Huge solar plant in the works

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The largest solar electric generating plant in the United States could be built in Arizona under a plan announced recently by six Southwest energy suppliers. The multistate consortium said it has issued a request for proposals to construct a concentrating solar power plant that would use the heat of the sun to generate clean electricity for Southwest consumers.

The plant is envisioned to produce 250 megawatts of electricity, which would be enough to serve 75,000 Arizona homes, according to Arizona Public Service, one of the partners in the project.

The other partners are Salt River Project, Arizona Electric Power Cooperative, Tucson Electric Power, Southern California Public Power Authority and Xcel Energy.

The largest single solar plant in the U.S. is in the Mohave Desert and produces 160 megawatts. It is part of a system of solar fields built in the 1980s that produces 354 megawatts.

That's many times larger than current solar power plants in Arizona. Tucson Electric Power operates a plant in Springerville with a capacity of 4.6 megawatts while APS operates a one-megawatt concentrating solar power plant in Red Rock.

The largest single solar plant in the U.S. is in the Mohave Desert and produces 160 megawatts. It is part of a system of solar fields built in the 1980s that produces 354 megawatts. The largest recent solar plant is a 64-megawatt installation that opened earlier this year in Boulder City, Nevada.

Several solar plants with capacities up to 900 megawatts are contemplated in California but are not yet under construction.

By comparison, large nuclear or coal-fired power plants typically produce about 1,000 megawatts.

The partners are interested in developing the new plant because it would use the latest technology that may greatly reduce the cost of solar electricity, said Lori Singleton, manager of sustainability initiatives for Salt River Project, another partner.

Solar electricity still costs three to four times more than power produced from conventional plants, but the new technology and economies of scale could make the proposed plant more competitive, she said.

Singleton did not estimate the cost of the plant, but the new Nevada plant cost a reported $250 million and covers 350 acres.

Singleton said the consortium's proposed solar farm might occupy four times that amount of land.

Consortium members hope to select the winning bidder by June, with operation anticipated to start by the end of 2012.

Singleton said the new plant is not expected to have an impact on electricity rates because SRP and other utilities already collect surcharges on customers' monthly bills to cover the added cost of renewable energy. She also said surveys show solar energy is strongly supported by SRP customers.

"They believe solar is the technology where we should be investing their money, based on the fact they see it as an abundant resource for the state," she said.

Under the program, the plant would be built and operated by an independent developer, and the six utilities would sign purchase power agreements to buy the electricity, giving the operator a guaranteed market. In addition to APS and SRP, the consortium includes the Arizona Electric Power Cooperative, Tucson Electric Power, Southern California Public Power Authority and Xcel Energy.

Three types of concentrating designs are possible. APS' Red Rock plant uses a series of mirrored troughs to focus sunlight on fluid that is used to create steam to generate electricity. Other technologies use large dishes or power towers surrounded by mirrors to focus the sunlight. Singleton said the new plant would most likely be located along existing power lines in Arizona or Nevada.

Arizona utilities have received a mandate from the Arizona Corporation Commission to obtain 15 percent of their electricity from renewable sources like solar and wind power by 2025.Commissioner Kris Mayes praised the project, calling it "very good news for Arizona."

She added the commission's mandate has laid the groundwork to make the state a leader in renewable energy.

"I am hopeful that this project will ultimately be located in Arizona, as it will bring good jobs and revenue to local communities," Mayes said. "Arizona's abundant sunshine and geography make it ideal for a CSP (concentrating solar power) project."

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Nuclear alert investigation won't be long and drawn out, minister says

Pickering Nuclear False Alert Investigation probes Ontario's emergency alert system after a provincewide cellphone, radio, and TV warning, assessing human error, Pelmorex safeguards, Emergency Management Ontario oversight, and communication delays.

 

Key Points

An Ontario probe into the erroneous Pickering nuclear alert, focusing on human error, system safeguards, and oversight.

✅ Human error during routine testing suspected

✅ Pelmorex safeguards and EMO protocols under review

✅ Two-hour all-clear delay prompts communication fixes

 

An investigation into a mistaken Pickering alert warning of an incident at the Pickering Nuclear Generating Station will be completed fairly quickly, Ontario's solicitor general said.

Sylvia Jones tapped the chief of Emergency Management Ontario to investigate how the alert warning of an unspecified problem at the facility was sent in error to cellphones, radios and TVs across the province at about 7:30 a.m. Sunday.

"It's very important for me, for the people of Ontario, to know exactly what happened on Sunday morning," said Jones. "Having said that, I do not anticipate this is going to be a long, drawn-out investigation. I want to know what happened and equally important, I want some recommendations on insurances and changes we can make to the system to make sure it doesn't happen again."


Initial observations suggest human error was responsible for the alert that was sent out during routine tests of the emergency alert, Jones said.

"This has never happened in the history of the tests that they do every day, twice a day, but I do want to know exactly all of the issues related to it, whether it was one human error or whether it was a series of things."

Martin Belanger, the director of public alerting for Pelmorex, a company that operates the alert system, said there are a number of safeguards built in, including having two separate platforms for training and live alerts.

"The software has some steps and some features built in to minimize that risk and to make sure that users will be able to know whether or not they're sending an alert through the...training platform or whether they're accessing the live system in the case of a real emergency," he said.

Only authorized users have access to the system and the province manages that, Belanger said. Once in the live system, features make the user aware of which platform they are using, with various prompts and messages requiring the user's confirmation. There is a final step that also requires the user to confirm their intent of issuing an alert to cellphones, radio and TVs, Belanger said.

On Sunday, a follow-up alert was sent to cellphones nearly two hours after the original notification, and similar grid alerts in Alberta underscore timing and public expectations.

NDP energy critic Peter Tabuns is critical of that delay, noting that ongoing utility scam warnings can further erode public trust.

"That's a long time for people to be waiting to find out what's really going on," he said. "If people lose confidence in this system, the ability to use it when there is a real emergency will be impaired. That's dangerous."

Treasury Board President Peter Bethlenfalvy, who represents the riding of Pickering-Uxbridge, said getting that alert Sunday morning was "a shock to the system," and he too wants the investigation to address the reason for the all-clear delay.

"We all have a lot of questions," he said. "I think the public has every right to know exactly what went on and we feel exactly the same way."

People in the community know the facility is safe, Bethlenfalvy said.

"We have some of the safest nuclear assets in the world -- the safest -- at 60 per cent of Ontario's electricity," he said.

A poll released Monday found that 82 per cent of Canadians are concerned about spills from nuclear reactors contaminating drinking water and 77 per cent are concerned about neighbourhood safety and security risks for those living close to nuclear plants. Oraclepoll Research surveyed 2,094 people across the country on behalf of Friends of the Earth between Jan. 2 and 12, the day of the false alert. The have a margin of error of plus or minus 2.1 per cent, 19 times out of 20.

The wording of Sunday's alert caused much initial confusion, and events like a power outage in London show how morning disruptions can amplify concern, warning residents within 10 kilometres of the plant of "an incident," though there was no "abnormal" release of radioactivity and residents didn't need to take protective steps, but emergency crews were responding.

In the event of a real emergency, the wording would be different, Jones said.

"There are a number of different alerts that are already prepared and are ready to go," she said. "We have the ability to localize it to the communities that are impacted, but because this was a test, it went provincewide."

Jones said she expects the results of the probe to be made public.

The Pickering nuclear plant has been operating since 1971, and had been scheduled to be decommissioned this year, but the former Liberal government -- and the current Progressive Conservative government -- committed to keeping it open until 2024. Decommissioning is now set to start in 2028.

It operates six CANDU reactors, generates 14 per cent of Ontario's electricity and is responsible for 4,500 jobs across the region, according to OPG, and OPG's credit rating remains stable.

During the COVID-19 pandemic, Hydro One employees supported the Province of Ontario in the fight against COVID-19.

The Green party is calling on the province to use this opportunity to review its nuclear emergency response plan, including pandemic staffing contingencies, last updated in 2017 and subject to review every five years.

Toronto Mayor John Tory praised Ontario for swiftly launching an investigation, but said communication between city and provincial officials wasn't what it should have been under the circumstances.

"It was a poor showing and I think everybody involved knows that," he said. "We've got to make sure it's not repeated."

 

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Franklin Energy and Consumers Energy Support Small Businesses During COVID-19 with Virtual Energy Coaching

Consumers Energy Virtual Energy Coaching connects Michigan small businesses with remote efficiency experts to cut utility costs, optimize energy usage, and access rebates and incentives, delivering safe COVID-19-era support and long-term savings through tailored assessments.

 

Key Points

A remote coaching service helping small businesses improve energy efficiency, access rebates, and cut utility costs.

✅ Three-call virtual coaching with usage review and savings plan

✅ Connects to rebates, incentives, and financing options

✅ Eligibility: <=1,200,000 kWh, <=15,000 MCF annually

 

Franklin Energy, a leading provider in energy efficiency and grid optimization solutions, announced today that they will implement Consumers Energy's Small Business Virtual Energy Coaching Service in response to the COVID-19 pandemic and broader industry coordination with federal partners across the power sector.

This Michigan-wide offering to natural gas, electric and combination small business customers provides a complimentary virtual energy-coaching service to help small businesses find ways to reduce electricity bills and benefit from lower utility costs, both now during COVID-19 and into the future, informed by similar Ontario electricity bill support efforts in other regions. To be eligible for the program, small businesses must have electric usage at or below 1,200,000 kWh annually and gas usage at or below 15,000 MCF annually.

"By developing lasting customer relationships and delivering consistent solutions through conversation, the Energy Coaching Program offers the next level of support for small business customers," said Hollie Whitmire, Franklin Energy program manager. "Energy coaching is suitable for all small businesses, but it's ideal for businesses that are new to energy efficiency or for those that have had low engagement with energy efficiency offerings and emerging new utility rate designs in years past."

Through a series of three calls, eligible small businesses can speak with an energy coach to help them connect to the right program offering available through Consumers Energy's energy efficiency programs for businesses, including demand response models like the Ontario Peak Perks program that support load management. From answering questions to reviewing energy usage, conducting assessments, identifying savings opportunities, and more, the energy coach is available to help small businesses put money back into their pocket now, when it matters most.

"Consumers Energy is committed to helping Michigan's small business community prosper, now more than ever, with examples such as Entergy's COVID-19 relief fund underscoring industry support," said Lauren Youngdahl Snyder, Consumers Energy's vice president of customer experience. "We are excited to work with Franklin Energy to develop an innovative solution for our small business customers. The Virtual Energy Coaching Service lets us engage our customers in a safe and effective manner, as seen with utilities waiving fees in Texas during the crisis, and has the potential to last even past the COVID-19 pandemic."

 

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Nigeria's Electricity Crisis

Nigeria Electricity Crisis undermines energy access as aging grid, limited generation, and transmission losses cause power outages, raising costs for businesses and public services; renewables, microgrids, and investment offer resilient, inclusive solutions.

 

Key Points

A nationwide power gap from weak infrastructure, low generation, and grid losses that disrupt services and growth.

✅ Aging grid and underinvestment drive frequent power outages

✅ Businesses face higher costs, lost productivity, weak competitiveness

✅ Renewables, microgrids, and regulatory reform can expand access

 

In Nigeria, millions of residents face persistent challenges with access to reliable electricity, a crisis that has profound implications for businesses, public services, and overall socio-economic development. This article explores the root causes of Nigeria's electricity deficit, drawing on 2021 electricity lessons to inform analysis, its impact on various sectors, and potential solutions to alleviate this pressing issue.

Challenges with Electricity Access

The issue of inadequate electricity access in Nigeria is multifaceted. The country's electricity generation capacity falls short of demand due to aging infrastructure, inadequate maintenance, and insufficient investment in power generation and distribution, a dynamic echoed when green energy supply constraints emerge elsewhere as well. As a result, many Nigerians, particularly in rural and underserved urban areas, experience frequent power outages or have limited access to electricity altogether.

Impact on Businesses

The unreliable electricity supply poses significant challenges to businesses across Nigeria. Manufacturing industries, small enterprises, and commercial establishments rely heavily on electricity to operate machinery, maintain refrigeration for perishable goods, and power essential services. Persistent power outages disrupt production schedules, increase operational costs, and, as grids prepare for new loads from electric vehicle adoption worldwide, hinder business growth and competitiveness in both domestic and international markets.

Public Services Strain

Public services, including healthcare facilities, schools, and government offices, also grapple with the consequences of Nigeria's electricity crisis. Hospitals rely on electricity to power life-saving medical equipment, maintain proper sanitation, and ensure patient comfort. Educational institutions require electricity for lighting, technological resources, and administrative functions. Without reliable power, the delivery of essential public services is compromised, impacting the quality of education, healthcare outcomes, and overall public welfare.

Socio-economic Impact

The electricity deficit in Nigeria exacerbates socio-economic disparities and hampers poverty alleviation efforts, even as debates continue over whether access alone reduces poverty in every context. Lack of access to electricity limits economic opportunities, stifles entrepreneurship, and perpetuates income inequality. Rural communities, where access to electricity is particularly limited, face greater challenges in accessing educational resources, healthcare services, and economic opportunities compared to urban counterparts.

Government Initiatives and Challenges

The Nigerian government has implemented various initiatives to address the electricity crisis, including privatization of the power sector, investment in renewable energy projects, and regulatory reforms aimed at improving efficiency and accountability, while examples like India's village electrification illustrate rapid expansion potential too. However, progress has been slow, and challenges such as corruption, bureaucratic inefficiencies, and inadequate funding continue to impede efforts to expand electricity access nationwide.

Community Resilience and Adaptation

Despite these challenges, communities and businesses in Nigeria demonstrate resilience and adaptability in navigating the electricity crisis. Some businesses invest in alternative power sources such as generators, solar panels, or hybrid systems to mitigate the impact of power outages, while utilities weigh shifts signaled by EVs' impact on utilities for future planning. Community-led initiatives, including local cooperatives and microgrids, provide decentralized electricity solutions in underserved areas, promoting self-sufficiency and resilience.

Path Forward

Addressing Nigeria's electricity crisis requires a concerted effort from government, private sector stakeholders, and international partners, informed by UK grid transformation experience as well. Key priorities include increasing investment in power infrastructure, enhancing regulatory frameworks to attract private sector participation, and promoting renewable energy deployment. Improving energy efficiency, reducing transmission losses, and expanding electricity access to underserved communities are critical steps towards achieving sustainable development goals and improving quality of life for all Nigerians.

Conclusion

The electricity crisis in Nigeria poses significant challenges to businesses, public services, and socio-economic development. Addressing these challenges requires comprehensive strategies that prioritize infrastructure investment, regulatory reform, and community empowerment. By working together to expand electricity access and promote sustainable energy solutions, Nigeria can unlock its full economic potential, improve living standards, and create opportunities for prosperity and growth across the country.

 

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Why rolling back European electricity prices is tougher than appears

EU Energy Price Crisis drives soaring electricity bills as natural gas sets pay-as-clear power prices; leaders debate price caps, common gas purchasing, market reform, renewables, and ETS changes amid Ukraine war supply shocks.

 

Key Points

A surge in gas-driven power costs linked to pay-as-clear pricing, supply shocks, and policy rifts across the EU market.

✅ Gas sets marginal power price via pay-as-clear mechanism

✅ Spain pushes decoupling and temporary price caps

✅ EU weighs joint gas buying, efficiency, more renewables

 

Nothing grabs politicians' attention faster than angry voters, and they've had plenty to be furious about as natural gas and electricity bills have soared to stomach-churning levels in recent months, as this UK natural gas analysis illustrates across markets.

That's led to a scramble to figure out ways to get those costs down, with emergency price-limiting measures under discussion — but that's turning out to be very difficult, so the likeliest result is that EU leaders meeting later this week won't come up with any solutions.

“There is no single easy answer to tackle the high electricity prices given the diversity of situations among Member States. Some options are only suitable for specific national contexts,” the European Commission said on Wednesday. “They all carry costs and drawbacks.” 

The initial problem was a surge in gas demand in Asia last year coupled with lower-than-normal Russian gas deliveries that left European gas storage at unusually low levels. Now the war in Ukraine is making matters even worse, as pressure grows for the bloc to rapidly cut its imports of Russian oil, coal and natural gas — although some national leaders reject the economic costs that would entail.

"We will end this dependence as quickly as we can, but to do that from one day to the next would mean plunging our country and all of Europe into a recession," German Chancellor Olaf Scholz warned on Wednesday.

The problem for the bloc is that its liberalized electricity market is tightly tied to the price of natural gas; power prices are set by the final input needed to balance demand — called pay-as-clear — which in most cases is set by natural gas. That's led to countries with large amounts of cheaper renewable or nuclear energy seeing sharp spikes in power prices thanks to the cost of that final bit of gas-fired electricity.

A Spanish-led coalition that includes Portugal, Belgium and Italy wants deep reforms to the EU price model, fueling a broader electricity market revamp debate in Brussels.

Others, such as the Netherlands and Germany, strongly oppose such an approach, echoing how nine countries oppose reforms at the EU level, and want to focus on cushioning the effects of the high prices on consumers and businesses, while letting the market operate. 

A third group, largely in Central Europe, wants to use the price spike to revamp or scrap the bloc's Emissions Trading System and to rethink its Fit for 55 climate legislation.

The European Commission has been holding the middle ground — arguing that the current market model makes sense, but encouraging countries to boost the amount of renewable electricity, in a wake-up call to ditch fossil fuels for Europe, to cut energy use and increase efficiency.

In draft conclusions of this week's European Council summit, seen by POLITICO, EU leaders, amid a France-Germany tussle over reform, call for things like a common approach to buying gas, aimed at preventing countries from competing against each other. But there's no big movement on electricity prices.

“It does not seem realistic to expect a result on the energy discussion at this European Council,” one diplomat said, stressing that the governments will need to see more analysis before committing to any more steps.

Looking for action
Spain wanted a much more robust response. Madrid has been arguing since last summer for “decoupling” gas from the electricity market; together with Portugal, it also mulled limiting the wholesale price of electricity to €180 per megawatt-hour — a proposal that Spain abandoned under fire from industry and consumer groups. 

Now Madrid is pushing to get a specific permission in the summit's final conclusions that would allow countries to voluntarily apply certain short-term solutions such as gas price cap strategies, according to a draft with track changes seen by POLITICO.

The issue with a cap is if gas prices are higher than the cap, Spain might not be able to buy any gas.

 

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Old meters giving away free electricity to thousands of N.B. households

NB Power Smart Meters will replace aging analog meters, boosting billing accuracy, reducing leakage, and modernizing distribution as the EUB considers a $92 million rollout of 360,000 advanced meters for residential and commercial customers.

 

Key Points

NB Power Smart Meters replace analog meters, improving billing accuracy and reducing leakage in the electricity network.

✅ EUB reviewing $92M plan for 360,000 advanced meters

✅ Replaces 98,000 analog units; curbs unbilled kWh

✅ Improves billing accuracy and reduces system leakage

 

Home and business owners with old power meters in New Brunswick have been getting the equivalent of up to 10 days worth of electricity a year or more for free, a multi million dollar perk that will end quickly if the Energy and Utilities Board approves the adoption of smart meters, a move that in other provinces has prompted refusal fees for some holdouts.

Last week the EUB began deliberations over whether to allow NB Power to purchase and install 360,000 new generation smart meters for its residential and commercial customers as part of a $92 million upgrade of its distribution system, even as regulators elsewhere approve major rate changes that affect customer bills.

If approved, that will spell the end to about 98,000 aging electromagnetic or analog meters still used by about one quarter of NB Power customers.  Those are the kind with a horizontal spinning silver disc and clock-face style dials that record consumption 

NB Power lawyer John Furey told the energy and utilities board last week that the utility suspects it loses several million dollars a year to electricity consumed by customers that is not properly recorded by their old meters. It was a central issue in Furey's argument for smart meters amid broader debates over industrial subsidies and debt. (Roger Cosman/CBC)
The analog units, some more than 50 years old and installed back when the late Louis Robichaud and Richard Hatfield were premiers in the 1960's and 1970's - are suspected of doling out millions of kilowatt hours of free power to customers by failing to register all of the current that moves through them.   

"Over time, analog meters slow down and they register lower consumption of electricity than is actually occurring," said NB Power lawyer John Furey last week about the widespread freeloading of power in New Brunswick caused by the old meters.

3 per cent missed
A 2010 report by the independent non-profit Electric Power Research Institute in Palo Alto, California and entered into evidence during NB Power's smart meter hearing said old spinning disc meters generally degrade over time and after 20 years typically fail to register nearly 3 per cent of the power that flows through them.

The average age of analog meters in New Brunswick is much older than that - 31 years - and more than 11,000 of the units are over the age of 40.

"Worn gears, corrosion, moisture, dust, and insects can all cause drag and result in an electromagnetic meter that does not capture the full consumption of the premises," said the report.

The sudden correction to full accounting and billing could naturally surprise these homeowners and even trigger consumer backlash in some cases

- Electric Power Research Institute report
About 94,000 NB residential customers and 3,900 commercial customers have an old meter, according to NB Power records. The group would receive about 40 million kilowatt hours of electricity for free this year  ($5.1 million worth including HST)  if the average unit failed to register 2 percent of the electricity flowing through it, while elsewhere some customers are receiving lump-sum credits on electricity bills.  

That is about $41 in free power for the average residential customer and $322 for the average business.

But, according to the research, there would also be hundreds of customers with meters that have slowed considerably more than the average with 0.3 percent - or close to 300 in NB Power's case -  not counting between 10 and 20 percent of the electricity customers are using. 

NB Power senior Vice President Lori Clark told the EUB stopping the freeloading of power in New Brunswick caused by older meters is in everyone's interest. (Roger Cosman/CBC)
That's potentially $400 in free electricity in a year for a residential customer with average consumption.

"While the average meter might be only slightly slow a few could be significantly so," said the report.

"The sudden correction to full accounting and billing could naturally surprise these homeowners and result in questioning of a new meter, as seen in a shocking $666 bill reported by a Nova Scotia senior." 

The report made the point analog meters can also run fast but called that "less common" meaning that if the EUB approves smart meters, tens of thousands of customers who lose an old meter to a new accurate model will experience higher bills.

'Leakage' reduction
NB Power acknowledges it does not know precisely how much power its older meters give away but said whether it is a little or a lot, ending the freebies is to everyone's benefit. 

"It reduces our inefficiencies, reduces our leakage that we have in the system, so that we are  picking up those unbilled kilowatt hours," said NB Power senior vice president Lori Clark about ending the free power many customers unknowingly enjoy.

Smart meter critics change tone on NB Power's new business case
NB Power's smart meter plan gets major boost with critical endorsements
"Customers benefit from reduced inefficiencies in our system. They benefit from reduced leakage in our system and the fact that those kilowatt hours are being properly billed to the customers that have consumed the kilowatt hours."   

NB Power hopes to win approval of its plan to acquire smart meters by this spring to allow installation beginning in mid 2021, even as some utilities elsewhere have backed away from smart home network projects.

 

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NEW Hydro One shares down after Ontario government says CEO, board out

Hydro One Leadership Shakeup unsettles investors as Ontario government ousts CEO and board, pressuring shares; analysts cite political and regulatory risk, stock volatility, trimmed price targets, and dividend stability at the regulated utility.

 

Key Points

An abrupt CEO exit and board overhaul at Hydro One, driving share declines and raising political and regulatory risk.

✅ Shares fall as CEO retires and board resigns under provincial pressure.

✅ Analysts cut price targets; warn of political, regulatory risks.

✅ New board to pick CEO; province consults on compensation.

 

Hydro One Ltd. shares slid Thursday with some analysts sounding warnings of greater uncertainty after the new Ontario government announced the retirement of the electrical utility's chief executive and the replacement of its board of directors.

 After sagging by almost eight per cent in early trading on the Toronto Stock Exchange, following news that Q2 profit plunged 23% amid weaker electricity revenue, shares of the company were later down four per cent, or 81 cents, at $19.36 as of 11:42 a.m. ET.

On Wednesday, after stock markets had closed for the day, Ontario Premier Doug Ford announced the immediate retirement of Hydro One CEO Mayo Schmidt. He leaves with a $400,000 payout in lieu of post-retirement benefits and allowances, Hydro One said.

Doug Ford's government forces out Hydro One '$6-million man'

During the recent provincial election campaign, Ford vowed to fire Schmidt, who earned $6.2 million last year and whose salary wouldn't be reduced despite calls to cut electricity costs.

Paul Dobson, Hydro One's chief financial officer, will serve as acting CEO until a new top executive is selected.

Ford also said the entire board of directors of the utility would resign. Hydro One said a new board — four members of which will be nominated by the province — will select the company's next CEO, and the province will be consulted on the next leader's compensation.

A new board is expected to be formed by mid-August.

The provincial government is the largest single investor in Hydro One, holding a 47 per cent stake. The company was partly privatized by the former Liberal government in 2015, while the NDP has proposed to make hydro public again in Ontario to change course.

 

Doug Ford promises to keep Pickering nuclear plant open until 2024

In response to the government's move to supplant the utility's board and CEO, some analysts cautioned investors about too many unknowns in the near-term outlook, citing raised political or regulatory risks.

Analyst Jeremy Rosenfield of iA Securities cut his rating on Hydro One shares to hold from buy, and reduced his 12-month price target for the stock to $24 from $26.

Rosenfield said the stock is still a defensive investment supported by stable earnings and cash flows, good earnings growth and healthy dividend.

However, he said in a research note that "the heightened potential for further political interference in the province's electricity market and regulated utility framework represent key risk factors that are likely to outweigh Hydro One's fundamentals over the near term."

 

Potential challenge to find new CEO

Laurentian Bank Securities analyst Mona Nazir said in a research note that the magnitude of change all at once was "surprising but not shocking."

She said the agreement that will see Hydro One consult with the provincial government on matters involving executive pay could have an impact on the hiring of a new CEO for the utility.

"Given the government's open and public criticism of the company and a potential ceiling on compensation, it may be challenging to attract top talent to the position," she wrote.

Laurentian cut its rating on the Hydro One to hold and reduced its price target to $21 from $24.

Analysts at CIBC World Markets said investors face an uncertain future, noting parallels with debates at Manitoba Hydro over political direction.

"In particular, we are are concerned about the government meddling in with [power] rates," wrote Robert Catellier and Archit Kshetrapal in a research note, adding they believe the new provincial government is aiming for a 12 per cent reduction in customers' power bills.

CIBC reduced its price target on Hydro One's shares to $20.50 from its previous target of $24.

 

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