Point Lepreau delay to cost millions

BC Hydro Rate Increase proposes a 2.3% hike from April, with BCUC review, aligning below inflation and funding clean energy, electrification, and grid upgrades across British Columbia while keeping electricity prices among North America's lowest.

Key Points

A proposed 2.3% BC Hydro hike from April, under BCUC review, funds clean energy and keeps average bills below inflation.

✅ Adds about $2 per month to average residential bill

✅ Sixth straight increase below inflation since 2018

✅ Supports renewable projects and grid modernization

The British Columbia government says the province’s Crown power utility is applying for a 2.3-per-cent rate increase starting in April, with higher BC Hydro rates previously outlined, adding about $2 a month to the average residential bill.

A statement from the Energy Ministry says it’s the sixth year in a row that BC Hydro has applied for an increase below the rate of inflation, similar to a 3 per cent rise noted in a separate approval, which still trailed inflation.

It says rates are currently 15.6 per cent lower than the cumulative rate of inflation over the last seven years, starting in 2017-2018, with a provincial rate freeze among past measures, and 12.4 per cent lower than the 10-year rates plan established by the previous government in 2013.

The ministry says the “modest” rate increase application comes after consideration of a variety of options and their long-term impacts, including scenarios like a 3.75% two-year path evaluated alongside others, and the B.C. Utilities Commission is expected to decide on the plan by the end of February.

Chris O’Riley, president of BC Hydro, says the rates application would keep electricity costs in the province among the lowest in North America, even as a BC Hydro fund surplus prompted calls for changes, while supporting investments in clean energy to power vehicles, homes and businesses.

Energy Minister Josie Osborne says it’s more important than ever to keep electricity bills down, especially as Ontario hydro rates increase in a separate jurisdiction, as the cost of living rises at rates that are unsustainable for many.

“Affordable, stable BC Hydro rates are good for people, businesses and climate as we work together to power our growing economy with renewable energy instead of fossil fuels,” Osborne says in a statement issued Monday.

Earlier this year, the ministry said BC Hydro provided $315 million in cost-of-living bill credits, while in another province Manitoba Hydro scaled back an increase to ease pressure, to families and small businesses in the province, including those who receive their electricity service from FortisBC or a municipal utility.

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Ontario Global Adjustment Deferral offers COVID-19 electricity bill relief to industrial and commercial consumers not on the RPP, aligning GA to March levels for Class A and Class B manufacturers to improve cash flow.

Key Points

A temporary GA deferral easing electricity costs for Ontario industrial and commercial users not on the RPP.

✅ Sets Class B GA at $115/MWh; Class A gets equal percentage cut.

✅ Applies April-June 2020; automatic bill adjustments and credits.

✅ Deferred charges repaid over 12 months starting January 2021.

Manufacturers welcome the Government of Ontario's decision to defer a portion of Global Adjustment (GA) charges as part of support for industrial and commercial electricity consumers that do not participate in the Regulated Price Plan.

"Manufacturers are pleased the government listened to Canadian Manufacturers & Exporters (CME) member recommendations and is taking action to reduce Ontario electricity bills immediately," said Dennis Darby, President & CEO of CME.

"The majority of manufacturers have identified cash flow as their top concern during the crisis, "added Darby. "The GA system would have caused a nearly $2 billion cost surge to Ontario manufacturers this year. This new initiative by the government is on top of the billions in support already provided to help manufacturers weather this unprecedented storm, while other provinces accelerate British Columbia's clean energy shift to drive long-term competitiveness. All these measures are a great start in helping businesses of all sizes stay afloat during the crisis and, keeping Ontarians employed."

"We call on the Ontario government to continue to consider the impact of electricity costs on the manufacturing sector, even after the COVID-19 crisis is resolved," stated Darby. "High prices are putting Ontario manufacturers at a significant competitive disadvantage and, discourages investments." A recent report from London Economics International (LEI) found that when compared to jurisdictions with similar manufacturing industries, Ontario's electricity prices can be up to 75% more expensive, underscoring the importance of planning for Toronto's growing electricity needs to maintain affordability.

To provide companies with temporary immediate relief on their electricity bills, the Ontario government is deferring a portion of Global Adjustment (GA) charges for industrial and commercial electricity consumers that do not participate in the Regulated Price Plan (RPP), starting from April 2020, as some regions saw reduced electricity demand from widespread remote work during the pandemic. The GA rate for smaller industrial and commercial consumers (i.e., Class B) has been set at $115 per megawatt-hour, which is roughly in line with the March 2020 value. Large industrial and commercial consumers (i.e., Class A) will receive the same percentage reduction in GA charges as Class B consumers.

The Ontario government intends to keep this relief in place through the end of June 2020, alongside investments like smart grid technology in Sault Ste. Marie to support reliability, subject to necessary extensions and approvals to implement this initiative.

Industrial and commercial electricity consumers will automatically see this relief reflected on their bills. Consumers who have already received their April bill should see an adjustment on a future bill.

Related initiatives include developing cyber standards for electricity sector IoT devices to strengthen system security.

The government intends to bring forward subsequent amendments that would, if approved, recover the deferred GA charges (excluding interest) from industrial and commercial electricity consumers, as Toronto prepares for a surge in electricity demand amid continued growth, over a 12-month period beginning in January 2021.

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Ontario COVID-19 Business Tax Relief outlines permanent Employer Health Tax exemptions, lower Business Education Tax rates, optional municipal property tax cuts, and hydro bill subsidies to support small businesses, industrial and commercial recovery.

Key Points

A provincial package of tax breaks and hydro subsidies to help small, industrial, and commercial businesses recover.

✅ Permanent Employer Health Tax exemption to $1M payroll

✅ Lower Business Education Tax rates for 94% of firms

✅ Hydro subsidies cut medium-large rates by 14-16%

The Ontario government's latest plan to help businesses survive and recover from the COVID-19 pandemic includes a suite of new tax breaks for small businesses and $1.3 billion to subsidize electricity bills for industrial and commercial operations.

The new measures were announced Thursday as part of Ontario's 2020 budget, which sets new provincial records for both spending and deficit projections.

The government of Premier Doug Ford says the budget will address barriers impeding long-term growth, ensuring the province forges a path to a full recovery from the pandemic.

"When the pandemic is over, Ontario will come back with a vengeance, stronger and more prosperous than ever before," Ford said at an afternoon news conference.

Small businesses with payrolls under $1 million will no longer have to pay the Employer Health Tax. The province temporarily raised the exemption from $490,000 to $1 million earlier this year, but the government is now making the change permanent.

The higher exemption means that about 90 per cent of Ontario businesses will no longer have to pay the tax, amounting to about $360 million by 2022, according to the province.

"We have heard from employers across Ontario that this measure helped them keep workers on the job during COVID-19," Finance Minister Rod Phillips told the legislature.

The 2020 budget lowers rates for the Business Education Tax (BET), a property tax earmarked for public education. More than 200,000 Ontario businesses, or 94 per cent, will see a lower rate.

"I believe this budget takes some significant initial steps to help stabilize the economy and help businesses, especially small businesses," said Toronto Mayor John Tory in a statement. Tory's office estimates that reductions to the BET will result in $117 million in lower taxes for commercial properties in Canada's largest city.

Municipal governments will also be permitted to reduce property taxes for small businesses, should they choose to do so. The province says it will "consider matching these reductions," which could amount to $385 million in tax relief by 2023.

Finance Minister Rod Phillips tabled the largest spending plan in Ontario history on Thursday afternoon. (Frank Gunn/The Canadian Press)
Municipalities currently have few options to provide targeted relief to local businesses. Guelph Mayor Cam Guthrie, chair of Ontario's Big City Mayors, said the prospect of lowering property taxes will likely be welcomed by local governments across the province.

"I really am looking forward to looking into that because it would give targeted relief to these businesses that have been asking for something from local governments for the past nine months," he said in an interview.

Tax cuts 'won't help a boarded up business,' NDP says
The 2020 budget does not contain any new direct funding for small businesses or their employees. NDP leader Andrea Horwath, who has proposed to make hydro public again, said those types of funding would help businesses more than potential tax reductions.

"A future hydro or tax cut won't help a boarded up business and it certainly won't help the folks that used to work there," Horwath said.

"Those measures are great if you're a company that's doing really well ... but let's face it, main streets across Ontario are crumbling."

Ontario did reveal on Thursday more details about a previously announced $300-million fund to support businesses in Toronto, Ottawa, Peel Region and York Region, which were placed under modified Stage 2 restrictions this fall. The money can be used to cover property taxes and energy bills for eligible businesses.

In a similar move, B.C. provided a three-month break on electricity bills for residents and businesses during the pandemic.

An undetermined amount of the $300 million will also be made available to businesses that are placed under "control" and "lockdown" rules, which are the two most severe restrictions in the province's updated reopening guidelines announced in October.

No regions are currently under these restrictions.

Elsewhere, B.C. saw commercial electricity consumption plummet during the COVID-19 pandemic.

Government to subsidize hydro bills for industrial businesses
The Ford government, which earlier oversaw a Hydro One leadership overhaul, is also taking aim at what it calls "job-killing electricity prices" in Ontario's industrial and commercial sectors.

The budget includes a $1.3 billion investment over three years to subsidize their hydro bills, a move praised by Canadian Manufacturers & Exporters as supportive of industry, which the province says have been inflated due to contracts signed by the previous Liberal government to purchase electricity generated by wind, solar and bioenergy.

"This is the legacy that is making our businesses uncompetitive," Phillips told reporters Thursday afternoon.

Ontario says its $1.3-billion investment to subsidize electricity bills will offset expensive contracts for green energy signed by the previous Liberal government. (Patrick Pleul/dpa via Associated Press)
The investment will lower rates for medium- and large-sized business by between 14 and 16 per cent, and follows an OEB decision on Hydro One rates that affects transmission and distribution costs, according to Ontario's calculations. Phillips said those rates will be among the lowest of any jurisdiction in the Great Lakes region.

The provincial government said the investment is necessary for Ontario to recover from the COVID-19 downturn. The Ford government expects that no further subsidies will be required by around 2040.

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Hydro-QuE9bec Class-Action Lawsuit alleges overbilling and monopoly abuse, citing RE9gie de l'E9nergie rate increases, Quebec Superior Court filings, and calls for refunds on 2008-2013 electricity bills to residential and business customers.

Key Points

Quebec class action alleging Hydro-QuE9bec overbilled customers in 2008-2013, seeking court-ordered refunds.

✅ Filed in Quebec Superior Court; certification pending.

✅ Alleges up to $1.2B in overcharges from 2008-2013.

✅ Questions RE9gie de l'E9nergie rate approvals and data.

A group representing Hydro-Québec customers has filed a motion for a class-action lawsuit against the public utility, alleging it overcharged customers over a five-year period.

Freddy Molima, one of the representatives of the Coalition Peuple allumé, accuses Hydro-Québec of "abusing its monopoly."

The motion, which was filed in Quebec Superior Court, claims Hydro-Québec customers paid more than they should have for electricity between 2008 and 2013, to the tune of nearly $1.2 billion, even as Hydro-Québec later refunded $535 million to customers in a separate case. 

The coalition has so far recruited nearly 40,000 participants online as part of its plan to sue the public utility.

A lawyer representing the group said Quebec's energy board, the Régie de l'énergie, also recently approved Hydro-Québec rate increases for residential and business customers without knowing all the facts, even as Manitoba Hydro hikes face opposition in regulatory hearings.

"There's certain information provided to the Régie that isn't true," said Bryan Furlong. "Hydro-Québec has not been providing the Régie the proper numbers."

In its motion, the group asks that overcharged clients be retroactively reimbursed.

Hydro-Québec denies allegations

Hydro-Québec, for its part, denies it ever overbilled any of its clients, while other utilities such as Hydro One plan to redesign bills to improve clarity.

"All our efficiencies have been returned to the government through our profits, and to Quebecers we have billed exactly what we agreed to bill," said spokesperson Serge Abergel, adding that the utility won't seek a rate hike next year according to its current plans.

Quebec Energy Minister Pierre Moreau also came to the public utility's defence, saying it has no choice but to comply with the  energy board's regulations, while customer protections are in focus as Hydro One moves to reconnect 1,400 customers in Ontario.

The group says the public utility has overbilled clients by up to $1.2 billion. (Radio-Canada)

It would be "shocking" if customers were charged too much money, he added.

"I know for a fact that Hydro-Québec is respecting the decision of this body," he said.

While the motion has been filed, the group cannot say how much each customer would receive if the class-action lawsuit goes ahead because it all depends on how much electricity was consumed by each client over that five-year period.

The coalition plans to present its motion to a judge next February.

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UK Energy Network Profits are under scrutiny as Ofgem price controls, Citizens Advice claims, and National Grid margins spark debate over monopolies, allowed returns, consumer bills, rebates, and future investment under tougher regulation.

Key Points

UK Energy Network Profits are returns set by Ofgem for regulated grid operators, shaping consumer bills and investment

✅ Ofgem sets allowed returns for monopoly networks via price controls

✅ Dispute over interest rates, bond yields, and risk premiums

✅ Reforms proposed: shorter controls, tougher investor incentives

Companies that run Britain’s electricity and gas networks, including National Grid, are making “eye-watering” profits at the expense of households, according to a well-known consumer group.

Citizens Advice believes £7.5bn in “unjustified” profits should be returned to consumers who pay for network costs via their electricity and gas bills, with parallels seen in a deferred BC Hydro costs report abroad, although its figures have been contested by the energy industry and regulator.

Ownership of electricity and gas networks came under the spotlight in the run-up to June’s general election, after the Labour party said in its manifesto it would bring both national and regional grid infrastructure to back into public ownership, amid wider debates about grid privatization concerns elsewhere, over time.

Electricity sector privatisation began in 1990 and the gas industry was privatised in 1986. Energy network companies — which own and operate the cables and wires that help deliver electricity and gas to homes and businesses — are in effect monopolies that are regulated by Ofgem. Ofgem evaluates what their costs, including the cost of capital to finance investments, might be over an eight-year “price control” period, similar to determinations like the OEB decision on Hydro One rates in Ontario, Canada. Citizens Advice claims many of the regulator’s calculations for the most recent price control went “considerably in networks’ financial favour”.

It believes assumptions Ofgem made about factors such as the future path of interest rates and returns on government bonds were too generous, with international contrasts like power theft challenges in India illustrating different risk contexts, as was the regulator’s assessment of the risk associated with operating a network company. 

These “generous” assumptions will lead to network companies making average profit margins of 19 per cent and an average return of 10 per cent for their investors at the expense of consumers, Citizens Advice claims in a report published on Wednesday, which recommends a shorter price control period to allow for more accurate forecasting.

“Decisions made by Ofgem have allowed gas and electricity network companies to make sky-high profits that we’ve found are not justified by their performance,” said Gillian Guy, chief executive of Citizens Advice. Ofgem defended its regulatory regime, saying it helped to cut costs, improve reliability and customer satisfaction. 

“Ofgem has already cut costs to consumers by 6 per cent in the current price control and secured a rebate of over £4.5bn from network companies and is engaging with the industry to deliver further savings, with some regions seeing Ontario electricity rate reductions for businesses as well,” said Dermot Nolan, chief executive of the energy regulator.

Mr Nolan insisted the next price controls would be “tougher for investors”. The current price controls for the gas and electricity transmission networks, plus gas distribution, run until 2021 and until 2023 for local electricity distribution networks.

“While we don’t agree with its modelling and the figures it has produced, the Citizens Advice report raises some important issues about network regulation which will be addressed in the next control,” Mr Nolan said.

The Energy Networks Association, a trade body, refuted the claims of Citizens Advice, insisting that costs had fallen by 17 per cent in real terms since privatisation. The current regulatory framework was established after a public consultation, it said, adding that today’s report repeated several old claims that had previously been rejected by the Competition and Markets Authority.

“Our energy networks are among the most reliable and lowest cost in the world and their performance has never been better. In the next six years energy network companies are forecasted to deliver £45bn of investment in the UK economy,” a spokesman for the networks association added. National Grid said that since 2013 it had generated savings of £460m for bill payers.

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U.S. Clean Energy Job Losses highlight COVID-19 impacts on renewable energy, solar, wind, and energy efficiency, with PPP fatigue, unemployment, and calls for Congressional stimulus, per Department of Labor data analyzed by E2.

Key Points

Pandemic-driven layoffs across renewable, solar, wind, and efficiency sectors, risking recovery without federal aid.

✅ Over 620,500 clean energy jobs lost in three months

✅ Energy efficiency, solar, and wind hit hardest nationwide

✅ Industry urges Congress for stimulus, tax credit relief

As Congress this week begins debating economic stimulus support for the energy industry, a new analysis of unemployment data shows the biggest part of America's energy economy - clean energy - lost another 27,000 jobs in May, bringing the total number of clean energy workers who have lost their jobs in the past three months to more than 620,500.

While May saw an improvement in new unemployment claims over March and April, the findings represent the sector's third straight month of significant job losses across solar, wind, energy efficiency, clean vehicles and other industries. With coronavirus cases once again rising in many states and companies beginning to run out of the Payroll Protection Program (PPP) funding that has helped small businesses keep workers employed, and as households confront pandemic power shut-offs that heighten energy insecurity, the report increases concerns the sector will be unable to resume its economy-leading jobs growth in the short- or long-term without a significant policy response.

Given the size and scope of the clean energy industry, such a sustained loss would cast a pall on the nation's overall economic recovery, as shifting electricity demand during COVID-19 complicates forecasts, according to the analysis of the Department of Labor's May unemployment data from E2 (Environmental Entrepreneurs), E4TheFuture and the American Council on Renewable Energy (ACORE).

Prior to COVID-19, clean energy - including energy efficiency, solar and wind generation, clean vehicles and related sectors - was among the U.S. economy's biggest and fastest-growing employment sectors, growing 10.4% since 2015 to nearly 3.4 million jobs at the end of 2019. That made clean energy by far the biggest employer of workers in all energy occupations, employing nearly three times as many people as the fossil fuel industry. For comparison, coal mining employs about 47,000 workers, even as clean energy projects in coal communities aim to revitalize local economies.

The latest monthly analysis for the groups by BW Research Partnership runs contrary to recent Bureau of Labor Statistics (BLS) reports, which indicated that a more robust economic rebound was underway, even as high fuel prices haven't spurred a green shift in adoption, while also acknowledging misclassifications and serious reporting difficulties in its own data.

Bob Keefe, Executive Director at E2, said:

"May's almost 30,000 clean energy jobs loss is sadly an improvement in the rate of jobs shed but make no mistake: There remains huge uncertainty and volatility ahead. It will be very tough for clean energy to make up these continuing job losses without support from Congress. Lawmakers must act now. If they do, we can get hundreds of thousands of these workers back on the job today and build a better, cleaner, more equitable economy for tomorrow. And who doesn't want that?"

Pat Stanton, Policy Director at E4TheFuture, said:

"Most of the time, energy efficiency workers need to go inside homes, businesses and other buildings to get the job done. Since they couldn't do that during COVID lockdowns, they couldn't work. Now states are opening up. But utilities, contractors and building owners need to protect employees and occupants from possible exposure to the virus and need more clarity about potential liabilities."

Gregory Wetstone, President and CEO of ACORE, said:

"In May, we saw thousands of additional renewable energy workers join the ranks of the unemployed, further underscoring the damage COVID-19 is inflicting on our workforce. Since the pandemic began, nearly 100,000 renewable energy workers have lost their jobs. We need help from Congress to get American clean energy workers back to work. With commonsense measures like temporary refundability and a delay in the phasedown of renewable energy tax credits, Congress can help restore these good-paying jobs so the renewable sector can continue to provide the affordable, pollution-free power American consumers and businesses want and deserve."

Phil Jordan, Vice President and Principal at BW Research Partnership, said:

"We understand the challenges and limitations of data collection for BLS in the middle of a global pandemic. But any suggestion that a strong employment rebound is underway in the United States simply is not reflected in the clean energy sector right now. And with PPP expiring, that only increases uncertainty in the months ahead."

The report comes as both the Senate Committee on Energy and Natural Resources and the House Energy and Commerce Committee are considering clean energy stimulus to restart the U.S. economy, and amid assessments of mixed results from the climate law shaping expectations, and as lawmakers in both the House and Senate are increasing calls for supporting clean energy workers and businesses, including this bicameral letter signed by 57 members of Congress and another signed today by 180 House members.

Industries Hit Hardest

According to the analysis, energy efficiency lost more jobs than any other clean energy sector for the third consecutive month in May, shedding about 18,900 jobs. These workers include electricians, HVAC technicians who work with high-efficiency systems, and manufacturing employees who make Energy Star appliances, LED lighting systems and efficient building materials.

Renewable energy, including solar and wind, lost nearly 4,300 jobs in May.

Clean grid and storage and clean vehicles manufacturing -- including grid modernization, energy storage, car charging and electric and plug-in hybrid vehicle manufacturing -- lost a combined 3,200 jobs in May, as energy crisis impacts electricity, gas, and EVs in several ways.

The clean fuels sector lost more than 650 jobs in May.

States and Localities Hit Across Country

California continues to be the hardest hit state in terms of total job losses, losing 4,313 jobs in May and more than 109,700 since the COVID-19 crisis began. Florida was the second hardest hit state in May, losing an additional 2,563 clean energy jobs, while Georgia, Texas, Washington, and Michigan all suffered more than 1,000 job losses across the sector. An additional 12 states saw at least 500 clean energy unemployment filings, and reports like Pennsylvania's clean energy jobs analysis provide added context, according to the latest analysis.

For a full breakdown of clean energy job losses in each state, along with a list of the hardest hit counties and metro areas, see the full analysis here.

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