RES Canada and OPA announce wind projects

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Renewable Energy Systems Canada (RES Canada), an affiliate of RES Americas, both leaders in the development and construction of wind power projects, and the Ontario Power Authority (OPA), announced development and construction of the Talbot and Greenwich Wind Farms.

Together these projects will produce enough clean electricity to power approximately 52,000 average Canadian homes, generate roughly 600 construction jobs and 16 operations jobs, provide more than $350,000 a year in local taxes and invest locally more than $85 million in capital expenditure and $13 million yearly in operating expenses.

The Talbot Wind Farm

· $250 million project, to be constructed in the Municipality of Chatham-Kent.

· It will produce 99 MW of clean wind energy, enough electricity to power 26,000 average Canadian homes.

· The project will create an estimated 300 construction jobs and 8 direct operation jobs.

· Talbot Wind Farm will generate revenue for businesses in the region, spending up to $50 million in capital expenditure and more than $7 million a year in operating expenditures. Landowner payments will put over $1 million per year in the hands of local Ontario farmers.

· The Municipality will also benefit, receiving around $278,000 in tax payments each year.

The Greenwich Wind Farm

· The $250 million project will be located in the Municipality of Dorion and the Unorganized Territory of Spruce Current.

· It will produce 99 MW of clean wind energy, enough electricity to power 26,000 average Canadian homes.

· Construction will generate approximately 300 jobs and 8 direct operations jobs once construction is completed.

· $75,000 in municipal tax payments each year will be generated from the project, half going to Municipality of Dorion and half to the provincial treasury.

· RES will spend up to $25 million in capital expenditure in the region, including materials and labour, with more than $6 million in yearly operating expenditures.

“RES Canada is happy to partner with the Ontario Power Authority to bring the benefits of wind energy to the people of Ontario,” said Craig Mataczynski, President of RES Canada. “We are committed to the Ontario Ministry of Energy and Infrastructure’s vision to develop renewable energy for ‘Ontario’s electricity future’.”

For over a decade, Renewable Energy Systems Americas (RES Americas) has developed, constructed, operated and owned wind farms across North Americas. RES is a worldwide success story in the fast-growing renewable energy sector. Active since 2003, RES Canada brings this expertise and competitive approach to the Canadian wind industry.

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Longer, more frequent outages afflict the U.S. power grid as states fail to prepare for climate change

Power Grid Climate Resilience demands storm hardening, underground power lines, microgrids, batteries, and renewable energy as regulators and utilities confront climate change, sea level rise, and extreme weather to reduce outages and protect vulnerable communities.

 

Key Points

It is the grid capacity to resist and recover from climate hazards using buried lines, microgrids, and batteries.

✅ Underground lines reduce wind outages and wildfire ignition risk.

✅ Microgrids with solar and batteries sustain critical services.

✅ Regulators balance cost, resilience, equity, and reliability.

 

Every time a storm lashes the Carolina coast, the power lines on Tonye Gray’s street go down, cutting her lights and air conditioning. After Hurricane Florence in 2018, Gray went three days with no way to refrigerate medicine for her multiple sclerosis or pump the floodwater out of her basement.

What you need to know about the U.N. climate summit — and why it matters
“Florence was hell,” said Gray, 61, a marketing account manager and Wilmington native who finds herself increasingly frustrated by the city’s vulnerability.

“We’ve had storms long enough in Wilmington and this particular area that all power lines should have been underground by now. We know we’re going to get hit.”

Across the nation, severe weather fueled by climate change is pushing aging electrical systems past their limits, often with deadly results. Last year, amid increasing nationwide blackouts, the average American home endured more than eight hours without power, according to the U.S. Energy Information Administration — more than double the outage time five years ago.

This year alone, a wave of abnormally severe winter storms caused a disastrous power failure in Texas, leaving millions of homes in the dark, sometimes for days, and at least 200 dead. Power outages caused by Hurricane Ida contributed to at least 14 deaths in Louisiana, as some of the poorest parts of the state suffered through weeks of 90-degree heat without air conditioning.

As storms grow fiercer and more frequent, environmental groups are pushing states to completely reimagine the electrical grid, incorporating more grid-scale batteries, renewable energy sources and localized systems known as “microgrids,” which they say could reduce the incidence of wide-scale outages. Utility companies have proposed their own storm-proofing measures, including burying power lines underground.

But state regulators largely have rejected these ideas, citing pressure to keep energy rates affordable. Of $15.7 billion in grid improvements under consideration last year, regulators approved only $3.4 billion, according to a national survey by the NC Clean Energy Technology Center — about one-fifth, highlighting persistent vulnerabilities in the grid nationwide.

After a weather disaster, “everybody’s standing around saying, ‘Why didn’t you spend more to keep the lights on?’ ” Ted Thomas, chairman of the Arkansas Public Service Commission, said in an interview with The Washington Post. “But when you try to spend more when the system is working, it’s a tough sell.”

A major impediment is the failure by state regulators and the utility industry to consider the consequences of a more volatile climate — and to come up with better tools to prepare for it. For example, a Berkeley Lab study last year of outages caused by major weather events in six states found that neither state officials nor utility executives attempted to calculate the social and economic costs of longer and more frequent outages, such as food spoilage, business closures, supply chain disruptions and medical problems.

“There is no question that climatic changes are happening that directly affect the operation of the power grid,” said Justin Gundlach, a senior attorney at the Institute for Policy Integrity, a think tank at New York University Law School. “What you still haven’t seen … is a [state] commission saying: 'Isn’t climate the through line in all of this? Let’s examine it in an open-ended way. Let’s figure out where the information takes us and make some decisions.’ ”

In interviews, several state commissioners acknowledged that failure.

“Our electric grid was not built to handle the storms that are coming this next century,” said Tremaine L. Phillips, a commissioner on the Michigan Public Service Commission, which in August held an emergency meeting to discuss the problem of power outages. “We need to come up with a broader set of metrics in order to better understand the success of future improvements.”

Five disasters in four years
The need is especially urgent in North Carolina, where experts warn Atlantic grids and coastlines need a rethink as the state has declared a federal disaster from a hurricane or tropical storm five times in the past four years. Among them was Hurricane Florence, which brought torrential rain, catastrophic flooding and the state’s worst outage in over a decade in September 2018.

More than 1 million residents were left disconnected from refrigerators, air conditioners, ventilators and other essential machines, some for up to two weeks. Elderly residents dependent on oxygen were evacuated from nursing homes. Relief teams flew medical supplies to hospitals cut off by flooded roads. Desperate people facing closed stores and rotting food looted a Wilmington Family Dollar.

“I have PTSD from Hurricane Florence, not because of the actual storm but the aftermath,” said Evelyn Bryant, a community organizer who took part in the Wilmington response.

The storm reignited debate over a $13 billion proposal by Duke Energy, one of the largest power companies in the nation, to reinforce the state’s power grid. A few months earlier, the state had rejected Duke’s request for full repayment of those costs, determining that protecting the grid against weather is a normal part of doing business and not eligible for the type of reimbursement the company had sought.

After Florence, Duke offered a smaller, $2.5 billion plan, along with the argument that severe weather events are one of seven “megatrends” (including cyberthreats and population growth) that require greater investment, according to a PowerPoint presentation included in testimony to the state. The company owns the two largest utilities in North Carolina, Duke Energy Carolinas and Duke Energy Progress.

Vote Solar, a nonprofit climate advocacy group, objected to Duke’s plan, saying the utility had failed to study the risks of climate impacts. Duke’s flood maps, for example, had not been updated to reflect the latest projections for sea level rise, they said. In testimony, Vote Solar claimed Duke was using environmental trends to justify investments “it had already decided to pursue.”

The United States is one of the few countries where regulated utilities are usually guaranteed a rate of return on capital investments, even as studies show the U.S. experiences more blackouts than much of the developed world. That business model incentivizes spending regardless of how well it solves problems for customers and inspires skepticism. Ric O’Connell, executive director of GridLab, a nonprofit group that assists state and regional policymakers on electrical grid issues, said utilities in many states “are waving their hands and saying hurricanes” to justify spending that would do little to improve climate resilience.

In North Carolina, hurricanes convinced Republicans that climate change is real

Duke Energy spokesman Jeff Brooks acknowledged that the company had not conducted a climate risk study but pointed out that this type of analysis is still relatively new for the industry. He said Duke’s grid improvement plan “inherently was designed to think about future needs,” including reinforced substations with walls that rise several feet above the previous high watermark for flooding, and partly relied on federal flood maps to determine which stations are at most risk.

Brooks said Duke is not using weather events to justify routine projects, noting that the company had spent more than a year meeting with community stakeholders and using their feedback to make significant changes to its grid improvement plan.

This year, the North Carolina Utilities Commission finally approved a set of grid improvements that will cost customers $1.2 billion. But the commission reserved the right to deny Duke reimbursement of those costs if it cannot prove they are prudent and reasonable. The commission’s general counsel, Sam Watson, declined to discuss the decision, saying the commission can comment on specific cases only in public orders.

The utility is now burying power lines in “several neighborhoods across the state” that are most vulnerable to wide-scale outages, Brooks said. It is also fitting aboveground power lines with “self-healing” technology, a network of sensors that diverts electricity away from equipment failures to minimize the number of customers affected by an outage.

As part of a settlement with Vote Solar, Duke Energy last year agreed to work with state officials and local leaders to further evaluate the potential impacts of climate change, a process that Brooks said is expected to take two to three years.

High costs create hurdles
The debate in North Carolina is being echoed in states across the nation, where burying power lines has emerged as one of the most common proposals for insulating the grid from high winds, fires and flooding. But opponents have balked at the cost, which can run in the millions of dollars per mile.

In California, for example, Pacific Gas & Electric wants to bury 10,000 miles of power lines, both to make the grid more resilient and to reduce the risk of sparking wildfires. Its power equipment has contributed to multiple deadly wildfires in the past decade, including the 2018 Camp Fire that killed at least 85 people.

PG&E’s proposal has drawn scorn from critics, including San Jose Mayor Sam Liccardo, who say it would be too slow and expensive. But Patricia Poppe, the company’s CEO, told reporters that doing nothing would cost California even more in lost lives and property while struggling to keep the lights on during wildfires. The plan has yet to be submitted to the state, but Terrie Prosper, a spokeswoman for the California Public Utilities Commission, said the commission has supported underground lines as a wildfire mitigation strategy.

Another oft-floated solution is microgrids, small electrical systems that provide power to a single neighborhood, university or medical center. Most of the time, they are connected to a larger utility system. But in the event of an outage, microgrids can operate on their own, with the aid of solar energy stored in batteries.

In Florida, regulators recently approved a four-year microgrid pilot project, but the technology remains expensive and unproven. In Maryland, regulators in 2016 rejected a plan to spend about $16 million for two microgrids in Baltimore, in part because the local utility made no attempt to quantify “the tangible benefits to its customer base.”

Amid shut-off woes, a beacon of energy

In Texas, where officials have largely abandoned state regulation in favor of the free market, the results have been no more encouraging. Without requirements, as exist elsewhere, for building extra capacity for times of high demand or stress, the state was ill-equipped to handle an abnormal deep freeze in February that knocked out power to 4 million customers for days.

Since then, Berkshire Hathaway Energy and Starwood Energy Group each proposed spending $8 billion to build new power plants to provide backup capacity, with guaranteed returns on the investment of 9 percent, but the Texas legislature has not acted on either plan.

New York is one of the few states where regulators have assessed the risks of climate change and pushed utilities to invest in solutions. After 800,000 New Yorkers lost power for 10 days in 2012 in the wake of Hurricane Sandy, state regulators ordered utility giant Con Edison to evaluate the state’s vulnerability to weather events.

The resulting report, which estimated climate risks could cost the company as much as $5.2 billion by 2050, gave ConEd data to inform its investments in storm hardening measures, including new storm walls and submersible equipment in areas at risk of flooding.

Meanwhile, the New York Public Service Commission has aggressively enforced requirements that utility companies keep the lights on during big storms, fining utility providers nearly $190 million for violations including inadequate staffing during Tropical Storm Isaias in 2020.

“At the end of the day, we do not want New Yorkers to be at the mercy of outdated infrastructure,” said Rory M. Christian, who last month was appointed chair of the New York commission.

The price of inaction
In North Carolina, as Duke Energy slowly works to harden the grid, some are pursuing other means of fostering climate-resilient communities.

Beth Schrader, the recovery and resilience director for New Hanover County, which includes Wilmington, said some of the people who went the longest without power after Florence had no vehicles, no access to nearby grocery stores and no means of getting to relief centers set up around the city.

For example, Quanesha Mullins, a 37-year-old mother of three, went eight days without power in her housing project on Wilmington’s east side. Her family got by on food from the Red Cross and walked a mile to charge their phones at McDonald’s. With no air conditioning, they slept with the windows open in a neighborhood with a history of violent crime.

Schrader is working with researchers at the University of North Carolina in Charlotte to estimate the cost of helping people like Mullins. The researchers estimate that it would have cost about $572,000 to provide shelter, meals and emergency food stamp benefits to 100 families for two weeks, said Robert Cox, an engineering professor who researches power systems at UNC-Charlotte.

Such calculations could help spur local governments to do more to help vulnerable communities, for example by providing “resilience outposts” with backup power generators, heating or cooling rooms, Internet access and other resources, Schrader said. But they also are intended to show the costs of failing to shore up the grid.

“The regulators need to be moved along,” Cox said.

In the meantime, Tonye Gray finds herself worrying about what happens when the next storm hits. While Duke Energy says it is burying power lines in the most outage-prone areas, she has yet to see its yellow-vested crews turn up in her neighborhood.

“We feel,” she said, “that we’re at the end of the line.”

 

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B.C. Commercial electricity consumption plummets during COVID-19 pandemic

BC Hydro COVID-19 Relief Fund enables small businesses to waive electricity bills for commercial properties during the pandemic, offering credits, rate support, and applications for eligible customers forced to temporarily close.

 

Key Points

A program that lets eligible small businesses waive up to three months of BC Hydro bills during COVID-19 closures.

✅ Eligible small general service BC Hydro accounts

✅ Up to 3 months of waived electricity charges

✅ Must be temporarily closed due to the pandemic

 

Businesses are taking advantage of a BC Hydro relief fund that allows electricity bills for commercial properties to be waived during the COVID-19 pandemic.

More than 3,000 applications have already been filed since the program launched on Wednesday, allowing commercial properties forced to shutter during the crisis to waive the expense for up to three months, while Ontario rate reductions are taking effect for businesses under separate measures. 

“To be eligible for the COVID-19 Relief Fund, business customers must be on BC Hydro’s small general service rate and have temporarily closed or ceased operation due to the COVID-19 pandemic,” BC Hydro said in a statement. “BC Hydro estimates that around 40,000 small businesses in the province will be eligible for the program.”

The program builds off a similar initiative BC Hydro launched last week for residential customers who have lost employment or income because of COVID-19, and parallels Ontario's subsidized hydro plan introduced to support ratepayers. So far, 57,000 B.C. residents have applied for the relief fund, which amounts to an estimated $16 million in credits, amid scrutiny over deferred BC Hydro operating costs reported by the auditor general.

Electricity use across B.C. has plummeted since the outbreak began. 

According to BC Hydro, daily consumption has fallen 13% in the first two weeks of April, aligning with electricity demand down 10% reports, compared to the three-year average for the same time period.

Electricity use has fallen 30% for recreation facilities, 29% in the restaurant sector and 27% in hotels, while industry groups such as Canadian Manufacturers & Exporters have supported steps to reduce prices. 

For more information about the COVID-19 Relief Fund and advice on avoiding BC Hydro scam attempts, go to bchydro.com/covid19relief.

 

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Ontario hydro rates set to increase Nov. 1, Ontario Energy Board says

Ontario Electricity Rebate clarifies hydro rates as OEB aligns bills with inflation, shows true cost per kilowatt hour, and replaces Fair Hydro Plan; transparent on-bill credit offsets increases tied to nuclear refurbishment and supply costs.

 

Key Points

A line-item credit on Ontario hydro bills that offsets higher electricity costs and reflects OEB-set rates.

✅ Starts Nov. 1 with rates in line with inflation

✅ Shows true per-kWh cost plus separate rebate line

✅ Driven by nuclear refurbishment and supply costs

 

The Ontario Energy Board says electricity rate changes for households and small businesses will be going up starting next week.

The agency says rates are scheduled to increased by about $1.99 or nearly 2% for a typical residential customer who uses 700 kilowatt hours per month.

The provincial government said in March it would continue to subsidize hydro rates, through legislation to lower rates, and hold any increases to the rate of inflation.

The OEB says the new rates, which the board says are “in line” with inflation, will take effect Nov. 1 as changes for electricity consumers roll out and could be noticed on bills within a few weeks of that date.

Prices are increasing partly due to government legislation aimed at reflecting the actual cost of supply on bills, and partly due to the refurbishment of nuclear facilities, contributing to higher hydro bills for some consumers.

So, effective November 1, Ontario electricity bills will show the true cost of power, after a period of a fixed COVID-19 hydro rate, and will include the new Ontario Electricity Rebate.

Previously the electricity rebate was concealed within the price-per-kilowatt-hour line item on electricity statements, prompting Hydro One bill redesign discussions to improve clarity. This meant customers could not see how much the government rebate was reducing their monthly costs, and bills did not display the true cost of electricity used.

"People deserve facts and accountability, especially when it comes to hydro costs," said Energy Minister Rickford.

The new Ontario Electricity Rebate will appear as a transparent on-bill line item and will replace the former government's Fair Hydro Plan says a government news release. This change comes in response to the Auditor General's special report on the former government's Fair Hydro Plan which revealed that "the government created a needlessly complex accounting/financing structure for the electricity rate reduction in order to avoid showing a deficit or an increase in net debt."

"The Electricity Distributors Association commends the government's commitment to making Ontario's electricity bills more transparent," said Teresa Sarkesian, President of the Electricity Distributors Association. "As the part of our electricity system that is closest to customers, local hydro utilities appreciated the opportunity to work with the government on implementing this important initiative. We worked to ensure that customers who receive their electricity bill will have a clear understanding of the true cost of power and the amount of their on-bill rebate. Local hydro utilities are focused on making electricity more affordable, reducing red tape, and providing customers with a modern and reliable electricity system that works for them."

The average customer will see the electricity line on their bill rise, showing the real cost per kilowatt hour. The new Ontario Electricity Rebate will compensate for that rise, and will be displayed as a separate line item on hydro bills. The average residential bill will rise in line with the rate of inflation.

 

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Renewables are not making electricity any more expensive

Renewables' Impact on US Wholesale Electricity Prices is clear: DOE analysis shows wind and solar, capacity gains, and natural gas lowering rates, shifting daily patterns, and triggering occasional negative pricing in PJM and ERCOT.

 

Key Points

DOE data show wind and solar lower wholesale prices, reshape price curves, and cause negative pricing in markets.

✅ Natural gas price declines remain the largest driver of cheaper power

✅ Wind and solar shift seasonal and time-of-day price patterns

✅ Negative wholesale prices appear near high wind and solar output

 

One of the arguments that's consistently been raised against doing anything about climate change is that it will be expensive. On the more extreme end of the spectrum, there have been dire warnings about plunging standards of living due to skyrocketing electricity prices. The plunging cost of renewables like solar cheaper than gas has largely silenced these warnings, but a new report from the Department of Energy suggests that, even earlier, renewables were actually lowering the price of electricity in the United States.

 

Plunging prices
The report focuses on wholesale electricity prices in the US. Note that these are distinct from the prices consumers actually pay, which includes taxes, fees, payments to support the grid that delivers the electricity, and so on. It's entirely possible for wholesale electricity prices to drop even as consumers end up paying more, and market reforms determine how those changes are passed through. That said, large changes in the wholesale price should ultimately be passed on to consumers to one degree or another.

The Department of Energy analysis focuses on the decade between 2008 and 2017, and it includes an overall analysis of the US market, as well as large individual grids like PJM and ERCOT and, finally, local prices. The decade saw a couple of important trends: low natural gas prices that fostered a rapid expansion of gas-fired generators and the rapid expansion of renewable generation that occurred concurrently with a tremendous drop in price of wind and solar power.

Much of the electricity generated by renewables in this time period would be more expensive than that generated by wind and solar installed today. Not only have prices for the hardware dropped, but the hardware has improved in ways that provide higher capacity factors, meaning that they generate a greater percentage of the maximum capacity. (These changes include things like larger blades on wind turbines and tracking systems for solar panels.) At the same time, operating wind and solar is essentially free once they're installed, so they can always offer a lower price than competing fossil fuel plants.

With those caveats laid out, what does the analysis show? Almost all of the factors influencing the wholesale electricity price considered in this analysis are essentially neutral. Only three factors have pushed the prices higher: the retirement of some plants, the rising price of coal, and prices put on carbon, which only affect some of the regional grids.

In contrast, the drop in the price of natural gas has had a very large effect on the wholesale power price. Depending on the regional grid, it's driven a drop of anywhere from $7 to $53 per megawatt-hour. It's far and away the largest influence on prices over the past decade.

 

Regional variation and negative prices
But renewables have had an influence as well. That influence has ranged from roughly neutral to a cost reduction of $2.2 per MWh in California, largely driven by solar. While the impact of renewables was relatively minor, it is the second-largest influence after natural gas prices, and the data shows that wind and solar are reducing prices rather than increasing them.

The reports note that renewables are influencing wholesale prices in other ways, however. The growth of wind and solar caused the pattern of seasonal price changes to shift in areas of high wind and solar, as seen with solar reshaping prices in Northern Europe as daylight hours and wind patterns shift with the seasons. Similarly, renewables have a time-of-day effect for similar reasons, helping explain why the grid isn't 100% renewable today, which also influences the daily timing price changes, something that's not an issue with fossil fuel power.

A map showing the areas where wholesale electricity prices have gone negative, with darker colors indicating increased frequency.
Enlarge / A map showing the areas where wholesale electricity prices have gone negative, with darker colors indicating increased frequency.

US DOE
One striking feature of areas where renewable power is prevalent is that there are occasional cases in which an oversupply of renewable energy produces negative electricity prices in the wholesale market. (In the least-surprising statement in the report, it concludes that "negative prices in high-wind and high-solar regions occurred most frequently in hours with high wind and solar output.") In most areas, these negative prices are rare enough that they don't have a significant influence on the wholesale price.

That's not true everywhere, however. Areas on the Great Plains see fairly frequent negative prices, and they're growing in prevalence in areas like California, the Southwest, and the northern areas of New York and New England, while negative prices in France have been observed in similar conditions. In these areas, negative wholesale prices near solar plants have dropped the overall price by 3%. Near wind plants, that figure is 6%.

None of this is meant to indicate that there are no scenarios where expanded renewable energy could eventually cause wholesale prices to rise. At sufficient levels, the need for storage, backup plants, and grid management could potentially offset their low costs, a dynamic sometimes referred to as clean energy's dirty secret by analysts. But it's clear we have not yet reached that point. And if the prices of renewables continue to drop, then that point could potentially recede fast enough not to matter.

 

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Alberta ratepayers on the hook for unpaid gas and electricity bills from utility deferral program

Alberta Utility Rate Rider will add a modest fee to electricity bills and natural gas charges as the AUC recovers outstanding debt from the COVID-19 deferral program via AESO and the Balancing Pool.

 

Key Points

A temporary surcharge on Alberta power and gas bills to recover unpaid COVID-19 deferral debt, administered by the AUC.

✅ Applies per kWh and per GJ based on consumption

✅ Recovers unpaid balances from 2020-21 bill deferrals

✅ Collected via AESO and the Balancing Pool under AUC oversight

 

The province says Alberta ratepayers should expect to see an extra fee on their utility bills in the coming months.

That fee is meant to recover the outstanding debt owed to gas and electricity providers resulting from last year's three-month utility deferral program offered to struggling Albertans during the pandemic.

The provincial government announced the utility deferral program in March 2020 then formalized it with legislation, alongside a consumer price cap on power bills that shaped later policy decisions.

The program allowed residential, farm and small commercial customers who used less than 250,000 kilowatt hours of electricity per year — or consumed less than 2,500 gigajoules per year — to postpone their bills amid the COVID-19 pandemic.

According to the province, 350,000 customers, or approximately 13 per cent of the natural gas and electricity consumer base, took advantage of the program.

Customers had a year to repay providers what they owed. That deadline ended June 18, 2021.

The Alberta Utilities Commission (AUC), which regulates the utilities sector and natural gas and electricity markets and oversees a rate of last resort framework, said the vast majority of consumers have squared up.

But for those who didn't, provincial legislation dictates that Alberta ratepayers must cover any unpaid debt. The legislation exempts Medicine Hat utility customers for electricity and gas co-operative customers for gas.

"When the program was announced, it was very clear that it was a deferral program and that the monies would need to be paid back," said Geoff Scotton, a spokesperson with the Alberta Utilities Commission.

"Now we're in the situation where the providers, in good faith, who enabled those payment deferrals, need to be made whole. That's really the goal here."

Amount to be determined
Margeaux Maron, a spokesperson for Associate Minister of Natural Gas and Electricity Dale Nally, said based on early estimates, $13 to $16 million of $92 million in deferred payments remain outstanding.

As a result, the province expects the average Albertan will end up paying, unlike jurisdictions offering a lump-sum credit, a fraction of a dollar extra per monthly gas and electricity bill over a handful of months.

Scotton said at this point, there are too many unknown factors to know the exact size of the rate rider. However, he said he expects it to be modest.

Scotton said affected parties first have until the end of this week to notify the AUC exactly how much they are still owed.

Those parties include the Alberta Electric System Operator and the Balancing Pool, who essentially acted as bankers with respect to the distribution and transmission of the utilities to customers who deferred their payments.

Regulated service providers may also seek reimbursement on administrative and carrying costs, even as issues like a BC Hydro fund surplus spark debate elsewhere.

Then, Scotton said, once the outstanding amounts are known, the AUC will hold a public proceeding, similar to a Nova Scotia rate case, to determine the amount and the duration of the rate rider to be applied to each natural gas and electricity bill.

The amount will be based on consumption: per kilowatt hour for electricity and per gigajoule for natural gas.

That means larger businesses will end up paying more than the average Albertan.

Scotton said the AUC will expedite the hearing process and it expects to have a decision by the end of the summer.

Rate rider a 'surprise'
Joel MacDonald with Energyrates.ca — an organization which compares energy rates across the country — said it's not the amount of the rate rider that bothers him, but the fact that the repayment process wasn't made clear at the onset of the program.

"It came to us as a bit of a surprise," MacDonald said.

He said what was sold as a deferral program seems more like an electricity rebate program, or an "ability to pay" program.

"As opposed to the retailers looking into collection methods, anything that wasn't paid is basically just being forced upon all Alberta consumers," MacDonald said.

The expectation set out in the deferral legislation and regulations state utility providers such as Enmax and Epcor are expected to use reasonable efforts to try to collect the unpaid balances. It must then detail those reasonable efforts to the AUC.

A spokesperson for Enmax said it first works with its customers to find manageable payment arrangements and connects them with support services if they are unable to pay.

Then, if payment can't be arranged, it said it will work with a collection agency, which may even result in disconnection of service.

The spokesperson said only after all efforts have failed would Enmax seek reimbursement through this program.

Use tax revenues?
MacDonald also questioned why a government program isn't being paid for through general tax revenues.

He compared the utility deferral program to a mortgage subsidy program.

"Imagine that [Canada Mortgage And Housing Corporation] said, 'Hey, we had to give mortgage deferrals and some of these people never paid back their deferrals, so we're going to add an extra $300 to everyone's mortgage,'" he said.

"You'd expect that to come off of some sort of general taxation — not being assigned to other people's mortgages, right?"

In response, Maron said due to the current fiscal challenges facing the government — and the expected minimal costs to consumers, and even as a consumer price cap on electricity remains in place — it was determined that a rate rider would be an appropriate mechanism to repay bad debt associated with the program.

Scotton said rate riders aren't unusual — they're used to fine-tune rates for a set period of time.

He said under normal circumstances, regulated service providers can apply to the AUC to impose a rate rider to recover unexpected costs. And in some instances, they can provide a credit.

But in this situation, he said the debt is aggregated and, in turn, being collected more broadly.

 

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Trump Is Seen Replacing Obama’s Power Plant Overhaul With a Tune-Up

Clean Power Plan Rollback signals EPA's shift to inside-the-fence efficiency at coal plants, emphasizing heat-rate improvements over sector-wide decarbonization, renewables, natural gas switching, demand-side efficiency, and carbon capture under Clean Air Act constraints.

 

Key Points

A policy shift by the EPA to replace broad emissions rules with plant-level efficiency standards, limiting CO2 cuts.

✅ Inside-the-fence heat-rate improvements at coal units

✅ Potential CO2 cuts limited to about 6% per plant

✅ Alternatives: fuel switching, renewables, carbon capture

 

President Barack Obama’s signature plan to reduce carbon dioxide emissions from electrical generation took years to develop and touched every aspect of power production and use, from smokestacks to home insulation.

The Trump administration is moving to scrap that plan and has signaled that any alternative it might adopt would take a much less expansive approach, possibly just telling utilities to operate their plants more efficiently.

That’s a strategy environmentalists say is almost certain to fall short of what’s needed.

The Trump administration is making "a wholesale retreat from EPA’s legal, scientific and moral obligation to address the threats of climate change," said former Environmental Protection Agency head Gina McCarthy, the architect of Obama’s Clean Power Plan.

President Donald Trump promised to rip up the initiative, echoing an end to the 'war on coal' message from his campaign, which mandated that states change their overall power mix, displacing coal-fired electricity with that from wind, solar and natural gas. The EPA is about to make it official, arguing the prior administration violated the Clean Air Act by requiring those broad changes to the electricity sector, according to a draft obtained by Bloomberg.

 

Possible Replacements

Later, the agency will also ask the public to weigh in on possible replacements. The administration will ask whether the EPA can or should develop a replacement rule -- and, if so, what actions can be mandated at individual power plants, though some policymakers favor a clean electricity standard to drive broader decarbonization.

 

Follow the Trump Administration’s Every Move

Such changes -- such as adding automation or replacing worn turbine seals -- would yield at most a 6 percent gain in efficiency, along with a corresponding fall in greenhouse gas emissions, according to earlier modeling by the Environmental Protection Agency and other analysts. That compares to the 32 percent drop in emissions by 2030 under Obama’s Clean Power Plan.

"In these existing plants, there’s only so many places to look for savings," said John Larsen, a director of the Rhodium Group, a research firm. "There’s only so many opportunities within a big spinning machine like that."

EPA Administrator Scott Pruitt outlined such an "inside-the-fence-line" approach in 2014, later embodied in the Affordable Clean Energy rule that industry groups backed, when he served as Oklahoma’s attorney general. Under his blueprint, states would set emissions standards after a detailed unit-by-unit analysis, looking at what reductions are possible given "the engineering limits of each facility."

The EPA has not decided whether it will promulgate a new rule at all, though it has also proposed new pollution limits for coal and gas plants in separate actions. In a forthcoming advanced notice of proposed rulemaking, the EPA will ask "what inside-the-fence-line options are legal, feasible and appropriate," according to a document obtained by Bloomberg.

Increased efficiency at a coal plant -- known as heat-rate improvement -- translates into fewer carbon-dioxide emissions per unit of electric power generated.

Under Obama, the EPA envisioned utilities would make some straightforward efficiency improvements at coal-fired power plants as the first step to comply with the Clean Power Plan. But that was expected to coincide with bigger, broader changes -- such as using more cleaner-burning natural gas, adding more renewable power projects and simply encouraging customers to do a better job turning down their thermostats and turning off their lights.

Obama’s EPA didn’t ask utilities to wring every ounce of efficiency they could out of coal-fired power plants because they saw the other options as cheaper. A plant-specific approach "would be grossly insufficient to address the public health and environmental impacts from CO2 emissions," Obama’s EPA said.

That approach might yield modest emissions reductions and, in a perverse twist, might event have the opposite effect. If utilities make coal plants more efficient -- thereby driving down operating costs -- they also make them more competitive with natural gas and renewables, "so they might run more and pollute more," said Conrad Schneider, advocacy director for the Clean Air Task Force.  

In a competitive market, any improvement in emissions produced for each unit of energy could be overwhelmed by an increase in electrical output, and debates over changes to electricity pricing under Trump and Perry added further uncertainty.

"A very minor heat rate improvement program would very likely result in increased emissions," Schneider said. "It might be worse than nothing."

Power companies want to get as much electricity as possible from every pound of coal, so they already have an incentive to keep efficiency high, said Jeff Holmstead, a former assistant EPA administrator now at Bracewell LLP. But an EPA regulation known as “new source review” has discouraged some from making those changes, for fear of triggering other pollution-control requirements, he said.

"If EPA’s replacement rule allows companies to improve efficiency without triggering new source review, it would make a real difference in terms of reducing carbon-dioxide emissions," Holmstead said.

 

Modest Impact

A plant-specific approach doesn’t have to mean modest impact.

"If you’re thinking about what can be done at the power plants by themselves, you don’t stop at efficiency tune-ups," said David Doniger, director of the Natural Resources Defense Council’s climate and clean air program. "You look at things like switching to natural gas or installing carbon capture and storage."

Requirements that facilities use carbon capture technology or swap in natural gas for coal could actually come close to hitting the same goals as in Obama’s Clean Power Plan -- if not go even further, Schneider said. They just would cost more.

The benefit of the Clean Power Plan "is that it enabled states to create programs and enabled companies to find a reduction strategy that was the most efficient and made the most sense for their own content," said Kathryn Zyla, deputy director of the Georgetown Climate Center. "And that flexibility was really important for the states and companies."

Some utilities, including Houston-based Calpine Corp., PG&E Corp. and Dominion Resources Inc., backed the Obama-era approach. And they are still pushing the Trump administration to be creative now.

"The Clean Power Plan achieved a thoughtful, balanced approach that gave companies and states considerable flexibility on how best to pursue that goal," said Melissa Lavinson, vice president of federal affairs and policy for PG&E’s Pacific Gas and Electric utility. “We look forward to working with the administration to devise an alternative plan for decarbonizing the U.S. economy."

 

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