Shutdown of Texas Utility Watchdog Will Hurt Consumers, Some Fear

By The Dallas Morning News


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Texas should abolish the Office of the Public Utility Counsel, which represents consumers on electricity and telecommunications issues, a state panel said recently.

The staff of the Sunset Advisory Commission, which reviews the need for state commissions, said Texas no longer needs the office and its work should be divided between the Public Utility Commission and the attorney general.

But the Utility Counsel office and consumer advocates said the proposed move would eliminate an important and independent consumer voice in Austin.

"The most objective representation of residential and small commercial customers will come from an agency whose staff are not dependent on the [PUC] commissioners to be hired and fired," said Clarence Johnson, director of regulatory analysis at the Utility Counsel office.

The Utility Counsel was created in 1983 because of fears that consumers' concerns were getting lost in utility proceedings. The office has an annual budget of $1.6 million and a staff of 23. Eliminating the office and shifting its work elsewhere would save the state $1 million annually beginning in 2007.

"While residential consumers may still need independent representation in the declining number of rate cases, a stronger consumer focus at PUC could be more beneficial to Texas consumers than the current adversarial role of OPUC," the report said.

The 12-member Sunset Commission will hold hearings July 13-14 on a number of proposals in the report, which also reviewed the Public Utility Commission, the Electric Reliability Council of Texas and the Telecommunications Infrastructure Fund Board. The panel will issue recommendations to the Legislature in September.

The report also recommended:

-- Requiring the Public Utility Commission to hire a firm to monitor manipulations of wholesale electricity markets.

-- Increasing the penalties the PUC can levy to $25,000 per day, per violation, up from $5,000.

-- Replacing the Reliability Council's 14-member board with a panel of nine independent members who would be subject to the state open meetings law.

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A goodwill gesture over electricity sows discord in Lebanon

Lebanon Power Barge Controversy spotlights Karadeniz Energy's Esra Sultan, Lebanon's electricity crisis, prolonged blackouts, and sectarian politics as Amal and Hezbollah clash over Zahrani vs Jiyeh docking and allocation across regions.

 

Key Points

A political dispute over the Esra Sultan power ship, its docking, and power allocation amid Lebanon's chronic blackouts.

✅ Karadeniz Energy lent a third barge at below-market rates.

✅ Docking disputes: Zahrani refused; Jiyeh limited; Zouq connected.

✅ Amal vs Hezbollah split exposes sectarian energy politics.

 

It was supposed to be a goodwill gesture from an energy company in Turkey.

This summer, the Karadeniz Energy Group lent Lebanon a floating power station to generate electricity at below-market rates to help ease the strain on the country's woefully undermaintained power sector.

Instead, the barge's arrival opened a Pandora's box of partisan mudslinging in a country hobbled by political sectarianism and dysfunction.

There have been rows over where it should dock, how to allocate its 235 megawatts of power, and even what to call the barge, echoing controversies like the Maine electric line debate that pit local politics against energy needs.

It has even driven a wedge between Lebanon's two dominant parties among Shiite Muslims: Amal and the militant group Hezbollah.

Amal, which has held the parliament speaker's seat since 1992, revealed sensationally last week it had refused to allow the boat to dock in a port in the predominantly Shiite south, even though it is one of the most underserved regions of Lebanon.

Power outages in the south can stretch on for more than 12 hours a day, much like the Gaza electricity crisis, according to regional observers.

Hezbollah, which normally stands pat with Amal in political matters, issued an exceptional statement that it had nothing to do with the matter of the barge at Zahrani port. A Hezbollah lawmaker went further to say his party disagreed on the issue with Amal.

Ali Hassan Khalil, Lebanon's Finance Minister and a leading Amal party member, said southerners wanted a permanent power station, not a stop-gap solution, in an implied dig at the rival Free Patriotic Movement, a Christian party that runs the Energy Ministry.

But critics seized on the statement as confirmation that Amal's leaders were in bed with the operators of private generators, who have been making fortunes selling electricity during blackouts at many times the state price.

"For decades there's been nothing stopping them from building a power plant," said Mohammad Obeid, a former Amal party official, in an interview with Lebanon's Al Jadeed TV station.

"Now there's a barge that's coming for three months to provide a few more hours of electricity -- and that's the issue?"

Hassan Khalil, reached by phone, refused to comment.

Nabih Berri, Amal's chief and Lebanon's parliament speaker, who has long been the subject of critical coverage from Al Jadeed's, sued the TV channel for libel on Wednesday for its reporting.

Energy Minister Cesar Abi Khalil, a Christian, lashed out at Amal, saying the ministry even changed the barge's name from Ayse, Turkish for Aisha, a name associated in Lebanon with Sunnis, to Esra Sultan, which does not carry any Shiite or Sunni connotations, to try to get it to dock in Zahrani.

Karadeniz said the barge was renamed "out of courtesy and respect to local customs and sensitivities."

"Ayse is a very common Turkish name, where such preferences are not as sensitive as in Lebanon," it said in a statement to The Associated Press.

Finally, on July 18, the barge docked in Jiyeh, a harbour south of Beirut but north of Zahrani, and in a religiously mixed Muslim area.

But two weeks later it was unmoored again, after Abi Khalil, the energy minister, said the infrastructure at Jiyeh could only handle 30 megawatts of the Esra Sultan's 235 capacity, and upgrades such as burying subsea cables are expensive.

With Zahrani closed to the Esra Sultan, it could only go to Zouq Mikhael, a port in the Christian-dominated Kesrouan region in the north, where it was plugged to the grid Tuesday night, giving the region almost 24 hours of electricity a day.

Lebanon has been contending with rolling blackouts since the days of its 1975-1990 civil war. Successive governments have failed to agree on a permanent solution for the chronic electricity failures, largely because of profiteering, endemic corruption and lack of political will, despite periodic pushes for electricity sector reform in Lebanon over the years.

In 2013, the Energy Ministry contracted with Karadeniz to buy electricity from a pair of its barges, which are still docked in Jiyeh and Zouq Mikhael.

This summer, Abi Khalil signed a new contract with Karadeniz to keep the barges for another three years. As part of the deal, Karadeniz agreed to lend Lebanon the third barge, the Esra Sultan, to produce electricity for three months at no cost - Lebanon would just have to pay for the fuel.

The company said Lebanon's internal squabbles do not affect how long the Esra Sultan would stay in Lebanon, even amid wider sector volatility and the pandemic's impact highlighted in a recent financial update. It arrived on July 18 and it will leave on Oct. 18, it said.

 

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Oil crash only a foretaste of what awaits energy industry

Oil and Gas Profitability Decline reflects shale-driven oversupply, OPEC-Russia dynamics, LNG exports, renewables growth, and weak demand, signaling compressed margins for producers, stressed petrodollar budgets, and shifting energy markets post-Covid.

 

Key Points

A sustained squeeze on hydrocarbon margins from agile shale supply, weaker OPEC leverage, and expanding renewables.

✅ Shale responsiveness caps prices and erodes industry rents

✅ OPEC-Russia cuts face limited impact versus US supply

✅ Renewables and EVs slow long-term oil and gas demand

 

The oil-price crash of March 2020 will probably not last long. As in 2014, when the oil price dropped below $50 from $110 in a few weeks, this one will trigger a temporary collapse of the US shale industry. Unless the coronavirus outbreak causes Armageddon, cheap oil will also support policymakers’ efforts to help the global economy.

But there will be at least one important and lasting difference this time round — and it has major market and geopolitical implications.

The oil price crash is a foretaste of where the whole energy sector was going anyway — and that is down.

It may not look that way at first. Saudi Arabia will soon realise, as it did in 2015, that its lethal decision to pump more oil is not only killing US shale but its public finances as well. Riyadh will soon knock on Moscow’s door again. Once American shale supplies collapse, Russia will resume co-operation with Saudi Arabia.

With the world economy recovering from the Covid-19 crisis by then, and with electricity demand during COVID-19 shifting, moderate supply cuts by both countries will accelerate oil market recovery. In time, US shale producers will return too.

Yet this inevitable bounceback should not distract from two fundamental factors that were already remaking oil and gas markets. First, the shale revolution has fundamentally eroded industry profitability. Second, the renewables’ revolution will continue to depress growth in demand.

The combined result has put the profitability of the entire global hydrocarbon industry under pressure. That means fewer petrodollars to support oil-producing countries’ national budgets, including Canada's oil sector exposures. It also means less profitable oil companies, which traditionally make up a large segment of stock markets, an important component of so many western pension funds.

Start with the first factor to see why this is so. Historically, the geological advantages that made oil from countries such as Saudi Arabia so cheap to produce were unique. Because oil and gas were produced at costs far below the market price, the excess profits, or “rent”, enjoyed by the industry were very large.

Furthermore, collusion among low-cost producers has been a winning strategy. The loss of market share through output cuts was more than compensated by immediately higher prices. It was the raison d’être of Opec.

The US shale revolution changed all this, exposing the limits of U.S. energy dominance narratives. A large oil-producing region emerged with a remarkable ability to respond quickly to price changes and shrink its costs over time. Cutting back cheap Opec oil now only increases US supplies, with little effect on world prices.

That is why Russia refused to cut production this month. Even if its cuts did boost world prices — doubtful given the coronavirus outbreak’s huge shock to demand — that would slow the shrinkage of US shale that Moscow wants.

Shale has affected the natural gas industry even more. Exports of US liquefied natural gas now put an effective ceiling on global prices, and debates over a clean electricity push have intensified when gas prices spike.

On top of all this, there is also the renewables’ revolution, though a green revolution has not been guaranteed in the near term. Around the world, wind and solar have become ever-cheaper options to generate electricity. Storage costs have also dropped and network management improved. Even in the US, renewables are displacing coal and gas. Electrification of vehicle fleets will damp demand further, as U.S. electricity, gas, and EVs face evolving pressures.

Eliminating fossil fuel consumption completely would require sustained and costly government intervention, and reliability challenges such as coal and nuclear disruptions add to the complexity. That is far from certain. Meanwhile, though, market forces are depressing the sector’s usual profitability.

The end of oil and gas is not immediately around the corner. Still, the end of hydrocarbons as a lucrative industry is a distinct possibility. We are seeing that in dramatic form in the current oil price crash. But this collapse is merely a message from the future.

 

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Longer, more frequent outages afflict the U.S. power grid as states fail to prepare for climate change

Power Grid Climate Resilience demands storm hardening, underground power lines, microgrids, batteries, and renewable energy as regulators and utilities confront climate change, sea level rise, and extreme weather to reduce outages and protect vulnerable communities.

 

Key Points

It is the grid capacity to resist and recover from climate hazards using buried lines, microgrids, and batteries.

✅ Underground lines reduce wind outages and wildfire ignition risk.

✅ Microgrids with solar and batteries sustain critical services.

✅ Regulators balance cost, resilience, equity, and reliability.

 

Every time a storm lashes the Carolina coast, the power lines on Tonye Gray’s street go down, cutting her lights and air conditioning. After Hurricane Florence in 2018, Gray went three days with no way to refrigerate medicine for her multiple sclerosis or pump the floodwater out of her basement.

What you need to know about the U.N. climate summit — and why it matters
“Florence was hell,” said Gray, 61, a marketing account manager and Wilmington native who finds herself increasingly frustrated by the city’s vulnerability.

“We’ve had storms long enough in Wilmington and this particular area that all power lines should have been underground by now. We know we’re going to get hit.”

Across the nation, severe weather fueled by climate change is pushing aging electrical systems past their limits, often with deadly results. Last year, amid increasing nationwide blackouts, the average American home endured more than eight hours without power, according to the U.S. Energy Information Administration — more than double the outage time five years ago.

This year alone, a wave of abnormally severe winter storms caused a disastrous power failure in Texas, leaving millions of homes in the dark, sometimes for days, and at least 200 dead. Power outages caused by Hurricane Ida contributed to at least 14 deaths in Louisiana, as some of the poorest parts of the state suffered through weeks of 90-degree heat without air conditioning.

As storms grow fiercer and more frequent, environmental groups are pushing states to completely reimagine the electrical grid, incorporating more grid-scale batteries, renewable energy sources and localized systems known as “microgrids,” which they say could reduce the incidence of wide-scale outages. Utility companies have proposed their own storm-proofing measures, including burying power lines underground.

But state regulators largely have rejected these ideas, citing pressure to keep energy rates affordable. Of $15.7 billion in grid improvements under consideration last year, regulators approved only $3.4 billion, according to a national survey by the NC Clean Energy Technology Center — about one-fifth, highlighting persistent vulnerabilities in the grid nationwide.

After a weather disaster, “everybody’s standing around saying, ‘Why didn’t you spend more to keep the lights on?’ ” Ted Thomas, chairman of the Arkansas Public Service Commission, said in an interview with The Washington Post. “But when you try to spend more when the system is working, it’s a tough sell.”

A major impediment is the failure by state regulators and the utility industry to consider the consequences of a more volatile climate — and to come up with better tools to prepare for it. For example, a Berkeley Lab study last year of outages caused by major weather events in six states found that neither state officials nor utility executives attempted to calculate the social and economic costs of longer and more frequent outages, such as food spoilage, business closures, supply chain disruptions and medical problems.

“There is no question that climatic changes are happening that directly affect the operation of the power grid,” said Justin Gundlach, a senior attorney at the Institute for Policy Integrity, a think tank at New York University Law School. “What you still haven’t seen … is a [state] commission saying: 'Isn’t climate the through line in all of this? Let’s examine it in an open-ended way. Let’s figure out where the information takes us and make some decisions.’ ”

In interviews, several state commissioners acknowledged that failure.

“Our electric grid was not built to handle the storms that are coming this next century,” said Tremaine L. Phillips, a commissioner on the Michigan Public Service Commission, which in August held an emergency meeting to discuss the problem of power outages. “We need to come up with a broader set of metrics in order to better understand the success of future improvements.”

Five disasters in four years
The need is especially urgent in North Carolina, where experts warn Atlantic grids and coastlines need a rethink as the state has declared a federal disaster from a hurricane or tropical storm five times in the past four years. Among them was Hurricane Florence, which brought torrential rain, catastrophic flooding and the state’s worst outage in over a decade in September 2018.

More than 1 million residents were left disconnected from refrigerators, air conditioners, ventilators and other essential machines, some for up to two weeks. Elderly residents dependent on oxygen were evacuated from nursing homes. Relief teams flew medical supplies to hospitals cut off by flooded roads. Desperate people facing closed stores and rotting food looted a Wilmington Family Dollar.

“I have PTSD from Hurricane Florence, not because of the actual storm but the aftermath,” said Evelyn Bryant, a community organizer who took part in the Wilmington response.

The storm reignited debate over a $13 billion proposal by Duke Energy, one of the largest power companies in the nation, to reinforce the state’s power grid. A few months earlier, the state had rejected Duke’s request for full repayment of those costs, determining that protecting the grid against weather is a normal part of doing business and not eligible for the type of reimbursement the company had sought.

After Florence, Duke offered a smaller, $2.5 billion plan, along with the argument that severe weather events are one of seven “megatrends” (including cyberthreats and population growth) that require greater investment, according to a PowerPoint presentation included in testimony to the state. The company owns the two largest utilities in North Carolina, Duke Energy Carolinas and Duke Energy Progress.

Vote Solar, a nonprofit climate advocacy group, objected to Duke’s plan, saying the utility had failed to study the risks of climate impacts. Duke’s flood maps, for example, had not been updated to reflect the latest projections for sea level rise, they said. In testimony, Vote Solar claimed Duke was using environmental trends to justify investments “it had already decided to pursue.”

The United States is one of the few countries where regulated utilities are usually guaranteed a rate of return on capital investments, even as studies show the U.S. experiences more blackouts than much of the developed world. That business model incentivizes spending regardless of how well it solves problems for customers and inspires skepticism. Ric O’Connell, executive director of GridLab, a nonprofit group that assists state and regional policymakers on electrical grid issues, said utilities in many states “are waving their hands and saying hurricanes” to justify spending that would do little to improve climate resilience.

In North Carolina, hurricanes convinced Republicans that climate change is real

Duke Energy spokesman Jeff Brooks acknowledged that the company had not conducted a climate risk study but pointed out that this type of analysis is still relatively new for the industry. He said Duke’s grid improvement plan “inherently was designed to think about future needs,” including reinforced substations with walls that rise several feet above the previous high watermark for flooding, and partly relied on federal flood maps to determine which stations are at most risk.

Brooks said Duke is not using weather events to justify routine projects, noting that the company had spent more than a year meeting with community stakeholders and using their feedback to make significant changes to its grid improvement plan.

This year, the North Carolina Utilities Commission finally approved a set of grid improvements that will cost customers $1.2 billion. But the commission reserved the right to deny Duke reimbursement of those costs if it cannot prove they are prudent and reasonable. The commission’s general counsel, Sam Watson, declined to discuss the decision, saying the commission can comment on specific cases only in public orders.

The utility is now burying power lines in “several neighborhoods across the state” that are most vulnerable to wide-scale outages, Brooks said. It is also fitting aboveground power lines with “self-healing” technology, a network of sensors that diverts electricity away from equipment failures to minimize the number of customers affected by an outage.

As part of a settlement with Vote Solar, Duke Energy last year agreed to work with state officials and local leaders to further evaluate the potential impacts of climate change, a process that Brooks said is expected to take two to three years.

High costs create hurdles
The debate in North Carolina is being echoed in states across the nation, where burying power lines has emerged as one of the most common proposals for insulating the grid from high winds, fires and flooding. But opponents have balked at the cost, which can run in the millions of dollars per mile.

In California, for example, Pacific Gas & Electric wants to bury 10,000 miles of power lines, both to make the grid more resilient and to reduce the risk of sparking wildfires. Its power equipment has contributed to multiple deadly wildfires in the past decade, including the 2018 Camp Fire that killed at least 85 people.

PG&E’s proposal has drawn scorn from critics, including San Jose Mayor Sam Liccardo, who say it would be too slow and expensive. But Patricia Poppe, the company’s CEO, told reporters that doing nothing would cost California even more in lost lives and property while struggling to keep the lights on during wildfires. The plan has yet to be submitted to the state, but Terrie Prosper, a spokeswoman for the California Public Utilities Commission, said the commission has supported underground lines as a wildfire mitigation strategy.

Another oft-floated solution is microgrids, small electrical systems that provide power to a single neighborhood, university or medical center. Most of the time, they are connected to a larger utility system. But in the event of an outage, microgrids can operate on their own, with the aid of solar energy stored in batteries.

In Florida, regulators recently approved a four-year microgrid pilot project, but the technology remains expensive and unproven. In Maryland, regulators in 2016 rejected a plan to spend about $16 million for two microgrids in Baltimore, in part because the local utility made no attempt to quantify “the tangible benefits to its customer base.”

Amid shut-off woes, a beacon of energy

In Texas, where officials have largely abandoned state regulation in favor of the free market, the results have been no more encouraging. Without requirements, as exist elsewhere, for building extra capacity for times of high demand or stress, the state was ill-equipped to handle an abnormal deep freeze in February that knocked out power to 4 million customers for days.

Since then, Berkshire Hathaway Energy and Starwood Energy Group each proposed spending $8 billion to build new power plants to provide backup capacity, with guaranteed returns on the investment of 9 percent, but the Texas legislature has not acted on either plan.

New York is one of the few states where regulators have assessed the risks of climate change and pushed utilities to invest in solutions. After 800,000 New Yorkers lost power for 10 days in 2012 in the wake of Hurricane Sandy, state regulators ordered utility giant Con Edison to evaluate the state’s vulnerability to weather events.

The resulting report, which estimated climate risks could cost the company as much as $5.2 billion by 2050, gave ConEd data to inform its investments in storm hardening measures, including new storm walls and submersible equipment in areas at risk of flooding.

Meanwhile, the New York Public Service Commission has aggressively enforced requirements that utility companies keep the lights on during big storms, fining utility providers nearly $190 million for violations including inadequate staffing during Tropical Storm Isaias in 2020.

“At the end of the day, we do not want New Yorkers to be at the mercy of outdated infrastructure,” said Rory M. Christian, who last month was appointed chair of the New York commission.

The price of inaction
In North Carolina, as Duke Energy slowly works to harden the grid, some are pursuing other means of fostering climate-resilient communities.

Beth Schrader, the recovery and resilience director for New Hanover County, which includes Wilmington, said some of the people who went the longest without power after Florence had no vehicles, no access to nearby grocery stores and no means of getting to relief centers set up around the city.

For example, Quanesha Mullins, a 37-year-old mother of three, went eight days without power in her housing project on Wilmington’s east side. Her family got by on food from the Red Cross and walked a mile to charge their phones at McDonald’s. With no air conditioning, they slept with the windows open in a neighborhood with a history of violent crime.

Schrader is working with researchers at the University of North Carolina in Charlotte to estimate the cost of helping people like Mullins. The researchers estimate that it would have cost about $572,000 to provide shelter, meals and emergency food stamp benefits to 100 families for two weeks, said Robert Cox, an engineering professor who researches power systems at UNC-Charlotte.

Such calculations could help spur local governments to do more to help vulnerable communities, for example by providing “resilience outposts” with backup power generators, heating or cooling rooms, Internet access and other resources, Schrader said. But they also are intended to show the costs of failing to shore up the grid.

“The regulators need to be moved along,” Cox said.

In the meantime, Tonye Gray finds herself worrying about what happens when the next storm hits. While Duke Energy says it is burying power lines in the most outage-prone areas, she has yet to see its yellow-vested crews turn up in her neighborhood.

“We feel,” she said, “that we’re at the end of the line.”

 

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As peak wildfire season nears, SDG&E completes work on microgrid in Ramona

SDG&E Ramona Microgrid delivers renewable energy and battery storage for wildfire mitigation, grid resilience, and PSPS support, powering the Cal Fire Air Attack Base with a 500 kW, 2,000 kWh lithium-ion system during outages.

 

Key Points

A renewable, battery-backed microgrid powering Ramona's Air Attack Base, boosting wildfire response and PSPS resilience.

✅ 500 kW, 2,000 kWh lithium-ion storage replaces diesel

✅ Keeps Cal Fire and USFS aircraft operations powered

✅ Supports PSPS continuity and rural water reliability

 

It figures to be another dry year — with the potential to spark wildfires in the region. But San Diego Gas & Electric just completed a renewable energy upgrade to a microgrid in Ramona that will help firefighters and reduce the effects of power shutoffs to backcountry residents.

The microgrid will provide backup power to the Ramona Air Attack Base, helping keep the lights on during outages, home to Cal Fire and the U.S. Forest Service's fleet of aircrafts that can quickly douse fires before they get out of hand.

"It gives us peace of mind to have backup power for a critical facility like the Ramona Air Attack Base, especially given the fact that fire season in California has become year-round," Cal Fire/San Diego County Fire Chief Tony Mecham said in a statement.

The air attack base serves as a hub for fixed-wing aircraft assigned to put out fires. Cal Fire staffs the base throughout the year with one two airtankers and one tactical aircraft. The base also houses the Forest Service's Bell 205 A++ helicopter and crew to protect the Cleveland National Forest. Aircraft for both CalFire and the Forest Service can also be mobilized to help fight fires throughout the state.

This summer, the Ramona microgrid won't have to rely on diesel generation. Instead, the facility next to the town's airport will be powered by a 500 kilowatt and 2,000 kilowatt-hour lithium-ion battery storage system that won't generate any greenhouse gas emissions.

"What's great about it, besides that it's a renewable resource, is that it's a permanent installation," said Jonathan Woldemariam, SDG&E's director of wildfire mitigation and vegetation management. "In other words, we don't have to roll a portable generator out there. It's something that can be leveraged right there because it's already installed and ready to go."

Microgrids have taken on a larger profile across the state because they can operate independently of the larger electric grid, where repairing California's grid is an ongoing challenge, thus allowing small areas or communities to keep the power flowing for hours at a time during emergencies.

That can be crucial in wildfire-prone areas affected by Public Safety Power Shutoffs, or PSPS, the practice in which investor-owned utilities in California de-energize electrical power lines in a defined area when conditions are dry and windy in order to reduce the risk of a power line falling and igniting a wildfire, while power grid upgrades move forward statewide.

Rural and backcountry communities are particularly hard hit when the power is pre-emptively cut off because many homes rely on water from wells powered by electricity for their homes, horses and livestock.

In addition to Ramona, SDG&E has established microgrids in three other areas in High Fire Threat Districts:

The microgrids in Butterfield Ranch and Shelter Valley run on diesel power but the utility plans to complete solar and battery storage systems for each locale by the end of next year, as other regions develop new microgrid rules to guide deployment.

SDG&E has a fifth microgrid in operation — in Borrego Springs, which in 2013 became the first utility-scale microgrid in the country. It provides grid resiliency to the roughly 2,700 residents of the desert town and serves as a model for integrated microgrid projects elsewhere in delivering local electricity. While the Borrego Springs microgrid is not located in a High Fire Threat District, "when and if any power is turned off, especially the power transmission feed that goes to Borrego, we can support the customers using the microgrid out there," Woldemariam said.

Microgrid costs can be higher than conventional energy systems, even as projected energy storage revenue grows over the next decade, and the costs of the SDG&E projects are passed on to ratepayers. As per California Public Utilities Commission rules, the financial details for each of microgrid are kept confidential for at least three years.

SDG&E's microgrids are part of the utility's larger plan to reduce wildfire risk that SDG&E files with the utilities commission. In its wildfire plan for 2020 through 2022, SDG&E expected to spend $1.89 billion on mitigation measures.

 

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Wind Denmark - summer's autumn weather provides extraordinarily low electricity prices

Western Denmark Negative Electricity Prices stem from wind energy oversupply, grid congestion, and limited interconnector capacity via Nord Pool and TenneT, underscoring electrification needs, renewable integration, special regulation, and system flexibility.

 

Key Points

They are sub-zero power prices from wind oversupply, weak interconnectors, low demand, and balancing needs.

✅ Caused by high wind output, low demand, and export bottlenecks

✅ Limited Nord Pool interconnector capacity depresses prices

✅ Special regulation and district heating absorb excess power

 

A downturn in the cable connection to Norway and Sweden, together with low electricity consumption and high electricity production, has pushed down European electricity prices to a negative level in Western Denmark.

A sign that the electrification of society is urgently needed, says Soren Klinge, head of electricity market at Wind Denmark today.

The heavy winds during the first weekend of July, unlike periods when cheap wind power wanes in the UK, have not only had consequences for the Danes who had otherwise been looking forward to spending their first days at home in the garden or at the beach. It has also pushed down prices in the electricity market to a negative level, which especially the West Danish wind turbine owners have had to notice.

'The electricity market is currently affected by an unfortunate coincidence of various factors that have a negative impact on the electricity price: a reduced export capacity to the other Nordic countries, a low electricity consumption and a high electricity generation, reflecting broader concerns over dispatchable power shortages in Europe today. Unfortunately, the coincidence of these three factors means that the price base falls completely out of the market. This is another sign that the electrification of society is urgently needed, 'explains Soren Klinge, electricity market manager at Wind Denmark.

According to the European power exchange Nord Pool Spot, where UK peak power prices are also tracked, the cable connection to Sweden is expected to return to full capacity from 19 July. The connection between Jutland and Norway is only expected to return to full capacity in early September.

2000 MWh / hour in special regulation

During the windy weather on Monday morning, July 6, up to 2000 MWh / hour was activated at national level in the form of so-called special regulation. Special regulation is the designation that the German system operator TenneT switches off Danish electricity generation at cogeneration plants and wind turbines in order to help with the balancing of the German power system during such events. In addition, electric boilers at the cogeneration plants also contribute by using the electricity from the electricity grid and converting it to district heating for the benefit of Danish homes and businesses.

'The Danish wind turbines are probably the source of most of the special regulation, because there are very few cogeneration units to down-regulate electricity generation. Of course, it is positive to see that we have a high degree of flexibility in the wind-based power system at home. That being said, Denmark does not really get ahead with the green transition, even as its largest energy company plans to stop using coal by 2023, until we are able to raise electricity consumption based on renewable energy.

 

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B.C. Commercial electricity consumption plummets during COVID-19 pandemic

BC Hydro COVID-19 Relief Fund enables small businesses to waive electricity bills for commercial properties during the pandemic, offering credits, rate support, and applications for eligible customers forced to temporarily close.

 

Key Points

A program that lets eligible small businesses waive up to three months of BC Hydro bills during COVID-19 closures.

✅ Eligible small general service BC Hydro accounts

✅ Up to 3 months of waived electricity charges

✅ Must be temporarily closed due to the pandemic

 

Businesses are taking advantage of a BC Hydro relief fund that allows electricity bills for commercial properties to be waived during the COVID-19 pandemic.

More than 3,000 applications have already been filed since the program launched on Wednesday, allowing commercial properties forced to shutter during the crisis to waive the expense for up to three months, while Ontario rate reductions are taking effect for businesses under separate measures. 

“To be eligible for the COVID-19 Relief Fund, business customers must be on BC Hydro’s small general service rate and have temporarily closed or ceased operation due to the COVID-19 pandemic,” BC Hydro said in a statement. “BC Hydro estimates that around 40,000 small businesses in the province will be eligible for the program.”

The program builds off a similar initiative BC Hydro launched last week for residential customers who have lost employment or income because of COVID-19, and parallels Ontario's subsidized hydro plan introduced to support ratepayers. So far, 57,000 B.C. residents have applied for the relief fund, which amounts to an estimated $16 million in credits, amid scrutiny over deferred BC Hydro operating costs reported by the auditor general.

Electricity use across B.C. has plummeted since the outbreak began. 

According to BC Hydro, daily consumption has fallen 13% in the first two weeks of April, aligning with electricity demand down 10% reports, compared to the three-year average for the same time period.

Electricity use has fallen 30% for recreation facilities, 29% in the restaurant sector and 27% in hotels, while industry groups such as Canadian Manufacturers & Exporters have supported steps to reduce prices. 

For more information about the COVID-19 Relief Fund and advice on avoiding BC Hydro scam attempts, go to bchydro.com/covid19relief.

 

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