Owners bristle as Progress chops trees

By Reuters


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Richard Magnuson stayed home, watching contractors for Progress Energy chop down trees in his neighborhood and warily waiting for the chain saws to reach his yard.

Magnuson's trees are among the 50,000 that the power company plans to cut down in the path of transmission lines across North and South Carolina in the next three years.

Progress officials say the $30 million plan is the only way they can satisfy a federal mandate that sets high fines for power outages caused when trees and other vegetation damage transmission lines.

In Raleigh, the City of Oaks, where the acorn is the municipal symbol, the results are frustration and anger as the clear-cutting opens holes in once-private backyards and leafy streets. "I'm just sitting here myself with the fingers crossed that they are going to go away and not come back," Magnuson said.

Raleigh officials are checking into whether they can curb the cutting. They have asked Progress Energy to give them maps of the transmission lines' path and the utility's tree maintenance plans. "I'm waiting to see what they show me," associate city attorney Dan McLawhorn said.

City officials are particularly concerned about trees that city codes require - in shopping center parking lots, for instance. Property owners could face city fines if Progress Energy chops trees that are required by city code. At least one city has successfully negotiated with a power company to save some trees.

This fall, Durham officials persuaded Duke Energy, which serves the city, to stop its plans to cut more than 250 trees in several downtown neighborhoods, and to prune them instead.

Less than 30 will be lost, said Kevin Lilley, Durham facilities operation manager.

However, the trees stand near lines that carry less than 200,000 volts and are not covered under new stricter federal mandates. Power companies across the country face federal regulations that require them to take a more active role in managing the area underneath the high-power lines that move electricity from power plants to neighborhoods.

Distribution lines, the lines that normally run along streets connecting individual houses to electricity, are not included in the new rules. For years, Progress Energy had been pruning trees along easements, the land where it can control trees and structures.

But the federal government took a closer look after trees sagging onto transmission lines started a chain reaction that left millions without power in 2003. Congress passed a bill in 2005 that set new rules for power companies and new authority to impose fines of up to $1 million a day per violation of the new regulations. The rules went into effect in June.

Progress Energy's work started a couple of months ago with crews chopping down trees in Raleigh and elsewhere, including Wilmington, Sanford, New Bern and Florence, S.C. The work is 5 percent complete.

The rules do not say the company must cut down trees to comply, only that it must have a plan for maintaining the trees and vegetation along the corridor.

Progress Energy does allow trees that will grow no higher than 12 feet in the easements. Duke Energy, which serves much of Durham, allows 15 feet. McLawhorn said he wants to know why Progress Energy chose a more stringent standard and questions whether utility officials are being overzealous.

Scott Sutton, a Progress Energy spokesman, said those numbers aren't arbitrary but are based on the design of the power company's transmission lines. Sutton said the company's policy is to contact each property owner a few weeks before the trees are slated for chopping. "This is an unpleasant part of our job," Sutton said.

"But at the same time, the law is the law, and we've got to balance having minimal impact with the need of meeting federal requirements."

Property owners say they are getting little or no official warning about when their trees are to be chopped. Andrew Techet, owner of the Ridgewood shopping center off Wade Avenue, said he got about a week's notice before crews began cutting down trees at the center in November.

"We talked to the forester and we talked with the powers that be," Techet said. "We said, 'Is there any other way to address this. Can we phase it in?' There was no other alternative but to cut them down, they said." In North Raleigh's Winchester neighborhood, Scott Stewart said a crew came through about six weeks ago.

That's when he found out about the plans. He could lose as many as 10 cypress trees.

"It's frustrating," Stewart said. "It angers me that there is no regard for me, for my family. I've got no notice as to when they are going to come. They are saying, 'We don't have the resources to trim trees,' yet they have the resources to cut them down. They are a gigantic corporation, and I don't believe them for a second."

Magnuson said crews appeared in his Springdale Estates neighborhood during the week of December 3. A worker told him they were clearing a 100-foot swath, but Magnuson noted that there is only a 70-foot easement, at least by his house.

The foreman said he would contact officials to verify the easement width. Magnuson hasn't heard back. But he has watched as his neighbors' trees have been cut.

"They could be more sensitive when they are going through residential neighborhoods," said Magnuson, a retired landscape architect. "They don't need to do the brutalizing, the extent of clearing that they are doing."

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Texas lawmakers propose electricity market bailout after winter storm

Texas Electricity Market Bailout proposes securitization bonds and ERCOT-backed fees after Winter Storm Uri, spreading costs via ratepayer charges on power bills to stabilize generators, co-ops, and retailers and avert bankruptcies and investor flight.

 

Key Points

State plan to securitize storm debts via ERCOT fees, adding bill charges to stabilize Texas power firms.

✅ Securitization bonds finance unpaid ancillary services and energy costs

✅ ERCOT fee spreads Winter Storm Uri debts across ratepayers statewide

✅ Aims to prevent bankruptcies, preserve grid reliability, reassure investors

 

An approximately $2.5 billion plan to bail out Texas’ distressed electricity market from the financial crisis caused by Winter Storm Uri in February has been approved by the Texas House.

The legislation would impose a fee — likely for the next decade or longer — on electricity companies, which would then get passed on to residential and business customers in their power bills, even as some utilities waived certain fees earlier in the crisis.

House lawmakers sent House Bill 4492 to the Senate on Thursday after a 129-15 vote. A similar bill is advancing in the Senate.

Some of the state’s electricity providers and generators are financially underwater in the aftermath of the February power outages, which left millions without power and killed more than 100 people. Electricity companies had to buy whatever power was available at the maximum rate allowed by Texas regulations — $9,000 per megawatt hour — during the week of the storm (the average price for power in 2020 was $22 per megawatt hour). Natural gas fuel prices also spiked more than 700% during the storm.

Several companies are nearing default on their bills to the Electric Reliability Council of Texas, which manages the Texas power grid that covers most of the state and facilitates financial transactions in it.

Rural electric cooperatives were especially hard hit; Brazos Electric Power Cooperative, which supplies electricity to 1.5 million customers, filed for bankruptcy citing a $1.8 billion debt to ERCOT.

State Rep. Chris Paddie, R-Marshall, the bill’s author, said a second bailout bill will be necessary during the current legislative session for severely distressed electric cooperatives.

“This is a financial crisis, and it’s a big one,” James Schaefer, a senior managing director at Guggenheim Partners, an investment bank, told lawmakers at a House State Affairs Committee hearing in early April. He warned that more bankruptcies would cause higher costs to customers and hurt the state’s image in the eyes of investors.

“You’ve got to free the system,” Schaefer said. “It’s horrible that a bunch of folks have to pay, but it’s a system-wide failure. If you let a bunch of folks crash, it’s not a good look for your state.”

If approved by the Senate and Gov. Greg Abbott, a newly-created Texas Electric Securitization Corp. would use the money raised from the fees for bonds to help pay the companies’ debts, including costs for ancillary services, a financial product that helps ensure power is continuously generated and improve electricity reliability across the grid.

Paddie told his colleagues Wednesday that he could not yet estimate how long the new fee would be imposed, but during committee hearings lawmakers estimated it’s likely to be at least a decade. Several other bills to spread out the costs of the winter storm and consider market reforms are also moving through the Legislature.

ERCOT’s independent market monitor recommended in March that energy sold during that period be repriced at a lower rate, which would have allowed ERCOT to claw back about $4.2 billion in payments to power generators, but the Public Utility Commission declined to do so, even as a court ruling on plant obligations in emergencies drew scrutiny among market participants.

Instead, lawmakers are pushing for bailouts that several energy experts have said is needed, both to ensure distressed companies don’t pass enormous costs on to their customers and to prevent electricity investors and companies from leaving the state if it’s viewed as too risky to continue doing business.

Becky Klein, an energy consultant in Austin and former chair of the Public Utility Commission who played a key role in de-regulating Texas’ electricity market two decades ago, said during a retail electricity panel hosted by Integrate that legislation is necessary to provide “some kind of backstop during a crazy market crisis like this to show the financial market that we’re willing to provide some relief.”

Still, some lawmakers are concerned with how they will win public support, including potential voter-approved funding measures, for bills to bail out the state’s electricity market.

“I have to go back to Laredo and say, ‘I know you didn’t have electricity for several days, but now I’m going to make you pay a little more for the next 20 years,’” state Rep. Richard Peña Raymond, D-Laredo, said during an early April discussion on the plan in the House State Affairs Committee. He said he voted for the bill because it’s in the best interest of the state.

Paddie, during the same committee hearing, acknowledged that “none of us want to increase fees or taxes.” However, he said, “We have to deal with the reality set before us.”

 

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Nova Scotia Power says it now generates 30 per cent of its power from renewables

Nova Scotia Power Renewable Energy delivers 30% in 2018, led by wind power, hydroelectric and biomass, with coal and natural gas declining, as Muskrat Falls imports from Labrador target 40% renewables to cut emissions.

 

Key Points

It is the utility's 30% 2018 renewable mix and plan to reach 40% via Muskrat Falls while reducing carbon emissions.

✅ 18% wind, 9% hydro and tidal, 3% biomass in 2018

✅ Coal reliance fell from 76% in 2007 to 52% in 2018

✅ 58% carbon emissions cut from 2005 levels projected by 2030

 

Nova Scotia's private utility says it has hit a new milestone in its delivery of electricity from renewable resources, a trend highlighted by Summerside wind generation in nearby P.E.I.

Nova Scotia Power says 30 per cent of the electricity it produced in 2018 came from renewable sources such as wind power.

The utility says 18 per cent came from wind turbines, nine per cent from hydroelectric and tidal turbines and three per cent by burning biomass.

However, over half of the province's electrical generation still comes from the burning of coal or petroleum coke. Another 13 per cent come from burning natural gas and five per cent from imports, even as U.S. renewable generation hits record shares.

The utility says that since 2007, the province's reliance on coal-fired plants has dropped from 76 per cent of electricity generated to 52 per cent last year, as Prairie renewables growth accelerates nationally.

It says it expects to meet the province's legislated renewable target of 40 per cent in 2020, when it begins accessing hydroelectricity from the Muskrat Falls project in Labrador.

"We have made greener, cleaner energy a priority," utility president and CEO Karen Hutt said in a news release.

"As we continue to achieve new records in renewable electricity, we remain focused on ensuring electricity prices stay predictable and affordable for our customers, including solar customers across the province."

Nova Scotia Power also projects achieving a 58 per cent reduction in carbon emissions from 2005 levels by 2030.

 

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UK price cap on household energy bills expected to cost 89bn

UK Energy Price Guarantee Cost forecasts from Cornwall Insight suggest an £89bn bill, tied to wholesale gas prices, OBR projections, and fiscal policy, to shield households amid the cost of living crisis.

 

Key Points

It is the projected government spend to cap household bills, driven by wholesale gas prices and OBR market forecasts.

✅ Base case: £89bn over two years, per Cornwall Insight

✅ Range: £72bn to £140bn, volatile wholesale gas costs

✅ Excludes 6-month business support estimated at £22bn-£48bn

 

Liz Truss’s intervention to freeze energy prices for households for two years is expected to cost the government £89bn, according to the first major costing of the policy by the sector’s leading consultancy.

The analysis from Cornwall Insight, seen exclusively by the Guardian, shows the prime minister’s plan to tackle the cost of living crisis could cost as much as £140bn in a worst-case scenario.

Truss announced in early September that the average annual bill for a typical household would be capped at £2,500 to protect consumers from the intensifying cost of living crisis amid high winter energy costs and a scheduled 80% rise in the cap to £3,549.

The ultimate cost of the policy is uncertain as it is highly dependent on the wholesale cost of gas, including UK natural gas prices which have soared since Russia’s invasion of Ukraine put a squeeze on already-volatile international markets. Ballpark projections had put the cost anywhere from £100bn to £150bn.

The Office for Budget Responsibility is expected to give its forecast for the bill when it provides its independent assessment of Kwasi Kwarteng’s medium-term fiscal plan, which the chancellor said on Tuesday would still happen on 23 November despite previous reports that it would be brought forward.

Cornwall Insight analysed projections of wholesale market moves to cost the intervention. In its base case scenario, analysts expect the policy to cost £89bn. That assumes the cost of supporting each household would be just over £1,000 in the first year, and about £2,000 in the second year.

The study’s authors said the wholesale price of gas would be influenced by energy demand, the severity of weather, “geo-political uncertainty” and prices for liquified natural gas as Europe seeks to refill storage facilities, which countries have rushed to fill up this winter but which could be relatively empty by next spring.

In the best-case outcome, the policy would cost £72bn, with some projections pointing to a 16% decrease in energy bills in April for households, while the “extreme high” outlook would see the government shell out £140bn to protect 29m UK households.

Gas prices are expected to push even higher if the Kremlin decides to completely cut off Russian gas exports into Europe.

Cornwall Insight’s projection does not include a separate six-month initiative to cap costs for companies, charities and public sector organisations, which is forecast to cost £22bn to £48bn.

The consultancy’s chief executive, Gareth Miller, said the £70bn range in its forecasts reflected “a febrile wholesale market continuing to be beset by geopolitical instability, sensitivity to demand, weather and infrastructure resilience”.

He said: “Fortune befriends the bold, but it also favours the prepared. The large uncertainties around commodity markets over the next two years means that the government could get lucky with costs coming out at the low end of the range, but the opposite could also be true.

“In each case, the government may find itself passengers to circumstances outside its control, having made policy that is a hostage to surprises, events and volatile factors. That’s a difficult position to be in.”

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The government has faced criticism, as some British MPs urge tighter limits on prices, that the policy is effectively a “blank cheque” and is not targeted at the most vulnerable in society.

Concerns over how Truss and Kwarteng intend to fund a series of measures, including the price guarantee, have spooked financial markets.

The EU, which has outlined possible gas price cap strategies in recent proposals, said last week it planned to cap the revenues of low-carbon electricity generators at €180 a megawatt hour, which is less than half current market prices. Truss has so far resisted calls to extend a levy on North Sea oil and gas operators to electricity generators, who have benefited from a link between gas and electricity prices in Britain.

Truss hopes to strike voluntary long-term deals with generators including Centrica and EDF, alongside the government’s Energy Security Bill measures, to bring down wholesale prices.

The Financial Times reported on Tuesday that the government has threatened companies with legislation to cap their revenues if voluntary deals cannot be agreed.

 

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Electricity prices may go up by 15 per cent

Jersey Electricity Standby Charge proposes a grid-backup fee for commercial self-generators of renewable energy, with a review delaying implementation; potential tariff impacts include 10-15 percent price rises, cost recovery, and network reliability.

 

Key Points

A grid-backup fee for Jersey self-generating businesses to share network costs fairly and curb electricity price rises.

✅ Applies to commercial self-generation using renewables or not

✅ Excludes full exporters and pre-charge installations

✅ Aims to recover grid costs and avoid 10-15% price rises

 

Electricity prices could rise by ten to 15 per cent if a standby charge for some commercial customers is not implemented, the chief executive of Jersey Electricity has warned.

Jersey Electricity has proposed extending a monthly fee to commercial customers who generate their own power through renewable means but still wish to be connected to Jersey’s grid as a back-up, echoing Ontario energy storage efforts to shore up reliability.

The States recently unanimously backed a proposal lodged by Deputy Carolyn Labey to delay administering the levy until a review could be carried out, as seen in the UK grid's net-zero transformation debates influencing policy. The charge, was due to be implemented next month but will now not be introduced until May, or later if the review has not concluded.

But Chris Ambler, JE chief executive, warned that failing to implement the standby charge could lead to additional costs for customers.

Some of JE’s commercial customers have already been charged a standby fee after generating their own power through non-renewable means.

The charge does not apply to businesses which export all of their electricity back into the system as part of a buy-back scheme or those which install self-generation facilities before the charge is implemented.

Deputy Labey argued that the Island had done ‘absolutely nothing’ to support the use of renewable energies and instead were discouraging locally generated power by allowing JE to set a standby charge.

She added that she was pleased that the Council of Ministers had already starting reviewing the charges but the debate needed to go ahead to ensure the work continued after the May election.

During a States debate last month, she said: ‘It is increasingly concerning that we, as an island in the 21st century, are happy for our electricity to be provided to us by an unregulated, publicly listed for-profit company with a monopoly on energy.

‘I also think that introducing a charge on renewables at a time when the world is experiencing a revolution in renewable energies, including offshore vessel charging solutions, which are becoming increasingly economic, is something that needs to be investigated.

‘Jersey should be looking to diversify our electricity production and supply, to help protect us from price and currency fluctuations and to ensure that we, as an island, receive the best deal possible for Islanders.’

Mr Ambler said that any price increase would be dependent on the future take-up and use of renewable-energy technology in Jersey.

He said: ‘The cost impact would not be significant in the short term but in the long term it could be significant. I think that we are obliged to let our customers know that.

‘It is very difficult to assess but if we are not able to levy a fair charge, then, as electricity shortages in Canada have shown, we could see prices rise by ten to 15 per cent over time.’

Mr Ambler added that his company was in favour of the use of renewable energy, with a third of the company’s electricity being generated by hydroelectric sources, but that the costs of implementing it needed to be fairly distributed, given how big battery rule changes can affect project viability elsewhere in the market.

And he said that, while it was difficult to quantify how much could be lost if the standby charge was not implemented, it could cost the company over £10 million.

‘In 2014, we only increased our prices by one per cent,’ he said. ‘We are reviewing our prices at the moment but if we did put an increase in place it would be modest and it would not be linked to the standby charge.’

 

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Europe to Weigh Emergency Measures to Limit Electricity Prices

EU Electricity Price Limits are proposed by the European Commission to curb contagion from gas prices, bolster energy security, stabilize the power market, and manage inflation via LNG imports, gas storage, and reduced demand.

 

Key Points

Temporary power-price caps to curb gas contagion, shield consumers, and bolster EU energy security.

✅ Limits decouple electricity from volatile gas benchmarks

✅ Short-term LNG imports and storage to enhance supply security

✅ Market design reforms and demand reduction to tame prices

 

The European Union should consider emergency measures in the coming weeks that could include price cap strategies on electricity prices, European Commission President Ursula von der Leyen told leaders at an EU summit in Versailles.

The reference to the possible measures was contained in a slide deck Ms. von der Leyen used to discuss efforts to curb the EU’s reliance on Russian energy imports, which last year accounted for about 40% of its natural-gas consumption. The slides were posted to Ms. von der Leyen’s Twitter account.

Russia’s invasion of Ukraine has highlighted the vulnerability of Europe’s energy supplies to severe supply disruptions and raised fears that imports could be cut off by Moscow or because of damage to pipelines that run across Ukraine. It has also driven energy prices up sharply, contributing to worries about inflation and economic growth.

Earlier this week, the European Commission, the EU’s executive arm, published the outline of a plan that it said could cut imports of Russian natural gas by two-thirds this year and end the need for those imports entirely before 2030, aligning with calls to ditch fossil fuels in Europe. In the short-term, the plan relies largely on storing natural gas ahead of next winter’s heating season, reducing consumption and boosting imports of liquefied natural gas from other producers.

The Commission acknowledged in its report that high energy prices are rippling through the economy, even as European gas prices have fallen back toward pre-war levels, raising manufacturing costs for energy-intensive businesses and putting pressure on low-income households. It said it would consult “as a matter of urgency” and propose options for dealing with high prices.

The slide deck used by Ms. von der Leyen on Thursday said the Commission plans by the end of March to present emergency options “to limit the contagion effect of gas prices in electricity prices, including temporary price limits, even though rolling back electricity prices can be complex under current market rules.” It also intends this month to set up a task force to prepare for next winter and a proposal for a gas storage policy.

By mid-May, the Commission will set out options to revamp the electricity market and issue a proposal for phasing out EU dependency on Russian fossil fuels by 2027, according to the slides.

French President Emmanuel Macron said Thursday that Europe needs to protect its citizens and companies from the increase in energy prices, adding that some countries, including France, have already taken some national measures.

“If this lasts, we will need to have a more long-lasting European mechanism,” he said. “We will give a mandate to the Commission so that by the end of the month we can get all the necessary legislation ready.”

The problem with price limits is that they reduce the incentive for people and businesses to consume less, said Daniel Gros, distinguished fellow at the Centre for European Policy Studies, a Brussels think tank. He said low-income families and perhaps some businesses will need help dealing with high prices, but that should come as a lump-sum payment that isn’t tied to how much energy they are consuming.

“The key will be to let the price signal work,” Mr. Gros said in a paper published this week, which argued that high energy prices could result in lower demand in Europe and Asia, reducing the need for Russian natural gas. “Energy must be expensive so that people save energy,” he said.

Ms. von der Leyen’s slides suggest the EU hopes to replace 60 billion cubic meters of Russian gas with alternative suppliers, including suppliers of liquefied natural gas, by the end of this year. Another 27 billion cubic meters could be replaced through a combination of hydrogen and EU production of biomethane, according to the slide deck.

 

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If B.C. wants to electrify all road vehicles by 2055, it will need to at least double its power output: study

B.C. EV Electrification 2055 projects grid capacity needs doubling to 37 GW, driven by electric vehicles, renewable energy expansion, wind and solar generation, limited natural gas, and policy mandates for zero-emission transportation.

 

Key Points

A projection that electrifying all B.C. road transport by 2055 would more than double grid demand to 37 GW.

✅ Site C adds 1.1 GW; rest from wind, solar, limited natural gas.

✅ Electricity price per kWh rises 9%, but fuel savings offset.

✅ Significant GHG cuts with 93% renewable grid under Clean Energy Act.

 

Researchers at the University of Victoria say that if B.C. were to shift to electric power for all road vehicles by 2055, the province would require more than double the electricity now being generated.

The findings are included in a study to be published in the November issue of the Applied Energy journal.

According to co-author and UVic professor Curran Crawford, the team at the university's Pacific Institute for Climate Solutions took B.C.'s 2015 electrical capacity of 15.6 gigawatts as a baseline, and added projected demands from population and economic growth, then added the increase that shifting to electric vehicles would require, while acknowledging power supply challenges that could arise.

They calculated the demand in 2055 would amount to 37 gigawatts, more than double 15.6 gigawatts used in 2015 as a baseline, and utilities warn of a potential EV charging bottleneck if demand ramps up faster than infrastructure.

"We wanted to understand what the electricity requirements are if you want to do that," he said. "It's possible — it would take some policy direction."

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The team took the planned Site C dam project into account, but that would only add 1.1 gigawatts of power. So assuming no other hydroelectric dams are planned, the remainder would likely have to come from wind and solar projects and some natural gas.

"Geothermal and biomass were also in the model," said Crawford, adding that they are more expensive electricity sources. "The model we were using, essentially, we're looking for the cheapest options."
Wind turbines on the Tantramar Marsh between Nova Scotia and New Brunswick tower over the Trans-Canada Highway. If British Columbia were to shift to 100 per cent electric-powered ground transportation by 2055, the province would have to significantly increase its wind and solar power generation. (Eric Woolliscroft/CBC)
The electricity bill, per kilowatt hour, would increase by nine per cent, according to the team's research, but Crawford said getting rid of the gasoline and diesel now used to fuel vehicles could amount to an overall cost saving, especially when combined with zero-emission vehicle incentives available to consumers.

The province introduced a law this year requiring that all new light-duty vehicles sold in B.C. be zero emission by 2040, while the federal 2035 EV mandate adds another policy signal, so the researchers figured 2055 was a reasonable date to imagine all vehicles on the road to be electric.

Crawford said hydrogen-powered vehicles weren't considered in the study, as the model used was already complicated enough, but hydrogen fuel would actually require more electricity for the electrolysis, when compared to energy stored in batteries.

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The study also found that shifting to all-electric ground transportation in B.C. would also mean a significant decrease in greenhouse gas emissions, assuming the Clean Energy Act remains in place, which mandates that 93 per cent of grid electricity must come from renewable resources, whereas nationally, about 18 per cent of electricity still comes from fossil fuels, according to 2019 data. 

"Doing the electrification makes some sense — If you're thinking of spending some money to reduce carbon emissions, this is a pretty cost effective way of doing that," said Crawford.

 

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