Blumenthal vows to fight FERC

By Knight Ridder Tribune


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Attorney General Richard Blumenthal predicted that the controversial Broadwater natural-gas platform in Long Island Sound will soon win approval by the Federal Energy Regulatory Commission.

Blumenthal, appearing with state lawmakers reviewing the proposed huge 1-billion-cubic-feet-per-day facility, said that when that happens, Connecticut will contest FERC.

"We will take the deficiencies in that federal approval and go to federal court as soon as we can," Blumenthal said. "Longer term, we're prepared to fight this battle as long and hard as necessary."

But until then, the governor's task force reviewing the proposal will attempt to persuade New York state officials that the liquefied natural gas (LNG) platform 10 miles off the coast of East Haven would be an environmental hazard and also vulnerable to seismic activity.

"We assume that New York officials are going to be hard-headed and realistic," Blumenthal said during an afternoon news conference in the Capitol complex. "They should have no interest in Broadwater. They should soundly reject Broadwater as abhorrent to New York citizens if there are realistic alternatives."

Connecticut also contends that there are better ways to get fuels to the metropolitan New York market than putting the Sound in jeopardy; and there are two other LNG pipelines, in less-critical locations, that could supply a total of 2.4-billion cubic f et a day. "If the law's enforced, Broadwater will never be built," Blumenthal said.

"And we will take every step in every forum, both state and federal, to make the courts enforce the law." Sen. Leonard A. Fasano, R-North Haven, one of the two co-chairmen of the task force, said the preliminary FERC ruling was "cursory" and failed to directly address criticism of the Broadwater proposal on its potential environmental vulnerability.

A mooring system that Connecticut officials believe is inadequate and that needs to dig farther down into bedrock than current plans are also part of the criticism. "FERC seems to be happy to say 'we'll deal with that at a later process,' " Fasano said.

"In our view it just doesn't go far enough. The purpose and scope of the project is defined such that the only project that can satisfy that purpose and scope is Broadwater."

Blumenthal called the FERC process "fatally deficient." Senate Minority Leader John McKinney, R-Fairfield, said energy consumers in New York and Connecticut have been offered "a false choice" between having Broadwater or not getting enough LNG.

"We know we need to get more natural gas and other energy forms to the people of New York, but they're not telling you the whole picture," McKinney said, stressing the need to persuade New York officials to oppose it over the next 60 days.

"There are environmentally better ways, cost-efficient ways of getting energy and natural gas to the people of the state of New York," McKinney said. "There are a host of other options that are better than siting the largest LNG platform in the world in Long Island Sound," McKinney said. "We cannot continue to commercialize Long Island Sound. We cannot say to the people of Connecticut and New York, recreational fishermen, boaters and everybody, all of us, that we're selling off Long Island Sound to the highest bidder."

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Oil crash only a foretaste of what awaits energy industry

Oil and Gas Profitability Decline reflects shale-driven oversupply, OPEC-Russia dynamics, LNG exports, renewables growth, and weak demand, signaling compressed margins for producers, stressed petrodollar budgets, and shifting energy markets post-Covid.

 

Key Points

A sustained squeeze on hydrocarbon margins from agile shale supply, weaker OPEC leverage, and expanding renewables.

✅ Shale responsiveness caps prices and erodes industry rents

✅ OPEC-Russia cuts face limited impact versus US supply

✅ Renewables and EVs slow long-term oil and gas demand

 

The oil-price crash of March 2020 will probably not last long. As in 2014, when the oil price dropped below $50 from $110 in a few weeks, this one will trigger a temporary collapse of the US shale industry. Unless the coronavirus outbreak causes Armageddon, cheap oil will also support policymakers’ efforts to help the global economy.

But there will be at least one important and lasting difference this time round — and it has major market and geopolitical implications.

The oil price crash is a foretaste of where the whole energy sector was going anyway — and that is down.

It may not look that way at first. Saudi Arabia will soon realise, as it did in 2015, that its lethal decision to pump more oil is not only killing US shale but its public finances as well. Riyadh will soon knock on Moscow’s door again. Once American shale supplies collapse, Russia will resume co-operation with Saudi Arabia.

With the world economy recovering from the Covid-19 crisis by then, and with electricity demand during COVID-19 shifting, moderate supply cuts by both countries will accelerate oil market recovery. In time, US shale producers will return too.

Yet this inevitable bounceback should not distract from two fundamental factors that were already remaking oil and gas markets. First, the shale revolution has fundamentally eroded industry profitability. Second, the renewables’ revolution will continue to depress growth in demand.

The combined result has put the profitability of the entire global hydrocarbon industry under pressure. That means fewer petrodollars to support oil-producing countries’ national budgets, including Canada's oil sector exposures. It also means less profitable oil companies, which traditionally make up a large segment of stock markets, an important component of so many western pension funds.

Start with the first factor to see why this is so. Historically, the geological advantages that made oil from countries such as Saudi Arabia so cheap to produce were unique. Because oil and gas were produced at costs far below the market price, the excess profits, or “rent”, enjoyed by the industry were very large.

Furthermore, collusion among low-cost producers has been a winning strategy. The loss of market share through output cuts was more than compensated by immediately higher prices. It was the raison d’être of Opec.

The US shale revolution changed all this, exposing the limits of U.S. energy dominance narratives. A large oil-producing region emerged with a remarkable ability to respond quickly to price changes and shrink its costs over time. Cutting back cheap Opec oil now only increases US supplies, with little effect on world prices.

That is why Russia refused to cut production this month. Even if its cuts did boost world prices — doubtful given the coronavirus outbreak’s huge shock to demand — that would slow the shrinkage of US shale that Moscow wants.

Shale has affected the natural gas industry even more. Exports of US liquefied natural gas now put an effective ceiling on global prices, and debates over a clean electricity push have intensified when gas prices spike.

On top of all this, there is also the renewables’ revolution, though a green revolution has not been guaranteed in the near term. Around the world, wind and solar have become ever-cheaper options to generate electricity. Storage costs have also dropped and network management improved. Even in the US, renewables are displacing coal and gas. Electrification of vehicle fleets will damp demand further, as U.S. electricity, gas, and EVs face evolving pressures.

Eliminating fossil fuel consumption completely would require sustained and costly government intervention, and reliability challenges such as coal and nuclear disruptions add to the complexity. That is far from certain. Meanwhile, though, market forces are depressing the sector’s usual profitability.

The end of oil and gas is not immediately around the corner. Still, the end of hydrocarbons as a lucrative industry is a distinct possibility. We are seeing that in dramatic form in the current oil price crash. But this collapse is merely a message from the future.

 

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NT Power Penalized $75,000 for Delayed Disconnection Notices

NT Power OEB Compliance Penalty highlights a $75,000 fine for improper disconnection notices, 14-day rule violations, process oversight failures, refunds, LEAP support, and corrective training to strengthen consumer protection and regulatory adherence in Ontario areas.

 

Key Points

A $75,000 OEB fine to NT Power for improper disconnection notices; refunds, LEAP support, and improved compliance.

✅ $75k administrative monetary penalty; $25k LEAP donation; refunds

✅ 870 notices misdated; 14-day rule training implemented

✅ 10 disconnects reconnected; $100 goodwill credits

 

The Ontario Energy Board recently ruled against Newmarket-Tay Power Distribution Ltd. (NT Power), fining them $75,000 for failing to issue timely disconnection notices to 870 customers between April and August 2022. These notices did not comply with the Ontario Energy Board's distribution system code, similar to standards reaffirmed in the OEB decision on Hydro One rates earlier this year, which mandates a minimum 14-day notice period before disconnection.

Out of the affected customers, ten had their electricity services disconnected, and six were additionally charged reconnection fees. However, NT Power has since reconnected all disconnected customers and refunded the reconnection fees, as confirmed by the Ontario Energy Board.

In response to these issues, NT Power has voluntarily accepted an assurance of compliance. This agreement stipulates that NT Power will pay a $75,000 administrative monetary penalty. Furthermore, they will make an additional payment of $25,000 to the Salvation Army's Northridge Community Church, which administers the Low-income Energy Assistance Program (LEAP) within NT Power's service area, aligning with broader efforts to reduce costs for industry highlighted by Canadian Manufacturers & Exporters recently, according to the association.

This is not the first time NT Power has faced compliance issues in this regard. The utility company admitted that this incident marks the second instance in three years where they failed to adhere to their disconnection-related obligations as outlined in the code, and sector governance debates, including the Manitoba Hydro board debate, underscore how oversight remains a national focus.

In a statement to NewmarketToday, NT Power acknowledged a similar issue three years ago when they were alerted to problems with their disconnection process. They promptly made adjustments to align their in-house procedures with the requirements of the Ontario Energy Board. Unfortunately, they neglected to implement a secondary check, leading to disconnect notices being dated a few days too early.

Alex Braletic, NT Power's Vice President of Engineering and Operation, clarified that no customers were actually disconnected prematurely, and debates over paying for electricity in India illustrate how enforcement challenges differ globally, but the issued letters contained inaccuracies. He added that NT Power has since instituted additional verification procedures to prevent such errors from occurring again.

The Ontario Energy Board emphasized that NT Power has assured them that corrective measures have been taken to ensure that their staff involved in the disconnection process receive proper training and management oversight, and recent market reactions such as Hydro One shares falling after leadership changes underscore the importance of strong governance to guarantee compliance with regulatory requirements.

Brian Hewson, Vice President of Consumer Protection and Industry Performance at the Ontario Energy Board, stated, referencing earlier Ontario rate reductions for businesses that complemented consumer protections, "As a result of the actions we have taken and NT Power’s assurance that it is aware of its obligations and has taken steps to improve its processes, consumers will be better protected."

Braletic encouraged NT Power's customers who are facing difficulties paying their electricity bills to reach out to their customer service department or visit their website. He emphasized that various programs and services are available to provide relief for bills, and amid ongoing Toronto Hydro impersonation scams customers should contact NT Power directly. NT Power is committed to collaborating with customers proactively and connecting them with assistance to avoid serving them with disconnection notices.

Furthermore, NT Power plans to send a letter to the ten affected customers and provide each of them with a $100 bill credit as a goodwill gesture.

 

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Alberta Proposes Electricity Market Changes

Alberta Electricity Market Reforms aim to boost grid reliability and efficiency through a day-ahead market, transmission policy changes, clearer pricing signals, AESO oversight, and smarter siting near existing infrastructure to lower consumer costs.

 

Key Points

Policies add a day-ahead market and transmission fees to modernize the grid and improve reliability.

✅ Day-ahead market for clearer pricing and scheduling

✅ Up-front, non-refundable transmission payments by generators

✅ AESO to draft new rules by end of 2025

 

The Alberta government is implementing significant electricity policy changes to its electricity market to enhance system reliability and efficiency. These reforms aim to modernize the grid, accommodate growing energy demands, and align with best practices observed in other jurisdictions.

Proposed Market Reforms

The government has outlined several key initiatives:

  • Day-Ahead Market Implementation: Introducing a day-ahead market is intended to provide clearer pricing signals and improve the scheduling of electricity generation. This approach allows market participants to plan and commit to energy production in advance, enhancing grid stability.

  • Transmission Policy Revisions: The government proposes reforms to transmission policies, including the introduction of up-front and non-refundable transmission payments from new power generators. These payments would vary based on the proximity of new generators to existing transmission lines with available capacity. As part of a broader market overhaul, this strategy encourages the development of power plants in areas where existing infrastructure can be utilized, potentially reducing costs for consumers and businesses.

Government's Objectives

Minister of Affordability and Utilities, Nathan Neudorf, emphasized that these changes are necessary to meet growing energy demands and modernize Alberta’s electricity system. The government's goal is to create a more reliable and efficient electrical system that benefits both consumers and the broader economy.

Industry Reactions

The proposed reforms have elicited mixed reactions from industry stakeholders amid profound sector change across Alberta:

  • Renewable Energy Sector Concerns: The Canadian Renewable Energy Association (CanREA) has expressed concerns about the potential for punitive market and transmission changes, and some retailers have similarly urged caution. They advocate for policies that support the integration of renewable energy sources and ensure fair treatment within the market.

  • Regulatory Oversight: The Alberta Electric System Operator (AESO) is tasked with preparing restructured energy market rules by the end of 2025. This timeline reflects the government's commitment to a thorough and consultative approach to market reform.

Implications for Consumers

The Alberta government's proposed market changes aim to enhance the reliability and efficiency of the electricity system by considering measures such as a Rate of Last Resort to provide additional stability. By encouraging the development of power plants in areas with existing infrastructure, the reforms seek to reduce costs for consumers and businesses. However, the success of these initiatives will depend on careful implementation and ongoing engagement with all stakeholders to balance the diverse interests involved.

Alberta's proposed electricity market reforms represent a significant step toward modernizing the province's energy infrastructure. By introducing a day-ahead market and revising transmission policies, the government aims to create a more reliable and efficient electrical system and promote market competition more effectively. While these changes have generated diverse reactions, they underscore the government's commitment to addressing the evolving energy needs of Alberta's residents and businesses.

 

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Demise of nuclear plant plans ‘devastating’ to Welsh economy, MP claims

Wylfa Nuclear Project Cancellation reflects Hitachi's withdrawal, pulling £16bn from North Wales, risking jobs, reshaping UK nuclear power plans as renewables grow and Chinese involvement rises amid shifting energy market policies.

 

Key Points

An indefinite halt to Hitachi's Wylfa Newydd nuclear plant, removing about £16bn investment and jobs from North Wales.

✅ Hitachi withdraws funding amid changing energy market costs

✅ Puts 400 local roles and up to 10,000 construction jobs at risk

✅ UK shifts toward renewables as nuclear project support stalls

 

Chris Ruane said Japanese firm Hitachi’s announcement this morning about the Wylfa project would take £16 billion of investment out of the region.

He said it was the latest in a list of energy projects which had been scrapped as he responded to a statement from business secretary Greg Clark.

Mr Ruane, the Labour member for the Vale of Clywd, said: “In his statement he said the Government are relying now more on renewables, can I put the North Wales picture to him; 1,500 wind turbines were planned off the coast of North Wales. They were removed, those plans were cancelled by the private sector.

“The tidal lagoons for Wales were key to the development of the Welsh economy – the Government itself pulled the support for the Swansea Bay tidal lagoon. That had a knock-on effect for the huge lagoon planned off the coast of North Wales.

“And now today we hear of the cancellation of a £16 billion investment in the North Wales economy. This will devastate the North Wales economy. The people of North Wales need to know that the Prime Minister is batting for them and batting for the UK.”

Mr Clark blamed the changing landscape of the energy market for today’s announcement, and said Wales has been a “substantial and proud leader” in renewable energy during the UK’s green industrial revolution over recent years.

But another Labour MP from North Wales, Albert Owen, of Ynys Mon, said the Wylfa plant’s cancellation in his constituency is putting 400 jobs at risk, as well as the “potential of 8-10,000 construction jobs”, as well as hundreds of operational jobs and 33 apprenticeships.

He asked Mr Clark: “Can I say straightly can we work together to keep this project alive, to ensure that we create the momentum so it can be ready for a future developer or this developer with the right mechanism?”

The minister replied that he and his officials would “work together in a completely open-book way on the options” to try and salvage the project.

But in the Lords, Labour former security minister Lord West of Spithead said the UK’s nuclear industry was in crisis, noting that Europe is losing nuclear power as well.

“In the 1950s our nation led the world in nuclear power generation and decisions by successive governments, of all hues, have got us in the position today where we cannot even construct a large civil nuclear reaction,” he told peers at question time.

Lord West asked: “Are we content that now the only player seems to be Chinese and that by 2035… we are happy for the Chinese to control one third of the energy supply of our nation?”

Business, Energy and Industrial Strategy minister Lord Henley said the Government had hoped for a better announcement from Hitachi but that was not the case.

He said costs in the nuclear sector were rising, amid setbacks at Hinkley Point C, while costs for many renewables were coming down and this was one of the reasons for the problem.

Tory former energy secretary Lord Howell of Guildford said the Chinese were in “pole position” for the rebuilding and replacement “of our nuclear fleet” and this would have a major impact on UK energy policy and plans to meet net zero targets in the 2030s.

Plaid Cymru’s Lord Wigley warned that putting the Wylfa Newydd on indefinite hold would cause economic planning blight in north-west Wales and urged the Government to raise the level of support allocated to the region.

Lord Henley acknowledged the announcement was not welcome but added: “We remain committed to nuclear power. We will look to see what we can do. We still have a great deal of expertise in this country and we can work on that.”

 

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Two new electricity interconnectors planned for UK

Ofgem UK Electricity Interconnectors will channel subsea cables, linking Europe, enabling energy import/export, integrating offshore wind via multiple-purpose interconnectors, boosting grid stability, capacity, and investment under National Grid analysis to 2030 targets.

 

Key Points

Subsea links between the UK and Europe that trade power, integrate offshore wind, and reinforce grid capacity.

✅ Two new subsea interconnector bids open in 2025

✅ Pilot for multiple-purpose links to offshore wind clusters

✅ National Grid to assess optimal routes, capacity, and locations

 

Ofgem has opened bids to build two electricity interconnectors between the UK and continental Europe as part of the broader UK grid transformation now underway.

The energy regulator said this would “bring forward billions of pounds of investment” in the subsea cables, such as the Lake Erie Connector, which can import cheaper energy when needed and export surplus power from the UK when it is available.

Developers will be invited to submit bids to build the interconnectors next year. Ofgem will additionally run a pilot scheme for ‘multiple-purpose interconnectors’, which are used to link clusters of offshore wind farms and related innovations like an offshore vessel chargepoint to an interconnector.

This forms part of the UK Government drive to more than double capacity by 2030, and to manage rising electric-vehicle demand, as discussed in EV grid impacts, in support of its target of quadrupling offshore wind capacity by the same date.

Interconnectors provide some 7 per cent of UK electricity demand. The UK so far has seven electricity interconnectors linked to Ireland, France, Belgium, the Netherlands and Norway, while projects like the Ireland-France connection illustrate broader European grid integration.

Balfour Beatty won a £90m contract for onshore civil engineering works on the Viking Link Norway interconnector, which is due to come into operation in 2023, while London Gateway's all-electric berth highlights related port electrification.

It said that interconnector developers have in the past been allowed to propose their preferred design, connection location and sea route to the connecting country. Ofgem has now said it may decide to consider only those projects that meet its requirements based on an analysis of location and capacity needs by National Grid.

Ofgem has not specified that the new interconnectors must link to any specific place or country, but may do so later, as priorities like the Cyprus electricity highway illustrate emerging directions.

 

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Japanese utilities buy into vast offshore wind farm in UK

Japan Offshore Wind Investment signals Japanese utilities entering UK offshore wind, as J-Power and Kansai Electric buy into Innogy's Triton Knoll, leveraging North Sea expertise, 9.5MW turbines, and 15-year fixed-rate contracts.

 

Key Points

Japanese utilities buying UK offshore wind stakes to import expertise, as J-Power and Kansai join Innogy's Triton Knoll.

✅ $900M deal: J-Power 25%, Kansai Electric ~16% in Innogy unit

✅ Triton Knoll: 860MW, up to 90 9.5MW turbines, 15-year fixed PPA

✅ Goal: Transfer North Sea expertise to develop Japan offshore wind

 

Two of Japan's biggest power companies will buy around 40% of a German-owned developer of offshore wind farms in the U.K., seeking to learn from Britain's lead in this sector, as highlighted by a UK offshore wind milestone this week, and bring the know-how back home.

Tokyo-based Electric Power Development, better known as J-Power, will join Osaka regional utility Kansai Electric Power in investing in a unit of Germany's Innogy.

The deal, estimated to be worth around $900 million, will give J-Power a 25% stake and Kansai Electric a roughly 16% share. It will mark the first investment in an offshore wind project by Japanese power companies, as other markets shift strategies, with Poland backing wind over nuclear signaling broader momentum.

Innogy plans to start up the 860-megawatt Triton Knoll offshore wind project -- one of the biggest of its kind in the world -- in the North Sea in 2021. The vast installation will have up to 90 9.5MW turbines and sell its output to local utilities under a 15-year fixed-rate contract.

J-Power, which supplies mainly fossil-fuel-based electricity to Japanese regional utilities, will set up a subsidiary backed by the government-run Development Bank of Japan to participate in the Innogy project. Engineers will study firsthand construction and maintenance methods.

While land-based wind turbines are proliferating worldwide, offshore wind farms have progressed mainly in Europe, though U.S. offshore wind competitiveness is improving in key markets. Installed capacity totaled more than 18,000MW at the end of 2017, which at maximum capacity can produce as much power as 18 nuclear reactors.

Japan has hardly any offshore wind farms in commercial operation, and has little in the way of engineering know-how in this field or infrastructure for linking such installations to the land power grid, with a recent Japan grid blackout analysis underscoring these challenges. But there are plans for a total of 4,000MW of offshore wind power capacity, including projects under feasibility studies.

J-Power set up a renewable energy division in June to look for opportunities to expand into wind and geothermal energy in Japan, and efforts like a Japan hydrogen energy system are emerging to support decarbonization. Kansai Electric also seeks know-how for increasing its reliance on renewable energy, even as it hurries to restart idled nuclear reactors.

They are not the only Japanese investors is in this field. In Asia, trading house Marubeni will invest in a Taiwanese venture with plans for a 600MW offshore wind farm.

 

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