Alternate energy costs pressure power rates

By The Oregonian


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Big investments in renewable energy could mean higher electric bills, hitting households and businesses during high unemployment and a weak economy.

Oregon's biggest electric companies, PacifiCorp and Portland General Electric, filed for rate increases recently with state utility regulators.

Both cited renewable energy projects as the reason. If approved by the Oregon Public Utility Commission, the raises would take effect in early 2010, The Oregonian said.

PacifiCorp wants a $92.1 million increase, or 9.1 percent, which would add an average of $5.12 to a residential customers monthly bill, which is at about $82.85 for 950 kilowatt-hours per month.

PGE's investment in renewable energy at Biglow Canyon translates to a request for a 2.3 percent increase for retail customers, totaling $41.3 million.

But PGE's prices may decrease slightly because prices for power are falling, resulting in an offsetting filing for a $46.8 million decrease, PGE said.

Steve Corson of PGE said the impact of the two filings on the average, 900-kilowatt-hour customer would be a few cents a month, to the customer's advantage.

Some groups say rate hikes resulting from the shift to alternative energy sources will become common as utility companies build wind farms and solar systems to meet state guidelines.

Costs associated with renewables, primarily wind, are high, said Michael Early, executive director of Industrial Customers of Northwest Utilities, tagged with some of the steepest hikes.

"We have a renewable energy portfolio, but it doesn't come without a cost."

Under PacifiCorp's request, industrial customers would get some of the biggest rate jumps at 13.7 percent.

The rate case is the first for PacifiCorp since 2006, when the electric utility requested an increase of 13.2 percent and got about 5 percent.

Since 2006, Oregon's portion of the company's investments in electric plants and other capital projects has grown by $500 million, said Bill Griffith, director of pricing.

PacifiCorp has invested in two natural gas generating plants in Washington and Utah and three new wind facilities in Wyoming.

Griffith said industrial customers are being asked to pay more because they have the most need for more electricity.

"Their lights are always on," Griffith said. "Most of the cost is generation and transmission, and that's a larger proportion of the industrial customers' bill."

But to Early, who represents 38 manufacturers, the extra burden doesn't match the flat growth of the industrial sector.

"The industrial load is not growing," Early said. "If there's growth, it's coming from other sectors. It's a bad time for any rate increase. The long-term implication for the economy and the manufacturing sector is difficult."

In addition, PacifiCorp wants an increase in its authorized profit margins from 10 percent to 11 percent.

Bob Jenks, executive director of the Citizens' Utility Board, said it was unlikely the state utility commission would approve the profit increase.

"We think it's an outrage considering the state of the economy," Jenks said.

Portland General Electric raised rates by 5.6 percent starting this year. The average monthly bill for a PGE customer using 900 kilowatt-hours of electricity grew from $88.21 to $93.59.

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Japan opens part of last town off-limits since nuclear leaks

Futaba Partial Reopening marks limited access to the Fukushima exclusion zone, highlighting radiation decontamination progress, the train station restart, and regional recovery ahead of the Tokyo Olympics after the 2011 nuclear disaster and evacuation.

 

Key Points

A lift of entry bans in Futaba, signaling Fukushima recovery, decontamination progress, and a train station restart.

✅ Unrestricted access to 2.4 km² around Futaba Station

✅ Symbolic step ahead of Tokyo Olympics torch relay

✅ Decommissioning and decontamination to span decades

 

Japan's government on Wednesday opened part of the last town that had been off-limits due to radiation since the Fukushima nuclear disaster nine years ago, in a symbolic move to show the region's recovery ahead of the Tokyo Olympics, even as grid blackout risks have drawn scrutiny nationwide.

The entire population of 7,000 was forced to evacuate Futaba after three reactors melted down due to damage at the town's nuclear plant caused by a magnitude 9. 0 quake and tsunami March 11, 2011.

The partial lifting of the entry ban comes weeks before the Olympic torch starts from another town in Fukushima, as new energy projects like a large hydrogen system move forward in the prefecture. The torch could also arrive in Futaba, about 4 kilometres (2.4 miles) from the wrecked nuclear plant.

Unrestricted access, however, is only being allowed to a 2.4 square-kilometre (less than 1 square-mile) area near the main Futaba train station, which will reopen later this month to reconnect it with the rest of the region for the first time since the accident. The vast majority of Futaba is restricted to those who get permission for a day visit.

The three reactor meltdowns at the town's Fukushima Dai-ichi nuclear power plant spewed massive amounts of radiation that contaminated the surrounding area and at its peak, forced more than 160,000 people to flee, even as regulators later granted TEPCO restart approval for a separate Niigata plant elsewhere in Japan.

The gate at a checkpoint was opened at midnight Tuesday, and Futaba officials placed a signboard at their new town office, at a time when the shutdown of Germany's last reactors has reshaped energy debates abroad.

“I'm overwhelmed with emotion as we finally bring part of our town operations back to our home town," said Futaba Mayor Shiro Izawa. “I pledge to steadily push forward our recovery and reconstruction."

Town officials say they hope to see Futaba’s former residents return, but prospects are grim because of lingering concern about radiation, and as Germany's nuclear exit underscores shifting policies abroad. Many residents also found new jobs and ties to communities after evacuating, and only about 10% say they plan to return.

Futaba's registered residents already has decreased by 1,000 from its pre-disaster population of 7,000. Many evacuees ended up in Kazo City, north of Tokyo, after long bus trips, various stopovers and stays in shelters at an athletic arena and an abandoned high school. The town's government reopened in a makeshift office in another Fukushima town of Iwaki, while abroad projects like the Bruce reactor refurbishment illustrate long-term nuclear maintenance efforts.

Even after radiation levels declined to safe levels, the region's farming and fishing are hurt by lingering concerns among consumers and retailers. The nuclear plant is being decommission in a process that will take decades, with spent fuel removal delays extending timelines, and it is building temporary storage for massive amounts of debris and soil from ongoing decontamination efforts.

 

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Construction of expanded Hoa Binh Hydropower Plant to start October 2020

Expanded Hoa Binh Hydropower Plant increases EVN capacity with 480MW turbines, commercial loan financing, grid stability, flood control, and Da River reliability, supported by PECC1 feasibility work and CMSC collaboration on site clearance.

 

Key Points

A 480MW EVN expansion on the Da River to enhance grid stability, flood control, and seasonal water supply in Vietnam.

✅ 480MW, two turbines, EVN-led financing without guarantees

✅ Improves frequency modulation and national grid stability

✅ Supports flood control and dry-season water supply

 

The extended Hoa Binh Hydropower Plant, which is expected to break ground in October 2020, is considered the largest power project to be constructed this year, even as Vietnam advances a mega wind project planned for 2025.

Covering an area of 99.2 hectares, the project is invested by Electricity of Vietnam (EVN). Besides, Vietnam Electricity Power Projects Management Board No.1 (EVNPMB1) is the representative of the investor and Power Engineering Consulting JSC 1 (EVNPECC1) is in charge of building the feasibility report for the project. The expanded Hoa Binh Hydro Power Plant has a total investment of VND9.22 trillion ($400.87 million), 30 per cent of which is EVN’s equity and the remaining 70 per cent comes from commercial loans without a government guarantee.

According to the initial plan, EVN will begin the construction of the project in the second quarter of this year and is expected to take the first unit into operation in the third quarter of 2023, a timeline reminiscent of Barakah Unit 1 reaching full power, and the second one in the fourth quarter of the same year.

Chairman of the Committee for Management of State Capital at Enterprises (CMSC) Nguyen Hoang Anh said that in order to start the construction in time, CMSC will co-operate with EVN to work with partners as well as local and foreign banks to mobilise capital, reflecting broader nuclear project milestones across the energy sector.

In addition, EVN will co-operate with Hoa Binh People’s Committee to implement site clearance, remove Ba Cap port and select contractors.

Once completed, the project will contribute to preventing floods in the rainy season and supply water in the dry season. The plant expansion will include two turbines with the total capacity of 480MW, similar in scale to the 525-MW hydropower station China is building on a Yangtze tributary, and electricity output of about 488.3 million kWh per year.

In addition, it will help improve frequency modulation capability and stabilise the frequency of the national electricity system through approaches like pumped storage capacity, and reduce the working intensity of available turbines of the plant, thus prolonging the life of the equipment and saving maintenance and repair costs.

Built in the Da River basin in the northern mountainous province of Hoa Binh, at the time of its conception in 1979, Hoa Binh was the largest hydropower plant in Southeast Asia, while projects such as China’s Lawa hydropower station now dwarf earlier benchmarks.

The construction was supported by the Soviet Union all the way through, designing, supplying equipment, supervising, and helping it go on stream. Construction began in November 1979 and was completed 15 years later in December 1994, when it was officially commissioned, similar to two new BC generating stations recently brought online.

 

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B.C.'s Green Energy Ambitions Face Power Supply Challenges

British Columbia Green Grid Constraints underscore BC Hydro's rising imports, peak demand, electrification, hydroelectric variability, and transmission bottlenecks, challenging renewable energy expansion, energy security, and CleanBC targets across industry and zero-emission transportation.

 

Key Points

They are capacity and supply limits straining B.C.'s clean electrification, driving imports and risking reliability.

✅ Record 25% imports in FY2024 raise emissions and costs

✅ Peak demand and transmission limits delay new connections

✅ Drought reduces hydro output; diversified generation needed

 

British Columbia's ambitious green energy initiatives are encountering significant hurdles due to a strained electrical grid and increasing demand, with a EV demand bottleneck adding pressure. The province's commitment to reducing carbon emissions and transitioning to renewable energy sources is being tested by the limitations of its current power infrastructure.

Rising Demand and Dwindling Supply

In recent years, B.C. has experienced a surge in electricity demand, driven by factors such as population growth, increased use of electric vehicles, and the electrification of industrial processes. However, the province's power supply has struggled to keep pace, and one study projects B.C. would need to at least double its power output to electrify all road vehicles. In fiscal year 2024, BC Hydro imported a record 13,600 gigawatt hours of electricity, accounting for 25% of the province's total consumption. This reliance on external sources, particularly from fossil-fuel-generated power in the U.S. and Alberta, raises concerns about energy security and sustainability.

Infrastructure Limitations

The current electrical grid is facing capacity constraints, especially during peak demand periods, and regional interties such as a proposed Yukon connection are being discussed to improve reliability. A report from the North American Electric Reliability Corporation highlighted that B.C. could be classified as an "at-risk" area for power generation as early as 2026. This assessment underscores the urgency of addressing infrastructure deficiencies to ensure a reliable and resilient energy supply.

Government Initiatives and Investments

In response to these challenges, the provincial government has outlined plans to expand the electrical system. Premier David Eby announced a 10-year, $36-billion investment to enhance the grid's capacity, including grid development and job creation measures to support local economies. The initiative focuses on increasing electrification, upgrading high-voltage transmission lines, refurbishing existing generating facilities, and expanding substations. These efforts aim to meet the growing demand and support the transition to clean energy sources.

The Role of Renewable Energy

Renewable energy sources, particularly hydroelectric power, play a central role in B.C.'s energy strategy. However, the province's reliance on hydroelectricity has its challenges. Drought conditions in recent years have led to reduced water levels in reservoirs, impacting the generation capacity of hydroelectric plants. This variability underscores the need for a diversified energy mix, with options like a hydrogen project complementing hydro, to ensure a stable and reliable power supply.

Balancing Environmental Goals and Energy Needs

B.C.'s commitment to environmental sustainability is evident in its policies, such as the CleanBC initiative, which aims to phase out natural gas heating in new homes by 2030 and achieve 100% zero-emission vehicle sales by 2035, supported by networks like B.C.'s Electric Highway that expand charging access. While these goals are commendable, they place additional pressure on the electrical grid. The increased demand from electric vehicles and electrified heating systems necessitates a corresponding expansion in power generation and distribution infrastructure.

British Columbia's green energy ambitions are commendable and align with global efforts to combat climate change. However, achieving these goals requires a robust and resilient electrical grid capable of meeting the increasing demand for power. The province's reliance on external power sources and the challenges posed by climate variability highlight the need for strategic investments in infrastructure and a diversified energy portfolio, guided by BC Hydro review recommendations to keep electricity affordable. By addressing these challenges proactively, B.C. can pave the way for a sustainable and secure energy future.

 

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U.S Bans Russian Uranium to Bolster Domestic Industry

U.S. Russian Uranium Import Ban reshapes nuclear fuel supply, bolstering energy security, domestic enrichment, and sanctions policy while diversifying reactor-grade uranium sources and supply chains through allies, waivers, and funding to sustain utilities and reliability.

 

Key Points

A U.S. law halting Russian uranium imports to boost energy security diversify nuclear fuel and revive U.S. enrichment.

✅ Cuts Russian revenue; reduces geopolitical risk.

✅ Funds U.S. enrichment; supports reactor fuel supply.

✅ Enables waivers to prevent utility shutdowns.

 

In a move aimed at reducing reliance on Russia and fostering domestic energy security for the long term, the United States has banned imports of Russian uranium, a critical component of nuclear fuel. This decision, signed into law by President Biden in May 2024, marks a significant shift in the U.S. nuclear fuel supply chain and has far-reaching economic and geopolitical implications.

For decades, Russia has been a major supplier of enriched uranium, a processed form of uranium used to power nuclear reactors. The U.S. relies on Russia for roughly a quarter of its enriched uranium needs, feeding the nation's network of 94 nuclear reactors operated by utilities which generate nearly 20% of the country's electricity. This dependence has come under scrutiny in recent years, particularly following Russia's invasion of Ukraine.

The ban on Russian uranium is a multifaceted response. First and foremost, it aims to cripple a key revenue stream for the Russian government. Uranium exports are a significant source of income for Russia, and by severing this economic tie, the U.S. hopes to weaken Russia's financial capacity to wage war.

Second, the ban serves as a national energy security measure. Relying on a potentially hostile nation for such a critical resource creates vulnerabilities. The possibility of Russia disrupting uranium supplies, either through political pressure or in the event of a wider conflict, is a major concern. Diversifying the U.S. nuclear fuel supply chain mitigates this risk.

Third, the ban is intended to revitalize the domestic uranium mining and enrichment industry, building on earlier initiatives such as Trump's uranium order announced previously. The U.S. has historically been a major uranium producer, but environmental concerns and competition from cheaper foreign sources led to a decline in domestic production. The ban, coupled with $2.7 billion in federal funding allocated to expand domestic uranium enrichment capacity, aims to reverse this trend.

The transition away from Russian uranium won't be immediate. The law includes a grace period until mid-August 2024, and waivers can be granted to utilities facing potential shutdowns if alternative suppliers aren't readily available. Finding new sources of enriched uranium will require forging partnerships with other uranium-producing nations like Kazakhstan, Canada on minerals cooperation, and Australia.

The long-term success of this strategy hinges on several factors. First, successfully ramping up domestic uranium production will require overcoming regulatory hurdles and addressing environmental concerns, alongside nuclear innovation to modernize the fuel cycle. Second, securing reliable alternative suppliers at competitive prices is crucial, and supportive policy frameworks such as the Nuclear Innovation Act now in law can help. Finally, ensuring the continued safe and efficient operation of existing nuclear reactors is paramount.

The ban on Russian uranium is a bold move with significant economic and geopolitical implications. While challenges lie ahead, the potential benefits of a more secure and domestically sourced nuclear fuel supply chain are undeniable. The success of this initiative will be closely watched not only by the U.S. but also by other nations seeking to lessen their dependence on Russia for critical resources.

 

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Texas utilities struggle to restore power as Harvey hampers progress

Texas Gulf Coast Power Outages from Harvey continue as flooding, high winds, and downed lines paralyze Houston and coastal utilities, while restoration crews from out-of-state work to repair infrastructure and restore electricity across impacted communities.

 

Key Points

Power disruptions across Houston and the Gulf Coast from Harvey, driven by flooding, wind damage, and blocked access.

✅ CenterPoint warns multi-day outages in flooded zones.

✅ AEP Texas aided by crews from Kentucky, Illinois, Missouri.

✅ Entergy expects more outages as storm nears Galveston.

 

Hundreds of thousands of Texans were without power along the Gulf Coast as Tropical Storm Harvey left parts of the Houston area under water, with extended Houston outages compounding response efforts.

There were roughly 280,000 customers without power along the Texas's coast and in Houston and the surrounding areas on Monday, according to reported outages by the state's investor-owned utilities. Harvey, which made landfall on Friday, caused devastating flooding and knocked out power lines along its destructive path, similar to the Louisiana grid rebuild after Laura that required weeks of restoration.

CenterPoint Energy reported more than 100,000 outages earlier on Monday, though that figure was down to 91,744 shortly after 1 p.m. on Monday.

The company said it was unable to access hard-hit areas until floodwaters recede and electric infrastructure dries out, a challenge that, as seen in Florida power restoration efforts elsewhere, has taken weeks to resolve. Outages in the most flooded areas could last for several days, CenterPoint warned.

AEP Texas's coverage area south of Houston had 150,500 customers without electricity as of 11 a.m. ET on Monday. That was down from the peak of its outages on Saturday afternoon, which affected 220,000 customers.

Former FEMA deputy director: Texas has already begun recovery from storm  1:54 PM ET Mon, 28 Aug 2017 | 05:57

Corpus Christi and the surrounding areas along the Gulf Coast were still experiencing the most outages, while persistent Toronto outages after a spring storm underscored how long recovery can take in urban areas. AEP credited assistance from out-of-state workers for helping to get the lights back on.

"Thousands of resources have arrived from across the country to help AEP Texas with restoration efforts following this historic weather event. Crews from Kentucky, Illinois, Missouri and other states have arrived and are working on restoring power to those impacted by Hurricane Harvey," AEP said in a statement.

Entergy reported 29,500 customers were without power on Monday in areas north of Houston. The company warned that additional outages were expected if Harvey moves inland near the island city of Galveston on Wednesday as anticipated, a pattern similar to New Orleans during Ida where electricity failed despite levees holding.

Houston, Beaumont and Victoria are expected to see continued periods of torrential rain through Tuesday, before Harvey begins to move north on Wednesday and out of the flood zone by Thursday.

"Our crews are safely restoring power as quickly as possible, but the continued wind, rain and flooding are having an impact on restoration efforts," Entergy said in a statement.

South of Houston, about 7,500 Texas New Mexico Power Company customers were still experiencing outages, according to the company's outage map.

 

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Manitoba Hydro scales back rate increase next year

Manitoba Hydro 3.5 Percent Rate Increase proposes a smaller electricity rate hike under Public Utilities Board oversight to bolster financial reserves, address debt and Bipole III costs, amid shifting export sales and water flow conditions.

 

Key Points

It is Manitoba Hydro's proposed 3.5% electricity rate hike for 2019-20 to shore up finances under PUB oversight.

✅ PUB review sought without lengthy hearing

✅ Revenue boost forecast at 59 million dollars

✅ Natural gas rates flat; class shifts adjust bills

 

Manitoba Hydro is scaling back its rate hike request for next year, instead of the annual 7.9 per cent hikes the Crown corporation previously said it would need until 2023-24 to address debt. 

Hydro is asking the Public Utilities Board for a 3.5 per cent rate increase next year, which would take effect on April 1.

In last week's application, Hydro said its new board is reviewing the corporation's financial picture. Once that is complete, the utility expects to submit a new multi-year rate plan in late 2019 that addresses the organization's long-term future.

"It's too speculative at this point to discuss any possible future rate increases," spokesperson Bruce Owen said in an email.

The proposed increase next year is similar to other jurisdictions and nearly in line with the Public Utilities Board's decision to allow an average 3.6 per cent jump in electricity rates in 2018-19, which began this summer.

"The requested 3.5 per cent rate increase … generates a modest level of net income under average water flow conditions that will assist in gradually building the revenue base and reduce the risk of the corporation incurring a loss" in 2019-20, the rate application said.

If approved, consumers would face their second rate increase from Hydro in under a year.

Crown Services Minister Colleen Mayer said she's sympathetic to customers bracing for another rate increase amid NL rate hike concerns that far exceeds the rate of inflation.

"I hear that, very clearly," she said. "The NDP left us with an insurmountable problem — we're trying to fix that."

Hydro goes to court over special rate class for First Nations residents in Manitoba

National Energy Board OK's Manitoba-Minnesota Transmission Project

Next year's rate increase is projected to bring in $59 million of revenue, boosting the Crown corporation's financial reserves by $31 million.

Without it, the utility would deal with a net loss, it said.

This time, Hydro officials are asking PUB to forgo a rate hearing, suggesting neither itself nor the board has the resources for a lengthy six- to nine-month process to review an application where not much has changed financially and would generate a "minimum level of net income," Hydro said in a letter to the board.

The short-term rate relief, the letter recommends, should be "awarded in a timely and cost-effective manner, recognizing that the corporation's long-term financial forecasts will be finalized and available for review" in late 2019.

Hydro's net income next year will be lower than projected, the rate application said, due to a reduction in export sales and increases in depreciation and financing costs from Bipole III.

"Even though they had a total implosion of their previous board, on this very issue, they haven't learned lessons and they continue to be cheerleaders for these rapid rate increases," Kinew said, referring to the exodus of every board member but one earlier this year.

Manitoba Hydro's burgeoning debt surpasses $19 billion

On natural gas, Manitoba Hydro is asking PUB for no rate increase for the next two years.

There will, however, be some changes in rates in different customer classes, Owen said, resulting in modest rate reductions for mainly residential customers and increases for customers who use a lot of natural gas.

The corporation also wants to stop collecting fees to support the furnace replacement program. The initiative will continue with existing fees.

 

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