Generating capacity adequate next year

Hydro One Pandemic Relief Fund offers COVID-19 financial assistance, payment flexibility, and Winter Relief to Ontario electricity customers facing hardship, with disconnection protection and customer support to help manage bills during the health crisis.

Key Points

COVID-19 aid offering bill credits, payment flexibility, and disconnection protection for electricity customers.

✅ Financial assistance and bill credits for hardship cases

✅ Flexible payment plans and extended Winter Relief

✅ No-disconnect policy and dedicated customer support hours

We are pleased to announce a Pandemic Relief Fund to assist customers affected by the novel coronavirus (COVID-19). As part of our commitment to customers, we will offer financial assistance as well as increased payment flexibility to customers experiencing hardship. The fund is designed to support customers impacted by these events and those that may experience further impacts.

In addition to this, we've also extended our Winter Relief program, aligning with our ban on disconnections policy so no customer experiencing any hardship has to worry about potential disconnection.

We recognize that this is a difficult time for everyone and we want our customers to know that we’re here to support them. We hope this fund and the added measures, such as extended off-peak rates that help provide our customers peace of mind so they can concentrate on what matters most — keeping their loved ones safe.

If you are concerned about paying your bill, are experiencing hardship or have been impacted by the pandemic, including electricity relief announced by the province, we want to help you. Call us to discuss the fund and see what options are available for you.

CUSTOMER CONTACT CENTRE HOURS
Call us at 1-888-664-9376

Monday to Friday from 7:30 a.m. to 8:00 p.m.

Saturdays from 9:00 a.m. to 3:00 p.m.

KEEPING ONTARIANS AND OUR ELECTRICITY SYSTEM SAFE
We recognize the critical role we play in powering communities across the province and our support for the Province of Ontario during COVID-19. This is a responsibility to employees, customers, businesses and the people of Ontario that we take very seriously.

Since the novel coronavirus (COVID-19) outbreak began, Hydro One’s Pandemic Team along with our leadership, have been actively monitoring the issues to ensure we can continue to deliver the service Ontarians depend on while keeping our employees, customers and the public safe, even as there has been no cut in peak hydro rates yet for self-isolating customers across Ontario. While the risk in Ontario remains low, we believe we can best protect our people and our operations by taking proactive measures.

As information continues to evolve, our leadership team along with the Pandemic Planning Team and our Emergency Operations Centre are committed to maintaining business continuity while minimizing risk to employees and communities.

Over the days and weeks to come, we will work with the sector and government, which is preparing to extend disconnect moratoriums across the province, to enhance safety protocols and champion the needs of electricity customers in Ontario.
 

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

Key Points

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

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

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

✅ Deferred charges repaid over 12 months starting January 2021.

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

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

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

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

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

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

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

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

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

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Duration Portfolio Energy Storage aligns layered peak demand with right-sized batteries, enabling peak shaving, gas peaker replacement, and solar-plus-storage synergy while improving grid flexibility, reliability, and T&D deferral through two- to four-hour battery durations.

Key Points

An approach that layers battery durations to match peaks, cut costs, replace peakers, and boost grid reliability.

✅ Layers 2- to 4-hour batteries by peak duration

✅ Enables solar-plus-storage and peak shaving

✅ Cuts T&D upgrades, emissions, and fuel costs

The debate over energy storage replacing gas-fired peakers has raged for years, but a new approach that shifts the terms of the argument could lead to an acceleration of storage deployments.

Rather than looking at peak demand as a single mountainous peak, some analysts now advocate a layered approach that allows energy storage to better match peak needs and complement ongoing efforts to improve solar and wind power across the grid.

"You don’t have to have batteries that run to infinity."

Some developers of solar-plus-storage projects, bolstered by cheap batteries, say they can already compete head-to-head with gas-fired peakers. "I can beat a gas peaker anywhere in the country today with a solar-plus-storage power plant," Tom Buttgenbach, president and CEO of developer 8minutenergy Renewables, recently told S&P Global.

Customers are very busy these days and rebate programs need to fit the speed of their life. Participation should be quick, easy, and accessible anywhere.

Others disagree. Storage is not disruptive for generation, but will be disruptive for transmission and distribution, Kris Zadlo, executive vice president and chief development officer at Invenergy, told the audience at a Bloomberg New Energy Finance conference last spring. Invenergy, like many renewable power developers, develops generation, energy storage and transmission projects.

But there is another path that avoids the pitfalls of positions on either end of the all-or-none approach. "Do the analysis of the need itself," Ray Hohenstein, market applications director at Fluence, told Utility Dive. If the need is only two hours in duration, it may be best served by a two-hour battery. "You don’t have to have batteries that run to infinity."

Storage vs. fossil fuel peakers

Energy storage has several benefits over traditional fossil fuel peaking plants, Hohenstein said. It is instantaneous, it has no emissions and requires no fuel, and has limited infrastructure needs. It can also help the grid absorb higher levels of renewable generation by soaking up excess output, such as solar power at noon, and many planned storage additions will be paired with solar in the next few years. But the one thing energy storage cannot do, he said, is provide limitless energy.

So, instead of looking at replacing an individual peaker, Hohenstein advocated a "duration portfolio" approach that uses energy storage to shave peak load.

If the need is for 150 MW of resources that will never need to run for more than two hours at a time, then a battery is "quite cheap," significantly less than a four or eight-hour battery, said Hohenstein. "If you fill up your peak by duration layer, it could be more cost effective."

NREL research driver

Fluence’s approach is informed by research by Paul Denholm and Robert Margolis at the National Renewable Energy Laboratory (NREL), released last spring.

The NREL researchers looked at the California market where they said 11 GW of fossil fuel capacity is expected to be retired by 2029 because of new once-through-cooling requirements that are taking effect. A lot of that capacity is peaking capacity and, according to NREL’s analysis, a large fraction could be replaced with four-hour energy storage, assuming continued storage cost reductions and growth in solar installations.

The key in NREL’s research was the level of solar power penetration. There is a "synergistic" relationship between solar penetration and storage deployment, the researchers wrote, and other studies suggest wind and solar could meet 80% of U.S. demand as these trends continue.

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KHNP Shortlisted for Belene Nuclear Power Plant, named by the Bulgarian Energy Ministry alongside Rosatom and CNNC; highlights APR1400 reactor expertise, EPC credentials, and expansion into the European nuclear energy market.

Key Points

KHNP is a strategic investor candidate for Bulgaria's Belene NPP, leveraging APR1400 and European market entry.

✅ Selected with Rosatom and CNNC by Bulgarian Energy Ministry

✅ Builds on APR1400 reactor design and EPC track record

✅ Positions KHNP for EU nuclear projects and O&M services

Korea Hydro & Nuclear Power (KHNP) has been selected as one of the three strategic investor candidates for a Bulgarian nuclear power plant project amid global nuclear project milestones worldwide.

The Bulgarian Energy Ministry selected KHNP of Korea, RosAtom of Russia and CNNC of China as strategic investor candidates for the construction of the Belene Nuclear Power Plant, KHNP said on Dec. 20. The Belene Nuclear Power Plant is the second nuclear power plant that Bulgaria plans to build following the 2,000-megawatt Kozloduy Nuclear Power Plant built in 1991 during the Soviet Union era. The project budget is estimated at 10 billion euros.

By being included in the shortlist for the Bulgarian project, KHNP has boosted the possibility of making a foray into the European nuclear power plant market, as India takes steps to get nuclear back on track worldwide. KHNP began to export nuclear power plants in 2009 by winning the UAE Barakah Nuclear Power Plant Project, with Barakah Unit 1 reaching 100% power as it moves toward commercial operations. The UAE plant will be based on the APR1400, a next-generation Korean nuclear reactor that is used in Shin Kori Units 3 and 4 in Korea.

The ARP1400 is a Korean nuclear reactor developed by KHNP with investment of about 230 billion won for 10 years from 1992. The nuclear reactor became the first non-U.S. type reactor to receive a design certificate (DC) from the U.S. Nuclear Regulatory Commission (NRC), as China's nuclear energy program continues on a steady development track globally. By receiving the DC, its safety was internationally recognized. In June, the company also won the maintenance project for the Barakah Nuclear Power Plant, completing the entire cycle from the construction of the nuclear power plant to its design, operation and maintenance. However, U.S. and U.K. companies took part of the maintenance project for the nuclear power plant.

In July, KHNP officials visited Turkey and contacted local energy officials to prepare for nuclear power plant projects to be launched in that country, as Bangladesh develops nuclear power with IAEA assistance in the region. Earlier in May, the company also submitted a proposal to participate in the construction of a new nuclear power plant in Kazakhstan, while Kenya moves forward with plans for a $5 billion plant.

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Alberta Rate of Last Resort streamlines electricity regulations to stabilize the default rate, curb price volatility, and protect rural communities, low-income households, and seniors while preserving competition in the province's energy market.

Key Points

Alberta's Rate of Last Resort sets biennial default electricity prices, curbing volatility and protecting customers.

✅ Biennial default rate to limit price spikes

✅ Focus on rural, senior, and low-income customers

✅ Encourages competitive contracts and market stability

The Alberta government is overhauling its electricity regulations as part of a market overhaul aimed at reducing spikes in electricity prices for consumers and businesses. The new rules, set to be introduced this spring, are intended to stabilize the default electricity rate paid by many Albertans.

Background on the Rate of Last Resort

Albertans currently have the option to sign up for competitive contracts with electricity providers. These contracts can sometimes offer lower rates than the default electricity rate, officially known as the Regulated Rate Option (RRO). However, these competitive rates can fluctuate significantly. Currently, those unable to secure these contracts or those who are on the default rate are experiencing rising electricity prices and high levels of price volatility.

To address this, the Alberta government is renaming the default rate as the Rate of Last Resort designation (RoLR) under the new framework. This aims to reduce the sense of security that some consumers might associate with the current name, which the government feels is misleading.

Key Changes Under New Regulations

The new regulations, which include proposed market changes that affect pricing, focus on:

• Price Stabilization: Default electricity rates will be set every two years for each utility provider, providing greater predictability by enabling a consumer price cap and reducing the potential for extreme price swings.
• Rural and Underserved Communities: The changes are intended to particularly benefit rural Albertans and those on the default rate, including low-income individuals and seniors. These groups often lack access to the competitive rates offered by some providers and have been disproportionately affected by recent price increases.
• Promoting Economic Stability: The goal is to lower the cost of utilities for all Albertans, leading to overall lower costs of living and doing business. The government anticipates these changes will create a more attractive environment for investment and job creation.

Opposition Views

Critics argue that limiting the flexibility of prices for the default electricity rate could interfere with market dynamics and stifle market competition among providers. Some worry it could ultimately lead to higher prices in the long term. Others advocate directly subsidizing low-income households rather than introducing broad price controls.

Balancing Affordability and the Market

The Alberta government maintains that the proposed changes will strike a balance between ensuring affordable electricity for vulnerable Albertans and preserving a competitive energy market. Provincial officials emphasize that the new regulations should not deter consumers from seeking out competitive rates if they choose to.

The Path Ahead

The new electricity regulations are part of the Alberta government's broader Affordable Utilities Program, alongside electricity policy changes across the province. The legislation is expected to be introduced and debated in the provincial legislature this spring with the potential of coming into effect later in the year. Experts expect these changes will significantly impact the Alberta electricity market and ignite further discussion about how best to manage rising utility costs for consumers and businesses.

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Connect the Grid Act links ERCOT to neighboring grids via high-voltage interconnections, enhancing reliability, resilience, and renewables integration. It enables power imports and exports with SPP, MISO, and the Western Interconnection under FERC oversight.

Key Points

A plan to link ERCOT with neighboring grids, improving reliability, enabling energy trade, and integrating renewables.

✅ High-voltage ties with SPP, MISO, and the Western Interconnection

✅ Enables imports during crises and exports of surplus power

✅ Brings ERCOT under FERC oversight; DoE to study Mexico links

In the aftermath of the devastating 2021 Texas blackouts, which exposed the vulnerabilities of the state's energy infrastructure, a significant legislative effort is underway to transform Texas from an energy island into a connected component of the broader U.S. power grid. Spearheaded by U.S. Representative Greg Casar, D-Austin, the proposed Connect the Grid Act is part of a push for smarter electricity infrastructure that seeks to remedy the isolation of the Electric Reliability Council of Texas (ERCOT) from neighboring power grids, a condition that significantly contributed to the crisis during Winter Storm Uri.

The blackouts, which left millions without power and resulted in significant loss of life and economic damage, underscored the inherent risks of Texas's unique energy infrastructure. Unlike the rest of the continental U.S., Texas's grid operates independently, limiting its ability to import electricity during emergencies. This isolation was a critical factor in the state's inability to respond effectively to the increased demand for power during the storm.

Recognizing the urgent need for a more resilient and integrated energy system, Rep. Casar's legislation aims to establish high-voltage connections between ERCOT and adjacent grid-operating organizations, including the Southern Power Pool, MISO, and the Western Interconnection. This would not only improve the reliability of Texas's power supply by enabling energy imports during crises but also allow the state to export surplus energy, thereby enhancing the economic efficiency and sustainability of its energy market.

The Connect the Grid Act proposes a range for the new connections' transfer capabilities, aiming to significantly boost the amount of power that can be shared between Texas and its neighbors. Such interconnectivity is anticipated to reduce energy costs for consumers by mitigating scarcity and enabling access to Texas's vast renewable energy resources, even as grid modernization affordability remains a point of debate among stakeholders. However, the bill faces opposition due to concerns over federal oversight, as it would bring ERCOT under the jurisdiction of the Federal Energy Regulatory Commission (FERC).

Some analysts note that policies such as later school start dates can ease late-summer peak demand as well.

At a press conference held at the IBEW Local 520 headquarters, Rep. Casar, along with environmental groups, labor unions, and frontline workers, highlighted the benefits of the proposed legislation. The bill also includes provisions for a Department of Energy study on the potential benefits of interconnecting with Mexico, and parallels proposals for macrogrids in Canada that seek greater reliability across borders.

The Connect the Grid Act reflects a broader national trend towards increasing the interconnectivity of regional power grids, a move deemed essential for the transition to renewable energy and combating climate change risks to the U.S. grid through expanded interconnection. By enabling the flow of clean energy from renewable-rich areas like Texas to energy-hungry urban centers, the legislation supports a more sustainable and resilient national energy infrastructure.

Critics of Texas's grid independence, including energy experts and federal regulators, have long advocated for such interconnections. They argue that increased access to neighboring grids could have mitigated the effects of the 2021 blackouts and emphasize the importance of a grid that can withstand extreme weather events. The Federal Energy Regulatory Commission and the North American Electric Reliability Corp. have both explored mandates and studies to promote electricity transfer between regional grids, while states like California grid upgrades are investing to modernize networks as well, highlighting the national importance of grid interconnectivity.

Despite the potential challenges of increased federal regulation, proponents of the Connect the Grid Act argue that the benefits of interconnection far outweigh the drawbacks. By reducing energy costs, enhancing grid reliability, and promoting renewable energy, the legislation aims to secure a more sustainable and equitable energy future for Texas and the nation.

If passed, the Connect the Grid Act would mark a historic shift in Texas's energy policy, ending the state's long-standing isolation and positioning it as a key player in the national and potentially international energy landscape, and echoes calls for a western Canadian electricity grid to strengthen regional ties. The bill sets a completion deadline of January 1, 2035, for the construction of the new connections, with other projects, like the one by Pattern Energy, potentially connecting ERCOT to parts of the Southeastern grid even earlier, by 2029. This legislative effort represents a critical step towards ensuring that Texas can meet its energy needs reliably and sustainably, while also contributing to the broader goal of transitioning to a cleaner, more resilient power system.

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