks improved ties with Brussels.
The decision to open up the offshore power industry could also draw in investors, as shown by Japanese utilities’ UK offshore investment attracting cross-border capital. Statoil said in April it would join Polenergia’s offshore project which has drawn interest from other international wind companies. “
The Polish Wind Energy Association (PWEA) estimates that offshore windfarms with a total capacity of 6 GW would help create around 77,000 new jobs and add around 60 billion zlotys to economic growth.
Related News
EDP Plans to Reject $10.9 Billion-China Three Gorges Bid
EDP Takeover Bid Rejection signals pushback on China Three Gorges' acquisition bid, as investors, shareholders, and analysts cite low premium, valuation concerns, and strategic renewables assets across Portugal, the US, Brazil, and Europe utilities.
Key Points
EDP's board views China Three Gorges' 3.26 euro per share offer as too low, citing valuation and renewables exposure.
✅ Bid premium 4.8% above close seen as inadequate.
✅ Stock surged above offer; market expects higher price.
✅ Advisors UBS and Morgan Stanley guiding EDP.
EDP-Energias de Portugal SA is poised to reject a 9.1 billion euro ($10.9 billion) takeover offer from China Three Gorges Corp. on the grounds that it undervalues Portugal’s biggest energy company, according to people with knowledge of the matter.
The board of EDP, which may meet as early as this week, views the current bid of 3.26 euros a share as too low as it indicates a premium of 4.8 percent over Friday’s close, said the people, asking not to be identified because the discussions are private. EDP is also working with advisers including UBS Group AG and Morgan Stanley on the potential deal, they said.
Representatives for EDP, UBS and Morgan Stanley declined to comment. Representatives for Three Gorges didn’t immediately respond to requests for comment.
#google#
Shares of EDP surged the most in a decade to above the bid level on Monday, signaling that investors expect the Chinese utility, which is its biggest investor, to sweeten the offer to gain full control. For Three Gorges, which spent two decades building a hydro-power plant spanning China’s Yangtze River, the deal would bolster its efforts to expand abroad and give it deeper access to markets in Europe, the U.S. and Brazil.
China’s biggest renewable-energy developer already is the largest shareholder of EDP with a 23 percent stake and now is seeking more than 50 percent. While the government in Lisbon has indicated it’s comfortable with the Chinese offer, EDF electricity price deal illustrates policy dynamics in the region and it holds out little incentive for shareholders to tender their stock.
Stock Jumps
Shares of EDP rose 9.3 percent to 3.40 euros in Lisbon on Monday, even as rolling back European electricity prices remains challenging, after earlier jumping by the most since October 2008.
“We believe the price offered is too low for China Three Gorges to achieve full control of a vehicle that provides, among other things, a strategic footprint into U.S. renewables,” Javier Garrido, an analyst at JPMorgan Chase & Co., said in a note. “We expect management and minorities to claim a higher price.”
The offer adds to a wave of investments China has made overseas, both to earn a yield on its cash and to gain expertise in industries ranging from energy to telecommunications and transport. Concern about those deals has been mounting in the U.S. regulatory arena recently. European Union governments have been divided in their response, with Portugal among those most supportive of inward investment.
“China Three Gorges is an ambitious company, with expansion already in international hydro, Chinese onshore wind and floating solar, and European offshore wind,” said Angus McCrone, a senior analyst at Bloomberg New Energy Finance in London. “It may have to do better on bid price than the 5 percent premium so far offered for EDP.”
Fortum’s Troubles
The low premium offered by Three Gorges echoes the struggle Fortum Oyj had in winning over investors in its bid for Uniper SE last year, while North American deals such as Hydro One’s Avista bid faced customer backlash as well, highlighting parallels. The Finnish utility offered 8 billion euros to buy out the remainder of Uniper in September, immediately sending shares of the German power generator above the offer prices. At least for now, Fortum has settled for a 47 percent stake it bought in Uniper from EON SE, and most other shareholders decided to keep their stake.
The EDP transaction would advance a wave of consolidation among Europe’s leading utilities, which are acquiring assets and development skills in renewables as governments across the region crack down on pollution. EDP is one of Europe’s leading developers of renewable energy, building mainly wind farms and hydro plants, and has expanded in markets including Brazil and the U.S. electrification market.
Related News
New Power Grid “Report Card” Reveal Dangerous Vulnerabilities
U.S. Power Grid D+ Rating underscores aging infrastructure, rising outages, cyber threats, EMP and solar flare risks, strained transmission lines, vulnerable transformers, and slow permitting, amplifying reliability concerns and resilience needs across national energy systems.
Key Points
ASCE's D+ grade flags aging infrastructure, rising outages, and cyber, EMP, and weather risks needing investment.
✅ Major outages rising; weather remains top disruption driver.
✅ Aging transformers, transmission lines, limited maintenance.
✅ Cybersecurity gaps via smart grid, EV charging, SCADA.
The U.S. power grid just received its “grade card” from the American Society of Civil Engineers (ASCE) and it barely passed.
The overall rating of our antiquated electrical system was a D+. Major power outages in the United States, including widespread blackouts, have grown from 76 in 2007 to 307 in 2011, according to the latest available statistics. The major outage figures do not take into account all of the smaller outages which routinely occur due to seasonal storms.
The American Society of Civil Engineers power grid grade card rating means the energy infrastructure is in “poor to fair condition and mostly below standard, with many elements approaching the end of their service life.” It further means a “large portion of the system exhibits significant deterioration” with a “strong risk of failure.”
Such a designation is not reassuring and validates those who purchased solar generators over the past several years.
#google#
The vulnerable state of the power grid gets very little play by mainstream media outlets. Concerns about a solar flare or an electromagnetic pulse (EMP) attack instantly sending us back to an 1800s existence are legitimate, but it may not take such an extreme act to render the power grid a useless tangle of wires. The majority of the United States’ infrastructure and public systems evaluated by the ASCE earned a “D” rating. A “C” ranking (public parks, rail and bridges) was the highest grade earned. It would take a total of $3.6 trillion in investments by 2020 to fix everything, the report card stated. To put that number in perspective, the federal government’s budget for all of 2012 was slightly more, $3.7 trillion.
“America relies on an aging electrical grid and pipeline distribution systems, some of which originated in the 1880s,” the report read. “Investment in power transmission has increased since 2005, but ongoing permitting issues, weather events, including summer blackouts that strain local systems, and limited maintenance have contributed to an increasing number of failures and power interruptions. While demand for electricity has remained level, the availability of energy in the form of electricity, natural gas, and oil will become a greater challenge after 2020 as the population increases. Although about 17,000 miles of additional high-voltage transmission lines and significant oil and gas pipelines are planned over the next five years, permitting and siting issues threaten their completion. The electric grid in the United States consists of a system of interconnected power generation, transmission facilities, and distribution facilities.”
Harness the power of the sun when the power goes out…
There are approximately 400,000 miles of electrical transmission lines throughout the United States, and thousands of power generating plants dot the landscape. The ASCE report card also stated that new gas-fired and renewable generation issues increase the need to add new transmission lines. Antiquated power grid equipment has reportedly prompted even more “intermittent” power outages in recent years.
The American Society of Civil Engineers accurately notes that the power grid is more vulnerable to cyber attacks than ever before, including Russian intrusions documented in recent years, and it cites the aging electrical system as the primary culprit. Although the decades-old transformers and other equipment necessary to keep power flowing around America are a major factor in the enhanced vulnerability of the power grid, moving towards a “smart grid” system is not the answer. As previously reported by Off The Grid News, smart grid systems and even electric car charging stations make the power grid more accessible to cyber hackers. During the Hack in the Box Conference in Amsterdam, HP ArcSight Product Manager Ofer Sheaf stated that electric car charging stations are in essence a computer on the street. The roadway fueling stations are linked to the power grid electrical system. If cyber hackers garner access to the power grid via the charging stations, they could stop the flow of power to a specific area or alter energy distribution levels and overload the system.
While a relatively small number of electric car charging stations exist in America now, that soon will change. Ongoing efforts by both federal and state governments to reduce our reliance on fossil fuels have resulted in grants and privately funded vehicle charging station projects. New York Governor Andrew Cuomo in April announced plans to build 360 such electrical stations in his state. A total of 3,000 car charging stations are in the works statewide and are slated for completion over the next five years.
SHIELD ActWeather-related events were the primary cause of power outages from 2007 to 2012, according to the infrastructure report card. Power grid reliability issues are emerging as the greatest threat to the electrical system, with rising attacks on substations compounding the risks. The ASCE grade card also notes that retiring and rotating in “new energy sources” is a “complex” process. Like most items we routinely purchase in our daily lives, many of the components needed to make the power grid functional are not manufactured in the United States.
The SHIELD Act is the first real piece of federal legislation in years drafted to address power grid vulnerabilities. While the single bill will not fix all of the electrical system issues, it is a big step in the right direction – if it ever makes it out of committee. Replacing aging transformers, encasing them in a high-tech version of a Faraday cage, and stockpiling extra units so instant repairs are possible would help preserve one of the nation’s most critical and life-saving pieces of infrastructure after a weather-related incident or man-made disaster.
“Geomagnetic storm environments can develop instantaneously over large geographic footprints,” solar geomagnetic researcher John Kappenman said about the fragile state of the power grid. He was quoted in an Oak Ridge National Laboratory report. “They have the ability to essentially blanket the continent with an intense threat environment and … produce significant collateral damage to critical infrastructures. In contrast to well-conceived design standards that have been successfully applied for more conventional threats, no comprehensive design criteria have ever been considered to check the impact of the geomagnetic storm environments. The design actions that have occurred over many decades have greatly escalated the dangers posed by these storm threats for this critical infrastructure.”
The power grid has morphed in size tenfold during the past 50 years. While solar flares, cyber attacks, and an EMP are perhaps the most extensive and frightening threats to the electrical system, the infrastructure could just as easily fail in large portions due to weather-related events exacerbated by climate change across regions. The power grid is basically a ticking time bomb which will spawn civil unrest, lack of food, clean water, and a multitude of fires if it does go down.
Related News
Military Is Ramping Up Preparation For Major U.S. Power Grid Hack
DARPA RADICS Power Grid Security targets DoD resilience to cyber attacks, delivering early warning, detection, isolation, and characterization tools, plus a secure emergency network to protect critical infrastructure and speed grid restoration and communications.
Key Points
A DoD/DARPA initiative to detect, contain, and rapidly recover the U.S. grid from sophisticated cyber attacks.
✅ Early warning separates attacks from routine outages
✅ Pinpoints intrusion points and malware used
✅ Builds secure emergency network for rapid restoration
The U.S. Department of Defense is growing increasingly concerned about hackers taking down our power grid and crippling the nation, reflecting a renewed focus on grid protection across agencies, which is why the Pentagon has created a $77-million security plan that it hopes will be up and running by 2020.
The U.S. power grid is threatened every few days. While these physical and cyber attacks have never led to wide-scale outages, attacks are getting more sophisticated. According to a 494-page report released by the Department of Energy in January and a new grid report card, the nation’s grid “faces imminent danger from cyber attacks.” Such a major, sweeping attack could threaten “U.S. lifeline networks, critical defense infrastructure, and much of the economy; it could also endanger the health and safety of millions of citizens.” If it were to happen today, America could be powered-down and vulnerable for weeks.
#google#
The DoD is working on an automated system to speed up recovery time to a week or less — what it calls the Rapid Attack Detection, Isolation, and Characterization (RADICS) program. DARPA, the Pentagon’s research arm, originally solicited proposals in late 2015, asking for technology that did three things. Primarily, it had to detect early warning signs and distinguish between attacks and normal outages, especially after intrusions at U.S. electric utilities underscored the risk, but it also had to pinpoint the access point of the attack and determine what malicious software was used. Finally, it must include an emergency system that can rapidly connect various power-supply centers, without any human coordination. This would allow emergency and military responders to have an ad hoc communication system in place moments after an attack.
“If a well-coordinated cyberattack on the nation’s power grid were to occur today, the time it would take to restore power would pose daunting national security challenges,” said DARPA program manager John Everett, in a statement, at the time. “Beyond the severe domestic impacts, including economic and human costs, prolonged disruption of the grid would hamper military mobilization and logistics, impairing the government’s ability to project force or pursue solutions to international crises.”
DARPA plans to spend $77 million on RADICS, while DOE funding to improve the grid complements these initiatives. Last November, SRI International announced it had received $7.3 million from the program. In December, Raython was granted $9 million. The latest addition is BAE Systems, which received $8.6 million last month to develop technology that detects and contains power-grid threats, and creates a secure emergency provisional system that restores some power and communication in the wake of an attack — what is being called a secure emergency network.
According to the military news site Defense Systems, BAE’s SEN would rely on radio, satellite, or wireless internet — particularly as ransomware attacks continue to rise — whatever is available that allows the grid to continue working. The SEN would serve as a wireless connection between separate power grid stations.
While the ultimate goal of the RADICS program will be the restoration of civilian power and communications, the SEN will prioritize communication networks that would be used for defense or combat, so the U.S. government can still wage war while the rest of us are in the dark.
Related News
Study: US Power Grid Has More Blackouts Than ENTIRE Developed World
US Power Grid Blackouts highlight aging infrastructure, rising outages, and declining reliability per DOE and NERC data, with weather-driven failures, cyberattack risk, and underinvestment stressing utilities, transmission lines, and modernization efforts.
Key Points
US power grid blackouts are outages caused by aging grid assets, severe weather, and cyber threats reducing reliability.
✅ DOE and NERC data show rising outage frequency and duration.
✅ Weather now drives 68-73% of major failures since 2008.
✅ Modernization, hardening, and cybersecurity investments are critical.
The United States power grid has more blackouts than any other country in the developed world, according to new data and U.S. blackout warnings that spotlight the country’s aging and unreliable electric system.
The data by the Department of Energy (DOE) and the North American Electric Reliability Corporation (NERC) shows that Americans face more power grid failures lasting at least an hour than residents of other developed nations.
And it’s getting worse.
Going back three decades, the US grid loses power 285 percent more often than it did in 1984, when record keeping began, International Business Times reported. The power outages cost businesses in the United States as much as $150 billion per year, according to the Department of Energy.
Customers in Japan lose power for an average of 4 minutes per year, as compared to customers in the US upper Midwest (92 minutes) and upper Northwest (214), University of Minnesota Professor Massoud Amin told the Times. Amin is director of the Technological Leadership Institute at the school.
#google#
The grid is becoming less dependable each year, he said.
“Each one of these blackouts costs tens of hundreds of millions, up to billions, of dollars in economic losses per event,” Amin said. “… We used to have two to five major weather events per year [that knocked out power], from the ‘50s to the ‘80s. Between 2008 and 2012, major outages caused by weather, reflecting extreme weather trends, increased to 70 to 130 outages per year. Weather used to account for about 17 to 21 percent of all root causes. Now, in the last five years, it’s accounting for 68 to 73 percent of all major outages.”
As previously reported by Off The Grid News, the power grid received a “D+” grade on its power grid report card from the American Society of Civil Engineers (ASCE) in 2013. The power grid grade card rating means the energy infrastructure is in “poor to fair condition and mostly below standard, with many elements approaching the end of their service life.” It further means a “large portion of the system exhibits significant deterioration” with a “strong risk of failure.”
“America relies on an aging electrical grid and pipeline distribution systems, some of which originated in the 1880s,” the 2013 ASCE report read. “Investment in power transmission has increased since 2005, but ongoing permitting issues, weather events, and limited maintenance have contributed to an increasing number of failures and power interruptions.”
As The Times noted, the US power grid as it exists today was built shortly after World War II, with the design dating back to Thomas Edison. While Edison was a genius, he and his contemporaries could not have envisioned all the strains the modern world would place upon the grid and the multitude of tech gadgets many Americans treat as an extension of their body. While the drain on the grid has advanced substantially, the infrastructure itself has not.
There are approximately 5 million miles of electrical transmission lines throughout the United States, and thousands of power generating plants dot the landscape. The electrical grid is managed by a group of 3,300 different utilities and serve about 150 million customers, The Times said. The entire power grid system is currently valued at $876 billion.
Many believe the grid is vulnerable to an attack on substations and other threats.
Former Department of Homeland Security Secretary Janet Napolitano once said that a power grid cyber attack is a matter of “when” not “if,” as Russians hacked utilities incidents have shown.
Related News
LOC Renewables Delivers First MWS Services To China's Offshore Wind Market
Pinghai Bay Offshore Wind Farm MWS advances marine warranty survey best practices, risk management, and international standards in Fujian, with Haixia Goldenbridge Insurance and reinsurer-aligned audits supporting safer offshore wind construction and logistics.
Key Points
An MWS program ensuring Pinghai Bay Phase 2 meets standards via audits, risk controls, and vetted procedures.
✅ First MWS delivered in China's offshore wind market
✅ Audits, risk consultancy, and reinsurer-aligned standards
✅ Supports 250MW Phase 2 at Pinghai Bay, Fujian
LOC Renewables has announced it is to carry out marine warranty survey (MWS) services for the second phase of the Pinghai Bay Offshore Wind Farm near Putian, Fujian province, China, on behalf of Haixia Goldenbridge Insurance Co., Ltd. The agreement represents the first time MWS services have been delivered to the Chinese offshore wind market.
China’s installed offshore capacity jumped more than 60% in 2017, and its growing offshore market is aiming for a total grid-connected capacity of 5GW by 2020, as the sector globally advances toward a $1 trillion industry over the coming decades. Much of this future offshore development is slated to take place in Jiangsu, Zhejiang, Guangdong and Fujian provinces. As developers becoming increasingly aware of the need for stringent risk management and value that internationally accepted standards can bring to projects, Pinghai Bay will be the first Chinese offshore wind farm to employ MWS to ensure it meets the highest technical standards and minimise project risk. The agreement will see LOC Renewables carry out audit and risk consultancy services for the project from March until the end of 2018.
#google#
In recent years, as Chinese offshore wind projects have grown in scale and complexity the need for international expertise in the market has increased, with World Bank support for emerging markets underscoring global momentum. In response, domestic insurers are partnering with international reinsurers to manage and mitigate the associated larger risks. Applying the higher standards required by international reinsurers, LOC Renewables will draw on its extensive experience in European, US and Asian offshore wind markets to provide MWS services on the Pinghai project from its Tianjin office.
“As offshore wind technology continues to proliferate across Asia, driven by declining global costs, successful knowledge transfer based on best practices and lessons learned in the established offshore wind markets becomes ever more important,” said Ke Wan, Managing Director, LOC China.
“With a wealth of experience in Europe and the US, where UK offshore wind growth has accelerated, we’re increasingly working on projects across Asia, and are delighted to now be providing the first MWS services to China’s offshore wind market – services that bring real value in lower risk and will enable the project to achieve its full potential.”
“At 250MW, phase two of the Pinghai Bay Wind Farm represents a significant expansion on phase one, and we wanted to ensure that it met the highest technical and risk mitigation standards, informed by regional learnings such as Korean installation vessels analyses,” said Fan Ming, Business Director at Haixia Goldenbridge Insurance.
“In addition to their global experience, LOC Renewables’ familiarity with and presence in the local market was very important to us, and we’re looking forward to working closely with them to help bring this project to fruition and make a significant contribution to China’s expanding offshore wind market.”
Related News
Disruptions in the U.S. coal, nuclear power industries strain the economy and invite brownouts
Electric power market crisis highlights grid reliability risks as coal and nuclear retire amid subsidies, mandates, and cheap natural gas; intermittent wind and solar raise blackout concerns, resilience costs, and pricing distortions across regulated markets.
Key Points
Reliability and cost risks as coal and nuclear retire; subsidies distort prices; intermittent renewables strain grid.
✅ Coal and nuclear retirements reduce baseload capacity
✅ Subsidies and mandates distort market pricing signals
✅ Intermittent renewables increase blackout and grid risk
Is anyone paying any attention to the crisis that is going on in our electric power markets?
Over the past six months at least four major nuclear power plants have been slated for shutdown, including the last one in operation in California. Meanwhile, dozens of coal plants have been shuttered as well — despite low prices and cleaner coal. Some of our major coal companies may go into bankruptcy.
This is a dangerous game we are playing here with our most valuable resource — outside of clean air and water. Traditionally, we've received almost half our electric power nationwide from coal and nuclear power, and for good reason. They are cheap sources of power and they are highly resilient and reliable.
The disruption to coal and nuclear power wouldn't be disturbing if this were happening as a result of market forces. That's only partially the case.
#google#
The amazing shale oil and gas revolution is providing Americans with cheap gas for home heating and power generation. Hooray. The price of natural gas has fallen by nearly two-thirds over the last decade and this has put enormous price pressure on other forms of power generation.
But this is not a free-market story of Schumpeterian creative destruction. If it were, then wind and solar power would have been shutdown years ago. They can't possibly compete on a level playing field with $3 natural gas.
In most markets solar and wind power survive purely because the states mandate that as much as 30 percent of residential and commercial power come from these sources. The utilities have to buy it regardless of price, even as electricity demand is flat in many regions. What a sweet deal. The California state legislature just mandated that every new home spend $10,000 on solar panels on the roof.
Well over $100 billion of subsidies to big wind and big solar were doled out over the last decade, and even with the avalanche of taxpayer subsidies and bailout funds many of these companies like Solyndra (which received $500 million in handouts) failed, underscoring why a green revolution hasn't materialized as promised.
These industries are not anywhere close to self sufficiency. In 2017 amid utility trends to watch the wind industry admitted that without a continuation of a multi-billion tax credit, the wind turbines would stop turning.
This combines with the left's war on coal through regulations that have destroyed coal plants in many areas. (Thank goodness for the exports of coal or the industry would be in much bigger trouble.)
Bottom line: Our power market is a Soviet central planner's dream come true and it is extinguishing our coal and nuclear industries.
Why should anyone care?
First, because government subsidies, regulations and mandates make electric power more expensive. Natural gas prices have fallen by two-thirds, but electric power costs have still risen in most areas — thanks to the renewable mandates.
More importantly, the electric power market isn't accurately pricing in the value of resilience and reliability. What is the value of making sure the lights don't go off? What is the cost to the economy and human health if we have rolling brownouts and blackouts because the aging U.S. grid doesn't have enough juice during peak demand.
Politicians, utilities and federal regulators are shortsightedly killing our coal and nuclear capacities without considering the risk of future energy shortages and power disruptions. Once a nuclear plant is shutdown, you can't just fire it back up again when you need it.
Wind and solar are notoriously unreliable. Most places where wind power is used, coal plants are needed to back up the system during peak energy use and when the wind isn't blowing.
The first choice to fix energy markets is to finally end the tangled web of layers and layers of taxpayer subsidies and mandates and let the market choose. Alas, that's nearly impossible given the political clout of big wind and solar.
The second best solution is for the regulators and utilities to take into account the grid reliability and safety of our energy. Would people be willing to pay a little more for their power to ensure against brownouts? I sure would. The cost of having too little energy far exceeds the cost of having too much.
A glass of water costs pennies, but if you're in a desert dying of thirst, that water may be worth thousands of dollars.
I'll admit I'm not sure what the best solution is to the power plant closures. But if we have major towns and cities in the country without electric power for stretches of time because of green energy fixation, Americans are going to be mighty angry and our economy will take a major hit.
When our manufacturers, schools, hospitals, the internet and iPhones shut down, we're not going to think wind and solar power are so chic.
If the lights start to go out five or 10 years from now, we will look back at what is happening today and wonder how we could have been so darn stupid.
Related News
IEC reaches settlement on Palestinian electricity debt
IEC-PETL Electricity Agreement streamlines grid management, debt settlement, and bank guarantees, shifting power supply, transmission, and distribution to PETL via IEC-built sub-stations, bolstering energy cooperation, utility billing, and payment assurance in PA areas.
Key Points
A 15-year deal transferring PA grid operations to PETL, settling legacy debt, and securing payments with bank guarantees.
✅ NIS 915 million repaid in 48 installments.
✅ PETL assumes distribution, O&M, and sub-station ownership.
✅ 15-year, NIS 2.8b per year supply and services contract.
The Palestinian Authority will pay Israel Electric NIS 915 million and take over management of its grid through Palestinian electricity supplier PETL.
The Israel Electric Corporation (IEC) (TASE: ELEC.B22) and Palestinian electricity supplier PETL have signed a draft commercial agreement under which the Palestinian Authority's (PA) debt of almost NIS 1 billion will be repaid. The agreement also transfers actual management of the supply of electricity to Palestinian customers from IEC to the Palestinian electricity authority, enabling consideration of distributed solutions such as a virtual power plant program in future planning.
Up until now, the IEC was unable to actually collect debts for electricity from Palestinian customers, because the connection with them was through the PA. Responsibility for collection will now be exclusively in Palestinian hands, with the PA providing hundreds of millions of shekels in bank guarantees for future debts. The agreement, which is valid for 15 years, amounts to an estimated NIS 2.8 billion a year, as of now.
IEC will sell electricity and related services to PETL through four high-tension sub-stations built by IEC for PETL and through high and low-tension connection points, similar to large interconnector projects like the Lake Erie Connector, for the purpose of distribution and supply of the electricity by PETL or an entity on its behalf to consumers in PA territory. PETL will have sole operational and maintenance responsibility for distribution and supply and ownership of the four sub-stations.
NIS 915 million in 48 payments
According to the IEC announcement, the settlement was reached following negotiations following the signing of an agreement in principle in September 2016 by the minister of finance, the government coordinator of activities in the territories, and the Palestinian minister for civilian affairs. The parties reached commercial understandings yesterday that made possible today's signing of the first commercial document of its kind regulating commercial relations - the sales of electricity - between the parties. The agreement will go into effect after it is approved by the IEC board of directors, the Public Utilities Authority (electricity), reflecting regulatory oversight akin to Ontario industrial electricity pricing consultations, and the IDF Chief Electrical Staff Officer. Representatives of IEC, the Ministry of Finance, the Public Utilities Authority (electricity), the government coordinator of activities in the territories, the civilian authority, the PA government, and PETL took part in the negotiations.
The agreement also settles the PA's historical debt to IEC. The PA will begin payment of NIS 915 million in debt for consumption of electricity before September 2016 to IEC Jerusalem District Ltd. in 48 equal installments after the final signing, as stipulated in the agreement in principle signed by the Israeli government and the PA on September 13, 2016.
The PA's debt for electricity amounted to almost NIS 2 billion in 2016. The initial spadework for the current debt settlement was accomplished in that year, after the parties reached understandings on writing off NIS 500 million of the Palestinian debt. The PA paid NIS 600 million in October 2016, and the remainder will be paid now.
It was also reported that an arrangement of securities and guarantees to ensure payment to IEC under the agreement had been settled, including the past debt. IEC will obtain a bank guarantee and a PA guarantee, in addition to the existing collection mechanisms at the company's disposal.
Minister of Finance Moshe Kahlon said, "Signing the commercial agreement is a historic step completing the agreement signed by the governments in September 2016. Strengthening economic cooperation between Israel and the PA is above all an Israeli security interest. The agreement will ensure future payments to the IEC and reinforce its financial position. I congratulate the negotiating teams for the completion of their task."
Minister of National Infrastructure, Energy, and Water Resources Dr. Yuval Steinitz said, "In my meeting last year with Palestinian Prime Minister Rami Hamdallah in Jenin, we agreed that it was necessary to settle the debt and formalize relations between IEC and the PA. The settlement signed today is a breakthrough, both in the measures for payment of the Palestinian debt to IEC and Israel and in arranging future relations to prevent more debts from emerging in the future. With the signing of the agreement, we will be able to make progress with the Palestinians in developing a modern electrical grid, aligning with regional initiatives like the Cyprus electricity highway, according to the model of the sub-station we inaugurated in Jenin."
IEC chairperson Yiftah Ron Tal said, "This is a historic event. In this agreement, IEC is correcting for the first time a historical distortion of accumulated debt without guarantees, ability to collect it, or control over the amount of debt. This anchor agreement not only constitutes an unprecedented financial achievement; it also constitutes an important milestone in regulating electricity commercial relations between the Israeli and Palestinian electric companies, comparable to cross-border efforts such as the Ireland-France interconnector in Europe."
Related News
Will Israeli power supply competition bring cheaper electricity?
Israel Electricity Reform Competition opens the supply segment to private suppliers, challenges IEC price controls, and promises consumer choice, marginal discounts, and market liberalization amid natural gas generation and infrastructure remaining with IEC.
Key Points
Policy opening 40% of supply to private vendors, enabling consumer choice and small discounts while IEC retains the grid.
✅ 40% of retail supply opened to private electricity suppliers
✅ IEC keeps meters, lines; tariffs still regulated by the authority
✅ Expected discounts near 7%, not dramatic price cuts initially
"See the pseudo-reform in the electricity sector: no lower prices, no opening the market to competition, and no choice of electricity suppliers, with a high rate for consumers despite natural gas." This is an advertisement by the Private Power Producers Forum that is appearing everywhere: Facebook, the Internet, billboards, and the press.
Is it possible that the biggest reform in the economy with a cost estimated by Israel Electric Corporation (IEC) (TASE: ELEC.B22) at NIS 7 billion is really a pseudo-reform? In contrast to the assertions by the private electricity producers, who are supposedly worried about our wallets and want to bring down the cost of electricity for us, the reform will open a segment of electricity supply to competition, as agreed in the final discussions about the reform. No less than 40% of this segment will be removed from IEC's exclusive responsibility and pass to private hands.
This means that in the not-too-distant future, one million households in Israel will be able to choose between different electricity suppliers. IEC will retain the infrastructure, with its meter and power lines, but for the first time, the supplier who sends the monthly bill to our home can be a private concern.
Up until now, the only regulatory agency determining the electricity rate in Israel was the Public Utilities Authority (electricity), i.e. the state. Now, in the framework of the reform, as a result of opening the supply segment to competition, private electricity producers will be able to offer a lower rate than IEC's, with mechanisms like electricity auctions shown to cut costs in some markets, while IEC's rate will still be controlled by the Public Utilities Authority (electricity).
This situation differs from the situation in almost all European countries, where the electricity market is fully open to competition and the EU is pursuing an electricity market revamp to address pricing challenges, with no electricity price controls and free switching by consumers between electricity producers, just as in the mobile phone market. This measure has not lowered electricity prices in Europe, where rates are higher than in Israel, which is in the bottom third of OECD countries in its electricity rate.
Regardless of reports, supply will be opened to competition and we will be able to choose between electricity suppliers in the future. Are the private electricity producers nevertheless right when they say that the electricity sector will not be opened to "real competition"?
What is obviously necessary is for the private producers to offer a substantially lower rate than IEC in order to attract as many new customers as possible and win their trust. Can the private producers offer a significantly lower rate than IEC? The answer is no, at least not in the near future. The teams handling the negotiations are aware of this. "The private supplier's price will not be significantly cheaper than IEC's controlled price; there will be marginal discounts," a senior government source explains. "What is involved here is another electricity intermediary, so it will not contribute to competition and lowering the price," he added.
There are already private electricity producers supplying electricity to large business customers - factories, shopping malls, and so forth - at a 7% discount. The rest of the electricity that they produce is sold to the system manager. When supply is opened to competition, it can be assumed that the private suppliers will also be able to offer a similar discount to private consumers.
Will a 7% discount cause a home consumer to leave reliable and familiar IEC for a private producer, given evidence from retail electricity competition in other markets? This is hard to know.
#google#
Why cannot private electricity producers offer a larger discount that will really break the monopoly, as their advertisement says they want to do? Chen Herzog, chief economist and partner at BDO Consulting, which is advising the Private Power Producers Forum, says, "Competition in supply requires the construction of competitive power plants that can compete and offer cheaper electricity.
"The power plants that IEC will sell in the reform, which will go on selling electricity to IEC, are outmoded, inefficient, and non-competitive. In addition, the producer will have to continue employing IEC workers in the purchased plants for at least five years. The producer will generate electricity in IEC power stations with IEC employees and additional overhead of a private producer, with factors such as cost allocation further shaping end-user rates. This amounts to being an IEC subcontractor in production. There is no saving on costs, so there will be no surplus to deduct from the consumer price," he adds.
The idea of opening supply to electricity market competition on such a large scale sounds promising, but saving on electricity for consumers still looks a long way off.
Related News
Hydro One’s takeover of U.S. utility sparks customer backlash: ‘This is an incredibly bad idea’
Hydro One-Avista acquisition sparks Idaho regulatory scrutiny over foreign ownership, utility merger impacts, rate credits, and public interest, as FERC and FCC approvals advance and consumers question governance, service reliability, and long-term rate stability.
Key Points
A cross-border utility merger proposal with Idaho oversight, weighing foreign ownership, rates, and reliability.
✅ Idaho PUC review centers on public interest and rate impacts.
✅ FERC and FCC approvals granted; state decisions pending.
✅ Avista to retain name and Spokane HQ post-transaction.
“Please don’t sell us to Canada.” That refrain, or versions of it, is on full display at the Idaho Public Utilities Commission, which admittedly isn’t everyone’s go-to entertainment site. But it is vitally important for this reason: the first big test of the expansionist dreams of the politically tempest-tossed Hydro One, facing political risk as it navigates markets, rests with its successful acquisition of Avista Corp., provider of electric generation, transmission and distribution to retail customers spread from Oregon to Washington to Montana and Idaho and up into Alaska.
The proposed deal — announced last summer, but not yet consummated — marks the first time the publicly traded Hydro One has embarked upon the acquisition of a U.S. utility. And if Idahoans spread from Boise to Coeur d’Alene to Hayden are any indication, they are not at all happy with the idea of foreign ownership. Here’s Lisa McCumber, resident of Hayden: “I am stating my objection to this outrageous merger/takeover. Hydro One charges excessive fees to the people it provides for, this is a monopoly beyond even what we are used to. I, in no way, support or as a customer, agree with the merger of this multi-billion-dollar, foreign, company.”
#google#
Or here’s Debra Bentley from Coeur d’Alene: “Fewer things have more control over a nation than its power source. In an age where we are desperately trying to bring American companies back home and ‘Buy American’ is somewhat of a battle cry, how is it even possible that it would or could be allowed for this vital necessity … to be controlled by a foreign entity?”
Or here’s Spencer Hutchings from Sagle: “This is an incredibly bad idea.”
There are legion of similar emails from concerned consumers, and the Maine transmission line debate offers a parallel in public opposition.
The rationale for the deal? Last fall Hydro One CEO Mayo Schmidt testified before the Idaho commission, which regulates all gas, water and electricity providers in the state. “Hydro One is a pure-play transmission and distribution utility located solely within Ontario,” Schmidt told commissioners. “It seeks diversification both in terms of jurisdictions and service areas. The proposed Transaction with Avista achieves both goals by expanding Hydro One into the U.S. Pacific Northwest and expanding its operations to natural gas distribution and electric generation. The proposed Transaction with Avista will deliver the increased scale and benefits that come from being a larger player in the utility industry.”
Translation: now that it is a publicly traded entity, Hydro needs to demonstrate a growth curve to the investment community. The value to you and me? Arguable. This is a transaction framed as a benefit to shareholders, one that won’t cause harm to customers. Premier Kathleen Wynne is feeling the pain of selling off control of an essential asset. In his testimony to the commission, Schmidt noted that the Avista acquisition would take the province’s Hydro ownership to under 45 per cent. (The Electricity Act technically prevents the sale of shares that would take the government’s ownership position below 40 per cent, though acquisitions appear to allow further dilution. )
Stratospheric compensation, bench-marked against other chief executives who enjoy similarly outsized rewards, is part of this game. I have written about Schmidt’s unconscionable compensation before, but that was when he was making a relatively modest $4 million. Relative, that is, to his $6.2 million in 2017 compensation ($3.5 million of that is in the form of share based awards).
Should the acquisition of Avista be approved, amendments to the CIC, or change in control agreements, for certain named Avista executive officers will allow them to voluntarily terminate their employment without “good reason.” That includes Scott Morris, the company’s CEO, who will exit with severance of $6.9 million (U.S.) and additional benefits taking the total to a potential $15.7 million.
Back to the deal: cost savings over time could be achieved, Schmidt continued in his testimony, though he was unable to quantify those. The integration between the two companies, he promised, will be “seamless.” Retail customers in Idaho, Washington and Oregon would benefit from proposed “Rate Credits” equalling an estimated $15.8 million across five years, even as Hydro One seeks to redesign its bills in Ontario. Idahoans would see a one per cent rate decrease through that period.
While Avista would become a wholly owned Hydro subsidiary, it would retain its name, and its headquarters in Spokane, Wash. In the case of Idaho specifically, a proposed settlement in April, subject to final approval by the commission, stipulates agreements on everything from staffing to governance to community contributions.
Will that meet the test? It’s up to the commission to determine whether the proposed transaction will keep a lid on rates and is “consistent with the public interest.” Hydro One is hoping for a decision from regulatory agencies in all the named states by mid-August and a closing date by the end of September, though U.S. regulators can ultimately determine the fate of such deals. The Federal Energy Regulatory Commission granted its approval in January, followed last week by the Federal Communications Commission. Washington and Alaska have reached settlement agreements. These too are pending final state approvals.
The $5.3-billion deal (or $6.7 billion Canadian) is subject to ongoing hearings in Idaho, and elsewhere rate hikes face opposition as hearings begin. Members of the public are encouraged to have their say. The public comment deadline is June 27.
Related News
An NDP government would make hydro public again, end off-peak pricing, Horwath says in Sudbury
Ontario NDP Hydro Plan proposes ending time-of-use pricing, buying back Hydro One, lowering electricity rates, curbing rural delivery fees, and restoring public ownership to ease household bills amid debates with PCs and Liberals over costs.
Key Points
A plan to end time-of-use pricing, buy back Hydro One, and cut bills via public ownership and fair delivery fees.
✅ End time-of-use pricing; normal schedules without penalties
✅ Repurchase Hydro One; restore public ownership
✅ Cap rural delivery fees; address oversupply to cut rates
Ontario NDP leader Andrea Horwath says her party’s hydro plan will reduce families’ electricity bills, a theme also seen in Manitoba Hydro debates and the NDP is the only choice to get Hydro One back in public hands.
Howarth outlined the plan Saturday morning outside the home of a young family who say they struggle with their electricity bills — in particular over the extra laundry they now have after the birth of their twin boys.
An NDP government would end time-of-use pricing, which charges higher rates during peak times and lower rates after hours, “so that people aren’t punished for cooking dinner at dinner time,” Horwath said at a later campaign stop in Orillia, “so people can live normal lives and still afford their hydro bill.”
#google#
An NDP government would end time-of-use pricing, which gives lower rates for off-peak usage, Howarth said, separate from a recent subsidized hydro plan during COVID-19. The change would mean families wouldn't be "forced to wait until night when the pricing is lower to do laundry," and wouldn't have to rearrange their lives around chores.
The pricing scheme was supposed to lower prices and help smooth out demand for electricity, especially during peak times, but has failed, she said.
In order to lower hydro bills, Horwath said an NDP government would buy back shares of Hydro One sold off under the Wynne government, which she said has led to high prices and exorbitant executive pay among executives. The NDP plan would also make sure rural families do not pay more in delivery fees than city dwellers, and curb the oversupply of energy to bring prices down.
Critics have said the NDP plan is too costly and will take a long time to implement, and investors see too many unknowns about Hydro One.
"The NDP's plan to buy back Hydro One and continue moving forward with a carbon tax will cost taxpayers billions," said Melissa Lantsman, a spokesperson for PC Leader Doug Ford.
"Only Doug Ford has a plan to reduce hydro rates and put money back in people's pockets. We'll reduce your hydro bill by 12 per cent."
Ford has said he will fire Hydro One CEO Mayo Schmidt, and has dubbed him the $6-million-dollar man.
Horwath has said both Ford and Liberal Leader Kathleen Wynne will end up costing Ontarians more in electricity if one of them is elected come June 7. Their "hydro scheme is the wrong plan," she said.
Related News
N.S. joins Western Climate Initiative for tech support for emissions plan
Nova Scotia Cap-and-Trade Program joins Western Climate Initiative to leverage emissions trading IT systems, track allowances, and manage compliance, while setting in-province caps, carbon pricing signals, and third-party verified reporting for industrial and fuel suppliers.
Key Points
A provincial emissions trading system using WCI services to cap GHGs, track allowances, and enforce verified compliance.
✅ Uses WCI IT system to manage allowances and registry
✅ Initial trading limited to in-province participants
✅ Third-party verification and annual reporting deadlines
Nova Scotia is yet to set targets for its new cap and trade regime to reduce greenhouse gases, but the province announced Monday that it has joined the Western Climate Initiative Inc. -- a non-profit corporation formed to provide administrative and technical services to states and provinces with emissions trading programs.
Environment Minister Iain Rankin said joining the initiative would allow the province to use its IT system to manage and track its new cap and trade program.
Rankin said the province can join without trading greenhouse gas emission allowances with other jurisdictions -- California, Quebec, and Ontario are currently linked through the program, with Hydro-Québec's U.S. sales highlighting cross-border dynamics. Nova Scotia currently has no plans to trade outside the province as it works on emissions caps Rankin said will be ready sometime in June.
#google#
Nova Scotia is yet to set targets for its new cap and trade regime to reduce greenhouse gases, but the province announced Monday that it has joined the Western Climate Initiative Inc. -- a non-profit corporation formed to provide administrative and technical services to states and provinces with emissions trading programs.
Environment Minister Iain Rankin said joining the initiative would allow the province to use its IT system to manage and track its new cap and trade program.
Rankin said the province can join without trading greenhouse gas emission allowances with other jurisdictions -- California, Quebec, and Ontario are currently linked through the program. Nova Scotia currently has no plans to trade outside the province as it works on emissions caps Rankin said will be ready sometime in June.
"By keeping our system internal it ensures that our greenhouse gas reductions are happening within our province," said Rankin. "But we do have that opportunity (to join) and if there are new entrants or we need more access to credits then that may shift our strategy."
The use of the system will cost Nova Scotia about US$314,000 for 2018-19, with an annual cost in subsequent years of about US$228,000 or more, if the province requests modifications.
"If we were to do something like that internally we would have to build a full database and hire more people, so this was an obvious choice for us," said Rankin.
Nova Scotia has already met the national reduction target of 30 per cent below 2005 levels and says it's on track to have 40 per cent of electricity generation from renewables by 2020, underscoring how cleaning up Canada's electricity supports climate pledges.
Stephen Thomas, energy campaign coordinator for the Ecology Action Centre, called the province's move an "important small step," stressing the importance of using the same administrative rules as the other jurisdictions involved.
But Thomas said Nova Scotia should go further and trade emissions with California, Quebec, and Ontario, and also put a price on carbon by auctioning credits as they do.
Thomas said Nova Scotia's system stands to be volatile because of the smaller number of participants -- about 20 including Nova Scotia Power, Northern Pulp, Lafarge, and large oil and gasoline companies such as ExxonMobil, Imperial and Irving.
"It's very likely to favour Nova Scotia Power as the largest single emitter with the most credits to sell here, and that would change if we had a linked system, at a time when Canada will need more electricity to hit net-zero according to the IEA," Thomas said.
He said it's important to have a linked system and a regional approach in Atlantic Canada, which has more emissions per person and more emissions per GDP than places like Ontario, Quebec and California, and where policies like Newfoundland's rate reduction plan can influence electricity strategy.
"Reducing emissions, because we are so emissions-intensive here, is a little bit cheaper," said Thomas. "So it's possible that Ontario, Quebec and California could pay Nova Scotia to reduce its emissions."
Under its program, Nova Scotia requires industrial facilities generating 50,000 tonnes or more of greenhouse gas emissions per year to report emissions.
Regulations also cover petroleum product suppliers that import or produce 200 litres of fuel or more per year for consumption and natural gas distributors whose products produce at least 10,000 tonnes of greenhouse gas emissions a year.
Companies were to have reported to the Environment Department by May 1 but Rankin said the deadline has been pushed back to June 1, a deadline that was to be followed in subsequent years in any event. Reports must be verified by a third party by Sept. 1 every year.
The Liberal government passed enabling legislation for cap and trade last fall.
As for the upcoming emissions caps, Rankin isn't tipping the province's hand yet, even as B.C.'s 2050 targets face a shortfall in some forecasts.
"Those caps will recognize the investments that have already been made and therefore will be the most cost-effective program that we can put together to meet the federal requirement," he said.
Related News
Hundreds facing hydro disconnection as bills pile up during winter ban
Ontario Hydro Disconnection Ban ends May 1, prompting utilities and Hydro One to push payment plans, address arrears, and link low-income assistance, as Sudbury officials urge customers to avoid spring electricity disconnections.
Key Points
A seasonal policy halting winter shutoffs in Ontario, ending May 1 as utilities emphasize payment plans and assistance.
✅ Disconnections resume after winter moratorium ends May 1.
✅ Utilities offer payment plans, arrears management, relief funds.
✅ Hydro One delays shutoffs until June 1; arrears down 60%.
The first of May has taken on new meaning this year in Ontario.
It's when the province's ban on hydro disconnections during the winter months comes to an end, even as Ontario considers extending moratoriums in some cases.
Wendy Watson, the director of communications at Greater Sudbury Utilities, says signs of the approaching deadline could be seen in their office of the past few weeks.
"We've had quite an active stream of people into our front office to catch up on their accounts and also we've had a lot of people calling us to make payment arrangements or pay their bill or deal with their arrears," she says.
#google#
Watson says there are 590 customers in Sudbury who could face possible disconnection this spring, compared with just 60 when the ban started in November.
"They will put off until tomorrow what they can avoid today," she says.
Watson says they are hoping to work with customers to figure payment plans with more choice and flexibility and avoid the need to cut power to certain homes and businesses.
"As we like to say we're in the distribution of energy business, not the disconnection of energy business. We want you to be able to turn the lights on," she says.
Joseph Leblanc from the Social Planning Council of Sudbury says the winter hydro disconnection ban is one of several government measures that keep low income families on the brink of disaster. (CBC)
Hydro One executive vice-president of customer care Ferio Pugilese, whose utility later extended disconnection bans across its service area, tells a different story.
He says the company has worked hard to configure payment plans for customers over the last three years amid unchanged peak-rate policies and find ways for them to pay "that fit their lifestyle."
"The threat of a disconnection is not on its own something that's going to motivate someone to pay their bills," says Pugilese.
He says Hydro One is also sending out notices this spring, but won't begin cutting anyone off until June 1st.
He says that disconnections and the amount owing from outstanding bills to Hydro One are down 60 per cent in the last year.
Ontario Energy Minister Glenn Thibeault says there is plenty of help from government programs and utility financing options like Hydro One's relief fund for those having trouble paying their power bills. (CBC)
Sudbury MPP and Energy Minister Glenn Thibeault says his hope is that people having trouble paying their power bills will talk to their hydro utility and look at the numerous programs the government offers to help low-income citizens.
"You know, I really want every customer to have a conversation with their local utility about getting back on track and we do have those programs in place," he says.
However, Joseph Leblanc, the executive director of the Social Planning Council of Sudbury, says the winter disconnection ban is just another government policy that keeps the poor on the brink of disaster.
"It's a feel good story for the government to say that, but it's a band-aid solution. We can stop the bleeding for a little while, make sure people aren't freezing to death in Ontario," he says.
"People choose between rent, hydro, medicine, food, and there's an option for one of those to take some pressure off for a little while."
Instead, Leblanc would like to see the government fast track the province-wide implementation of the basic income program it's testing out in a few cities.
Related News
Ottawa won't oppose halt to Site C work pending treaty rights challenge
Site C Dam Injunction signals Ottawa's neutrality while B.C. reviews a hydroelectric dam project on the Peace River, amid First Nations treaty rights claims, federal approval defenses, and scrutiny of environmental assessment and Crown consultation.
Key Points
A legal request to pause Site C while courts weigh First Nations treaty rights, environmental review, and approvals.
✅ Ottawa neutral on injunction; still defends federal approvals
✅ First Nations cite treaty rights over Peace River territory
✅ B.C. jurisdiction, environmental assessment and Crown consultation at issue
The federal government is not going to argue against halting construction of the controversial Site C hydroelectric dam in British Columbia while a B.C. court decides if the project violates constitutionally protected treaty rights.
Work on Site C suspended prior to First Nations lawsuit
However a spokeswoman for Environment Minister Catherine McKenna said Monday the government will continue to defend the federal approval given for the project in December 2014, even though that approval was given using an environmental review process McKenna herself has said is fundamentally flawed.
The Site C project is an 1,100-megawatt dam and generating station on the Peace River in northern B.C. that will flood parts of the traditional territory of the West Moberly and Prophet River First Nations.
#google#
In January, they filed a civil court case against the provincial government, B.C. Hydro and the federal government asking a judge to decide if their rights were being violated by the dam. A few weeks later, West Moberly asked the court for an injunction to halt construction pending the outcome of the rights case, similar to other contested transmission projects like the Maine electricity corridor debate in New England.
On May 11, lawyers for Attorney General Jody Wilson-Raybould filed a notice that Canada would remain neutral on the question of the injunction, meaning Canada won't argue against the idea of postponing construction for months, if not years, while the rights case winds through the court.
Wilson-Raybould has been silent on Site C since being named Canada's minister of justice in 2015, but in 2012, when she was the B.C. regional chief for the Assembly of First Nations, she said the project was "running roughshod" over treaty rights. The Justice Department on Monday directed questions to Environment and Climate Change Canada.
Defence of environmental assessment
McKenna's spokeswoman, Caroline Theriault, said the injunction request is just a procedural step regarding construction and that it is B.C. jurisdiction not federal.
However, she said Canada will defend the environmental assessment and Crown consultation processes and the federally issued permits required for construction.
B.C. auditor general set to scrutinize Site C dam project
McKenna has legislation before the House of Commons to overhaul the process for environmental assessment of major projects like hydro dams and pipelines, arguing the former government's procedures had skewed too far towards proponents. The overhaul includes requiring traditional Indigenous knowledge be taken into account, a consideration also central to the Columbia River Treaty talks underway on both sides of the border.
However, Theriault said the commitment to overhaul the process also included a promise not to revisit projects that had already been approved, such as Site C.
"The federal environmental assessment process for the Site C project has already been upheld in other court actions," said Theriault.
'It feels kind of odd'
West Moberly Chief Roland Wilson said he was both excited and yet concerned by Canada's decision last week not to oppose the injunction.
"It feels kind of odd and makes me wonder what they're up to," Wilson said.
However he said all he has ever wanted was for the project to be stopped until the question of rights can be answered. Wilson said two previous dams on the Peace River already flooded 80 per cent of the functional land within West Moberly's territory and that Site C will flood half of what's left. That land is used for fishing and hunting and there is also concern the dam will allow mercury to leak into Moberly Lake, he said.
Retiree undaunted by steep odds against his petition to stop Site C dam
Construction began in 2015 and more than $2.4 billion has already been spent on a project that will at the earliest, not be completed until 2024 and will cost an estimated $10 billion total, with cost overrun risks underscored by the Muskrat Falls ratepayer agreement in Atlantic Canada.
The province continues to argue against the injunction and will also fight the rights case, even as Alberta suspends power purchase talks with B.C. over energy disputes. Premier John Horgan campaigned on a promise to review the Site C approval. A B.C. Utilities Commission report in November found there are alternatives to building it and that it will go over budget. Nevertheless Horgan in December said he had to let construction continue because cancelling the project would be too costly both for the province and its electricity consumers, despite the B.C. rate freeze announced around the same period.
Related News
SaskPower eyes buying $300M worth of electricity from Flying Dust First Nation
SaskPower-Flying Dust flare gas power deal advances a 20 MW, 20-year Power Purchase Agreement, enabling grid supply from FNPA-backed generation, supporting renewable strategy, lower carbon footprint targets, and First Nation economic development in Saskatchewan.
Key Points
A 20 MW, 20-year PPA converting flare gas to grid power, with SaskPower buying from Flying Dust First Nation via FNPA.
✅ 20 MW of flare gas generation linked to Saskatchewan's grid
✅ 20-year term; about $300M total value to SaskPower
✅ FNPA-backed project; PPA targeted in 6-12 months
An agreement signed between SaskPower, which reported $205M income in 2019-20, and Flying Dust First Nation is an important step toward a plan that could see the utility buy $300 million worth of electricity from Flying Dust First Nation, according to Flying Dust's chief.
"There's still a lot of groundwork that needs to be done before we get building but you know we're a lot closer today with this signing," Jeremy Norman told reporters Friday.
Norman's community was assisted by the First Nations Power Authority (FNPA), a non-profit that helps First Nations get into the power sector, with examples like the James Bay project showing what Indigenous ownership can achieve.
The agreement signed Friday says SaskPower will explore the possibility of buying 20 megawatts of flare gas power from FNPA, which it will look to Flying Dust to produce.
#google#
20-year plan
The proposed deal would span 20 years and cost SaskPower around $300 million over those years, as the utility also explores geothermal power to meet 2030 targets.
The exact price would be determined once a price per metawatt is brought forward.
"We won't be able to do this ourselves," Norman said.
Flare gas power generation works by converting flares from the oil and gas sector into electricity. Under this plan, SaskPower would take the electricity provided by Flying Dust and plug it into the provincial power grid, complementing a recent move to buy more power from Manitoba Hydro to support system reliability.
"This is a great opportunity as we advance our renewable strategy, including progress on doubling renewables by 2030, and try to achieve a lower carbon footprint by 2030 and beyond," Marsh said.
Ombudsman report details dispute between senior with breathing disorder, SaskPower
Norman said the business deal presents an opportunity to raise money to reinvest into the First Nation for things like more youth programming.
For the next steps, both parties will need to sign a power purchase agreement that spells out the exact prices for the power generation.
Marsh expects to do so in the next six to 12 months, with development of the required infrastructure to take place after that.
