TXU Energy Co. closes nine generators

By Dallas Morning News


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TXU Energy Co. has closed nine generators at two plants and is buying its way out of an agreement to purchase electricity from two other plants, parent TXU Corp. said recently.

In a filing with the Securities and Exchange Commission, TXU said that it will record a $156 million noncash charge in the fourth quarter of 2004, or $102 million after taxes, as a result of closing the nine combustion turbines in Ward County and Hood County.

In addition, it paid $172 million to end its agreement to buy power from ExTex LaPorte LP, an Exelon Corp. partnership that bought TXU's Mountain Creek plant in Dallas and Handley plant in Fort Worth in December 2001 for $443 million.

The ExTex agreement will bring a fourth-quarter 2004 charge of $43 million, or $28 million after taxes. TXU estimated it will save $22 million in lower energy costs in 2005 and 2006 by exiting the agreement, which was due to expire in 2006.

TXU is shutting down five generating units in West Texas, in Ward County, and four units at TXU's DeCordova facility in Hood County. They use combustion turbines, in which burning gas spins the turbines that generate electricity.

The Dallas and Fort Worth facilities are gas-fired as well, but the burning gas heats water to create steam to turn the turbines.

The decision affects more than 2,900 megawatts of generating capacity now bought or generated by TXU. However, TXU spokesman Rand LaVonn said the company has confidence it can save money through the moves.

"Energy prices are such that we could purchase energy on the open market at a more economical rate than we could generate through these combustion turbines," Mr. LaVonn said. "But we know these are good units, and so TXU Power is opening the possibility to a sublease."

Although TXU closed the combustion turbine units on Thursday, it continues to operate gas-fired steam turbines at both the Ward County and Hood County plants.

In the market Economics were also the key factor in deciding to get out of the agreements to buy power from Handley and Mountain Creek plants, Mr. LaVonn said.

"What it means is that we can go out into the market and purchase energy at a more economical rate, whether it be from that company or from another company," he said.

Despite the charges, TXU isn't changing its earnings guidance for 2004 or 2005, Mr. LaVonn said.

In its filing, TXU raised the possibility that it could sublease the Ward and Hood county facilities to other operators or simply mothball the units. The generating units were installed in 1988 and 1990.

TXU also said it plans to invite other companies to buy, lease or operate other generating units it currently owns. It is considering which of its gas-fired steam generators to include in its request for proposals.

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Duke Energy reaffirms capital investments in renewables and grid projects to deliver cleaner energy, economic growth

Duke Energy Clean Energy Strategy advances renewables, battery storage, grid modernization, and energy efficiency to cut carbon, retire coal, and target net-zero by 2050 across the Carolinas with robust IRPs and capital investments.

 

Key Points

Plan to expand renewables, storage, and grid upgrades to cut carbon and reach net-zero electricity by 2050.

✅ 56B investment in renewables, storage, and grid modernization

✅ Targets 50% carbon reduction by 2030 and net-zero by 2050

✅ Retires coal units; expands energy efficiency and IRPs

 

Duke Energy says that the company will continue advancing its ambitious clean energy goals without the Atlantic Coast Pipeline (ACP) by investing in renewables, battery storage, energy efficiency programs and grid projects that support U.S. electrification efforts.

Duke Energy, the nation's largest electric utility, unveils its new logo. (PRNewsFoto/Duke Energy) (PRNewsfoto/Duke Energy)

Duke Energy's $56 billion capital investment plan will deliver significant customer benefits and create jobs at a time when policymakers at all levels are looking for ways to rebuild the economy in 2020 and beyond. These investments will deliver cleaner energy for customers and communities while enhancing the energy grid to provide greater reliability and resiliency.

"Sustainability and the reduction of carbon emissions are closely tied to our region's success," said Lynn Good, Duke Energy Chair, President and CEO. "In our recent Climate Report, we shared a vision of a cleaner electricity future with an increasing focus on renewables and battery storage in addition to a diverse mix of zero-carbon nuclear, natural gas, hydro and energy efficiency programs.

"Achieving this clean energy vision will require all of us working together to develop a plan that is smart, equitable and ensures the reliability and affordability that will spur economic growth in the region. While we're disappointed that we're not able to move forward with ACP, we will continue exploring ways to help our customers and communities, particularly in eastern North Carolina where the need is great," said Good.

Already a clean-energy leader, Duke Energy has reduced its carbon emissions by 39% from 2005 and remains on track to cut its carbon emissions by at least 50% by 2030, as peers like Alliant's carbon-neutral plan demonstrate broader industry momentum toward decarbonization. The company also has an ambitious clean energy goal of reaching net-zero emissions from electricity generation by 2050. 

In September 2020, Duke Energy plans to file its Integrated Resource Plans (IRP) for the Carolinas after an extensive process of working with the state's leaders, policymakers, customers and other stakeholders. The IRPs will include multiple scenarios to support a path to a cleaner energy future in the Carolinas, reflecting key utility trends shaping resource planning.

Since 2010, Duke Energy has retired 51 coal units totaling more than 6,500 megawatts (MW) and plans to retire at least an additional 900 MW by the end of 2024. In 2019, the company proposed to shorten the book lives of another approximately 7,700 MW of coal capacity in North Carolina and Indiana.

Duke Energy will host an analyst call in early August 2020 to discuss second quarter 2020 financial results and other business and financial updates. The company will also host its inaugural Environmental, Social and Governance (ESG) investor day in October 2020.

 

Duke Energy

Duke Energy is transforming its customers' experience, modernizing the energy grid, generating cleaner energy and expanding natural gas infrastructure to create a smarter energy future for the people and communities it serves. The Electric Utilities and Infrastructure unit's regulated utilities serve 7.8 million retail electric customers in six states: North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky. The Gas Utilities and Infrastructure unit distributes natural gas to 1.6 million customers in five states: North Carolina, South Carolina, Tennessee, Ohio and Kentucky. The Duke Energy Renewables unit operates wind and solar generation facilities across the U.S., as well as energy storage and microgrid projects.

Duke Energy was named to Fortune's 2020 "World's Most Admired Companies" list and Forbes' "America's Best Employers" list. More information about the company is available at duke-energy.com. The Duke Energy News Center contains news releases, fact sheets, photos, videos and other materials. Duke Energy's illumination features stories about people, innovations, community topics and environmental issues. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook.

 

Forward-Looking Information

This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on management's beliefs and assumptions and can often be identified by terms and phrases that include "anticipate," "believe," "intend," "estimate," "expect," "continue," "should," "could," "may," "plan," "project," "predict," "will," "potential," "forecast," "target," "guidance," "outlook" or other similar terminology. Various factors may cause actual results to be materially different than the suggested outcomes within forward-looking statements; accordingly, there is no assurance that such results will be realized. These factors include, but are not limited to:

  • The impact of the COVID-19 electricity demand shift on operations and revenues;
  • State, federal and foreign legislative and regulatory initiatives, including costs of compliance with existing and future environmental requirements, including those related to climate change, as well as rulings that affect cost and investment recovery or have an impact on rate structures or market prices;
  • The extent and timing of costs and liabilities to comply with federal and state laws, regulations and legal requirements related to coal ash remediation, including amounts for required closure of certain ash impoundments, are uncertain and difficult to estimate;
  • The ability to recover eligible costs, including amounts associated with coal ash impoundment retirement obligations and costs related to significant weather events, and to earn an adequate return on investment through rate case proceedings and the regulatory process;
  • The costs of decommissioning nuclear facilities could prove to be more extensive than amounts estimated and all costs may not be fully recoverable through the regulatory process;
  • Costs and effects of legal and administrative proceedings, settlements, investigations and claims;
  • Industrial, commercial and residential growth or decline in service territories or customer bases resulting from sustained downturns of the economy and the economic health of our service territories or variations in customer usage patterns, including energy efficiency and demand response efforts and use of alternative energy sources, such as self-generation and distributed generation technologies;
  • Federal and state regulations, laws and other efforts designed to promote and expand the use of energy efficiency measures and distributed generation technologies, such as private solar and battery storage, in Duke Energy service territories could result in customers leaving the electric distribution system, excess generation resources as well as stranded costs;
  • Advancements in technology;
  • Additional competition in electric and natural gas markets and continued industry consolidation;
  • The influence of weather and other natural phenomena on operations, including the economic, operational and other effects of severe storms, hurricanes, droughts, earthquakes and tornadoes, including extreme weather associated with climate change;
  • The ability to successfully operate electric generating facilities and deliver electricity to customers including direct or indirect effects to the company resulting from an incident that affects the U.S. electric grid or generating resources;
  • The ability to obtain the necessary permits and approvals and to complete necessary or desirable pipeline expansion or infrastructure projects in our natural gas business;
  • Operational interruptions to our natural gas distribution and transmission activities;
  • The availability of adequate interstate pipeline transportation capacity and natural gas supply;
  • The impact on facilities and business from a terrorist attack, cybersecurity threats, data security breaches, operational accidents, information technology failures or other catastrophic events, such as fires, explosions, pandemic health events or other similar occurrences;
  • The inherent risks associated with the operation of nuclear facilities, including environmental, health, safety, regulatory and financial risks, including the financial stability of third-party service providers;
  • The timing and extent of changes in commodity prices and interest rates and the ability to recover such costs through the regulatory process, where appropriate, and their impact on liquidity positions and the value of underlying assets;
  • The results of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings, interest rate fluctuations, compliance with debt covenants and conditions and general market and economic conditions;
  • Credit ratings of the Duke Energy Registrants may be different from what is expected;
  • Declines in the market prices of equity and fixed-income securities and resultant cash funding requirements for defined benefit pension plans, other post-retirement benefit plans and nuclear decommissioning trust funds;
  • Construction and development risks associated with the completion of the Duke Energy Registrants' capital investment projects, including risks related to financing, obtaining and complying with terms of permits, meeting construction budgets and schedules and satisfying operating and environmental performance standards, as well as the ability to recover costs from customers in a timely manner, or at all;
  • Changes in rules for regional transmission organizations, including FERC debates on coal and nuclear subsidies and new and evolving capacity markets, and risks related to obligations created by the default of other participants;
  • The ability to control operation and maintenance costs;
  • The level of creditworthiness of counterparties to transactions;
  • The ability to obtain adequate insurance at acceptable costs;
  • Employee workforce factors, including the potential inability to attract and retain key personnel;
  • The ability of subsidiaries to pay dividends or distributions to Duke Energy Corporation holding company (the Parent);
  • The performance of projects undertaken by our nonregulated businesses and the success of efforts to invest in and develop new opportunities;
  • The effect of accounting pronouncements issued periodically by accounting standard-setting bodies;
  • The impact of U.S. tax legislation to our financial condition, results of operations or cash flows and our credit ratings;
  • The impacts from potential impairments of goodwill or equity method investment carrying values; and
  • The ability to implement our business strategy, including enhancing existing technology systems.
  • Additional risks and uncertainties are identified and discussed in the Duke Energy Registrants' reports filed with the SEC and available at the SEC's website at sec.gov. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than described. Forward-looking statements speak only as of the date they are made and the Duke Energy Registrants expressly disclaim an obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

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Transmission constraints impede incremental Quebec-to-US power deliveries

Hydro-Québec Northeast Clean Energy Transmission delivers surplus hydropower via HVDC interconnections to New York and New England, leveraging long-term contracts and projects like CHPE and NECEC to support carbon-free goals, GHG cuts, and grid reliability.

 

Key Points

An initiative to expand HVDC links for Quebec hydropower exports, aiding New York and New England decarbonization.

✅ 37,000 MW hydro capacity enables firm, low-carbon exports

✅ Targets NY and NE via CHPE, NECEC, and upgraded interfaces

✅ Backed by long-term PPAs to reduce merchant transmission risk

 

With roughly 37,000 MW of installed hydro power capacity, Quebec has ample spare capacity that it would like to deliver into Northeastern US markets where ambitious clean energy goals have been announced, but expanding transmission infrastructure is challenging.

Register Now New York recently announced a goal of receiving 100% carbon-free energy by 2040 and the New England states all have ambitious greenhouse gas reduction goals, including a Massachusetts law requiring GHG emissions be 80% below 1990 levels by 2050.

The province-owned company, Hydro Quebec, supplies power to the provinces of Quebec, Ontario and New Brunswick in particular, as well as sending electricity directly into New York and New England. The power transmission interconnections between New York and New England have reached capacity and in order to increase export volumes into the US, "we need to build more transmission infrastructure," Gary Sutherland, relationship manager in business development, recently said during a presentation to reporters in Montreal.

 

TRANSMISSION OPTIONS

Hydro Quebec is working with US transmission developers, electric distribution companies, independent system operators and state government agencies to expand that transmission capacity in order to delivery more power from its hydro system to the US, as the province has closed the door on nuclear power and continues to prioritize hydropower, Sutherland said.

The company is looking to sign long-term power supply contracts that could help alleviate some of the investment risk associated with these large infrastructure projects.

"It`s interesting to recall that in the 1980s, two decade-long contracts paved the way for construction of Phase II of the multi-terminal direct-current system (MTDCS), a cross-border line that delivers up to 2,000 MW from northern Quebec to New England," Hydro Quebec spokeswoman Lynn St-Laurent said in an email.

Long-term prices have been persistently low since 2012, following the shale gas boom and the economic decline in 2008-2009, St-Laurent said. "As such, investment risks are too high for merchant transmission projects," she said.

Northeast power market fundamentals "remain strong for long-term contracts," on transmission projects or equipment upgrades that can deliver clean power from Quebec and "help our neighbors reach their ambitious clean energy goals," St-Laurent said.

 

NEW ENGLAND

In March 2017 an HQ proposal was selected by Massachusetts regulators to supply 9.45 TWh of firm energy to be delivered for 20 years. HQ`s proposal consisted of hydro power supply and possible transmission scenarios developed in conjunction with US partners.

The two leading options include a route through New Hampshire called Northern Pass and New England Clean Energy Connect through Maine.

The New Hampshire Site Evaluation Committee in March 2018 voted unanimously to deny approval of the $1.6 billion Northern Pass Transmission project, which is a joint venture between HQ and Eversource Energy`s transmission business. Eversource has been fighting the decision, with the New Hampshire Supreme Court accepting the company`s appeal of the NHSEC decision in October.

Briefs are being filed and oral arguments are likely to begin late spring or early summer, spokesman William Hinkle said in an email Tuesday.

After the Northern Pass permitting delay, Massachusetts chose the New England Clean Energy Connect project, which is a projected 1,200 MW transmission line, with 1,090 MW contracted to Massachusetts, leaving 110 MW for use on a merchant basis, according to St-Laurent.

NECEC is a joint venture between HQ and Central Maine Power, which is a subsidiary of Avangrid, a company affiliated with Spain`s Iberdrola. The NECEC project has received opposition from some environmental groups and still needs several state and federal permits.

 

NEW YORK

"The 5% of New York`s load that we furnish year in and year out ... is mostly going into the north of the state, it`s not coming down here," Sutherland said during a discussion at Pace University in New York City in 2017.

One potential project moving through the permitting phase, is the $2.2 billion, 1,000-MW Champlain Hudson Power Express transmission line being pursued by Transmission Developers -- a Blackstone portfolio company -- that would transport power from Quebec to Queens, New York.

Under New York`s proposed Climate Leadership Act which calls for the 100% carbon-free energy goal, renewable generation eligibility would be determined by the Public Service Commission. The PSC did not respond to a question about whether hydro power from Quebec is being considered as a potential option for meeting the state`s clean energy goal.

 

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Is tidal energy the surge remote coastal communities need?

BC Tidal Energy Micro-Grids harness predictable tidal currents to replace diesel in remote Indigenous coastal communities, integrating marine renewables, storage, and demand management for resilient off-grid power along Vancouver Island and Haida Gwaii.

 

Key Points

Community-run tidal turbines and storage deliver reliable, diesel-free electricity to remote B.C. coastal communities.

✅ Predictable power from tidal currents reduces diesel dependence

✅ Integrates storage, demand management, and microgrid controls

✅ Local jobs via marine supply chains and community ownership

 

Many remote West Coast communities are reliant on diesel for electricity generation, which poses a number of negative economic and environmental effects.

But some sites along B.C.’s extensive coastline are ideal for tidal energy micro-grids that may well be the answer for off-grid communities to generate clean power, suggested experts at a COAST (Centre for Ocean Applied Sustainable Technologies) virtual event Wednesday.

There are 40 isolated coastal communities, many Indigenous communities, and 32 of them are primarily reliant on diesel for electricity generation, said Ben Whitby, program manager at PRIMED, a marine renewable energy research lab at the University of Victoria (UVic).

Besides being a costly and unreliable source of energy, there are environmental and community health considerations associated with shipping diesel to remote communities and running generators, Whitby said.

“It's not purely an economic question,” he said.

“You've got the emissions associated with diesel generation. There's also the risks of transporting diesel … and sometimes in a lot of remote communities on Vancouver Island, when deliveries of diesel don't come through, they end up with no power for three or four days at a time.”

The Heiltsuk First Nation, which suffered a 110,000-litre diesel spill in its territorial waters in 2016, is an unfortunate case study for the potential environmental, social, and cultural risks remote coastal communities face from the transport of fossil fuels along the rough shoreline.

A U.S. barge hauling fuel for coastal communities in Alaska ran aground in Gale Pass, fouling a sacred and primary Heiltsuk food-harvesting area.

There are a number of potential tidal energy sites near off-grid communities along the mainland, on both sides of Vancouver Island, and in the Haida Gwaii region, Whitby said.

Tidal energy exploits the natural ebb and flow of the coast’s tidal water using technologies like underwater kite turbines to capture currents, and is a highly predictable source of renewable energy, he said.

Micro-grids are self-reliant energy systems drawing on renewables from ocean, wave power resources, wind, solar, small hydro, and geothermal sources.

The community, rather than a public utility like BC Hydro, is responsible for demand management, storage, and generation with the power systems running independently or alongside backup fuel generators — offering the operators a measure of energy sovereignty.

Depending on proximity, cost, and renewable solutions, tidal energy isn’t necessarily the solution for every community, Whitby noted, adding that in comparison to hydro, tidal energy is still more expensive.

However, the best candidates for tidal energy are small, off-grid communities largely dependent on costly fossil fuels, Whitby said.

“That's really why the focus in B.C. is at a smaller scale,” he said.

“The time it would take (these communities) to recoup any capital investment is a lot shorter.

“And the cost is actually on a par because they're already paying a significant amount of money for that diesel-generated power.”

Lisa Kalynchuk, vice-president of research and innovation at UVic, said she was excited by the possibilities associated with tidal power, not only in B.C., but for all of Canada’s coasts.

“Canada has approximately 40,000 megawatts available on our three coastlines,” Kalynchuk said.

“Of course, not all this power can be realized, but it does exist, so that leads us to the hard part — tapping into this available energy and delivering it to those remote communities that need it.”

Challenges to establishing tidal power include the added cost and complexity of construction in remote communities, the storage of intermittent power for later use, the economic model, though B.C.’s streamlined regulatory process may ease approvals, the costs associated with tidal power installations, and financing for small communities, she said.

But smaller tidal energy projects can potentially set a track record for more nascent marine renewables, as groups like Marine Renewables Canada pivot to offshore wind development, at a lower cost and without facing the same social or regulatory resistance a large-scale project might face.

A successful tidal energy demo project was set up using a MAVI tidal turbine in Blind Channel to power a private resort on West Thurlow Island, part of the outer Discovery Islands chain wedged between Vancouver Island and the mainland, Whitby said.

The channel’s strong tidal currents, which routinely reach six knots and are close to the marina, proved a good site to test the small-scale turbine and associated micro-grid system that could be replicated to power remote communities, he said.

The mooring system, cable, and turbine were installed fairly rapidly and ran through the summer of 2017. The system is no longer active as provincial and federal funding for the project came to an end.

“But as a proof of concept, we think it was very successful,” Whitby said, adding micro-grid tidal power is still in the early stages of development.

Ideally, the project will be revived with new funding, so it can continue to act as a test site for marine renewable energy and to showcase the system to remote coastal communities that might want to consider tidal power, he said.

In addition to harnessing a local, renewable energy source and increasing energy independence, tidal energy micro-grids can fuel employment and new business opportunities, said Whitby.

The Blind Channel project was installed using the local supply chain out of nearby Campbell River, he said.

“Most of the vessels and support came from that area, so it was all really locally sourced.”

Funding from senior levels of government would likely need to be provided to set up a permanent tidal energy demonstration site, with recent tidal energy investments in Nova Scotia offering a model, or to help a community do case studies and finance a project, Whitby said.

Both the federal and provincial governments have established funding streams to transition remote communities away from relying on diesel.

But remote community projects funded federally or provincially to date have focused on more established renewables, such as hydro, solar, biomass, or wind.

The goal of B.C.’s Remote Community Energy Strategy, part of the CleanBC plan and aligned with zero-emissions electricity by 2035 targets across Canada, is to reduce diesel use for electricity 80 per cent by 2030 by targeting 22 of the largest diesel locations in the province, many of which fall along the coast.

The province has announced a number of significant investments to shift Indigenous coastal communities away from diesel-generated electricity, but they predominantly involve solar or hydro projects.

A situation that’s not likely to change, as the funding application guide in 2020 deemed tidal projects as ineligible for cash.

Yet, the potential for establishing tidal energy micro-grids in B.C. is good, Kalynchuk said, noting UVic is a hub for significant research expertise and several local companies, including ocean and river power innovators working in the region, are employing and developing related service technologies to install and maintain the systems.

“It also addresses our growing need to find alternative sources of energy in the face of the current climate crisis,” she said.

“The path forward is complex and layered, but one essential component in combating climate change is a move away from fossil fuels to other sources of energy that are renewable and environmentally friendly.”

 

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Government of Canada Invests in the Future of Work in Today's Rapidly Changing Electricity Sector

EHRC National Occupational Standards accelerate workforce readiness for smart grids, renewable energy, digitalization, and automation, aligning skills, reskilling, upskilling across the electricity sector with a career portal, labour market insights, and emerging jobs.

 

Key Points

Industry benchmarks from EHRC defining skills, training, and competencies for Canada's evolving electricity workforce.

✅ Aligns skills to smart grids, renewable energy, and automation

✅ Supports reskilling, upskilling, and career pathways

✅ Informs employers with labour market intelligence

 

Smart grids, renewable electricity generation, automation, carbon capture and storage, and electric vehicles are transforming the traditional electricity industry. Technological innovation is reshaping and reinventing the skills and occupations required to support the electrical grid of the 21st century, even as pandemic-related grid warnings underscore resilience needs.

Canada has been a global leader in embracing and capitalizing on drivers of disruption and will continue to navigate the rapidly changing landscape of electricity by rethinking and reshaping traditional occupational standards and skills profiles.

In an effort to proactively address the needs of our current and future labour market, building on regional efforts like Nova Scotia energy training to enhance participation, Electricity Human Resources Canada (EHRC) is pleased to announce the launch of funding for the new National Occupational Standards (NOS) and Career Portal project. This project will explore the transformational impact of technology, digitalization and innovation on the changing nature of work in the sector.

Through this research a total of 15 National Occupational Standards and Essential Skills Profiles will be revised or developed to better prepare jobseekers, including young Canadians interested in electricity to transition into the electricity sector. Occupations to be covered include:

  • Electrical Engineering Technician/ Technologist
  • Power Protection and Control Technician/ Technologist
  • Power Systems Operator
  • Solar Photovoltaic Installer
  • Power Station Operator
  • Wind Turbine Technician
  • Geothermal Heat Pump Installer
  • Solar Thermal Installer
  • Utilities Project Manager
  • Heat Pump Designer
  • Small System Designer (Solar)
  • Energy Storage Technician
  • Smart Grid Specialist
  • 2 additional occupations TBD

The labour market intelligence gathered during the research will examine current occupations or job functions facing change or requiring re-skilling or up-skilling, including specialized courses such as arc flash training in Vancouver that bolster safety competencies, as well as entirely emerging occupations that will require specialized skills.

This project is funded in part by the Government of Canada’ Sectoral Initiative Program and supports its goal to address current and future skills shortages through the development and distribution of sector-specific labour market information.

“Canada’s workforce must evolve with the changing economy. This is critical to building the middle class and ensuring continued economic growth. Our government is committed to an evidence-based approach and is focused on helping workers to gain valuable work experience and the skills they need for a fair chance at success. By collaborating with partners like Electricity Human Resources Canada, we can ensure that we are empowering workers today, and planning for the jobs of tomorrow.” – The Honourable Patty Hajdu, Minister of Employment, Workforce Development and Labour

“By encouraging the adoption of new technologies and putting in place the appropriate support for workers, Canada can minimize both skills shortages and technological unemployment. A long-term strategic and national approach to human resource planning and training is therefore critical to ensuring that we continue to maintain the level of growth, reliability, safety and productivity in the system – with a workforce that is truly inclusive and diverse.” – Michelle Branigan, CEO, EHRC.

“The accelerated pace of change in our sector, including advancements in technology and innovation will also have a huge impact on our workforce. We need to anticipate what those impacts will be so employers, employees and job seekers alike can respond to the changing structure of the sector and future job opportunities.” – Jim Kellett, Board Chair, EHRC.

About Electricity Human Resources Canada

EHRC helps to build a better workforce by strengthening the ability of the Canadian electricity industry to meet current and future needs for a highly skilled, safety-focused, diverse and productive workforce by addressing the electrical safety knowledge gap that can lead to injuries.

 

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Looming Coal and Nuclear Plant Closures Put ‘Just Transition’ Concept to the Test

Just Transition for Coal and Nuclear Workers explains policy frameworks, compensation packages, retraining, and community support during decarbonization, plant closures, and energy shifts across Europe and the U.S., including Diablo Canyon and Uniper strategies.

 

Key Points

A policy approach to protect and retrain legacy power workers as coal and nuclear plants retire during decarbonization.

✅ Germany and Spain fund closures with compensation and retraining.

✅ U.S. lacks federal support; Diablo Canyon is a notable exception.

✅ Firms like Uniper convert coal sites to gas and clean energy roles.

 

The coronavirus pandemic has not changed the grim reality facing workers at coal and nuclear power plants in the U.S. and Europe. How those workers will fare in the years ahead will vary greatly based on where they live and the prevailing political winds.

In Europe, the retirement of aging plants is increasingly seen as a matter of national concern. Germany this year agreed to a €40 billion ($45 billion) compensation package for workers affected by the country's planned phaseout of coal generation by 2038, amid its broader exit from nuclear power as part of its energy transition. Last month the Spanish authorities agreed on a just transition plan affecting 2,300 workers across 12 thermal power plants that are due to close this year.

In contrast, there is no federal support plan for such workers in the U.S., said Tim Judson, executive director at the Maryland-based Nuclear Information and Resource Service, which lobbies for an end to nuclear and fossil-fuel power.

For all of President Donald Trump’s professed love of blue-collar workers in sectors such as coal, “where there are economic transitions going on, we’re terrible at supporting workers and communities,” Judson said of the U.S. Even at the state level, support for such workers is "almost nonexistent,” he said, “although there are a lot of efforts going on right now to start putting in place just transition programs, especially for the energy sector.”

One example that stands out in the U.S. is the support package secured for workers at utility PG&E's Diablo Canyon Power Plant, California's last operating nuclear power plant that is scheduled for permanent closure in 2025. “There was a settlement between the utility, environmental groups and labor unions to phase out that plant that included a very robust just transition package for the workers and the local community,” Judson said.

Are there enough clean energy jobs to replace those being lost?
Governments are more likely to step in with "just transition" plans where they have been responsible for plant closures in the first place. This is the case for California, Germany and Spain, all moving aggressively to decarbonize their energy sectors and pursue net-zero emissions policy goals.

Some companies are beginning to take a more proactive approach to helping their workers with the transition. German energy giant Uniper, for example, is working with authorities to save jobs by seeking to turn coal plants into lower-emissions gas-fired units.

Germany’s coal phaseout will force Uniper to shut down 1.5 gigawatts of hard-coal capacity by 2022, but the company has said it is looking at "forward-looking" options for its plants that "will be geared toward tomorrow's energy world and offer long-term employment prospects."

Christine Bossak, Uniper’s manager of external communications, told GTM this approach would be adopted in all the countries where Uniper operates coal plants.

Job losses are usually inevitable when a plant is closed, Bossak acknowledged. “But the extent of the reduction depends on the alternative possibilities that can be created at the site or other locations. We will take care of every single employee, should he or she be affected by a closure. We work with the works council and our local partners to find sustainable solutions.”

Diana Junquera Curiel, energy industry director for the global union federation IndustriALL, said such corporate commitments looked good on paper — but the level of practical support depends on the prevailing political sentiment in a country, as seen in Germany's nuclear debate over climate strategy.

Even in Spain, where the closure of coal plants was being discussed 15 years ago, a final agreement had to be rushed through at the last minute upon the arrival of a socialist government, Junquera Curiel said. An earlier right-wing administration had sat on the plan for eight years, she added.

The hope is that heel-dragging over just transition programs will diminish as the scale of legacy plant closures grows.

Nuclear industry facing a similar challenge as coal
One reason why government support is so important is there's no guarantee a burgeoning clean energy economy will be able to absorb all the workers losing legacy generation jobs. Although the construction of renewable energy projects requires large crews, it often takes no more than a handful of people to operate and maintain a wind or solar plant once it's up and running, Junquera Curiel observed.

Meanwhile, the job losses are unlikely to slow. In Europe, Austria and Sweden both closed their last coal-fired units recently, even as Europe loses nuclear capacity in key markets.

In the U.S., the Energy Information Administration's base-case prediction is that coal's share of power generation will fall from 24 percent in 2019 to 13 percent in 2050, while nuclear's will fall from 20 percent to 12 percent over that time horizon. The EIA has long underestimated the growth trajectory of renewables in the mix; only in 2020 did it concede that renewables will eventually overtake natural gas as the country's largest source of power.

The Institute for Energy Economics and Financial Analysis has predicted that even a coronavirus-inspired halt to renewables is unlikely to stop a calamitous drop in coal’s contribution to U.S. generation.

The nuclear sector faces a similar challenge as coal, albeit over a longer timeline. Last year saw the nuclear industry starting to lose capacity worldwide in what could be the beginning of a terminal decline, highlighted by Germany's shutdown of its last three reactors in 2023. Last week, the Indian Point Energy Center closed permanently after nearly half a century of cranking out power for New York City.*

“Amid ongoing debates over whether to keep struggling reactors online in certain markets, the industry position would be that governments should support continued operation of existing reactors and new build as part of an overall policy to transition to a sustainable clean energy system,” said Jonathan Cobb, senior communication manager at the World Nuclear Association.

If this doesn’t happen, plant workers will be hoping they can at least get a Diablo Canyon treatment. Based on the progress of just transition plans so far, that may depend on how they vote just as much as who they work for.

 

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N.L. lags behind Canada in energy efficiency, but there's a silver lining to the stats

Newfoundland and Labrador Energy Efficiency faces low rankings yet signs of progress: heat pumps, EV charging networks, stricter building codes, electrification to tap Muskrat Falls power and cut greenhouse gas emissions and energy poverty.

 

Key Points

Policies and programs improving N.L.'s energy use via electrification, EVs, heat pumps, and stronger building codes.

✅ Ranks last provincially but showing policy momentum

✅ Heat pump grants and EV charging network underway

✅ Stronger building codes and electrification can cut emissions

 

Ah, another day, another depressing study that places Newfoundland and Labrador as lagging behind the rest of Canada.

We've been in this place before — least-fit kids, lowest birthrate — and now we can add a new dubious distinction to the pile: a ranking of the provinces according to energy efficiency placed Newfoundland and Labrador last.

Efficiency Canada released its first-ever provincial scorecard Nov. 20, comparing energy efficiency policies among the provinces. With energy efficiency a key part of reducing greenhouse gas emissions, Newfoundland and Labrador sat in 10th place, noted for its lack of policies on everything from promoting EV uptake in Atlantic Canada to improving efficient construction codes.

But before you click away to a happier story (about, say, a feline Instagram superstar) one of the scorecard's authors says there's a silver lining to the statistics.

"It's not that Newfoundland and Labrador is doing anything badly; it's just that it could do more," said Brendan Haley, the policy director at Efficiency Canada, a new think tank based at Carleton University.

"There's just a general lack of attention to implementing efficiency policies relative to other jurisdictions, including New Brunswick's EV rebate programs on transportation."

Looking at the scorecard and comparing N.L. with British Columbia, which snagged the No. 1 spot, isn't a great look. B.C. scored 56 points out of a possible 100, while N.L. got just 15.

Haley pointed out that B.C.'s provincial government is charting progress toward 2032, when all new builds will have to be net-zero energy ready; that is, buildings that can produce as much clean energy as they consume.  

While it might not be feasible to emulate that to a T here, Haley said the province could be mandating better energy efficiency standards for new, large building projects, and, at the same time, promote electrification of such projects as a way to soak up some of that surplus Muskrat Falls electricity.

Staring down Muskrat's 'extraordinary' pressure on N.L. electricity rates

It's impossible to talk about energy efficiency in N.L. without considering that dam dilemma. As Muskrat Falls comes online, likely at the end of 2020, customer power rates are set to rise in order to pay for it, and the province is still trying to figure out the headache that is rate mitigation.

"There is a strategic choice to be made in Newfoundland and Labrador," Haley told CBC Radio's On The Go.

While having more customers using Muskrat Falls power can help with rate mitigation, including through initiatives like N.L.'s EV push to grow demand, Haley noted simply using its excess electricity for the sake of it isn't a great goal.

"That should not be an excuse, I think, to almost have a policy of wasting energy on purpose, or saying that we don't need programs that help save electricity anymore," he said.

Energy poverty
Lots of N.L. homeowners are currently feeling a chill from the spectre of rising electricity rates.

Of course, that draft could be coming from a poorly insulated and heated house, as Efficiency Canada noted 38 per cent of all households in N.L. live in what it calls "energy poverty," where they spend more than six per cent of their after-tax income on energy — that's the second highest such rate in the country.

That poverty speaks for a need for N.L.to boost efficiency incentives for vulnerable populations, although Haley noted the government is making progress. The province recently expanded its home energy savings program, doubling in the last budget year to $2 million, which gives grants to low income households for upgrades like insulation.

Can you guess what products are selling like hotcakes as Muskrat Falls looms? Heat pumps

And since Efficiency Canada compiled its scorecard, the province has introduced a $1-million heat pump program, in which 1,000 homeowners could receive $1,000 toward the purchase of a heat pump. 

That program began accepting applications Oct. 15, and one month in, has had 682 people apply, according to the Department of Municipal Affairs and Environment, along with thousands of inquiries.

Heat pump popularity
Even without that program, heat pump sales have skyrocketed in the province since 2017. That popularity doesn't come as much of a surprise to Darren Brake, the president of KSAB Construction in Corner Brook.

With more than two decades in the home building business, he's been seeing consumer demand for home energy efficiency rise to the point where a year ago, his company transitioned into only building third-party certified energy efficient homes.

"Everybody's really concerned about the escalating power costs and energy costs, I assume because of Muskrat Falls," he said.

"It's evolving now, as we speak. Everybody is all about that monthly payment."

Brake uses spray foam installation in every house he builds, to seal up any potential leaks. Without sealing the building envelope, he says, a heat pump is far less efficient. (Lindsay Bird/CBC)
And in the weakest housing market in the province in half a century, Brake has been steadily moving his, building and selling seven in the last year.

Brake's houses include heat pumps, but he said the real savings come from their heavily insulated walls, roof and floors. Homeowners looking to install a heat pump in their leaky old house, he said, won't see lower power bills in quite the same way.

"They are energy efficient, but it's more about the building envelope to make a home efficient and easy to heat. You can put a heat pump in an older home that leaks a lot of air, and you won't get the same results," he said.

Charging network coming
The other big piece to the efficiency puzzle — in the scorecard's eyes — is electric vehicles. Those could, again, use some of that Muskrat Falls energy, as well as curtail gas guzzling, but Efficiency Canada pointed to a lack of policies and incentives surrounding electrifying transportation, such as Nova Scotia's vehicle-to-grid pilot that illustrates innovation elsewhere.

Unlike Quebec or B.C., the province doesn't offer a rebate for buying EVs, even as N.W.T. encourages EVs through targeted measures, and while electric vehicles got loud applause at the House of Assembly last week, it was absent of any policy or announcement beyond the province unveiling a EV licence plate design to be used in the near future.

Electric-vehicle charging network planned for N.L. in 2020

But since the scorecard was tallied, NL Hydro has unveiled plans for a Level 3 charging network for EVs across the island, dependent on funding, with N.L.'s first fast-charging network seen as just the beginning for local drivers.

NL Hydro says while its request for proposals for an island-wide charging network closed earlier in November, there is no progress update yet, even as N.B.'s fast-charging rollout advances along the Trans-Canada. (Credit: iStock/Getty Images)
That cash appears to still be in limbo, as "we are still progressing through the funding process," said an NL Hydro spokesperson in an email, with no "additional details to release at this time."

Still, the promise of a charging network — plus the swift uptake on the heat pump program — could boost N.L.'s energy efficiency scorecard next time it's tallied, said Haley.

"It is encouraging to see the province moving forward on smart and efficient electrification," he said.

 

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