Generational changes happening at power plants

Ontario CDM Programs expand energy efficiency, demand response, and DER incentives via IESO's Save on Energy, cutting peak demand, lowering bills, and supporting electrification, retrofits, and LED lighting to meet Ontario's growing electricity needs.

Key Points

Ontario CDM Programs are IESO incentives that cut peak demand and energy use via demand response, retrofits and DERs.

✅ Delivered by IESO's Save on Energy to reduce peak demand

✅ Incentives for demand response, retrofits, LEDs, and DER solutions

✅ Help homes, businesses, and greenhouses lower bills and emissions

Ontario will be making available four new and expanded energy-efficiency programs, also known as Conservation and Demand Management (CDM) programs, to ensure a reliable, affordable, and clean electricity system, including ultra-low overnight pricing options to power the province, drive electrification and support strong economic growth. As there will be a need for additional electricity capacity in Ontario beginning in 2025, and continuing through the decade, CDM programs are among the fastest and most cost-effective ways of meeting electricity system needs.

Conservation and Demand Management

The Ontario government launched the 2021-2024 CDM Framework on January 1, 2021. The framework focuses on cost-effectively meeting the needs of Ontario’s electricity system, including by focusing on the achievement of provincial peak demand reductions and initiatives such as extended off-peak electricity rates, as well as on targeted approaches to address regional and/or local electricity system needs.

CDM programs are delivered by the Independent Electricity System Operator (IESO), which implemented staff lockdown measures during COVID-19, through the Save on Energy brand. These programs address electricity system needs and help consumers reduce their electricity consumption to lower their bills. CDM programs and incentives are available for homeowners, small businesses, large businesses, and contractors, and First Nations communities.

New and Expanded Programs

The four new and expanded CDM programs will include:

A new Residential Demand Response Program for homes with existing central air conditioning and smart thermostats to help deliver peak demand reductions. Households who meet the criteria could voluntarily enroll in this program and, alongside protections like disconnection moratoriums for residential customers, be paid an incentive in return for the IESO being able to reduce their cooling load on a select number of summer afternoons to reduce peak demand. There are an estimated 600,000 smart thermostats installed in Ontario.
Targeted support for greenhouses in Southwest Ontario, including incentives to install LED lighting, non-lighting measures or behind-the-meter distributed energy resources (DER), such as combined solar generation and battery storage.
Enhancements to the Save On Energy Retrofit Program for business, municipalities, institutional and industrial consumers to include custom energy-efficiency projects. Examples of potential projects could include chiller and other HVAC upgrades for a local arena, building automation and air handling systems for a hospital, or building envelope upgrades for a local business.
Enhancements to the Local Initiatives Program to reduce barriers to participation and to add flexibility for incentives for DER solutions.
It is the government’s intention that the new and expanded CDM programs will be available to eligible electricity customers beginning in Spring 2023.

The IESO estimates that the new program offers will deliver total provincial peak electricity demand savings of 285 megawatts (MW) and annual energy savings of 1.1 terawatt hours (TWh) by 2025, reflecting pandemic-era electricity usage shifts across Ontario. Savings will persist beyond 2025 with a total reduction in system costs by approximately $650 million over the lifetime of the measures, and will support economic recovery, as seen with electricity relief during COVID-19 measures, decarbonization and energy cost management for homes and businesses.

These enhancements will have a particular impact in Southwest Ontario, with regional peak demand savings of 225 MW, helping to alleviate electricity system constraints in the region and foster economic development, supported by stable electricity pricing for industrial and commercial companies in Ontario.

The overall savings from this CDM programming will result in an estimated three million tonnes of greenhouse gas emissions reductions over the lifetime of the energy-efficiency measures to help achieve Ontario’s climate targets and protect the environment for the future.

The IESO will be updating the CDM Framework Program Plan, which provides a detailed breakdown of program budgets and energy savings and peak demand targets expected to be achieved.

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North Carolina Utility Arrears Crisis strains households and municipal budgets as COVID-19 cuts jobs; unpaid utility bills mount, shutoffs loom, and emergency aid, unemployment benefits, and CARES Act relief lag behind rising arrears across cities.

Key Points

A COVID-19 driven spike in unpaid utility bills, threatening households and municipal budgets as federal aid lapses.

✅ 1 million families behind on power, water, sewage bills

✅ $218M arrears accrued April to June, double last year

✅ Municipal utilities face shutoffs, budget shortfalls

As many as 1 million families in North Carolina have fallen behind on their electric, water and sewage bills, a sign of energy insecurity threatening residents and their cities with severe financial hardship unless federal lawmakers act to approve more emergency aid.

The trouble stems from the widespread economic havoc wrought by the coronavirus, which has left millions of workers out of a job and struggling to cover their monthly costs as some states moved to suspend utility shut-offs to provide relief. Together, they’ve been late or missed a total of $218 million in utility payments between April 1 and the end of June, according to data released recently by the state, nearly double the amount in arrears at this time last year.

In some cases, cities that own or operate their own utilities have been forced to absorb these losses, as some utilities reconnected customers to prevent harm, creating a dire situation in which the government’s attempt to save people from the financial brink instead has pushed municipal coffers to their own breaking point.

In Elizabeth City, N.C., for example, about 2,500 residents haven’t paid their electric bills on time, according to Richard Olson, the city manager. The late payments at one point proved so problematic that Olson said he calculated Elizabeth City wouldn’t have enough money to pay for its expenses in July. In response, city leaders requested and obtained a waiver from a statewide order, similar to New York’s disconnection moratorium, issued in March, that protects people from being penalized for their past-due utility bills.

The predicament has presented unique budget challenges throughout North Carolina, while illustrating the consequences of a cash crunch plaguing the entire country, where proposals such as a Texas electricity market bailout surfaced following severe grid stress. State and federal leaders have extended a range of coronavirus relief programs since March to try to help people through the pandemic. But the money is limited and restricted — and it’s not clear whether more help from Congress is on the way — creating a crisis in which the nation’s economic woes are outpacing some of the aid programs adopted to combat them.

“We are entering a phase where the utilities [may] be able to shut off power, but what was propping up people’s economic lives, the unemployment benefits and Cares Act support, won’t be there,” said Paul Meyer, the executive director of the North Carolina League of Municipalities.

White House, GOP in disarray over coronavirus spending plan as deadline nears on expiring emergency aid

The future of that safety-net support — and other federal aid — hangs in the balance as lawmakers returned to work this week in their final sprint ahead of the August recess. The White House and congressional leaders are split over the contours of the next coronavirus relief package, including the need to extend more aid to cities and states as some utilities have waived fees to help customers, and reauthorize an extra $600 in weekly unemployment payments that were approved as part of the Cares Act in March.

Outside Washington, workers, businesses and government officials nationwide have pleaded with federal lawmakers to renew or expand those programs. Last week, Roy Cooper, the Democratic governor of North Carolina, urged Congress to act swiftly and adopt a wide array of new federal spending, including proposals for DOE nuclear cleanup funding, stressing in a letter that the “actions you take in the next few weeks are vital to our ability to emerge from this crisis. ”

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Manitoba-Minnesota Transmission Line connects Bipole III to Minnesota, raising export capacity, as NEB hearings weigh Indigenous rights, treaty obligations, environmental assessment, cumulative effects, and cross-border hydroelectric infrastructure impacts, land access, socio-economic concerns, and regulatory review.

Key Points

A cross-border hydro line linking Manitoba to Minnesota under review on Indigenous rights and environment concerns.

✅ Connects Bipole III to Minnesota to boost exports

✅ NEB hearings include Indigenous rights and treaty issues

✅ Environmental and access impacts debated in regulatory review

Concerned Indigenous groups asked the National Energy Board this week to take into consideration existing and future impacts and treaty rights, which have prompted a halt to Site C work elsewhere, when considering whether to OK a new hydro transmission line between Manitoba and Minnesota.

Friday was the last day of the oral traditional evidence hearings in Winnipeg on Manitoba Hydro's Manitoba-Minnesota Transmission project.

The international project will connect Manitoba Hydro's Bipole III transmission line to Minnesota and increase the province's electricity export capacity to 3185 MW from 2300 MW.

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During the hearings Indigenous groups brought forward concerns and evidence of environmental degradation, echoing Site C dam opponents in other regions, and restricted access to traditional lands.

Ramona Neckoway, a member of the Nelson House First Nation, talked about her concern about the scope of Manitoba Hydro's application to the NEB.

"It's only concerned with a narrow 213 km corridor and thus it erases the histories, socio-economic impacts and the environmental degradation attached to this energy source," said Neckoway.

Prior to the hearings the board stated it did not intend to assess the environmental and socio-economic impacts of upstream or downstream facilities associated with electricity production, even as a utilities watchdog on Site C stability raised questions elsewhere.

However, the board did hear evidence from upstream and downstream affected communities despite objection from Manitoba Hydro lawyers.

"Manitoba Hydro objected to us being here, saying that we are irrelevant, but we are not irrelevant," said Elder Tommy Monias from Cross Lake First Nation.

Manitoba Hydro representative Bruce Owen said, "We respect the NEB hearing process and look forward to the input of all interested parties."

The hearings provided a rare opportunity for First Nations communities, similar to Ontario First Nations urging action, to voice their concerns about the line on a federal level.

"One of the hopes is that this project can't be built until a system-wide assessment is made," said Dr. Peter Kulchyski, an expert witness for the southern chiefs organization and professor of Native Studies at the University of Manitoba.

Hearings continue

The line is already under construction on the American side of the border as the NEB public hearings continue until June 22 with cross examinations and final arguments from Manitoba Hydro and intervenor groups.

The NEB's final decision on the Manitoba-Minnesota transmission line, amid an energy board delay recommendation, will be made before March 2019.

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Brazil ICMS Tax Cap limits state VAT on fuels, natural gas, electricity, communications, and transit, promising short-term price relief amid inflation, with federal compensation to states and potential legal challenges affecting investments and ANP auctions.

Key Points

A policy capping state VAT at 17-18 percent on fuels, electricity, and services to temper prices and inflation.

✅ Caps VAT to 17-18% on fuels, power, telecom, transit

✅ Short-term relief; medium-long term impact uncertain

✅ Federal compensation; potential court challenges, investment risk

Brazil’s congress approved a bill that limits the ICMS tax rate that state governments can charge on fuels, natural gas, electricity, communications, and public transportation. 

Local lawyers told BNamericas that the measure may reduce fuel and power prices in the short term, similar to Brazil power sector relief loans seen during the pandemic, but it is unlikely to produce any major effects in the medium and long term. 

In most states the ceiling was set at 17% or 18% and the federal government will pay compensation to the states for lost tax revenue until December 31, via reduced payments on debts that states owe the federal government.

The bill will become law once signed by President Jair Bolsonaro, who pushed strongly for the proposal with an eye on his struggling reelection campaign for the October presidential election. Double-digit inflation has turned into a major election issue and fuel and electricity prices have been among the main inflation drivers, as seen in EU energy-driven inflation across the bloc this year. Congress’ approval of the bill is seen by analysts as political victory for the Brazilian leader.

How much difference will it make?

Marcus Francisco, tax specialist and partner at Villemor Amaral Advogados, said that in the formation of fuel and electricity prices there are other factors, including high natural gas prices, that drive increases.

“In the case of fuels, if the barrel of oil [price] increases, automatically the final price for the consumer will go up. For electricity, on the other hand, there are several subsidies and policy choices such as Florida rejecting federal solar incentives that are part of the price and that can increase the rate [paid],” he said. 

There is also a possibility that some states will take the issue to the supreme court since ICMS is a key source of revenue for them, Francisco added.

Tiago Severini, a partner at law firm Vieira Rezende, said the comparison between the revenue impact and the effective price reduction, based on the estimates made by the states and the federal government, seems disproportionate, and, as seen in Europe, rolling back European electricity prices is often tougher than it appears. 

“In other words, a large tax collection impact is generated, which is quite unequal among the different states, for a not so strong price reduction,” he said.

“Due to the lack of clarity regarding the precision of the calculations involved, it’s difficult even to assess the adequacy of the offsets the federal government has been considering, and international cases such as France's new electricity pricing scheme illustrate how complex it can be to align fiscal offsets with regulatory constraints, to cover the cost it would have with the compensation for the states” Severini added.

The compensation ideas that are known so far include hiking other taxes, such as the social contribution on net profits (CSLL) that is paid by oil and gas firms focused on exploration and production.

“This can generate severe adverse effects, such as legal disputes, reduced investments in the country, and reduced attractiveness of the new auctions by [sector regulator] ANP, and costly interventions like the Texas electricity market bailout after extreme weather events,” Severini said. 

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Manitoba-Minnesota Transmission Project faces NEB certificate review, with public hearings, Indigenous consultation, and cross-border approval weighing permit vs certificate timelines, potential land expropriation, and Hydro's 2020 in-service date for the 308-MW intertie.

Key Points

A cross-border hydro line linking Manitoba and Minnesota, now under NEB review through a permit or certificate process.

✅ NEB recommends certificate with public hearings and cabinet approval

✅ Stakeholders cite land, health, and economic impacts along route

✅ Hydro targets May-June 2020 in-service despite review

A recommendation from the National Energy Board could push back the construction start date of a $453-million hydroelectric transmission line from Manitoba to Minnesota.

In a letter to federal Natural Resources Minister Jim Carr, the regulatory agency recommends using a "certificate" approval process, which could take more time than the simpler "permit" process Manitoba Hydro favours.

The certificate process involves public hearings, reflecting First Nations intervention seen in other power-line debates, to weigh the merits of the project, which would then go to the federal cabinet for approval.

The NEB says this process would allow for more procedural flexibility and "address Aboriginal concerns that may arise in the circumstances of this process."

The Manitoba-Minnesota Transmission Project would provide the final link in a chain that brings hydroelectricity from generating stations in northern Manitoba, through the Bipole III transmission line and, like the New England Clean Power Link project, across the U.S. border as part of a 308-megawatt deal with the Green Bay-based Wisconsin Public Service.

When Hydro filed its application in December 2016, it had expected to have approval by the end of August 2017 and to begin construction on the line in mid-December, in order to have the line in operation by May or June 2020.  

Groups representing stakeholders along the proposed route of the transmission line had mixed reactions to the energy board's recommendation.

A lawyer representing a coalition of more than 120 landowners in the Rural Municipality of Taché and around La Broquerie, Man., welcomed the opportunity to have a more "fulsome" discussion about the project.

"I think it's a positive step. As people become more familiar with the project, the deficiencies with it become more obvious," said Kevin Toyne, who represents the Southeast Stakeholders Coalition.

Toyne said some coalition members are worried that Hydro will forcibly expropriate land in order to build the line, while others are worried about potential economic and health impacts of having the line so close to their homes. They have proposed moving the line farther east.

When the Clean Environment Commission — an arm's-length provincial government agency — held public hearings on the proposed route earlier this year, the coalition brought their concerns forward, echoing Site C opposition voiced by northerners, but Toyne says both the commission and Hydro ignored them.

Hydro still aiming for 2020 in-service date

The Manitoba Métis Federation also participated in those public hearings. MMF president David Chartrand worries about the impact a possible delay, as seen with the Site C work halt tied to treaty rights, could have on revenue from sales of hydroelectric power to the U.S.

"I know that a lot of money, billions have been invested on this line. And if the connection line is not done, then of course this will be sitting here, not gaining any revenue, which will affect every Métis in this province, given our Hydro bill's going to go up," Chartrand said.The NEB letter to Minister Carr requests that he "determine this matter in an expedited manner."

Manitoba Hydro spokesperson Bruce Owen said in an email that the Crown corporation will participate in whatever process, permit or certificate, the NEB takes.

"Manitoba Hydro does not have any information at this point in time that would change the estimated in-service date (May-June 2020) for the Manitoba-Minnesota Transmission Project," he said.

The federal government "is currently reviewing the NEB's recommendation to designate the project as subject to a certificate, which would result in public hearings," said Alexandre Deslongchamps, a spokesperson for Carr.

"Under the National Energy Board Act, an international power line requires either the approval by the NEB through a permit or approval by the Government of Canada by a certificate. Both must be issued by the NEB," he wrote in an email to CBC News.

By law, the certificate process is not to take longer than 15 months.

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FERC Capacity Markets face scrutiny as GAO flags inconsistent data on resource adequacy and costs, urging performance goals, risk assessment, and better metrics across PJM, ISO-NE, NYISO, and MISO amid cost-recovery proposals.

Key Points

FERC capacity markets aim for resource adequacy, but GAO finds weak data and urges goals and performance reviews.

✅ GAO cites inconsistent data on resource adequacy and costs

✅ Calls for performance goals, metrics, and risk assessment

✅ Applies to PJM, ISO-NE, NYISO; MISO market is voluntary

Capacity markets may or may not be functioning properly, but FERC can't adequately make that determination, according to the GAO report.

"Available information on the level of resource adequacy ... and related costs in regions with and without capacity markets is not comprehensive or consistent," the report found. "Moreover, consistent data on historical trends in resource adequacy and related costs are not available for regions without capacity markets."

The review concluded that FERC collects some useful information in regions with and without capacity markets, but GAO said it "identified problems with data quality, such as inconsistent data."

GAO included three recommendations, including calling for FERC to take steps to improve the quality of data collected, and regularly assess the overall performance of capacity markets by developing goals for those assessments.

"FERC should develop and document an approach to regularly identify, assess, and respond to risks that capacity markets face," the report also recommended. The commission "has not established performance goals for capacity markets, measured progress against those goals, or used performance information to make changes to capacity markets as needed."

The recommendation comes as the agency is grappling with a controversial proposal to assure cost-recovery for struggling coal and nuclear plants in the power markets. So far, the proposal would only apply to power markets with capacity markets, including PJM Interconnection, the New England ISO, the New York ISO and possibly MISO. However MISO only has a voluntary capacity market, making it unclear how the proposed rule would be applied there. 

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