Court sides with EPA in power plant case

Brazil ICMS Tax Cap limits state VAT on fuels, natural gas, electricity, communications, and transit, promising short-term price relief amid inflation, with federal compensation to states and potential legal challenges affecting investments and ANP auctions.

Key Points

A policy capping state VAT at 17-18 percent on fuels, electricity, and services to temper prices and inflation.

✅ Caps VAT to 17-18% on fuels, power, telecom, transit

✅ Short-term relief; medium-long term impact uncertain

✅ Federal compensation; potential court challenges, investment risk

Brazil’s congress approved a bill that limits the ICMS tax rate that state governments can charge on fuels, natural gas, electricity, communications, and public transportation. 

Local lawyers told BNamericas that the measure may reduce fuel and power prices in the short term, similar to Brazil power sector relief loans seen during the pandemic, but it is unlikely to produce any major effects in the medium and long term. 

In most states the ceiling was set at 17% or 18% and the federal government will pay compensation to the states for lost tax revenue until December 31, via reduced payments on debts that states owe the federal government.

The bill will become law once signed by President Jair Bolsonaro, who pushed strongly for the proposal with an eye on his struggling reelection campaign for the October presidential election. Double-digit inflation has turned into a major election issue and fuel and electricity prices have been among the main inflation drivers, as seen in EU energy-driven inflation across the bloc this year. Congress’ approval of the bill is seen by analysts as political victory for the Brazilian leader.

How much difference will it make?

Marcus Francisco, tax specialist and partner at Villemor Amaral Advogados, said that in the formation of fuel and electricity prices there are other factors, including high natural gas prices, that drive increases.

“In the case of fuels, if the barrel of oil [price] increases, automatically the final price for the consumer will go up. For electricity, on the other hand, there are several subsidies and policy choices such as Florida rejecting federal solar incentives that are part of the price and that can increase the rate [paid],” he said. 

There is also a possibility that some states will take the issue to the supreme court since ICMS is a key source of revenue for them, Francisco added.

Tiago Severini, a partner at law firm Vieira Rezende, said the comparison between the revenue impact and the effective price reduction, based on the estimates made by the states and the federal government, seems disproportionate, and, as seen in Europe, rolling back European electricity prices is often tougher than it appears. 

“In other words, a large tax collection impact is generated, which is quite unequal among the different states, for a not so strong price reduction,” he said.

“Due to the lack of clarity regarding the precision of the calculations involved, it’s difficult even to assess the adequacy of the offsets the federal government has been considering, and international cases such as France's new electricity pricing scheme illustrate how complex it can be to align fiscal offsets with regulatory constraints, to cover the cost it would have with the compensation for the states” Severini added.

The compensation ideas that are known so far include hiking other taxes, such as the social contribution on net profits (CSLL) that is paid by oil and gas firms focused on exploration and production.

“This can generate severe adverse effects, such as legal disputes, reduced investments in the country, and reduced attractiveness of the new auctions by [sector regulator] ANP, and costly interventions like the Texas electricity market bailout after extreme weather events,” Severini said. 

Related News

• Electricity Forum News

• Energy Policy News

Hydro One Account Customization lets Ontario customers pick billing due dates, enable balanced billing, get early high usage notifications, monitor electricity consumption, and receive outage alerts, offering flexibility during COVID-19.

Key Points

A flexible toolkit to set due dates, balance bills, get usage alerts, and track electricity.

✅ Pick your billing due date for better cash flow

✅ Balanced billing smooths seasonal usage spikes

✅ Early high usage and outage alerts via text or email

Hydro One announced it is providing its customers with the flexibility to customize their account. Customers can choose their own billing due date, flatten usage spikes from temperature fluctuations through balanced billing and the Ultra-Low Overnight Price Plan, and monitor their electricity consumption by signing up for early high usage notifications.

Research shows that Ontario electricity customers want more choice and flexibility (CNW Group/Hydro One Inc.)
"Being in-tune with our customers' needs is more important than ever. As we continue to navigate the COVID-19 pandemic, customers tell us that choice and flexibility, alongside electricity relief, will help them during this difficult time," said Jason Fitzsimmons, Chief Corporate Affairs and Customer Care Officer, Hydro One. "As a customer-driven organization, we have an important responsibility to support customers with relief, flexibility and choice."

According to recent research conducted by Angus Reid, 78 per cent of Ontario electricity customers said balanced billing would help them better manage their finances, even as peak hydro rates remained unchanged for many self-isolating customers. Balanced billing flattens out the spikes in electricity usage that commonly occurs in the summer due to air conditioning use and in the winter due to heating.

The research also found that 72 per cent of customers would like to pick their own due date to better manage their finances. This feature is now included in Hydro One's new customization bundle, which will be shared with customers through an awareness campaign. Other customization tools include alerts when electricity usage falls outside of the customer's normal pattern, the ability to report outages online and the ability to receive text messages or emails when outages occur. Customers can visit www.HydroOne.com/Choice to learn more.

"Customers can pick and choose the tools that work best for them. We are now able to offer a suite of features built for any lifestyle as our employees support Ontario's COVID-19 response across the province," said Fitzsimmons.

In addition to these customization options, Hydro One has also developed a number of customer support measures during COVID-19, including a Pandemic Relief Fund to offer payment flexibility and financial assistance to customers. The company is also extending its ban on electricity disconnections to ensure that no customer is disconnected at a time when support is needed most. More information about Hydro One's Pandemic Relief Program can be found at www.HydroOne.com/PandemicRelief. Customers can continue to contact Hydro One to determine individual payment plans and determine financial assistance programs available to meet their needs, especially as disconnection pressures can arise for some households.

Related News

• Electricity Forum News

• Utility Operations News

U.S. EV and Hybrid Sales 2024 show slower adoption versus gas-powered cars, as charging infrastructure gaps, range anxiety, higher upfront costs, and affordability concerns persist despite incentives, battery tech advances, and expanding fast-charging networks.

Key Points

They represent 10-15% of U.S. car sales, lagging gas models due to costs, charging gaps, range anxiety, and access.

✅ 10-15% of U.S. auto sales; gas cars dominate

✅ Barriers: upfront cost, limited charging, range anxiety

✅ Incentives, battery tech, and networks may boost adoption

Sales of hybrid and electric vehicles (EVs) in the U.S. are continuing to trail behind traditional gas-powered vehicles in 2024, despite significant advancements in automotive technology and growing public awareness of environmental concerns. While the electric vehicle market has seen steady growth and recent sales momentum over the past few years, the gap between EVs and gasoline-powered cars remains wide.

In 2024, hybrid and electric vehicles are projected to account for roughly 10-15% of total car sales in the U.S., a figure that, though significant, still lags far behind the sales of gas-powered vehicles and follows a Q1 2024 EV market share dip in the U.S., according to recent data. Analysts point to several factors contributing to this slower adoption rate, including higher upfront costs, limited charging infrastructure, and consumer concerns over range anxiety. Additionally, while EVs and hybrids offer lower lifetime operating costs, the initial price difference remains a hurdle for many prospective buyers.

One of the key challenges for EV sales continues to be the perception of cost, even as analyses show they can be better for the planet and often your budget over time. While federal and state incentives have made EVs more affordable, especially for lower-income buyers, the price tag for many electric models remains steep, particularly for higher-end vehicles. Even with government rebates, EVs can still be priced higher than their gasoline counterparts, making them less accessible for middle-class consumers. Many potential buyers are also hesitant to make the switch, unsure if the long-term savings will outweigh the initial investment.

Another critical factor is the limited charging infrastructure in many parts of the country. Though major cities have seen significant improvements in charging stations, rural areas and smaller towns still lack the necessary infrastructure to support widespread EV use. This uneven distribution of charging stations leads to concerns about being stranded in areas without access to fast-charging options. While automakers are working on expanding charging networks, the pace of this development is slow, and EVs won't go mainstream until key problems are fixed according to industry leaders.

Range anxiety is also a continuing issue, despite improvements in battery technology. Though newer electric vehicles can go further on a single charge than ever before, the range of many EVs still doesn't meet the expectations of some drivers, particularly those who regularly take long road trips or live in rural areas. The longer charging times and the necessity of planning routes around charging stations add to the hesitation, especially when gasoline-powered vehicles provide greater convenience and flexibility.

The shift toward EVs is further hindered by the continued dominance of gas-powered cars in the market. Gasoline vehicles benefit from decades of development, an extensive fueling infrastructure, and familiarity with the technology. For many consumers, the convenience, affordability, and ease of use of gas-powered vehicles still outweigh the benefits of switching to an electric alternative. Additionally, with fluctuating fuel prices, many drivers continue to find gas-powered cars relatively cost-effective in terms of daily commuting, especially when compared to the current costs of EV ownership.

Despite these challenges, there is hope for a future shift. The federal government’s push for stricter emissions regulations and tax incentives continues to fuel growth in the electric vehicle market. As automakers ramp up production and more affordable options become available, EV sales are expected to increase in the coming years. Companies like Tesla, Ford, whose hybrids are getting a boost, and General Motors are leading the charge, while new manufacturers like Rivian and Lucid Motors are offering alternatives to traditional gasoline vehicles.

Furthermore, the development of new technologies, such as solid-state batteries and faster charging systems, could help alleviate some of the current drawbacks of electric vehicles. If these advancements reach mass-market production in the next few years, they could help make EVs a more attractive and practical option for consumers, aligning with within-a-decade adoption forecasts from some industry observers.

In conclusion, while hybrid and electric vehicles are growing in popularity, gas-powered vehicles continue to dominate the U.S. car market in 2024. Challenges such as high upfront costs, limited charging infrastructure, and concerns about range persist, making it difficult for many consumers to make the switch to electric even as they ask if it's time to buy an EV in 2024. However, with continued investment in technology and infrastructure, the gap between EVs and gas-powered vehicles could narrow in the years to come.

Related News

• Electricity Forum News

• EV Infrastructure News

MeyGen Tidal Stream Project delivers record 13.8 GWh to Scotland's grid, showcasing renewable ocean energy. Simec Atlantis Energy's 6 MW array of tidal turbines advances EU power goals and plans an ocean-powered data center.

Key Points

A Scottish tidal energy array exporting record power, using four 1.5 MW turbines and driving renewable innovation.

✅ Delivered 13.8 GWh to the grid in 2019, a project record.

✅ Four 1.5 MW turbines in Phase 1A, 6 MW installed.

✅ Plans include an ocean-powered data center near site.

A tidal power project in waters off the north coast of Scotland, where Scotland’s wind farms also deliver significant output, sent more than 13.8 gigawatt hours (GWh) of electricity to the grid last year, according to an operational update issued Monday. This figure – a record – almost doubled the previous high of 7.4 GWh in 2018.

In total, the MeyGen tidal stream array has now exported more than 25.5 GWh of electricity to the grid since the start of 2017, according to owners Simec Atlantis Energy. Phase 1A of the project is made up of four 1.5 megawatt (MW) turbines.

The 13.8 GWh of electricity exported in 2019 equates to the average yearly electricity consumption of roughly 3,800 “typical” homes in the U.K., where wind power records have been set recently, according to the company, with revenue generation amounting to £3.9 million ($5.09 million).

Onshore maintenance is now set to be carried out on the AR1500 turbine used by the scheme, with Atlantis aiming to redeploy the technology in spring.

In addition to the production of electricity, Atlantis is also planning to develop an “ocean-powered data centre” near the MeyGen project.

The European Commission has described “ocean energy” as being both abundant and renewable, and milestones like the biggest offshore windfarm starting U.K. supply underscore wider momentum, too. It’s estimated that ocean energy could potentially contribute roughly 10% of the European Union’s power demand by the year 2050, according to the Commission.

While tidal power has been around for decades — EDF’s 240 MW La Rance Tidal Power Plant in France was built as far back as 1966, and the country’s first offshore wind turbine has begun producing electricity — recent years have seen a number of new projects take shape.

In December last year, Scottish tidal energy business Nova Innovation was issued with a permit to develop a project in Nova Scotia, Canada, aiming to harness the Bay of Fundy tides in the region further.

In an announcement at the time, the firm said a total of 15 tidal stream turbines would be installed by the year 2023. The project, according to the firm, will produce enough electricity to power 600 homes, as companies like Sustainable Marine begin delivering tidal energy to the Nova Scotia grid.

Elsewhere, a business called Orbital Marine Power is developing what it describes as the world’s most powerful tidal turbine, with grid-supplied output already demonstrated.

The company says the turbine will have a swept area of more than 600 square meters and be able to generate “over 2 MW from tidal stream resources.” It will use a 72-meter-long “floating superstructure” to support two 1 MW turbines.

Related News

• Electricity Forum News

• Power Generation News

Maple Ridge Lithium-Ion Battery Plant will be a $1B E-One Moli clean-tech facility in Canada, manufacturing high-performance cells for tools and devices, with federal and provincial funding, creating 450 jobs and boosting battery supply chains.

Key Points

A $1B E-One Moli facility in B.C. producing lithium-ion cells, backed by federal and provincial funding.

✅ $204.5M federal and up to $80M B.C. support committed

✅ E-One Moli to create 450 skilled jobs in Maple Ridge

✅ High-performance cells for tools, medical devices, and equipment

A lithium-ion battery cell production plant costing more than $1 billion will be built in Maple Ridge, B.C., Prime Minister Justin Trudeau and Premier David Eby jointly announced on Tuesday.

Trudeau and Eby say the new E-One Moli facility will bolster Canada's role as a global leader in clean technology, as recent investments in Quebec's EV battery assembly illustrate today.

It will be the largest factory in Canada to manufacture such high-performance batteries, Trudeau said during the announcement, amid other developments such as a new plant in the Niagara Region supporting EV growth.

The B.C. government will contribute up to $80 million, while the federal government plans to contribute up to $204.5 million to the project. E-One Moli and private sources will supply the rest of the funding. 

Trudeau said B.C. has long been known for its innovation in the clean-technology sector, and securing the clean battery manufacturing project, alongside Northvolt's project near Montreal, will build on that expertise.

"The world is looking to Canada. When we support projects like E-One Moli's new facility in Maple Ridge, we bolster Canada's role as a global clean-tech leader, create good jobs and help keep our air clean," he said.

"This is the future we are building together, every single day. Climate policy is economic policy."

Nelson Chang, chairman of E-One Moli Energy, said the company has always been committed to innovation and creativity as creator of the world's first commercialized lithium-metal battery.

E-One Moli has been operating a plant in Maple Ridge since 1990. Its parent company, Taiwan Cement Corp., is based in Taiwan.

"We believe that human freedom is a chance for us to do good for others and appreciate life's fleeing nature, to leave a positive impact on the world," Chang said.

"We believe that [carbon dioxide] reduction is absolutely the key to success for all future businesses," he said.

The new plant will produce high-performance lithium-cell batteries found in numerous products, including vacuums, medical devices, and power and gardening tools, aligning with B.C.'s grid development and job plans already underway, and is expected to create 450 jobs, making E-One Moli the largest private-sector employer in Maple Ridge.

Eby said every industry needs to find ways to reduce their carbon footprint to ensure they have a prosperous future and every province should do the same, with resource plays like Alberta's lithium supporting the EV supply chain today.

It's the responsible thing to do given the record wildfires, extreme heat, and atmospheric rivers that caused catastrophic flooding in B.C., he said, with large-scale battery storage in southwestern Ontario helping grid reliability.

"We know that this is what we have to do. The people who suggest that we have to accept that as the future and stop taking action are simply wrong."

Trudeau, Eby and Chang toured the existing plant in Maple Ridge, east of Vancouver, before making the announcement.

The prime minister wove his way around several machines and apologized to technicians about the commotion his visit was creating.

The Canadian Taxpayers Federation criticized the federal and B.C. governments for the announcement, saying in a statement the multimillion-dollar handout to the battery firm will cost taxpayers hundreds of thousands of dollars for each job.

Federation director Franco Terrazzano said the Trudeau government has recently given "buckets of cash" to corporations such as Volkswagen, Stellantis, the Ford Motor Company and Northvolt.

"Instead of raising taxes on ordinary Canadians and handing out corporate welfare, governments should be cutting red tape and taxes to grow the economy," said Terrazzano. 

Construction is expected to start next June, as EV assembly deals put Canada in the race, and the company plans for the facility to be fully operational in 2028.

Related News

• Electricity Forum News

• EV Infrastructure News

Hydro One Leadership Shakeup unsettles investors as Ontario government ousts CEO and board, pressuring shares; analysts cite political and regulatory risk, stock volatility, trimmed price targets, and dividend stability at the regulated utility.

Key Points

An abrupt CEO exit and board overhaul at Hydro One, driving share declines and raising political and regulatory risk.

✅ Shares fall as CEO retires and board resigns under provincial pressure.

✅ Analysts cut price targets; warn of political, regulatory risks.

✅ New board to pick CEO; province consults on compensation.

Hydro One Ltd. shares slid Thursday with some analysts sounding warnings of greater uncertainty after the new Ontario government announced the retirement of the electrical utility's chief executive and the replacement of its board of directors.

 After sagging by almost eight per cent in early trading on the Toronto Stock Exchange, following news that Q2 profit plunged 23% amid weaker electricity revenue, shares of the company were later down four per cent, or 81 cents, at $19.36 as of 11:42 a.m. ET.

On Wednesday, after stock markets had closed for the day, Ontario Premier Doug Ford announced the immediate retirement of Hydro One CEO Mayo Schmidt. He leaves with a $400,000 payout in lieu of post-retirement benefits and allowances, Hydro One said.

Doug Ford's government forces out Hydro One '$6-million man'

During the recent provincial election campaign, Ford vowed to fire Schmidt, who earned $6.2 million last year and whose salary wouldn't be reduced despite calls to cut electricity costs.

Paul Dobson, Hydro One's chief financial officer, will serve as acting CEO until a new top executive is selected.

Ford also said the entire board of directors of the utility would resign. Hydro One said a new board — four members of which will be nominated by the province — will select the company's next CEO, and the province will be consulted on the next leader's compensation.

A new board is expected to be formed by mid-August.

The provincial government is the largest single investor in Hydro One, holding a 47 per cent stake. The company was partly privatized by the former Liberal government in 2015, while the NDP has proposed to make hydro public again in Ontario to change course.

Doug Ford promises to keep Pickering nuclear plant open until 2024

In response to the government's move to supplant the utility's board and CEO, some analysts cautioned investors about too many unknowns in the near-term outlook, citing raised political or regulatory risks.

Analyst Jeremy Rosenfield of iA Securities cut his rating on Hydro One shares to hold from buy, and reduced his 12-month price target for the stock to $24 from $26.

Rosenfield said the stock is still a defensive investment supported by stable earnings and cash flows, good earnings growth and healthy dividend.

However, he said in a research note that "the heightened potential for further political interference in the province's electricity market and regulated utility framework represent key risk factors that are likely to outweigh Hydro One's fundamentals over the near term."

Potential challenge to find new CEO

Laurentian Bank Securities analyst Mona Nazir said in a research note that the magnitude of change all at once was "surprising but not shocking."

She said the agreement that will see Hydro One consult with the provincial government on matters involving executive pay could have an impact on the hiring of a new CEO for the utility.

"Given the government's open and public criticism of the company and a potential ceiling on compensation, it may be challenging to attract top talent to the position," she wrote.

Laurentian cut its rating on the Hydro One to hold and reduced its price target to $21 from $24.

Analysts at CIBC World Markets said investors face an uncertain future, noting parallels with debates at Manitoba Hydro over political direction.

"In particular, we are are concerned about the government meddling in with [power] rates," wrote Robert Catellier and Archit Kshetrapal in a research note, adding they believe the new provincial government is aiming for a 12 per cent reduction in customers' power bills.

CIBC reduced its price target on Hydro One's shares to $20.50 from its previous target of $24.

Related News

• Electricity Forum News

• T&D Business News