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Peterborough Distribution Inc. Sale to Hydro One delivers a $105 million deal pending Ontario Energy Board approval, a 1% distribution rate cut, five-year rate freeze, job protections, and a new operations centre and fleet facility.

Key Points

A $105M acquisition of PDI by Hydro One, with OEB review, rate freeze, job protections, and a new operations centre.

✅ $105 million purchase; Ontario Energy Board approval required

✅ 1% distribution rate cut and a five-year rate freeze

✅ New operations centre; PDI employees offered roles at Hydro One

The City of Peterborough said Wednesday it has agreed to sell Peterborough Distribution Inc. to Hydro One for $105 million, amid a period when Hydro One shares fell after leadership changes.

The deal requires approval from the Ontario Energy Board before it can proceed.

According to the city, the deal includes a one per cent distribution rate reduction and a five-year freeze in distribution rates for customers, plus:

• A second five-year period with distribution rate increases limited to inflation and an earnings sharing mechanism to offset rates in year 11 and onward
• Protections for PDI employees with employees receiving employment offers to move to Hydro One
• A sale price of $105 million
• An agreement to develop a regional operations centre and new fleet maintenance facility in Peterborough

“Hydro One was unique in its ability to offer new investment and job creation in our community through the addition of a new operations centre to serve customers throughout the broader region,” Mayor Daryl Bennett said.

“We’re surrounded by Hydro One territory — in fact, we already have Hydro One customers within the City of Peterborough and new subdivisions will be in Hydro One territory. Hydro One will be able to create efficiencies by better utilizing its existing infrastructure, benefiting customers and supporting growth.”

The sale comes after months of negotiations amid investor concerns about Hydro One’s uncertainties. At one point, it looked like the sale wouldn’t go through, after it was announced that Hydro One had walked away from the bargaining table.

City council approved the sale of PDI in December 2016, despite a strong public opposition and debate over proposals to make hydro public again among some parties.

Elsewhere in Canada, political decisions around utilities have also sparked debate, as seen when Manitoba Hydro faced controversy over policy shifts.

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Hydro One investment risk reflects Ontario government influence, board shakeup, Avista acquisition uncertainty, regulatory hearings, dividend growth prospects, and utility M&A moves in Peterborough, with stock volatility since the 2015 IPO.

Key Points

Hydro One investment risk stems from political control, governance turnover, regulatory outcomes, and uncertain M&A.

✅ Ontario retains near-50% stake, affecting autonomy and policy risk

✅ Board overhaul and CEO exit create governance uncertainty

✅ Avista deal, OEB hearings, local utility M&A drive outcomes

Hydro One may be only half-owned by the province on Ontario but that’s enough to cause uncertainty about the company’s future, thus making for an investment risk, says Douglas Kee of Leon Frazer & Associates.

Since its IPO in November of 2015, Hydro One has seen its share of ups and downs, including a Q2 profit decline earlier this year, mostly downs at this point. Currently trading at $19.87, the stock has lost 11 per cent of its value in 2018 and 12 per cent over the last 12 months, despite a one-time gain boosting Q2 profit that followed a court ruling.

This year has been a turbulent one, to say the least, as newly elected Ontario premier Doug Ford made good this summer on his campaign promise re Hydro One by forcing the resignation of the company’s 14-person board of directors along with the retirement of its chief executive, an event that saw Hydro One shares fall amid the turmoil. An interim CEO has been found and a new 10-person board and chairman put in place, but Kee says it’s unclear what impact the shakeup will ultimately have, other than delaying a promising-looking deal to purchase US utility Avista Corp, with the companies moving to ask the U.S. regulator to reconsider the order.

Douglas Kee’s take on Hydro One stock

“We looked at Hydro One a couple of times two years ago and just decided that with the Ontario government’s still owning a big chunk of the company … there are other public companies where you get the same kind of yield, the same kind of dividend growth, so we just avoided it,” says Kee, managing director and chief investment officer with Leon Frazer & Associates, to BNN Bloomberg.

“The old board versus the new board, I’m not sure that there’s much of an improvement. It was politics more than anything,” he says. “The unfortunate part is that the acquisition they were making in the United States is kind of on hold for now. The regulatory procedures have gone ahead but they are worried, and I guess the new board has to make a decision whether to go ahead with it or not.”

“Their transmissions side is coming up for regulatory hearings next year, which could be difficult in Ontario,” says Kee. “The offset to that is that there are a lot of municipal distributions systems in Ontario that may be sold — they bought one in Peterborough recently, which was a good deal for them. There may be more of that coming too.”

Last month, Hydro One reached an agreement with the City of Peterborough to buy its Peterborough Distribution utility which serves about 37,000 customers for $105 million. Another deal to purchase Orillia Power Distribution Corp for $41 million has been cancelled after an appeal to the Ontario Energy Board was denied in late August. Hydro One’s sought-after Avista Corp acquisition is reported to be worth $7 billion.

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Schott Green Electricity CPPA secures renewable energy via a solar park in Schleswig-Holstein, supporting decarbonization in German glass manufacturing; the corporate PPA with ane.energy delivers about 14.5 GWh annually toward climate-neutral production by 2030.

Key Points

Corporate PPA for 14.5 GWh solar in Germany, cutting Schott plant emissions and advancing climate-neutral operations.

✅ 14.5 GWh solar from Schleswig-Holstein via ane.energy

✅ Powers Mainz HQ and plants in GrFCnenplan, Mitterteich, Landshut

✅ Two-year CPPA covers ~5% of Schott's German electricity needs

Schott, a leading specialty glass manufacturer, is advancing its sustainability initiatives in step with Germany's energy transition by integrating green electricity into its operations. Through a Corporate Power Purchase Agreement (CPPA) with green energy specialist ane.energy, Schott aims to significantly reduce its carbon footprint and move closer to its goal of climate-neutral production by 2030.

Transition to Renewable Energy

As of February 2025, amid a German renewables milestone for the power sector, Schott has committed to sourcing approximately 14.5 gigawatt-hours of clean energy annually from a solar park in Schleswig-Holstein, Germany. This renewable energy will power Schott's headquarters in Mainz and its plants in Grünenplan, Mitterteich, and Landshut. The CPPA covers about 5% of the company's annual electricity needs in Germany and is initially set for a two-year term, reflecting lessons from extended nuclear power during recent supply challenges.

Strategic Implementation

To achieve climate-neutral production by 2030, Schott is focusing on transitioning from gas to electricity sourced from renewable sources like photovoltaics, alongside complementary pathways such as hydrogen-ready power plants being developed nationally. Operating a single melting tank requires energy equivalent to the annual consumption of up to 10,000 single-family homes. Therefore, Schott has strategically selected suitable plants for this renewable energy supply to meet its substantial energy requirements.

Industry Leadership

Schott's collaboration with ane.energy demonstrates the company's commitment to sustainability and its proactive approach to integrating renewable energy into industrial operations. This partnership not only supports Schott's decarbonization goals but also sets a precedent for other manufacturers in the glass industry to adopt green energy solutions, mirroring advances like green hydrogen steel in heavy industry.

Schott's initiative to power its German glass plants with green electricity underscores the company's dedication to environmental responsibility and its strategic efforts to achieve climate-neutral production by 2030, aligning with the national coal and nuclear phaseout underway. This move reflects a broader trend in the manufacturing sector toward sustainable practices and the adoption of renewable energy sources, even as debates continue over a possible nuclear phaseout U-turn in Germany.

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Germany 2025 Energy Costs forecast electricity and heating price trends amid gas volatility, renewables expansion, grid upgrades, and policy subsidies, highlighting impacts on households, industries, efficiency measures, and the Energiewende transition dynamics.

Key Points

Electricity stabilizes, gas-driven heating stays high; renewables, subsidies, and efficiency measures moderate costs.

✅ Power prices stabilize above pre-crisis levels

✅ Gas volatility keeps heating bills elevated

✅ Subsidies and efficiency upgrades offset some costs

As Germany moves into 2025, the country is facing significant shifts in heating and electricity costs. With a variety of factors influencing energy prices, including geopolitical tensions, government policies, and the ongoing transition to renewable energy sources, consumers and businesses alike are bracing for potential changes in their energy bills. In this article, we will explore how heating and electricity costs are expected to evolve in Germany in the coming year and what that means for households and industries.

Energy Price Trends in Germany

In recent years, energy prices in Germany have experienced notable fluctuations, particularly due to the aftermath of the global energy crisis, which was exacerbated by the Russian invasion of Ukraine. This geopolitical shift disrupted gas supplies, which in turn affected electricity prices and strained local utilities across the country. Although the German government introduced measures to mitigate some of the price increases, many households have still felt the strain of higher energy costs.

For 2024, experts predict that electricity prices will likely stabilize but remain higher than pre-crisis levels. While electricity prices nearly doubled in 2022, they have gradually started to decline, and the market has adjusted to the new realities of energy supply and demand. Despite this, the cost of electricity is expected to stay elevated as Germany continues to phase out coal and nuclear energy while ramping up the use of renewable sources, which often require significant infrastructure investments.

Heating Costs: A Mixed Outlook

Heating costs in Germany are heavily influenced by natural gas prices, which have been volatile since the onset of the energy crisis. Gas prices, although lower than the peak levels seen in 2022, are still considerably higher than in the years before. This means that households relying on gas heating can expect to pay more for warmth in 2024 compared to previous years.

The government has implemented measures to cushion the impact of these increased costs, such as subsidies for vulnerable households and efforts to support energy efficiency upgrades. Despite these efforts, consumers will still feel the pinch, particularly in homes that use older, less efficient heating systems. The transition to more sustainable heating solutions, such as heat pumps, remains a key goal for the German government. However, the upfront cost of such systems can be a barrier for many households.

The Role of Renewable Energy and the Green Transition

Germany has set ambitious goals for its energy transition, known as the "Energiewende," which aims to reduce reliance on fossil fuels and increase the share of renewable energy sources in the national grid. In 2024, Germany is expected to see further increases in renewable energy generation, particularly from wind and solar power. While this transition is essential for reducing carbon emissions and improving long-term energy security, the shift comes with its own challenges already documented in EU electricity market trends reports.

One of the main factors influencing electricity costs in the short term is the intermittency of renewable energy sources. Wind and solar power are not always available when demand peaks, requiring backup power generation from fossil fuels or stored energy. Additionally, the infrastructure needed to accommodate a higher share of renewables, including grid upgrades and energy storage solutions, is costly and will likely contribute to rising electricity prices in the near term.

On a positive note, Germany's growing investment in renewable energy is expected to make the country less reliant on imported fossil fuels, particularly natural gas, which has been a major source of price volatility. Over time, as the share of renewables in the energy mix grows, the energy system should become more stable and less susceptible to geopolitical shocks, which could lead to more predictable and potentially lower energy costs in the long run.

Government Interventions and Subsidies

To help ease the burden on consumers, the German government has continued to implement various measures to support households and businesses. One of the key programs is the reduction in VAT (Value Added Tax) on electricity, which has been extended in some regions. This measure is designed to make electricity more affordable for all households, particularly those on fixed incomes facing EU energy inflation pressures that have hit the poorest hardest.

Moreover, the government has been providing financial incentives for households and businesses to invest in energy-efficient technologies, such as insulation and energy-saving heating systems, complementing the earlier 200 billion euro energy shield announced to buffer surging prices. These incentives are intended to reduce overall energy consumption, which could offset some of the rising costs.

The outlook for heating and electricity costs in Germany for 2024 is mixed, even as energy demand hit a historic low amid economic stagnation. While some relief from the extreme price spikes of 2022 may be felt, energy costs will still be higher than they were in previous years. Households relying on gas heating will likely see continued elevated costs, although those who invest in energy-efficient solutions or renewable heating technologies may be able to offset some of the increases. Similarly, electricity prices are expected to stabilize but remain high due to the country’s ongoing transition to renewable energy sources.

While the green transition is crucial for long-term sustainability, consumers must be prepared for potentially higher energy costs in the short term. Government subsidies and incentives will help alleviate some of the financial pressure, but households should consider strategies to reduce energy consumption, such as investing in more efficient heating systems or adopting renewable energy solutions like solar panels.

As Germany navigates these changes, the country’s energy future will undoubtedly be shaped by a delicate balance between environmental goals and the economic realities of transitioning to a greener energy system.

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US January power generation climbed to 373.2 TWh, EIA data shows, with coal edging natural gas, record wind output, record nuclear generation, rising hydro, and stable utility-scale solar amid higher Henry Hub prices.

Key Points

US January power generation hit 373.2 TWh; coal led gas, wind and nuclear set records, with solar edging higher.

✅ Coal 31.8% share; gas 29.4%; coal output 118.7 TWh, gas 109.6 TWh.

✅ Wind hit record 26.8 TWh; nuclear record 74.6 TWh.

✅ Total generation 373.2 TWh, highest January since 2014.

The US generated 373.2 TWh of power in January, up 7.9% from 345.9 TWh in December and 9.3% higher than the same month in 2017, Energy Information Administration data shows.

The monthly total was the highest amount in January since 377.3 TWh was generated in January 2014.

Coal generation totaled 118.7 TWh in January, up 11.4% from 106.58 TWh in December and up 2.8% from the year-ago month, consistent with projections of a coal-fired generation increase for the first time since 2014. It was also the highest amount generated in January since 132.4 TWh in 2015.

For the second straight month, more power was generated from coal than natural gas, as 109.6 TWh came from gas, up 3.3% from 106.14 TWh in December and up 19.9% on the year.

However, the 118.7 TWh generated from coal was down 9.6% from the five-year average for the month, due to the higher usage of gas and renewables and a rising share of non-fossil generation in the overall mix.

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Coal made up 31.8% of the total US power generation in January, up from 30.8% in December but down from 33.8% in January 2017.

Gas` generation share was at 29.4% in the latest month, with momentum from record gas-fired electricity earlier in the period, down from 30.7% in December but up from 26.8% in the year-ago month.

In January, the NYMEX Henry Hub gas futures price averaged $3.16/MMBtu, up 13.9% from $2.78/MMBtu averaged in December but down 4% from $3.29/MMBtu averaged in the year-ago month.

WIND, NUCLEAR GENERATION AT RECORD HIGHS

Wind generation was at a record-high 26.8 TWh in January, up 29.3% from 22.8 TWh in December and the highest amount on record, according to EIA data going back to January 2001. Wind generated 7.2% of the nation`s power in January, as an EIA summer outlook anticipates larger wind and solar contributions, up from 6.6% in December and 6.1% in the year-ago month.

Utility-scale solar generated 3.3 TWh in January, up 1.3% from 3.1 TWh in December and up 51.6% on the year. In January, utility-scale solar generation made up 0.9% of US power generation, during a period when solar and wind supplied 10% of US electricity in early 2018, flat from December but up from 0.6% in January 2017.

Nuclear generation was also at a record-high 74.6 TWh in January, up 1.3% month on month and the highest monthly total since the EIA started tracking it in January 2001, eclipsing the previous record of 74.3 TWh set in July 2008. Nuclear generation made up 20% of the US power in January, down from 21.3% in December and 21.4% in the year-ago month.

Hydro power totaled 25.4 TWh in January, making up 6.8% of US power generation during the month, up from 6.5% in December but down from 8.2% in January 2017.

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EECBG Program Funding empowers states, Tribes, and local governments with DOE grants to deploy clean energy, energy efficiency, EV infrastructure, and community solar, cutting emissions, lowering utility bills, and advancing net-zero decarbonization.

Key Points

EECBG Program Funding is a $550M DOE grant for states, Tribes, and governments to deploy clean energy and efficiency.

✅ Supports EV infrastructure and community solar deployment

✅ Cuts emissions and lowers utility costs via efficiency

✅ Prioritizes Justice40 benefits for underserved communities

The Biden-Harris Administration, through the U.S. Department of Energy (DOE), today released a Notice of Intent announcing $550 million to support community-based clean energy in state, Tribal, and local governments — serving more than 250 million Americans. This investment in American communities, through the Energy Efficiency and Conservation Block Grant (EECBG) Program, will support communities across the country to develop local programming and deploy clean energy technologies to cut emissions, advance a 90% carbon-free electricity goal nationwide, and reduce consumers’ energy costs, and help meet President Biden’s goal of a net-zero economy by 2050. 

“This funding is a streamlined and flexible tool for local governments to build their electricity future with clean energy,” said U.S. Secretary of Energy Jennifer M. Granholm. “State, local, and Tribal communities nationwide will be able to leverage this funding to drive greater energy efficiency and conservation practices to lower utility bills and create healthier environments for American families.”   

The EECBG Program will fund 50 states, five U.S. territories, the District of Columbia, 774 Tribes, and 1,878 local governments in a variety of capacity-building, planning, and infrastructure efforts to reduce carbon emissions and energy use and improve energy efficiency in the transportation, building, and other related sectors. For example, communities with this funding can build out electric vehicle infrastructure and deploy community solar to serve areas that otherwise do not have access to electric vehicles or clean energy, particularly through a rural energy security program where appropriate.  

The $550 million made available through the Bipartisan Infrastructure Law (BIL) represents the second time that the EECBG Program has been funded, the first of which was through the American Recovery and Reinvestment Act of 2009. With this most recent funding, communities can build on prior investments and leverage additional clean energy funding from DOE, other federal agencies, and the private sector to achieve sustained impacts, supported by a Clean Electricity Standard where applicable, that can put their communities on a pathway to decarbonization. 

Through the EECBG Program and the Office of State and Community Energy Programs (SCEP), DOE will support the many diverse state, local, and tribal communities across the U.S., including efforts to revitalize coal communities through clean energy, as they implement this funding and other clean energy projects. To ensure no communities are left behind, the program aligns with President’s Justice40 initiative and efforts toward equity in electricity regulation to help ensure that 40% of the overall benefits of clean energy investments go to underserved and overburdened communities. 

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