ERCOT considers request to raise rates

TVA Rates and Renewable Energy Scrutiny spotlights electricity rates, distributed energy resources, solar and wind deployment, natural gas plans, grid access charges, energy efficiency cuts, and House oversight of lobbying, FERC inquiries, and least-cost planning.

Key Points

A congressional probe into TVA pricing and practices affecting renewables, energy efficiency, and climate goals.

✅ House panel probes TVA rates, DER and solar policies.

✅ Efficiency programs cut; least-cost planning questioned.

✅ Inquiry on lobbying, hidden fees; FERC scrutiny.

The Tennessee Valley Authority is facing federal scrutiny about its electricity rates and climate action, amid ongoing debates over network profits in other markets.

Members of the House Committee on Energy and Commerce are “requesting information” from TVA about its ratepayer bills and “out of concern” that TVA is interfering with the deployment of renewable and distributed energy resources, even as companies such as Tesla explore electricity retail to expand customer options.

“The Committee is concerned that TVA’s business practices are inconsistent with these statutory requirements to the disadvantage of TVA’s ratepayers and the environment,” the committee said in a letter to TVA CEO Jeffrey Lyash.

The four committee members — U.S. Reps. Frank Pallone, Jr. (D-NJ), Bobby L. Rush (D-IL), Diana DeGette (D-CO), and Paul Tonko (D-NY) — suggested that Tennessee Valley residents pay too much for electricity despite TVA’s relatively low rates, even as regulators have, in other cases, scrutinized mergers like the Hydro One-Avista deal to safeguard ratepayers, underscoring similar concerns. In 2020, Tennessee residents had electric bills higher than the national average, while low-income residents in Memphis have historically faced one of the highest energy burdens in the U.S.

In 2018, TVA reduced its wholesale rate while adding a grid access charge on local power companies—and interfered with the adoption of solar energy. Internal TVA documents obtained through a Freedom of Information Act request by the Energy and Policy Institute revealed that TVA permitted local power companies to impose new fees on distributed solar generation to “lessen the potential decrease in TVA load that may occur through the adoption of [behind the meter] generation.”

Additionally, the committee said TVA is not prioritizing energy conservation and efficiency or “least-cost planning” that includes renewables, as seen in oversight such as the OEB's Hydro One rates decision emphasizing cost allocation. TVA reduced its energy efficiency programs by nearly two-thirds between 2014 and 2018 and cut its energy efficiency customer incentive programs.

At this time, TVA has not aligned its long-term planning with the Biden administration’s goal to achieve a carbon-free electricity sector by 2035. TVA’s generation mix, which is roughly 60% carbon-free, comprises 39% nuclear, 19% coal, 26% natural gas, 11% hydro, 3% wind and solar, and 1% energy efficiency programs, according to TVA.

The committee is “greatly concerned that TVA has invested comparatively little to date in deploying solar and wind energy, while at the same time considering investments in new natural gas generation.”

TVA has announced plans to shutter the Kingston and Cumberland coal plants and is evaluating whether to replace this generation with natural gas, which is a fossil fuel, while debates over grid privatization raise questions about consumer benefits. TVA’s coal and natural gas plants represent most of the largest sources of greenhouses emissions in Tennessee.

TVA responded with a statement without directly addressing the committee’s concerns. TVA said its “developing and implementing emerging technologies to drive toward net-zero emissions by 2050.”

The final question that the House committee posed is whether TVA is funding any political activity. In 2019, the committee questioned TVA about its membership to the now-disbanded Utility Air Regulatory Group, a coalition that was involved in over 200 lawsuits that primarily fought Clear Air Act regulations.

TVA revealed that it had contributed $7.3 million to the industry lobbying group since 2001. Since TVA doesn’t have shareholders, customers paid for UARG membership fees, echoing findings that deferred utility costs burden customers in other jurisdictions. An Office of the Inspector General investigation couldn’t prove whether TVA’s contributions directly funded litigation because UARG didn’t have a line-by-line accounting of what they did with TVA’s dollars.

The congressional committee questioned whether TVA is still paying for lobbying or litigation that opposes “public health and welfare regulations.”

This last question follows a recent trend of questioning utilities about “hidden fees.” In December, the Federal Energy Regulatory Commission issued a Notice of Inquiry to examine how bills from investor-owned utilities might contain fees that fund political activity, and regulators have penalized firms like NT Power over customer notice practices, highlighting consumer protection. The Center for Biological Diversity filed a petition to protect electric and gas customers of investor-owned utilities from paying these fees, which may be used for lobbying, campaign-related donations and litigation.

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Iran Bushehr Earthquake rattles southern province near the Bushehr nuclear power plant, USGS reports M5.1 at 38 km depth; seismic activity along major fault lines raises safety, damage, and monitoring concerns.

Key Points

A magnitude 5.1 quake near Bushehr nuclear plant at 38 km depth, with no damage reported, per USGS.

✅ USGS lists magnitude 5.1 at 38 km depth

✅ Near Bushehr nuclear power plant; built for stronger quakes

✅ Iran lies on major fault lines; quake risk is frequent

A magnitude 5 earthquake struck southern Iran early Friday near the Islamic Republic's only nuclear power plant. There were no immediate reports of damage or injuries as Iran continues combined-cycle conversions across its power sector.

The quake hit Iran's Bushehr province at 5:23 a.m., according to the U.S. Geological Survey. It put the magnitude at 5.1 and the depth of the earthquake at 38 kilometres (24 miles), in a province tied to efforts to transmit electricity to Europe in coming years.

Iranian state media did not immediately report on the quake. However, the Bushehr nuclear power plant was designed to withstand much stronger earthquakes, a notable consideration as Iraq plans nuclear power plants to address shortages.

A magnitude 5 earthquake can cause considerable damage, including power disruptions that have seen blackouts spark protests in some Iranian cities.

Iran sits on major fault lines and is prone to near-daily earthquakes, yet it remains a key player in regional power, with Iran-Iraq energy cooperation ongoing. In 2003, a 6.6-magnitude quake flattened the historic city of Bam, killing 26,000 people, and today Iran supplies 40% of Iraq's electricity through cross-border power deals. Bam is near the Bushehr nuclear plant, which wasn’t damaged at that time, while more recently Iran finalized deals to rehabilitate Iraq's power grid to improve resilience.

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Alberta Solar Energy Contracts secure low-cost photovoltaic PPAs for government operations, delivering renewable electricity at 4.8 cents/kWh, beating natural gas LCOE, enhancing summer grid efficiency across Hays, Tilley, and Jenner with Canadian Solar.

Key Points

Low-cost PV power agreements meeting 55% of Alberta government electricity demand via new Canadian Solar facilities.

✅ Price: 4.8 cents/kWh CAD, under gas-fired generation LCOE.

✅ Sites: Hays, Tilley, Jenner; 50% equity with Conklin Métis Local #193.

✅ Supplies 55% of provincial government electricity demand.

Three new solar electricity facilities to be built in south eastern Alberta (Canada) amid Alberta's solar growth have been selected through a competitive process to supply the Government of Alberta with 55 per cent of their annual electricity needs. The facilities will be built near Hays, Tilley, and Jenner, by Canadian Solar with Conklin Métis Local #193 as 50-percent equity owners.

The Government of Alberta's operations have been powered 100 per cent with wind power since 2007. Upon the expiration of some of these contracts, they have been renewed to switch from wind to solar energy. The average contract pricing will be $0.048 per kilowatt hour (3.6 cents/kWh USD), which is less than the average historical wholesale power pool price paid to natural gas-fired electricity in the province in years 2008 - 2018.

"The conversation about solar energy has long been fixated on its price competitiveness with fossil fuels," said John Gorman, CanSIA President & CEO. "Today's announcement demonstrates that low cost solar energy has arrived as a mainstream option in Alberta, even as demand for solar lags in Canada according to federal assessments. The conversation should next focus on how to optimize an all-of-the-above strategy for developing the province's renewable and non-renewable resources."

"This price discovery is monumental for the solar industry in Canada" said Patrick Bateman, CanSIA Director of Policy & Market Development. "At less than five cents per kilowatt hour, this solar electricity has a cost that is less than that of natural gas. Achieving Alberta's legislated 30 per cent by 2030 renewable electricity target just became a whole lot cheaper!".

Quick Facts:

• The contract price of 4.8 cents/kWh CAD to be paid by Alberta Infrastructure for this solar electricity represents a lower Levelized Cost of Electricity (LCOE) than the average annual wholesale price paid by the power pool to combined-cycle and single-cycle natural gas-fired electricity generation which was 7.1 cents/kWh and 11.2 cents/kWh respectively from 2008 - 2018.

• Alberta receives more hours of sunshine than Miami, Florida in the summer months. Alberta's electricity supply is most strained in summer, highlighting challenges for solar expansion when high temperatures increase the resistance of the distribution and transmission systems, and reduce the efficiency of cooling thermal power plants. For this reason, solar facilities sited near to electricity demand improves overall grid efficiency. Supply shortages are atypical in Alberta in winter when solar energy is least available. When they do occur, imports are increased and large loads are decreased.

• In 2018, Alberta's solar electricity generation exceeded 50 MW. While representing much less than 1% of the province's electricity supply today, the Canadian Solar Industries Association (CanSIA) forecasts that solar energy could supply as much as 3 per cent of the province's electricity by 2030, supporting renewable energy job growth across Alberta. A recent supply chain study of the solar electricity sector in Alberta by Solas Energy Consulting Inc. found a potential of $4.1 billion in market value and a labour force rising to 10,000 in 2030.

To learn more about solar energy and the best way for consumers to go solar, please visit the Canadian Solar Industries Association at www.CanSIA.ca.

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US SF6 Emissions Decline as NOAA analysis and EPA mitigation show progress, with atmospheric measurements and Greenhouse Gas Reporting verifying reductions from the electric power grid; sulfur hexafluoride's extreme global warming potential underscores inventory improvements.

Key Points

A documented drop in US sulfur hexafluoride emissions, confirmed by NOAA atmospheric data and EPA reporting reforms.

✅ NOAA towers and aircraft show 2007-2018 decline

✅ EPA reporting and utility mitigation narrowed inventory gaps

✅ Winter leaks and servicing signal further reduction options

A new NOAA analysis shows U.S. emissions of the super-potent greenhouse gas sulfur hexafluoride (SF6) have declined between 2007-2018, likely due to successful mitigation efforts by the Environmental Protection Agency (EPA) and the electric power industry, with attention to SF6 in the power industry across global markets. 

At the same time, significant disparities that existed previously between NOAA’s estimates, which are based on atmospheric measurements, and EPA’s estimates, which are based on a combination of reported emissions and industrial activity, have narrowed following the establishment of the EPA's Greenhouse Gas Reporting Program. The findings, published in the journal Atmospheric Chemistry and Physics, also suggest how additional emissions reductions might be achieved. 

SF6 is most commonly used as an electrical insulator in high-voltage equipment that transmits and distributes electricity, and its emissions have been increasing worldwide as electric power systems expand, even as regions hit milestones like California clean energy surpluses in recent years. Smaller amounts of SF6 are used in semiconductor manufacturing and in magnesium production. 

SF6 traps 25,000 times more heat than carbon dioxide over a 100-year time scale for equal amounts of emissions, and while CO2 emissions flatlined in 2019 globally, that comparison underscores the potency of SF6. That means a relatively small amount of the gas can have a significant impact on climate warming. Because of its extremely large global warming potential and long atmospheric lifetime, SF6 emissions will influence Earth’s climate for thousands of years.

In this study, researchers from NOAA’s Global Monitoring Laboratory, as record greenhouse gas concentrations drive demand for better data, working with colleagues at EPA, CIRES, and the University of Maryland, estimated U.S. SF6 emissions for the first time from atmospheric measurements collected at a network of tall towers and aircraft in NOAA’s Global Greenhouse Gas Reference Network. The researchers provided an estimate of SF6 emissions independent from the EPA’s estimate, which is based on reported SF6 emissions for some industrial facilities and on estimated SF6 emissions for others.

“We observed differences between our atmospheric estimates and the EPA’s activity-based estimates,” said study lead author Lei Hu, a Global Monitoring Laboratory researcher who was a CIRES scientist at the time of the study. “But by closely collaborating with the EPA, we were able to identify processes potentially responsible for a significant portion of this difference, highlighting ways to improve emission inventories and suggesting additional emission mitigation opportunities, such as forthcoming EPA carbon capture rules for power plants, in the future.” 

In the 1990s, the EPA launched voluntary partnerships with the electric power, where power-sector carbon emissions are falling as generation shifts, magnesium, and semiconductor industries to reduce SF6 emissions after the United States recognized that its emissions were significant. In 2011, large SF6 -emitting facilities were required to begin tracking and reporting their emissions under the EPA Greenhouse Gas Reporting Program. 

Hu and her colleagues documented a decline of about 60 percent in U.S. SF6 emissions between 2007-2018, amid global declines in coal-fired power in some years—equivalent to a reduction of between 6 and 20 million metric tons of CO2 emissions during that time period—likely due in part to the voluntary emission reduction partnerships and the EPA reporting requirement. A more modest declining trend has also been reported in the EPA’s national inventories submitted annually under the United Nations Framework Convention on Climate Change. 

Examining the differences between the NOAA and EPA independent estimates, the researchers found that the EPA’s past inventory analyses likely underestimated SF6 emissions from electrical power transmission and distribution facilities, and from a single SF6 production plant in Illinois. According to Hu, the research collaboration has likely improved the accuracy of the EPA inventories. The 2023 draft of the EPA’s U.S. Greenhouse Gas Emissions and Sinks: 1990-2021 used the results of this study to support revisions to its estimates of SF6 emissions from electrical transmission and distribution. 

The collaboration may also lead to improvements in the atmosphere-based estimates, helping NOAA identify how to expand or rework its network to better capture emitting industries or areas with significant emissions, according to Steve Montzka, senior scientist at GML and one of the paper’s authors.

Hu and her colleagues also found a seasonal variation in SF6 emissions from the atmosphere-based analysis, with higher emissions in winter than in summer. Industry representatives identified increased servicing of electrical power equipment in the southern states and leakage from aging brittle sealing materials in the equipment in northern states during winter as likely explanations for the enhanced wintertime emissions—findings that suggest opportunities for further emissions reductions.

“This is a great example of the future of greenhouse gas emission tracking, where inventory compilers and atmospheric scientists work together to better understand emissions and shed light on ways to further reduce them,” said Montzka.

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Alberta Electricity Market Reform reshapes policy under the UCP, weighing a capacity market versus energy-only design, AESO reliability rules, renewables targets, coal phase-out, carbon pricing, consumer rates, and investment certainty before AUC decisions.

Key Points

Alberta Electricity Market Reform is the UCP plan to reassess capacity vs energy-only, renewables, and carbon pricing.

✅ Reviews capacity market timeline and AESO procurement

✅ Alters subsidies for renewables; slows wind and solar growth

✅ Adjusts industrial carbon levy; audits Balancing Pool losses

Hearings kicked off this week into the future of the province’s electricity market design, amid an electricity market reshuffle pledged by the province, but a high-stakes decision about the industry’s fate — affecting billions of dollars in investment and consumer costs — won’t be made inside the meeting room of the Alberta Utilities Commission.

Instead, it will take place in the office of Jason Kenney, as the incoming premier prepares to pivot away from the seismic reforms to Alberta’s electricity sector introduced by the Notley government.

The United Conservative Party has promised to adopt market-based policies, reflecting changes to how Alberta produces and pays for power, that will reset how the sector operates, from its approach to renewable energy and carbon pricing to re-evaluating the planned transition to an electricity “capacity market.”

“Every ball in electricity is up in the air right now,” Vittoria Bellissimo, of the Industrial Power Consumers Association of Alberta, said Tuesday during a break in the commission hearings.

Industry players are uncertain how quickly the UCP will change direction on power policies, but there’s little doubt Kenney’s government will take a strikingly different approach to the sector that keeps the lights on in Alberta.

“There’s some things they are going to change that are going to impact the electricity industry significantly,” said Duane Reid-Carlson, chief executive of consultancy EDC Associates.

“But I don’t think it’s going to be upheaval. I think the new government will proceed with caution because electricity is the foundation of our economy.”

Alberta’s electricity market has been turned on its head in recent years due to the recession, power prices dropping to near two-decade lows and several transformative policies initiated by the NDP.

The Notley government’s climate plan included an accelerated phase-out of all coal-fired generation and set targets for more renewable energy.

The most significant, but least-understood, move has been the planned shift to an electricity capacity market in 2021.

Under the strategy, generators will no longer solely be paid for the power produced and sold into the market; they will also receive payments for having electricity capacity available to the grid on demand.

The change was recommended by the Alberta Electric System Operator (AESO) as a way to reduce price volatility and provide more reliability than the current energy-only market, which some argue needs more competition to deliver better outcomes.

The independent system operator and industry officials have spent more than two years planning the transition since the switch was announced in late 2016. Proposed rules for the new system, outlining market changes, are now being discussed at the Alberta Utilities Commission hearings.

However, there is no ironclad guarantee the system remake will go ahead following the UCP’s election victory last week — amid calls to scrap the overhaul from a Calgary retailer — it plans to study the issue further — while other substantive electricity changes are already in store.

The UCP has promised to end “costly subsidies” to renewable energy developments and abandon the NDP’s pledge to have such energy sources make up 30 per cent of all power generation by 2030.

It will remove the planned phase-out of coal-fired electricity generation, although federal regulations for a 2030 prohibition remain in place.

It will also ask the auditor general to conduct a special audit of the massive losses sustained by the province’s Balancing Pool due to power purchase arrangements being handed back to the agency three years ago.

While Kenney has pledged to cancel the provincewide carbon tax, a levy on large industrial greenhouse gas emitters (such has power plants) will still be charged, although at a reduced rate of $20 a tonne.

The biggest unknown remains the power market’s structure, which underpins how the entire system operates.

The UCP has promised to consult on the shift to the capacity market and report back to Albertans within 90 days.

The complex issue may sound like an eye-glazer, but it will have a profound effect on industry investment, as well as how much consumers pay on their monthly electricity bills.

A number of industry players worry the capacity market will lead AESO to procure more power than is necessary, foisting unnecessary costs onto all Albertans.

“I still have concerns for what the impact on consumers is going to be,” said energy market consultant Sheldon Fulton. “I’d love to see the capacity market go away.”

An analysis by EDC Associates found the transition to a capacity market will procure additional electricity before it’s needed, requiring consumers to pay up to 40 per cent more — an extra $1.4 billion — for power in 2021-22 than under the existing market structure.

“I don’t think there’s any prejudged outcome,” said Blake Shaffer, former head trader at TransAlta Corp. and a fellow-in-residence at the C.D. Howe Institute.

“But it really matters about getting this right.”

Evan Bahry, executive director of the Independent Power Producers Society of Alberta, said the fact the UCP’s review was confined to just 90 days is helpful, as it avoids throwing the entire industry into a prolonged period of uncertainty.

As for the greening of Alberta’s power grid, amid growing attention to clean grids and storage, the demise of the NDP’s Renewable Electricity Program will likely slow down the rapid pace of wind and solar development. But it’s unlikely to stop the growth trend as costs continue to fall for such developments.

“Renewables over the last number of years have evolved to the point that they make sense on a subsidy-free basis,” said Dan Balaban, CEO of Greengate Power Corp., which has developed 480 MW of wind power in Alberta and Ontario.

“There is a path to clean electricity ahead.”

Chris Varcoe is a Calgary Herald columnist.

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Germany EV Subsidy Cut triggers budget-crisis fallout in the automotive industry, after a constitutional court ruling; EV incentives end, threatening electromobility adoption, manufacturer competitiveness, 2030 targets, and demand amid Chinese competition and weak global growth.

Key Points

A sudden end to Germany's EV incentives due to a budget shortfall after a court ruling, hurting automakers and adoption.

✅ Ends buyer rebates amid budget crisis ruling

✅ Risks 2030 EV targets and industry competitiveness

✅ Weak demand and China competition intensify

The German government has faced a backlash after abruptly ending an electric car subsidy scheme in a blow to the already struggling automotive industry.

The scheme is one of the casualties of a budget crisis caused by a shock constitutional court ruling in November that upended the government's spending plans.

The economy ministry said Saturday that Sunday would be the last day prospective buyers could apply for the scheme, which paid out thousands of euros per customer to partially cover the cost of buying an electric car today.

A spokesman for the ministry admitted it was an "unfortunate situation" for consumers who had been hoping to take advantage of the subsidy, but it had no choice "because there is no longer enough money available."

Analyst Ferdinand Dudenhoeffer from the Center for Automotive Research warned the decision could have dramatic consequences amid a Europe EV slump already pressuring demand.

"The competitiveness of [auto] manufacturers will now be severely damaged," Dudenhoeffer told the Rheinische Post newspaper.

The Handelsblatt business daily had already warned that scrapping the scheme risked jeopardizing Germany's plans to get 15 million electric cars on the road by 2030, even though the EU EV share grew during lockdowns earlier in the pandemic.

"This goal was already considered extremely unrealistic. Now it seems completely illusory," it wrote.

In the UK, analysts warn that electric cars could cost more if a post-Brexit deal is not reached, underscoring wider market uncertainties.

A total of around 10 billion euros ($1.1 billion) has been paid out since 2016 under the scheme for around 2.1 million electric vehicles, according to the economy ministry.

Germany's flagship automotive industry, including Volkswagen, has been struggling with the transition to electromobility due to a weak global economy and low levels of demand.

In addition, it is facing a serious challenge from homegrown rivals in China, one of its most important markets, as France moves to discourage Chinese EVs with new rules.

"The Chinese are massively expanding their car industry because they have customers. Our manufacturers no longer have any," Dudenhoeffer said, as France's incentive rules make the market tougher for Chinese brands.

Germany's highest court decided last month that the government had broken a constitutional debt rule when it transferred 60 billion euros earmarked for pandemic support to a climate fund.

The bombshell ruling blew a huge hole in spending plans and plunged Chancellor Olaf Scholz's three-way coalition into turmoil.

After adopting an emergency budget for 2023, Scholz and his junior coalition partners battled for weeks before finally finding an agreement for 2024.

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