Cape Wind project to start this fall

TEP Undergrounding Policy prioritizes selective underground power lines to manage wildfire risk, engineering costs, and ratepayer impacts, balancing transmission and distribution reliability with right-of-way, safety, and vegetation management per Arizona regulators.

Key Points

A selective TEP approach to bury lines where safety, engineering, and cost justify undergrounding.

✅ Selective undergrounding for feeders near substations

✅ Balances wildfire mitigation, reliability, and ratepayer costs

✅ Follows ACC rules, BLM and USFS vegetation management

Though wildfires in California caused by power lines have prompted calls for more underground lines, Tucson Electric Power Co. plans to keep to its policy of burying lines selectively for safety.

Like many other utilities, TEP typically doesn’t install its long-range, high-voltage transmission lines, such as the TransWest Express project, and distribution equipment underground because of higher costs that would be passed on to ratepayers, TEP spokesman Joe Barrios said.

But the company will sometimes bury lower-voltage lines and equipment where it is cost-effective or needed for safety as utilities adapt to climate change across North America, or if customers or developers are willing to pay the higher installation costs

Underground installations generally include additional engineering expenses, right-of-way acquisition for projects like the New England Clean Power Link in other regions, and added labor and materials, Barrios said.

“This practice avoids passing along unnecessary costs to customers through their rates, so that all customers are not asked to subsidize a discretionary expenditure that primarily benefits residents or property owners in one small area of our service territory,” he said, adding that the Arizona Corporation Commission has supported the company’s policy.

Even so, TEP will place equipment underground in some circumstances if engineering or safety concerns, including electrical safety tips that utilities promote during storm season, justify the additional cost of underground installation, Barrios said.

In fact, lower-voltage “feeder” lines emerging from distribution substations are typically installed underground until the lines reach a point where they can be safely brought above ground, he added.

While in California PG&E has shut off power during windy weather to avoid wildfires in forested areas traversed by its power lines after events like the Drum Fire last June, TEP doesn’t face the same kind of wildfire risk, Barrios said.

Most of TEP’s 5,000 miles of transmission and distribution lines aren’t located in heavily forested areas that would raise fire concerns, though large urban systems have seen outages after station fires in Los Angeles, he said.

However, TEP has an active program of monitoring transmission lines and trimming vegetation to maintain a fire-safety buffer zone and address risks from vandalism such as copper theft where applicable, in compliance with federal regulations and in cooperation with the U.S. Bureau of Land Management and the U.S. Forest Service.

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Electricity Investment Surpasses Oil and Gas 2016, driven by renewable energy, power grids, and energy efficiency, as IEA reports lower oil and gas spending, rising solar and wind capacity, and declining coal power plant approvals.

Key Points

A 2016 milestone where electricity topped global energy investment, led by renewables, grids, and efficiency, per the IEA.

✅ IEA: electricity investment hit $718b; oil and gas fell to $650b.

✅ Renewables led with $297b; solar and wind unit costs declined.

✅ Coal plant approvals plunged; networks and storage spending rose.

Investments in electricity surpassed those in oil and gas for the first time ever in 2016 on a spending splurge on renewable energy and power grids as the fall in crude prices led to deep cuts, the International Energy Agency (IEA) said.

Total energy investment fell for the second straight year by 12 per cent to US$1.7 trillion compared with 2015, the IEA said. Oil and gas investments plunged 26 per cent to US$650 billion, down by over a quarter in 2016, and electricity generation slipped 5 per cent.

"This decline (in energy investment) is attributed to two reasons," IEA chief economist Laszlo Varro told journalists.

"The reaction of the oil and gas industry to the prolonged period of low oil prices which was a period of harsh investment cuts; and technological progress which is reducing investment costs in both renewable power and in oil and gas," he said.

Oil and gas investment is expected to rebound modestly by 3 per cent in 2017, driven by a 53 per cent upswing in U.S. shale, and spending in Russia and the Middle East, the IEA said in a report.

"The rapid ramp up of U.S. shale activities has triggered an increase of U.S. shale costs of 16 per cent in 2017 after having almost halved from 2014-16," the report said.

The global electricity sector, however, was the largest recipient of energy investment in 2016 for the first time ever, overtaking oil, gas and coal combined, the report said.

"Robust investments in renewable energy and increased spending in electricity networks, which supports the outlook that low-emissions sources will cover most demand growth, made electricity the biggest area of capital investments," Varro said.

Electricity investment worldwide was US$718 billion, lifted by higher spending in power grids which offset the fall in power generation investments.

"Investment in new renewables-based power capacity, at US$297 billion, remained the largest area of electricity spending, despite falling back by 3 per cent as clean energy investment in developing nations slipped, the report said."

Although renewables investments was 3 per cent lower than five years ago, capacity additions were 50 per cent higher and expected output from this capacity about 35 per cent higher, thanks to the fall in unit costs and technology improvements in solar PV and wind generation, the IEA said.

COAL INVESTMENT IS COMING TO AN END

Investments in coal-fired electricity plants fell sharply. Sanctioning of new coal power plants fell to the lowest level in nearly 15 years, reflecting concerns about local air pollution, and emergence of overcapacity and competition from renewables, with renewables poised to eclipse coal in global power generation, notably in China. Coal investments, however, grew in India.

"Coal investment is coming to an end. At the very least, it is coming to a pause," Varro said.

The IEA report said energy efficiency investments continued to expand in 2016, reaching US$231 billion, with most of it going to the building sector globally.

Electric vehicles sales rose 38 per cent in 2016 to 750,000 vehicles at $6 billion, and represented 10 per cent of all transport efficiency spending. Some US$6 billion was spent globally on electronic vehicle charging stations, the IEA said.

Spending on electricity networks and storage continued the steady rise of the past five years, as surging electricity demand puts power systems under strain, reaching an all-time high of US$277 billion in 2016, with 30 per cent of the expansion driven by China’s spending in its distribution system, the report said.

China led the world in energy investments with 21 per cent of global total share, the report said, driven by low-carbon electricity supply and networks projects.

Although oil and gas investments fell in the United States in 2016, its total energy investments rose 16 per cent, even as Americans use less electricity in recent years, on the back of spending in renewables projects, the IEA report said.

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New Mexico Energy Transition Act advances zero-carbon electricity, mandating public utilities deliver carbon-free electricity by 2045, with renewable targets of 50 percent by 2030 and 80 percent by 2040 to accelerate grid decarbonization.

Key Points

A state law requiring utilities to deliver carbon-free electricity by 2045, with 2030 and 2040 renewable targets.

✅ 100 percent carbon-free power from utilities by 2045

✅ Interim renewable targets: 50 percent by 2030, 80 percent by 2040

✅ Aligns with clean energy commitments in HI, CA, and DC

The New Mexico House of Representatives passed the Energy Transition Act Tuesday afternoon, sending the carbon-free electricity bill, a move aligned with proposals for a Clean Electricity Standard at the federal level, to Gov. Michelle Lujan Grisham.

Her opinions on it are known: she campaigned on raising the share of renewable energy, a priority echoed in many state renewable ambitions nationwide, and endorsed the ETA in a recent column.

"The governor will sign the bill as quickly as possible — we're hoping it is enrolled and engrossed and sent to her desk by Friday," spokesperson Tripp Stelnicki said in an email Tuesday afternoon.

Once signed, the legislation will commit the state to achieving zero-carbon electricity from public utilities by 2045. The bill also imposes interim renewable energy targets of 50 percent by 2030 and 80 percent by 2040, similar to Minnesota's 2040 carbon-free bill in its timeline.

The Senate passed the bill last week, 32-9. The House passed it 43-22.

The legislation would enter New Mexico into the company of Hawaii, California, where climate risks to grid reliability are shaping policy, and Washington, D.C., which have committed to eliminating carbon emissions from their grids. A dozen other states have proposed similar goals. Meanwhile, the Green New Deal resolution has prompted Congress to discuss the bigger task of decarbonizing the nation overall.

Though grid decarbonization has surged in the news cycle in recent months, even as some states consider moves in the opposite direction, such as a Wyoming bill restricting clean energy that would limit utility choices, New Mexico's bill arose from a years-long effort to rally stakeholders within the state's close-knit political community.

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Ontario Clean Energy Expansion signals IESO-backed renewables, energy storage, and low-CO2 power to meet EV-driven demand, offset Pickering nuclear retirement, and balance interim gas-fired generation while advancing grid reliability, decarbonization, and net-zero targets.

Key Points

Ontario Clean Energy Expansion plans to grow renewables and storage, manage short-term gas, and meet rising demand.

✅ IESO long-term procurements for renewables and storage

✅ Interim reliance on gas to replace Pickering capacity

✅ Targets align with net-zero grid reliability goals

After cancelling hundreds of renewable power projects four years ago, the Doug Ford government appears set to expand clean energy to meet a looming electricity shortfall across the province.

Recent announcements from Ontario Energy Minister Todd Smith and the province’s electric grid management agency suggest the province plans to expand low-CO2 electricity with new wind and solar plans in the long-term, even as it ramps up gas-fired power over the next five years.

The moves are in response to an impending electricity shortfall as climate-conscious drivers switch to electric vehicles, farmers replace field crops with greenhouses and companies like ArcelorMittal Dofasco in Hamilton switch from CO2-heavy manufacturing to electricity-based production. Forecasters predict Canada will need to double its power supply by 2050.

While Ontario has a relatively low-CO2 power system, the province’s electricity supply will be reduced in 2025 when Ontario Power Generation closes the 50-year-old Pickering nuclear station, now near the end of its operating life. This will remove 3,100 megawatts of low-CO2 generation, about eight per cent of the province’s 40,000-megawatt total.

The impending closure has created a difficult situation for the Independent Electricity System Operator (IESO), the provincial agency managing Ontario’s grid. Last year, it forecasted it would need to sharply increase CO2-polluting natural gas-fired power to avoid widespread blackouts.

This would mean drivers switching to electric vehicles or companies like Dofasco cutting CO2 through electrification would end up causing higher power system emissions.

It would also fly in the face of the federal government’s ambition to create a net-zero national electricity system by 2035, a critical part of Canada’s pledge to reduce CO2 emissions to zero by 2050.

Yet the Ford government has appeared reluctant to expand clean energy. In the 2018 election, clean electricity was a key issue as it appealed to anti-turbine voters in rural Ontario and cancelled more than 700 renewable energy contracts shortly after taking office, taking 400 megawatts out of the system.

But there are signs the government is having a change of heart. IESO recently released a list of 55 companies approved to submit bids for 3,500 megawatts of long-term electricity contracts starting between 2025 and 2027, and the energy minister has outlined a plan to address growing energy needs as well.

The companies include a variety of potential producers, ranging from Canadian and global renewable companies to local utilities and small startups. Most are renewable power or energy storage companies specializing in low- or zero-emission power. IESO plans additional long-term bid offerings in the future.

This doesn’t mean gas generation will be turned off. IESO will contract yearly production from existing gas plants until 2028 (the annual contract in 2023 will be for about 2,000 megawatts). As well, IESO has issued contracts to four gas-fired producers, a small wind company and a storage company to begin production of about 700 megawatts to boost gas plant output starting between 2024 and 2026.

While this represents an expansion of existing gas-fired generation, Smith has asked IESO to report on a gas moratorium, saying he doesn’t believe new gas plants will be needed over the long term.

The NDP and Greens criticized the government for relying on gas in the near term. But clean energy advocates greeted the long-term plans positively.

The IESO process “will contribute to a clean, reliable and affordable grid,” said the Canadian Renewable Energy Association.

Rachel Doran, director of policy and strategy at Clean Energy Canada, said in an email the potential gas generation moratorium “is an encouraging step forward,” although she criticized the “unfortunate decision to replace near-term nuclear power capacity with climate-change-causing natural gas.”

There will have to be a massive clean energy expansion to green Ontario’s grid well beyond what has been announced in recent days for Ontario to meet its future energy needs (think a doubling of Ontario’s current 40,000-megawatt capacity by 2050).

But these first steps hold promise that Ontario is at least starting on the path to that goal, rather than scrambling to keep the lights on with CO2-polluting natural gas.

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Ontario Electricity Relief outlines an extended disconnect moratorium, potential time-of-use price changes, and Ontario Energy Board oversight to support residential customers facing COVID-19 hardship and bill payment challenges during the emergency in Ontario.

Key Points

Plan to extend disconnect moratorium and weigh time-of-use price relief for residential customers during COVID-19.

✅ Extends winter disconnect ban by 3 months

✅ Considers time-of-use price adjustments

✅ Requires Ontario Energy Board approval

The Ontario government is preparing to announce electricity relief for residential electricity users struggling because of the COVID-19 emergency, according to sources.

Sources close to those discussions say a decision has been made to lengthen the existing five-month disconnect moratorium by an additional three months.

Separately, Hydro One's relief fund has offered support to its customers during the pandemic.

News releases about the moratorium extension are currently being drafted and are expected to be released shortly, as the pandemic has reduced electricity usage across Ontario.

Electricity utilities in Ontario are currently prohibited from disconnecting residential customers for non-payment during the winter ban period from November 15 to April 30.

The province is also looking at providing further relief by adjusting time-of-use prices, such as off-peak electricity rates, which are designed to encourage shifting of energy use away from periods of high total consumption to periods of low demand.

For businesses, the province has provided stable electricity pricing to support industrial and commercial operations.

But that would require Ontario Energy Board approval and no decision has been finalized, our sources advise.

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Electric mining equipment enables zero-emission, diesel-free operations at Goldcorp's Borden mine, using Sandvik battery-electric drills and LHD trucks to cut ventilation costs, noise, and maintenance while improving underground air quality.

Key Points

Battery-powered mining equipment replaces diesel, cutting emissions and ventilation costs in underground operations.

✅ Cuts diesel use, heat load, and noise in underground headings.

✅ Reduces ventilation infrastructure and operating expense.

✅ Improves air quality, worker health, and equipment uptime.

Mining operations get a lot of flack for creating environmental problems around the world. Yet they provide much of the basic material that keeps the global economy humming. Some mining companies are drilling down in their efforts to clean up their acts, exploring solutions such as recovering mine heat for power to reduce environmental impact.

As the world’s fourth-largest gold mining company Goldcorp has received its share of criticism about the impact it has on the environment.

In 2016, the Canadian company decided to do something about it. It partnered with mining-equipment company Sandvik and began to convert one of its mines into an all-electric operation, a process that is expected to take until 2021.

The efforts to build an all-electric mine began with the Sandvik DD422iE in Goldcorp’s Borden mine in Ontario, Canada.

Goldcorp's Borden mine in Borden, Ontario, CanadaGoldcorp's Borden mine in Borden, Ontario, Canada

The machine weighs 60,000 pounds and runs non-stop on a giant cord. It has a 75-kwh sodium nickel chloride battery to buffer power demands, a crucial consideration as power-hungry Bitcoin facilities can trigger curtailments during heat waves, and to move the drill from one part of the mine to another.

This electric rock-chewing machine removes the need for the immense ventilation systems needed to clean the emissions that diesel engines normally spew beneath the surface in a conventional mining operation, though the overall footprint depends on electricity sources, as regions with Clean B.C. power imports illustrate in practice.

These electric devices improve air quality, dramatically reduce noise pollution, and remove costly maintenance of internal combustion engines, Goldcorp says.

More importantly, when these electric boring machines are used across the board, it will eliminate the negative health effects those diesel drills have on miners.

“It would be a challenge to go back,” says big drill operator Adam Ladouceur.

Mining with electric equipment also removes second- or third-highest expenditure in mining, the diesel fuel used to power the drills, said Goldcorp spokesman Pierre Noel, even as industries pursue dedicated energy deals like Bitcoin mining in Medicine Hat to manage power costs. (The biggest expense is the cost of labor.)

Electric load, haul, dump machine at Goldcorp Borden mine in OntarioElectric load, haul, dump machine at Goldcorp Borden mine in Ontario

Aside from initial cost, the electric Borden mine will save approximately $7 million ($9 million Canadian) annually just on diesel, propane and electricity.

Along with various sizes of electric drills and excavating tools, Goldcorp has started using electric powered LHD (load, haul, dump) trucks to crush and remove the ore it extracts, and Sandvik is working to increase the charging speed for battery packs in the 40-ton electric trucks which transport the ore out of the mines, while utilities add capacity with new BC generating stations coming online.

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