Westar rate hearing dates draw criticism

By McClatchy Tribune News


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State consumer advocates say a new schedule for public comments is short-circuiting people's chances to affect a proposed $177 million rate increase for Westar Energy.

The Kansas Corporation Commission has set public hearings on Westar's request for Sept. 2 in Salina, Sept. 3 in Topeka and Sept. 4 in Wichita. That's much earlier than in previous rate cases.

Most of the information in a rate case is gathered in written testimony and during court-like technical hearings in Topeka.

The public hearings offer a chance for ratepayers to have their say. The hearing schedule was approved over the objection of the Citizens' Utility Ratepayer Board (CURB), the state agency that represents residential and small-business customers. CURB consumer counsel David Springe says the early hearings - weeks before expert testimony and arguments on what Westar should get - put customers at a disadvantage.

If Westar's request is approved, it would increase electric rates 15 percent.

An average customer of Westar's southern division, the former KGE service territory, would see an increase of about $10.34 a month. Customers of the northern division, formerly KPL, would get a hike of $9.62. A rate case for a company the size of Westar, Kansas' largest utility with 675,000 customers, contains thousands of pages of data.

The expert analyses by CURB, the commission staff and others usually boils the case down to a few key issues. With the early hearing schedule, "the only one at the hearing that can extensively talk about the case is the company," Springe said.

"We think that's kind of silly."

In their majority opinion, commissioners Thomas Wright and Joseph Harkins said CURB must be ready for the hearings whenever they may be. In dissent, commissioner Mike Moffett said he agrees the hearings are too early.

"As this Commission is aware, I have advocated for improvements in methods by which the Commission receives and considers public comments in rate cases," Moffett wrote. "I do not believe the changes set forth in the schedule as recommended... accomplish this."

Westar officials initially worried that the early hearings would make it difficult to properly notify customers.

But company spokeswoman Karla Olsen said that's been solved and the company will be prepared for the hearings, which include a question-and-answer session for ratepayers.

Commission spokeswoman Rosemary Foreman said the public hearings were moved up so that ratepayers' comments and concerns could be incorporated into the staff's recommendation. She said customers can file comments in writing through Oct. 27, long after the major parties file their testimony. The commission is required by law to decide the case by Jan. 23.

Foreman said one of the main reasons for people to testify doesn't require any special knowledge.

"The commission needs to hear from those customers who are having trouble paying their bill," she said. That helps commissioners assess how their decisions affect customers, she said.

The hearings will be conducted in two parts. Part one will be an informal question-and-answer session among customers, company officials and CURB's lawyers. In the second part, customers will be sworn in and allowed to comment directly to the commissioners for the official record.

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Alberta Carbon tax is gone, but consumer price cap on electricity will remain

Alberta Electricity Rate Cap stays despite carbon tax repeal, keeping the Regulated Rate Option at 6.8 cents/kWh. Levy funds cover market gaps as the UCP reviews NDP policies to maintain affordable utility bills.

 

Key Points

Program capping RRO power at 6.8 cents/kWh, using levy funds to offset market prices while the UCP reviews policy.

✅ RRO cap fixed at 6.8 cents/kWh for eligible customers

✅ Levy funds pay generators when market prices exceed the cap

✅ UCP reviewing NDP policies to ensure affordable rates

 

Alberta's carbon tax has been cancelled, but a consumer price cap on electricity — which the levy pays for — is staying in place for now.

June electricity rates are due out on Monday, about four days after the new UCP government did away with the carbon charge on natural gas and vehicle fuel.

Part of the levy's revenue was earmarked by the previous NDP government to keep power prices at or below 6.8 cents per kilowatt hour under new electricity rules set by the province.

"The Regulated Rate Option cap of 6.8 cents/kWh was implemented by the previous government and currently remains in effect. We are reviewing all policies put in place by the former government and will make decisions that ensure more affordable electricity rates for job-creators and Albertans," said a spokesperson for Alberta's energy ministry in an emailed statement.

Albertans with regulated rate contracts and all City of Medicine Hat utility customers only pay that amount or less, though some Alberta ratepayers have faced deferral-related arrears.

If the actual market price rises above that, the difference is paid to generators directly from levy funds, a buffer that matters as experts warn prices are set to soar later this year.

The government has paid more than $55 million to utilities over the past year ending in March 2019, due to that electricity price cap being in place.

Alberta Energy says the price gap program will continue, at least for the time being, amid electricity policy changes being considered.

 

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Adani Electricity's Power Supply Cuts in Mumbai

Adani Electricity Mumbai Power Cuts follow non-payment rules, reflecting billing disputes, regulatory compliance, consumer impact, and affordability concerns, while prompting mitigation measures like flexible payment plans, assistance programs, and clearer communication for residents.

 

Key Points

AEML cutoffs for unpaid bills per rules, raising affordability worries, billing issues, and calls for flexible aid.

✅ Triggered by unpaid bills under regulatory guidelines

✅ Affordability and billing transparency concerns raised

✅ Mitigation: flexible plans, aid for low-income users

 

Adani Electricity Mumbai Limited (AEML) recently made headlines by cutting power supply to around 100 homes in Mumbai, sparking discussions about the reasons behind this action and its implications for consumers, especially as reports like the Northeast D.C. outage continue to surface.

Background of the Incident

The power supply disconnections by AEML were reportedly due to non-payment of electricity bills by the affected households. This action, although necessary under AEML's policies and in accordance with regulatory guidelines, has raised concerns about the impact on residents, particularly during challenging economic times when pandemic electricity shut-offs highlighted energy insecurity.

Reasons for Non-Payment

Non-payment of electricity bills can stem from various reasons, including financial hardships, disputes over billing accuracy, or unforeseen circumstances affecting household finances. In Mumbai, where the cost of living is high, utility bills constitute a significant portion of monthly expenses for many households, mirroring trends of rising electricity bills seen elsewhere.

Regulatory and Legal Framework

AEML's decision to disconnect power supply aligns with regulatory provisions governing utility services, which may include emergency disconnection moratoriums in other jurisdictions. Utility companies are mandated to enforce bill payments to maintain operational sustainability and ensure fair distribution of resources among consumers.

Consumer Impact and Response

The power disconnections have prompted reactions from affected residents and consumer advocacy groups, highlighting issues related to affordability, transparency in billing practices, and the need for supportive measures during times of economic distress amid heat-related electricity struggles that pressure vulnerable households.

Mitigation Measures

In response to such incidents, utility companies and regulatory authorities often implement mitigation measures. These may include flexible payment options, financial assistance programs for low-income households, and enhanced communication about billing procedures and payment deadlines, along with policy scrutiny such as utility spending oversight to curb unnecessary costs.

Future Considerations

As cities like Mumbai continue to grow and face challenges related to urbanization and infrastructure development, ensuring reliable and affordable access to essential services like electricity, including efforts to prevent summer power outages, remains a priority. Balancing the operational needs of utility providers with consumer welfare concerns requires ongoing dialogue and proactive measures from all stakeholders.

Conclusion

The power supply cuts by Adani Electricity in Mumbai underscore the complexities of managing utility services in urban centers. While necessary for financial viability and regulatory compliance, such actions also highlight broader issues of affordability and consumer protection. Moving forward, collaborative efforts between utility companies, regulatory authorities, and community stakeholders are essential in addressing these challenges and ensuring equitable access to essential services for all residents.

 

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China aims to reduce coal power production

China Coal-Fired Power Consolidation targets capacity cuts through mergers, SASAC-led restructuring, debt reduction, asset optimization, and retiring inefficient plants across state-owned utilities to improve efficiency, stabilize liabilities, and align with energy transition policies.

 

Key Points

A SASAC-driven plan merging utility assets to cut coal capacity, reduce debt, and retire outdated, loss-making plants.

✅ Merge five central utilities' coal assets to streamline operations

✅ Target 25-33% capacity cuts and >50% loss reduction by 2021

✅ Prioritize debt-ridden regions: Gansu, Shaanxi, Xinjiang, Qinghai, Ningxia

 

China plans to slash coal-fired power capacity at its five biggest utilities by as much as a third in two years by merging their assets, amid broader power-sector strains that reverberate globally, according to a document seen by Reuters and four sources with knowledge of the matter.

The move to shed older and less-efficient capacity is being driven by pressure to cut heavy debt levels at the utilities. China, is, however, building more coal-fired power plants and approving dozens of new mines to bolster a slowing economy, even as recent power cuts highlight grid imbalances.

The five utilities, which are controlled by the central government, accounted for around 44% of China’s total coal-fired power capacity at the end of 2018, a share likely to be tested by rising electrification goals, with electricity to meet 60% by 2060 according to industry forecasts.

“(The utilities) will strive to reduce coal-fired power capacity by one quarter to one third ...cutting total losses by more than 50% from the current level to achieve a significant decline in debt-to-asset ratios by the end of 2021,” the document said.

The plan, initiated and overseen by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), follows heavy losses at some of the utilities, amid a pandemic-era demand drop that hit industrial consumption.

Some of their coal-fired power stations have filed for bankruptcy in recent years as Beijing promotes the use of renewable energy and advances its nuclear program while opening up the state-controlled power market.

The SASAC did not immediately respond to a fax seeking comment and the sources declined to be identified as they were not authorised to speak to the media.

The utilities - China Huaneng Group Co, China Datang Corp, China Huadian Corp, State Power Investment Corp and China Energy Group - did not respond to faxes requesting comment.

Together, they had 474 coal-fired power plants with combined power generation capacity of 520 gigawatts (GW) at the end of last year.

Their coal-fired power assets came to 1.5 trillion yuan ($213 billion) while total coal-fired power liabilities were 1.1 trillion yuan, the document said.

The document was seen by two people at two of the utilities and was also verified by a source at SASAC and a government researcher.

It was not clear when the document was published but it said the merging and elimination of outdated capacity would start from 2019 and be achieved within three years, aiming to improve the efficiency and operations at the companies, reflecting a broader electricity sector mystery that policymakers are trying to resolve.

Utilities with debt-ridden operations in the northwestern regions of Gansu, Shaanxi, Xinjiang, Qinghai and Ningxia would be the first to carry out the plan, it said, even as India ration coal supplies during demand surges.

The government researcher said the SASAC has been researching possible consolidation in the coal-fired power sector since 2017, but added: “It’s easier said than done.”

“No one is willing to hand in their high quality assets and there is no point in merging the bad assets,” the government researcher said.

 

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Are major changes coming to your electric bill?

California Income-Based Electricity Rates propose a fixed monthly fee set by income as utilities and the CPUC weigh progressive pricing, aiming to cut low-income bills while PG&E, SCE, and SDG&E retain usage-based charges.

 

Key Points

CPUC plan adds income-tiered fixed fees to lower low-income bills while keeping per-kWh usage charges.

✅ Adds fixed monthly fees by income to complement per-kWh charges

✅ Cuts bills for low-income households; higher earners pay more

✅ Utilities say revenue neutral; conservation signals preserved

 

California’s electric bills — already some of the highest in the nation — are rising as electricity prices soar across the state, but regulators are debating a new plan to charge customers based on their income level. 

Typically what you pay for electricity depends on how much you use. But the state’s three largest electric utilities — Southern California Edison Company, Pacific Gas and Electric Company and San Diego Gas & Electric Company — have proposed a plan to charge customers not just for how much energy they use, but also based on their household income, moving toward income-based flat-fee utility bills over time. Their proposal is one of several state regulators received designed to accommodate a new law to make energy less costly for California’s lowest-income customers.

Some state Republican lawmakers are warning the changes could produce unintended results, such as weakening incentives to conserve electricity or raising costs for customers using solar energy, and some have introduced a plan to overturn the charges in the Legislature.

But the utility companies say the measure would reduce electricity bills for the lowest income customers. Those residents would save about $300 per year, utilities estimate.

California households earning more than $180,000 a year would end up paying an average of $500 more a year on their electricity bills, according to the proposal from utility companies. 

The California Public Utilities Commission’s deadline for deciding on the suggested changes is July 1, 2024, as regulators face calls for action from consumers and advocates. The proposals come at a time when many moderate and low-income families are being priced out of California by rising housing costs.  

Who wants to change the fee structure?
Lawmakers passed and Gov. Gavin Newsom signed a comprehensive energy bill last summer that mandates restructuring electricity pricing across the state. 

The Legislature passed the measure in a “trailer-bill” process that limited deliberation. Included in the 21,000-word law are a few sentences requiring the public utilities commission to establish a “fixed monthly fee” based on each customer’s household income. 

A similar idea was first proposed in 2021 by researchers at UC Berkeley and the nonprofit thinktank Next 10. Their main recommendation was to split utility costs into two buckets. Fixed charges, which everyone has to pay just to be connected to the energy grid, would be based on income levels. Variable charges would depend on how much electricity you use.

Utilities say that part of customers’ bills still will be based on usage, but the other portion will reduce costs for lower- and middle-income customers, who “pay a greater percentage of their income towards their electricity bill relative to higher income customers,” the utilities argued in a recent filing. 

They said the current billing system is unjust, regressive and fails to recognize differences in energy usage among households,

“When we were putting together the reform proposal, front and center in our mind were customers who live paycheck to paycheck, who struggle to pay for essentials such as energy, housing and food,” Caroline Winn, CEO of San Diego Gas & Electric in a statement. 

The utilities say in their proposal that the changes likely would not reduce or increase their revenues.

James Sallee, an associate professor at UC Berkeley, said the utilities’ prior system of billing customers mostly by measuring their electric use to pay for what are essentially fixed costs for power is inefficient and regressive. 

The proposed changes “will shift the burden, on average, to a more progressive system that recovers more from higher income households and less from lower income households,” he said.

 

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Which of the cleaner states imports dirty electricity?

Hourly Electricity Emissions Tracking maps grid balancing areas, embodied emissions, and imports/exports, revealing carbon intensity shifts across PJM, ERCOT, and California ISO, and clarifying renewable energy versus coal impacts on health and climate.

 

Key Points

An hourly method tracing generation, flows, and embodied emissions to quantify carbon intensity across US balancing areas.

✅ Hourly traces of imports/exports and generation mix

✅ Consumption-based carbon intensity by balancing area

✅ Policy insights for renewables, coal, health costs

 

In the United States, electricity generation accounts for nearly 30% of our carbon emissions. Some states have responded to that by setting aggressive renewable energy standards; others are hoping to see coal propped up even as its economics get worse. Complicating matters further is the fact that many regional grids are integrated, and as America goes electric the stakes grow, meaning power generated in one location may be exported and used in a different state entirely.

Tracking these electricity exports is critical for understanding how to lower our national carbon emissions. In addition, power from a dirty source like coal has health and environment impacts where it's produced, and the costs of these aren't always paid by the parties using the electricity. Unfortunately, getting reliable figures on how electricity is produced and where it's used is challenging, even for consumers trying to find where their electricity comes from in the first place, leaving some of the best estimates with a time resolution of only a month.

Now, three Stanford researchers—Jacques A. de Chalendar, John Taggart, and Sally M. Benson—have greatly improved on that standard, and they have managed to track power generation and use on an hourly basis. The researchers found that, of the 66 grid balancing areas within the United States, only three have carbon emissions equivalent to our national average, and they have found that imports and exports of electricity have both seasonal and daily changes. de Chalendar et al. discovered that the net results can be substantial, with imported electricity increasing California's emissions/power by 20%.

Hour by hour
To figure out the US energy trading landscape, the researchers obtained 2016 data for grid features called balancing areas. The continental US has 66 of these, providing much better spatial resolution on the data than the larger grid subdivisions. This doesn't cover everything—several balancing areas in Canada and Mexico are tied in to the US grid—and some of these balancing areas are much larger than others. The PJM grid, serving Pennsylvania, New Jersey, and Maryland, for example, is more than twice as large as Texas' ERCOT, in a state that produces and consumes the most electricity in the US.

Despite these limitations, it's possible to get hourly figures on how much electricity was generated, what was used to produce it, and whether it was used locally or exported to another balancing area. Information on the generating sources allowed the researchers to attach an emissions figure to each unit of electricity produced. Coal, for example, produces double the emissions of natural gas, which in turn produces more than an order of magnitude more carbon dioxide than the manufacturing of solar, wind, or hydro facilities. These figures were turned into what the authors call "embodied emissions" that can be traced to where they're eventually used.

Similar figures were also generated for sulfur dioxide and nitrogen oxides. Released by the burning of fossil fuels, these can both influence the global climate and produce local health problems.

Huge variation
The results were striking. "The consumption-based carbon intensity of electricity varies by almost an order of magnitude across the different regions in the US electricity system," the authors conclude. The low is the Bonneville Power grid region, which is largely supplied by hydropower; it has typical emissions below 100kg of carbon dioxide per megawatt-hour. The highest emissions come in the Ohio Valley Electric region, where emissions clear 900kg/MW-hr. Only three regional grids match the overall grid emissions intensity, although that includes the very large PJM (where capacity auction payouts recently fell), ERCOT, and Southern Co balancing areas.

Most of the low-emissions power that's exported comes from the Pacific Northwest's abundant hydropower, while the Rocky Mountains area exports electricity with the highest associated emissions. That leads to some striking asymmetries. Local generation in the hydro-rich Idaho Power Company has embodied emissions of only 71kg/MW-hr, while its imports, coming primarily from Rocky Mountain states, have a carbon content of 625kg/MW-hr.

The reliance on hydropower also makes the asymmetry seasonal. Local generation is highest in the spring as snow melts, but imports become a larger source outside this time of year. As solar and wind can also have pronounced seasonal shifts, similar changes will likely be seen as these become larger contributors to many of these regional grids. Similar things occur daily, as both demand and solar production (and, to a lesser extent, wind) have distinct daily profiles.

The Golden State
California's CISO provides another instructive case. Imports represent less than 30% of its total electric use in 2016, yet California electricity imports provided 40% of its embodied emissions. Some of these, however, come internally from California, provided by the Los Angeles Department of Water and Power. The state itself, however, has only had limited tracking of imported emissions, lumping many of its sources as "other," and has been exporting its energy policies to Western states in ways that shape regional markets.

Overall, the 2016 inventory provides a narrow picture of the US grid, as plenty of trends are rapidly changing our country's emissions profile, including the rise of renewables and the widespread adoption of efficiency measures and other utility trends in 2017 that continue to evolve. The method developed here can, however, allow for annual updates, providing us with a much better picture of trends. That could be quite valuable to track things like how the rapid rise in solar power is altering the daily production of clean power.

More significantly, it provides a basis for more informed policymaking. States that wish to promote low-emissions power can use the information here to either alter the source of their imports or to encourage the sites where they're produced to adopt more renewable power. And those states that are exporting electricity produced primarily through fossil fuels could ensure that the locations where the power is used pay a price that includes the health costs of its production.

 

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Electric Motor Testing Training covers on-line and off-line diagnostics, predictive maintenance, condition monitoring, failure analysis, and reliability practices to reduce downtime, optimize energy efficiency, and extend motor life in industrial facilities.

 

Key Points

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✅ Predictive maintenance, condition monitoring, ROI

 

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