Harper pledges $6.2 billion for Lower Churchill

By Toronto Star


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Conservative Leader Stephen Harper hopes to surf a wave of Newfoundland nationalism and support for “green” energy towards a majority, pledging controversial federal financing for a $6.2 billion mega hydro project in Labrador that could cost votes in Quebec.

At a campaign rally, Harper pledged a “loan guarantee or equivalent financial support” for the Lower Churchill hydro development.

“This is an unprecedented opportunity, a real game-changer for the entire region to move to clean energy,” Harper told a rally, prompting a sustained ovation from about 350 supporters.

Harper moved to deflect criticism in Quebec that Ottawa should not use QuebecersÂ’ tax dollars to subsidize a hydro project that would be in direct competition with that provinceÂ’s hydroelectric giant.

He vowed to also aid other clean energy infrastructure projects “including in Quebec” that have national or regional significance, are economically and financially feasible, and “significantly” reduce carbon emissions.

Still, the announcement was clearly targeted at offsetting expected seat losses in Quebec with gains in Newfoundland where the party was shut out in 2008 under then-premier Danny Williams.

Kathy Dunderdale, Williams successor as premier, said it could be enough to help turn Tory fortunes in the province. It was well-received in Nova Scotia, too.

But Harper’s main rival in Quebec, Bloc Québécois Leader Gilles Duceppe, denounced it as “a slap in the face to Quebec.”

However, at least one major Quebec company already stands to benefit from the project. SNC-Lavalin won the engineering, procurement and construction management contract for the projectÂ’s first phase.

Critics say it is not economically viable, evidenced by the fact it requires such huge public subsidies.

The mega-project will transmit power generated in Labrador via two sub-sea transmission cables, first to Newfoundland, across the island, and then across the Gulf of St. Lawrence to Nova Scotia for distribution to lucrative North American markets.

Some suggest Harper has made a “political calculation, not an economic” one.

“I think this ‘green’ stuff is a total fig leaf,” said economist Brian Lee Crowley of the Macdonald-Laurier Institute, an Ottawa-based think-tank.

Crowley said there are other cost-efficient clean energy alternatives, with natural shale gas projects coming on-stream and prices dropping.

“This is the Tories signaling to Newfoundland that they will help them in the decades-long battle to the death with Quebec over control of hydro resources in Labrador.... It’s about using Newfoundland nationalism in order to get back in the good graces of the Newfoundland voter.”

QuebecÂ’s hydro utility reaps huge profits from cheap power it transmits from the Upper Churchill project in Labrador under a 1969 contract that did not foresee the ensuing generationsÂ’ oil crises and skyrocketing electricity prices.

Negotiations to allow NewfoundlandÂ’s hydro utility to wheel Lower Churchill electricity over the Quebec power lines have consistently ended in failure.

Conservative officials said a federal contribution would likely take the form of a $4.2 billion loan guarantee. It would allow the province to borrow money at lower rates, given OttawaÂ’s superior credit rating. Tax dollars would not be at risk unless the proponents of the project defaulted on the loan.

In Montreal, NDP Leader Jack Layton said he’s behind the idea of support for the Lower Churchill River project and “projects that can help reduce greenhouse gas emissions.”

But Layton said there needs to be “clear criteria” for such investments. “It shouldn’t be just political.”

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New York Finalizes Contracts for 23 Renewable Projects Totaling 2.3 GW

New York Renewable Energy Contracts secure 23 projects totaling 2.3 GW, spanning offshore wind, solar, and battery storage under CLCPA goals, advancing 70% by 2030, a carbon-free 2040 grid, grid reliability, and green jobs.

 

Key Points

State agreements securing 23 wind, solar, and storage projects (2.3 GW) to meet CLCPA clean power targets.

✅ 2.3 GW across 23 wind, solar, and storage projects statewide

✅ Supports 70% renewables by 2030; carbon-free grid by 2040

✅ Drives emissions cuts, grid reliability, and green jobs

 

In a significant milestone for the state’s clean energy ambitions, New York has finalized contracts with 23 renewable energy projects, as part of large-scale energy projects underway in New York, totaling a combined capacity of 2.3 gigawatts (GW). This move is part of the state’s ongoing efforts to accelerate its transition to renewable energy, reduce carbon emissions, and meet the ambitious targets set under the Climate Leadership and Community Protection Act (CLCPA), which aims to achieve a carbon-free electricity grid by 2040.

A Strong Commitment to Renewable Energy

The 23 projects secured under these contracts represent a diverse range of renewable energy sources, including wind, solar, and battery storage. Together, these projects are expected to contribute significantly to New York’s energy grid, generating enough clean electricity to power millions of homes. The deal is a key component of New York’s broader strategy to achieve a 70% renewable energy share in the state’s electricity mix by 2030 and to reduce greenhouse gas emissions by 85% by 2050.

Governor Kathy Hochul celebrated the agreements as a major step forward in the state’s commitment to combating climate change while creating green jobs and economic opportunities. “New York is leading the nation in its clean energy goals, and these projects will help us meet our bold climate targets while delivering reliable and affordable energy to New Yorkers,” Hochul said in a statement.

The Details of the Contracts

The 23 projects span across various regions of the state, with an emphasis on areas that are well-suited for renewable energy development, such as upstate New York, which boasts vast open spaces ideal for large-scale solar and wind installations and the state is investigating sites for offshore wind projects along the coast. The contracts finalized by the state will ensure a steady supply of clean power from these renewable sources, helping to stabilize the grid and reduce reliance on fossil fuels.

A significant portion of the new renewable capacity will come from offshore wind projects, which have become a cornerstone of New York’s renewable energy strategy. Offshore wind has the potential to provide large amounts of electricity, and the state recently greenlighted the country's biggest offshore wind farm to date, taking advantage of the state's proximity to the Atlantic Ocean. Several of the contracts finalized include offshore wind farm projects, which are expected to be operational within the next few years.

In addition to wind energy, solar power continues to be a critical component of the state’s renewable energy strategy. The state has already made substantial investments in solar energy, having achieved solar energy goals ahead of schedule recently, and these new contracts will further expand the state’s solar capacity. The inclusion of battery storage projects is another important element, as energy storage solutions are vital to ensuring that renewable energy can be effectively utilized, even when the sun isn’t shining or the wind isn’t blowing.

Economic and Job Creation Benefits

The finalization of these 23 contracts will not only bring significant environmental benefits but also create thousands of jobs in the renewable energy sector. Construction, maintenance, and operational jobs will be generated throughout the life of the projects, benefiting communities across the state, including areas near Long Island's South Shore wind proposals that stand to gain from new investment. The investment in renewable energy is expected to support New York’s recovery from the economic impacts of the COVID-19 pandemic, contributing to the state’s clean energy economy and providing long-term economic stability.

The state's focus on clean energy also provides opportunities for local businesses, highlighted by the first Clean Energy Community designation in the state, as many of these projects will require services and materials from within New York State. Additionally, Governor Hochul’s administration has made efforts to ensure that disadvantaged communities and workers from underrepresented backgrounds will have access to job training and employment opportunities within the renewable energy sector.

The Path Forward: A Clean Energy Future

New York’s aggressive move toward renewable energy is indicative of the state’s commitment to addressing climate change and leading the nation in clean energy innovation. By locking in contracts for these renewable energy projects, the state is not only securing a cleaner future but also ensuring that the transition is fair and just for all communities, particularly those that have been historically impacted by pollution and environmental degradation.

While the finalized contracts mark a major achievement, the state’s work is far from over. The completion of these 23 projects is just one piece of the puzzle in New York’s broader strategy to decarbonize its energy system. To meet its ambitious targets under the CLCPA, New York will need to continue investing in renewable energy, energy storage, grid modernization, and energy efficiency programs.

As New York moves forward with its clean energy transition, and as BOEM receives wind power lease requests in the Northeast, the state will likely continue to explore new technologies and innovative solutions to meet the growing demand for renewable energy. The success of the 23 finalized contracts serves as a reminder of the state’s leadership in the clean energy space and its ongoing efforts to create a sustainable, low-carbon future for all New Yorkers.

New York’s decision to finalize contracts with 23 renewable energy projects totaling 2.3 gigawatts represents a bold step toward meeting the state’s clean energy and climate goals. These projects, which include a mix of wind, solar, and energy storage, will contribute significantly to reducing the state’s reliance on fossil fuels and lowering greenhouse gas emissions. With the additional benefits of job creation and economic growth, this move positions New York as a leader in the nation’s transition to renewable energy and a sustainable future.

 

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The crisis in numbers: How COVID-19 has reshaped Saskatchewan

Saskatchewan COVID-19 economic impact: real-time data shows drops in electricity demand, oil well licensing, traffic and tickets, plus spikes in internet usage, government site visits, remote work, and alcohol wholesale volumes.

 

Key Points

COVID-19 reduced energy use, drilling and traffic, while pushing activity online; jobs, rents and sales show strain.

✅ Electricity demand down 6.7%; residential usage up

✅ Oil well license applications fell 15-fold in April

✅ Internet traffic up 16%-46%; wireless LTE up 34%

 

We’re only just beginning to grasp how COVID-19 has upended Saskatchewan’s economy, its government and all of our lives.

The numbers that usually make headlines — job losses, economic contraction, bankruptcies — are still well behind the pace of the virus and its toll.

But other numbers change more quickly. Saskatchewan people are using less power, and the power industry is adopting on-site staffing plans to ensure reliability as conditions evolve. We’re racking up fewer speeding tickets. And as new restrictions come, we’re clicking onto Saskatchewan.ca as much as 10,000 times per minute.

Here’s some data that provides a first glimpse into how much our province has changed in just six weeks.

Electricity use tends to rise and fall in tandem with the health of the economy, and the most recent data from SaskPower suggests businesses are powering down, while regional utilities such as Manitoba Hydro seek unpaid days off to trim costs.

Peak load requirements between March 15 and April 26 were 220 MW lower than during the same period in 2019, and elsewhere BC Hydro is posting COVID-19 updates at Site C as it manages project impacts. That’s a decrease of 6.7 per cent, with total load on April 29 at 2,551 MW. A megawatt is enough electricity to power about 1,000 homes.

Separate from pandemic impacts, an external investigation at Manitoba Hydro has drawn attention to workplace conduct issues.

But it’s not homes that are turning off the lights. SaskPower spokesman Joel Cherry said commercial and industrial usage is down, while residential demand is up, with household electricity bills rising as more people stay home.

The timing of power demand has also shifted, a pattern seen as residential electricity use rises during work-from-home routines. Peak load would usually come around 8 or 9 p.m. in April. Now it’s coming earlier, typically between 5 and 6 p.m.

Oil well applications fall 15-fold
Oil prices have cratered since late February, and producers in Saskatchewan have reacted by pulling back on drilling plans, while neighbouring Alberta provides transition support for coal workers amid broader energy shifts.

Applications for well licences fell from 242 in January to 203 in February (including nine potash and one helium operations), before dropping to 84 in March. April, the month benchmark oil prices went negative for one day, producers submitted just 15 applications.

That’s 15 times fewer than the 231 applications the Ministry of Energy and Resources received in April 2019.

Well licences are needed for drilling, operating, injecting, producing or exploring an oil and gas or potash well in the province.

There has been no clear trend in well abandonment, however. There were 176 applications for abandonment in March and 155 in April, roughly in line with figures from the year before.

SGI spokesman Tyler McMurchy believes the lower numbers might stem from a combination of lower traffic volumes during part of the month, possibly combined with a shift in police priorities. The March 2020 numbers are also well below January and February figures.

Indeed, the Ministry of Highways and infrastructure reported a 16 per cent decrease in average daily traffic last month compared to March 2019, through its traffic counts at 11 different spots on highways across the province.

In Regina, traffic counts at 16 locations dropped from a high of 2.1 million in the first week of March to a low of 1.3 million during the week of March 22. That’s a 44 per cent decrease.

Counts have gradually recovered to 1.6 million in the weeks since. The data was fairly consistent at all 16 spots, which are largely major intersections, though the city cautioned they may not be representative of Regina as a whole.

Tickets for cellphone use while driving also fell, dropping from 562 in February to 314 in March. McMurchy noted that distracted driving numbers in general have been falling since November as stiffer penalties were announced. Impaired driving tickets were up, by contrast, but still within a typical range.

Internet traffic shoots up 16 per cent, far more for rural high speed
You may be spending a lot more time on Netflix and Facebook in the age of social distancing, and SaskTel has noticed.

From late February to late April, SaskTel has seen “very significant increases in provincial data traffic.” DSL and fibre optic networks have handled a 16 per cent increase in traffic, while demand on the wireless LTE network is up 34 per cent.

Usage on the Fusion network up 46 per cent. That network serves rural areas that don’t have access to other high-speed options.

The specific reference dates for comparison were February 24 and April 27.

“We attribute these changes in data usage to the pandemic and not expected seasonal or yearly shifts in usage patterns,” said spokesman Greg Jacobs.

Saskatchewan.ca was attracting just 70 page views per minute on average in February. But page views jumped over 10,000 per minute at 2:38 p.m. on March 18, as Moe was still announcing the new measures.

That’s a 14,000 per cent increase.

For all of March, visitor sessions on the site clocked in at 3,905,061, almost four times the 944,904 recorded for February.

Bureaucracy has increasingly migrated to cyberspace, with 62 per cent of civil servants now working from home. Government Skype calls, both audio and video, have tripled from 12,000 sessions per day to 35,000.Telephone conference calls increased by a factor of 14 from the first week of February to the second full week of April, with 25 times more weekly call participants. 

The Ministry of Central Services reported a 17 per cent jump in emails received by government over the past two months, excluding the Ministry of Health.

But as civil servants spend more time on their computers, the government’s fleet is spending a lot less time on the road. The ministry has purchased 40 per cent fewer litres of fuel for its vehicles over the past four weeks, compared to the same time last year.

Alcohol wholesale volumes up 22 per cent, then fall back to normal
Retailers bought more alcohol from the Saskatchewan Liquor and Gaming Authority (SLGA) last month, just as the government began tightening pandemic restrictions.

Wholesale sales volumes were up 22 per cent over March 15 to 28, compared to the same period in 2019. SLGA spokesman David Morris said the additional demand “was likely the result of retailers stocking-up as restrictions related to COVID-19 took effect.”

But the jump didn’t last. Wholesale volumes were back to normal for the first two weeks of April. SLGA did notice a very slight uptick last week, however, with volumes out of its distribution centre up three per cent. The numbers do not include Brewer’s Distributors Ltd.

It’s unclear how much more alcohol consumers actually purchased, since province-wide retail numbers were not available.

There was no discernible trend in March for anti-anxiety medication, however. The number of prescriptions filled for benzodiazepines like Valium, Xanax and Ativan see-sawed over March, according to data provided by the College of Physicians and Surgeons, but its associate registrar does not believe the trends are statistically relevant.

One-fifth of tenants miss April rent
About 20 per cent of residential rent went totally unpaid in the first six days of April, according to the Saskatchewan Landlord Association (SLA).

The precise number is 19.7 per cent, but there’s some uncertainty due to the survey method, which is based on responses from 300 residential landlords with 14,000 units. An additional 12 per cent of tenants paid a portion of their rent, but not the full amount. The figures do not include social housing.

Cameron Choquette, the association’s executive officer, partly blames the province’s decision to suspend most landlord tenant board hearings for evictions, saying it “allows more people to take advantage of landlords by not paying their rent and not facing any consequences.”

The government has defended the suspension by saying it’s needed to ensure everyone has a safe place to self-isolate if needed during the pandemic.

March’s jobs numbers were bad, with almost 21,000 fewer Saskatchewan people employed compared to February.

April’s labour force survey is expected on Friday. But new April numbers released Wednesday show that two-thirds of the province’s businesses managed to avoid laying off staff almost entirely.

According to Statistics Canada, 66.2 per cent of businesses reported laying off between zero and one per cent of their employees due to COVID-19. That was better than any other province. Just 7.6 per cent laid off all of their employees, again the best number outside the territories. The survey period was April 3 to 24.

Some businesses are even hiring. Walmart, for instance, has hired 300 people in Saskatchewan since mid-March.

Trade and Export Development Minister Jeremy Harrison chalked the data up to a relatively more optimistic business outlook in Saskatchewan, combined with “very targeted” restrictions and a support program for small and medium businesses.

That support program, which provides $5,000 grants to qualifying businesses affected by government restrictions, has only been around for three weeks. But it’s already been bombarded with 6,317 applications.

The total value of those applications would be $24,178,000, according to Harrison. Of them, 3,586 have been approved with a value of $11,755,000.

Businesses are coming to Harrison’s ministry with thousands of questions. Since it opened in March, the Business Response Team has received 4,125 calls and 1,758 emails.

The kinds of questions have changed over the course of the pandemic. Many are now asking when they can open their doors, according to Harrison, as they wonder about “grey areas” in the Re-Open Saskatchewan plan.

 

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Alberta Advances Electricity Plans with Rate of Last Resort

Alberta Rate of Last Resort provides a baseline electricity price, boosting energy reliability, affordability, and consumer protection amid market volatility, aligning with grid modernization, integration, pricing transparency, and oversight from the Alberta Utilities Commission.

 

Key Points

A fallback electricity rate ensuring affordable, reliable power and consumer protection during market volatility.

✅ Guarantees a stable baseline price when markets spike

✅ Supports vulnerable customers lacking competitive offers

✅ Overseen by AUC to balance protection and competition

 

The Alberta government has announced significant strides in its electricity market reforms, unveiling a new plan under new electricity rules that aims to enhance energy reliability and affordability for consumers. This initiative, highlighted by the introduction of a "rate of last resort," is a critical response to ongoing challenges in the province's electricity sector, particularly following recent market volatility and increasing consumer concerns about rising electricity prices across the province.

Understanding the Rate of Last Resort

The "rate of last resort" (RLR) is designed to ensure that all Albertans have access to affordable electricity, even when they face challenges securing a competitive rate in the open market. This measure is particularly beneficial for those who may not have the means or the knowledge to navigate complex energy contracts, such as low-income families or seniors.

Under this new plan, the RLR will serve as a safety net, guaranteeing a stable and predictable rate for customers who find themselves without a competitive provider. This move is seen as a crucial step in addressing the needs of vulnerable populations who might otherwise be at risk of being shut out of the energy market.

Market Volatility and Consumer Protection

Alberta's electricity market has faced significant fluctuations over the past few years, and is headed for a reshuffle as policymakers respond to unpredictability in pricing and service availability. The rise in energy costs has caused distress among consumers, with many advocating for stronger protections against sudden price hikes.

The government's recent decision to implement the RLR is a direct acknowledgment of these concerns. By creating a baseline rate, officials aim to provide consumers with peace of mind, knowing that there is a fallback option should market conditions turn unfavorable. This initiative complements other measures aimed at enhancing consumer protections, including improved transparency in pricing, the consumer price cap on power bills being advanced, and the regulation of energy suppliers.

Broader Implications for Alberta’s Energy Landscape

This plan is not only about consumer protection; it also represents a broader shift towards a more sustainable and stable energy market in Alberta, aligning with proposed electricity market changes under consideration. The introduction of the RLR is part of a comprehensive strategy that includes investments in renewable energy and infrastructure improvements. By modernizing the grid and promoting cleaner energy sources, the government aims to reduce dependency on fossil fuels while maintaining reliability and affordability.

Additionally, this move aligns with the province's goals to meet climate targets and transition to a more sustainable energy future as Alberta is changing how it produces and pays for electricity through policy updates. As the demand for clean energy grows, Alberta is positioning itself to be a leader in this transformation, appealing to both residents and businesses committed to sustainability.

Public and Industry Reactions

The announcement has garnered mixed reactions from various stakeholders. While consumer advocacy groups have largely praised the government's efforts to protect consumers and ensure affordable electricity, some industry experts express concerns about potential long-term impacts on competition, arguing the market needs competition to remain dynamic. They argue that while the RLR provides immediate relief, it could disincentivize companies from offering competitive rates, leading to a less dynamic market in the future.

The Alberta Utilities Commission (AUC) is expected to play a pivotal role in overseeing the implementation of the RLR, ensuring that it operates effectively and that any unintended consequences are addressed swiftly. This regulatory oversight will be crucial in balancing consumer protection with the need for a competitive energy market.

Conclusion

As Alberta forges ahead with its electricity market reforms, the introduction of the rate of last resort marks a significant step in enhancing consumer protection and ensuring energy affordability. While challenges remain, the government's proactive approach reflects a commitment to addressing the needs of all Albertans, particularly those most vulnerable to market fluctuations.

In this evolving energy landscape, the RLR will serve not only as a safety net for consumers but also as a foundation for a more sustainable and reliable electricity system. As Alberta continues to adapt to changing energy demands and climate considerations, the effectiveness of these measures will be closely monitored, shaping the future of the province’s electricity market.

 

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Reconciliation and a Clean Electricity Standard

Clean Electricity Standard (CES) sets utility emissions targets, uses tradable credits, and advances decarbonization via technology-agnostic benchmarks, carbon capture, renewable portfolio standards, upstream methane accounting, and cap-and-trade alternatives in reconciliation policy.

 

Key Points

CES sets utility emissions targets using tradable credits and benchmarks to drive power-sector decarbonization.

✅ Annual clean energy targets phased to 2050

✅ Tradable credits for compliance across utilities

✅ Includes upstream methane and lifecycle emissions

 

The Biden Administration and Democratic members of Congress have supported including a clean electricity standard (CES) in the upcoming reconciliation bill. A CES is an alternative to pricing carbon dioxide through a tax or cap-and-trade program and focuses on reducing greenhouse gas emissions produced during electricity generation by establishing targets, while early assessments show mixed results so far. In principle, it is a technology-agnostic approach. In practice, however, it pushes particular technologies out of the market.

The details of the CES are still being developed, but recent legislation may provide insight into how the CES could operate. In May, Senator Tina Smith and Representative Ben Ray Luján introduced the Clean Energy Standard Act of 2019 (CESA), while Minnesota's 100% carbon-free mandate offers a state-level parallel, and in January 2020, the House Energy and Commerce Committee released a discussion draft of the Climate Leadership and Environmental Action for our Nation’s (CLEAN) Future Act. Both bills increase the clean energy target annually until 2050 in order to phase out emissions. Both bills also create a credit system where clean sources of electricity as determined by a benchmark, carbon dioxide emitted per kilowatt-hour, receive credits. These credits may be transferred, sold, and auctioned so utilities that fail to meet targets can procure credits from others, as large energy customers push to accelerate clean energy globally.

The bills’ benchmarks vary, and while the CLEAN Future Act allows natural gas-fired generators to receive partial credits, CESA does not. Under both bills, these generators would be expected to install carbon capture technology to continue meeting increasing targets for clean electricity generation. Both bills go beyond considering the emissions resulting from generation and include upstream emissions for natural gas-fired generators. Natural gas, a greenhouse gas, that is leaked upstream of a generator during transportation is to be included among its emissions. The CLEAN Future Act also calls for newly constructed hydropower generators to account for the emissions associated with the facility’s construction despite producing clean electricity. These additional provisions demonstrate not only the CES’s inability to fully address the issue of emissions but also the slippery slope of expanding the program to include other markets, echoing cost and reliability concerns as California exports its energy policies across the West.

A majority of states have adopted clean energy, electricity, or renewable portfolio standards, with some considering revamping electricity rates to clean the grid, leaving legislators with plenty of examples to consider. As they weigh their options, legislators should consider if they are effectively addressing the problem at hand, economy-wide emissions reductions, and at what cost, drawing on examples like New Mexico's 100% clean electricity bill to inform trade-offs.

 

 

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Nova Scotia Power delays start of controversial new charge for solar customers

Nova Scotia Power solar charge proposes an $8/kW monthly system access fee on net metering customers, citing grid costs. UARB review, carbon credits, rate hikes, and solar industry impacts fuel political and consumer backlash.

 

Key Points

A proposed $8/kW monthly grid access fee on net metered solar customers, delayed to Feb 1, 2023, pending UARB review.

✅ $8/kW monthly system access fee on net metering

✅ Delay to Feb 1, 2023 after industry and political pushback

✅ UARB review; debate over grid costs and carbon credits

 

Nova Scotia Power has pushed back by a year the start date of a proposed new charge for customers who generate electricity and sell it back to the grid, following days of concern from the solar industry and politicians worried that it will damage the sector.

The company applied to the Nova Scotia Utility and Review Board (UARB) last week for various changes, including a "system access charge" of $8 per kilowatt monthly on net metered installations, and the province cannot order the utility to lower rates under current law. The vast majority of the province's 4,100 net metering customers are residential customers with solar power, according to the application. 

The proposed charge would have come into effect Tuesday if approved, but Nova Scotia Power said in a news release Tuesday it will change the date in its filing from Feb. 1, 2022, to Feb. 1, 2023.

"We understand that the solar industry was taken off guard," utility CEO Peter Gregg said in an interview.

"There could have been an opportunity to have more conversations in advance."

Gregg said the utility will meet with members of the solar industry over the next year to work on finding solutions that support the sector's growth, while addressing what NSP sees as an inequity in the net metering system.

NSP recognized that customers who choose solar invest a significant amount and pay for the electricity they use, but they don't pay for costs associated with accessing the electrical grid when they need energy, such as on cold winter evenings when the sun is not shining.

"I know that's hit a nerve, but it doesn't take away the fact that it is an issue," Gregg said.

He said this is an issue utilities are navigating around North America, where seasonal rate designs have sparked consumer backlash in New Brunswick, and NSP is open to hearing ideas for other models of charges or fees.

The utility's suggested system access charge closely resembles one proposed in California, which has also raised major concerns from the solar industry and been criticized by the likes of Elon Musk, and has parallels to Massachusetts solar demand charges as well.

Although the "solar profile" of Nova Scotia and California is very different, with far more solar customers in that state, and in other provinces such as Saskatchewan, NDP criticism of 8% hikes has intensified affordability debates, Gregg said the fundamental issues are the same.

For those with a typical 10-kilowatt solar system, which generates around $1,800 of electricity a year, the new charge would mean those customers would be required to pay $960 back to NSP. That would roughly double the length of time it takes for those customers to pay off their investment for the panels.

David Brushett, chair of Solar Nova Scotia, said he relayed concerns from solar installers and others in the industry to Gregg on Monday. 

Brushett said the year delay is a positive first step, but he is still calling on the province to take a strong stance against the application, which has led to customers cancelling their panel installations and companies considering layoffs.

"There's still an urgency to this situation that hasn't been addressed, and we need to kind of protect the industry," he said Tuesday.

NSP's original application proposed exempting net metering customers who enrolled before Feb. 1, 2022, from the charge for 25 years after they sign up. But any benefit would be lost if those customers sold their home, and the exemption wouldn't extend to the new buyers, said Brushett.


Carbon offsets missing from equation: industry
Brushett said NSP "completely ignored" the fact that it's getting free carbon offset credits from homeowners who use solar energy under the provincial cap and trade program.

If the net metering system continues as is, NSP has said non-solar customers would pay about $55 million between now and 2030. That number assumes about 2,000 people sign up for net metering each year over the next nine years.

When asked whether those carbon emission credits were factored into the calculations for the proposed charge, Gregg said, "I don't believe in the current structure it is, but it's something that certainly we'd be open to hearing about."

Brushett said his group is finalizing a legal response to NSP's proposal and has already filed an official complaint against the company with the UARB.


Base charge on actual electrical output: customer
At least one shareholder in NSP parent company Emera is considering selling his shares in response to the application.

Joe Hood, a shareholder from Middle Sackville, said the proposed charge won't apply to his existing 11.16-kilowatt solar system, but if it did, it would cost him $1,071 a year.

"I am offended that a company I would invest in would do this to the solar industry in Nova Scotia," he said.

According to his meter, Hood said he pushed 9,600 kilowatt hours of solar electricity to the grid last year— some only for a brief period, and all of which was used by his home by the end of the year.

Under the proposed charge, someone with one solar panel who goes away on vacation in the summer would push all their electricity to the grid, and be charged far less than someone with 10 panels who has used all their own power and hasn't pushed anything.

"Nova Scotia Power's argument is that it's an issue with the grid. Well, then it should be based on what touches the grid," Hood said.

Far from actually making the system fair for everyone, Hood said this charge places solar only in the hands of the super-rich or NSP, with projects like its community solar gardens in Amherst, N.S.


Green Party suggests legislation update
Nova Scotia's Green Party also said Tuesday that Gregg's arguments of fairness are misleading, echoing earlier premier opposition to a 14% hike on rates.

The party is calling for an update to the Electricity Act that would "prevent penalizing any activity that helps Nova Scotia reach its emissions target," aligning with calls to make the electricity system more accountable to residents.

In its application, NSP has also asked to increase electricity rates for residential customers by at least 10 per cent over the next three years, amid debate that culminated in a 14% rate hike approval by regulators. 

The company wants to maintain its nine per cent rate of return.

NSP expects to earn $153 million this year, $192 million in 2023, and $213 million in 2024 from its rate of return. 

 

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State-sponsored actors 'very likely' looking to attack electricity supply, says intelligence agency

Canada Critical Infrastructure Cyber Risks include state-sponsored actors probing the electricity grid and ICS/OT, ransomware on utilities, and espionage targeting smart cities, medical devices, and energy networks, pre-positioning for disruptive operations.

 

Key Points

Nation-state and criminal cyber risks to Canada's power, water, and OT/ICS, aiming to disrupt, steal data, or extort.

✅ State-sponsored probing of power grid and utilities

✅ OT/ICS exposure grows as systems connect to IT networks

✅ Ransomware, espionage, and pre-positioning for disruption

 

State-sponsored actors are "very likely" trying to shore up their cyber capabilities to attack Canada's critical infrastructure — such as the electricity supply, as underscored by the IEA net-zero electricity report indicating rising demand for clean power, to intimidate or to prepare for future online assaults, a new intelligence assessment warns.

"As physical infrastructure and processes continue to be connected to the internet, cyber threat activity has followed, leading to increasing risk to the functioning of machinery and the safety of Canadians," says a new national cyber threat assessment drafted by the Communications Security Establishment.

"We judge that state-sponsored actors are very likely attempting to develop the additional cyber capabilities required to disrupt the supply of electricity in Canada, even as cleaning up Canada's electricity remains critical for climate goals."

Today's report — the second from the agency's Canadian Centre for Cyber Security wing — looks at the major cyber threats to Canadians' physical safety and economic security.

The CSE does say in the report that while it's unlikely cyber threat actors would intentionally disrupt critical infrastructure — such as water and electricity supplies — to cause major damage or loss of life, they would target critical organizations "to collect information, pre-position for future activities, or as a form of intimidation."

The report said Russia-associated actors probed the networks of electricity utilities in the U.S. and Canada last year and Chinese state-sponsored cyber threat actors have targeted U.S. utility employees. Other countries have seen their industrial control systems targeted by Iranian hacking groups and North Korean malware was found in the IT networks of an Indian power plant, it said.

The threat grows as more critical infrastructure goes high-tech.

In the past, the operational technology (OT) used to control dams, boilers, electricity and pipeline operations has been largely immune to cyberattacks — but that's changing as manufacturers incorporate newer information technology in their systems and products and as the race to net-zero drives grid modernization, says the report.

That technology might make things easier and lower costs for utilities already facing debates over electricity prices in Alberta amid affordability concerns, but it comes with risks, said Scott Jones, the head of the cyber centre.

"So that means now it is a target, it is accessible and it's vulnerable. So what you could see is shutting off of transmission lines, you can see them opening circuit breakers, meaning electricity simply won't flow to our homes to our business," he told reporters Wednesday.

While the probability of such attacks remains low, Jones said the goal of Wednesday's briefing is to send out the early warnings.

"We're not trying to scare people. We're certainly not trying to scare people into going off grid by building a cabin in the woods. We're here to say, 'Let's tackle these now while they're still paper, while they're still a threat we're writing down.'"

Steve Waterhouse, a former cybersecurity officer for the Department of National Defence who now teaches at Université de Sherbrooke, said a saving grace for Canada could be the makeup of its electrical systems.

"Since in Canada, they're very centralized, it's easier to defend, and debates about bridging Alberta and B.C. electricity aim to strengthen resilience, while down in the States, they have multiple companies all around the place. So the weakest link is very hard to identify where it is, but the effect is a cascading effect across the country ... And it could impact Canada, just like we saw in the big Northeastern power outage, the blackout of 2003," he said.

"So that goes to say, we have to be prepared. And I believe most energy companies have been taking extra measures to protect and defend against these type of attacks, even as Canada points to nationwide climate success in electricity to meet emissions goals."

In the future, attacks targeting so-called smart cities and internet-connected devices, such as personal medical devices, could also put Canadians at risk, says the report. 

Earlier this year, for example, Health Canada warned the public that medical devices containing a particular Bluetooth chip — including pacemakers, blood glucose monitors and insulin pumps — are vulnerable to cyber attacks that could crash them.

The foreign signals intelligence agency also says that while state-sponsored programs in China, Russia, Iran and North Korea "almost certainly" pose the greatest state-sponsored cyber threats to Canadian individuals and organizations, many other states are rapidly developing their own cyber programs.

Waterhouse said he was glad to see the government agency call out the countries by name, representing a shift in approach in recent years.

"To tackle on and be ready to face a cyber-attack, you have to know your enemy," he said.

"You have to know what's vulnerable inside of your organization. You have to know how ... vulnerable it is against the threats that are out there."


Commercial espionage continues
State-sponsored actors will also continue their commercial espionage campaigns against Canadian businesses, academia and governments — even as calls to make Canada a post-COVID manufacturing hub grow — to steal Canadian intellectual property and proprietary information, says the CSE.

"We assess that these threat actors will almost certainly continue attempting to steal intellectual property related to combating COVID-19 to support their own domestic public health responses or to profit from its illegal reproduction by their own firms," says the "key judgments" section of the report.

"The threat of cyber espionage is almost certainly higher for Canadian organizations that operate abroad or work directly with foreign state-owned enterprises."

The CSE says such commercial espionage is happening already across multiple fields, including aviation, technology and AI, energy and biopharmaceuticals.

While state-sponsored cyber activity tends to offer the most sophisticated threats, CSE said that cybercrime continues to be the threat most likely to directly affect Canadians and Canadian organizations, through vectors like online scams and malware.

"We judge that ransomware directed against Canada will almost certainly continue to target large enterprises and critical infrastructure providers. These entities cannot tolerate sustained disruptions and are willing to pay up to millions of dollars to quickly restore their operations," says the report.


Cybercrime becoming more sophisticated 
According to the Canadian Anti-Fraud Centre, Canadians lost over $43 million to cybercrime last year. The CSE reported earlier this year that online thieves have been using the COVID-19 pandemic to trick Canadians into forking over their money — through scams like a phishing campaign that claimed to offer access to a Canada Emergency Response Benefit payment in exchange for the target's personal financial details.

Online foreign influence activities — a dominant theme in the CSE's last threat assessment briefing — continue and constitute "a new normal" in international affairs as adversaries seek to influence domestic and international political events, says the agency.

"We assess that, relative to some other countries, Canadians are lower-priority targets for online foreign influence activity," it said.

"However, Canada's media ecosystem is closely intertwined with that of the United States and other allies, which means that when their populations are targeted, Canadians become exposed to online influence as a type of collateral damage."

According to the agency's own definition, "almost certainly" means it is nearly 100 per cent certain in its analysis, while "very likely" means it is 80-90 per cent certain of its conclusions. The CSE says its analysis is based off of a mix of confidential and non-confidential intelligence and sources. 

 

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