CIBC Report suggests prices will double with coal plant closures

California Electricity Rate Hikes strain households as CPUC weighs fixed charges, utility profit caps, and stricter oversight. Wildfire mitigation, transmission upgrades, and aging grid costs push bills higher amid renewable integration and consumer protection debates.

Key Points

California power rates are rising from wildfire mitigation, transmission costs, and grid upgrades under CPUC review.

✅ CPUC mulls fixed charges to stabilize bills and rate design.

✅ Advocates push profit caps; utilities cite investment needs.

✅ Stronger oversight sought to curb waste and boost transparency.

California residents and consumer groups are demanding relief as their electricity bills continue to climb, putting increasing pressure on state regulators to intervene.  A recent op-ed in the San Francisco Chronicle highlights the growing frustration, emphasizing that California already has some of the highest electricity rates in the country, as coverage on why prices are soaring underscores, and these costs are only getting more burdensome.

Factors Driving High Bills

The rising electricity bills are attributed to several factors:

• Wildfire Mitigation and Liability: Utility companies are investing heavily in wildfire prevention measures, such as vegetation management and infrastructure hardening. The costs of these initiatives, along with the increasing financial liabilities associated with wildfire risk, are being passed on to consumers.
• Transmission Costs: California's vast geography and move towards renewable energy sources necessitate significant investments in transmission lines to deliver electricity from remote locations. These infrastructure costs also contribute to higher bills.
• Aging Infrastructure: California's electricity grid is aging and requires upgrades and maintenance, and the expenses associated with these efforts are reflected in consumer rates.

Proposed Solutions and Debates

Consumer advocates and some lawmakers are calling for various actions to address the issue, including a potential revamp of electricity rates to clean the grid:

• Fixed Charge Proposal: The California Public Utilities Commission (CPUC) is considering a proposal to introduce an income-based fixed charge on electricity bills. This change aims to make rates more predictable and encourage investment in renewable energy sources. However, opponents argue that it could disproportionately impact low-income households and discourage conservation.
• Utility Profit Caps: Some advocate for capping utility companies' profits. They believe excessive profits should be returned to customers in the form of lower rates. However, utility companies counter that they need a certain level of profit to invest in infrastructure and maintain a reliable grid.
• Increased Oversight: Consumer groups are calling for stricter oversight of utility company spending, and legislators are preparing to crack down on utility spending through upcoming votes as well. They demand transparency and want to ensure that funds collected from customers are being used for necessary investments and not for lobbying or excessive executive compensation.

Comparisons and National Implications

Similar concerns about rising utility bills are emerging in other parts of the country as more states transition to renewable energy and invest in infrastructure upgrades.

A report by the Energy Information Administration (EIA) shows that average residential electricity rates across the country have been on the rise for the past decade. While California currently ranks amongst the highest, major changes to electric bills are being debated, and other states are following suit, demonstrating the nationwide challenge of balancing affordability with necessary investments.

Uncertain Future

The California Public Utilities Commission is reviewing the fixed charge proposal and is expected to make a decision later this year, with income-based flat-fee utility bills moving closer in the process. The outcome of this decision and potential additional regulatory changes will have significant ramifications for California residents, and some lawmakers plan to overturn income-based charges if adopted, which could set a precedent for how other states handle the rising costs associated with the energy transition.

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BC Hydro COVID-19 Bill Relief provides payment deferrals, no-penalty payment plans, Crisis Fund grants up to $600, and utility bill assistance as customers face pandemic layoffs, social distancing, and increased home power usage.

Key Points

A BC Hydro program offering bill deferrals, no-penalty plans, and up to $600 Crisis Fund grants during COVID-19.

✅ Defer payments or set no-penalty payment plans

✅ Apply for up to $600 Customer Crisis Fund grants

✅ Measures to ensure reliable power and remote customer service

BC Hydro is implementing a program, including bill relief measures, to help people pay their bills if they’re affected by the novel coronavirus.

The Crown corporation says British Columbians are facing a variety of financial pressures related to the COVID-19 pandemic, as some workplaces close or reduce staffing levels and commercial power consumption plummets across the province.

BC Hydro said it also expects increased power usage as more people stay home amid health officials’ requests that people take social distancing measures, even as electricity demand is down 10% provincewide.

Under the new program, customers will be able to defer bill payments or arrange a payment plan with no penalty, though a recent report on deferred operating costs outlines long-term implications for the utility.

BC Hydro says some customers could also be eligible for grants of up to $600 under its Customer Crisis Fund, if facing power disconnection due to job loss, illness or loss of a family member, while in other jurisdictions power bills were cut for households during the pandemic.

The company says it has taken precautions to keep power running by isolating key facilities, including its control centre, and by increasing its cleaning schedule, a priority even as some utilities face burgeoning debt amid COVID-19.

It has also closed its walk-in customer service desks to reduce risk from face-to-face contact and suspended all non-essential business travel, public meetings and site tours, and warned businesses about BC Hydro impersonation scams during this period.

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Municipal Renewable Energy Procurement surged as cities contracted 3.7 GW of solar and wind, leveraging green tariffs, community solar, and utility partnerships across the Southeast, led by Houston, RMI, and WRI data.

Key Points

The process by which cities contract solar and wind via utilities or green tariffs to meet climate goals.

✅ 3.7 GW procured in 2020, nearly 25% year-over-year growth

✅ Houston runs city ops on 500 MW solar, a record purchase

✅ Southeast cities use green tariffs and community solar

Cities around the country bought more renewable energy last year than ever before, reflecting how renewables may soon provide one-fourth of U.S. electricity across the grid, with some of the most remarkable projects in the Southeast, according to new data unveiled Thursday.

Even amid the pandemic, about eight dozen municipalities contracted to buy nearly 3.7 gigawatts of mostly solar and wind energy — enough to power more than 800,000 homes. The figure is almost a quarter higher than the year before.

Half of the cites listed as “most noteworthy” in Thursday’s release —  from research groups Rocky Mountain Institute and World Resources Institute — are in the region that stretches from Texas to Washington, D.C. 

Houston stands out for the sheer enormity of its purchase: In July, it began powering city operations entirely from nearly 500 megawatts of solar power — the largest municipal purchase of renewable energy ever in the United States, as renewable electricity surpassed coal nationwide.

The groups also feature smaller deals in North Carolina and Tennessee, achieved through a utility partnership called a green tariff.

“We wanted to recognize that Nashville and Charlotte were really blazing a new trail,” said Stephen Abbott, principal at the Rocky Mountain Institute.

And the nation’s capital shows how renewable energy can be a source of revenue: It’s leasing out its public transit station rooftops for 10 megawatts of community solar.

All of these strategies will be necessary for scores of U.S. cities to meet their ambitious climate goals, researchers believe. An interactive clean energy targets tracker shows all 95 clean energy procurements from the year in detail.

Tracker 
Even before former President Donald Trump promised to remove the United States from the Paris Climate Accord, a lack of federal action on climate left a void that some cities and counties were beginning to fill, as renewables hit a record 28% in a recent month. In 2015, the first year tracked by researchers at the Rocky Mountain Institute and the World Resources Institute, municipalities contracted to buy more than 1 gigawatt of wind, solar and other forms of clean energy. 

But when Trump officially set in motion the withdrawal from the climate agreement, the ranks of municipalities dedicated to 100% clean energy multiplied. Today there are nearly 200 of them. The growth in activity last year reflects, in part, that surge of new pledges.

“It takes a while to get city staff up to speed and understand the options, and create the roadmap and then start executing,” Abbott said. “There is a bit of a lag, but we’re starting to see the impact.”

Even in Houston — one of the earliest to begin procuring renewable energy — there has been a steep learning curve as market forces change and prices drop, including cheaper solar batteries shaping procurement strategies, said Lara Cottingham, Houston’s chief of staff and chief sustainability officer.

No matter how well resourced and educated their staff, cities have to clear a thicket of structural, political and economic challenges to procure renewable energy. Most don’t own their own sources of power. Nearly all face budget constraints. Few have enough land or government rooftops to meet their goals within city limits.

“Cities face a situation where it’s a square peg in a round hole,” Cottingham said.

The hurdles are especially steep in much of the Southeast, where only publicly regulated utilities can sell electricity to retail customers, even large ones such as major cities. That’s where a green tariff regime comes in: Cities can purchase clean energy from a third party, such as a solar company, using the utility as a go-between.

Early last year, Charlotte became the largest city to use such a program, partnering with Duke Energy and two North Carolina solar developers to build a solar farm 50 miles north in Iredell County. At first, the city will pay a premium for the energy, but in the latter half of the 20-year contract, as gas prices rise, it will save money compared to business as usual.

“Over the course of 20 years, it’s projected we would save about $2 million,” Katie Riddle, sustainability analyst with Charlotte, told the Energy News Network last year.

The growing size of projects, innovative partnerships like green tariff programs, and the improving economics all give Abbott hope that renewable energy investments from cities will only grow — even with the Trump presidency over and the country back in the Paris agreement.

And when cities meet their goals for procuring renewable energy for their own operations, they must then turn to an even bigger task: reducing the carbon footprint of every person in their jurisdiction with broader decarbonization strategies and community engagement.

“The city needs to do its part for sure,” said Houston’s Cottingham. “Then we have this challenge of how do we get everyone else to.”

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NB Power and Hydro-Québec Electricity Agreements expand clean hydroelectric exports, support Mactaquac dam refurbishment, add grid interconnections, and advance decarbonization, climate goals, reliability, and transmission capacity across Atlantic Canada and U.S. markets through 2040.

Key Points

Deals for hydro exports, Mactaquac upgrades, and new interconnections to improve reliability and cut emissions.

✅ 47 TWh to NB by 2040 over existing transmission lines

✅ HQ expertise to address Mactaquac concrete swelling

✅ Talks on new interconnections for Atlantic and U.S. exports

NB Power and Hydro-Quebec have signed three deals that will see Quebec sell more electricity to New Brunswick and provide help with the refurbishment of the Mactaquac hydroelectric generating station.

Under the first agreement, Hydro-Quebec will export 47 terawatt hours of electricity to New Brunswick between now and 2040 over existing power lines — expanding on an agreement in place since 2012 and on related regional agreements such as the Churchill Falls deal in Newfoundland and Labrador.

The second deal will see Hydro-Quebec share expertise for part of the refurbishment of the Mactaquac dam to extend the useful life of the generating station until at least 2068, when the 670 megawatt facility on the St. John River will be 100 years old.

Since the 1980s, concrete portions of the facility have been affected by a chemical reaction that causes the concrete to swell and crack.

Hydro-Quebec has been dealing with the same problem, and has developed expertise in addressing the issue.

“This is why we have signed a technical collaboration agreement between Hydro-Quebec and us for part of the refurbishment of the Mactaquac generating station,” NB Power president Gaetan Thomas said Friday.

Eric Martel, CEO of Hydro-Quebec, said hydroelectric plants provide long-term clean power that’s important in the fight against climate change as the province has ruled out nuclear power for now.

“We understand how important it is to ensure the long term sustainability of these facilities and we are happy to share the expertise that Hydro-Quebec has acquired over the years,” Martel said.

The refurbishment of the Mactaquac generating station is expected to cost between $2.9 billion and $3.5 billion. Once the work begins, each of the facility’s six generators will have to be taken offline for months at a time, and Thomas said that’s where the increased power from Quebec, supported by Hydro-Quebec's capacity expansion in recent years, will come into use.

He expects the power could cost about $100 million per year but will be much cheaper than other sources.

The third agreement calls for talks to begin for the construction of additional power connections between Quebec and New Brunswick to increase exports to Atlantic Canada and the United States, where transmission constraints have limited incremental deliveries in recent years.

“Building new interconnections and allowing for increased power transfer between our systems could be mutually beneficial, even as historic tensions in Newfoundland and Labrador linger. More than ever, we are looking to the future,” Martel said.

“Partnering will permit us to seize new business opportunities together and pool our effort to support de-carbonization, including Hydro-Quebec's non-fossil strategy that is now underway, and fight against climate change, both here and in our neighbourhood market,” he said. 

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Philippines Nuclear Energy Policy aims to add nuclear power to the energy mix via executive order, meeting rising electricity demand with 24/7 baseload while balancing safety, renewables, and imported fuel dependence in the Philippines.

Key Points

A government plan to include nuclear power in the energy mix to meet demand, ensure baseload, and uphold safety.

✅ Executive order proposed by Energy Secretary Alfonso Cusi

✅ Targets 24/7 baseload, rising electricity demand

✅ Balances safety, renewables, and energy security

Phillipines Presidential spokesman Salvador Panelo said Energy Secretary Alfonso Cusi made the proposal during last Monday's Cabinet meeting in Malacaaang. "Secretary Cusi likewise sought the approval of the issuance of a proposed executive order for the inclusion of nuclear power, including next-gen nuclear options in the country's energy mix as the Philippines is expected to the rapid growth in electricity and electricity demand, in which, 24/7 power is essential and necessary," Panelo said in a statement.

Panelo said Duterte would study the energy chief's proposal, as China's nuclear development underscores regional momentum. In the 1960s until the mid 80s, the late president Ferdinand Marcos adopted a nuclear energy program and built the Bataan Nuclear Plant.

The nuclear plant was mothballed after Corazon Aquino became president in 1986. There have been calls to revive the nuclear plant, saying it would help address the Philippines' energy supply issues. Some groups, however, said such move would be expensive and would endanger the lives of people living near the facility, citing Three Mile Island as a cautionary example.

Panelo said proposals to revive the Bataan Nuclear Plant were not discussed during the Cabinet meeting, even as debates like California's renewable classification continue to shape perceptions. Indigenous energy sources natural gas, hydro, coal, oil, geothermal, wind, solar, biomassand ethanol constitute more than half or 59.6%of the Philippines' energy mix.

Imported oil make up 31.7% while imported coal, reflecting the country's coal dependency, contribute about 8.7%.

Imported ethanol make up 0.1% of the energy mix, even as interest in atomic energy rises globally.

In 2018, Duterte said safety should be the priority when deciding whether to tap nuclear energy for the country's power needs, as countries like India's nuclear restart proceed with their own safeguards.

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Gander Curling Club Debt Forgiveness Agreement explained: town council tax relief, loan write-off conditions, community benefits, and economic impact, covering long-standing taxes and loans while protecting the facility with asset clauses and compliance terms.

Key Points

Town plan erasing 25 years of tax and loan debt, with conditions to keep the curling facility open for residents.

✅ Conditions: no borrowing against property without consent.

✅ Water and sewer taxes must be paid annually.

✅ If sold or use changes, debt due; transfer for $1.

Gander town council has agreed to forgive the local curling club's debt of over $250,000.

Gina Brown, chair of the town council's finance committee, says the agreement has been put in place to help the curling club survive, amid broader discussions on electricity affordability in Newfoundland and Labrador.

"When we took a look at this and realized there was a significant outstanding debt for Gander curling club … we have to mitigate," Brown told CBC Newfoundland Morning. "[Getting] what the taxpayers are owed, with also understanding and appreciating the role that that recreational facility plays in our community."

According to Brown, the debt comes from a combination of taxes and loans, going back about 25 years. She says the curling club understood there was debt, but didn't know the number was so high. The club has been in the black since 2007, but used their profits for other items like renovations.

"Like so many cases when you're dealing with an organization with a changing board, and the same for council … [people are] coming in and coming out," Brown said. "And as a result, my understanding from the curling club's perspective is they weren't aware of how much was outstanding."

Chris McLeod, president of the Gander Curling Club, told CBC the club had been trying to address the debt since he became president in 2014.

Terms of agreement
The town's agreement with the club comes with the following stipulations:

The club will not use the property as security for any form of borrowing without the town's consent.
 
The club will continue to pay water and sewer tax annually.
 
If the club sells the property, the town reserves the right to void the agreement and the debt will immediately become due in full.
 
If the club stops using the facility as a curling club, the property will be transferred to the town for $1.
McLeod says the club will not attempt to pay back the debt, as it is not part of the agreement. The only way the debt would be paid is if the building is sold, which McLeod says it won't be, and there are also no plans to use the building for anything other than a curling club.

"[The debt] is basically gone now," McLeod said.

McLeod says the move was made to help get the debt off the books, and make sure the curling club can be financially responsible in the future, similar to relief programs some utilities offered during the pandemic.

The curling club is something that encourages people. So we felt that this has to be maintained.
- Gina Brown

Brown says keeping the curling club in Gander is important for the town, and brings different benefits to the area, as regional power cooperation debates illustrate broader trends.

"They are servicing people from as young as Grade 1 to seniors," Brown said. "You need little to no equipment, you need no background. So for the town itself, for its social and health implications, as provinces advance emissions plans that can affect communities, is one. But the other thing is the economic benefit that comes from having this facility here."

The Gander Curling Club's debt forgiveness comes with several conditions. (Google Maps)
The curling club can help attract people into the community, as recreational facilities are often a key draw for families, she added, while other provinces are creating transition funds to support communities.

"When you're as a town, trying to attract people coming in … whether you're a doctor, nurse, anybody looking at the recreational facilities, the curling club is something that encourages people," Brown said. "So we felt that this has to be maintained."

Brown says the town understands they might be setting a precedent with other businesses in forgiving the debts of the curling club, as major infrastructure like B.C.'s Site C dam has faced budget overruns.

"That's another thing we had to consider, what kind of precedents are [we] establishing?" Brown said. "From our standpoint, I think one of the things about this agreement that we felt was beneficial to the town is that they have an asset, helping to avoid costly delays seen with large projects. And the asset is a great building. To us, the taxpayers are in a win-win situation."

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