California sues over clean energy

By Reuters


High Voltage Maintenance Training Online

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 12 hours Instructor-led
  • Group Training Available
Regular Price:
$599
Coupon Price:
$499
Reserve Your Seat Today
California's attorney general sued U.S. mortgage giants Fannie Mae and Freddie Mac for blocking a home clean-energy program he says will create jobs and stimulate local economies.

The program, part of the $787 billion economic stimulus legislation last year, allows local governments to make loans to homeowners to cover the hefty upfront costs of installing solar panels and other energy-saving improvements.

Fannie Mae and Freddie Mac oppose the loans because the municipalities making them would repaid first if a property goes into foreclosure, before investors in mortgages securitized by Fannie and Freddie.

"Right in the middle of this recession, this program is being strangled by these massive behemoths Fannie Mae and Freddie Mac," California Attorney General Jerry Brown told reporters in San Diego.

Brown said about half of California's counties had adopted PACE Property Assessed Clean Energy programs or planned to before Fannie and Freddie's opposition "stopped these programs dead in their tracks" — threatening jobs and more than $100 million of federal stimulus money for the state.

The suit was filed in U.S. District Court for the Northern District of California, and asks that Fannie and Freddie drop policies opposing PACE programs.

Brown, a Democrat locked in a tight race with Republican former eBay CEO Meg Whitman for California governor, a job he held from 1978 to 1983, also sent a letter to President Barack Obama asking him to intervene.

"I'm writing to inform you that Fannie Mae, Freddie Mac and the Federal Housing Finance Agency FHFA are obstructing an innovative program aimed at encouraging clean energy development and creating tens of thousands of jobs," Brown wrote. "I urge you to do everything in your power to reverse their illegal and short-sighted actions."

Edward DeMarco, FHFA acting director, said in a statement in response to the lawsuit that his agency would "defend vigorously its actions that aim to protect taxpayers, lenders, Fannie Mae and Freddie Mac."

"Homeowners should not be placed at risk by programs that alter lien priorities and fail to operate with sound underwriting guidelines and consumer protections," DeMarco said in the statement.

"Mortgage holders should not be forced to absorb new credit risks after they have already purchased or guaranteed a mortgage," he said.

California Governor Arnold Schwarzenegger issued a statement supporting the lawsuit and called it "preposterous to do away with a program that will create jobs, provide energy savings and benefit our environment."

Under the program, the homeowner repays the loan over 20 years through a special property tax assessment, which stays as a lien on the home even if it is sold. The expectation is that the tax obligation can be paid off from energy cost savings.

But Fannie and Freddie — which buy mortgages and guarantee those they securitize — objected to the municipal liens associated with the program, saying they constitute a new loan on the property that has senior status to the mortgage — a violation of their securitization terms.

Under this logic, if property goes into foreclosure, then the municipal lien would have to be paid off first, before mortgage investors.

Related News

Yet another Irish electricity provider is increasing its prices

Electric Ireland Electricity Price Increase stems from rising wholesale costs as energy suppliers adjust tariffs. Customers face higher electricity bills, while gas remains unchanged; switching provider could deliver savings during winter.

 

Key Points

A 4% increase in Electric Ireland electricity prices from 1 Feb 2018, driven by wholesale costs; gas unchanged.

✅ 4% electricity rise effective 1 Feb 2018

✅ Increase attributed to rising wholesale energy costs

✅ Switching supplier may reduce bills and boost savings

 

ELECTRIC IRELAND has announced that it will increase its household electricity prices by 4% from 1 February 2018.

This comes just a week after both Bord Gáis Energy and SSE Airtricity announced increases in their gas and electricity prices, while national efforts to secure electricity supplies continue in parallel.

Electric Ireland has said that the electricity price increase is unavoidable due to the rising wholesale cost of electricity, with EU electricity prices trending higher as well.

The electricity provider said it has no plans to increase residential gas prices at the moment.

Commenting on the latest announcement, Eoin Clarke, managing director of Switcher.ie, said: “This is the third largest energy supplier to announce a price increase in the last week, so the other suppliers are probably not far behind.

“The fact that the rise is not coming into effect until 1 February will be welcomed by Electric Ireland customers who are worried about the rising cost of energy as winter sets in,” he said.

However, any increase is still bad news, especially as a quarter of consumers (27%) say their energy bill already puts them under financial pressure, and EU energy inflation has disproportionately affected lower-income households.

According to Electric Ireland, this will amount to a €2.91 per month increase for an average electricity customer, amounting to €35 per year.

Meanwhile, SSE Airtricity’s change amounts to an increase of 90 cent per week or €46.80 per year for someone with average consumption on their 24hr SmartSaver standard tariff, far below the dramatic Spain electricity price surge seen recently.

Bord Gáis Energy said its announcement will increase a typical gas bill by €2.12 a month and a typical electricity bill by €4.77 a month, reflecting wider trends such as the Germany power price spike reported recently.

In a statement, Bord Gáis Energy said: “The changes, which will take effect from 1st November 2017, are due to significant increases in the wholesale cost of energy as well as higher costs associated with distributing energy on the gas and electricity networks.

“In percentage terms, the increase represents 3.4% in a typical customer’s gas bill and an increase of 5.9% in a typical customer’s electricity bill.”

Clark said that if customers haven’t switched electricity provider in over a year that they should review the deals available at the moment.

“The market is highly competitive so there are huge savings to be made by switching,” he said.

“All suppliers use the same cables to supply electricity to your home, so you don’t need to worry about any loss in service, and you could save up to 324 by switching from typical standard tariffs to the cheapest deals on the market.”

 

Related News

View more

Alberta ratepayers on the hook for unpaid gas and electricity bills from utility deferral program

Alberta Utility Rate Rider will add a modest fee to electricity bills and natural gas charges as the AUC recovers outstanding debt from the COVID-19 deferral program via AESO and the Balancing Pool.

 

Key Points

A temporary surcharge on Alberta power and gas bills to recover unpaid COVID-19 deferral debt, administered by the AUC.

✅ Applies per kWh and per GJ based on consumption

✅ Recovers unpaid balances from 2020-21 bill deferrals

✅ Collected via AESO and the Balancing Pool under AUC oversight

 

The province says Alberta ratepayers should expect to see an extra fee on their utility bills in the coming months.

That fee is meant to recover the outstanding debt owed to gas and electricity providers resulting from last year's three-month utility deferral program offered to struggling Albertans during the pandemic.

The provincial government announced the utility deferral program in March 2020 then formalized it with legislation, alongside a consumer price cap on power bills that shaped later policy decisions.

The program allowed residential, farm and small commercial customers who used less than 250,000 kilowatt hours of electricity per year — or consumed less than 2,500 gigajoules per year — to postpone their bills amid the COVID-19 pandemic.

According to the province, 350,000 customers, or approximately 13 per cent of the natural gas and electricity consumer base, took advantage of the program.

Customers had a year to repay providers what they owed. That deadline ended June 18, 2021.

The Alberta Utilities Commission (AUC), which regulates the utilities sector and natural gas and electricity markets and oversees a rate of last resort framework, said the vast majority of consumers have squared up.

But for those who didn't, provincial legislation dictates that Alberta ratepayers must cover any unpaid debt. The legislation exempts Medicine Hat utility customers for electricity and gas co-operative customers for gas.

"When the program was announced, it was very clear that it was a deferral program and that the monies would need to be paid back," said Geoff Scotton, a spokesperson with the Alberta Utilities Commission.

"Now we're in the situation where the providers, in good faith, who enabled those payment deferrals, need to be made whole. That's really the goal here."

Amount to be determined
Margeaux Maron, a spokesperson for Associate Minister of Natural Gas and Electricity Dale Nally, said based on early estimates, $13 to $16 million of $92 million in deferred payments remain outstanding.

As a result, the province expects the average Albertan will end up paying, unlike jurisdictions offering a lump-sum credit, a fraction of a dollar extra per monthly gas and electricity bill over a handful of months.

Scotton said at this point, there are too many unknown factors to know the exact size of the rate rider. However, he said he expects it to be modest.

Scotton said affected parties first have until the end of this week to notify the AUC exactly how much they are still owed.

Those parties include the Alberta Electric System Operator and the Balancing Pool, who essentially acted as bankers with respect to the distribution and transmission of the utilities to customers who deferred their payments.

Regulated service providers may also seek reimbursement on administrative and carrying costs, even as issues like a BC Hydro fund surplus spark debate elsewhere.

Then, Scotton said, once the outstanding amounts are known, the AUC will hold a public proceeding, similar to a Nova Scotia rate case, to determine the amount and the duration of the rate rider to be applied to each natural gas and electricity bill.

The amount will be based on consumption: per kilowatt hour for electricity and per gigajoule for natural gas.

That means larger businesses will end up paying more than the average Albertan.

Scotton said the AUC will expedite the hearing process and it expects to have a decision by the end of the summer.

Rate rider a 'surprise'
Joel MacDonald with Energyrates.ca — an organization which compares energy rates across the country — said it's not the amount of the rate rider that bothers him, but the fact that the repayment process wasn't made clear at the onset of the program.

"It came to us as a bit of a surprise," MacDonald said.

He said what was sold as a deferral program seems more like an electricity rebate program, or an "ability to pay" program.

"As opposed to the retailers looking into collection methods, anything that wasn't paid is basically just being forced upon all Alberta consumers," MacDonald said.

The expectation set out in the deferral legislation and regulations state utility providers such as Enmax and Epcor are expected to use reasonable efforts to try to collect the unpaid balances. It must then detail those reasonable efforts to the AUC.

A spokesperson for Enmax said it first works with its customers to find manageable payment arrangements and connects them with support services if they are unable to pay.

Then, if payment can't be arranged, it said it will work with a collection agency, which may even result in disconnection of service.

The spokesperson said only after all efforts have failed would Enmax seek reimbursement through this program.

Use tax revenues?
MacDonald also questioned why a government program isn't being paid for through general tax revenues.

He compared the utility deferral program to a mortgage subsidy program.

"Imagine that [Canada Mortgage And Housing Corporation] said, 'Hey, we had to give mortgage deferrals and some of these people never paid back their deferrals, so we're going to add an extra $300 to everyone's mortgage,'" he said.

"You'd expect that to come off of some sort of general taxation — not being assigned to other people's mortgages, right?"

In response, Maron said due to the current fiscal challenges facing the government — and the expected minimal costs to consumers, and even as a consumer price cap on electricity remains in place — it was determined that a rate rider would be an appropriate mechanism to repay bad debt associated with the program.

Scotton said rate riders aren't unusual — they're used to fine-tune rates for a set period of time.

He said under normal circumstances, regulated service providers can apply to the AUC to impose a rate rider to recover unexpected costs. And in some instances, they can provide a credit.

But in this situation, he said the debt is aggregated and, in turn, being collected more broadly.

 

Related News

View more

Peterborough Distribution sold to Hydro One for $105 million.

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.

 

Related News

View more

B.C. Challenges Alberta's Electricity Export Restrictions

BC-Alberta Electricity Restrictions spotlight interprovincial energy tensions, limiting power exports and affecting grid reliability, energy sharing, and climate goals, while raising questions about federal-provincial coordination, smart grids, and storage investments.

 

Key Points

Policies limiting Alberta's power exports to provinces like BC, prioritizing local demand and affecting grid reliability.

✅ Prioritizes Alberta load over interprovincial power exports

✅ Risks to BC peak demand support and outage resilience

✅ Pressures for federal-provincial coordination and smart-grid investment

 

In a move that underscores the complexities of Canada's interprovincial energy relationships, the government of British Columbia (B.C.) has formally expressed concerns over recent electricity restrictions imposed by Alberta after it suspended electricity purchase talks with B.C., amid ongoing regional coordination challenges.

Background: Alberta's Electricity Restrictions

Alberta, traditionally reliant on coal and natural gas for electricity generation, has been undergoing a transition towards more sustainable energy sources as it pursues a path to clean electricity in the province.

In response, Alberta introduced restrictions on electricity exports, aiming to prioritize local consumption and stabilize its energy market and has proposed electricity market changes to address structural issues.

B.C.'s Position: Ensuring Energy Reliability and Cooperation

British Columbia, with its diverse energy portfolio and commitment to sustainability, has historically relied on the ability to import electricity from Alberta, especially during periods of high demand or unforeseen shortfalls. The recent restrictions threaten this reliability, prompting B.C.'s government to take action amid an electricity market reshuffle now underway.

B.C. officials have articulated that access to Alberta's electricity is crucial, particularly during outages or times when local generation does not meet demand. The ability to share electricity among provinces ensures a stable and resilient energy system, benefiting consumers and supporting economic activities, including critical minerals operations, that depend on consistent power supply.

Moreover, B.C. has expressed concerns that Alberta's restrictions could set a precedent that might affect future interprovincial energy agreements. Such a precedent could complicate collaborative efforts aimed at achieving national energy goals, including sustainability targets and infrastructure development.

Broader Implications: National Energy Strategy and Climate Goals

The dispute between B.C. and Alberta over electricity exports highlights the absence of a cohesive national energy strategy, as external pressures, including electricity exports at risk, add complexity. While provinces have jurisdiction over their energy resources, the interconnected nature of Canada's power grids necessitates coordinated policies that balance local priorities with national interests.

This situation also underscores the challenges Canada faces in meeting its climate objectives. Transitioning to renewable energy sources requires not only technological innovation but also collaborative policies that ensure energy reliability and affordability across provincial boundaries, as rising electricity prices in Alberta demonstrate.

Potential Path Forward: Dialogue and Negotiation

Addressing the concerns arising from Alberta's electricity restrictions requires a nuanced approach that considers the interests of all stakeholders. Open dialogue between provincial governments is essential to identify solutions that uphold the principles of energy reliability, economic cooperation, and environmental sustainability.

One potential avenue is the establishment of a federal-provincial task force dedicated to energy coordination. Such a body could facilitate discussions on resource sharing, infrastructure investments, and policy harmonization, aiming to prevent conflicts and promote mutual benefits.

Additionally, exploring technological solutions, such as smart grids and energy storage systems, could enhance the flexibility and resilience of interprovincial energy exchanges. Investments in these technologies may reduce the dependency on traditional export mechanisms, offering more dynamic and responsive energy management strategies.

The tensions between British Columbia and Alberta over electricity restrictions serve as a microcosm of the broader challenges facing Canada's energy sector. Balancing provincial autonomy with national interests, ensuring equitable access to energy resources, and achieving climate goals require collaborative efforts and innovative solutions. As the situation develops, stakeholders across the political, economic, and environmental spectrums will need to engage constructively, fostering a Canadian energy landscape that is resilient, sustainable, and inclusive.

 

Related News

View more

Sask. sets new record for power demand

SaskPower Summer Power Demand Record hits 3,520 MW as heat waves drive electricity consumption; grid capacity, renewables expansion, and energy efficiency tips highlight efforts to curb greenhouse gas emissions while meeting Saskatchewan's growing load.

 

Key Points

The latest summer peak load in Saskatchewan: 3,520 MW, driven by heat, with plans to expand capacity and lower emissions.

✅ New peak surpasses last August by 50 MW to 3,520 MW.

✅ Capacity target: 7,000 MW by 2030 with more renewables.

✅ Tips: AC settings, close blinds, delay heat-producing chores.

 

As the mercury continues to climb in Saskatchewan, where Alberta's summer electricity record offers a regional comparison, SaskPower says the province has set a new summer power demand record.

The Crown says the new record is 3,520 megawatts. It’s an increase of 50 megawatts over the previous record, or enough electricity for 50,000 homes.

“We’ve seen both summer and winter records set every year for a good while now. And if last summer is any indication, we could very well see another record before temperatures cool off heading into the fall,” said SaskPower Vice President of Transmission and Industrial Services Kory Hayko in a written release. “It’s not impossible we’ll break this record again in the coming days. It’s SaskPower’s responsibility to ensure that Saskatchewan people and businesses have the power they need to thrive. That’s what drives our investment of $1 billion every year, as outlined in our annual report, to modernize and grow the province’s electrical system.”

The previous summer consumption record of 3,740 megawatts was set last August, and similar extremes in the Yukon electricity demand highlight broader demand pressures this year. The winter demand record remains higher at 3,792 megawatts, set on Dec. 29, 2017.

SaskPower says it plans to expand its generation capacity from 4,500 megawatts now to 7,000 megawatts in 2030, with a focus on decreasing greenhouse gas emissions and doubling renewable electricity by 2030 as part of its strategy.

To reduce power bills, the Crown suggests turning down or programming air conditioning when residents aren’t home, inspecting the air conditioner to make sure it is operating efficiently, keeping blinds closed to keep out direct sunlight, delaying chores that produce heat and making sure electronics are turned off when people leave the room.

The new record beats the previous summer peak of 3,470 MW, set last August after also being broken twice in July. The winter demand record is still higher at 3,792 MW, which was set on December 29, 2017. To meet growing power demand, and amid projections that Manitoba's electrical demand could double in the next 20 years, SaskPower is expanding its generation capacity from approximately 4,500 MW now to 7,000 MW by 2030 while also reducing greenhouse gas emissions by 40 per cent from 2005 levels. To accomplish this, we will be significantly increasing the amount of renewables on our system.

Cooling and heating represents approximately a quarter of residential power bills. To reduce consumption and power bills during heat waves, SaskPower’s customers can:

Turn down or program the air conditioning when no one is home (for every degree that air conditioning is lowered for an eight-hour period, customers can save up to two per cent on their power costs);

Consider having their air conditioning unit inspected to make sure it is operating efficiently;

Keep the heat out by closing blinds and drapes, especially those with direct sunlight;

Delay chores that produce heat and moisture, like dishwashing and laundering, until the cooler parts of the day or evening; and

As with any time of the year, make sure lights, televisions and other electronics are turned off when no one's in the room. For example, a modern gaming console can use as much power as a refrigerator.

 

Related News

View more

Manitoba's electrical demand could double in next 20 years: report

Manitoba Hydro Integrated Resource Plan outlines electrification-driven demand growth, clean electricity needs, wind generation, energy efficiency, hydropower strengths, and net-zero policy impacts, guiding investments to expand capacity and decarbonize Manitoba's grid.

 

Key Points

Manitoba Hydro IRP forecasting 2.5x demand, clean power needs, and capacity additions via wind and energy efficiency.

✅ Projects electricity demand could more than double within 20 years.

✅ Leverages 97% hydro supply; adds wind generation and efficiency.

✅ Positions for net-zero, electrification, and new capacity by the 2030s.

 

Electrical demand in Manitoba could more than double in the next 20 years, a trend echoed by BC Hydro's call for power in response to electrification, according to a new report from Manitoba Hydro.

On Tuesday, the Crown corporation released its first-ever Integrated Resource Plan (IRP), which not only predicts a significant increase in electrical demand, but also that new sources of energy, and a potential need for new power generation, could be needed in the next decade.

“Right now, what [our customers] are telling us, with the climate change objectives, with federal policy, provincial policies, is they see using electricity much more in the future than they do today,” said president and CEO of Manitoba Hydro Jay Grewal.

“And our current, where we’re at now, our customers have told us through all this consultation and engagement over the last two years, they’re going to want and need more than 2.5 times the electricity than we have in the province today.”

The IRP indicates that the move towards low or no-carbon energy sources will accelerate the need for clean electricity, which will require significant investments, including new turbine investments to expand capacity. Some of the clean energy measures Hydro is looking at for the future include wind generation and energy efficiency.

The report also found that Manitoba is in a good position as it prepares for the future due to its hydroelectric system, which delivers around 97 per cent of the yearly electricity. However, the province’s existing supply is limited, and vulnerable to Western Canada drought impacts on hydropower, so other electrical energy sources will be needed.

“Something Manitobans may not realize is, we are in such a privileged province, because 97 per cent of the electricity produced in Manitoba today is clean energy and net zero,” Grewal said.

Manitoba also supplies power to neighbouring utilities, with a SaskPower purchase agreement to buy more electricity under an expanded deal.

The IRP is the result of a two-year development process that involved multiple rounds of engagement with customers and other interested parties. The IRP is not a development plan, but it arrives as Hydro warns it can't service new energy-intensive customers under current capacity, and it outlines how Manitoba Hydro will monitor, prepare and respond to the changes in the energy landscape.

“We spoke with over 15,000 of our customers, whether they’re residential, commercial, industrial, industry associations, regulators, government – across the board, we talked with our customers,” said Grewal.

“And what we did was through this work, we understood what our customers are anticipating using electricity for going forward.

 

Related News

View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Live Online & In-person Group Training

Advantages To Instructor-Led Training – Instructor-Led Course, Customized Training, Multiple Locations, Economical, CEU Credits, Course Discounts.

Request For Quotation

Whether you would prefer Live Online or In-Person instruction, our electrical training courses can be tailored to meet your company's specific requirements and delivered to your employees in one location or at various locations.