Newfoundland announces new net metering policy framework

100% Clean Energy Targets drive renewable electricity, decarbonization, and cost savings through state policies, CCAs, RECs, and mandates, with timelines and interim goals that boost jobs, resilience, and public health across cities, counties, and utilities.

Key Points

Policies for cities and states to reach 100% clean power by set dates, using mandates, RECs, and interim goals.

✅ Define eligible clean vs renewable resources

✅ Mandate vs goal framework with enforcement

✅ Timelines with interim targets and escape clauses

“An enormous amount of authority still rests with the states for determining your energy future. So we can build these policies that will become a postcard from the future for the rest of the country,” said David Hochschild, chair of the California Energy Commission, speaking last week at a UCLA summit on state and local progress toward 100 percent clean energy.

According to a new report from the UCLA Luskin Center for Innovation, 13 states, districts and territories, as well as more than 200 cities and counties, with standout clean energy purchases by Southeast cities helping drive momentum, have committed to a 100 percent clean electricity target — and dozens of cities have already hit it.

This means that one of every three Americans, or roughly 111 million U.S. residents representing 34 percent of the population, live in a community that has committed to or has already achieved 100 percent clean electricity, including communities like Frisco, Colorado that have set ambitious targets.

“We’re going to look back on this moment as the moment when local action and state commitments began to push the entire nation toward this goal,” said J.R. DeShazo, director of the UCLA Luskin Center for Innovation.

Not all 100 percent targets are alike, however. The report notes that these targets vary based on 1) what resources are eligible, 2) how binding the 100 percent target is, and 3) how and when the target will be achieved.

These distinctions will carry a lot of weight as the policy discussion shifts from setting goals to actually meeting targets. They also have implications for communities in terms of health benefits, cost savings and employment opportunities.

100% targets come in different forms

One key attribute is whether a target is based on "renewable" or "clean" energy resources. Some 100 percent targets, like Hawaii’s and Rhode Island’s 2030 plan, are focused exclusively on renewable energy, or sources that cannot be depleted, such as wind, solar and geothermal. But most jurisdictions use the broader term “clean energy,” which can also include resources like large hydroelectric generation and nuclear power.

States also vary in their treatment of renewable energy certificates, used to track and assign ownership to renewable energy generation and use. Unbundled RECs allow for the environmental attributes of the renewable energy resource to be purchased separately from the physical electricity delivery.

The binding nature of these targets is also noteworthy. Seven states, as well as Puerto Rico and the District of Columbia, have passed 100 percent clean energy transition laws. Of the jurisdictions that have passed 100 percent legislation, all but one specifies that the target is a “mandate,” according to the report. Nevada is the only state to call the target a “goal.”

Governors in four other states have signed executive orders with 100 percent clean energy goals.

Target timelines also vary. Washington, D.C. has set the most ambitious target date, with a mandate to achieve 100 percent renewable electricity by 2032. Other states and cities have set deadline years between 2040 and 2050. All "100 percent" state laws, and some city and county policies, also include interim targets to keep clean energy deployment on track.

In addition, some locations have included some form of escape clause. For instance, Salt Lake City, which last month passed a resolution establishing a goal of powering the county with 100 percent clean electricity by 2030, included “exit strategies” in its policy in order to encourage stakeholder buy-in, said Mayor Jackie Biskupski, speaking last week at the UCLA summit.

“We don’t think they’ll get used, but they’re there,” she said.

Other locales, meanwhile, have decided to go well beyond 100 percent clean electricity. The State of California and 44 cities have set even more challenging targets to also transition their entire transportation, heating and cooling sectors to 100 percent clean energy sources, and proposals like requiring solar panels on new buildings underscore how policy can accelerate progress across sectors.

Businesses are simultaneously electing to adopt more clean and renewable energy. Six utilities across the United States have set their own 100 percent clean or carbon-free electricity targets. UCLA researchers did not include populations served by these utilities in their analysis of locations with state and city 100 percent clean commitments.

“We cannot wait”

All state and local policies that require a certain share of electricity to come from renewable energy resources have contributed to more efficient project development and financing mechanisms, which have supported continued technology cost declines and contributed to a near doubling of renewable energy generation since 2008.

Many communities are switching to clean energy in order to save money, now that the cost calculation is increasingly in favor of renewables over fossil fuels, as more jurisdictions get on the road to 100% renewables worldwide. Additional benefits include local job creation, cleaner air and electricity system resilience due to greater reliance on local energy resources.

Another major motivator is climate change. The electricity sector is responsible for 28 percent of U.S. greenhouse gas emissions, second only to transportation. Decarbonizing the grid also helps to clean up the transportation sector as more vehicles move to electricity as their fuel source.

“The now-constant threat of wildfires, droughts, severe storms and habitat loss driven by climate change signals a crisis we can no longer ignore,” said Carla Peterman, senior vice president of regulatory affairs at investor-owned utility Southern California Edison. “We cannot wait and we should not wait when there are viable solutions to pursue now.”

Prior to joining SCE on October 1, Peterman served as a member of the California Public Utilities Commission, which implements and administers renewable portfolio standard (RPS) compliance rules for California’s retail sellers of electricity. California’s target requires 60 percent of the state’s electricity to come from renewable energy resources by 2030, and all the state's electricity to come from carbon-free resources by 2045.  

How CCAs are driving renewable energy deployment

One way California communities are working to meet the state’s ambitious targets is through community-choice aggregation, especially after California's near-100% renewable milestone underscored what's possible, via which cities and counties can take control of their energy procurement decisions to suit their preferences. Investor-owned utilities no longer purchase energy for these jurisdictions, but they continue to operate the transmission and distribution grid for all electricity users.                           

A second paper released by the Luskin Center for Innovation in recent days examines how community-choice aggregators are affecting levels of renewable energy deployment in California and contributing to the state’s 100 percent target.

The paper finds that 19 CCAs have launched in California since 2010, growing to include more than 160 towns, cities and counties. Of those communities, 64 have a 100 percent renewable or clean energy policy as their default energy program.

Because of these policies, the UCLA paper finds that “CCAs have had both direct and indirect effects that have led to increases in the clean energy sold in excess of the state’s RPS.”

From 2011 to 2018, CCAs directly procured 24 terawatt-hours of RPS-eligible electricity, 11 TWh of which have been voluntary or in excess of RPS compliance, according to the paper.

The formation of CCAs has also had an indirect effect on investor-owned utilities. As customers have left investor-owned utilities to join CCAs, the utilities have been left holding contracts for more renewable energy than they need to comply with California’s clean energy targets, amid rising solar and wind curtailments that complicate procurement decisions. UCLA researchers estimate that this indirect effect of CCA formation has left IOUs holding 13 terawatt-hours in excess of RPS requirements.

The paper concludes that CCAs have helped to accelerate California’s ability to meet state renewable energy targets over the past decade. However, the future contributions of CCAs to the RPS are more uncertain as communities make new power-purchasing decisions and utilities seek to reduce their excess renewable energy contracts.

“CCAs offer a way for communities to put their desire for clean energy into action. They're growing fast in California, one of only eight states where this kind of mechanism is allowed," said UCLA's Kelly Trumbull, an author of the report. "State and federal policies could be reformed to better enable communities to meet local demand for renewable energy.”

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Energy Poverty in Extreme Heat exposes vulnerable households to heatwaves, utility shutoffs, and unreliable grid infrastructure, straining public health. Community nonprofits, cooling centers, and policy reform aim to improve electricity access, resilience, and affordable energy.

Key Points

Without reliable, affordable power in heatwaves, health risks rise and cooling, food storage, and daily needs suffer.

✅ Risks: heat illness, dehydration, and indoor temperatures above 90F

✅ Causes: utility shutoffs, aging grid, unpaid bills, remote areas

✅ Relief: cooling centers, aid programs, weatherization, bill credits

In a particular pocket of America, approximately 13,000 families endure the dual challenges of sweltering heat and living without electricity, and the broader risk of summer shut-offs highlights how widespread these pressures have become across the country. This article examines the factors contributing to their plight, the impact of living without electricity during hot weather, and efforts to alleviate these hardships.

Challenges Faced by Families

For these 13,000 families, daily life is significantly impacted by the absence of electricity, especially during the scorching summer months. Without access to cooling systems such as air conditioners or fans, residents are exposed to dangerously high temperatures, which can lead to heat-related illnesses and discomfort, particularly among vulnerable populations such as children, the elderly, and individuals with health conditions, where electricity's role in public health became especially evident.

Causes of Electricity Shortages

The reasons behind the electricity shortages vary. In some cases, it may be due to economic challenges that prevent families from paying utility bills, resulting in disconnections. Other factors include outdated or unreliable electrical infrastructure in underserved communities, as reflected in a recent grid vulnerability report that underscores systemic risks, where maintenance and upgrades are often insufficient to meet growing demand.

Impact of Extreme Heat

During heatwaves, the lack of electricity exacerbates health risks and quality of life issues for affected families, aligning with reports of more frequent outages across the U.S. Furthermore, the absence of refrigeration and cooking facilities can compromise food safety and nutritional intake, further impacting household well-being.

Community Support and Resilience

Despite these challenges, communities and organizations often rally to support families living without electricity. Local nonprofits, community centers, and government agencies provide assistance such as distributing fans, organizing cooling centers, and delivering essentials like bottled water and non-perishable food items during heatwaves to alleviate immediate hardships and improve summer blackout preparedness in vulnerable neighborhoods.

Long-term Solutions

Addressing electricity access issues requires comprehensive, long-term solutions. These may include policy reforms to ensure equitable access to affordable energy, investments in upgrading infrastructure in underserved areas, and expanding financial assistance programs to help families maintain uninterrupted electricity service, in recognition that climate change risks increasingly stress the grid.

Advocacy and Awareness

Advocacy efforts play a crucial role in raising awareness about the challenges faced by families living without electricity and advocating for sustainable solutions. By highlighting these issues, community leaders, activists, and policymakers can work together to drive policy changes, secure funding for infrastructure improvements, and promote energy efficiency initiatives, drawing lessons from Canada's harsh-weather grid exposures that illustrate regional vulnerabilities.

Building Resilience

Building resilience in vulnerable communities involves not only improving access to reliable electricity but also enhancing preparedness for extreme weather events. This includes developing emergency response plans, educating residents about heat safety measures, and fostering community partnerships to support those in need during crises.

Conclusion

As temperatures rise and climate impacts intensify, addressing the plight of families living without electricity becomes increasingly urgent. By prioritizing equitable access to energy, investing in resilient infrastructure, and fostering community resilience, stakeholders can work towards ensuring that all families have access to essential services, even during the hottest months of the year. Collaborative efforts between government, nonprofit organizations, and community members are essential in creating sustainable solutions that improve quality of life and promote health and well-being for all residents.

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Cold-Climate Heat Pumps deliver efficient heating and cooling for Northern B.C. Net Zero Ready homes, with air-source Mitsubishi H2i systems, triple-pane windows, blower door ACH 0.8, BC Hydro rebates, and CleanBC incentives.

Key Points

Electric air-source systems that heat and cool in subzero climates, cutting emissions and lowering energy costs.

✅ Net Zero Ready, Step Code 5, ACH 0.8 airtightness

✅ Operate efficiently to about -28 C with backup heat

✅ Eligible for BC Hydro and CleanBC rebates

Heat pump provides heating, cooling in northern B.C. home
It's a tradition at Vanderhoof-based Northern Homecraft that, on the day of the blower door test for a just-completed home, everyone who worked on the build gathers to watch it happen. And in the spring of 2021, on a dazzling piece of land overlooking the mouth of the Stuart River near Fort St. James, that day was a cause for celebration.

A new 3,400-square foot home subjected to the blower door test – a diagnostic tool to determine how much air is entering or escaping from a home – was rated as having just .8 air changes per hour (ACH). That helps make it a Net Zero Ready home, and BC Energy Code Step 5 compliant. That means it would take about a third of the amount of energy to heat the home compared to a typical similar-sized home in B.C. today.

From an energy-efficiency perspective, this is a home whose evident beauty is anything but skin deep.

"The home has lot of square footage of finished living space, and it also has a lot of glazing," says Northern Homecraft owner Shay Bulmer, referring to the home's large windows. "We had a lot of window space to deal with, as well as large vaulted open areas where you can only achieve so much additional insulation. There were a few things that the home had going against it as far as performance goes. There were challenges in keeping it comfortable year-round."

Well-insulated home ideal for heat pump option
Most homes in colder areas of B.C. lean on gas-fueled heating systems to deal with the often long, chilly winters. But with the arrival of cold climate heat pumps capable of providing heat efficiently when temperatures dip as low as -30°C, there's now a clean option for those homes, and using more electricity for heat is gaining support in the North as well.

Heat pumps are an increasingly popular option, both for new and existing homes, because they avoid carbon emissions associated with fossil use while also offering summer cooling, even as record-high electricity demand in Yukon underscores the need for efficient systems.

The Fort St. James home, which was built with premium insulation, airtightness and energy efficiency in mind, made the decision to opt for a heat pump even easier. Still, the heat pump option took the home's owners Dexter and Cheryl Hodder by surprise. While their focus was on designing a home that took full advantage of views down to the river, the couple was under the distinct impression that heat pumps couldn't cut it in the chilly north.

"I wasn't really considering a heat pump, which I thought was only a good solution in a moderate climate," says Dexter, who as director of research and education for the John Prince Research Forest, studies wildlife and forestry interactions in north central B.C. "The specs on the heat pump indicate it would work down to -28°C, and I was skeptical of that. But it worked exactly to spec. It almost seems ridiculous to generate heat from outside air at those low temperatures, but it does."

Getting it right with support and rebates
Northern Homecraft took advantage of BC Hydro's Mechanical System Design Pilot program to ensure proper heat pump system design, installation, and verification for the home were applied, and with BC Hydro's first call for power in 15 years driven by electrification, the team prioritized efficient load management.

Based on the home's specific location, size, and performance targets, they installed a ducted Mitsubishi H2I air-source heat pump system. Windows are triple pane, double coated, and a central feature of the home, while insulation specifications were R-40 deep frame insulation in the exterior walls, R-80 insulation in the attic, and R-40 insulation in the vaulted ceilings.

The combination of the year-round benefits of heat pumps, their role in reducing fossil fuel emissions, and the availability of rebates, is making the systems increasingly attractive in B.C., especially as two new BC generating stations were recently commissioned to expand clean supply.

BC Hydro offers home renovation rebates of up to $10,000 for energy-efficient upgrades to existing homes. Rebates are available for windows and doors, insulation, heat pumps, and heat pump hot water heaters. In partnership with CleanBC, rebates of up to $11,000 are also available – when combined with the federal Greener Homes program – for those switching from fossil fuel heating to an electric heat pump.

'Heat dome' pushes summer highs to 40°C
Cooling wasn't really a consideration for Dexter and Cheryl when they were living in a smaller bungalow shaded by trees. But they knew that with the big windows, vaulted ceiling in the living room, and an upstairs bedroom in the new home, there may come a time when they needed air conditioning.

That day arrived shortly after the home was built, as the infamous "heat dome" settled on B.C. and drove temperatures at Fort St. James to a dizzying 40°C.

"It was disgustingly hot, and I don't care if I never see that again here," says Hodder, with a laugh. "But the heat pump maintained the house really nicely throughout, at about 22 degrees. The whole house stayed cool. We just had to close the door to the upper bedroom so it wasn't really heating up during the day."

Hodder says he had to work with the heat pump manufacturer Mitsubishi a couple times over that first year to fix a few issues with the system's controls. But he's confident that the building's tight and well-insulated envelope, and the heat pump's backup electric heat that kicks in when temperatures dip below -28°C, will make it the system-for-all-seasons it was designed to be.

Even with the use of supplemental electric heating during the record chill of December-January, the home's energy costs weren't much higher than the mid-winter energy bills they used to pay in the couple's smaller bungalow that relied on a combination of gas-fired in-floor heating and electric baseboards, as gas-for-electricity swaps are being explored elsewhere.

Fort St. James is a former fur trading post located northwest of Prince George and a short drive north of Vanderhoof. Winters are cold and snowy, with average daily low temperatures in December and January of around -14°C.

"During the summer and into the fall, we were paying well less than $100 a month," says Hodder, looking back at electricity bills over the first year in the home. "And that's everything. We're only electric here, and we also had both of us working from home all last year."

Word of mouth making heat pumps popular in Fort St. James
While the size of the home presented new challenges for the builders, it's one of five Net Zero Ready or Net Zero homes – all equipped with some form of heat pump – that Northern Homecraft has built in Fort St. James, even as debates about going nuclear for electricity continue in B.C.

The smallest of the homes is a two-bedroom, one-bathroom home that's just under 900 square feet. Northern Homecraft may be based in Vanderhoof, but it's the much smaller town of Fort St. James where they're making their mark with super-efficient homes. Net Zero Ready homes are up to 80% more efficient than the standard building code, and become Net Zero once renewable energy generation – usually in the form of photovoltaic solar – is installed, and programs like switching 5,000 homes to geothermal show the broader momentum for clean heating.

"We were pretty proud that the first home we built in Fort St. James was the first single family Net Zero Ready home built in B.C.," says Northern Homecraft's Bulmer. "And I think it's kind of caught on in a smaller community where everyone talks to everyone."

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Alberta Coal Phase-Out signals a clean energy transition, replacing coal with natural gas and renewables, cutting greenhouse gas emissions, leveraging a carbon levy, and supporting workers in Alberta's evolving electricity market.

Key Points

Alberta Coal Phase-Out moves power from coal to lower-emission natural gas and renewables to reduce grid emissions.

✅ Last coal plant closed: Genesee Generating Station, Sept 30, 2023

✅ Shift to natural gas and renewables lowers emissions

✅ Carbon levy and incentives accelerated clean power build-out

The closure of the Genesee Generating Station on September 30, 2023, marked a significant milestone in Alberta's energy history, as the province moved to retire coal power by 2023 ahead of its 2030 provincial deadline. The Genesee, located near Calgary, was the province's last remaining coal-fired power plant. Its closure represents the culmination of a multi-year effort to transition Alberta's electricity sector away from coal and towards cleaner sources of energy.

For decades, coal was the backbone of Alberta's electricity grid. Coal-fired plants were reliable and relatively inexpensive to operate. However, coal also has a significant environmental impact. The burning of coal releases greenhouse gases, including carbon dioxide, a major contributor to climate change. Coal plants also produce air pollutants such as sulfur dioxide and nitrogen oxide, which can cause respiratory problems and acid rain, and in some regions electricity is projected to get dirtier as gas use expands.

In recognition of these environmental concerns, the Alberta government began to develop plans to phase out coal-fired power generation in the early 2000s. The government implemented a number of policies to encourage the shift from coal to cleaner energy such as natural gas and renewable energy. These policies included providing financial incentives for the construction of new natural gas plants and renewable energy facilities, as well as imposing a carbon levy on coal-fired generation.

The phase-out of coal was also driven by economic factors. The cost of natural gas has declined significantly in recent years, making it a more competitive fuel source for electricity generation as producers switch to gas under evolving market conditions. Additionally, the Alberta government faced increasing pressure from the federal government to reduce greenhouse gas emissions.

The transition away from coal has not been without its challenges. Coal mining and coal-fired power generation have long been important parts of Alberta's economy. The closure of coal plants has resulted in job losses in the affected communities. The government has implemented programs to help workers transition to new jobs in the clean energy sector.

Despite these challenges, the closure of the Genesee Generating Station is a positive development for Alberta's environment and climate. Coal-fired power generation is one of the largest sources of greenhouse gas emissions in Alberta, and recent wind generation outpacing coal underscores the sector's transformation. The closure of the Genesee is expected to result in a significant reduction in emissions, helping Alberta to meet its climate change targets.

The transition away from coal also presents opportunities for Alberta. The province has vast natural gas resources, which can be used to generate electricity with lower emissions than coal. Alberta is also well-positioned to develop renewable energy sources, such as wind power and solar power. These renewable energy sources can help to further reduce emissions and create new jobs in the clean energy sector.

The closure of the Genesee Generating Station is a significant milestone in Alberta's energy history. It represents the end of an era for coal-fired power generation in the province, a shift mirrored by the UK's last coal station going offline earlier this year. However, it also marks the beginning of a new era for Alberta's energy sector. By transitioning to cleaner sources of energy, Alberta can reduce its environmental impact and create a more sustainable energy future.

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Ontario Global Adjustment and ICI balance hydro rates, renewable cost shift, and peak demand. Class A and Class B customers face demand response decisions amid pandemic occupancy uncertainty and volatile GA charges through 2022.

Key Points

A pricing model where GA costs and ICI peak allocation shape Class A/B bills, driven by renewables cost shifts.

✅ Renewable cost shift trims GA; larger Class A savings expected.

✅ Class A peak strategy returns; occupancy uncertainty persists.

✅ Class B faces volatile GA; limited levers beyond efficiency.

Ontario’s large commercial electricity customers can approach the looming annual decision about their billing structure for the 12 months beginning July 1 with the assurance of long-term relief on a portion of their costs, amid changes coming for electricity consumers that could affect planning. That’s to be weighed against uncertainties around energy demand and whether a locked-in cost allocation formula that looked favourable in pre-pandemic times will remain so until June 30, 2022.

“The biggest unknown is we just don’t know when the people are coming back,” Jon Douglas, director of sustainability with Menkes Property Management Services, reflected during a webinar sponsored by the Building Owners and Managers Association (BOMA) of Greater Toronto last week. “The occupancy in our office buildings this fall, and going into the new year, could really impact the outcome of the decision.”

After a year of operational upheaval and more modifications to provincial electricity pricing policies, BOMA Toronto’s regularly scheduled workshop ahead of the June 15 deadline for eligible customers to opt into the Industrial Conservation Initiative (ICI) program had a lot of ground to cover. Notably, beginning in January, all commercial customers have seen a reduction in the global adjustment (GA) component of their monthly hydro bills after the Ontario government shifted costs associated with contracted non-hydroelectric renewable supply to reduce the burden on industrial ratepayers from electricity rates to the general provincial account — a move that trims approximately $258 million per month from the total GA charged to industrial and commercial customers. However, they won’t garner the full benefit of that until 2022 since they’re currently repaying about $333 million in GA costs that were deferred in April, May and June of 2020.

Renewable cost shift pares the global adjustment
For now, Ontario government officials estimate the renewable cost shift equates to a 12 per cent discount relative to 2020 prices, even as typical bills may rise about 2% as fixed pricing ends in some cases. Once last year’s GA deferral is repaid at the end of 2021, they project the average Class A customer participating in the ICI program should realize a 16 per cent saving on the total hydro bill, while Class B customers paying the GA on a volumetric per kilowatt-hour (kWh) basis will see a slightly more moderate 15 per cent decrease.

“This is the biggest change to electricity pricing that’s happened since the introduction of ICI,” Tim Christie, director of electricity policy, economics and system planning for Ontario’s Ministry of Energy, Northern Development and Mines, told online workshop attendees. “The government is funding the out-of-market costs of renewables. It does tail off into the 2030s as those contracts (for wind, solar and biomass generation) expire, but over the next eight-ish years, it’s pretty steady at around just over $3 billion per year.”

Extrapolating from 2020 costs, he pegged average electricity costs at roughly 9.1 cents/kWh for Class A commercial customers and 13.2 cents/kWh for Class B, a point of concern for Ontario manufacturers facing high rates as well. However, energy management specialists suggest actual 2021 numbers haven’t proved that out.

“In commercial buildings, we’re averaging 10 to 12 cents for Class A in 2021, and we’re seeing more than that for about 14, 15 cents for Class B,” reported Scott Rouse, managing partner with the consulting firm, Energy@Work.

GA costs for Class B customers dropped nearly 30 per cent in the first four months of 2021 compared to the last four months of 2020, when they averaged 11.8 cents/kWh. Thus far, though, there have been significant month-to-month fluctuations, with a low of 5.04 cents/kWh in February and a high of 10.9 cents/kWh in April contributing to the four-month average of 8.3 cents/kWh.

“In 2020, system-wide GA very often averaged more than $1 billion per month,” Rouse said. “This February it dropped to $500 million, which was really quite surprising. So it is a very volatile cost.”

Although welcome, the renewable cost shift does alter the payback on energy-saving investments, particularly for demand response mechanisms like energy storage. When combined with pandemic-related uncertainty and a series of policy and program reversals alongside calls to clean up Ontario’s hydro policy in recent years, the industry’s appetite for some more capital-intensive technologies appears to be flagging.

“Volatility puts a pause on some of the innovation,” said Terry Flynn, general manager with BentallGreenOak and chair of BOMA Toronto’s energy committee. “It could be a leading edge, but it might be a bleeding edge that won’t bear any fruit because the way the commodity costs are structured will change.”

“There’s kind of a wait-and-see approach on some of these bigger investments,” Douglas concurred.

Industrial Conservation Initiative underpins commercial class divide
Turning to the ICI, Class A customers — defined as those with average monthly energy demand of at least 1 megawatt (MW) — encountered some unexpected changes to the program rules during 2020. Meanwhile, Class B customers — encompassing the vast share of commercial properties smaller than about 350,000 square feet — confront the persistent reality of electricity cost allocation that offloads the burden from larger players onto them.

Through the ICI, participating Class A customers pay a share of the global adjustment that’s prorated to their energy use during the five hours of the period from May 1 to April 30 when the highest overall system demand is recorded. This gives Class A customers the opportunity to lock in a favourable factor for calculating their share of monthly system-wide global adjustment costs if they can successful project and curtail energy loads during those five hours of peak demand. On the flipside, Class B customers pay the remainder of those system-wide costs, on a straightforward per-kWh basis, once Class A payments have been reconciled.

“Class B has sometimes been regarded as the forgotten middle child of the customer classes in Ontario where all the shifted costs in the system kind of pile up,” acknowledged Mark Olsheski, vice president, energy and environment, with Sussex Strategy Group. “Likewise, there can be big unpredictable and uncontrollable swings in the global adjustment rate from month to month and, outside of pure energy efficiency, there really is precious little opportunity or empowerment for a Class B customer to take actions to lower their bills.”

Nevertheless, COVID-19 presents a few extra hiccups for Class A customers this year. Conventionally, late May is when they receive notification of the cost allocation factor that would be used to determine their GA for the upcoming July 1 to June 30 period. This year, though, all current ICI participants will retain the factor they secured by responding to the five hours of peak demand during the 12 months from May 1, 2019 to April 30, 2020 after the Ontario government placed a temporary halt on the peak demand response aspect of the program last summer. Regardless, eligible ICI participants must formally opt into the program by June 15 or they will be billed as Class B customers.

Peak chasing resumes for summer 2021
Since peak demand hours conventionally occur from June to September, Class A customers will once again be studying forecasts intently and preparing to respond via Peak Perks as the heat wave season sets in. That should help alleviate some of the system stresses that arose last summer — prompting policy-makers to reject lobbying for a continued pause on peak demand response.

“The policy rationale was to allow consumers to focus on their operations when recovering from COVID as opposed to reducing peaks. The other issue was that we did not expect the peaks to be high last summer given COVID shutdowns,” Christie recounted. “But due to some hot weather, more people at home and also the lack of ICI response, we saw peaks we haven’t seen in many, many years come up last summer. So the peak hiatus has ended and this summer we’ll be back to responding to ICI as per normal.”

Among Class A customers, owners/managers of office and retail facilities generally have the most to lose from a billing formula tied to the energy demand of more densely occupied buildings in the summer of 2019. However, they could be much more competitively positioned for 2022-23 if their buildings remain below full occupancy and energy demand stays lower than usual this summer.

“Where we can improve is the IESO (Independent Electricity System Operator) and the LDCs (local distribution companies) need to help customers get their real-time data, especially in light of the phantom demand issue, interpret their bills and their Class A versus B scenarios much more easily and comprehensively,” urged Lee Hodgkinson, vice president, technical services, sustainability and ESG, with Dream Unlimited. “ I look for APIs (application programming interface) and direct data flow from the LDCs to the building owners so that we can access that data really easily.”

Given Class A’s historic advantages, few eligible ICI participants are expected to migrate out to Class B. From a sustainability perspective, there’s perhaps more cause to question how the ICI’s 1-MW threshold encourages strategies to move in the other direction.

“You could jack up demand in some buildings and get them into Class A basically by firing up the chillers on the weekend and then pouring cooling outside to get rid of it,” Douglas noted. “That has nothing to do with climate change strategy or sustainability, but it’s a cost- saving strategy, and, sometimes, when you look at the math, it’s hundreds of thousands of dollars you can save.”

Brian Hewson, vice president, consumer protection and industry performance with the Ontario Energy Board (OEB), confirmed the OEB is currently scrutinizing the discrepancy that leaves Class B as the only consumer group with no flexibility to curtail energy load during higher-priced periods, and will be providing advice to the Ministry of Energy. In the interim, that status does, at least, simplify tactics.

“Just reduce your kWh and it doesn’t matter what time of day because you’re paying that fixed rate for 24 hours a day. So if you can curb your demand at night, you get a big bang for your dollar,” Rouse advised.

“We do talk about rates a lot, but if you’re not using it, you’re not paying for it,” Flynn agreed. “A lot of our focus is still on really to try to reduce the number of kilowatts that we use. That seems to be the best thing to do.”

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British Columbia electricity rate increase will raise BC Hydro bills 3.75% over 2025-2026 to fund infrastructure, Site C, and clean energy, balancing affordability, reliability, and energy security while keeping prices below the North American average.

Key Points

BC will raise BC Hydro rates 3.75% in 2025-2026, about $3.75/month, to fund grid upgrades, Site C, and clean energy.

✅ 3.75% over 2025-2026; about $3.75/month on $100 average bill

✅ Funds Site C, grid maintenance, and clean energy capacity

✅ Keeps BC Hydro rates below North American averages

British Columbia's electricity rates will experience a 3.75% increase over the next two years, following an earlier 3% rate increase approval that set the stage, as confirmed by the provincial government on March 17, 2025. The announcement was made by Minister of Energy and Climate Solutions, Adrian Dix, who emphasized the decision's necessity for maintaining BC Hydro’s infrastructure while balancing affordability for residents.

For most households, the increase will amount to an additional $3.75 per month, based on an average BC Hydro bill of $100, though some coverage framed an earlier phase as a BC Hydro $2/month proposal that later evolved. While this may seem modest, the increase reflects a broader strategy to stabilize the utility's rates amidst economic challenges and ensure long-term energy security for the province.

Reasons Behind the Rate Hike

The rate increase comes during a period of rising costs in both global markets and local economies. According to Dix, the economic uncertainty stemming from trade dynamics and inflation has forced the government to act. Despite these pressures, and after a prior B.C. rate freeze to moderate impacts, the increase remains below cumulative inflation over the last several years, a move designed to shield consumers from the full force of these economic changes.

Dix also noted that, when adjusted for inflation, electricity rates in British Columbia in 2025 are effectively at the same price they were four decades ago. This stability, he argued, underscores the provincial government’s commitment to keeping rates as low as possible for residents, even as operating costs rise.

“We must take urgent action to protect British Columbians from the uncertainty posed by rising costs while building a strong, resilient electricity system for the long-term benefit of B.C.’s energy independence,” Dix said. He also highlighted the government's approach to minimizing the financial burden on consumers by keeping electricity costs well below the North American average.

Infrastructure and Maintenance Costs

The primary justification for the rate increase is to allow BC Hydro to continue its critical infrastructure development, including the Site C hydroelectric project, which is expected to become operational in the coming years. The increased costs of maintaining and upgrading the province's electricity grid also contribute to the need for higher rates.

The Site C project, a massive hydroelectric dam under construction on the Peace River, is expected to provide a substantial increase in clean, renewable energy capacity. However, such large-scale projects require significant investment and maintenance, both of which have contributed to the increased operating costs for BC Hydro.

A Strategic Move for Rate Stability

The provincial government has been clear that the rate increase will allow for a continuation of infrastructure development while keeping the rates manageable for consumers. The 3.75% increase will be spread across two years, with the first hike scheduled for April 1, 2025, reflecting the typical April rate changes BC Hydro implements, and the second for April 1, 2026.

Dix confirmed that the rate hike would still keep electricity costs among the lowest in North America, noting that British Columbians pay about half of what residents in Alberta pay for electricity. This is part of a broader effort by the provincial government to provide stable energy pricing while bolstering the transition to clean energy solutions, such as the Site C project and other renewable energy initiatives.

Addressing Public Concerns

Although the government has framed the increase as a necessary measure to ensure the province's long-term energy independence and reliability, the rate hikes are likely to face scrutiny from residents, particularly those already struggling with the rising cost of living, even as provinces like Ontario face their own Ontario hydro rate increase pressures this fall.

Public reactions to utility rate increases are often contentious, as residents feel the pressure of rising prices across various sectors, from housing to healthcare. However, the government has promised that the new rates will remain manageable, especially considering the relatively low rate increases compared to inflation and other regions where Manitoba Hydro scaled back a planned increase to temper impacts.

Furthermore, the increase comes as part of a broader strategy that aims to keep the overall impact on consumers as low as possible. Minister Dix emphasized that these rate increases were intended to ensure the continued reliability of BC Hydro’s services, without overwhelming ratepayers.

Long-Term Goals

Looking ahead, the province's strategy centers on not only maintaining affordable electricity rates but also reinforcing the importance of renewable energy, while some jurisdictions consider a 2.5% annual increase plan over multiple years to stabilize their grids. As climate change becomes an increasingly pressing issue, BC’s investments in clean energy projects like Site C aim to provide sustainable power for generations to come.

The government’s long-term vision involves building a resilient, energy-independent province that can weather future economic and environmental challenges. In this context, the rate increases are framed not just as a response to immediate inflationary pressures but as a necessary step in preparing BC’s energy infrastructure for the future.

The 3.75% rate increase set for 2025 and 2026 represents a balancing act between managing the financial health of BC Hydro and protecting consumers from higher costs. While the increase will have a modest effect on household bills, the long-term goal is to build a more robust and sustainable electricity system for British Columbia’s future. Through investments in clean energy and strategic infrastructure development, the province aims to keep electricity rates competitive while positioning itself as a leader in energy independence and climate action.

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