Utility to boost peak power by 2010

By Knight Ridder Tribune


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Paducah Power System plans to spend about $75 million to have two natural gas-fired turbines operational in mid-2010 to cap the cost of electricity during the hottest of summer days and bridge the gap to a new power supply.

The turbines, to be built near a PPS substation at 4801 Schneidman Road, will mark the first time the company has generated power. Paducah Power will end its contract in late 2009 as a TVA distributor, opting for what is projected to be cheaper electricity starting in mid-2011 from the $2.9 billion Prairie State Energy Campus in Washington County, Ill., south of St. Louis.

PPS Chairman Ray McLennan said the turbine electricity will supply "peak" electricity before and after Prairie State power becomes available. Owned by eight utility groups in six states including PPS, Prairie State will supply 75 to 80 percent of Paduca Power's electricity.

McLennan said most of the power needed in the interim will come through a bridge contract with another supplier. "We've never actually generated our own electricity," McLennan said. "We looked at the people who were considerably cheaper than anybody else - Henderson and Owensboro - and they owned their own generation for almost the past century."

Cost savings Prairie State electricity is expected to cost about $40 per megawatt hour, enough wattage to indefinitely run about 400 homes. Although the gas-fired power will cost about $80 per megawatt hour, it will prevent PPS from having to pay as much as four times that much on the open market during peak demand, Paducah Power General Manager Dave Clark said.

"We would have to pass those extra costs on to our customers."

Clark said there will be an opportunity to sell unused peak power to Prairie State. McLennan said the $80 figure includes capital costs, as well as the expense of buying land and running 10 miles of piping from Texas Gas at Palma. PPS will amortize the cost over 30 years.

"Our scenario is we'll operate the turbines less than 1,000 hours a year, and the cost will still be below what we'd be paying TVA around the time we leave," he said. TVA plans to raise rates about 8 percent next spring. Sound, emissions Although the substation area is sparsely populated, Paducah Power has an additional tract of land optioned and wants to buy property next to it, McLennan said.

"If that happens, it will give us a big buffer." He and Clark said they anticipate the plant being quiet enough to be able to talk nearby, based on their visits to other similar plants.

The PPS turbines will have noise buffers around them, they said. The Kentucky Division of Air Quality issued a draft permit Nov. 19, limiting the plant to 11,000 hours of operation and 225 tons of nitrogen oxide emissions annually. McLennan likened the emissions to those of a jet engine.

"It's a major source, which means more than 100 tons of nitrogen oxide per year," said John Lyons, air quality division director.

"It depends on how often the plant runs as to how much it actually emits."

Because of high gas prices, only two other companies elsewhere in Kentucky have built peak plants since a moratorium was lifted several years ago, Lyon said. Paducah's is the first permit issued since.

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Ontario Sets Electricity Rates at Off-Peak Price until February 7

Ontario Off-Peak Electricity Rate offers 8.2 cents per kWh for 24 hours, supporting Time-of-Use and Tiered Regulated Price Plan customers, including residential, small business, and farms, under Ontario Energy Board guidelines during temporary relief.

 

Key Points

A temporary 8.2 cents per kWh all-day price for RPP customers, covering TOU and Tiered users across Ontario.

✅ Applies 24 hours daily at 8.2 cents per kWh for 21 days

✅ Covers residential, small business, and farm RPP customers

✅ Valid for TOU and Tiered plans set by the Ontario Energy Board

 

 The Ontario government has announced electricity relief with electricity prices set at the off-peak price of 8.2 cents per kilowatt-hour, 24 hours per day for 21 days starting January 18, 2022, until the end of day February 7, 2022, for all Regulated Price Plan customers. The off-peak rate will apply automatically to residential, small businesses and farms who pay Time-of-Use or Tiered prices set by the Ontario Energy Board.

This rate relief includes extended off-peak rates to support small businesses, as well as workers and families spending more time at home while the province is in Modified Step Two of the Roadmap to Reopen.

As part of our mandate, we set the rates that your utility charges for the electricity you use in your home or small business. These rates appear on the Electricity line of your bill, and we administer protections such as disconnection moratoriums for residential customers. We also set the Delivery rates that cover the cost to deliver electricity to most residential and small business customers.

 

Types of electricity rates

For residential and small business customers that buy electricity from their utility, there are two different types of rates (also called prices here), and Ontario also provides stable electricity pricing for larger users. The Ontario Energy Board sets both once a year on November 1:

Time-of-Use (TOU)

With TOU prices, the price depends on when you use electricity, including options like ultra-low overnight pricing that encourage off-peak use.

There are three TOU price periods:

  • Off-peak, when demand for electricity is lowest and new offerings like the Ultra-Low Overnight plan can encourage shifting usage. Ontario households use most of their electricity – nearly two thirds of it – during off-peak hours.
  • Mid-peak, when demand for electricity is moderate. These periods are during the daytime, but not the busiest times of day, and utilities like BC Hydro are exploring similar TOU structures as well.
  • On-peak, when demand for electricity is generally higher. These are the busier times of day – generally when people are cooking, starting up their computers and running heaters or air conditioners.

 

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National Grid to lose Great Britain electricity role to independent operator

UK Future System Operator to replace National Grid as ESO, enabling smart grid reform, impartial system planning, vehicle-to-grid, long duration storage, and data-driven oversight to meet net zero and cut consumer energy costs.

 

Key Points

The UK Future System Operator is an independent ESO and planner, steering net zero with impartial data and smart grid coordination.

✅ Replaces National Grid ESO with independent system operator

✅ Enables smart grid, vehicle-to-grid, and long-duration storage

✅ Supports net zero, lower bills, and impartial system planning

 

The government plans to strip National Grid of its role keeping Great Britain’s lights on as part of a proposed “revolution’” in the electricity network driven by smart digital grid technologies.

The FTSE 100 company has played a role in managing the energy system of England, Scotland and Wales, including efforts such as a subsea power link that brings renewable power from Scotland to England (Northern Ireland has its own network). It is the electricity system operator, balancing supply and demand to ensure the electricity supply. But it will lose its place at the heart of the industry after government officials put forward plans to replace it with an independent “future system operator”.

The new system controller would help steer the country towards its climate targets, at the lowest cost to energy bill payers, by providing impartial data and advice after an overhaul of the rules governing the energy system to make it “fit for the future”.

The plans are part of a string of new proposals to help connect millions of electric cars, smart appliances and other green technologies to the energy system, and to fast-track grid connections nationwide, which government officials believe could help to save £10bn a year by 2050, and create up to 10,000 jobs for electricians, data scientists and engineers.

The new regulations aim to make it easier for electric cars to export electricity from their batteries back on to the power grid or to homes when needed. They could also help large-scale and long-duration batteries play a role in storing renewable energy, supported by infrastructure such as a 2GW substation helping integrate supply, so that it is available when solar and wind power generation levels are low.

Anne-Marie Trevelyan, the energy and climate change minister, said the rules would allow households to “take control of their energy use and save money” while helping to make sure there is clean electricity available “when and where it’s needed”.

She added: “We need to ensure our energy system can cope with the demands of the future. Smart technologies will help us to tackle climate change while making sure that the lights stay on and bills stay low.”

The energy regulator, Ofgem, raised concerns earlier this year that National Grid would face a “conflict of interest” in providing advice on the future electricity system because it also owns energy networks that stand to benefit financially from future investment plans. It called for a new independent operator to take its place.

Jonathan Brearley, Ofgem’s chief executive, said the UK requires a “revolution” in how and when it uses electricity, including demand shifts during self-isolation to help meet its climate targets and added that the government’s plans for a new digital energy system were “essential” to meeting this goal “while keeping energy bills affordable for everyone”.

A National Grid spokesperson said the company would “work closely” with the government and Ofgem on the role of a future system operator, as well as “the most appropriate ownership model and any future related sale”.

The division has earned National Grid, which has addressed cybersecurity fears in supplier choices, an average of £199m a year over the last five years, or 1.3% of the group’s total revenues, which are split between the UK – where it operates high-voltage transmission lines in England and Wales, and the country’s gas system – and its growing energy supply business in the US, aligned with investment in a smarter electricity infrastructure in the US to modernize grids.

 

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Duke Energy seeks changes in how solar owners are paid for electricity

Duke Energy Net Metering Proposal updates rooftop solar compensation with time-of-use rates, lower grid credits, and a minimum charge, aligning payments with electricity demand in North Carolina pending regulators' approval.

 

Key Points

A plan to swap flat credits for time-of-use rates and a minimum charge for rooftop solar customers in North Carolina.

✅ Time-of-use credits vary by grid demand

✅ $10 minimum use charge plus $14 basic fee

✅ Aims to align solar payouts with actual electricity value

 

Duke Energy has proposed new rules for how owners of rooftop solar panels are paid for electricity they send to the electric grid. It could mean more complexity and lower payments, but the utility says rates would be fairer.

State legislators have called for changes in the payment rules — known as "net metering" policies that allow households to sell power back to energy firms.

Right now, solar panel owners who produce more electricity than they need get credits on their bills, equal to whatever they pay for electricity. Under the proposed changes, the credit would be lower and would vary according to electricity demand, said Duke spokesperson Randy Wheeless.

"So in a cold winter morning, like now, you would get more, but maybe in a mild spring day, you would get less," Wheeless said Tuesday. "So, it better reflects what the price of electricity is."

Besides setting rates by time of use, solar owners also would have to pay a minimum of $10 a month for electricity, even if they don't use any from the grid. That's on top of Duke's $14 basic charge. Duke said it needs the extra revenue to pay for grid infrastructure to serve solar customers.

The proposal is the result of an agreement between Duke and solar industry groups — the North Carolina Sustainable Energy Association; the Southern Environmental Law Center, which represented Vote Solar and the Southern Alliance for Clean Energy; solar panel maker Sunrun Inc.; and the Solar Energy Industries Association.

The deal is similar to one approved by regulators in South Carolina last year, while in Nova Scotia a solar charge was delayed after controversy.

Daniel Brookshire of the North Carolina Sustainable Energy Association said he hopes the agreement will help the solar industry.

"We reached an agreement here that we think will provide certainty over the next decade, at least, for those interested in pursuing solar for their homes, and for our members who are solar installers," Brookshire said.

But other environmental and consumer groups oppose the changes, amid debates over who pays for grid upgrades elsewhere. Jim Warren with NC WARN said the rules would slow the expansion of rooftop solar in North Carolina.

"It would make it even harder for ordinary people to go solar," Warren said. "This would make it more complicated and more expensive, even for wealthier homeowners."

State regulators still must approve the proposal, even as courts weigh aspects of the electricity monopoly in related solar cases. If state regulators approve it, rates for new net metering customers would take effect Jan. 1, 2023.

 

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PG&E keeps nearly 60,000 Northern California customers in the dark to reduce wildfire risk

PG&E Public Safety Power Shutoff reduces wildfire risk during extreme winds, triggering de-energization across the North Bay and Sierra Foothills under red flag warnings, with safety inspections and staged restoration to improve grid resilience.

 

Key Points

A utility protocol to de-energize lines during extreme fire weather, reducing ignition risks and improving grid safety.

✅ Triggered by red flag warnings, humidity, wind, terrain

✅ Temporary de-energization of transmission and distribution lines

✅ Inspections precede phased restoration to minimize wildfire risk

 

PG&E purposefully shut off electricity to nearly 60,000 Northern California customers Sunday night, aiming to mitigate wildfire risks from power lines during extreme winds.

Pacific Gas and Electric planned to restore power to 70 percent of affected customers in the North Bay and Sierra Foothills late Monday night. As crews inspect lines for safety by helicopter, vehicles and on foot, the remainder will have power sometime Tuesday.

While it was the first time the company shut off power for public safety, PG&E announced its criteria and procedures for such an event in June, said spokesperson Paul Doherty. After wildfires devastated Northern California's wine country last October, he added, PG&E developed its community wildfire safety program division to make power grids and communities more resilient, and prepares for winter storm season through enhanced local response. 

Two sagging PG&E power lines caused one of those wildfires during heavy winds, killing four people and injuring a firefighter, the California Department of Forestry and Fire Protection determined earlier this month. Trees or tree branches hitting PG&E power lines started another four wildfires in October 2017. Altogether, the power company has been blamed for igniting 13 wildfires last year.

"We're adapting our electric system our operating practices to improve safety and reliability," Doherty said of the safety program. "That's really the bottom line for us."

Turning off power to so many customers was a "last resort given the extreme fire danger conditions these communities are experiencing," Pat Hogan, senior vice president of electric operations, said in a statement. Conditions that led the company to shut off power included the National Weather Service's red flag fire warnings, humidity levels, sustained winds, temperature, dry fuel and local terrain, Doherty said, amid possible rolling blackouts during grid strain.

The company de-energized more than 78 miles of transmission lines and more than 2,150 miles of distribution power lines Sunday night. Many schools in the area were closed Monday because of the planned power outage, highlighting unequal access to electricity across communities.

Late Saturday and early Sunday, PG&E warned 97,000 customers in 12 counties that the shut off might go into effect. Through automated calls, texts and emails, the company encouraged customers to have drinking water, canned food, flashlights, prescriptions and baby supplies on hand.

Power was also turned off in Southern California on Monday.

San Diego Gas & Electric turned off service to about 360 customers near Cleveland National Forest, where multiple fires have scorched large swaths of land in recent years.

SDG&E has pre-emptively shut off power to customers in the past, most recently in December when 14,000 customers went without power.

Southern California Edison, the primary electric provider across Southern California — including Los Angeles — has a similar power shutoff program. As of Monday night, SCE had yet to turn off power in any of its service areas, a spokesperson told USA TODAY.

 

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Paying for electricity in India: Power theft can't be business as usual

India Power Sector Payment Crisis strains utilities with electricity theft, discom arrears, coal dues, and subsidy burdens, triggering outages, load-shedding, and tariff stress as record heatwave demand tests grid reliability, billing compliance, and infrastructure upgrades.

 

Key Points

Linked payment shortfalls, theft, and subsidies driving arrears, outages, and planning gaps across Indias power grid.

✅ Discom arrears surpass Rs 1 lakh crore, straining cash flow

✅ Coal India unpaid, fuel risk rises and tariffs face pressure

✅ Outages and load-shedding worsen amid heatwave demand spike

 

India is among the world leaders in losing money to electricity theft. The country’s power sector also has a peculiar pattern of entities selling without getting the money on time, or nothing at all, while Manitoba Hydro debt highlights similar strains elsewhere. Coal India is owed about Rs 12,300 crore by power generation companies, which themselves have not been paid over Rs 1 lakh crore by distribution companies. The figures of losses suffered by discoms are much higher, even as UK network profits have drawn criticism, underscoring divergent market outcomes. The circuit does get completed somehow, but the uneven transaction, which defies business sense, introduces a disruptive strand that limits the scope for any future planning. Regular and unannounced shutdowns become the norm as the power supply falls short of demand, which this time is expected to touch record highs of 215-220 gigawatts amid the scorching heatwave, and cases like deferred BC Hydro costs illustrate how financial pressures accumulate.

In debt-ridden Punjab, the power subsidy bill is over Rs 10,000 crore, a large portion of which serves farmers. The AAP government plans to provide free electricity up to 300 units for every household from July 1, even as power bill cuts in Thailand show alternative approaches to affordability. The generous giveaways cannot camouflage the state of affairs. Thirty-three government departments had outstanding electricity bills of Rs 62 crore as on March 31, the end of the last financial year. With arrears of Rs 22.48 crore, the biggest defaulter was the Water and Sanitation Department. According to the Punjab State Power Corporation Limited, around 40 police stations and posts have been found to be stealing power or failing to clear the bills, while utility impersonation scams target consumers elsewhere. Customary warnings have been issued of snapping supply if the dues are not paid, even as utility penalties for disconnection delays underscore enforcement challenges, but ‘public interest’ and ‘essential services’ will ensure that such an eventuality does not arise.

The substantial fine imposed on a dera stealing power in Tarn Taran, along with the registration of an FIR, is exemplary action that needs to be carried forward. Change is tough, but a new way of working begins with those in positions of power leading by example, be it fixing the payment mechanism, upgrading infrastructure with smart grid initiatives in mind, minimising the use of electricity or a gradual switch to alternative energy sources.

 

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Russia suspected as hackers breach systems at power plants across US

US Power Grid Cyberattacks target utilities and nuclear plants, probing SCADA, ICS, and business networks at sites like Wolf Creek; suspected Russian actors, malware, and spear-phishing trigger DHS and FBI alerts on critical infrastructure resilience.

 

Key Points

Intrusions on energy networks probing ICS and SCADA, seeking persistence and elevating risks to critical infrastructure.

✅ Wolf Creek nuclear plant targeted; no operational systems breached

✅ Attackers leveraged stolen credentials, malware, and spear-phishing

✅ DHS and FBI issued alerts; utilities enhance cyber resilience

 

Hackers working for a foreign government recently breached at least a dozen US power plants, including the Wolf Creek nuclear facility in Kansas, according to current and former US officials, sparking concerns the attackers were searching for vulnerabilities in the electrical grid.

The rivals could be positioning themselves to eventually disrupt the nation’s power supply, warned the officials, who noted that a general alert, prompting a renewed focus on protecting the U.S. power grid, was distributed to utilities a week ago. Adding to those concerns, hackers recently infiltrated an unidentified company that makes control systems for equipment used in the power industry, an attack that officials believe may be related.

The chief suspect is Russia, according to three people familiar with the continuing effort to eject the hackers from the computer networks. One of those networks belongs to an ageing nuclear generating facility known as Wolf Creek -- owned by Westar Energy Inc, Great Plains Energy Inc, and Kansas Electric Power Cooperative Inc -- on a lake shore near Burlington, Kansas.

The possibility of a Russia connection is particularly worrying, former and current official s say, because Russian hackers have previously taken down parts of the electrical grid in Ukraine and appear to be testing increasingly advanced tools, including cyber weapons to disrupt power grids, to disrupt power supplies.

The hacks come as international tensions have flared over US intelligence agencies’ conclusion that Russia tried to influence the 2016 presidential election, and amid U.S. government condemnation of Russian power-grid hacking in recent advisories. The US, which has several continuing investigations into Russia’s activities, is known to possess digital weapons capable of disrupting the electricity grids of rival nations.

“We don’t pay attention to such anonymous fakes,” Kremlin spokesman Dmitry Peskov said, in response to a request to comment on alleged Russian involvement.

It was unclear whether President Donald Trump was planning to address the cyber attacks at his meeting on Friday with Russian President Vladimir Putin. In an earlier speech in Warsaw, Trump called out Russia’s “destabilising activities” and urged the country to join “the community of responsible nations.”

The Department of Homeland Security and Federal Bureau of Investigation said they are aware of a potential intrusion in the energy sector. The alert issued to utilities cited activities by hackers since May.

“There is no indication of a threat to public safety, as any potential impact appears to be limited to administrative and business networks,” the government agencies said in a joint statement.

The Department of Energy also said the impact appears limited to administrative and business networks and said it was working with utilities and grid operators to enhance security and resilience.

“Regardless of whether malicious actors attempt to exploit business networks or operational systems, we take any reports of malicious cyber activity potentially targeting our nation’s energy infrastructure seriously and respond accordingly,” the department said in an emailed statement.

Representatives of the National Security Council, the Director of National Intelligence and the Nuclear Regulatory Commission declined to comment. While Bloomberg News was waiting for responses from the government, the New York Times reported that hacks were targeting nuclear power stations.

The North American Electric Reliability Corp, a nonprofit that works to ensure the reliability of the continent’s power system, said it was aware of the incident and was exchanging information with the industry through a secure portal.

“At this time, there has been no bulk power system impact in North America,” the corporation said in an emailed statement.

In addition, the operational controls at Wolf Creek were not pierced, according to government officials, even as attackers accessed utility control rooms elsewhere in the U.S., according to separate reports. “There was absolutely no operational impact to Wolf Creek,” Jenny Hageman, a spokeswoman for the nuclear plant, said in a statement to Bloomberg News.

“The reason that is true is because the operational computer systems are completely separate from the corporate network.”

Determining who is behind an attack can be tricky. Government officials look at the sophistication of the tools, among other key markers, when gauging whether a foreign government is sponsoring cyber activities.

Several private security firms, including Symantec researchers, are studying data on the attacks, but none has linked the work to a particular hacking team or country.

“We don’t tie this to any known group at this point,” said Sean McBride, a lead analyst for FireEye Inc, a global cyber security firm. “It’s not to say it’s not related, but we don’t have the evidence at this point.”

US intelligence officials have long been concerned about the security of the country’s electrical grid. The recent attack, striking almost simultaneously at multiple locations, is testing the government’s ability to coordinate an effective response among several private utilities, state and local officials, and industry regulators.

Specialised teams from Homeland Security and the FBI have been scrambled to help extricate the hackers from the power stations, in some cases without informing local and state officials. Meanwhile, the US National Security Agency is working to confirm the identity of the hackers, who are said to be using computer servers in Germany, Italy, Malaysia and Turkey to cover their tracks.

Many of the power plants are conventional, but the targeting of a nuclear facility adds to the pressure. While the core of a nuclear generator is heavily protected, a sudden shutdown of the turbine can trigger safety systems. These safety devices are designed to disperse excess heat while the nuclear reaction is halted, but the safety systems themselves may be vulnerable to attack.

Homeland Security and the FBI sent out a general warning about the cyber attack to utilities and related parties on June 28, though it contained few details or the number of plants affected. The government said it was most concerned about the “persistence” of the attacks on choke points of the US power supply. That language suggests hackers are trying to establish backdoors on the plants’ systems for later use, according to a former senior DHS official who asked not to be identified.

Those backdoors can be used to insert software specifically designed to penetrate a facility’s operational controls and disrupt critical systems, according to Galina Antova, co-founder of Claroty, a New York firm that specialises in securing industrial control systems.

“We’re moving to a point where a major attack like this is very, very possible,” Antova said. “Once you’re into the control systems -- and you can get into the control systems by hacking into the plant’s regular computer network -- then the basic security mechanisms you’d expect are simply not there.”

The situation is a little different at nuclear facilities. Backup power supplies and other safeguards at nuclear sites are meant to ensure that “you can’t really cause a nuclear plant to melt down just by taking out the secondary systems that are connected to the grid,” Edwin Lyman, a nuclear expert with the Union of Concerned Scientists, said in a phone interview.

The operating systems at nuclear plants also tend to be legacy controls built decades ago and don’t have digital control systems that can be exploited by hackers. Wolf Creek, for example, began operations in 1985. “They’re relatively impervious to that kind of attack,” Lyman said.

The alert sent out last week inadvertently identified Wolf Creek as one of the victims of the attack. An analysis of one of the tools used by the hackers had the stolen credentials of a plant employee, a senior engineer. A US official acknowledged the error was not caught until after the alert was distributed.

According to a security researcher who has seen the report, the malware that activated the engineer’s username and password was designed to be used once the hackers were already inside the plant’s computer systems.

The tool tries to connect to non-public computers, and may have been intended to identify systems related to Wolf Creek’s generation plant, a part of the facility typically more modern than the nuclear reactor control room, according to a security expert who asked to note be identified because the alert is not public.

Even if there is no indication that the hackers gained access to those control systems, the design of the malware suggests they may have at least been looking for ways to do so, the expert said.

Stan Luke, the mayor of Burlington, the largest community near Wolf Creek, which is surrounded by corn fields and cattle pastures, said he learned about a cyber threat at the plant only recently, and then only through golfing buddies.

With a population of just 2,700, Burlington boasts a community pool with three water slides and a high school football stadium that would be the envy of any junior college. Luke said those amenities lead back to the tax dollars poured into the community by Wolf Creek, Coffey County’s largest employer with some 1,000 workers, 600 of whom live in the county.

E&E News first reported on digital attacks targeting US nuclear plants, adding it was code-named Nuclear 17. A senior US official told Bloomberg that there was a bigger breach of conventional plants, which could affect multiple regions.

Industry experts and US officials say the attack is being taken seriously, in part because of recent events in Ukraine. Antova said that the Ukrainian power grid has been disrupted at least twice, first in 2015, and then in a more automated attack last year, suggesting the hackers are testing methods.

Scott Aaronson, executive director for security and business continuity at the Edison Electric Institute, an industry trade group, said utilities, grid operators and federal officials were already dissecting the attack on Ukraine’s electric sector to apply lessons in North America before the US government issued the latest warning to “energy and critical manufacturing sectors”. The current threat is unrelated to recently publicised ransomware incidents or the CrashOverride malware, Mr Aaronson said in an emailed statement.

Neither attack in Ukraine caused long-term damage. But with each escalation, the hackers may be gauging the world’s willingness to push back.

“If you think about a typical war, some of the acts that have been taken against critical infrastructure in Ukraine and even in the US, those would be considered crossing red lines,” Antova said.

 

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