Group takes stand against rate increases

By The Morehead News


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An Elliottville man who is not happy about East Kentucky Power Cooperative's (EKPC) recent rate increase is taking a stand and he is not alone.

Doug Doerrfeld is a member of Kentuckians for the Commonwealth. His organization, along with the Cumberland Chapter of the Sierra Club and the Kentucky Environmental Foundation, commissioned an EKPC financial report. The report indicates if EKPC moves forward with energy plans, its financial situation will worsen and in effect cost its customers even more. Based on the report, the organizations are encouraging EKPC to make some changes.

"We're proposing they cancel Smith One plans and move aggressively in the direction of community based energy efficiency and weatherization programs."

The proposed Smith One coal-fired power plant will be located in Clark County.

Effective April 1, EKPC raised its rates nearly $5.60. Rowan County's customers who are affected by this increase include those of Fleming-Mason Energy, Grayson Rural Electric Corp. and Clark Energy.

Doerrfeld is a Grayson Rural Electric customer.

"I'm not happy about (the increase) at all and neither are my neighbors," Doerrfeld said.

This marks the third year in a row that EKPC has raised its rates. The PSC accepted a settlement that permits EKPC to raise the company's wholesale rates in order to increase its annual revenue by nearly 7 percent, or $59.5 million.

EKPC Spokesman Nick Comer said customers will eventually save money because of the $5.60 increase. This is because the company has been purchasing power from outside sources, he said. EKPC has a shortage of generating capacity and has had unscheduled shutdowns at its generating facilities. The increase will help EKPC pay for its new H.L. Spurlock Station power plant in Maysville, according to Comer.

Doerrfeld said TR Rose Associates' financial report proves EKPC's priority to build the new coal-fired power plant is misaligned with the direction of capital markets and energy policy.

The report, titled "The Right Decision for Changing Times," states that coal is no longer a low-risk or least-cost fuel source for utilities or their ratepayers. The estimated cost of Smith One is $766 million, which is 78 percent more than what it cost EKPC to build a similar plant in 2005.

"Over the years our association has carefully tracked energy trends and practices and the financial situation of many investor owned and cooperative utilities like EKPC," said report author Tom Sanzillo. "Based on the co-op's current financial weaknesses, it is clear to me that EKPC should abandon the high-risk, high priced Smith Number One power plant, and instead benefit itself and its customers by investing in clean energy options."

EKPC can provide its customers with electricity through energy efficiency and renewable energy, according to Elizabeth Crowe, Director of the Kentucky Environmental Foundation.

Crowe said there are health and environmental burdens that come along with coal-burning power plants. Stopping the development of Smith One will avoid about $500 million of new debt at a time when EKPC needs to improve its financial position and credit rating.

"Smith One will be one of the cleanest coal generating units in the nation," Comer said. "It will provide hundreds of jobs during the time it's being built, in addition to jobs when it is in operation. East Kentucky Power has looked at renewables. In fact, we're generating more renewable energy than any other plants in Kentucky."

Comer said EKPC is looking at 22 proposals for additional renewable power, including wind, solar and biomass.

"Any time we look at a new proposal we've got to consider, 'How does this impact our members' bills? We have been involved in energy efficiency," Comer said. That is something that certainly has its place. We cannot provide enough power to replace the need for Smith Number One. We don't want to be in a situation when we don't have the capacity to provide for our members."

Kentuckians for the Commonwealth, the Cumberland Chapter of the Sierra Club and the Kentucky Environmental Foundation are not convinced by EKPC's estimate of electricity demand.

Officials with EKPC have discussed the matter with the grassroots organizations that commissioned "The Right Decision for Changing Times."

"We've explained to them the process that East Kentucky Power goes through to come up with a proposal for Smith Number One," Comer said. "There are a lot of variables we're considering in that process."

EKPC provides electricity to and is owned by 16 not-for-profit distribution cooperatives. The company serves nearly 500,000 customers in 89 Kentucky counties.

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First Nuclear Reactors Built in 30 Years Take Shape at Georgia Power Plant

Vogtle Units 3 and 4 are Westinghouse AP1000 nuclear reactors under construction in Waynesboro, Georgia, led by Southern Nuclear, Georgia Power, and Bechtel, adding 2,234 MWe of carbon-free baseload power with DOE loan guarantees.

 

Key Points

Vogtle Units 3 and 4 are AP1000 reactors in Georgia delivering 2,234 MWe of low-carbon baseload electricity.

✅ Each unit: Westinghouse AP1000, 1,117 MWe capacity.

✅ Managed by Southern Nuclear, built by Bechtel.

✅ DOE loan guarantees support financing and risk.

 

Construction is ongoing for two new nuclear reactors, Units 3 and 4, at Georgia Power's Alvin W. Vogtle Electric Generating Plant in Waynesboro, Ga. the first new nuclear reactors to be constructed in the United Stated in 30 years, mirroring a new U.S. reactor startup that will provide electricity to more than 500,000 homes and businesses once operational.

Construction on Unit 3 started in March 2013 with an expected completion date of November 2021. For Unit 4, work began in November 2013 with a targeted delivery date of November 2022. Each unit houses a Westinghouse AP1000 (Advanced Passive) nuclear reactor that can generate about 1,117 megawatts (MWe). The reactor pressure vessels and steam generators are from Doosan, a South Korean firm.

The pouring of concrete was delayed to 2013 due to the United States Nuclear Regulatory Commission issuing a license amendment which permitted the use of higher-strength concrete for the foundations of the reactors, eliminating the need to make additional modifications to reinforcing steel bar.

The work is occurring in the middle of an operational nuclear facility, and the construction area contains many cranes and storage areas for the prefabricated parts being installed. Space also is needed for various trucks making deliveries, especially concrete.

The reactor buildings, circular in shape, are several hundred feet apart from one another and each one has an annex building and a turbine island structure. The estimated total price for the project is expected in the $18.7 billion range. Bechtel Corporation, which built Units 1 and 2, was brought in January 2017 to take over the construction that is being overseen by Southern Nuclear Operating Company (SNOC), which operates the plant.

The project will require the equivalent of 3,375 miles of sidewalk; the towers for Units 3 and 4 are 60 stories high and have two million pound CA modules; the office space for both units is 300,000 sq. ft.; and there are more than 8,000 construction workers over 30 percent being military veterans. The new reactors will create 800 permanent jobs.

Southern Nuclear and Georgia Power took over management of the construction project in 2017 after Westinghouse's Chapter 11 bankruptcy. The plant, built in the late 1980s with Unit 1 becoming operational in 1987 and Unit 2 in 1989, is jointly owned by Georgia Power (45.7 percent), Oglethorpe Power Corporation (30 percent), Municipal Electric Authority of Georgia (22.7 percent) and Dalton Utilities (1.6 percent).

"Significant progress has been made on the construction of Vogtle 3 and 4 since the transition to Southern Nuclear following the Westinghouse bankruptcy," said Paul Bowers, Chairman, President and CEO of Georgia Power. "While there will always be challenges in building the first new nuclear units in this country in more than 30 years, we remain focused on reducing project risk and maintaining the current project momentum in order to provide our customers with a new carbon-free energy source that will put downward pressure on rates for 60 to 80 years."

The Vogtle and Hatch nuclear plants currently provide more than 20 percent of Georgia's annual electricity needs. Vogtle will be the only four-unit nuclear facility in the country. The energy is needed to meet the rising demand for electricity as the state expects to have more than four million new residents by 2030.

The plant's expansion is the largest ongoing construction project in Georgia and one of the largest in the state's history, while comparable refurbishments such as the Bruce reactor overhaul progress in Canada. Last March an agreement was signed to secure approximately $1.67 billion in additional Department of Energy loan guarantees. Georgia Power previously secured loan guarantees of $3.46 billion.

The signing highlighted the placement of the top of the containment vessel for Unit 3, echoing the Hinkley Point C roof lift seen in the U.K., which signified that all modules and large components had been placed inside it. The containment vessel is a high-integrity steel structure that houses critical plant components. The top head is 130 ft. in diameter, 37 ft. tall, and weighs nearly 1.5 million lbs. It is comprised of 58 large plates, welded together with each more than 1.5 in. thick.

"From the very beginning, public and private partners have stood with us," said Southern Company Chairman, President and CEO Tom Fanning. "Everyone involved in the project remains focused on sustaining our momentum."

Bechtel has completed more than 80 percent of the project, and the major milestones for 2019 have been met, aligning with global nuclear milestones reported across the industry, including setting the Unit 4 pressurizer inside the containment vessel last February, which will provide pressure control inside the reactor coolant system. More specialized construction workers, including craft labor, have been hired via the addition of approximately 300 pipefitters and 350 electricians since November 2018. Another 500 to 1,000 craft workers have been more recently brought in.

A key accomplishment occurred last December when 1,300 cu. yds. of concrete were poured inside the Unit 4 containment vessel during a 21-hour operation that involved more than 100 workers and more than 120 truckloads of concrete. In 2018 alone, more than 23,000 cu. yds. of concrete were poured part of the nearly 600,000 cu. yds. placed since construction started, and the installation of more than 16,200 yds. of piping.

Progress also has been solid for Unit 3. Last January the integrated head package (IHP) was set inside the containment vessel. The IHP, weighing 475,000 lbs. and standing 48 ft. tall, combines several separate components in one assembly and allows the rapid removal of the reactor vessel head during a refueling outage. One month earlier, the placement of the third and final ring for containment vessel, and the placement of the fourth and final reactor coolant pump (RCP, 375,000 lbs.), were executed.

"Weighing just under 2 million pounds, approximately 38 feet high and with a diameter of 130 feet, the ring is the fourth of five sections that make up the containment vessel," stated a Georgia Power press release. "The RCPs are mounted to the steam generator and serve a critical part of the reactor coolant system, circulating water from the steam generator to the reactor vessel, allowing sufficient heat transfer for safe plant operation. In the same month, the Unit 3 shield building with additional double-decker panels, was placed.

According to a construction update from Georgia Power, a total of eight six-panel sections have been placed, with each one measuring 20 ft. tall and 114 ft. wide, weighing up to 300,000 lbs. To date, more than half of the shield building panels have been placed for Unit 3. The shield building panels, fabricated in Newport News, Va., provide structural support to the containment cooling water supply and protect the containment vessel, which houses the reactor vessel.

Building the reactors is challenging due to the design, reflecting lessons from advanced reactors now being deployed. Unit 3 will have 157 fuel assemblies, with each being a little over 14 ft. long. They are crucial to fuelling the reactor, and once the initial fueling is completed, nearly one-third of the fuel assemblies will be replaced for each re-fuelling operation. In addition to the Unit 3 containment top, placement crews installed three low-pressure turbine rotors and the generator rotor inside the unit's turbine building.

Last November, major systems testing got underway at Unit 3 as the site continues to transition from construction toward system operations. The Open Vessel Testing will demonstrate how water flows from the key safety systems into the reactor vessel ensuring the paths are not blocked or constricted.

"This is a significant step on our path towards operations," said Glen Chick, Vogtle 3 & 4 construction executive vice president. "[This] will prepare the unit for cold hydro testing and hot functional testing next year both critical tests required ahead of initial fuel load."

It also confirms that the pumps, motors, valves, pipes and other components function as designed, a reminder of how issues like the South Carolina plant leak can disrupt operations when systems falter.

"It follows the Integrated Flush process, which began in August, to push water through system piping and mechanical components that feed into the Unit 3 reactor vessel and reactor coolant loops for the first time," stated a press release. "Significant progress continues ... including the placement of the final reinforced concrete portion of the Unit 4 shield building. The 148-cubic yard placement took eight hours to complete and, once cured, allows for the placement of the first course of double-decker panels. Also, the upper inner casing for the Unit 3 high-pressure turbine has been placed, signifying the completion of the centerline alignment, which will mean minimal vibration and less stress on the rotors during operations, resulting in more efficient power generation."

The turbine rotors, each weighing approximately 200 tons and rotating at 1,800 revolutions per-minute, pass steam through the turbine blades to power the generator.

The placement of the middle containment vessel ring for Unit 4 was completed in early July. This required several cranes to work in tandem as the 51-ft. tall ring weighed 2.4 million lbs. and had dozens of individual steel plates that were fabricated on site.

A key part of the construction progress was made in late July with the order of the first nuclear fuel load for Unit 3, which consists of 157 fuel assemblies with each measuring 14 ft. tall.

On May 7, Unit 3 was energized (permanently powered), which was essential to perform the testing for the unit. Prior to this, the plant equipment had been running on temporary construction power.

"[This] is a major first step in transitioning the project from construction toward system operations," Chick said.

Construction of the north side of the Unit 3 Auxiliary Building (AB) has progressed with both the floor and roof modules being set. Substantial work also occurred on the steel and concrete that forms the remaining walls and the north AB roof at elevation.

 

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Can COVID-19 accelerate funding for access to electricity?

Africa Energy Access Funding faces disbursement bottlenecks as SDG 7 goals demand investment in decentralized solar, minigrids, and rural electrification; COVID-19 pressures donors, requiring faster approvals, standardized documentation, and stronger project preparation and due diligence.

 

Key Points

Financing to expand Africa's electrification, advancing SDG 7 via disbursement to decentralized solar and minigrids.

✅ Accelerates investment for SDG 7 and rural electrification

✅ Prioritizes decentralized solar, minigrids, and utilities

✅ Speeds approvals, standard docs, and project preparation

 

The time frame from final funding approval to disbursement can be the most painful part of any financing process, and the access-to-electricity sector is not spared.

Amid the global spread of the coronavirus over the last few weeks, there have been several funding pledges to promote access to electricity in Africa. In March, the African Development Bank and other partners committed $160 million for the Facility for Energy Inclusion to boost electricity connectivity in Africa through small-scale solar systems and minigrids. Similarly, the Export-Import Bank of the United States allocated $91.5 million for rural electrification in Senegal.

Rockefeller chief wants to redefine 'energy poverty'

Rajiv Shah, president of The Rockefeller Foundation, believes that SDG 7 on energy access lacks ambition. He hopes to drive an effort to redefine it.

Currently, funding is not being adequately deployed to help achieve universal access to energy. The International Energy Agency’s “Africa Energy Outlook 2019” report estimated that an almost fourfold increase in current annual access-to-electricity investments — approximately $120 billion a year over the next 20 years — is required to provide universal access to electricity for the 530 million people in Africa that still lack it.

While decentralized renewable energy across communities, particularly solar, has been instrumental in serving the hardest-to-reach populations, tracking done by Sustainable Energy for All — in the 20 countries with about 80% of those living without access to sustainable energy — suggests that decentralized solar received only 1.2% of the total electricity funding.

The spread of COVID-19 is contributing significantly to Africa’s electricity challenges across the region, creating a surge in the demand for energy from the very important health facilities, an exponential increase in daytime demand as a result of most people staying and working indoors, and a rise from some food processing companies that have scaled up their business operations to help safeguard food security, among others. Thankfully — and rightly so — access-to-electricity providers are increasingly being recognized as “essential service” providers amid the lockdowns across cities.

To start tackling Africa’s electricity challenges more effectively, “funding-ready” energy providers must be able to access and fulfill the required conditions to draw down on the already pledged funding. What qualifies as “funding readiness” is open to argument, but having a clear, commercially viable business and revenue model that is suitable for the target market is imperative.

Developing the skills required to navigate the due-diligence process and put together relevant project documents is critical and sometimes challenging for companies without prior experience. Typically, the final form of all project-related agreements is a prerequisite for the final funding approval.

In addition, having the right internal structures in place — for example, controls to prevent revenue leakage, an experienced management team, a credible board of directors, and meeting relevant regulatory requirements such as obtaining permits and licenses — are also important indicators of funding readiness.

1. Support for project preparation. Programs — such as the Private Financing Advisory Network and GET.invest’s COVID-19 window — that provide business coaching to energy project developers are key to helping surmount these hurdles and to increasing the chances of these projects securing funding or investment. Donor funding and technical-assistance facilities should target such programs.

2. Project development funds. Equity for project development is crucial but difficult to attract. Special funds to meet this need are essential, such as the $760,000 for the development of small-scale renewable energy projects across sub-Saharan Africa recently approved by the African Development Bank-managed Sustainable Energy Fund for Africa.

3. Standardized investment documentation. Even when funding-ready energy project developers have secured investors, delays in fulfilling the typical preconditions to draw down funds have been a major concern. This is a good time for investors to strengthen their technical assistance by supporting the standardization of approval documents and funding agreements across the energy sector to fast-track the disbursement of funds.

4. Bundled investment approvals and more frequent approval sessions. While we implement mechanisms to hasten the drawdown of already pledged funding, there is no better time to accelerate decision-making for new access-to-electricity funding to ensure we are better prepared to weather the next storm. Donors and investors should review their processes to be more flexible and allow for more frequent meetings of investment committees and boards to approve transactions. Transaction reviews and approvals can also be conducted for bundled projects to reduce transaction costs.

5. Strengthened local capacity. African countries must also commit to strengthening the local manufacturing and technical capacity for access-to-electricity components through fiscal incentives such as extended tax holidays, value-added-tax exemptions, accelerated capital allowances, and increased investment allowances.

The ongoing pandemic and resulting impacts due to lack of electricity have further shown the need to increase the pace of implementation of access-to-electricity projects. We know that some of the required capital exists, and much more is needed to achieve Sustainable Development Goal 7 — about access to affordable and clean energy for all — by 2030.

It is time to accelerate our support for access-to-electricity companies and equip them to draw down on pledged funding, while calling on donors and investors to speed up their funding processes to ensure the electricity gets to those most in need.

 

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Ontario Teachers Pension Plan agrees to acquire a 25% stake in SSEN Transmission

Ontario Teachers SSEN Transmission Investment advances UK renewable energy, with a 25% minority stake in SSE plc's electricity transmission network, backing offshore wind, grid expansion, and Net Zero 2050 goals across Scotland and UK.

 

Key Points

A 25% stake by Ontario Teachers in SSE's SSEN Transmission to fund UK grid upgrades and accelerate renewables.

✅ £1,465m cash for 25% minority stake in SSEN Transmission

✅ Supports offshore wind, grid expansion, and Net Zero targets

✅ Partnering SSE plc to deliver clean, affordable power in the UK

 

Ontario Teachers’ Pension Plan Board (‘Ontario Teachers’) has reached an agreement with Scotland-based energy provider SSE plc (‘SSE’) to acquire a 25% minority stake in its electricity transmission network business, SSEN Transmission, to provide clean, affordable renewable energy to millions of homes and businesses across the UK, reflecting how clean-energy generation powers both the economy and the environment.

The transaction is based on an effective economic date of 31 March 2022, and total cash proceeds of £1,465m for the 25% stake are expected at completion. The transaction is expected to complete shortly.

Measures such as Ontario's 2021 electricity rate reductions have aimed to ease costs for businesses, informing broader discussions on affordability.

SSEN Transmission, which operates under its licenced entity, Scottish Hydro Electric Transmission plc, transports electricity generated from renewable resources – including onshore and offshore wind and hydro – from the north of Scotland across more than a quarter of the UK land mass amid scrutiny of UK electricity and gas networks profits under the regulatory regime. The investment by Ontario Teachers’ will help support the UK Government’s Net Zero 2050 targets, including the delivery of 50GW of offshore wind capacity by 2030.

Charles Thomazi, Senior Managing Director, Head of EMEA Infrastructure & Natural Resources, from Ontario Teachers’ said, noting that in Canada decisions like the OEB decision on Hydro One's T&D rates guide utility planning:

“SSEN Transmission is one of Europe’s fastest growing transmission networks. Its network stretches across some of the most challenging terrain in Scotland – from the North Sea and across the Highlands – to deliver safe, reliable, renewable energy to demand centres across the UK.

We’re delighted to partner again with SSE and are committed to supporting the growth of its network and the vital role it plays in the UK’s green energy revolution.”

Investor views on regulated utilities can diverge, as illustrated by analyses of Hydro One's investment outlook that weigh uncertainties and risk factors.

Rob McDonald, Managing Director of SSEN Transmission, said:

“With the north of Scotland home to the UK’s greatest resources of renewable electricity we have a critical role to play in helping deliver the UK and Scottish Governments net zero commitments.  Our investments will also be key to securing the UK’s future energy independence through enabling the deployment of homegrown, affordable, low carbon power.

“With significant growth forecast in transmission, bringing in Ontario Teachers’ as a minority stake partner will help fund our ambitious investment plans as we continue to deliver a network for net zero emissions across the north of Scotland.” 

Ontario Teachers’ Infrastructure & Natural Resources group invests in electricity infrastructure worldwide to accelerate the energy transition with current investments including Caruna, Finland’s largest electricity distributor, Evoltz, a leading electricity transmission platform in Brazil, and Spark Infrastructure, which invests in essential energy infrastructure in Australia to serve over 5 million homes and businesses.

In Ontario, distribution consolidation has included the sale of Peterborough Distribution to Hydro One for $105 million, illustrating ongoing sector realignment.

 

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Pennsylvania residents could see electricity prices rise as much as 50 percent this winter

Pennsylvania Electric Rate Increases hit Peco, PPL, and Pike County, driven by natural gas costs and wholesale power markets; default rate changes, price to compare shifts, and time-of-use plans affect residential bills.

 

Key Points

Electric default rates are rising across Pennsylvania as natural gas costs climb, affecting Peco, PPL, and Pike customers.

✅ PPL, Peco, and Pike raising default rates Dec. 1

✅ Natural gas costs driving wholesale power prices

✅ Consider standard offer, TOU rates, and efficiency

 

Energy costs for electric customers are going up by as much as 50% across Pennsylvania next week, the latest manifestation of US electricity price increases impacting gasoline, heating oil, propane, and natural gas.

Eight Pennsylvania electric utilities are set to increase their energy prices on Dec. 1, reflecting the higher cost to produce electricity. Peco Energy, which serves Philadelphia and its suburbs, will boost its energy charge by 6.4% on Dec. 1, from 6.6 cents per kilowatt hour to about 7 cents per kWh. Energy charges account for about half of a residential bill.

PPL Electric Utilities, the Allentown company that serves a large swath of Pennsylvania including parts of Bucks, Montgomery, and Chester Counties, will impose a 26% increase on residential energy costs on Dec. 1, from about 7.5 cents per kWh to 9.5 cents per kWh. That’s an increase of $40 a month for an electric heating customer who uses 2,000 kWh a month.

Pike County Light & Power, which serves about 4,800 customers in Northeast Pennsylvania, will increase energy charges by 50%, according to the Pennsylvania Public Utility Commission.

“All electric distribution companies face the same market forces as PPL Electric Utilities,” PPL said in a statement. Each Pennsylvania utility follows a different PUC-regulated plan for procuring energy from power generators, and those forces can include rising nuclear power costs in some regions, which explains why some customers are absorbing the hit sooner rather than later, it said.

There are ways customers can mitigate the impact. Utilities offer a host of programs and grants to support low-income customers, and some states are exploring income-based fixed charges to address affordability, and they encourage anyone struggling to pay their bills to call the utility for help. Customers can also control their costs by conserving energy. It may be time to put on a sweater and weatherize the house.

Peco recently introduced time-of-use rates — as seen when Ontario ended fixed pricing — that include steep discounts for customers who can shift electric usage to late night hours — that’s you, electric vehicle owners.

There’s also a clever opportunity available for many Pennsylvania customers called the “standard offer” that might save you some real money, but you need to act before the new charges take effect on Dec. 1 to lock in the best rates.

Why are the price hikes happening?
But first, how did we get here?

Energy charges are rising for a simple reason: Fuel prices for power generators are increasing, and that’s driven mostly by natural gas. It’s pushing up electricity prices in wholesale power markets and has lifted typical residential bills in recent years.

“It’s all market forces right now,” said Nils Hagen-Frederiksen, PUC spokesperson. Energy charges are strictly a pass-through cost for utilities. Utilities aren’t allowed to mark them up.

The increase in utility energy charges does not affect customers who buy their energy from competitive power suppliers in deregulated electricity markets. About 27% of Pennsylvania’s 5.9 million electric customers who shop for electricity from third-party suppliers either pay fixed rates, whose price remains stable, or are on a variable-rate plan tied to market prices. The variable-rate electric bills have probably already increased to reflect the higher cost of generating power.

Most New Jersey electric customers are shielded for now from rising energy costs. New Jersey sets annual energy prices for customers who don’t shop for power. Those rates go into effect on June 1 and stay in place for 12 months. The current energy market fluctuations will be reflected in new rates that take effect next summer, said Lauren Ugorji, a spokesperson for Public Service Electric & Gas Co., New Jersey’s largest utility.

For each utility, its own plan
Pennsylvania has a different system for setting utility energy charges, which are also known as the “default rate,” because that’s the price a customer gets by default if they don’t shop for power. The default rate is also the same thing as the “price to compare,” a term the PUC has adopted so consumers can make an apples-to-apples comparison between a utility’s energy charge and the price offered by a competitive supplier.

Each of the state’s 11 PUC-regulated electric utilities prepares its own “default service plan,” that governs the method by which they procure power on wholesale markets. Electric distribution companies like Peco are required to buy the lowest priced power. They typically buy power in blind auctions conducted by independent agents, so that there’s no favoritism for affiliated power generators

Some utilities adjust charges quarterly, and others do it semi-annually. “This means that each [utility’s] resulting price to compare will vary as the market changes, some taking longer to reflect price changes, both up and down,” PPL said in a statement. PPL conducted its semi-annual auction in October, when energy prices were rising sharply.

Most utilities buy power from suppliers under contracts of varying durations, both long-term and short-term. The contracts are staggered so market price fluctuations are smoothed out. One utility, Pike County Power & Light, buys all its power on the spot market, which explains why its energy charge will surge by 50% on Dec. 1. Pike County’s energy charge will also be quicker to decline when wholesale prices subside, as they are expected to next year.

Peco adjusts its energy charge quarterly, but it conducts power auctions semi-annually. It buys about 40% of its power in one-year contracts, and 60% in two-year contracts, and does not buy any power on spot markets, said Richard G. Webster Jr., Peco’s vice president of regulatory policy and strategy.

“At any given time, we’re replacing about a third of our supplied portfolio,” he said.

The utility’s energy charge affects only part of the monthly bill. For a Peco residential electric customer who uses 700 kWh per month, the Dec. 1 energy charge increase will boost monthly bills by $2.94 per month, or 2.9%. For an electric heating customer who uses about 2,000 kWh per month, the change will boost bills $8.40 a month, or about 3.5%, said Greg Smore, a Peco spokesperson.
 

 

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Michigan Public Service Commission grants Consumers Energy request for more wind generation

Consumers Energy Wind Expansion gains MPSC approval in Michigan, adding up to 525 MW of wind power, including Gratiot Farms, while solar capacity requests face delays over cost projections under the renewable portfolio standard targets.

 

Key Points

A regulatory-approved plan enabling Consumers Energy to add 525 MW of wind while solar additions await cost review.

✅ MPSC approves up to 525 MW in new wind projects

✅ Gratiot Farms purchase allowed before May 1

✅ Solar request delayed over high cost projections

 

Consumers Energy Co.’s efforts to expand its renewable offerings gained some traction this week when the Michigan Public Service Commission (MPSC) approved a request for additional wind generation capacity.

Consumers had argued that both more wind and solar facilities are needed to meet the state’s renewable portfolio standard, which was expanded in 2016 to encompass 12.5 percent of the retail power of each Michigan electric provider. Those figures will continue to rise under the law through 2021 when the figure reaches 15 percent, alongside ongoing electricity market reforms discussions. However, Consumers’ request for additional solar facilities was delayed at this time due to what the Commission labeled unrealistically high-cost projections.

Consumers will be able to add as much as 525 megawatts of new wind projects amid a shifting wind market, including two proposed 175-megawatt wind projects slated to begin operation this year and next. Consumers has also been allowed to purchase the Gratiot Farms Wind Project before May 1.

The MPSC said a final determination would be made on Consumers’ solar requests during a decision in April. Consumers had sought an additional 100 megawatts of solar facilities, hoping to get them online sometime in 2024 and 2025.

 

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France nuclear power stations to limit energy output due to high river temps

France Nuclear Heatwave Restrictions signal reduced nuclear power along the Rhone River as EDF imposes output limits due to high water temperatures, grid needs, with minimal price impact amid strong solar and exports.

 

Key Points

Temporary EDF output limits at Rhone River reactors due to hot water, protecting ecosystems and grid reliability.

✅ EDF expects halved output at Bugey and Saint Alban.

✅ Cuts align with water temperature and discharge rules.

✅ Weekend midday curtailments offset by solar supply.

 

The high temperature warning has come early this year but will affect fewer nuclear power plants. High temperatures could halve nuclear power production, with river temperature limits at plants along France's Rhone River this week. 

Output restrictions are expected at two nuclear plants in eastern France due to high temperature forecasts, nuclear operator EDF said. It comes several days ahead of a similar warning that was made last year but will affect fewer plants, and follows a period when power demand has held firm during lockdowns across Europe.

The hot weather is likely to halve the available power supply from the 3.6 GW Bugey plant from 13 July and the 2.6 GW Saint Alban plant from 16 July, the operator said.

However, production will be at least 1.8 GW at Bugey and 1.3 GW at Saint Alban to meet grid requirements, and may change according to grid needs, the operator said.

Kpler analyst Emeric de Vigan said the restrictions were likely to have little effect on output in practice. Cuts are likely only at the weekend or midday when solar output was at its peak so the impact on power prices would be slim.

He said the situation would need monitoring in the coming weeks, however, noting it was unusually early in the summer for nuclear-powered France to see such restrictions imposed.

Water temperatures at the Bugey plant already eclipsed the initial threshold for restrictions on 9 July, as European power hits records during the heatwave. They are currently forecast to peak next week and then drop again, Refinitiv data showed.

"France is currently net exporting large amounts of power – and, despite a nuclear power dispute with Germany, single nuclear units' supply restrictions will not have the same effect as last year," Refinitiv analyst Nathalie Gerl said.

The Garonne River in southern France has the highest potential for critical levels of warming, but its Golfech plant is currently offline for maintenance until mid-August, as Europe faces nuclear losses, the data showed.

"(The restrictions were) to be expected and it will probably occur more often," Greenpeace campaigner Roger Spautz said.

"The authorities must stick to existing regulations for water discharges. Otherwise, the ecosystems will be even more affected," he added.

 

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  • Free access to every issue

Live Online & In-person Group Training

Advantages To Instructor-Led Training – Instructor-Led Course, Customized Training, Multiple Locations, Economical, CEU Credits, Course Discounts.

Request For Quotation

Whether you would prefer Live Online or In-Person instruction, our electrical training courses can be tailored to meet your company's specific requirements and delivered to your employees in one location or at various locations.