Apartment complex owners could be charged in death

California Net Zero Grid Investment will fuel electrification, renewable energy buildout, EV adoption, and grid modernization, boosting utilities, solar, and storage, while policy, IRA incentives, and transmission upgrades drive reliability and long-term rate base growth.

Key Points

Funding to electrify sectors and modernize the grid, scaling renewables, EVs, and storage to meet 2045 net zero goals.

✅ $370B over 22 years to meet 2045 net zero target

✅ Utilities lead gains via grid modernization and rate base growth

✅ EVs, solar, storage scale; IRA credits offset costs

$370 billion: That’s the investment Edison International CEO Pedro Pizarro says is needed for California’s power grid to meet the state’s “net zero” goal for CO2 emissions by 2045.

Getting there will require replacing fossil fuels with electricity in transportation, HVAC systems for buildings and industrial processes. Combined with population growth and data demand potentially augmented by artificial intelligence, that adds up to an 82 percent increase in electricity demand over 22 years, or 3 percent annually, and a potential looming shortage if buildout lags.

California’s plans also call for phasing out fossil fuel generation in the state, despite ongoing dependence on fossil power during peaks. And presumably, its last nuclear plant—PG&E Corp’s (PCG) Diablo Canyon—will be eventually be shuttered as well. So getting there also means trebling the state’s renewable energy generation and doubling usage of rooftop solar.

Assuming this investment is made, it’s relatively easy to put together a list of beneficiaries. Electric vehicles hit 20 percent market share in the state in Q2, even as pandemic-era demand shifts complicate load forecasting. And while competition from manufacturers has increased, leading manufacturers like Tesla TSLA -3% Inc (TSLA) can look forward to rising sales for some time—though that’s more than priced in for Elon Musk’s company at 65 times expected next 12 months earnings.

In the past year, California regulators have dialed back net metering through pricing changes affecting compensation, a subsidy previously paying rooftop solar owners premium prices for power sold back to the grid. That’s hit share prices of SunPower Corp (SPWR) and Sunrun Inc (RUN) quite hard, by further undermining business plans yet to demonstrate consistent profitability.

Nonetheless, these companies too can expect robust sales growth, as global prices for solar components drop and Inflation Reduction Act tax credits at least somewhat offset higher interest rates. And the combination of IRA tax credits and U.S. tariff walls will continue to boost sales at solar manufacturers like JinkoSolar Holding (JKS).

The surest, biggest beneficiaries of California’s drive to Net Zero are the utilities, reflecting broader utility trends in grid modernization, with investment increasing earnings and dividends. And as the state’s largest pure electric company, Edison has the clearest path.

Edison is currently requesting California regulators OK recovery over a 30-year period of $2.4 billion in losses related to 2017 wildfires. Assuming a amicable decision by early next year, management can then turn its attention to upgrading the grid. That investment is expected to generate long-term rate base growth of 8 percent at year, fueling 5 to 7 percent annual earnings growth through 2028 with commensurate dividend increases.

That’s a strong value proposition Edison stock, with trades at just 14 times expected next 12 months earnings. The yield of roughly 4.4 percent at current prices was increased 5.4 percent this year and is headed for a similar boost in December.

When California deregulated electricity in 1996, it required utilities with rare exceptions to divest their power generation. As a result, Edison’s growth opportunity is 100 percent upgrading its transmission and distribution grid. And its projects can typically be proposed, sited, permitted and built in less than a year, limiting risk of cost overruns to ensure regulatory approval and strong investment returns.

Edison’s investment plan is also pretty much immune to an unlikely backtracking on Net Zero goals by the state. And the company has a cost argument as well: Dr Pizarro cites U.S. Department of Energy and Department of Transportation data to project inflation-adjusted savings of 40 percent in California’s total customer energy bills from full electrification.

There’s even a reason to believe 40 percent savings will prove conservative. Mainly, gasoline currently accounts for a bit more than half energy expenditures. And after a more than 10-year global oil and gas investment drought, supplies are likely get tighter and prices possibly much higher in coming years.

Of course, those savings will only show up after significant investment is made. At this point, no major utility system in the world runs on 100 percent renewable energy, and California’s blackout politics underscore how reliability concerns shape deployment. And the magnitude of storage technology needed to overcome intermittency in solar and wind generation is not currently available let alone affordable, though both cost and efficiency are advancing.

Taking EVs from 20 to 100 percent of California’s new vehicle sales calls for a similar leap in efficiency and cost, even with generous federal and state subsidy. And while technology to fully electrify buildings and homes is there, economically retrofitting statewide is almost certainly going to be a slog.

At the end of the day, political will is likely to be as important as future technological advance for how much of Pizarro’s $370 billion actually gets spent. And the same will be true across the U.S., with state governments and regulators still by and large calling the shots for how electricity gets generated, transmitted and distributed—as well as who pays for it and how much, even as California’s exported policies influence Western markets.

Ironically, the one state where investors don’t need to worry about renewable energy’s prospects is one of the currently reddest politically. That’s Florida, where NextEra Energy NEE +2.8% (NEE) and other utilities can dramatically cut costs to customers and boost reliability by deploying solar and energy storage.

You won’t hear management asserting it can run the Sunshine State on 100 percent renewable energy, as utilities and regulators do in some of the bluer parts of the country. But by demonstrating the cost and reliability argument for solar deployment, NextEra is also making the case why its stock is America’s highest percentage bet on renewables’ growth—particularly at a time when all things energy are unfortunately becoming increasingly, intensely political.

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Canada EV Tariffs weigh protectionism, import duties, and trade policy against affordable electric vehicles, climate goals, and consumer costs, balancing domestic manufacturing, critical minerals, battery supply chains, and China relations amid US-EU actions.

Key Points

Canada EV Tariffs are proposed duties on Chinese EV imports to protect jobs vs. prices, climate goals, and trade risks.

✅ Shield domestic automakers; counter subsidies

✅ Raise EV prices; slow adoption, climate targets

✅ Spark China retaliation; hit exports, supply chains

Canada, a rising star in critical EV battery minerals, finds itself at a crossroads. The question: should they follow the US and EU and impose tariffs on Chinese electric vehicles (EVs), after the U.S. 100% tariff on Chinese EVs set a precedent?

The Allure of Protectionism

Proponents see tariffs as a shield for Canada's auto industry, supported by recent EV assembly deals that put Canada in the race, a vital job creator. They argue that cheaper Chinese EVs, potentially boosted by government subsidies, threaten Canadian manufacturers. Tariffs, they believe, would level the playing field.

Consumer Concerns and Environmental Impact

Opponents fear tariffs will translate to higher prices, deterring Canadians from buying EVs, especially amid EV shortages and wait times already affecting the market. This could slow down Canada's transition to cleaner transportation, crucial for meeting climate goals. A slower EV adoption could also impact Canada's potential as an EV leader.

The Looming Trade War Shadow

Tariffs risk escalating tensions with China, Canada's second-largest trading partner. China might retaliate with tariffs on Canadian exports, jeopardizing sectors like oil and lumber. This could harm the Canadian economy and disrupt critical mineral and battery development, areas where Canada is strategically positioned, even as opportunities to capitalize on the U.S. EV pivot continue to emerge across North America.

Navigating a Charged Path

The Canadian government faces a complex decision. Protecting domestic jobs is important, but so is keeping EVs affordable for a greener future and advancing EV sales regulations that shape the market. Canada must carefully consider the potential benefits of tariffs against the risks of higher consumer costs and a potential trade war.

This path forward could involve exploring alternative solutions. Canada could invest in its domestic EV industry, providing incentives for both consumers and manufacturers. Additionally, collaborating with other countries, including Canada-U.S. collaboration as companies turn to EVs, to address China's alleged unfair trade practices might be a more strategic approach.

Canada's decision on EV tariffs will have far-reaching consequences. Striking a balance between protecting its domestic industry and fostering a robust, environmentally friendly transportation sector, and meeting ambitious EV goals set by policymakers, is crucial. Only time will tell which path Canada chooses, but the stakes are high, impacting not just jobs, but also the environment and Canada's position in the global EV race.

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California Biofuels vs EV Subsidies examines tradeoffs in decarbonization, greenhouse gas reductions, clean energy deployment, charging infrastructure, energy security, lifecycle emissions, and transportation sector policy to meet climate goals and accelerate sustainable mobility.

Key Points

Policy tradeoffs weighing biofuels and EVs to cut GHGs, boost energy security, and advance clean transportation.

✅ Near-term blending cuts emissions from existing fleets

✅ EVs scale with a cleaner grid and charging buildout

✅ Lifecycle impacts and costs guide optimal subsidy mix

California is at the forefront of the transition to a greener economy, driven by its ambitious goals to reduce greenhouse gas emissions and combat climate change. As part of its strategy, the state is grappling with the question of whether it should subsidize out-of-state biofuels or in-state electric vehicles (EVs) to meet these goals. Both options come with their own sets of benefits and challenges, and the decision carries significant implications for the state’s environmental, economic, and energy landscapes.

The Case for Biofuels

Biofuels have long been promoted as a cleaner alternative to traditional fossil fuels like gasoline and diesel. They are made from organic materials such as agricultural crops, algae, and waste, which means they can potentially reduce carbon emissions in comparison to petroleum-based fuels. In the context of California, biofuels—particularly ethanol and biodiesel—are viewed as a way to decarbonize the transportation sector, which is one of the state’s largest sources of greenhouse gas emissions.

Subsidizing out-of-state biofuels can help California reduce its reliance on imported oil while promoting the development of biofuel industries in other states. This approach may have immediate benefits, as biofuels are widely available and can be blended with conventional fuels to lower carbon emissions right away. It also allows the state to diversify its energy sources, improving energy security by reducing dependency on oil imports.

Moreover, biofuels can be produced in many regions across the United States, including rural areas. By subsidizing out-of-state biofuels, California could foster economic development in these regions, creating jobs and stimulating agricultural innovation. This approach could also support farmers who grow the feedstock for biofuel production, boosting the agricultural economy in the U.S.

However, there are drawbacks. The environmental benefits of biofuels are often debated. Critics argue that the production of biofuels—particularly those made from food crops like corn—can contribute to deforestation, water pollution, and increased food prices. Additionally, biofuels are not a silver bullet in the fight against climate change, as their production and combustion still release greenhouse gases. When considering whether to subsidize biofuels, California must also account for the full lifecycle emissions associated with their production and use.

The Case for Electric Vehicles

In contrast to biofuels, electric vehicles (EVs) offer a more direct pathway to reducing emissions from transportation. EVs are powered by electricity, and when coupled with renewable energy sources like solar or wind power, they can provide a nearly zero-emission solution for personal and commercial transportation. California has already invested heavily in EV infrastructure, including expanding its network of charging stations and exploring how EVs can support grid stability through vehicle-to-grid approaches, and offering incentives for consumers to purchase EVs.

Subsidizing in-state EVs could stimulate job creation and innovation within California's thriving clean-tech industry, with other states such as New Mexico projecting substantial economic gains from transportation electrification, and the state has already become a hub for electric vehicle manufacturers, including Tesla, Rivian, and several battery manufacturers. Supporting the EV industry could further strengthen California’s position as a global leader in green technology, attracting investment and fostering growth in related sectors such as battery manufacturing, renewable energy, and smart grid technology.

Additionally, the environmental benefits of EVs are substantial. As the electric grid becomes cleaner with an increasing share of renewable energy, EVs will become even greener, with lower lifecycle emissions than biofuels. By prioritizing EVs, California could further reduce its carbon footprint while also achieving its long-term climate goals, including reaching carbon neutrality by 2045.

However, there are challenges. EV adoption in California remains a significant undertaking, requiring major investments in infrastructure as they challenge state power grids in the near term, technology, and consumer incentives. The cost of EVs, although decreasing, still remains a barrier for many consumers. Additionally, there are concerns about the environmental impact of lithium mining, which is essential for EV batteries. While renewable energy is expanding, California’s grid is still reliant on fossil fuels to some degree, and in other jurisdictions such as Canada's 2019 electricity mix fossil generation remains significant, meaning that the full emissions benefit of EVs is not realized until the grid is entirely powered by clean energy.

A Balancing Act

The debate between subsidizing out-of-state biofuels and in-state electric vehicles is ultimately a question of how best to allocate California’s resources to meet its climate and economic goals. Biofuels may offer a quicker fix for reducing emissions from existing vehicles, but their long-term benefits are more limited compared to the transformative potential of electric vehicles, even as some analysts warn of policy pitfalls that could complicate the transition.

However, biofuels still have a role to play in decarbonizing hard-to-abate sectors like aviation and heavy-duty transportation, where electrification may not be as feasible in the near future. Thus, a mixed strategy that includes both subsidies for EVs and biofuels may be the most effective approach.

Ultimately, California’s decision will likely depend on a combination of factors, including technological advancements, 2021 electricity lessons, and the pace of renewable energy deployment, and the state’s ability to balance short-term needs with long-term environmental goals. The road ahead is not easy, but California's leadership in clean energy will be crucial in shaping the nation’s response to climate change.

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Norway Electricity Export Limits weigh hydro reservoirs, energy security, EU-UK interconnectors, and record power prices amid Russia gas cuts; Statnett grid constraints and subsidies debate intensify as reservoir levels fall, threatening winter supply.

Key Points

Rules to curb Norway's power exports when reservoirs are very low, protecting supply security and easing extreme prices.

✅ Triggered by low hydro levels and record day-ahead prices

✅ Considers EU/UK cables, Statnett operations, seasonal thresholds

✅ Aims to secure winter supply and expand subsidies

Norway, one of Europe’s biggest electricity exporters, is considering measures to limit power shipments to prevent domestic shortages amid surging prices, according to local media reports.

The government may propose a rule to limit exports if the water level for Norway’s hydro reservoirs drops to “very low” levels, to ensure security of supply, said Energy Minister Terje Aasland, according NTB newswire. The limit would take account of seasonality and would differ across the about 1,800 hydro reservoirs, he said. 

Russia’s gas supply cuts in retaliation for European sanctions over the war in Ukraine have triggered the continent’s worst energy crisis in decades, with demand surging for cheap Norwegian hydro electricity. Yet the government faces increasing calls from the public and opposition to limit flows abroad. Prices are near record levels in some parts of the Nordic nation as hydro-reservoir levels have plunged in the south after a drier-than-normal spring. 

The government has been under pressure to do something about exports since before April. Flows on the cables are regulated by deals with both the European Union and the UK energy market and Norway can’t simply cut flows. It’s the latest test of European solidarity and a wake-up call for Europe when it comes to energy supplies. Hungary is trying to ban energy exports after it declared an energy emergency.

Back in May, grid operator Statnett SF warned that Norway could face a strained power situation after less snowfall than usual during the winter. At the end of last week, the level of filling in Norwegian hydro reservoirs was 66.5%, compared with a median 74.9% for the corresponding time in 2002-2021, regulator NVE said. Day-ahead electricity prices in southwest Norway soared to a record 423 euros per megawatt-hour late last month, partly due to bottlenecks in the grid limiting supply from the northern regions.

The grid operator has been asked to present by Oct. 1 possible measures that need to be taken to secure supply and infrastructure security ahead of the winter. Statnett operates cables to the UK and Germany aimed at selling surplus electricity and would likely take a financial hit if curbs were introduced. “Operations of these will always follow current laws and regulations,” Irene Meldal, a company spokeswoman, said Friday by email. 

Premier Jonas Gahr Store signaled his minority government will file proposals that also include more subsidies to families and companies and align with Europe’s emergency price measures during August, according to an interview with TV2 on Thursday. Meanwhile, opposition politicians plan to hold an extraordinary parliament meeting to discuss boosting the subsidies.

Aasland will summon the parties’ representatives to a meeting on Monday on the electricity crisis, the Aftenposten newspaper reported on Friday, without citing anyone. He intends to inform the parties about the ongoing work and aims to “avoid rushed decisions” by the parliamentary majority.

Norway Faces Pressure to Curb Power Exports as Prices Surge (1)

The nation gets almost all of its electricity from its vast hydro resources. Historically, it has been able to export a hefty surplus and still have among the lowest prices in Europe. 
 

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Canadian Energy Infrastructure Tariffs are reshaping pipelines, deregulation, and energy independence, as U.S. trade tensions accelerate approvals for Alberta oil sands, Trans Mountain expansion, and CAPP proposals amid regulatory reform and market diversification.

Key Points

U.S. tariff threats drive approvals, infrastructure, and diversification to strengthen Canada energy security.

✅ Tariff risk boosts support for pipelines and export routes

✅ Faster project approvals and deregulation gain political backing

✅ Diversifying markets reduces reliance on U.S. buyers

In recent months, the Canadian energy sector has experienced a shift in public and political attitudes toward infrastructure projects, particularly those related to oil and gas production. This shift has been largely influenced by the threat of tariffs from the United States, as well as growing concerns about energy independence and U.S.-Canada trade tensions more broadly.

Scott Burrows, the CEO of Pembina Pipeline Corp., noted in a conference call that the potential for U.S. tariffs on Canadian energy imports has spurred a renewed sense of urgency and receptiveness toward energy infrastructure projects in Canada. With U.S. President Donald Trump’s proposed tariffs Trump tariff threat on Canadian imports, particularly a 10% tariff on energy products, there is increasing recognition within Canada that these projects are essential for the country’s long-term economic and energy security.

While the direct impact of the tariffs is not immediate, industry leaders are optimistic about the long-term benefits of deregulation and faster project approvals, even as some see Biden as better for Canada’s energy sector overall. Burrows highlighted that while it will take time for the full effects to materialize, there are significant "tailwinds" in favor of faster energy infrastructure development. This includes the possibility of more streamlined regulatory processes and a shift toward more efficient project timelines, which could significantly benefit the Canadian energy sector.

This changing landscape is particularly important for Alberta’s oil production, which is one of the largest contributors to Canada’s energy output. The Canadian Association of Petroleum Producers (CAPP) has responded to the growing tariff threat by releasing an “energy platform,” outlining recommendations for Ottawa to help mitigate the risks posed by the evolving trade situation. The platform includes calls for improved infrastructure, such as pipelines and transportation systems, and priorities like clean grids and batteries, to ensure that Canadian energy can reach global markets more effectively.

The tariff threat has also sparked a wider conversation about the need for Canada to strengthen its energy infrastructure and reduce its dependency on the U.S. for energy exports. With the potential for escalating trade tensions, there is a growing push for Canadian energy resources to be processed and utilized more domestically, though cutting Quebec’s energy exports during a tariff war. This has led to increased political support for projects like the Trans Mountain pipeline expansion, which aims to connect Alberta’s oil sands to new markets in Asia via the west coast.

However, the energy sector’s push for deregulation and quicker approvals has raised concerns among environmental groups and Indigenous communities. Critics argue that fast-tracking energy projects could lead to inadequate environmental assessments and greater risks to local ecosystems. These concerns underscore the tension between economic development and environmental protection in the energy sector.

Despite these concerns, there is a clear consensus that Canada’s energy industry needs to evolve to meet the challenges posed by shifting trade dynamics, even as polls show support for energy and mineral tariffs in the current dispute. The proposed U.S. tariffs have made it increasingly clear that the country’s energy infrastructure needs significant investment and modernization to ensure that Canada can maintain its status as a reliable and competitive energy supplier on the global stage.

As the deadline for the tariff decision approaches, and as Ford threatens to cut U.S. electricity exports, Canada’s energy sector is bracing for the potential fallout, while also preparing to capitalize on any opportunities that may arise from the changing trade environment. The next few months will be critical in determining how Canadian policymakers, businesses, and environmental groups navigate the complex intersection of energy, trade, and regulatory reform.

While the threat of U.S. tariffs may be unsettling, it is also serving as a catalyst for much-needed changes in Canada’s energy policy. The push for faster approvals and deregulation may help address some of the immediate concerns facing the sector, but it will be crucial for the government to balance economic interests with environmental and social considerations as the country moves forward in its energy transition.

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Ontario Utilities Hurricane Irma Aid mobilizes Hydro One and Toronto Hydro crews to Tampa Bay, Florida, restoring power outages with bucket trucks, lineworkers, and mutual aid alongside Florida Power & Light after catastrophic damage.

Key Points

Mutual aid sending Hydro One and Toronto Hydro crews to Florida to restore power after Hurricane Irma.

✅ 205 workers, 52 bucket trucks, 30 support vehicles deployed

✅ Crews assist Tampa Bay under FPL mutual aid agreements

✅ Weeks-long restoration projected after catastrophic outages

Hurricane Irma has left nearly 7 million homes in the southern United States without power and two Ontario hydro utility companies are sending teams to help out as part of Canadian power crews responding to the disaster.

Toronto Hydro is sending 30 staffers to aid in the restoration efforts in Tampa Bay while Hydro One said Sunday night that it would send 175 employees after receiving a request from Florida Power and Light.

“I've been on other storms down in the states and they are pretty happy to see you especially when they find out you're from Canada,” Dean Edwards, one of the Hydro One employees heading to Florida, told CTV Toronto.

Most of the employees are expected to cross the border on Monday afternoon and arrive Wednesday.

Among the crews, Hydro One says it will send 150 lines and forestry staff, as well as 25 supporting resources, including mechanics, to help. Crews will bring 52 bucket trucks to Florida, as well as 30 other vehicles, reflecting their Ontario storm restoration experience with large-scale deployments, and pieces of equipment to transport and replace poles.

Hurricane Irma has claimed at least 45 lives in the Caribbean and United States thus far. Officials estimate that restoring power to Florida will take weeks to bring power back online.

“I’m sure a lot of people wish they could go down and help, fortunately our job is geared towards that so we're going to go down there to do our best and represent Canada,” said Blair Clarke, who’s making his first trip over the border.

Hydro One has reciprocal arrangements with other North American utilities to help with significant power outages, and its employees have provided COVID-19 support in Ontario as part of broader emergency efforts. All the costs are covered by the utility receiving the help.

In the past, the utility has sent crews to Massachusetts, Michigan, Florida, Ohio, Vermont, Washington, DC, and the Carolinas, while Sudbury Hydro crews have worked to reconnect service after storms at home as well. In 2012, 225 Hydro One employees travelled to Long Island, N.Y., to help out with Hurricane Sandy.

“This is what our guys and gals do,” Natalie Poole-Moffat, vice president of Corporate Affairs for Hydro One, told CP24. “They’re fabulous at it and we’re really proud of the work they do.”

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