PSE&G files for modest rate increase

By PR Newswire


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Public Service Electric and Gas Co. (PSE&G) filed for a modest increase in transmission rates as a result of significant additional investment in the utility's electric transmission system. The company's last rate increase was in 1997.

In the filing with the Federal Energy Regulatory Commission (FERC), PSE&G asked for formula rate treatment as the company embarks on a $1.6 billion capital spending program for new transmission facilities during the next five to eight years. The new rates are also necessary because of increasing transmission operating and maintenance expenses to provide safe, reliable service.

PSE&G is seeking a transmission return on equity of 11.68 percent effective October 1, 2008. If approved by FERC, the new rates would increase the bill of the average residential electric customer by less than one-half of 1 percent, or about $5.50 a year.

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US Approves Rule to Boost Renewable Transmission

FERC Transmission Rule accelerates grid modernization and interregional high-voltage lines, enabling renewable energy integration, load balancing, and reliability to advance net-zero goals while strengthening resilience, capacity expansion, and decarbonization across U.S. regional transmission organizations.

 

Key Points

A federal policy mandating interregional grid planning and cost sharing to expand high-voltage lines for renewables.

✅ Expands interregional high-voltage transmission capacity

✅ Improves reliability, resilience, and load balancing

✅ Aligns cost allocation and long-term planning for renewables

 

On May 13th, 2024, the US took a monumental step towards its clean energy goals. The Federal Energy Regulatory Commission (FERC) approved a long-awaited rule designed to significantly expand the transmission of renewable energy across the nation's power grid, a US grid overhaul that many advocates say was overdue. This decision aligns with President Biden's ambitious plan to achieve net-zero carbon emissions by 2050, with renewable energy playing a central role.

The new rule tackles a critical bottleneck hindering the widespread adoption of renewables – transmission infrastructure. Unlike traditional power plants like coal or natural gas that run constantly, solar and wind power generation fluctuates with weather conditions. This variability poses a challenge for the existing grid, which is not designed to efficiently handle large-scale integration of these intermittent sources, helping explain why the grid isn't 100% renewable today.

The FERC rule aims to address this by promoting the construction of new, high-voltage transmission lines, particularly those connecting different regions, where grid limitations in the Pacific Northwest have highlighted the need for better interregional transfers. This improved connectivity would allow for a more strategic distribution of renewable energy. Imagine solar energy harnessed in the sun-drenched Southwest being transmitted eastward to meet peak demand during hot summer days on the Atlantic Coast.

The benefits of this expanded transmission network are multifaceted. First, it unlocks the full potential of renewable resources by allowing for their efficient utilization across the country, a trend consistent with wind and solar surpassing coal in U.S. generation. Abundant wind power in the Midwest could be utilized on the West Coast, while surplus solar energy from the South could supplement demand in the Northeast.

Second, a more robust grid with a higher capacity for renewables reduces reliance on fossil fuel-based power plants and complements other ways to meet decarbonization goals across sectors. This translates to cleaner air and a significant reduction in greenhouse gas emissions, contributing to the fight against climate change.

Third, a modernized grid with improved long-distance transmission bolsters the nation's energy security. Extreme weather events, a growing concern due to climate change, can disrupt energy production in specific regions. This interconnected grid would provide a buffer, ensuring a more reliable and resilient power supply and helping put regions on the road to 100% renewables even during adverse weather conditions.

The FERC's decision is a win for environmental groups and the renewable energy industry. They see it as a critical step towards a cleaner energy future and a significant driver of job creation in the construction and maintenance of new transmission lines. However, concerns have been raised by some stakeholders, particularly investor-owned utilities. They worry about the potential cost burden associated with building these expansive new lines, and recent reports of stalled grid spending underscore those concerns and the need for efficient cost allocation mechanisms. Striking a balance between efficiency, affordability, and environmental responsibility will be crucial for the successful implementation of this policy.

 

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Egypt, Eni ink MoU on hydrogen production projects

Egypt-ENI Hydrogen MoU outlines joint feasibility studies for green and blue hydrogen using renewable energy, carbon capture, and CO2 storage, targeting domestic demand, exports, and net-zero goals within Egypt's energy transition.

 

Key Points

A pact to study green and blue hydrogen in Egypt, leveraging renewables, CO2 storage, and export/demand pathways.

✅ Feasibility study for green and blue hydrogen projects

✅ Uses renewables, SMR, carbon capture, and CO2 storage

✅ Targets local demand, exports, and net-zero alignment

 

The Egyptian Electricity Holding Company (EEHC) and the Egyptian Natural Gas Holding Company (EGAS) signed a memorandum of understanding (MoU) with the Italian energy giant Eni to assess the technical and commercial feasibility of green and blue hydrogen production projects in Egypt, which many see as central to power companies' future strategies worldwide today.

Under the MoU, a study will be conducted to assess joint projects for the production of green hydrogen using electricity generated from renewable energy and supported by regional electricity interconnections where relevant, and blue hydrogen using the storage of CO2 in depleted natural gas fields, according to a statement by the Ministry of Petroleum on Thursday.

The study will also estimate the potential local market consumption of hydrogen and export opportunities, taking cues from Ontario's hydrogen economy proposal to align electricity rates for growth.

This agreement is part of Eni's objective to achieve zero net emissions by 2050 and Egypt's strategy towards diversifying the energy mix and developing hydrogen projects in collaboration with major international companies, taking note of Italy's green hydrogen initiatives in Sicily as a comparable effort.

It signed the deal with Egyptian Natural Gas Holding (EGAS) and Egyptian Electricity Holding Co. (EEHC).

The companies will carry out a joint study on producing renewable energy powered green hydrogen, informed by electrolyzer investments in similar projects, where applicable. They will also work on blue hydrogen. This involves reforming natural gas and capturing the resulting CO2, in this instance in depleted natural gas fields.

The study will also consider domestic hydrogen use and export options, including funding models like the Hydrogen Innovation Fund now in Ontario.

Eni said the MoU was in line with its plans to eliminate net emissions and emissions cancel emission intensity by 2050. The company noted the agreement was in line with Egypt’s plan for the energy transition, in which it pursues hydrogen plans with major international companies, alongside broader clean-tech collaboration such as Tesla cooperation discussions in Dubai, to accelerate progress.

 

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FPL Proposes Significant Rate Hikes Over Four Years

FPL Rate Increase Proposal 2026-2029 outlines $9B base-rate hikes as Florida grows, citing residential demand, grid infrastructure investments, energy mix diversification, and Florida PSC review impacting customer bills, reliability, and fuel price volatility mitigation.

 

Key Points

A $9B base-rate plan FPL filed with the Florida PSC to fund growth, grid upgrades, and energy diversification through 2029.

✅ Adds 275k since 2021; +335k customers projected by 2029.

✅ Monthly bills rise to about $157 by 2029, up ~22% total.

✅ Investments in poles, wires, transformers, substations, renewables.

 

Florida Power & Light (FPL), the state's largest utility provider, has submitted a proposal to the Florida Public Service Commission (PSC) seeking a substantial increase in customer base rates over the next four years, amid ongoing scrutiny, including a recent hurricane surcharge controversy that heightened public attention.

Rationale Behind the Rate Increase

FPL's request is primarily influenced by Florida's robust population growth. Since 2021, the utility has added about 275,000 customers and projects an additional 335,000 by the end of 2029. This surge necessitates significant investments in transmission and distribution infrastructure, including poles, wires, transformers, and substations, to maintain reliable service. Moreover, FPL aims to diversify its energy mix to shield customers from fuel price volatility, even as the state declined federal solar incentives that could influence renewable adoption, ensuring a stable and sustainable power supply.

Impact on Customer Bills

If approved, the proposed rate increases would affect residential customers as follows:

  • 2026: An estimated increase of $11.52 per month, raising the typical bill to $145.66.

  • 2027: An additional $6.05 per month, bringing the bill to $151.71.

  • 2028: A further increase of $3.64 per month, totaling $155.35.

  • 2029: An extra $2.06 per month, resulting in a final bill of $157.41.

These adjustments represent a cumulative increase of approximately 22% over the four-year period, while in other regions some customers face sharper spikes, such as Pennsylvania's winter price increases this season.

Comparison with Previous Rate Hikes

This proposal follows a series of rate increases approved in recent years, as California electricity bills have soared and prompted calls for action in that state. For instance, Tampa Electric Co. (TECO) received approval for rate hikes totaling $287.9 million in 2025, with additional increases planned for 2026 and 2027. Consumer groups have expressed intentions to challenge these rate hikes, indicating a trend of growing scrutiny over utility rate adjustments.

Regulatory Review Process

The PSC is scheduled to review FPL's rate increase proposal in the coming months. A staff recommendation is expected by March 14, 2025, with a final decision anticipated at a commission conference on March 20, 2025. This process allows for public input and thorough evaluation of the proposed rate changes, while elsewhere some utilities anticipate stabilization, such as PG&E's 2025 outlook in California.

Customer and Consumer Advocacy Responses

The proposed rate hikes have elicited concerns from consumer advocacy groups. Organizations like Food & Water Watch have criticized the scale of the increase, labeling it as the largest rate hike request in U.S. history, amid mixed signals such as Gulf Power's one-time 40% bill decrease earlier this year. They argue that such substantial increases could place undue financial strain on households, especially those with fixed incomes.

Additionally, the Florida Public Service Commission has faced challenges in approving rate hikes for other utilities, such as TECO, and a recent Florida court decision on electricity monopolies that may influence the policy landscape, with consumer groups planning to appeal these decisions. This backdrop of heightened scrutiny suggests that FPL's proposal will undergo rigorous examination.

As Florida continues to experience rapid growth, balancing the need for infrastructure development and reliable energy services with the financial impact on consumers remains a critical challenge. The PSC's forthcoming decisions will play a pivotal role in shaping the state's energy landscape, influencing both the economy and the daily lives of Floridians.

 

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Huge offshore wind turbine that can power 18,000 homes

Siemens Gamesa SG 14-222 DD advances offshore wind with a 14 MW direct-drive turbine, 108 m blades, a 222 m rotor, optional 15 MW boost, powering about 18,000 homes; prototype 2021, commercial launch 2024.

 

Key Points

A 14 MW offshore wind turbine with 108 m blades and a 222 m rotor, upgradable to 15 MW, targeting commercial use in 2024.

✅ 14 MW direct-drive, upgradable to 15 MW

✅ 108 m blades, 222 m rotor diameter

✅ Powers about 18,000 European homes annually

 

Siemens Gamesa Renewable Energy (SGRE) has released details of a 14-megawatt (MW) offshore wind turbine, as offshore green hydrogen production gains attention, in the latest example of how technology in the sector is increasing in scale.

With 108-meter-long blades and a rotor diameter of 222 meters, the dimensions of the SG 14-222 DD turbine are significant.

In a statement Tuesday, SGRE said that one turbine would be able to power roughly 18,000 average European households annually, while its capacity can also be boosted to 15 MW if needed. A prototype of the turbine is set to be ready by 2021, and it’s expected to be commercially available in 2024, as forecasts suggest a $1 trillion business this decade.

As technology has developed over the last few years, the size of wind turbines has increased, and renewables are set to shatter records globally.

Last December, for example, Dutch utility Eneco started to purchase power produced by the prototype of GE Renewable Energy’s Haliade-X 12 MW wind turbine. That turbine has a capacity of 12 MW, a height of 260 meters and a blade length of 107 meters.

The announcement of Siemens Gamesa’s new turbine plans comes against the backdrop of the coronavirus pandemic, which is impacting renewable energy companies around the world, even as wind power sees growth despite Covid-19 in many markets.

Earlier this month, the European company said Covid-19 had a “direct negative impact” of 56 million euros ($61 million) on its profitability between January and March, amid factory closures in Spain and supply chain disruptions. This, it added, was equivalent to 2.5% of revenues during the quarter.

The pandemic has, in some parts of the world, altered the sources used to power society. At the end of April, for instance, it was announced that a new record had been set for coal-free electricity generation in Great Britain, where UK offshore wind growth has accelerated, with a combination of factors — including coronavirus-related lockdown measures — playing a role.

On Tuesday, the CEO of another major wind turbine manufacturer, Danish firm Vestas, sought to emphasize the importance of renewable energy in the years and months ahead, and the lessons the U.S. can learn from the U.K. on wind deployment.

“I think we have actually, throughout this crisis, also shown to all society that renewables can be trusted,” Henrik Andersen said during an interview on CNBC’s Street Signs.

“But we both know ... that that transformation of energy sources is not going to happen overnight, it’s not going to happen from a quarter to a quarter, it’s going to happen by consistently planning year in, year out.”

 

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How Ukraine Will Keep the Lights On This Winter

Ukraine Winter Energy Strategy strengthens the power grid through infrastructure repairs, electricity imports, renewable integration, nuclear output, and conservation to ensure reliable heating, blackout mitigation, and grid resilience with international aid, generators, and transmission lines.

 

Key Points

A wartime plan to stabilize Ukraine's grid via repairs, imports, renewables, and nuclear to deliver reliable electricity.

✅ Repairs, imports, and demand management stabilize the grid.

✅ Renewables and nuclear reduce outage risks in winter.

✅ International aid supplies transformers, generators, expertise.

 

As Ukraine braces for the winter months, the question of how the country will keep the lights on has become a pressing concern, as the country fights to keep the lights on amid ongoing strikes. The ongoing war with Russia has severely disrupted Ukraine's energy infrastructure, leading to widespread damage to power plants, transmission lines, and other critical energy facilities. Despite these challenges, Ukraine has been working tirelessly to maintain its energy supply during the cold winter months, which are essential not only for heating but also for the functioning of homes, businesses, hospitals, and schools. Here's a closer look at the steps Ukraine is taking to keep the lights on this winter and ensure that its people have access to reliable electricity.

1. Repairing Damaged Infrastructure

One of the most immediate concerns for Ukraine's energy sector is the extensive damage inflicted on its power infrastructure by Russian missile and drone attacks. Since the war began in 2022, Ukraine has faced repeated attacks targeting power plants, substations, and power lines, including strikes on western regions that caused widespread outages across communities. These attacks have left parts of the country with intermittent or no electricity, and repairing the damage has been a monumental task.

However, Ukraine has made significant progress in restoring its energy infrastructure. Government agencies and energy companies have been working around the clock to repair power plants and transmission networks. Teams of technicians and engineers have been deployed to restore power to areas that have been hardest hit by Russian attacks, often under difficult and dangerous conditions. While some areas may continue to face outages, efforts to rebuild the energy grid are ongoing, with the government prioritizing critical infrastructure to ensure that hospitals, military facilities, and essential services have access to power.

2. Energy Efficiency and Conservation Measures

To cope with reduced energy availability and avoid overloading the grid, Ukrainian authorities have been encouraging energy efficiency and conservation measures. These efforts are particularly important during the winter when demand for electricity and heating is at its peak.

The government has implemented energy-saving programs, urging citizens and businesses to reduce their consumption and adopt new energy solutions that can be deployed quickly. Measures include limiting electricity use during peak hours, setting thermostats lower in homes and businesses, and encouraging the use of energy-efficient appliances. Ukrainian officials have also been promoting public awareness campaigns to educate people about the importance of energy conservation, which is crucial to avoid grid overload and ensure the distribution of power across the country.

3. Importing Energy from Abroad

To supplement domestic energy production, Ukraine has been working to secure electricity imports from neighboring countries. Ukraine has long been interconnected with energy grids in countries such as Poland, Slovakia, and Hungary, which allows it to import electricity during times of shortage. In recent months, Ukraine has ramped up efforts to strengthen these connections, ensuring that it can import electricity when domestic production is insufficient to meet demand, and in a notable instance, helped Spain during blackouts through coordinated cross-border support.

While electricity imports from neighboring countries provide a temporary solution, this is not without its challenges. The cost of importing electricity can be high, and the country’s ability to import large amounts of power depends on the availability of energy in neighboring nations; officials say there are electricity reserves and no scheduled outages if strikes do not resume. Ukraine has been actively seeking new energy partnerships and working with international organizations to secure access to electricity, including exploring the potential for importing energy from the European Union.

4. Harnessing Renewable Energy Sources

Another key part of Ukraine's strategy to keep the lights on this winter is tapping into renewable energy sources, particularly wind and solar power. While Ukraine’s energy sector has historically been dependent on fossil fuels, the country has been making strides in integrating renewable energy into its grid. Solar and wind energy are particularly useful in supplementing the national grid, especially during the winter months when demand is high.

Renewable energy sources are less vulnerable to missile strikes compared to traditional power plants, making them an attractive option for Ukraine's energy strategy. Although renewable energy currently represents a smaller portion of Ukraine’s overall energy mix, its contribution is expected to increase as the country invests more in clean energy infrastructure. In addition to reducing dependence on fossil fuels, this shift is aligned with Ukraine’s broader environmental goals and will be important for the long-term sustainability of its energy sector.

5. International Aid and Support

International support has been crucial in helping Ukraine keep the lights on during the war. Western allies, including the European Union and the United States, have provided financial assistance, technical expertise, and equipment to help restore the energy infrastructure, though Washington recently ended some grid restoration support as priorities shifted. In addition to rebuilding power plants and transmission lines, Ukraine has received advanced energy technologies and materials to strengthen its energy security.

The U.S. has sent electrical transformers, backup generators, and other essential equipment to help Ukraine restore its energy grid. The European Union has also provided both financial and technical assistance, supporting Ukraine’s efforts to integrate more renewable energy into its grid and enhancing the country’s ability to import electricity from neighboring states.

6. The Role of Nuclear Energy

Ukraine’s nuclear energy plants play a critical role in the country’s electricity supply. Before the war, nuclear power accounted for around 50% of Ukraine’s total electricity generation, and for communities near the front line, electricity is civilization that depends on reliable baseload. Despite the ongoing conflict, Ukrainian nuclear plants have remained operational, though they face heightened security risks due to the proximity of active combat zones.

In the winter months, nuclear plants are expected to continue providing a significant portion of Ukraine's electricity, which is essential for meeting the country's heating and power needs. The government has made efforts to ensure the safety and security of these plants, which remain a vital part of the country's energy strategy.

Keeping the lights on in Ukraine during the winter of 2024 is no small feat, given the war-related damage to energy infrastructure, rising energy demands, and ongoing security risks. However, the Ukrainian government has taken proactive steps to address these challenges, including repairing critical infrastructure, importing energy from neighboring countries, promoting energy efficiency, and expanding renewable energy sources. International aid and the continued operation of nuclear plants also play a vital role in ensuring a reliable energy supply. While challenges remain, Ukraine’s resilience and determination to overcome its energy crisis are clear, and the country is doing everything it can to keep the lights on through this difficult winter.

 

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Egypt Plans Power Link to Saudis in $1.6 Billion Project

Egypt-Saudi Electricity Interconnection enables cross-border power trading, 3,000 MW capacity, and peak-demand balancing across the Middle East, boosting grid stability, reliability, and energy security through an advanced electricity network, interconnector infrastructure, and GCC grid integration.

 

Key Points

A 3,000 MW grid link letting Egypt and Saudi Arabia trade power, balance peak demand, and boost regional reliability.

✅ $1.6B project; Egypt invests ~$600M; 2-year construction timeline

✅ 3,000 MW capacity; peak-load shifting; cross-border reliability

✅ Links GCC grid; complements Jordan and Libya interconnectors

 

Egypt will connect its electricity network to Saudi Arabia, joining a system in the Middle East that has allowed neighbors to share power, similar to the Scotland-England subsea project that will bring renewable power south.

The link will cost about $1.6 billion, with Egypt paying about $600 million, Egypt’s Electricity Minister Mohamed Shaker said Monday at a conference in Cairo, as the country pursues a smart grid transformation to modernize its network. Contracts to build the network will be signed in March or April, and construction is expected to take about two years, he said. In times of surplus, Egypt can export electricity and then import power during shortages.

"It will enable us to benefit from the difference in peak consumption,” Shaker said. “The reliability of the network will also increase.”

Transmissions of electricity across borders in the Gulf became possible in 2009, when a power grid connected Qatar, Kuwait, Saudi Arabia and Bahrain, a dynamic also seen when Ukraine joined Europe's grid under emergency conditions. The aim of the grid is to ensure that member countries of the Gulf Cooperation Council can import power in an emergency. Egypt, which is not in the GCC, may have been able to avert an electricity shortage it suffered in 2014 if the link with Saudi Arabia existed at the time, Shaker said.

The link with Saudi Arabia should have a capacity of 3,000 megawatts, he said. Egypt has a 450-megawatt link with Jordan and one with Libya at 200 megawatts, the minister said. Egypt will seek to use its strategic location to connect power grids in Asia, where the Philippines power grid efforts are raising standards, and elsewhere in Africa, he said.

In 2009, a power grid linked Qatar, Kuwait, Saudi Arabia and Bahrain, allowing the GCC states to transmit electricity across borders, much like proposals for a western Canadian grid that aim to improve regional reliability. 

 

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