Ottawa contributes to Greengate wind project

Hydro One Rate Hike reflects Ontario Energy Board approval for higher delivery charges, impacting seasonal customers more than residential classes, funding infrastructure upgrades like wood pole and transformer replacements across Ontario's medium-density service areas.

Key Points

The Hydro One rate hike is an OEB-approved delivery charge increase to fund upgrades, with impacts on seasonal users.

✅ OEB-approved delivery rate increases retroactive to 2018

✅ Seasonal customers see larger monthly bill impacts than residential

✅ Funds pole, transformer replacements and tree trimming work

Hydro One seasonal customers will face bigger increases in their bills than the utility's residential customers as a result of an Ontario Energy Board approval of a rate hike, a topic drawing attention from a utilities watchdog in other provinces as well.

Hydro One received permission to increase its delivery charge, as large projects like the Meaford hydro generation proposal are considered across Ontario, retroactive to last year.

It says it needs the money to maintain and upgrade its infrastructure, including efforts to adapt to climate change, much of which was installed in the 1950s.

The utility is notifying customers that new statements reflect higher delivery rates which were not charged in 2018 and the first half of this year, due to delay in receiving the OEB's permission, similar to delays that can follow an energy board recommendation in other jurisdictions.

The amount that customers' bills will increase by depends not only on how much electricity they use, but also on which rate class they belong to, as well as policy decisions affecting remote connections such as the First Nations electricity line in northern Ontario.

For seasonal customers such as summer cottage owners, the impact on a typical user's bill will be 2.9 per cent more per month for 2018, and 1.7 per cent per month for 2019.

There will be further increases of 1.0 per cent, 1.4 per cent and 1.1 per cent per month in 2020, 2021 and 2022 respectively. 

Typical residential customers will experience smaller increases or rate freezes over the same period.

In the residential medium density class, the rate changes are a 2.0 per cent increase for last year, a decrease of 0.5 per cent this year, and an increase of 0.5 per cent in 2021. There will be no increases in 2020 and 2022.

Seasonal Rate Class — Estimated bill impact per month

2018 - 2.9 %

2019 - 1.7%

2020 - 1.0%

2021 - 1.4%

2022 - 1.1%

Residential Medium Density Rate Class — Estimated bill impact per month

2018 - 2.0%

2019 - -0.5% decrease

2020 - 0.0%

2021 - 0.5%

2022 - 0.0%

A Hydro One spokesperson told tbnewswatch.com that over the next three years, the utility's upgrading plan includes reliability investments such as replacing more than 24,000 wood poles across the province as well as numerous transformers.

In the Thunder Bay area, the spokesperson said, some of the revenue generated by the higher delivery rates will cover the cost of replacing more than 180 poles and trimming hazardous trees around 3,200 kilometres of overhead power lines while sharing electrical safety tips with customers.

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Berkshire Hathaway Energy Wind Power drives cheap electricity rates in Iowa via utility-scale wind turbines, integrated transmission, battery storage, and grid management, delivering renewable energy, stable pricing, and long-term rate freezes through 2028.

Key Points

A vertically integrated wind utility lowering Iowa rates via owned generation, transmission, and advanced grid control.

✅ Owned wind assets meet Iowa residential demand

✅ Integrated transmission lowers costs and losses

✅ Rate freeze through 2028 sustains cheap power

In his latest letter to Berkshire Hathaway shareholders, Warren Buffett used the 20th anniversary of Berkshire Hathaway Energy to tout its cheap electricity bills for customers.

When Berkshire purchased the majority share of BHE in 2000, the cost of electricity for its residential customers in Iowa was 8.8 cents per kilowatt-hour (kWh) on average. Since then, these electricity rates have risen at a paltry <1% per year, with a freeze on rate hikes through 2028. As anyone who pays an electricity bill knows, that is an incredible deal.  

As Buffett himself notes with alacrity, “Last year, the rates [BHE’s competitor in Iowa] charged its residential customers were 61% higher than BHE’s. Recently, that utility received a rate increase that will widen the gap to 70%.”

The Winning Strategy

So, what’s Buffett’s secret to cheap electricity? Wind power.

“The extraordinary differential between our rates and theirs is largely the result of our huge accomplishments in converting wind into electricity,” Buffett explains. 

Wind turbines in Iowa that BHE owns and operates are expected to generate about 25.2 million megawatt-hours (MWh) of electricity for its customers, as projects like Building Energy operations begin to contribute. By Buffett’s estimations, that will be enough to power all of its residential customers’ electricity needs in Iowa.  

The company has plans to increase its renewable energy generation in other regions as well. This year, BHE Canada is expected to start construction on a 117.6MW wind farm in Alberta, Canada with its partner, Renewable Energy Systems, that will provide electricity to 79,000 homes in Canada’s oil country.

Observers note that Alberta is a powerhouse for both green energy and fossil fuels, underscoring the region's unique transition.

But I would argue that the secret to BHE’s success perhaps goes deeper than transitioning to sources of renewable energy. There are plenty of other utility companies that have adopted wind and solar power as an energy source. In the U.S., where renewable electricity surpassed coal in 2022, at least 50% of electricity customers have the option to buy renewable electricity from their power supplier, according to the Department of Energy. And some states, such as New York, have gone so far as to allow customers to pick from providers who generate their electricity.

What differentiates BHE from a lot of the competition in the utility space is that it owns the means to generate, store, transmit and supply renewable power to its customers across the U.S., U.K. and Canada, with lessons from the U.K. about wind power informing policy.

In its financial filings for 2019, the company reported that it owns 33,600MW of generation capacity and has 33,400 miles of transmission lines, as well as a 50% interest in Electric Transmission Texas (ETT) that has approximately 1,200 miles of transmission lines. This scale and integration enables BHE to be efficient in the distribution and sale of electricity, including selling renewable energy across regions.

BHE is certainly not alone in building renewable-energy fueled electricity dominions. Its largest competitor, NextEra, built 15GW of wind capacity and has started to expand its utility-scale solar installations. Duke Energy owns and operates 2,900 MW of renewable energy, including wind and solar. Exelon operates 40 wind turbine sites across the U.S. that generate 1,500 MW.

Integrated Utilities Power Ahead

It’s easy to see why utility companies see wind as a competitive source of electricity compared to fossil fuels. As I explained in my previous post, Trump’s Wrong About Wind, the cost of building and generating wind energy have fallen significantly over the past decade. Meanwhile, improvements in battery storage and power management through new technological advancements have made it more reliable (Warren Buffett bet on that one too).

But what is also striking is that integrated power and transmission enables these utility companies to make those decisions; both in terms of sourcing power from renewable energy, as well as the pricing of the final product. Until wind and solar power are widespread, these utility companies are going to have an edge of the more fragmented ends of the industry who can’t make these purchasing or pricing decisions independently. 

Warren Buffett very rarely misses a beat. He’s not the Oracle of Omaha for nothing. Berkshire Hathaway’s ownership of BHE has been immensely profitable for its shareholders. In the year ended December 31, 2019, BHE and its subsidiaries reported net income attributable to BHE shareholders of $2.95 billion.

There’s no question that renewable energy will transform the utility industry over the next decade. That change will be led by the likes of BHE, who have the power to invest, control and manage their own energy generation assets.

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Hydro-Québec Carillon Refurbishment delivers a $750M hydropower modernization, replacing six turbines and upgrading civil works, water passageways, and grid equipment to extend run-of-river, renewable energy output for peak demand near Montréal.

Key Points

A $750M project replacing six units and upgrading civil, water and electrical systems to supply power for 50 years.

✅ Replaces six generating units with Andritz turbines.

✅ Upgrades civil works, water passageways, and electrical gear.

✅ Extends run-of-river output for 50 years; boosts peak supply.

Hydro-Québec will invest $750 million to refurbish its Carillon generating station with a major powerhouse upgrade that will mainly replace six generating units. The investment also covers the cost of civil engineering work, including making adjustments to water passageways, upgrading electrical equipment and replacing the station roof. Work will start in 2021, aligning with Hydro-Québec's capacity expansion plans for 2021, and continue until 2027.

Carillon generating station is a run-of-river power plant consisting of 14 generating units with a total installed capacity of 753 MW. Built in the early 1960s, it is a key part of Hydro-Québec's hydroelectric generating fleet, which includes the La Romaine complex as well. The station is close to the greater Montréal area and feeds power into the grid to support industrial demand growth during peak consumption periods.

The selected supplier, turbine manufacturer Andritz, has been asked to maximize the project's economic spinoffs in Québec, as Canada continues investing in new turbines across the country to modernize assets. Once the work is completed, the new generating units will be able to provide clean, renewable energy, supporting Hydro-Québec's strategy to reduce fossil fuel reliance for the next 50 years.

"Carillon generating station is a symbol of our hydroelectric development and plays a strategic role in our production fleet. However, most of the generating units' main components date back to the station's original construction from 1959 to 1962. Hydropower generating stations have long service lives - with this refurbishment, Carillon will be producing clean renewable energy for decades to come." said David Murray, Chief Innovation Officer and President, Hydro-Québec Production.

"In light of today's economic situation, this is an important announcement that clearly reaffirms Hydro-Québec's role in relaunching Québec's economy and strengthening interprovincial electricity partnerships that open new markets. Over 600,000 hours of work will be required for everything from the engineering work to component assembly, creating many new high-quality skilled jobs for Québec industries."

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Georgia Power June bill credit delivers PSC-approved savings, lower fuel rates, and COVID-19 relief for residential customers, driven by natural gas prices and 2018 earnings, with typical 1,000 kWh users seeing June bill reductions.

Key Points

A PSC-approved one-time credit and lower fuel rates reducing June bills for Georgia Power residential customers.

✅ $11.29 credit for 1,000 kWh usage on June bills

✅ Fuel rate cut saves $10.26 per month from June to September 2020

✅ PSC-approved $51.5M credit based on Georgia Power's 2018 results

Georgia Power announced that the typical residential customer using 1,000-kilowatt hours will receive an $11.29 credit on their June bill, reflecting a lump-sum credit model also used elsewhere.

This reflects implementation of a one-time $51.5 million credit for customers, similar to Gulf Power's bill decrease efforts, approved by the Georgia Public Service Commission, as a result of

Georgia Power's 2018 financial results.

Pairing the June credit with new, lower fuel rates recently announced, the typical residential customer would see a reduction of $21.55 in June, even as some regions face increases like Pennsylvania's winter price hikes elsewhere.

The amount each customer receives will vary based on their 2018 usage. Georgia Power will apply the credit to June bills for customers who had active accounts as of Dec. 31, 2018, and are still active or receiving a final bill as of June 2020, and the company has issued pandemic scam warnings to help customers stay informed.

Fuel rate lowered 17.2 percent

In addition to the approved one-time credit in June, the Georgia PSC recently approved Georgia Power’s plan to reduce its fuel rates by 17.2 percent and total billings by approximately $740 million over a two-year period. The implementation of a special interim reduction will provide customers additional relief during the COVID-19 pandemic through even lower fuel rates over the upcoming 2020 summer months. The lower fuel rate and special interim reduction will lower the total bill of a typical residential customer using an average of 1,000-kilowatt hours by a total of $10.26 per month from June through September 2020.

The reduction in the company’s fuel rate is driven primarily by lower natural gas prices, even as FPL proposed multiyear rate hikes in Florida, as a result of increased natural gas supplies, which the company is able to take advantage of to benefit customers due to its diverse generation sources.

February bill credit due to tax law savings

Georgia Power completed earlier this year the third and final bill credit associated with the Tax Cuts and Jobs Act of 2017, resulting in credits totaling $106 million. The typical residential customer using an average of 1,000 kilowatt-hours per month received a credit of approximately $22 on their February Georgia Power bill, a helpful offset as U.S. electric bills rose 5% in 2022 according to national data.

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Electrical Grounding and Bonding NEC 250 Training equips electricians with Article 250 expertise, OSHA compliance knowledge, lightning protection strategies, and low-impedance fault current path design for safer industrial, commercial, and institutional power systems.

Key Points

Live NEC 250 course on grounding and bonding, covering safety, testing, and OSHA-compliant design.

✅ Interprets NEC Article 250 grounding and bonding rules

✅ Designs low-impedance fault current paths for safety

✅ Aligns with OSHA, lightning protection, and testing best practices

The Electricity Forum is organizing a series of live online Electrical Grounding and Bonding - NEC 250 training courses this Fall:

• September 8-9 , 2020 - 10:00 am - 4:30 pm ET
• October 29-30 , 2020 - 10:00 am - 4:30 pm ET
• November 23-24 , 2020 - 10:00 am - 4:30 pm ET

This interactive 12-hour live online instructor-led  Grounding and Bonding and the NEC Training course takes an in-depth look at Article 250 of the National Electrical Code (NEC) and is designed to give students the correct information they need to design, install and maintain effective electrical grounding and bonding systems in industrial, commercial and institutional power systems, with substation maintenance training also relevant in many facilities.

One of the most important AND least understood sections of the NEC is the section on Electrical Grounding, where resources like grounding guidelines can help practitioners navigate key concepts.

No other section of the National Electrical Code can match Article 250 (Grounding and Bonding) for confusion that leads to misapplication, violation, and misinterpretation. It's generally agreed that the terminology used in Section 250 has been a source for much confusion for industrial, commercial and institutional electricians. Thankfully, this has improved during the last few revisions to Article 250.

Article 250 covers the grounding requirements for providing a path to the earth to reduce overvoltage from lightning, with lightning protection training providing useful context, and the bonding requirements for a low-impedance fault current path back to the source of the electrical supply to facilitate the operation of overcurrent devices in the event of a ground fault.

Our Electrical Grounding Training course will address all the latest changes to  the Electrical Grounding rules included in the NEC, and relate them to VFD drive training considerations for modern systems.

Our course will cover grounding fundamentals, identify which grounding system tests can prevent safety and operational issues at your facilities, and introduce related motor testing training topics, and details regarding which tests can be conducted while the plant is in operation versus which tests require a shutdown will be discussed. 

Proper electrical grounding and bonding of equipment helps ensure that the electrical equipment and systems safely remove the possibility of electric shock, by limiting the voltage imposed on electrical equipment and systems from lightning, line surges, unintentional contact with higher-voltage lines, or ground-fault conditions. Proper grounding and bonding is important for personnel protection, with electrical safety tips offering practical guidance, as well as for compliance with OSHA 29 CFR 1910.304(g) Grounding.

It has been determined that more than 70 per cent of all electrical problems in industrial, commercial and institutional power systems, including large projects like the New England Clean Power Link, are due to poor grounding, and bonding errors. Without proper electrical grounding and bonding, sensitive electronic equipment is subjected to destruction of data, erratic equipment operation, and catastrophic damage. This electrical grounding and bonding training course will National Electrical Code.

Complete course details here:

https://electricityforum.com/electrical-training/electrical-grounding-nec

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California Blackouts expose grid reliability risks as PG&E deenergizes lines during high winds. Mandated solar and wind displace dispatchable natural gas, straining ISO load balancing, transmission maintenance, and battery storage planning amid escalating wildfire liability.

Key Points

California grid shutoffs stem from wildfire risk, renewables, and deferred transmission maintenance under mandates.

✅ PG&E deenergizes lines to reduce wildfire ignition during high winds.

✅ Mandated solar and wind displace dispatchable gas, raising balancing costs.

✅ Storage, reliability pricing, and grid upgrades are needed to stabilize supply.

California is again facing widespread blackouts this season. Politicians are scrambling to assign blame to Pacific Gas & Electric (PG&E) a heavily regulated utility that can only do what the politically appointed regulators say it can do. In recent years this has meant building a bunch of solar and wind projects, while decommissioning reliable sources of power and scrimping on power line maintenance and upgrades.

The blackouts are connected with the legal liability from old and improperly maintained power lines being blamed for sparking fires—in hopes that deenergizing the grid during high winds reduces the likelihood of fires. 

How did the land of Silicon Valley and Hollywood come to have developing world electricity?

California’s Democratic majority, from Gov. Gavin Newsom to the solidly progressive legislature, to the regulators they appoint, have demanded huge increases in renewable energy. Renewable electricity targets have been pushed up, and policymakers are weighing a revamp of electricity rates to clean the grid, with the state expected to reach a goal of 33% of its power from renewable sources, mostly solar and wind, by next year, and 60% of its electricity from renewables by 2030.

In 2018, 31% of the electricity Californians purchased at the retail level came from approved renewables. But when rooftop solar is added to the mix, about 34% of California’s electricity came from renewables in 2018. Solar photovoltaic (PV) systems installed “behind-the-meter” (BTM) displace utility-supplied generation, but still affect the grid at large, as electricity must be generated at the moment it is consumed. PV installations in California grew 20% from 2017 to 2018, benefiting from the state’s Self-Generation Incentive Program that offers hefty rebates through 2025, as well as a 30% federal tax credit.

Increasingly large amounts of periodic, renewable power comes at a price—the more there is, the more difficult it is to keep the power grid stable and energized. Since electricity must be consumed the instant it is generated, and because wind and solar produce what they will whenever they do, the rest of the grid’s power producers—mostly natural gas plants—have to make up any differences between supply and immediate demand. This load balancing is vital, because without it, the grid will crash and widespread blackouts will ensue.

California often produces a surplus of mandated solar and wind power, generated for 5 to 8 cents per kilowatt hour. This power displaces dispatchable power from natural gas, coal and nuclear plants, resulting in reliable power plants spending less time online and driving up electricity prices as the plants operate for fewer hours of the day. Subsidized and mandated solar power, along with a law passed in California in 2006 (SB 1638) that bans the renewal of coal-fired power contracts, has placed enormous economic pressure on the Western region’s coal power plants—among them, the nation’s largest, Navajo Generating Station. As these plants go off line, the Western power grid will become increasingly unstable. Eventually, the states that share their electric power in the Western Interconnect may have to act to either subsidize dispatchable power or place a value on reliability—something that was taken for granted in the growth of the America’s electrical system and its regulatory scheme.

California law regarding electricity explicitly states that “a violation of the Public Utilities Act is a crime” and that it is “…the intent of the Legislature to provide for the evolution of the ISO (California’s Independent System Operator—the entity that manages California’s grid) into a regional organization to promote the development of regional electricity transmission markets in the western states.” In other words, California expects to dictate how the Western grid operates.

One last note as to what drives much of California’s energy policy: politics. California State Senator Kevin de León (the author served with him in the State Assembly) drafted SB 350, the Clean Energy and Pollution Reduction Act. It became law in 2015. Sen. de León followed up with SB 100 in 2018, signed into law weeks before the 2018 election. SB 100 increased California’s renewable portfolio standard to 60% by 2030 and further requires all the state’s electricity to come from carbon-free sources by 2045, a capstone of the state’s climate policies that factor into the blackout debate.  

Sen. de León used his environmental credentials to burnish his run for the U.S. Senate against Sen. Dianne Feinstein, eventually capturing the endorsements of the California Democratic Party and billionaire environmentalist Tom Steyer, now running for president. Feinstein and de León advanced to the general in California’s jungle primary, where Feinstein won reelection 54.2% to 45.8%.

De León may have lost his race for the U.S. Senate, but his legacy will live on in increasingly unaffordable electricity and blackouts, not only in California, but in the rest of the Western United States—unless federal or state regulators begin to place a value on reliability. This could be done by requiring utility scale renewable power providers to guarantee dispatchable power, as policymakers try to avert a looming shortage of firm capacity, either through purchase agreements with thermal power plants or through the installation of giant and costly battery farms or other energy storage means.

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