Lowering the “doom”

By John Allemang, Globe and Mail


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Changing our climate for the worse? That's the easy part. But changing human minds and behaviour — that turns out to be much, much harder.

No matter how much confidence scientists have in the truth of their global warnings, getting the message out to the folks who are actually wrecking the planet has proved to be a far more challenging proposition. Cars still jam the streets, energy consumption increases, polluters sow doubt and denial and, as the Copenhagen summit on climate change nears, politicians still prevaricate as if there were an endless succession of tomorrows.

While there may well be an apocalypse looming on the far horizon, dire prophecies just don't cut it in the here-and-now of consumer culture. So forget the grim 100-year predictions for a second. The crisis at this very moment seems more like a crisis of communication.

Even the chair of the David Suzuki Foundation, James Hoggan, agrees: "Whether it's the scientific community, environmental groups, politicians, the media or business leaders, we haven't done a great job of conveying accurate scientific information to the public on the risks of climate change — or, indeed, of even conveying what climate change is."

Over the decades the climate-change war has been waged, many tactics used to soften up the masses have been unproductive at best and downright discouraging at worst. Even if you believe doomsday is coming, is it really such a good idea to talk it up and wallow in the death and destruction that will result if we don't change our awful ways and acknowledge Al Gore's inconvenient truth?

Such pessimistic predictions may have seemed effective as a way of winning attention (and the Nobel). But if the goal is to motivate people to useful action, say those who are experienced in environmental communication, it calls for something new.

"People have a finite capacity for worry," says Mr. Hoggan, the author of Do the Right Thing: PR Tips for a Skeptical Public . "When you overwhelm people with catastrophe, you don't actually engage them — you just produce an emotional numbness."

That's an intellectual evolution that Mr. Suzuki himself has gone through. His widely viewed TV series The Nature of Things once tended to depict nature as a beautiful pristine thing that bad humans habitually destroyed. Even now, his enemies feel able to undermine his mainstream scientific views by dismissing him as a merchant of doom.

Yet the current incarnation of Mr. Suzuki, in keeping with his foundation's communication techniques, has shifted from the dependable jeremiads of old to a message of everyday hope and more immediate usefulness. Last year, he co-wrote David Suzuki's Green Guide, a book that comes to grips with climate change through small-scale lifestyle adjustments such as biodegradable carpeting and energy-efficient appliances.

"I believe that one has to keep warning [that] the signs are there, the science is in," Mr. Suzuki said when the book came out. "But I realized years ago that you can get people to respond to fear, but you can't sustain it, because it's too soul-destroying."

So what will people respond to when fear doesn't do it? Mark van Vugt is a psychologist who teaches at VU University Amsterdam, and he's part of an emerging group of cognitive scientists studying the sometimes uneasy relationship between climate-change messaging and the workings of the brain.

He says the announcements to be made by global leaders in Copenhagen are of much less consequence than the decisions that are being shaped in the complex minds of ordinary human beings.

"It's very hard to look at a climate-change conference as a primary driver of individual behaviour," Dr. van Vugt says. "Copenhagen is about political solutions, but the environmental issues remain inherently uncertain for most people. So what we have to do is translate these issues into something meaningful at the individual level."

Acquiring information is the basic way the brain deals with uncertainty, and with a subject as complex and contested as long-term climate change, Dr. van Vugt believes the best approach is to localize the discussion: Make it less about far-off glaciers, because people find it hard to cope with a problem they can't easily influence, and more about local parks, forests or air quality.

Any kind of message for change, he believes, must focus on personal identity and our need to belong: "We're influenced by significant others and want to look good to our neighbours and friends."

So a good way to persuade people to reduce electrical consumption is to let them compare their rates with the rest of the community: Have utility bills award a smiley face to those whose consumption is lower than their neighbours and a frowning face to those who are profligate. People then will reduce without any other external motivator, Dr. van Vugt says.

But good behaviour at the individual level won't last if institutional behaviour is untrustworthy — environmental groups must not overstate a threat; scientists can't be seen to adjust data, even in a good cause (as researchers from the International Panel on Climate Change were recently accused of doing); businesses must not act as though they're a law onto themselves; and governments can't preach one thing and then do another.

"Suppose it turns out that the recyclables and organics we've been sorting and separating are just being tossed into one big garbage heap — well, that's a recipe for disaster," Dr. van Vugt says. "You've created goodwill only to destroy it."

While environmentally friendly behaviours are often presented as something altruistic and selfless, he suggests that incentives are key to any successful strategy. "Our primary motivation is to get ahead of others, to see ourselves rewarded for good behaviour while bad behaviour gets punished." So it doesn't hurt to awaken some of this potential goodness by, say, offering a free bus pass for those prepared to be wooed to public transit.

At the same time, it's useful to make green products more luxurious rather than crafting an image of asceticism and self-conscious suffering. "A nice, well-made mountain bike can cost as much as a car and may become a status symbol for just that reason," Dr. van Vugt says. This is what psychologists refer to as signaling potential: Look at me, I'm green and rich and sexy.

Orthodox environmentalists may shudder at the thought, and question the ability of sexy status symbols to stop the seas from rising. Yet the attractiveness of self-denial has proved to be a hard sell to those used to the comforts of our present wastefulness.

"The evidence so far is profoundly against the notion of sacrifice as a success strategy," designer Bruce Mau says. "We've been saying for decades, 'Get out of your cars,' but in not one of those years have there been fewer cars."

For Mr. Mau, solving the problems of climate starts with smart design — carpeting with its own 1-800 number that you call when it needs recycling, a Tesla electric car that looks more beautiful than a Ferrari, and buses that come with cup holders so you don't feel like you're downgrading quite so much from your car.

"If you describe a sustainable future in negative terms," he says, "and if you highlight what it's going to cost them, people aren't going to move there. Doom-and-gloom is a dead end."

The beauty of sustainability has an undeniable appeal. But between the aesthetics and the ascetics of climate change, there's still a lot of room to manoeuvre. A considerable amount of public goodwill was arguably wasted by the campaign to switch from incandescent bulbs to stylish compact fluorescents, a relatively low-impact improvement.

Those who listened attentively to the noisy messaging that promoted the switch to the compact fluorescents may well feel like their effort was wasted — and their commitment could be harder to summon for a more significant shift, such as reducing beef consumption by half. Politicians, after all, fear beef-industry interests, while the incandescent-bulb lobby is relatively powerless.

As the director of the Center for Climate Change Communication at George Mason University in Virginia, Edward Maibach has studied the diverse effects of environmental messaging. He is convinced that changing human behaviour isn't as challenging as many people — certainly many politicians — now believe.

He can tell you from his polling data that when people are asked about changing their behaviour and reducing energy use in response to climate change, 40 per cent of those surveyed report it had no negative impact on their lives — and 30 per cent actually say it improved their quality of life.

From this, he concludes that "there's a collectivist spirit out there that's waiting to be reactivated. People are waiting to be asked to sacrifice. By and large, politicians are fearful about doing the right thing about greenhouses gases because they think they'll be thrown out of office. Yet we've shown that for every one person who'll get upset if you reduce emissions, two and a half will stand up and applaud."

Political leaders who resist the gospel of self-sacrifice like to talk instead about lucrative opportunities — all those Obama-esque "green jobs" to be found in building solar panels and wind farms, retrofitting drafty houses and remaking cities for public transit while (bonus points here) ending dependence on foreign oil.

They don't bother pointing out that our democracy-driven tentativeness has allowed a more decisive China to begin setting itself up as the leading producer of wind energy, solar-panel equipment and electric vehicles.

While waiting for our politicians to see the light, Dr. Maibach encourages citizens to take actions that make green behaviour appear to be the rule, not the exception. Individuals will give up in despair if they think they're engaged in a thankless task of changing the world on their own.

Hope and optimism come from a public display of commitment — Dr. Maibach cites simple school-based programs where parents ask fellow parents not to idle their cars while waiting for their children, explain the reasoning behind their request and perhaps offer a stick-on decal to those who will take the non-idling pledge.

He says the public pledge by itself makes it three times more likely that potential do-gooders will follow through on their good intentions. And from creating that kind of group effect, it then becomes easier to change public policy. "Once you can develop this behaviour and show it to be the social norm, it enables politicians to change the laws more easily."

That is certainly a tactic the David Suzuki Foundation is turning to in its messaging, especially as the Stephen Harper government has shied away from a commitment to environmentalists' cause. The foundation aims to work with government in a non-partisan way, and yet Mr. Hoggan says that when he goes to Copenhagen, "I'm going to tell the media exactly what I think about our government's failure on climate change."

Though the Prime Minister purports to speak for Canada, polls show that a majority of Canadians want stronger action from the government, and this allows groups such as the David Suzuki Foundation to appropriate the Team Canada brand — drawing attention to the negative international response Canada's policies generate internationally (Canadians hate being seen as bad guys) while featuring concerned athletes on the Suzuki website who will challenge Conservative climate policies from an educated-jock perspective (global warming means cancelled ski races).

And thus the Canadian environmental movement, far from being marginal or radical, is seen at its most patriotic and mainstream.

All these feel-good tactics may be useful in garnering more widespread support. But will they genuinely be effective in combating climate change?

The Young Greens of the Green Party don't seem to think so. They recently mounted a more outraged and outrageous 1960s-style campaign, with the support of Green Party Leader Elizabeth May, that used the attention-getting slogan, "Your parents f*cked up the planet — it's time to do something about it. Live green, vote Green."

So it's not all happy faces out there. David McKnight, a journalism professor at the University of New South Wales, criticizes environmentalists for being "a rather elite movement, aimed at symbolic actions to attract media attention and at lobbying government."

He believes (and many in the environmental movement would agree) that the most effective messaging will come from a broader-based movement, similar to the anti-war campaign of the 1960s, that puts hundreds of thousands of people on the streets.

Milan Ilnyckyj, an Ottawa-based blogger on environmental issues, argues that there should be a greater focus on the issue of morality, which is to say immorality.

"If we can accept that climate change causes harm to current and future generations," he writes, "the argument that polluters have some right to keep behaving as they have in the past weakens considerably."

Echoing that thought, William Rees of the University of British Columbia's School of Community and Regional Planning suggests that the international community should develop ways to prosecute governments for criminal negligence on environmental issues.

Still, even this approach presupposes that science and politics in the end can speak the same language. And that's an assumption that doesn't sit well with Kevin DeLuca, a professor of communications at the University of Utah.

"The raison d'être of science is doubt," he says. "But doubt is fatal in politics." Doubt opens the doors for debate about climate change, and endless debate prolongs inaction indefinitely.

Environmentalists look for ways to appeal to a mass audience, and come up with an upbeat message about satisfying self-interest and feeling good. "And so you end up with a spirit-of-the-apocalypse message veiled in a 'don't worry, be happy' conclusion," Prof. DeLuca notes.

He has no confidence in such a contrivance and, unlike most environmentalists, he says he can't put on a happy face even if strategy seems to demand it.

"The problem with the happy-face message is that the future isn't going to be happy. The Earth can get along without people - people can't get along without the Earth."

But that's a message no one wants to hear.

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Ireland and France will connect their electricity grids - here's how

Celtic Interconnector, a subsea electricity link between Ireland and France, connects EU grids via a high-voltage submarine cable, boosting security of supply, renewable integration, and cross-border trade with 700 MW capacity by 2026.

 

Key Points

A 700 MW subsea link between Ireland and France, boosting security, enabling trade, and supporting renewables.

✅ Approx. 600 km subsea cable from East Cork to Brittany

✅ 700 MW capacity; powers about 450,000 homes

✅ Financed by EIB, banks, CEF; Siemens Energy and Nexans

 

France and Ireland signed contracts on Friday to advance the Celtic Interconnector, a subsea electricity link to allow the exchange of electricity between the two EU countries. It will be the first interconnector between continental Europe and Ireland, as similar UK interconnector plans move forward in parallel. 

Representatives for Ireland’s electricity grid operator EirGrid and France’s grid operator RTE signed financial and technical agreements for the high-voltage submarine cable, mirroring developments like Maine’s approved transmission line in North America for cross-border power. The countries’ respective energy ministers witnessed the signing.

European commissioner for energy Kadri Simson said:

In the current energy market situation, marked by electricity price volatility, and the need to move away from imports of Russian fossil fuels, European energy infrastructure has become more important than ever.

The Celtic Interconnector is of paramount importance as it will end Ireland’s isolation from the Union’s power system, with parallels to Cyprus joining the electricity highway in the region, and ensure a reliable high-capacity link improving the security of electricity supply and supporting the development of renewables in both Ireland and France.

EirGrid and RTE signed €800 million ($827 million) worth of financing agreements with Barclays, BNP Paribas, Danske Bank, and the European Investment Bank, similar to the Lake Erie Connector investment that blends public and private capital.

In 2019, the project was awarded a Connecting Europe Facility (CEF) grant worth €530.7 million to support construction works and align with a broader push for electrification in Europe under climate strategies. The CEF program also provided €8.3 million for the Celtic Interconnector’s feasibility study and initial design and pre-consultation.

Siemens Energy will build converter stations in both countries, and Paris-based global cable company Nexans will design and install a 575-km-long cable for the project.

The cable will run between East Cork, on Ireland’s southern coast, and northwestern France’s Brittany coast and will connect into substations at Knockraha in Ireland and La Martyre in France.

The Celtic Interconnector, which is expected to be operational by 2026, will be approximately 600 km (373 miles) long and have a capacity of 700 MW, similar to cross-border initiatives such as Quebec-to-New York power exports expected in 2025, which is enough to power 450,000 households.

 

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Is nuclear power really in decline?

Nuclear Energy Growth accelerates as nations pursue decarbonization, complement renewables, displace coal, and ensure grid reliability with firm, low-carbon baseload, benefiting from standardized builds, lower cost of capital, and learning-curve cost reductions.

 

Key Points

Expansion of nuclear capacity to cut CO2, complement renewables, replace coal, and stabilize grids at low-carbon cost.

✅ Complements renewables; displaces coal for faster decarbonization

✅ Cuts system costs via standardization and lower cost of capital

✅ Provides firm, low-carbon baseload and grid reliability

 

By Kirill Komarov, Chairman, World Nuclear Association.

As Europe and the wider world begins to wake up to the need to cut emissions, Dr Kirill Komarov argues that tackling climate change will see the use of nuclear energy grow in the coming years, not as a competitor to renewables but as a competitor to coal.

The nuclear industry keeps making headlines and spurring debates on energy policy, including the green industrial revolution agenda in several countries. With each new build project, the detractors of nuclear power crowd the bandwagon to portray renewables as an easy and cheap alternative to ‘increasingly costly’ nuclear: if solar and wind are virtually free why bother splitting atoms?

Yet, paradoxically as it may seem, if we are serious about policy response to climate change, nuclear energy is seeing an atomic energy resurgence in the coming decade or two.

Growth has already started to pick up with about 3.1 GW new capacity added in the first half of 2018 in Russia and China while, at the very least, 4GW more to be completed by the end of the year – more than doubling the capacity additions in 2017.

In 2019 new connections to the grid would exceed 10GW by a significant margin.

If nuclear is in decline, why then do China, India, Russia and other countries keep building nuclear power plants?

To begin with, the issue of cost, argued by those opposed to nuclear, is in fact largely a bogus one, which does not make a fully rounded like for like comparison.

It is true that the latest generation reactors, especially those under construction in the US and Western Europe, have encountered significant construction delays and cost overruns.

But the main, and often the only, reason for that is the ‘first-of-a-kind’ nature of those projects.

If you build something for the first time, be it nuclear, wind or solar, it is expensive. Experience shows that with series build, standardised construction economies of scale and the learning curve from multiple projects, costs come down by around one-third; and this is exactly what is already happening in some parts of the world.

Furthermore, those first-of-a-kind projects were forced to be financed 100% privately and investors had to bear all political risks. It sent the cost of capital soaring, increasing at one stroke the final electricity price by about one third.

While, according to the International Energy Agency, at 3% cost of capital rate, nuclear is the cheapest source of energy: on average 1% increase adds about US$6-7 per MWh to the final price.

When it comes to solar and wind, the truth, inconvenient for those cherishing the fantasy of a world relying 100% on renewables, is that the ‘plummeting prices’ (which, by the way, haven’t changed much over the last three years, reaching a plateau) do not factor in so-called system and balancing costs associated with the need to smooth the intermittency of renewables.

Put simply, the fact the sun doesn’t shine at night and wind doesn’t blow all the time means wind and solar generation needs to be backed up.

According to a study by the Potsdam Institute for Climate Impact Research, integration of intermittent renewables into the grid is estimated in some cases to be as expensive as power generation itself.

Delivering the highest possible renewable content means customers’ bills will have to cover: renewable generation costs, energy storage solutions, major grid updates and interconnections investment, as well as gas or coal peaking power plants or ‘peakers’, which work only from time to time when needed to back up wind and solar.

The expected cost for kWh for peakers, according to investment bank Lazard is about twice that of conventional power plants due to much lower capacity factors.

Despite exceptionally low fossil fuel prices, peaking natural gas generation had an eye-watering cost of $156-210 per MWh in 2017 while electricity storage, replacing ‘peakers’, would imply an extra cost of $186-413 per MWh.

Burning fossil fuels is cheaper but comes with a great deal of environmental concern and extensive use of coal would make net-zero emissions targets all but unattainable.

So, contrary to some claims, nuclear does not compete with renewables. Moreover, a recent study by the MIT Energy Initiative showed, most convincingly, that renewables and load following advanced nuclear are complementary.

Nuclear competes with coal. Phasing out coal is crucial to fighting climate change. Putting off decisions to build new nuclear capacities while increasing the share of intermittent renewables makes coal indispensable and extends its life.

Scientists at the Brattle group, a consultancy, argue that “since CO2 emissions persist for many years in the atmosphere, near-term emission reductions are more helpful for climate protection than later ones”.

The longer we hesitate with new nuclear build the more difficult it becomes to save the Earth.

Nuclear power accounta for about one-tenth of global electricity production, but as much as one-third of generation from low-carbon sources. 1GWe of installed nuclear capacity prevents emissions of 4-7 million metric tons of CO2 emissions per year, depending on the region.

The International Energy Agency (IEA) estimates that in order to limit the average global temperature increase to 2°C and still meet global power demand, we need to connect to the grid at least 20GW of new nuclear energy each year.

The World Nuclear Association (WNA) sets the target even higher with the total of 1,000 GWe by 2050, or about 10 GWe per year before 2020; 25 GWe per year from 2021 to 2025; and on average 33 GWe from 2026 to 2050.

Regulatory and political challenges in the West have made life for nuclear businesses in the US and in Europe's nuclear sector very difficult, driving many of them to the edge of insolvency; but in the rest of the world nuclear energy is thriving.

Nuclear vendors and utilities post healthy profits and invest heavily in next-gen nuclear innovation and expansion. The BRICS countries are leading the way, taking over the initiative in the global climate agenda. From their perspective, it’s the opposite of decline.

Dr Kirill Komarov is first deputy CEO of Russian state nuclear energy operator Rosatom and chairman of the World Nuclear Association.

 

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Building begins on facility linking Canada hydropower to NYC

Champlain Hudson Power Express Converter Station brings Canadian hydropower via HVDC to Queens, converting 1,250 MW to AC for New York City's grid, replacing a retired fossil site with a zero-emission, grid-scale clean energy hub.

 

Key Points

A Queens converter turning 1,250 MW HVDC hydropower into AC for NYC's grid, repurposing an Astoria fossil site.

✅ 340-mile underwater/underground HVDC link from Quebec to Queens

✅ 1,250 MW DC-AC conversion feeding directly into NY grid by 2026

✅ Replaces Astoria oil site; supports NY's 70% renewables by 2030

 

New York Governor Kathy Hochul has announced the start of construction on the converter station of the Champlain Hudson Power Express transmission line, a project to bring electricity generated from Canadian hydropower to New York City.

The 340 mile (547 km) transmission line is a proposed underwater and underground high-voltage direct current power transmission line to deliver the power from Quebec, Canada, to Queens, New York City. The project is being developed by Montreal-based public utility Hydro-Quebec (QBEC.UL) and its U.S. partner Transmission Developers, while neighboring New Brunswick has signed NB Power deals to bring more Quebec electricity into the province.

The converter station for the line will be the first-ever transformation of a fossil fuel site into a grid-scale zero-emission facility in New York City, its backers say.

Workers have already removed six tanks that previously stored 12 million gallons (45.4 million liters) of heavy oil for burning in power plants and nearly four miles (6.44 km) of piping from the site in the Astoria, Queens neighborhood, echoing Hydro-Quebec's push to wean the province off fossil fuels as regional power systems decarbonize.

The facility is expected to begin operating in 2026, even as the Ontario-Quebec power deal was not renewed elsewhere in the region. Once the construction is completed, it will convert 1,250 megawatts of energy from direct current to alternating current power that will be fed directly into the state's power grid, helping address transmission constraints that have impeded incremental Quebec-to-U.S. power deliveries.

“Renewable energy plays a critical role in the transformation of our power grid while creating a cleaner environment for our future generations,” Hochul said. The converter station is a step towards New York’s target for 70% of the state’s electricity to come from renewable sources by 2030, as neighboring Quebec has closed the door on nuclear power and continues to lean on hydropower.

 

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Trump's Canada Tariff May Spike NY Energy Prices

25% Tariff on Canadian Imports threatens New York energy markets, disrupting hydroelectric power and natural gas supply chains, raising electricity prices, increasing gas costs, and intensifying trade tensions, policy uncertainty, and cross-border logistics risks.

 

Key Points

A U.S. policy imposing 25% duties on Canadian goods, risking higher New York electricity and natural gas costs.

✅ Hydroelectric and gas imports face costlier cross-border flows

✅ Higher utility bills for NY households and businesses

✅ Supply chain volatility and policy uncertainty increase

 

President Donald Trump announced the imposition of a 25% tariff on all imports from Canada, citing concerns over drug trafficking and illegal immigration. This decision has raised significant concerns among experts and residents in New York, who warn that the tariff could lead to increased electricity and gas prices in the state.

Impact on New York's Energy Sector

New York relies heavily on energy imports from Canada, particularly electricity and natural gas. Canada is a major supplier of hydroelectric power to the northeastern United States, including New York, with its electricity exports at risk amid trade tensions. The imposition of a 25% tariff on Canadian goods could disrupt this supply chain, leading to higher energy costs for consumers and businesses in New York. Justin Wilcox, an energy analyst, stated, "If the tariff is implemented, it could lead to increased costs for electricity and gas, affecting both consumers and businesses."

Potential Economic Consequences

The increased energy costs could have broader economic implications for New York, and some experts advise against cutting Quebec's exports to avoid exacerbating market volatility. Higher electricity and gas prices may lead to increased operational costs for businesses, potentially resulting in higher prices for goods and services, while tariff threats have boosted support for Canadian energy projects that could reshape regional supply. This could exacerbate the cost-of-living challenges faced by residents and strain the state's economy.

Political and Diplomatic Reactions

The tariff has also sparked political and diplomatic reactions, including threats to cut U.S. electricity exports from Ontario that raised tensions. New York Governor Kathy Hochul expressed concern over the potential economic impact, stating, "We are closely monitoring the situation and are prepared to take necessary actions to protect New York's economy." Additionally, Canadian officials have expressed their disapproval of the tariff, and Ontario Premier Doug Ford's Washington meeting underscored ongoing discussions, emphasizing the importance of the trade relationship between the two countries.

Historical Context

This development is part of a broader pattern of trade tensions between the United States and its neighbors. In 2018, the U.S. imposed tariffs on Canadian steel and aluminum, leading to retaliatory measures from Canada. The current situation underscores the ongoing challenges in international trade relations, where a recent tariff threat delayed Quebec's green energy bill and highlighted the potential domestic impacts of such policies.

The imposition of a 25% tariff on Canadian imports by President Trump has raised significant concerns in New York regarding potential increases in electricity and gas prices. Experts warn that this could lead to higher costs for consumers and businesses, with broader economic implications for the state. As the situation develops, it will be crucial to monitor the responses from both state and federal officials, as well as how Canadians support tariffs on energy and minerals may influence policy, and the potential for diplomatic negotiations to address these trade tensions.

 

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FortisAlberta Takes Necessary Precautions to Provide Electricity Service for Alberta

FortisAlberta COVID-19 response delivers safe electricity distribution across Alberta, with remote monitoring, 24/7 support, outage alerts, dispersed crews, and business continuity measures to sustain essential services for customers and communities.

 

Key Points

Plan ensuring reliable electricity in Alberta through 24/7 support, remote monitoring, outage alerts, and dispersed crews.

✅ 24/7 customer support via 310-WIRE and mobile app

✅ Remote monitoring and rapid outage restoration

✅ Dispersed crews in 50 communities for faster response

 

As the COVID-19 pandemic continues to evolve in Alberta (and around the world), FortisAlberta is taking the necessary actions and precautions informed by utility disaster planning to protect the health and well-being of its employees and to provide electricity service to its customers. FortisAlberta serves more than half a million customers with the electricity they depend on to take care of their families and community members throughout our province.

"We recognize these are challenging times as while most Albertans are asked to stay home others continue to work in the community to provide essential services, including utility workers in Ontario demonstrating support efforts. As your electricity distribution provider, please be assured you can count on us to do what we do best – provide our customers with safe and reliable electricity service wherever and whenever they need it," says Michael Mosher, FortisAlberta President and CEO.

FortisAlberta is proud to be a part of the communities it serves and commits to keeping the lights on for its customers. The company is providing a full range of services for its customers and has instilled best practices within critical parts of its business. The company's control centre continues to remotely monitor, control, and restore, where possible, the delivery of power across the entire province, including during events such as an Alberta grid alert that stress the system. Early in March, FortisAlberta implemented its business continuity plan and the company remains fully accessible to customers 24/7 by phone at 310-WIRE (9473) or through its mobile app where customers can report outages online or view details of an outage. Customers can also sign up for outage alerts to their mobile phone and/or email address to let them know if an outage does occur.

FortisAlberta's power line employees are geographically dispersed across 50 different communities so they can quickly address any issues that may arise. The company has implemented work from home measures and isolation best practices, and is planning for potential on-site lockdowns where necessary to ensure no disruption to customers.

FortisAlberta will continue to remain in close communication with its stakeholders to provide updates to customers and with industry associations to share guidance specific to the electricity sector, including insights on the evolving U.S. grid response to COVID-19 from peer utilities. FortisAlberta will also continue to invest in and empower its communities by contributing to organizations that offer programs and services aligned with the greatest needs in the communities it serves.

With the Alberta Government's recent announcement to provide relief to eligible Albertans by deferring electricity and gas charges for up to 90 days, similar to some B.C. relief measures being implemented, FortisAlberta is committed to working with stakeholders and retail partners to ensure this option is available to customers quickly and efficiently, and to learn from initiatives like the Hydro One relief fund that support customers.

 

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Ontario Energy minister downplays dispute between auditor, electricity regulator

Ontario IESO Accounting Dispute highlights tensions over public sector accounting standards, auditor general oversight, electricity market transparency, KPMG advice, rate-regulated accounting, and an alleged $1.3B deficit understatement affecting Hydro bills and provincial finances.

 

Key Points

A PSAS clash between Ontario's auditor general and the IESO, alleging a $1.3B deficit impact and transparency failures.

✅ Auditor alleges deficit understated by $1.3B

✅ Dispute over PSAS vs US-style accounting

✅ KPMG support, transparency and co-operation questioned

 

The bad blood between the Ontario government and auditor general bubbled to the surface once again Monday, with the Liberal energy minister downplaying a dispute between the auditor and the Crown corporation that manages the province's electricity market, even as the government pursued legislation to lower electricity rates in the province.

Glenn Thibeault said concerns raised by auditor general Bonnie Lysyk during testimony before a legislative committee last week aren't new and the practices being used by the Independent Electricity System Operator are commonly endorsed by major auditing firms.

"(Lysyk) doesn't like the rate-regulated accounting. We've always said we've relied on the other experts within the field as well, plus the provincial controller," Thibeault said.

#google#

"We believe that we are following public sector accounting standards."

Thibeault said that Ontario Power Generation, Hydro One and many other provinces and U.S. states use the same accounting practices.

"We go with what we're being told by those who are in the field, like KPMG, like E&Y," he said.

But a statement from Lysyk's office Monday disputed Thibeault's assessment.

"The minister said the practices being used by the IESO are common in other jurisdictions," the statement said.

"In fact, the situation with the IESO is different because none of the six other jurisdictions with entities similar to the IESOuse Canadian Public Sector Accounting Standards. Five of them are in the United States and use U.S. accounting standards."

Lysyk said last week that the IESO is using "bogus" accounting practices and her office launched a special audit of the agency late last year after the agency changed their accounting to be more in line with U.S. accounting, following reports of a phantom demand problem that cost customers millions.

Lysyk said the accounting changes made by the IESO impact the province's deficit, understating it by $1.3 billion as of the end of 2017, adding that IESO "stalled" her office when it asked for information and was not co-operative during the audit.

Lysyk's full audit of the IESO is expected to be released in the coming weeks and is among several accounting disputes her office has been engaged in with the Liberal government over the past few years.

Last fall, she accused the government of purposely obscuring the true financial impact of its 25% hydro rate cut by keeping billions in debt used to finance that plan off the province's books. Lysyk had said she would audit the IESO because of its role in the hydro plan's complex accounting scheme.

"Management of the IESO and the board would not co-operate with us, in the sense that they continually say they're co-operating, but they stalled on giving us information," she said last week.

Terry Young, a vice-president with the IESO, said the agency has fully co-operated with the auditor general. The IESO opened up its office to seven staff members from the auditor's office while they did their work.

"We recognize the work that she's doing and to that end we've tried to fully co-operate," he said. "We've given her all of the information that we can."

Young said the change in accounting standards is about ensuring greater transparency in transactions in the energy marketplace.

"It's consistent with many other independent electricity system operators are doing," he said.

Lysyk also criticized IESO's accounting firm, KPMG, for agreeing with the IESO on the accounting standards. She was critical of the firm billing taxpayers for nearly $600,000 work with the IESO in 2017, compared to their normal yearly audit fee of $86,500.

KPMG spokeswoman Lisa Papas said the accounting issues that IESO addressed during 2017 were complex, contributing to the higher fees.

The accounting practices the auditor is questioning are a "difference of professional judgement," she said.

"The standards for public sector organizations such as IESO are principles-based standards and, accordingly, require the exercise of considerable professional judgement," she said in a statement.

"In many cases, there is more than one acceptable approach that is compliant with the applicable standards."

Progressive Conservative energy critic Todd Smith said the government isn't being transparent with the auditor general or taxpayers, aligning with calls for cleaning up Ontario's hydro mess in the sector.

"Obviously, they have some kind of dispute but the auditor's office is saying that the numbers that the government is putting out there are bogus.

Those are her words," he said. "We've always said that we believe the auditor general's are the true numbers for the
province of Ontario."

NDP energy critic Peter Tabuns said the Liberal government has decided to "play with accounting rules" to make its books look better ahead of the spring election, despite warnings that electricity prices could soar if costs are pushed into the future.

 

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