UK IPE mulls weather, emissions, power contracts

By Reuters


Protective Relay Training - Basic

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 12 hours Instructor-led
  • Group Training Available
Regular Price:
$699
Coupon Price:
$599
Reserve Your Seat Today
The London-based International Petroleum Exchange is looking at launching weather derivatives and greenhouse gas emissions trading contracts as well as reviving its UK electricity futures market, chief executive Richard Ward said.

"We are in discussions with a partner about how we can develop a weather business on the IPE," Ward said.

"We are actively looking into the emissions market again and electricity's back on the agenda. We are seeing whether the market is ripe for a relaunch of the electricity contract."

The IPE, which trades Brent crude, gas oil and natural gas, suspended its electricity futures contract in March 2002 after it attracted little interest amid tough competition from over-the-counter brokers.

The exchange also faces competition from the recently merged UKPX and APX power bourses.

While these exchanges have attracted reasonable volumes in short-term trading, they have struggled to establish liquid markets in longer-term forward contracts.

The UKPX said recently that its volumes had improved after the launch last year of revamped futures contracts.

Carbon dioxide emissions trade is set to take off with the launch early next year of the European Union emissions trading scheme, the centrepiece in the bloc's efforts to meet its obligation to curb pollution under the Kyoto protocol on climate change.

Few trades have been done so far, all through brokers, but last month Austria's EXAA power exchange said it wanted to start trading carbon dioxide emission certificates. Weather derivatives trading has also been thin. London's Euronext.

Liffe financial market launched European weather derivatives contracts in late 2001 but suspended them last summer after just a single deal was done.

Related News

National Energy Board hears oral traditional evidence over Manitoba-Minnesota transmission line

Manitoba-Minnesota Transmission Line connects Bipole III to Minnesota, raising export capacity, as NEB hearings weigh Indigenous rights, treaty obligations, environmental assessment, cumulative effects, and cross-border hydroelectric infrastructure impacts, land access, socio-economic concerns, and regulatory review.

 

Key Points

A cross-border hydro line linking Manitoba to Minnesota under review on Indigenous rights and environment concerns.

✅ Connects Bipole III to Minnesota to boost exports

✅ NEB hearings include Indigenous rights and treaty issues

✅ Environmental and access impacts debated in regulatory review

 

Concerned Indigenous groups asked the National Energy Board this week to take into consideration existing and future impacts and treaty rights, which have prompted a halt to Site C work elsewhere, when considering whether to OK a new hydro transmission line between Manitoba and Minnesota.

Friday was the last day of the oral traditional evidence hearings in Winnipeg on Manitoba Hydro's Manitoba-Minnesota Transmission project.

The international project will connect Manitoba Hydro's Bipole III transmission line to Minnesota and increase the province's electricity export capacity to 3185 MW from 2300 MW.

#google#

During the hearings Indigenous groups brought forward concerns and evidence of environmental degradation, echoing Site C dam opponents in other regions, and restricted access to traditional lands.

Ramona Neckoway, a member of the Nelson House First Nation, talked about her concern about the scope of Manitoba Hydro's application to the NEB.

"It's only concerned with a narrow 213 km corridor and thus it erases the histories, socio-economic impacts and the environmental degradation attached to this energy source," said Neckoway.

Prior to the hearings the board stated it did not intend to assess the environmental and socio-economic impacts of upstream or downstream facilities associated with electricity production, even as a utilities watchdog on Site C stability raised questions elsewhere.

However, the board did hear evidence from upstream and downstream affected communities despite objection from Manitoba Hydro lawyers.

"Manitoba Hydro objected to us being here, saying that we are irrelevant, but we are not irrelevant," said Elder Tommy Monias from Cross Lake First Nation.

Manitoba Hydro representative Bruce Owen said, "We respect the NEB hearing process and look forward to the input of all interested parties."

The hearings provided a rare opportunity for First Nations communities, similar to Ontario First Nations urging action, to voice their concerns about the line on a federal level.

"One of the hopes is that this project can't be built until a system-wide assessment is made," said Dr. Peter Kulchyski, an expert witness for the southern chiefs organization and professor of Native Studies at the University of Manitoba.

 

Hearings continue

The line is already under construction on the American side of the border as the NEB public hearings continue until June 22 with cross examinations and final arguments from Manitoba Hydro and intervenor groups.

The NEB's final decision on the Manitoba-Minnesota transmission line, amid an energy board delay recommendation, will be made before March 2019.

 

Related News

View more

As peak wildfire season nears, SDG&E completes work on microgrid in Ramona

SDG&E Ramona Microgrid delivers renewable energy and battery storage for wildfire mitigation, grid resilience, and PSPS support, powering the Cal Fire Air Attack Base with a 500 kW, 2,000 kWh lithium-ion system during outages.

 

Key Points

A renewable, battery-backed microgrid powering Ramona's Air Attack Base, boosting wildfire response and PSPS resilience.

✅ 500 kW, 2,000 kWh lithium-ion storage replaces diesel

✅ Keeps Cal Fire and USFS aircraft operations powered

✅ Supports PSPS continuity and rural water reliability

 

It figures to be another dry year — with the potential to spark wildfires in the region. But San Diego Gas & Electric just completed a renewable energy upgrade to a microgrid in Ramona that will help firefighters and reduce the effects of power shutoffs to backcountry residents.

The microgrid will provide backup power to the Ramona Air Attack Base, helping keep the lights on during outages, home to Cal Fire and the U.S. Forest Service's fleet of aircrafts that can quickly douse fires before they get out of hand.

"It gives us peace of mind to have backup power for a critical facility like the Ramona Air Attack Base, especially given the fact that fire season in California has become year-round," Cal Fire/San Diego County Fire Chief Tony Mecham said in a statement.

The air attack base serves as a hub for fixed-wing aircraft assigned to put out fires. Cal Fire staffs the base throughout the year with one two airtankers and one tactical aircraft. The base also houses the Forest Service's Bell 205 A++ helicopter and crew to protect the Cleveland National Forest. Aircraft for both CalFire and the Forest Service can also be mobilized to help fight fires throughout the state.

This summer, the Ramona microgrid won't have to rely on diesel generation. Instead, the facility next to the town's airport will be powered by a 500 kilowatt and 2,000 kilowatt-hour lithium-ion battery storage system that won't generate any greenhouse gas emissions.

"What's great about it, besides that it's a renewable resource, is that it's a permanent installation," said Jonathan Woldemariam, SDG&E's director of wildfire mitigation and vegetation management. "In other words, we don't have to roll a portable generator out there. It's something that can be leveraged right there because it's already installed and ready to go."

Microgrids have taken on a larger profile across the state because they can operate independently of the larger electric grid, where repairing California's grid is an ongoing challenge, thus allowing small areas or communities to keep the power flowing for hours at a time during emergencies.

That can be crucial in wildfire-prone areas affected by Public Safety Power Shutoffs, or PSPS, the practice in which investor-owned utilities in California de-energize electrical power lines in a defined area when conditions are dry and windy in order to reduce the risk of a power line falling and igniting a wildfire, while power grid upgrades move forward statewide.

Rural and backcountry communities are particularly hard hit when the power is pre-emptively cut off because many homes rely on water from wells powered by electricity for their homes, horses and livestock.

In addition to Ramona, SDG&E has established microgrids in three other areas in High Fire Threat Districts:

The microgrids in Butterfield Ranch and Shelter Valley run on diesel power but the utility plans to complete solar and battery storage systems for each locale by the end of next year, as other regions develop new microgrid rules to guide deployment.

SDG&E has a fifth microgrid in operation — in Borrego Springs, which in 2013 became the first utility-scale microgrid in the country. It provides grid resiliency to the roughly 2,700 residents of the desert town and serves as a model for integrated microgrid projects elsewhere in delivering local electricity. While the Borrego Springs microgrid is not located in a High Fire Threat District, "when and if any power is turned off, especially the power transmission feed that goes to Borrego, we can support the customers using the microgrid out there," Woldemariam said.

Microgrid costs can be higher than conventional energy systems, even as projected energy storage revenue grows over the next decade, and the costs of the SDG&E projects are passed on to ratepayers. As per California Public Utilities Commission rules, the financial details for each of microgrid are kept confidential for at least three years.

SDG&E's microgrids are part of the utility's larger plan to reduce wildfire risk that SDG&E files with the utilities commission. In its wildfire plan for 2020 through 2022, SDG&E expected to spend $1.89 billion on mitigation measures.

 

Related News

View more

PG&E’s Pandemic Response Includes Precautionary Health and Safety Actions; Moratorium on Customer Shutoffs for Nonpayment

PG&E COVID-19 Shutoff Moratorium suspends service disconnections, offers flexible payment plans, and expands customer support with safety protocols, social distancing, and public health guidance for residential and commercial utility customers during the pandemic.

 

Key Points

A temporary halt to utility shutoffs with flexible payment plans to support PG&E customers during COVID-19.

✅ Suspends shutoffs for residential and commercial accounts

✅ Offers most flexible payment plans upon COVID-19 hardship

✅ Enhances safety: social distancing, PPE, remote work protocols

 

Pacific Gas and Electric Company has announced that due to the COVID-19 pandemic, it has voluntarily implemented a moratorium on service disconnections for non-payment, effective immediately. This suspension, similar to policies in New Jersey and New York, will apply to both residential and commercial customers and will remain in effect until further notice. To further support customers who may be impacted by the pandemic, PG&E will offer its most flexible pay plans to customers who indicate either an impact or hardship as a result of COVID-19. PG&E will continue to monitor current events and identify opportunities to support our customers and communities through concrete actions.

In addition to the moratorium on service shut-offs, PG&E’s response to the COVID-19 pandemic is focused on efforts to protect the health and safety of its customers, employees, contractors and the communities it serves, including ongoing wildfire risk reduction efforts that continue alongside its pandemic response. Actions the company has taken include providing guidance for employees who have direct customer contact to take social distancing precautionary measures, such as avoiding handshakes and wearing disposable nitrile gloves while in customers' homes, and continuing safety work related to power line-related fires across its service area.

Customers who visit local offices to pay bills and are sick or experiencing symptoms are being asked to use other payment options such as online or by phone, as seen when Texas utilities waived fees during the pandemic, at 1-877-704-8470.

“We recognize that this is a rapidly changing situation and an uncertain time for many of our customers. Our most important responsibility is the health and safety of our customers and employees. We also want to provide some relief from the stress and financial challenges many are facing during this worldwide, public health crisis, and with rates set to stabilize in 2025 the company remains focused on affordability. We understand that many of our customers may experience a personal financial strain due to the slowdown in the economy related to the pandemic, and programs like the Wildfire Assistance Program can help eligible customers,” said Chief Customer Officer and Senior Vice President Laurie Giammona.

Internally, the company is taking advanced cleaning measures, communicating best practices frequently with employees, and is asking its leaders to let employees work remotely if their job allows, while avoiding critical business disruption. PG&E has activated an enterprise-wide incident response team and is vigilantly monitoring the Centers for Disease Control and Prevention and World Health Organization for updates related to the virus. The company is committed to continue addressing customer service needs and does not expect any disruption in gas or electric service due to the public health crisis.

 

Related News

View more

Ontario Energy Board prohibiting electricity shutoffs during latest stay-at-home order

OEB Disconnection Ban shields Ontario residential customers under the stay-at-home order, pausing electricity distributor shutoffs for non-payment and linking COVID-19 Energy Assistance Program credits for small businesses, charities, and overdue utility bills.

 

Key Points

A pause on electricity shutoff notices during Ontario's stay-at-home order, with COVID-19 bill credits for customers.

✅ Distributors cannot issue residential disconnection notices.

✅ Applies through the stay-at-home order timeline.

✅ CEAP credits: $750 residential; $1,500 small biz and charities.

 

With Ontario now into the third province-wide lockdown, the Ontario Energy Board (OEB) has promised residents won't have to worry about their power being shut off.

On April 8, the Province issued the third stay-at-home order in the last 13 months which is scheduled to last for 28 days until at least May 6, as electricity rates and policies continue to shift.

On April 30, the annual winter disconnection ban is set to expire, meaning electricity distributors like Hydro One would normally be permitted to issue disconnection notices for non-payment as early as 14 days before the end of the ban.

However, the OEB has announced changes for electricity consumers that prohibit electricity distributors from issuing disconnection notices to residential customers for the entirety of the stay-at-home order.

Additionally, the COVID-19 Energy Assistance Program is available for residential, small business, and registered charity customers who have overdue amounts on their electricity or gas bills as a result of the pandemic, complementing support for electric bills introduced during COVID-19, and the fixed COVID-19 hydro rate that helped stabilize costs.

Those who meet these criteria are eligible for credits up to a maximum of $750 for residential customers and $1,500 for small businesses and charities, alongside earlier moves to set an off-peak price to ease costs.

 

Related News

View more

N.S. senior suspects smart meter to blame for shocking $666 power bill

Nova Scotia Power smart meter billing raises concerns amid estimated billing, catch-up bills, and COVID-19 meter reading delays, after seniors report doubled electricity usage and higher utility charges despite consistent consumption and on-time payments.

 

Key Points

Smart meter billing uses digital reads, limits estimates, and may trigger catch-up charges after reading suspensions.

✅ COVID-19 reading pause led to estimated bills and later catch-ups

✅ Smart meters reduce reliance on estimated billing errors

✅ Customers can seek payment plans and bill reviews

 

A Nova Scotia senior says she couldn't believe her eyes when she opened her most recent power bill. 

Gloria Chu was billed $666 -- more than double what she normally pays, and similar spikes such as rising electricity bills in Calgary have drawn attention.

As someone who always pays her bi-monthly Nova Scotia Power bill in full and on time, Chu couldn't believe it.

According to her bill, her electricity usage almost tripled during the month of May, compared to last year, and is even more than it was last winter, and with some utilities exploring seasonal power rates customers may see confusing swings.

She insists she and her husband aren't doing anything differently -- but one thing has changed.

"I have had a problem since they put the smart meter in," said Chu, who lives in Upper Gulf Shore, N.S.

Chu got a big bill right after the meter was installed in January, too. That one was more than $530.

She paid it, but couldn't understand why it was so high.

As for this bill, she says she just can't afford it, especially amid a recently approved 14% rate hike in Nova Scotia.

"That's all of my CPP," Chu said. "Actually, it's more than my CPP."

Chu says a neighbor up the road who also has a smart meter had her bill double, too. In nearby Pugwash, she says some residents have seen an increase of about $20-$30.

Nova Scotia Power had put a pause on installing smart meters because of the COVID-19 pandemic, but it has resumed as of June 1, with the goal of upgrading 500,000 meters by 2021, even as in other provinces customers have faced fees for refusing smart meters during similar rollouts.

In this case, the utility says it's not the meter that's the problem, and notes that in New Brunswick some old meters gave away free electricity even as the pandemic forced Nova Scotia Power to suspend meter readings for two months.

"As a result, every one of our customers in Nova Scotia received an estimated bill," said Jennifer parker, Nova Scotia Power's director of customer care.

The utility estimated Chu's bill at $182 -- less than she normally pays -- so her latest bill is considered a catch-up bill after meter readings resumed last month.

Parker admits how estimates are calculated isn't perfect.

"There would be a lot of customers who probably had a more accurate bill because of the way that we estimate, and that's actually one of things that smart meters will get rid of, is that we won't need to do estimated billing," Parker said.

Chu isn't quite convinced.

"It is pretty smart for the power company, but it's not smart for us," she said with a laugh.

Nova Scotia Power has put a hold on her bill and says it will work with Chu on an affordable solution, though the province cannot order the utility to lower rates which limits what can be offered.

She just hopes to never see a big bill like this again, while elsewhere in Newfoundland and Labrador a lump-sum electricity credit is being provided to help customers.

 

Related News

View more

Texans to vote on funding to modernize electricity generation

Texas Proposition 7 Energy Fund will finance ERCOT grid reliability via loans and grants for new on-demand natural gas plants, maintenance, and modernization, administered by the Public Utility Commission of Texas after Winter Storm Uri.

 

Key Points

State-managed fund providing loans and grants to expand and upgrade ERCOT power generation for grid reliability.

✅ $7.2B incentives for new dispatchable plants in ERCOT

✅ Administered by Public Utility Commission of Texas

✅ Aims to prevent outages like Winter Storm Uri

 

Texans are set to vote on Tuesday on a constitutional amendment to determine whether the state will create a special fund for financing the "construction, maintenance, and modernization of its electric generating facilities."

The energy fund would be administered and used only by the Public Utility Commission of Texas to provide loans and grants to maintain and upgrade electric generating facilities and improve electricity reliability across the state.

The biggest chunk of the fund, $7.2 billion, would go into loans and incentives to build new power-generating facilities in the ERCOT (Electric Reliability Council of Texas) region, where ERCOT has issued an RFP for winter capacity to address seasonal concerns.

The proposal, titled Proposition 7, is one of several electricity market reforms under consideration by lawmakers and regulators in Texas to avoid another energy crisis like the one caused by a deadly winter storm in February 2021.

That storm, known as Winter Storm Uri, left millions without power, water and heat for days as ERCOT struggled to prevent a grid collapse after the shutdown of an unusually large amount of generation, and bailout proposals soon surfaced in the Legislature as the market reeled.

Pablo Vegas, president and CEO of ERCOT, emphasized the grid has become more “volatile” given the current resources, as the Texas power grid faces recurring challenges.

“The complexities of managing a growing demand, and a very dynamic load environment with those types of resources becomes more and more challenging,” Vegas said Tuesday during a meeting of the ERCOT board of directors.

Vegas said one solution to overcome the challenge is investing in power production that is available on demand, like power plants fueled by natural gas. Those plants can help during times when the need for electricity strains the supply.

“With the passing of Proposition 7 on the ballot this November, we’ll see those incentives combined to incentivize a more balanced development strategy going forward,” Vegas told board members.

If Proposition 7 is passed by voters, it would enact S.B. 2627, which establishes an advisory committee to oversee the fund and the various projects it could be used for, amid severe-heat blackout risks that affect the broader U.S. $5 billion would be transferred from the General Revenue Fund to the Texas Energy Fund if Proposition 7 passes.

Opposition for Proposition 7 comes from the Lone Star chapter of the Sierra Club, an environmental organization based in Austin and which has issued a statement on Gov. Abbott's demands regarding grid policy. Cyrus Reed, conservation director of the Lone Star chapter, said the Texas energy fund is slated to benefit private utilities to build gas plants using taxpayer’s money.

 

Related News

View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Live Online & In-person Group Training

Advantages To Instructor-Led Training – Instructor-Led Course, Customized Training, Multiple Locations, Economical, CEU Credits, Course Discounts.

Request For Quotation

Whether you would prefer Live Online or In-Person instruction, our electrical training courses can be tailored to meet your company's specific requirements and delivered to your employees in one location or at various locations.