Salary review before Hydro One gets CEO

By Toronto Star


Protective Relay Training - Basic

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

  • Live Online
  • 12 hours Instructor-led
  • Group Training Available
Regular Price:
$699
Coupon Price:
$599
Reserve Your Seat Today
Multi-million dollar compensation packages for top executives at Ontario Power Generation and Hydro One are too high for government-owned utilities, Ontario Energy Minister Dwight Duncan said today as he announced a review of the way salary levels are set at provincial energy agencies.

DuncanÂ’s move comes after former Hydro One CEO Tom Parkinson walked away with $3 million in severance in December when he quit amid criticism of expense account irregularities and his $1.6 million salary and bonus.

In appointing a four-member panel to recommend new methods of determining executive compensation for energy officials, Duncan said the pay should “reflect the public service nature of their mandates.”

He said public utilities should not be trying to compete with private-sector salaries on Bay Street.

The Liberals claim salaries at Hydro One, Ontario Power Generation (OPG) and other agencies rose after the previous Conservative government tried — and failed — to privatize Ontario’s electricity market, but the Tories point out it was the Liberals that agreed to Parkinson’s lucrative compensation package.

In addition to Hydro One and OPG, the panel will look at the compensation levels for executives at the Ontario Power Authority, the Independent Electricity System Operator and the Ontario Energy Board.

Critics point out the salaries of Parkinson and Ontario Power Generation CEO Jim Hankinson, who also pulls in about $1.6 million a year, dwarf the $480,000 paid to the head of Hydro Quebec and the $405,000 earned by the president of B.C. Hydro — both of which are combined generation and transmission utilities.

ParkinsonÂ’s predecessor as Hydro One CEO, Eleanor Clitheroe, was fired in 2002 for lavish spending on top of her $2.2 million annual pay package, but launched a $30 million lawsuit against the province that is still before the courts.

Duncan also announced Monday the government will not appoint a new CEO of Hydro One, the giant transmission utility, until the salary review is completed in late spring.

Laura Formusa, who was appointed to replace Parkinson on an interim basis recently, will remain interim CEO of Hydro One until the review is complete and a full-time successor is named.

The panel will also look at areas of overlap between the various provincial agencies involved in the generation, transmission, regulation and marketing of electricity, but Duncan said it wonÂ’t be looking to recreate a single generation and transmission utility like the old Ontario Hydro.

“This is about continuing to strengthen the electricity sector and ensuring our energy agencies continue to focus on delivering our priorities,” Duncan said in a statement.

“We want stability for the sector. We want to keep our agencies in public hands.”

Related News

E.ON to Commission 2500 Digital Transformer Stations

E.ON Digital Transformer Stations modernize distribution grids with smart grid monitoring, voltage control, and remote switching, enabling bidirectional power flow, renewables integration, and rapid fault isolation from centralized grid control centres.

 

Key Points

Remotely monitored grid nodes enhancing smart grid stability and speedier fault response.

✅ Real-time voltage and current data along feeders and laterals

✅ Remote switching cuts outage duration and truck rolls

✅ Supports renewables and bidirectional power flows

 

E.ON plans to commission 2500 digital transformer stations in the service areas of its four German distribution grid operators - Avacon, Bayernwerk, E.DIS and Hansewerk - by the end of 2019. Starting this year, E.ON will solely install digital transformer stations in Germany, aligning with 2019 grid edge trends seen across the sector. This way, the digital grid is quite naturally being integrated into E.ON's distribution grids.

With these transformer stations as the centrepiece of the smart grid, it is possible to monitor and control using synchrophasors in the power grid from the grid control centre. This helps to maintain a more balanced utilisation of the grid and, with increasing complexity, ensures continued security of supply.

Until now, the current and voltage parameters required for safe grid operation could usually only be determined at the beginning of a power line, where there is usually a grid substation in place. Controlling current flow and voltage in the downstream system was physically impossible.

In the future, grids will have to function in both directions: they will bring electricity to the customer while at the same time collecting and transmitting more and more green electricity via HVDC technology where appropriate. This requires physical data to be made available along the entire route. To ensure security of supply, voltage fluctuations must be kept within narrowly defined limits and the current flow must not exceed the specified value, while reducing line losses with superconducting cables remains an important consideration. To manage this challenge, it is necessary to install digital technology.

The possibility of remotely controlling grids also reduces downtimes in the event of faults and supports a smarter electricity infrastructure approach. With the new technology, our grid operators can quickly and easily access the stations of the affected line. The grid control centres can thus limit and eliminate faults on individual line sections within a very short space of time.

 

Related News

View more

Bomb Cyclone Leaves Half a Million Without Power in Western Washington

Western Washington Bomb Cyclone unleashed gale-force winds, torrential rain, and coastal flooding, causing massive power outages from Seattle to Tacoma; storm surge, downed trees, and blocked roads hindered emergency response and infrastructure repairs.

 

Key Points

A rapidly deepening storm with severe winds, rain, flooding, and major power outages across Western Washington.

✅ Rapid barometric pressure drop intensified the system

✅ Gale-force winds downed trees and power lines

✅ Coastal flooding and storm surge disrupted transport

 

A powerful "bomb cyclone" recently hit Western Washington, causing widespread destruction across the region. The intense storm left more than half a million residents without power, similar to B.C. bomb cyclone outages seen to the north, with outages affecting communities from Seattle to Olympia. This weather phenomenon, marked by a rapid drop in atmospheric pressure, unleashed severe wind gusts, heavy rain, and flooding, causing significant disruption to daily life.

The bomb cyclone, which is a rapidly intensifying storm, typically features a sharp drop in barometric pressure over a short period of time. This creates extreme weather conditions, including gale-force winds, torrential rain, and coastal flooding, as seen during California storm impacts earlier in the season. In Western Washington, the storm struck just as the region was beginning to prepare for the winter season, catching many off guard with its strength and unpredictability.

The storm's impact was immediately felt as high winds downed trees, power lines, and other infrastructure. By the time the worst of the storm had passed, utility companies had reported widespread power outages, with more than 500,000 customers losing electricity. The outages were particularly severe in areas like Seattle, Tacoma, and the surrounding communities. Crews worked tirelessly in difficult conditions to restore power, but many residents faced extended outages, underscoring US grid climate vulnerabilities that complicate recovery efforts, with some lasting for days due to the scope of the damage.

The power outages were accompanied by heavy rainfall, leading to localized flooding. Roads were inundated, making it difficult for first responders and repair crews to reach affected areas. Emergency services were stretched thin as they dealt with downed trees, blocked roads, and flooded neighborhoods. In some areas, floodwaters reached homes, forcing people to evacuate. In addition, several schools were closed, and public transportation services were temporarily halted, leaving commuters stranded and businesses unable to operate.

As the storm moved inland, its effects continued to be felt. Western Washington’s coastal regions were hammered by high waves and storm surges, further exacerbating the damage. The combination of wind and rain also led to hazardous driving conditions, prompting authorities to advise people to stay off the roads unless absolutely necessary.

While power companies worked around the clock to restore electricity, informed by grid resilience strategies that could help utilities prepare for future events, challenges persisted. Fallen trees and debris blocked access to repair sites, and the sheer number of outages made it difficult for crews to restore power quickly. Some customers were left in the dark for days, forced to rely on generators, candles, and other makeshift solutions. The storm's intensity left a trail of destruction, requiring significant resources to address the damages and rebuild critical infrastructure.

In addition to the immediate impacts on power and transportation, the bomb cyclone raised important concerns about climate change and the increasing frequency of extreme weather events. Experts note that storms like these are becoming more common, with rapid intensification leading to more severe consequences and compounding pressures such as extreme-heat electricity costs for households. As the planet warms, scientists predict that such weather systems will continue to grow in strength, posing greater challenges to cities and regions that are not always prepared for such extreme events.

In the aftermath of the storm, local governments and utility companies faced the daunting task of not only restoring services but also assessing the broader impact of the storm on communities. Many areas, especially those hit hardest by flooding and power outages, will require substantial recovery efforts. The devastation of the bomb cyclone highlighted the vulnerability of infrastructure in the face of rapidly changing weather patterns and water availability, as seen in BC Hydro drought adaptations nearby, and reinforced the need for greater resilience in the face of future storms.

The storm's impact on the Pacific Northwest is a reminder of the power of nature and the importance of preparedness. As Western Washington recovers, there is a renewed focus on strengthening infrastructure, including expanded renewable electricity to diversify supply, improving emergency response systems, and ensuring that communities are better equipped to handle the challenges posed by increasingly severe weather events. For now, residents remain hopeful that the worst is behind them and are working together to rebuild and prepare for whatever future storms may bring.

The bomb cyclone has left an indelible mark on Western Washington, but it also serves as a call to action for better preparedness, more robust infrastructure, and a greater focus on combating climate change to mitigate the impact of such extreme weather in the future.

 

Related News

View more

Ottawa Launches Sewage Energy Project at LeBreton Flats

Ottawa Sewage Energy Exchange System uses wastewater heat recovery and efficient heat pumps to deliver renewable district energy, zero carbon heating and cooling, cutting greenhouse gas emissions at LeBreton Flats and scaling urban developments.

 

Key Points

A district energy system recovering wastewater heat via pumps to deliver zero carbon heating and cooling.

✅ Delivers 9 MW heating and cooling for 2.4M sq ft at LeBreton Flats

✅ Cuts 5,066 tonnes CO2e each year, reducing greenhouse gases

✅ Powers Odenak zero carbon housing via district energy

 

Ottawa is embarking on a groundbreaking initiative to harness the latent thermal energy within its wastewater system, in tandem with advances in energy storage in Ontario that strengthen grid resilience, marking a significant stride toward sustainable urban development. The Sewage Energy Exchange System (SEES) project, a collaborative effort led by the LeBreton Community Utility Partnership—which includes Envari Holding Inc. (a subsidiary of Hydro Ottawa) and Theia Partners—aims to revolutionize how the city powers its buildings.

Harnessing Wastewater for Sustainable Energy

The SEES will utilize advanced heat pump technology to extract thermal energy from the city's wastewater infrastructure, providing both heating and cooling to buildings within the LeBreton Flats redevelopment. This innovative approach eliminates the need for fossil fuels, aligning with Ottawa's commitment to reducing greenhouse gas emissions and promoting clean energy solutions across the province, including the Hydrogen Innovation Fund that supports new low-carbon pathways.

The system operates by diverting sewage from the municipal collection network into an external well, where it undergoes filtration to remove large solids. The filtered water is then passed through a heat exchanger, transferring thermal energy to the building's heating and cooling systems. After the energy is extracted, the treated water is safely returned to the city's sewer system.

Environmental and Economic Impact

Once fully implemented, the SEES is projected to deliver over 9 megawatts of heating and cooling capacity, servicing approximately 2.4 million square feet of development. This capacity is expected to reduce greenhouse gas emissions by approximately 5,066 tonnes annually—equivalent to the electricity consumption of over 3,300 homes for a year. Such reductions are pivotal in helping Ottawa meet its ambitious goal of achieving a 96% reduction in community-wide greenhouse gas emissions by 2040, as outlined in its Climate Change Master Plan and Energy Evolution strategy, and they align with Ontario's plan to rely on battery storage to meet rising demand across the grid.

Integration with the Odenak Development

The first phase of the SEES will support the Odenak development, a mixed-use project comprising two high-rise residential buildings. This development is poised to be Canada's largest residential zero-carbon project, echoing calls for Northern Ontario grid sustainability from community groups, featuring 601 housing units, with 41% designated as affordable housing. The integration of the SEES will ensure that Odenak operates entirely on renewable energy, setting a benchmark for future urban developments.

Broader Implications and Future Expansion

The SEES project is not just a localized initiative; it represents a scalable model for sustainable urban energy solutions that aligns with green energy investments in British Columbia and other jurisdictions. The LeBreton Community Utility Partnership is in discussions with the National Capital Commission to explore extending the SEES network to additional parcels within the LeBreton Flats redevelopment. Expanding the system could lead to economies of scale, further reducing costs and enhancing the environmental benefits.

Ottawa's venture into wastewater-based energy systems places it at the forefront of a growing trend in North America. Cities like Toronto and Vancouver have initiated similar projects, while related pilots such as the EV-to-grid pilot in Nova Scotia highlight complementary approaches, and European counterparts have long utilized sewage heat recovery systems. Ottawa's adoption of this technology underscores its commitment to innovation and sustainability in urban planning.

The SEES project at LeBreton Flats exemplifies how cities can repurpose existing infrastructure to create sustainable, low-carbon energy solutions. By transforming wastewater into a valuable energy resource, Ottawa is setting a precedent for environmentally responsible urban development. As the city moves forward with this initiative, it not only addresses immediate energy needs but also contributes to a cleaner, more sustainable future for its residents, even as the province accelerates Ontario's energy storage push to maintain reliability.

 

 

Related News

View more

India's electricity demand falls at the fastest pace in at least 12 years

India Industrial Output Slowdown deepens as power demand slumps, IIP contracts, and electricity, manufacturing, and mining weaken; capital goods plunge while RBI rate cuts struggle to lift GDP growth, infrastructure, and fuel demand.

 

Key Points

A downturn where IIP contracts as power demand, manufacturing, mining, and capital goods fall despite RBI rate cuts.

✅ IIP fell 4.3% in Sep, worst since Feb 2013.

✅ Power demand dropped for a third month, signaling weak industry.

✅ Capital goods output plunged 20.7%, highlighting weak investment.

 

India's power demand fell at the fastest pace in at least 12 years in October, signalling a continued decline in the industrial output, mirroring how China's power demand dropped when plants were shuttered, according to government data. Electricity has about 8% weighting in the country's index for industrial production.

India needs electricity to fuel its expanding economy and has at times rationed coal supplies when demand surged, but a third decline in power consumption in as many months points to tapering industrial activity in a nation that aims to become a $5 trillion economy by 2024.

India's industrial output fell at the fastest pace in over six years in September, adding to a series of weak indicators that suggests that the country’s economic slowdown is deep-rooted and interest rate cuts alone may not be enough to revive growth.

Annual industrial output contracted 4.3% in September, government data showed on Monday. It was the worst performance since a 4.4% contraction in February 2013, according to Refinitiv data.

Analysts polled by Reuters had forecast industrial output to fall 2% for the month.

“A contraction of industrial production by 4.3% in September is serious and indicative of a significant slowdown as both investment and consumption demand have collapsed,” said Rupa Rege Nitsure, chief economist of L&T Finance Holdings.

The industrial output figure is the latest in a series of worrying economic data in Asia's third largest economy, which is also the world's third-largest electricity producer as well.

Economists say that weak series of data could mean economic growth for July-September period will remain near April-June quarter levels of 5%, which was a six-year low, and some analysts argue for rewiring India's electricity to bolster productivity. The Indian government is likely to release April-September economic growth figures by the end of this month.

Subdued inflation and an economic slowdown have prompted the Reserve Bank of India (RBI) to cut interest rates by a total of 135 basis points this year, while coal and electricity shortages eased in recent months.

“These are tough times for the RBI, as it cannot do much about it but there will be pressures on it to act ...Blunt tools like monetary policy may not be effective anymore,” Nitsure said.

Data showed in September mining sector fell 8.5%, while manufacturing and electricity fell 3.9% and 2.6% respectively, even as imported coal volumes rose during April-October. Capital goods output during the month fell 20.7%, indicating sluggish demand.

“IIP (Index of Industrial Production) growth in October 2019 is also likely to be in negative territory and only since November 2019 one can expect mild IIP expansion, said Devendra Kumar Pant, Chief Economist and Senior Director, Public Finance, India Ratings & Research (Fitch Group).

Infrastructure output, which comprises eight main sectors, in September showed a contraction of 5.2%, the worst in 14 years, even as global daily electricity demand fell about 15% during pandemic lockdowns.

India's fuel demand fell to its lowest in more than two years in September, with consumption of diesel to its lowest levels since January 2017. Diesel and gasoline together make up over 7.4% of the IIP weightage.

In 2019/20 India's fuel demand — also seen as an indicator of economic and industrial activity — is expected to post the slowest growth in about six years.

 

Related News

View more

Trump's Canada Tariff May Spike NY Energy Prices

25% Tariff on Canadian Imports threatens New York energy markets, disrupting hydroelectric power and natural gas supply chains, raising electricity prices, increasing gas costs, and intensifying trade tensions, policy uncertainty, and cross-border logistics risks.

 

Key Points

A U.S. policy imposing 25% duties on Canadian goods, risking higher New York electricity and natural gas costs.

✅ Hydroelectric and gas imports face costlier cross-border flows

✅ Higher utility bills for NY households and businesses

✅ Supply chain volatility and policy uncertainty increase

 

President Donald Trump announced the imposition of a 25% tariff on all imports from Canada, citing concerns over drug trafficking and illegal immigration. This decision has raised significant concerns among experts and residents in New York, who warn that the tariff could lead to increased electricity and gas prices in the state.

Impact on New York's Energy Sector

New York relies heavily on energy imports from Canada, particularly electricity and natural gas. Canada is a major supplier of hydroelectric power to the northeastern United States, including New York, with its electricity exports at risk amid trade tensions. The imposition of a 25% tariff on Canadian goods could disrupt this supply chain, leading to higher energy costs for consumers and businesses in New York. Justin Wilcox, an energy analyst, stated, "If the tariff is implemented, it could lead to increased costs for electricity and gas, affecting both consumers and businesses."

Potential Economic Consequences

The increased energy costs could have broader economic implications for New York, and some experts advise against cutting Quebec's exports to avoid exacerbating market volatility. Higher electricity and gas prices may lead to increased operational costs for businesses, potentially resulting in higher prices for goods and services, while tariff threats have boosted support for Canadian energy projects that could reshape regional supply. This could exacerbate the cost-of-living challenges faced by residents and strain the state's economy.

Political and Diplomatic Reactions

The tariff has also sparked political and diplomatic reactions, including threats to cut U.S. electricity exports from Ontario that raised tensions. New York Governor Kathy Hochul expressed concern over the potential economic impact, stating, "We are closely monitoring the situation and are prepared to take necessary actions to protect New York's economy." Additionally, Canadian officials have expressed their disapproval of the tariff, and Ontario Premier Doug Ford's Washington meeting underscored ongoing discussions, emphasizing the importance of the trade relationship between the two countries.

Historical Context

This development is part of a broader pattern of trade tensions between the United States and its neighbors. In 2018, the U.S. imposed tariffs on Canadian steel and aluminum, leading to retaliatory measures from Canada. The current situation underscores the ongoing challenges in international trade relations, where a recent tariff threat delayed Quebec's green energy bill and highlighted the potential domestic impacts of such policies.

The imposition of a 25% tariff on Canadian imports by President Trump has raised significant concerns in New York regarding potential increases in electricity and gas prices. Experts warn that this could lead to higher costs for consumers and businesses, with broader economic implications for the state. As the situation develops, it will be crucial to monitor the responses from both state and federal officials, as well as how Canadians support tariffs on energy and minerals may influence policy, and the potential for diplomatic negotiations to address these trade tensions.

 

Related News

View more

Russia to triple electricity supplies to China

Amur-Heihe ETL Power Supply Tripling will expand Russia-China electricity exports, extending 750 MW DC full-load hours to stabilize northeast China grids amid coal shortages, peak demand spikes, and cross-border energy security concerns.

 

Key Points

Russia will triple electricity via Amur-Heihe ETL, boosting 750 MW DC operations to relieve shortages in northeast China.

✅ 500 kV converter station increases full-load hours from 5 to 16

✅ Supports Heilongjiang, Liaoning, and Jilin grids amid coal shortfall

✅ Cross-border 750 MW DC link enhances reliability, peak demand coverage

 

Russia will triple electricity supplies via the Amur-Heihe electric transmission line (ETL) starting October 1, China Central Television has reported, a move seen within broader shifts in China's electricity sector by observers.

"Starting October 1, the overhead convertor substation of 500 kW (750 MW DC) will increase its daily time of operation with full loading from 5 to 16 hours per day," the TV channel said.

"This measure will make it possible to dramatically ease the situation with the electricity supply," the report said. Electricity from this converting station is used in three northeastern provinces of China - Heilongjiang, Liaoning and Jilin, while regional markets are strained as India rations coal supplies amid surging demand today. In 29 years, Russia supplied over 30 bln kilowatt hours of electricity, according to the channel.

The Amur-Heihe overhead transnational power line was constructed for increasing electricity exports to China, where projections see electricity to meet 60% of energy use by 2060 according to Shell. It was commissioned in 2012. Its maximum capacity is 750 MW.

China’s Jiemian News reported on September 27 that, amid nationwide power cuts affecting grids, 20 regions were limited in electricity supplies to a various extent due to the ongoing coal deficit. In particular, in China’s northeastern provinces, restrictions on power consumption were imposed not only on industrial enterprises, but also on households, as well as on office premises, raising concerns for U.S. solar supply chains among downstream manufacturers.

Later, China’s financial media Zhongxin Jingwei noted that the coal deficit had been triggered by price hikes brought on by tightened national environmental standards and efforts to reduce coal power production across the country. Reduced coal imports amid disruptions in the work of foreign suppliers due to the coronavirus pandemic was an additional reason, and earlier power demand drops as factories shuttered compounded imbalances.
 

 

Related News

View more

Sign Up for Electricity Forum’s Newsletter

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

Electricity Today T&D Magazine Subscribe for FREE

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

Download the 2025 Electrical Training Catalog

Explore 50+ live, expert-led electrical training courses –

  • Interactive
  • Flexible
  • CEU-cerified