Intel to install rooftop solar panels

Berkshire Hathaway Energy Wind Power drives cheap electricity rates in Iowa via utility-scale wind turbines, integrated transmission, battery storage, and grid management, delivering renewable energy, stable pricing, and long-term rate freezes through 2028.

Key Points

A vertically integrated wind utility lowering Iowa rates via owned generation, transmission, and advanced grid control.

✅ Owned wind assets meet Iowa residential demand

✅ Integrated transmission lowers costs and losses

✅ Rate freeze through 2028 sustains cheap power

In his latest letter to Berkshire Hathaway shareholders, Warren Buffett used the 20th anniversary of Berkshire Hathaway Energy to tout its cheap electricity bills for customers.

When Berkshire purchased the majority share of BHE in 2000, the cost of electricity for its residential customers in Iowa was 8.8 cents per kilowatt-hour (kWh) on average. Since then, these electricity rates have risen at a paltry <1% per year, with a freeze on rate hikes through 2028. As anyone who pays an electricity bill knows, that is an incredible deal.  

As Buffett himself notes with alacrity, “Last year, the rates [BHE’s competitor in Iowa] charged its residential customers were 61% higher than BHE’s. Recently, that utility received a rate increase that will widen the gap to 70%.”

The Winning Strategy

So, what’s Buffett’s secret to cheap electricity? Wind power.

“The extraordinary differential between our rates and theirs is largely the result of our huge accomplishments in converting wind into electricity,” Buffett explains. 

Wind turbines in Iowa that BHE owns and operates are expected to generate about 25.2 million megawatt-hours (MWh) of electricity for its customers, as projects like Building Energy operations begin to contribute. By Buffett’s estimations, that will be enough to power all of its residential customers’ electricity needs in Iowa.  

The company has plans to increase its renewable energy generation in other regions as well. This year, BHE Canada is expected to start construction on a 117.6MW wind farm in Alberta, Canada with its partner, Renewable Energy Systems, that will provide electricity to 79,000 homes in Canada’s oil country.

Observers note that Alberta is a powerhouse for both green energy and fossil fuels, underscoring the region's unique transition.

But I would argue that the secret to BHE’s success perhaps goes deeper than transitioning to sources of renewable energy. There are plenty of other utility companies that have adopted wind and solar power as an energy source. In the U.S., where renewable electricity surpassed coal in 2022, at least 50% of electricity customers have the option to buy renewable electricity from their power supplier, according to the Department of Energy. And some states, such as New York, have gone so far as to allow customers to pick from providers who generate their electricity.

What differentiates BHE from a lot of the competition in the utility space is that it owns the means to generate, store, transmit and supply renewable power to its customers across the U.S., U.K. and Canada, with lessons from the U.K. about wind power informing policy.

In its financial filings for 2019, the company reported that it owns 33,600MW of generation capacity and has 33,400 miles of transmission lines, as well as a 50% interest in Electric Transmission Texas (ETT) that has approximately 1,200 miles of transmission lines. This scale and integration enables BHE to be efficient in the distribution and sale of electricity, including selling renewable energy across regions.

BHE is certainly not alone in building renewable-energy fueled electricity dominions. Its largest competitor, NextEra, built 15GW of wind capacity and has started to expand its utility-scale solar installations. Duke Energy owns and operates 2,900 MW of renewable energy, including wind and solar. Exelon operates 40 wind turbine sites across the U.S. that generate 1,500 MW.

Integrated Utilities Power Ahead

It’s easy to see why utility companies see wind as a competitive source of electricity compared to fossil fuels. As I explained in my previous post, Trump’s Wrong About Wind, the cost of building and generating wind energy have fallen significantly over the past decade. Meanwhile, improvements in battery storage and power management through new technological advancements have made it more reliable (Warren Buffett bet on that one too).

But what is also striking is that integrated power and transmission enables these utility companies to make those decisions; both in terms of sourcing power from renewable energy, as well as the pricing of the final product. Until wind and solar power are widespread, these utility companies are going to have an edge of the more fragmented ends of the industry who can’t make these purchasing or pricing decisions independently. 

Warren Buffett very rarely misses a beat. He’s not the Oracle of Omaha for nothing. Berkshire Hathaway’s ownership of BHE has been immensely profitable for its shareholders. In the year ended December 31, 2019, BHE and its subsidiaries reported net income attributable to BHE shareholders of $2.95 billion.

There’s no question that renewable energy will transform the utility industry over the next decade. That change will be led by the likes of BHE, who have the power to invest, control and manage their own energy generation assets.

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Maritime Link Subsea Cable enables HVDC grid interconnection across the Cabot Strait, linking Nova Scotia with Newfoundland and Labrador to import Muskrat Falls hydroelectric power and expand renewable energy integration and reliability.

Key Points

A 170-km HVDC subsea link connecting Nova Scotia and Newfoundland and Labrador for Muskrat Falls power and renewables

✅ 170-km HVDC subsea route across Cabot Strait

✅ Connects Nova Scotia and Newfoundland and Labrador grids

✅ Enables Muskrat Falls hydro and renewable energy trade

The longest sub-sea electricity cable in North America now connects Nova Scotia and Newfoundland and Labrador, according to the company behind the $1.7-billion Maritime Link project.  

The first of the project's two high-voltage power transmission cables was anchored at Point Aconi, N.S., on Sunday. 

The 170-kilometre long cable across the Cabot Strait will connect the power grids in the two provinces. The link will allow power to flow between the two provinces, as demonstrated by its first electricity transfer milestone, and bring to Nova Scotia electricity generated by the massive Muskrat Falls hydroelectric project in Labrador. 

Ultimately, the Maritime Link will help Nova Scotia reach the renewable energy goals set out by the federal government, said Rick Janega, the president and CEO of Emera Newfoundland and Labrador, whose subsidiary owns the Maritime Link.

"If not for the Maritime Link then really the province would not have the ability to meet those requirements because we're pretty much tapped out of all the hydro in province and all the wind generation without creating new interconnections like the Maritime Link," said Janega. 

Not everyone wanted the link 

Fishermen in Cape Breton had objected to the Maritime Link. They were concerned about how the undersea cable might affect fish in the area. 

The laying of the cable and other construction closed a three-kilometre long and 600-metre wide swath of ocean bottom to fishermen for the entire 2017 lobster season.  

But the company came to an agreement to compensate a group of 60 Cape Breton lobster and crab fishermen affected by the project this season. The terms of the compensation deal were not released. 

Long cable, big job

The transmission cable runs northwest of the Marine Atlantic ferry route between North Sydney, N.S., and Port aux Basques, N.L. 

Installation of the second cable is set to begin in June, a major step comparable to BC Hydro's Site C transmission milestone achieved recently. The entire link should be completed by late 2017 and should go into full service by January 2018.

"We're quite confident as soon as the Maritime Link is in service there will be energy transactions between Nova Scotia Power and Newfoundland Hydro. Both utilities have already identified opportunities to save money and exchange energy between the two provinces," said Janega.

That's two years before power is expected to flow from the Muskrat Falls hydro project. The Labrador-based power generating facility has been hampered by delays.

Those kinds of transmission project delays are expected for such a large project, said Janega, and won't stop the Maritime Link from being used. 

"With the Maritime Link going in service this year providing Nova Scotia the opportunity that it needs to be able to reach carbon reductions and to adapt to climate change and to increase renewable energy content and we're very pleased to be at this state today," said Janega.

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N.B. Power Crypto Mining Moratorium underscores electricity demand risks from bitcoin mining, straining the energy grid and industrial load capacity in New Brunswick, as a cabinet order prioritizes grid reliability, utility planning, and allocation.

Key Points

Official pause on new large-scale crypto mining to protect N.B. Power grid capacity, stability, and reliable supply.

✅ Cabinet order halts new large-scale crypto load requests

✅ Review targets grid reliability, planning, and capacity

✅ Non-crypto industrial customers exempt from prolonged pause

N.B. Power says a freeze on servicing new, large-scale industrial customers in the province remains in place over concerns that the cryptocurrency sector's heavy electricity use could be more than the utility can handle.

The Higgs government quietly endorsed the moratorium in a cabinet order in March 2022 and ordered a review of how the sector might affect the reliable electricity supply and broader electricity future planning in the province.

The cabinet order, filed with the Energy and Utilities Board, said N.B. Power had "policy, technical and operational concerns about [its] capacity to service the anticipated additional load demand" from energy-intensive customers such as crypto mines.

It said the utility had received "several new large-scale, short-notice service requests" to supply electricity to crypto mining companies that could put "significant pressure" on the existing electricity supply.

The order, signed by Premier Blaine Higgs, said non-crypto companies shouldn't be subject to the pause for any longer than required for the review, amid shifts in regional plans like the Atlantic Loop that are altering timelines. Ws.

The freeze was ordered months after Taal Distributed Information Technologies Inc. announced plans to establish a 50-megawatt bitcoin mining operation and transaction processing facility in Grand Falls.

A town official said this week that the deal never went ahead.

24 hours a day
The Taal facility would have joined a 70-megawatt bitcoin mine in Grand Falls operated by Hive Blockchain Technologies.

Hive's Bitcoin mine comprises four large warehouses containing thousands of computers running 24 hours a day to earn cryptocurrency units.

The combined annual electricity consumption of the two mines would exceed what could be produced by the small modular nuclear reactor being designed by ARC Clean Energy Canada of Saint John, even as Nova Scotia advances efforts to harness the Bay of Fundy's powerful tides for clean power.

Put another way, the two mines would gobble up more than three months' electricity from N.B. Power's coal-fired Belledune generating station under current operations.

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Ontario Peak Perks Program boosts energy efficiency with smart thermostats, demand response, and incentives, reducing peak demand, electricity costs, and emissions while supporting grid reliability and Save on Energy initiatives across Ontario businesses and homes.

Key Points

A demand response initiative offering incentives via smart thermostats to cut peak electricity use and lower costs

✅ $75 sign-up, $20 yearly enrollment incentive

✅ Up to 10 summer temperature events; opt-out anytime

✅ Expanded retrofits, greenhouse support, grid savings

The Ontario government is launching the new Peak Perks program to help families save money by conserving energy, building on bill support during COVID-19 initiatives as part of the government’s $342 million expansion of Ontario’s energy-efficiency programs that will reduce demands on the provincial grid. The government is also launching three new and enhanced programs for businesses, municipalities, and other institutions, including targeted support for greenhouse growers in Southwest Ontario.

“Our government is giving families more ways to lower their energy bills with new energy-efficiency programs like Peak Perks and ultra-low overnight rates available to consumers, which will provide families a $75 financial incentive this year in exchange for lowering their energy use at peak times during the summer,” said Todd Smith, Minister of Energy. “The new programs launched today will also help meet the province’s emerging electricity system needs by providing annual electricity savings equivalent to powering approximately 130,000 homes every year and, alongside electricity cost allocation discussions, reduce costs for consumers by over $650 million by 2025.”

The new Peak Perks program provides a financial incentive for residential customers who are willing to conserve energy and reduce their air conditioning at peak times and have an eligible smart thermostat connected to a central air conditioning system or heat pump unit. Participants will receive $75 for enrolling this year, as well as $20 for each year they stay enrolled in the program starting in 2024.

Residential customers can participate in Peak Perks by enrolling and giving their thermostat manufacturer secure access to their thermostat. Participants will be notified when one of the maximum 10 annual temperature change events occurs directly by their thermostat manufacturer on their mobile app and on their thermostat. Peak Perks has been designed to ensure participants are always in control and customers can opt-out of any temperature change event without impacting their incentive.

The Peak Perks program will be available starting in June. Interested customers can visit SaveOnEnergy.ca/PeakPerks today to sign-up for the program waitlist and receive an email notice with information on how to enroll.

In addition to the financial incentive provided by Peak Perks, reducing electricity use during peak demand hours in the summer months helps customers to lower their monthly electricity bills, and measures such as a temporary off-peak rate freeze have complemented these efforts, as these periods tend to be associated with the highest costs for power. Lowering demand during peak periods also allows the province to reduce electricity sector emissions, by reducing the need for electricity generation facilities that only run at times of peak demand such as natural gas.

Ontario has also launched three new and enhanced programs, including an expanded custom Retrofit program for business, municipalities and other institutions, and industrial electricity rate relief initiatives, targeted support for greenhouse growers in Southwest Ontario, as well enhancements to the existing Local Initiatives Program. The expanded Retrofit program alone will feature over $200 million in dedicated funding to support the new custom energy-efficiency retrofit project stream, that will cover up to 50 percent of the cost of approved projects.

These new and expanded energy-efficiency programs are expected to have a strong impact in Southwest Ontario, with regional peak demand savings of 225 megawatts (MW). This, together with the Ontario-Quebec energy swap agreement, will provide additional capacity for the region and support growing economic development. The overall savings from this energy-efficiency programming will result in an estimated three million tonnes of greenhouse gas emission reductions over its lifetime - the equivalent to taking more than 600,000 vehicles off the road for one year.

“Thanks to energy efficiency efforts over the past 15 years, demand for electricity is today about 12 per cent lower than it otherwise would be,” said Lesley Gallinger, President and CEO, of the Independent Electricity System Operator, Ontario’s grid operator and provider of Save on Energy programs to home and business consumers. “Conservation is a valuable and cost-effective resource that supports system reliability and helps drive economic development as we strive towards compliance with clean electricity regulations for a decarbonized electricity grid.”

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UK Market Stability Outlook remains febrile as the Bank of England, Treasury, and OBR forecasts shape fiscal policy, interest rates, gilt yields, inflation, energy bills, and pound sterling, with Oct. 31 guidance to reassure investors.

Key Points

A view of investor confidence as BOE policy, fiscal plans, and energy aid shape inflation and interest rates.

✅ Markets await Oct. 31 fiscal statement and OBR projections

✅ Energy support design drives inflation and disposable income

✅ Pound weakness adds imported inflation; rates seen up 75 bps

Bank of England Deputy Governor Dave Ramsden said financial markets are still unsettled about the outlook for the UK and that a Treasury statement due on Oct. 31 may provide some reassurance.

Speaking to the Treasury Committee in Parliament, Ramsden said officials in government and the central bank are dealing with huge economic shocks, notably the surge in energy prices that came with Russia’s attack on Ukraine. Investors are reassessing where interest rates and the fiscal stance are headed.

“Markets remain quite febrile,” Ramsden told members of Parliament in London on Monday. “Things have not settled down yet.”

He described the events following Prime Minister Liz Truss’s ill-fated fiscal statement on Sept. 23, which set out a series of tax cuts funded by borrowing that spooked investors and triggered a rout in UK assets. Ramsden said those events damaged the UK’s credibility among investors, but reversing that program and Truss’s decision to step aside have helped the nation regain confidence.

“Credibility is hard won and easily lost,” Ramsden said. “That credibility is being recovered. That has to be followed through. A return to the kind of stability around policy making and around the framing of fiscal events will be really important.”

He said the issue with the Sept. 23 statement was that “it had one side of the fiscal arithmetic in it” and that the decision to include forecasts from the Office for Budget Responsibility will help underpin the confidence investors have in assessing the UK budget due out next week, including potential moves to end the link between gas and electricity prices for consumers.

“What we are going to get on Oct. 31 will be very important,” Ramsden said, “as it will address measures such as the price cap on household energy bills and other fiscal choices.”

“My sense is that will take account of all the statements on both the revenue and on the spending side.”

The central bank already was getting some information from Chancellor of the Exchequer Jeremy Hunt’s team about the fiscal statement due. Hunt said last week he’d curtail government plans to subsidize household fuel bills in April, when a 16% decrease in energy bills is anticipated, instead of letting it run as long as planned and replace it with a more targeted program. 

“To the extent possible, we will obviously have a little bit of time to take account of that before we make our decisions later next week,” Ramsden said.

With Truss stepping down in the next day and handing power to Rishi Sunak, it isn’t certain the Oct. 31 statement will go ahead as planned. Ramsden’s remarks confirm reports that Hunt is preparing to make the statement, amid a free electricity debate in the industry, even before Sunak names his team.

Any hint about what sort of package Hunt will offer on energy is crucial to the BOE’s forecasts. Without aid for energy, consumers will be exposed to high winter heating and electricity costs and to the full force of whatever happens in natural gas and electricity markets, and that will have a big impact on how much disposable income is available to households.

The energy plan, alongside the energy security bill, “will be a key element, as obviously it will have a bearing on the path for inflation, which is critical, but also how much additional support relative to what we were assuming at the time of the September MPC there will be for households at different points in the income distribution,” Ramsden added.

Investors currently expect the BOE to hike rates by 75 basis points next week.

Ramsden also said the BOE is watching the pound’s decline to assess how that changes the outlook for inflation.

“We have to take account of it,” Ramsden said. “When sterling deprreciaties that feeds through to imported inflation. It’s fallen quite significantly. The overall trend is down.”

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Philippines-Canada Indo-Pacific Partnership strengthens ASEAN cooperation, maritime security, and South China Sea diplomacy, balancing U.S.-China rivalry through a rules-based order, trade diversification, and middle-power engagement to foster regional stability and sustainable growth.

Key Points

A strategic pact to balance U.S.-China rivalry, back ASEAN, and advance maritime security and a rules-based order

✅ Prioritizes ASEAN-led cooperation and regional diplomacy

✅ Supports maritime security and South China Sea stability

✅ Diversifies trade, infrastructure, energy, and education ties

The Philippines finds itself caught in a geopolitical tug-of-war between the United States and China, two superpowers with competing interests in the Indo-Pacific region. To navigate this complex situation, the Philippines is seeking closer ties with Canada, a middle power with a strong focus on diplomacy and regional cooperation and a deepening U.S.-Canada energy and minerals partnership that reinforces shared strategic interests.

The Philippines, like many Southeast Asian nations, desires peace and stability for continued economic growth. However, the intensifying rivalry between the U.S. and China threatens to disrupt this. Territorial disputes in the South China Sea, where China claims vast swathes of waters contested by the Philippines, are a major point of contention. The Philippines has a long-standing alliance with the U.S., whose current administration is viewed as better for Canada's energy sector by some observers, but it also has growing economic ties with China. This delicate balancing act is becoming increasingly difficult.

This is where Canada enters the picture. The Philippines sees Canada as a potential bridge between the two superpowers. Foreign Affairs Secretary Enrique Manalo emphasizes that the future of the Indo-Pacific shouldn't be dictated by "great power rivalry." Canada, with its emphasis on peaceful solutions and its strong relationships with both the U.S. and China, despite electricity exports at risk from periodic trade tensions, presents a welcome alternative.

There are several reasons why the Philippines views Canada as a natural partner. First, Canada's Indo-Pacific strategy prioritizes the Association of Southeast Asian Nations (ASEAN), a regional bloc that includes the Philippines, and reflects trade policy debates in Ottawa where Canadians support tariffs on energy and minerals. This focus on regional cooperation aligns with the Philippines' desire for a united ASEAN voice.

Second, Canada offers the Philippines opportunities for economic diversification. While China is a significant trading partner, the Philippines wants to lessen its dependence on any single power. Canada's expertise in areas like agriculture, infrastructure, education, and renewable energy aligns with the Philippines' clean energy commitment and development goals.

Third, Canada's experience in peacekeeping and maritime security can be valuable to the Philippines. The Philippines faces challenges in the South China Sea, and Canada's commitment to a rules-based international order resonates with the Philippines' desire for peaceful resolution of territorial disputes.

Canada, for its part, sees the Philippines as a strategically important partner in the Indo-Pacific. A stronger Philippines contributes to a more stable region, which aligns with Canada's own interests. Additionally, closer ties with the Philippines open doors for increased Canadian trade and investment in Southeast Asia, including in critical minerals supply chains and energy projects.

The Philippines' pursuit of a middle ground between the U.S. and China is not without its challenges. Balancing strong relationships with both powers requires careful diplomacy, even as tariff threats boost support for Canadian energy projects domestically. However, Canada's emergence as a potential partner offers the Philippines a much-needed counterweight and a path towards regional stability and economic prosperity.

By working together, Canada and the Philippines can promote peaceful solutions, strengthen regional cooperation, and ensure that the Indo-Pacific remains a place of opportunity for all nations, not just superpowers.

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