Solar plant goes to Goodyear

Jersey Electricity Standby Charge proposes a grid-backup fee for commercial self-generators of renewable energy, with a review delaying implementation; potential tariff impacts include 10-15 percent price rises, cost recovery, and network reliability.

Key Points

A grid-backup fee for Jersey self-generating businesses to share network costs fairly and curb electricity price rises.

✅ Applies to commercial self-generation using renewables or not

✅ Excludes full exporters and pre-charge installations

✅ Aims to recover grid costs and avoid 10-15% price rises

Electricity prices could rise by ten to 15 per cent if a standby charge for some commercial customers is not implemented, the chief executive of Jersey Electricity has warned.

Jersey Electricity has proposed extending a monthly fee to commercial customers who generate their own power through renewable means but still wish to be connected to Jersey’s grid as a back-up, echoing Ontario energy storage efforts to shore up reliability.

The States recently unanimously backed a proposal lodged by Deputy Carolyn Labey to delay administering the levy until a review could be carried out, as seen in the UK grid's net-zero transformation debates influencing policy. The charge, was due to be implemented next month but will now not be introduced until May, or later if the review has not concluded.

But Chris Ambler, JE chief executive, warned that failing to implement the standby charge could lead to additional costs for customers.

Some of JE’s commercial customers have already been charged a standby fee after generating their own power through non-renewable means.

The charge does not apply to businesses which export all of their electricity back into the system as part of a buy-back scheme or those which install self-generation facilities before the charge is implemented.

Deputy Labey argued that the Island had done ‘absolutely nothing’ to support the use of renewable energies and instead were discouraging locally generated power by allowing JE to set a standby charge.

She added that she was pleased that the Council of Ministers had already starting reviewing the charges but the debate needed to go ahead to ensure the work continued after the May election.

During a States debate last month, she said: ‘It is increasingly concerning that we, as an island in the 21st century, are happy for our electricity to be provided to us by an unregulated, publicly listed for-profit company with a monopoly on energy.

‘I also think that introducing a charge on renewables at a time when the world is experiencing a revolution in renewable energies, including offshore vessel charging solutions, which are becoming increasingly economic, is something that needs to be investigated.

‘Jersey should be looking to diversify our electricity production and supply, to help protect us from price and currency fluctuations and to ensure that we, as an island, receive the best deal possible for Islanders.’

Mr Ambler said that any price increase would be dependent on the future take-up and use of renewable-energy technology in Jersey.

He said: ‘The cost impact would not be significant in the short term but in the long term it could be significant. I think that we are obliged to let our customers know that.

‘It is very difficult to assess but if we are not able to levy a fair charge, then, as electricity shortages in Canada have shown, we could see prices rise by ten to 15 per cent over time.’

Mr Ambler added that his company was in favour of the use of renewable energy, with a third of the company’s electricity being generated by hydroelectric sources, but that the costs of implementing it needed to be fairly distributed, given how big battery rule changes can affect project viability elsewhere in the market.

And he said that, while it was difficult to quantify how much could be lost if the standby charge was not implemented, it could cost the company over £10 million.

‘In 2014, we only increased our prices by one per cent,’ he said. ‘We are reviewing our prices at the moment but if we did put an increase in place it would be modest and it would not be linked to the standby charge.’

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EU Energy Price Surge is driving up electricity and gas costs, inflation, and cost of living across the EU, prompting tax cuts, price caps, subsidies, and household support measures in France, Italy, Spain, and Germany.

Key Points

A surge in EU gas and electricity costs driving inflation and prompting government subsidies, tax cuts, and price caps.

✅ Low-income EU households now spend 50-70 percent more on energy.

✅ Governments deploy tax cuts, price caps, and direct subsidies.

✅ Gas-dependent power markets drive electricity price spikes.

Higher energy prices, including for natural gas, are pushing up electricity prices and the cost of living for households across the EU, prompting governments to cut taxes and provide financial support to the tune of several billion euros.

In the United Kingdom, households are bracing for high winter energy bills this season.

A series of reports published by Cambridge Econometrics in October and November 2022 found that households in EU countries are spending much more on energy than in 2020 and that governments are spending billions of euros to help consumers pay bills and cut taxes.

In France, for example, the poorest households now spend roughly one-third more on energy than in 2020. Between August 2020 and August 2022, household energy prices increased by 37 percent, while overall inflation increased by 9.2 percent.

“We estimate that the increase in household energy prices make an average French household €410 worse off in 2022 compared to 2020, mostly due to higher gas prices,” said the report.

In response to rising energy prices, the French government has adopted price caps and support measures forecast to cost over €71 billion, equivalent to 2.9 percent of French GDP, according to the U.K.-based consultancy.

In Italy, fossil fuels alone were responsible for roughly 30 percent of the country’s annual rate of inflation during spring 2022, according to Cambridge Econometrics. Unlike in other European countries, retail electricity prices have outpaced other energy prices in Italy and were 112 percent higher in July 2022 than in August 2020, the report found. Over the same time period, retail petrol prices were up 14 percent, diesel up 22 percent, and natural gas up 42 percent.

We estimate that households in the lowest-income quintile now spend about 50 percent more on energy than in 2020.

“We estimate that before government support, an average Italian household will be spending around €1,400 more on energy and fuel bills this year than in 2020,” the report said. “Low-income households are worse affected by the increasing energy prices: we estimate that households in the lowest-income quintile now spend about 50 percent more on energy than in 2020.”

Electricity production in Italy is dominated by natural gas, which has also led to a spike in wholesale electricity prices. In 2010, natural gas accounted for 50 percent of all electricity production. The share of natural gas fell to 33 percent in 2014, but then rose again, reaching 48 percent in 2021, and 56 percent in the first half of 2022, according to the report, as gas filled the gap of record low hydro power production in 2022.

In Spain, where electricity prices have seen extreme spikes, low-income households are now spending an estimated 70% more on energy than in 2020, according to Cambridge Econometrics.

Low-income squeeze
In Spain, low-income households are now spending an estimated 70% more on energy than in 2020, according to Cambridge Econometrics. It noted that the Spanish government has intervened heavily in energy markets by cutting taxes, introducing cash transfers for households, and capping the price of natural gas for power generators. The latter has led to lower electricity prices than in many other EU countries.

These support measures are forecast to cost the Spanish government over €35 billion, equivalent to nearly 3 percent of Spain’s GDP. Yet consumers will still feel the burden of higher costs of living, and rolling back electricity prices may prove difficult in the near term.

In March, electricity prices alone were responsible for 45 percent of year-on-year inflation in Spain but prices have since fallen as a result of government intervention, Cambridge Econometrics said. Between May and July, fossil fuels prices accounted for 19-25 percent of the overall inflation rate, and electricity prices for 16 percent.

Support measures
Rising inflation is also a real challenge in Germany, Europe’s largest economy, where German power prices have surged this year, adding pressure. Also there, higher gas prices are to blame.

“We estimate that the increase in energy prices currently make an average household €735 worse off in 2022 compared to 2020, mostly due to higher gas prices,” Cambridge Econometrics said, in a report focused on Germany.

The German government has introduced a number of support measures in order to help households, businesses and industry to pay energy bills, amid rising heating and electricity costs for consumers, including price caps that are expected to take effect in March next year. Moreover, households’ energy bills for December this year will be paid by the state. According to the report, these interventions will mitigate the impact of higher prices “to some extent”, but the aid measures are forecast to cost the government nearly 5 percent of GDP.

Fossil-fuel effect
In addition to gas, higher coal prices have also pushed up inflation in some countries, and U.S. electricity prices have reached multi-decade highs as inflation endures.

In Poland, which is heavily dependent on coal for electricity generation, fossil fuels accounted for roughly 40 percent of Poland’s overall year-on-year inflation rate in June 2022, which stood at over 14 percent, the consultancy said.

The price of household coal, which is widely used in heating Polish homes, increased by 157 percent between August 2021 and August 2022.

Higher energy prices in Poland are partly due to Polish and EU sanctions against Russian gas and coal. Other drivers are the weakening of the Polish zloty against the U.S. dollar and the euro, and the uptick in global demand after COVID-19 lockdowns, said Cambridge Econometrics.

Electricity prices have risen at a much slower pace than energy for transport and heating, with an annualized increase of 5.1 percent.

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New England Clean Energy Connect advances despite court delays, installing steel poles on a Maine corridor for Canadian hydropower, while legal challenges seek environmental review; permits, jobs, and grid upgrades drive the renewable transmission project.

Key Points

An HV line in Maine delivering 1,200 MW of Canadian hydropower to New England to cut emissions and stabilize costs.

✅ Appeals court pauses 53-mile new section; upgrades continue

✅ 1,200 MW hydropower aims to cut emissions, stabilize rates

✅ Permits issued; environmental review litigation ongoing

Construction on part of a $1 billion electricity transmission corridor through sparsely populated woods in western Maine is on hold because of legal action, echoing Clean Line's Iowa withdrawal amid court uncertainty, but that doesn't mean all building has been halted.

Workers installed the first of 829 steel poles Tuesday on a widened portion of the existing corridor that is part of the project near The Forks, as the groundwork is laid for the 145-mile ( 230-kilometre ) New England Clean Energy Connect, a project central to Maine's debate over the 145-mile line moving forward.

The work is getting started even though the 1st U.S. Circuit Court of Appeals delayed construction of a new 53-mile ( 85-kilometre ) section.

Three conservation groups are seeking an injunction to delay the project while they sue to force the U.S. Army Corps of Engineers to conduct a more rigorous environmental review.

In western Maine, workers already have staged heavy equipment and timber “mats” that will be used to prevent the equipment from damaging the ground. About 275 Maine workers already have been hired, and more would be hired if not for the litigation, officials said.

“This project has always promised to provide an economic boost to Maine’s economy, and we are already seeing those benefits take shape," Thorn Dickinson, CEO of the New England Clean Energy Connect, said Tuesday.

The electricity transmission line would provide a conduit for up to 1,200 megawatts of Canadian hydropower, reducing greenhouse emissions and stabilizing energy costs in New England as states pursue Connecticut's market overhaul to improve market design, supporters say.

The project, which would be fully funded by Massachusetts ratepayers to meet the state's clean energy goals after New Hampshire rejected a Quebec-Massachusetts proposal elsewhere, calls for construction of a high-voltage power line from Mount Beattie Township on the Canadian border to the regional power grid in Lewiston, Maine.

Critics have been trying to stop the project, reflecting clashes over New Hampshire hydropower in the region, saying it would destroy wilderness in western Maine. They also say that the environmental benefits of the project have been overstated.

In addition to the lawsuit, opponents have submitted petitions seeking to have a statewide vote, even as a Maine court ruling on Hydro-Quebec exports has reshaped the legal landscape.

Sandi Howard, a leading opponent of the project, said the decision by the company to proceed showed “disdain for everyday Mainers” by ignoring permit appeals and ongoing litigation.

“For years, CMP has pushed the false narrative that their unpopular and destructive project is a ‘done deal’ to bully Mainers into submission on this for-profit project. But to be clear, we won’t stop until Maine voters (their customers), have the chance to vote,” said Howard, who led the referendum petition drive for the No CMP Corridor PAC.

The project has received permits from the Army Corps, Maine Department of Environmental Protection, Maine Land Use Planning Commission and Maine Public Utilities Commission.

The final approval came in the form of a presidential permit issued last month from the U.S. Department of Energy, providing green light for the interconnect at the Canadian border, even as customer backlash to utility acquisitions elsewhere underscores public scrutiny.

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Los Angeles Power Station Fire prompts LADWP to shut a Northridge/Reseda substation, causing a San Fernando Valley outage amid a heatwave; high-voltage equipment and mineral oil burned as 94,000 customers lost power, elevator rescues reported.

Key Points

An LADWP substation fire in Northridge/Reseda caused a major outage; 94,000 customers affected as crews restore power.

✅ Fire started around 6:52 p.m.; fully extinguished by 9 p.m.

✅ High-voltage gear and mineral oil burned; no injuries reported.

✅ Outages hit Porter Ranch, Reseda, West Hills, Granada Hills.

About 94,000 customers were without electricity Saturday night after the Los Angeles Department of Water and Power shut down a power station in the northeast San Fernando Valley that caught fire, the agency said.

The fire at the station in the Northridge/Reseda area of Los Angeles started about 6:52 p.m. and involved equipment that carries high-voltage electricity and distributes it at lower voltages to customers in the surrounding area, the department said, even as other utilities sometimes deploy wildfire safety shut-offs to reduce risk during dangerous conditions.

The department shut off power to the station as a precautionary move, and it is restoring power now that the fire has been put out, similar to restoration after intentional shut-offs in other parts of California. Initially, 140,000 customers were without power. That number had been cut to 94,000 by 11 p.m.

The power outage comes as much of California baked in heat that broke records, and rolling blackout warnings were issued as the grid strained. A record that stood 131 years in Los Angeles was snapped when the temperature spiked at 98 degrees downtown.

People reported losing power in Porter Ranch, Winnetka, West Hills, Canoga Park, Woodland Hills, Granada Hills, North Hills, Reseda and Chatsworth, KABC TV reported, highlighting electricity inequality across communities.

Shortly after the blaze broke out, firefighters found a huge container of mineral oil that is used to cool electrical equipment on fire, Los Angeles Fire Department spokesman Brian Humphrey told the Los Angeles Times. The incident underscores infrastructure risks that in some regions have required a complete grid rebuild after severe storms.

Firefighters had the blaze under control by 8:30 p.m. and were able to put it out by 9 p.m., Humphrey said. "These were fierce flames, with smoke towering more than 300 feet into the sky," he told the newspaper.

No one was injured.

Firefighters rescued people who were stranded in elevators, Humphrey said.

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Texas Proposition 7 Energy Fund will finance ERCOT grid reliability via loans and grants for new on-demand natural gas plants, maintenance, and modernization, administered by the Public Utility Commission of Texas after Winter Storm Uri.

Key Points

State-managed fund providing loans and grants to expand and upgrade ERCOT power generation for grid reliability.

✅ $7.2B incentives for new dispatchable plants in ERCOT

✅ Administered by Public Utility Commission of Texas

✅ Aims to prevent outages like Winter Storm Uri

Texans are set to vote on Tuesday on a constitutional amendment to determine whether the state will create a special fund for financing the "construction, maintenance, and modernization of its electric generating facilities."

The energy fund would be administered and used only by the Public Utility Commission of Texas to provide loans and grants to maintain and upgrade electric generating facilities and improve electricity reliability across the state.

The biggest chunk of the fund, $7.2 billion, would go into loans and incentives to build new power-generating facilities in the ERCOT (Electric Reliability Council of Texas) region, where ERCOT has issued an RFP for winter capacity to address seasonal concerns.

The proposal, titled Proposition 7, is one of several electricity market reforms under consideration by lawmakers and regulators in Texas to avoid another energy crisis like the one caused by a deadly winter storm in February 2021.

That storm, known as Winter Storm Uri, left millions without power, water and heat for days as ERCOT struggled to prevent a grid collapse after the shutdown of an unusually large amount of generation, and bailout proposals soon surfaced in the Legislature as the market reeled.

Pablo Vegas, president and CEO of ERCOT, emphasized the grid has become more “volatile” given the current resources, as the Texas power grid faces recurring challenges.

“The complexities of managing a growing demand, and a very dynamic load environment with those types of resources becomes more and more challenging,” Vegas said Tuesday during a meeting of the ERCOT board of directors.

Vegas said one solution to overcome the challenge is investing in power production that is available on demand, like power plants fueled by natural gas. Those plants can help during times when the need for electricity strains the supply.

“With the passing of Proposition 7 on the ballot this November, we’ll see those incentives combined to incentivize a more balanced development strategy going forward,” Vegas told board members.

If Proposition 7 is passed by voters, it would enact S.B. 2627, which establishes an advisory committee to oversee the fund and the various projects it could be used for, amid severe-heat blackout risks that affect the broader U.S. $5 billion would be transferred from the General Revenue Fund to the Texas Energy Fund if Proposition 7 passes.

Opposition for Proposition 7 comes from the Lone Star chapter of the Sierra Club, an environmental organization based in Austin and which has issued a statement on Gov. Abbott's demands regarding grid policy. Cyrus Reed, conservation director of the Lone Star chapter, said the Texas energy fund is slated to benefit private utilities to build gas plants using taxpayer’s money.

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Hydro One Q2 Earnings surge on a one-time gain from a court ruling on a deferred tax asset, lifting profit, revenue, and adjusted EPS at Ontario's largest utility regulated by the Ontario Energy Board.

Key Points

Hydro One Q2 earnings jumped on an $867M court gain, with revenue at $1.67B and adjusted EPS improving to $0.39.

✅ One-time gain: $867M from tax appeal ruling.

✅ Revenue: $1.67B vs $1.41B last year.

✅ Adjusted EPS: $0.39 vs $0.26.

Hydro One Ltd., following the Peterborough Distribution sale transaction closing, reported a second-quarter profit of $1.1 billion, boosted by a one-time gain related to a court decision.

The power utility says it saw a one-time gain of $867 million in the quarter due to an Ontario court ruling on a deferred tax asset appeal that set aside an Ontario Energy Board decision earlier.

Hydro One says the profit amounted to $1.84 per share for the quarter ended June 30, amid investor concerns about uncertainties, up from $155 million or 26 cents per share a year earlier.

Shares also moved lower after the Ontario government announced leadership changes, as seen when Hydro One shares fell on the news in prior trading.

On an adjusted basis, it says it earned 39 cents per share for the quarter, despite earlier profit plunge headlines, up from an adjusted profit of 26 cents per share in the same quarter last year.

Revenue totalled $1.67 billion, up from $1.41 billion in the second quarter of 2019, while other Canadian utilities like Manitoba Hydro face heavy debt burdens.

Hydro One is Ontario’s largest electricity transmission and distribution provider, and its CEO compensation has drawn scrutiny in the province.

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