Wind power on smaller scale carries potential

By SanLuisObispo.com


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If Abigail Stutzman has anything to say about it, small wind turbines will someday dot backyards across the Midwest.

The fifth-grader at Starside Elementary School in De Soto, Kan., has an interest in the environment, including helping to recycle much of her family's trash. But she has bigger plans, inspired by her school's recent installation of a turbine.

"When I grow up, I want to live off the grid," she said.

Much of the attention given to wind energy is for large utility-scale wind farms full of huge, three-blade generators. That's where most wind power is likely to be generated.

But the idea of producing wind energy just for a home, business or small town continues to fire the imagination of those seeking self-sufficiency.

Small wind turbines have blades from 12 to 56 feet in diameter. One popular model for smaller homes has 12-foot blades, which can produce about 30 percent of the home's power.

Small-scale wind projects accounted for less than 1 percent of installed wind capacity in 2009. But the concept has plenty of supporters who believe small turbines can provide an important supplement to utility-provided electricity.

Small projects can face big obstacles, and progress has been much slower than many hoped. Initial costs can be daunting and take more than 15 years for a homeowner to recover.

Turbines need more maintenance than some other types of renewable energy, such as solar panels. And the trees and buildings in urban areas like Kansas City, Mo., mean that a standard-style turbine, to take full advantage of the wind, could need a tower more than 100 feet tall, increasing costs and possibly violating zoning laws.

The turbines also can be noisy, another strike against them in urban neighborhoods.

August Huber III, CEO of commercial building company A.L. Huber, said small turbines eventually would find their place. He has installed a wind turbine at his company's Overland Park, Kan., offices.

The turbine, which uses scoops instead of blades to gather the wind, is designed for slower wind speeds in urban areas and is quieter than a traditional small turbine.

Similarly, DST Realty, a major Kansas City real estate developer, is planning a demonstration project at 18th Street and Broadway that will have two turbines designed for urban areas. A traditional turbine has a horizontal generating axis, designed for stronger winds. But the DST project's turbines each will have a vertical axis.

As to how well they will work, DST Realty Vice President Steve Taylor said, "We'll see."

Prospects look brighter in more sparsely populated areas.

August Spencer and his wife, a retired couple who live in eastern Jackson County, Kan., bought a traditional small turbine more than a year ago. The Spencers had enough land to put their turbine on a 45-foot-tall tower, which should give the average eight- to 14-mile-an-hour winds needed to be efficient.

"It can be real good like today, when I'm receiving 20-mile winds," Spencer said recently.

That experience can be replicated, said the experts, if you want to make the investment and do your homework.

Susan Brown is manager of business development for the Energy Savings Store in Lenexa, Kan., which sells solar collectors and wind turbines. Brown, who once helped lead opposition to the coal-fired plant that KCP&L is now building near Weston, has a wind turbine at her home north of Platte City, Mo. She said the benefits go beyond the economic.

"Every kilowatt I'm producing, I'm not giving asthma to a child," she said.

But she discourages many with an initial interest in buying a wind turbine. Despite the Midwest's wind resources, a turbine can be a worse buy than a solar-energy system, depending on location and on tax credits and other incentives.

An installed 2.4-kilowatt wind system for an average residence can cost about $20,000 and supply about a third of the home's demand for electricity. Despite a 30 percent federal tax credit, Brown figures repaying the cost would take roughly 16 years.

That can make it competitive with a solar-energy system, which also qualifies for the federal tax credit. But solar gets the edge when Kansas City Power & Light's solar rebate is included. This can knock 20 to 25 percent more off the price. Check your city's utilities to see if they offer additional rebates.

"We usually don't recommend wind turbines for Kansas City," Brown said.

However, a growing number of schools are showing interest in turbines, although producing power often is a secondary reason. The Starside Elementary turbine in De Soto will recharge batteries and run an electric train, but its main purpose is teaching students about renewable energy. Students asked for the turbine and helped raise money for it.

"We worked long and hard for these things, and the kids are really proud of it," said Paula Henderson, a counselor at the school.

Kansas City Kansas Community College is slightly more ambitious, with a wind turbine that can produce about $100 worth of electricity in four days. It also is used to train students who want jobs repairing wind turbines.

The potential of small wind is clearer in places like Beloit, Kan., northwest of Salina, Kan., and in the heart of wind country. This is where All Things Exterior - which sells siding, roofing and windows - has invested in its own turbine.

By taking advantage of the brisk wind and the renewable-energy tax credits, along with depreciation rules that reduce the price for businesses, the company expects a payback in seven to eight years, said Troy Odle, the company's account manager.

All Things Exterior believes there is enough of a market for small turbines that it is planning to sell them.

"It's not because we want to be tree huggers, but it's the right thing for America," Odle said.

Small-town America, in fact, has had success with smaller wind projects.

Rock Port, Mo., and Greensburg, Kan., don't own turbines, but they do get electricity from wind-generation projects developed for them. The Greensburg project produces enough power for 4,000 homes.

The projects were developed or financed by John Deere Wind Energy, which had been a major developer of wind energy for small towns but recently announced it was getting out of the business. The John Deere subsidiary, which has offices in Johnston, Iowa, declined to reveal what was behind the decision.

Interested small towns could buy and operate wind turbines on their own. This has been done across the country, including once in Kansas with mixed results.

Jetmore, north of Dodge City in western Kansas, had $250,000 gathering little interest in a bank account and decided to buy two reconditioned turbines to provide some power to town residents.

They began operating last year, but after a few months the blades fell off one turbine, which more recently has had vibration problems. The company that sold the turbines is making repairs, but the town no longer expects a payback in seven to 10 years.

"We found out why no one else had done one of these," said Lea Ann Seiler, director of economic development for Jetmore. "But I still think it was worthwhile."

What could be the future is companies like BTI Wind Energy in Greensburg, the Kansas town that was destroyed by a tornado in 2007. The community is emphasizing the use of renewable energy as it rebuilds.

Brad Estes and his family had the town's John Deere dealership, and they decided to buy a wind turbine as they rebuilt. That experience led them to start BTI, which sells turbines and aims to help others get into wind energy.

BTI now extends into several states, offering help to homeowners, businesses and schools.

"In the wide open spaces of Kansas, we should be able to do this all day long," Estes said.

How small-scale wind energy stacks up in the Midwest:

- Strength: Consistently strong wind in many rural and semi-rural areas.

- Drawbacks: Buildings and trees make wind less efficient in urban areas. Wind systems can be relatively high maintenance. Connecting to the grid to sell back any excess power can be tricky.

- Cost considerations: A homeowner could need more than 15 years to recoup a system's initial costs. But a 30 percent federal tax credit helps, and depreciation provisions help businesses further. Stable institutions such as schools also can get long-term financing to spread out the costs.

- Short-term potential: Limited in cities, but alternate turbines designed for urban areas are being tested.

- Long-term potential: Better in rural areas.

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Wind Denmark - summer's autumn weather provides extraordinarily low electricity prices

Western Denmark Negative Electricity Prices stem from wind energy oversupply, grid congestion, and limited interconnector capacity via Nord Pool and TenneT, underscoring electrification needs, renewable integration, special regulation, and system flexibility.

 

Key Points

They are sub-zero power prices from wind oversupply, weak interconnectors, low demand, and balancing needs.

✅ Caused by high wind output, low demand, and export bottlenecks

✅ Limited Nord Pool interconnector capacity depresses prices

✅ Special regulation and district heating absorb excess power

 

A downturn in the cable connection to Norway and Sweden, together with low electricity consumption and high electricity production, has pushed down European electricity prices to a negative level in Western Denmark.

A sign that the electrification of society is urgently needed, says Soren Klinge, head of electricity market at Wind Denmark today.

The heavy winds during the first weekend of July, unlike periods when cheap wind power wanes in the UK, have not only had consequences for the Danes who had otherwise been looking forward to spending their first days at home in the garden or at the beach. It has also pushed down prices in the electricity market to a negative level, which especially the West Danish wind turbine owners have had to notice.

'The electricity market is currently affected by an unfortunate coincidence of various factors that have a negative impact on the electricity price: a reduced export capacity to the other Nordic countries, a low electricity consumption and a high electricity generation, reflecting broader concerns over dispatchable power shortages in Europe today. Unfortunately, the coincidence of these three factors means that the price base falls completely out of the market. This is another sign that the electrification of society is urgently needed, 'explains Soren Klinge, electricity market manager at Wind Denmark.

According to the European power exchange Nord Pool Spot, where UK peak power prices are also tracked, the cable connection to Sweden is expected to return to full capacity from 19 July. The connection between Jutland and Norway is only expected to return to full capacity in early September.

2000 MWh / hour in special regulation

During the windy weather on Monday morning, July 6, up to 2000 MWh / hour was activated at national level in the form of so-called special regulation. Special regulation is the designation that the German system operator TenneT switches off Danish electricity generation at cogeneration plants and wind turbines in order to help with the balancing of the German power system during such events. In addition, electric boilers at the cogeneration plants also contribute by using the electricity from the electricity grid and converting it to district heating for the benefit of Danish homes and businesses.

'The Danish wind turbines are probably the source of most of the special regulation, because there are very few cogeneration units to down-regulate electricity generation. Of course, it is positive to see that we have a high degree of flexibility in the wind-based power system at home. That being said, Denmark does not really get ahead with the green transition, even as its largest energy company plans to stop using coal by 2023, until we are able to raise electricity consumption based on renewable energy.

 

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U.S. Grid overseer issues warning on Coronavirus

NERC COVID-19 Grid Security Alert urges utilities to update business continuity plans, assess supply chain risk, and harden cybersecurity against spearphishing, social engineering, and remote-work vulnerabilities to protect the U.S. power grid and critical infrastructure.

 

Key Points

A notice urging U.S. utilities to fortify pandemic continuity, secure supply chains, and enhance cybersecurity.

✅ Mandates updates to business continuity and pandemic readiness plans

✅ Flags supply chain risks for PPE, electronics, chemicals, and logistics

✅ Warns of spearphishing, social engineering, VPN and remote-work threats

 

The top U.S. grid security monitor urged power utilities to prepare for the new coronavirus in a rare alert yesterday, adding to a chorus of warnings from federal and private organizations.

The North American Electric Reliability Corp. called for power providers to update business continuity plans in case of a pandemic outbreak and weigh the need to prioritize construction or maintenance projects, including updates on major projects like BC Hydro's Site C, while the COVID-19 virus continues to spread.

NERC is requiring electric utilities to answer questions on their readiness for a possible pandemic, including potential staffing strategies such as on-site sequestering, by March 20, an unusual step that underscores the severity of the threat to U.S. power systems.

The Electricity Information Sharing and Analysis Center, NERC's hub for getting the word out on dangers and vulnerabilities for the grid, also sent out an "all-points bulletin" on Feb. 5 addressing the coronavirus outbreak. That nonpublic document covered "potential supply chain issues stemming from a manufacturing slowdown in Asia," NERC spokeswoman Kimberly Mielcarek said.

Among offering basic hygiene and awareness recommendations, NERC's latest alert also encourages utilities to take stock of resources with supply chains affected by the virus. Because "China and nearby southeast Asian nations" have been impacted, NERC said, the supply chain hits will likely include "electronics, personal protective equipment and sanitation supplies, chemicals, and raw materials." The nonprofit grid overseer also warned of global transportation disruptions.

NERC also recommended utilities be on the lookout for cyberattacks taking advantage of the panic and using "coronavirus-themed opportunistic social engineering attacks" to hack into power companies' networks. Social engineering attacks are when hackers use social interactions to manipulate targets into giving up sensitive information.

"Spearphishing, watering hole, and other disinformation tactics are commonly used to exploit public interest in significant events," the alert said.

Electric utility representatives said they're working on or have already completed some of the steps outlined in NERC's alert, though nuclear plant workers have cited a lack of precautions in some cases.

"At this point, many of our members are activating and/or reviewing their business continuity and preparedness plans to ensure that operations and infrastructure are properly supported," said Tobias Sellier, director of media relations for the American Public Power Association, which represents around 1,400 electric utilities.

The power providers are also collaborating with other utilities such as "water, wastewater and gas," Sellier said.

Stephen Bell, senior director of media and public relations at the National Rural Electric Cooperative Association, said his group's members "have already taken a number of steps recommended by NERC" while continuing to maintain operations.

"Co-ops continue working with local, state and federal stakeholders to remain vigilant and prepared. These preparations include more frequent communications to key stakeholders, updating business continuity plans and monitoring new information from public health officials," said Bell.

Last week the Electricity Subsector Coordinating Council (ESCC), a panel of government and industry officials charged with responding to power-sector emergencies, scheduled a conference call discussing how to protect the grid from disruption if the virus infects system operators. Ohio-based utility American Electric Power Co. said it is limiting public visits, has created a high-level response team and is working to ensure operations can continue, while reinforcing downed power line safety, if the virus keeps spreading (Energywire, March 6).

Scott Aaronson, vice president for security and preparedness of the Edison Electric Institute, which represents major investor-owned utilities, said that the electric sector practices "contingency planning" to deal with unusual situations such as the coronavirus. That means that while the type of emergency may be new, dealing with an emergency situation is not, he said. Aaronson added that many of NERC's recommendations are based on what companies are already doing.

"We have heightened awareness given the circumstances, and we have messaging to employees all the way up and down the chain — from CEOs to frontline workers — that: given this time of heightened awareness and potential vulnerability, we have to practice hygiene both of the personal and cyber variety," said Aaronson.

Aaronson said that the ESCC had another call this week with the departments of Energy and Homeland Security and the Centers for Disease Control and Prevention to stay on top of the issue.

Hacking concerns
In a cybersecurity event yesterday, Lisa Monaco, co-chair of the Aspen Cybersecurity Group and former homeland security adviser during the Obama administration, warned that the coronavirus should be considered a national security threat.

"Frankly, [pandemic] is the thing that kept me up at night amongst many, many things that kept me up at night for four years in the White House," Monaco said.

Monaco went on to say the virus will strain organizations' IT infrastructure as more employees work remotely and households face higher electricity bills, and lead to "potentially more vulnerabilities for bad actors when it comes to cybersecurity."

On Friday, the DHS's Cybersecurity and Infrastructure Security Agency released advice on steps that can be taken to lessen the virus's impact on supply chains and cybersecurity, as well as tips for defending against scams exploiting coronavirus fears.

Cybersecurity firms also have been reporting a dramatic increase in spear-phishing attacks, with hackers reportedly using the coronavirus topic as a lure to trick victims into clicking a malicious link. Whether it's hackers aiming at industries susceptible to shipping disruptions, attacking countries like Italy hit particularly hard by the virus or even masquerading as the World Health Organization, cybercriminals are taking full advantage of the crisis, experts say.

Greg Young, vice president of cybersecurity at Trend Micro, said businesses should continue to expect an increase in targeted phishing attacks.

"With a large majority of businesses switching to a work-from-home model and less emphasis on in-person meetings, we also anticipate that malicious actors will start to impersonate digital tools such as 'free' remote conferencing services and other cloud computing software," said Young.

Working from home can be especially risky, as often home networks are less secure than corporate offices, Young said — meaning a hacker aiming to get into an enterprise network could find an "easier attack path" from a home office.

The Department of Energy is asking employees to make sure they can work remotely when needed, even as some agencies set limits with EPA telework policy, including updating security questions and asking those with government-furnished laptops to be sure they have a VPN, or virtual private network, account. In a post added this week to the agency's website, Chief Information Officer Rocky Campione said the department over the next two weeks will be initiating steps to ensure there is adequate network capacity to carry out DOE's work.

"Ensuring the continued operations of the department's many varied missions requires diligence," Campione said.

 

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Hydro One will keep running its U.S. coal plant indefinitely, it tells American regulators

Hydro One-Avista Merger outlines a utility acquisition shaped by Washington regulators, Colstrip coal plant depreciation, and plans for renewables, clean energy, and emissions cuts, while Montana reviews implications for jobs, ratepayers, and a 2027 closure.

 

Key Points

A utility deal setting Colstrip depreciation and renewables, without committing to an early coal plant closure.

✅ Washington sets 2027 depreciation for Colstrip units

✅ Montana reviews jobs, ratepayer impacts, community fund

✅ Avista seeks renewables; no binding shutdown commitment

 

The Washington power company Hydro One is buying will be ready to close its huge coal-fired generating station ahead of schedule, thanks to conditions put on the corporate merger by state regulators there.

Not that we actually plan to do that, the company is telling other regulators in Montana, where coal unit retirements are under debate, the huge coal-fired generating station in question employs hundreds of people. We’ll be in the coal business for a good long time yet.

Hydro One, in which the Ontario government now owns a big minority stake, is still working on its purchase of Avista, a private power utility based in Spokane. The $6.7-billion deal, which Hydro One announced in July, includes a 15 per cent share in two of the four generating units in a coal plant in Colstrip, Montana, one of the biggest in the western United States. Avista gets most of its electricity from hydro dams and gas but uses the Colstrip plant when demand for power is high and water levels at its dams are low.

#google#

Colstrip’s a town of fewer than 2,500 people whose industries are the power plant and the open-pit mines that feed it about 10 million tonnes of coal a year. Two of Colstrip’s generators, older ones Avista doesn’t have any stake in, are closing in 2022. The other two will be all that keep the town in business.

In Washington, they don’t like the coal plant and its pollution. In Montana, the future of Colstrip is a much bigger concern. The companies have to satisfy regulators in both places that letting Hydro One buy Avista is in the public interest.

Ontario proudly closed the last of our coal plants in 2014 and outlawed new ones as environmental menaces, and Alberta's coal phase-out is now slated to finish by 2023. When Hydro One said it was buying Avista, which makes about $100 million in profit a year, Premier Kathleen Wynne said she hoped Ontario’s “value system” would spread to Avista’s operations.

The settlement is “an important step towards bringing together two historic companies,” Hydro One’s chief executive Mayo Schmidt said in announcing it.

The deal has approval from the Washington Utilities and Transportation Commission staff but is subject to a vote by the group’s three commissioners. It doesn’t commit Avista to closing anything at Colstrip or selling its share. But Avista and Hydro One will budget as if the Colstrip coal burners will close in 2027, instead of running into the 2040s as their owners had once planned, a timeline that echoes debates over the San Juan Generating Station in New Mexico.

In accounting terms, they’ll depreciate the value of their share of the plant to zero over the next nine years, reflecting what they say is the end of the plant’s “useful life.” Another of Colstrip’s owners, Puget Sound Energy, has previously agreed with Washington regulators that it’ll budget for a Colstrip closure in 2027 as well.

Avista and Hydro One will look for sources of 50 megawatts of renewable electricity, including independent power projects where feasible, in the next four years and another 90 megawatts to supplement Avista’s supply once the Colstrip plant eventually closes, they promise in Washington. They’ll put $3 million into a “community transition fund” for Colstrip.

The money will come from the companies’ profits and cash, the agreement says. “Hydro One will not seek cost recovery for such funds from ratepayers in Ontario,” it says specifically.

“Ontario has always been a global leader in the transition away from dirty coal power and towards clean energy,” said Doug Howell, an anti-coal campaigner with the Sierra Club, which is a party to the agreement. “This settlement continues that tradition, paving the way for the closure of the largest single source of climate pollution in the American West by 2027, if not earlier.”

Montanans aren’t as thrilled. That state has its own public services commission, doing its own examination of the corporate merger, which has asked Hydro One and Avista to explain in detail why they want to write off the value of the Colstrip burners early. The City of Colstrip has filed a petition saying it wants in on Montana hearings because “the potential closure of (Avista’s units) would be devastating to our community.”

Don’t get too worked up, an Avista vice-president urged the Montana commission just before Easter.

“Just because an asset is depreciated does not mean that one would otherwise remove that asset from service if the asset is still performing as intended,” Jason Thackston testified in a session that dealt only with what the deal with Washington state would mean to Colstrip. We’re talking strictly about an accounting manoeuvre, not an operational commitment.

Six joint owners will have to agree to close the Colstrip generators and there’s “no other tacit understanding or unstated agreement” to do that, he said.

Besides Washington and Montana, state regulators in Idaho, including those overseeing the Idaho Power settlement process, Alaska and Oregon and multiple federal authorities have to sign off on the deal before it can happen. Hydro One hopes it’ll be done in the second half of this year.

 

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Electricity users in Newfoundland have started paying for Muskrat Falls

Muskrat Falls rate mitigation offsets Newfoundland Power's rate stabilization decrease as NL Hydro begins cost recovery; Public Utilities Board approval enables collections while Labrador-Island Link nears commissioning, stabilizing electricity rates despite megaproject delays, overruns.

 

Key Points

Muskrat Falls rate mitigation is NL Hydro's cost recovery via power rates to stabilize bills as commissioning nears.

✅ Offsets 6.4% decrease with a 6.1% rate increase

✅ About 6% now funds NL Hydro's rate mitigation

✅ Collections begin as Labrador-Island Link nears commissioning

 

With their July electricity bill, Newfoundland Power customers have begun paying for Muskrat Falls, though a lump-sum credit was also announced to offset costs and bills haven't significantly increased — yet.

In a July newsletter, Newfoundland Power said electricity bills were set to decrease by 6.4 per cent as part of the annual rate stabilization adjustment, which reflects the cost of electricity generation.

Instead, that decrease has been offset by a 6.1 increase in electricity rates so Newfoundland and Labrador Hydro can begin recovering the cost of Muskrat Falls, with a $5.2-billion federal package also underpinning the project, the $13-billion hydroelectric megaproject that is billions over budget and years behind schedule.

That means for residential customers, electricity rates will decrease to 12.346 cents per kilowatt, though the basic customer charge will go up slightly from $15.81 to $15.83. According to an N.L. Hydro spokesperson, about six per cent of electricity bills will now go toward what it calls a "rate mitigation fund." 

N.L. Hydro claims victory in Muskrat Falls arbitration dispute with Astaldi
Software troubles blamed for $260M Muskrat Falls cost increase, with N.L. power rates stable for now
The spokesperson said N.L. Hydro is expecting the rate increase to result in $43 million this year, according to a recent financial update from the energy corporation — a tiny fraction of the project's cost. 

N.L. Hydro asked the Public Utilities Board to approve the rate increase, a process similar to Nova Scotia's recent 14% approval by its regulator, in May. In a letter, Energy, Industry and Technology Minister Andrew Parsons supported the increase, though he asked N.L. Hydro to keep electricity rates "as close to current levels as possible. 

Province modifies order in council
Muskrat Falls is not yet fully online — largely due to software problems with the Labrador-Island Link transmission line — and an order in council dictated that ratepayers on the island of Newfoundland would not begin paying for the project until the project was fully commissioned. 

The provincial government modified that order in council so N.L. Hydro can begin collecting costs associated with Muskrat Falls once the project is "nearing" commissioning.

In June, N.L. Hydro said the project was expected to finally be completed by the end of the year.

In an interview with CBC News, Progressive Conservative interim leader David Brazil said the decision to begin recovering the cost of Muskrat Falls from consumers should have been delayed.

"There was an opportunity here for people to get some reprieve when it came to their electricity bills and this administration chose not to do that, not to help the people while they're struggling," he said.

In a statement, Parsons said reducing the rate was not an option, and would have resulted in increased borrowing costs for Muskrat Falls.

"Reducing the rate for one year to have it increase significantly the following year is not consistent with rate mitigation and also places an increased financial burden on taxpayers one year from now," Parsons said.

Decision 'reasonable': Consumer advocate
Brazil said his party didn't know the payments from Muskrat Falls would start in July, and criticized the government for not being more transparent.

A person wearing a blue shirt and black blazer stands outside on a lawn.
N.L. consumer advocate Dennis Browne says it makes sense to begin recouping the cost of Muskrat Falls. (Garrett Barry/CBC)
Newfoundland and Labrador consumer advocate Dennis Browne said the decision to begin collecting costs from consumers was "reasonable."

"We're into a financial hole due to Muskrat Falls, and what has happened is in order to stabilize rates, we have gone into rate stabilization efforts," he said.

In February, the provincial and federal governments signed a complex agreement to shield ratepayers aimed at softening the worst of the financial impact from Muskrat Falls. Browne noted even with the agreement, the provincial government will have to pay hundreds of millions in order to stabilize electricity rates.

"Muskrat Falls would cost us $0.23 a kilowatt, and that is out of the range of affordability for most people, and that's why we're into rate mitigation," he said. "This was part of a rate mitigation effort, and I accepted it as part of that."

 

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UCP scraps electricity price cap, some will see $7 bill increase this month

Edmonton Electricity Rate Increase signals Alberta RRO changes as the UCP ends the NDP price cap; kilowatt-hour rises to 7.5 cents, raising energy bills for typical households by 3.9 percent in December.

 

Key Points

The end of Alberta’s RRO cap lifts kWh to 7.5 cents, raising an average Edmonton home’s bill about 3.9% in December.

✅ RRO price cap scrapped; kWh set at 7.5 cents in December.

✅ Average 600 kWh home pays about $7.37 more vs November.

✅ UCP ends NDP-era cap after stakeholder and consumer feedback.

 

Electricity will be more expensive for some Edmontonians in December after the UCP government scrapped a program that capped rates amid prices spiking in Alberta this year.

Effective Nov. 30, the province got rid of the consumer price cap program for Regulated Rate Option customers.

In 2017, the NDP government capped the kilowatt per hour price at 6.8 cents under a consumer price cap policy, meaning Edmontonians would pay the market rate and not more than the capped price.

In December, kWh will cost 7.5 cents amid expert warnings to lock in rates across Alberta. Typical Edmonton homes use an average of 600 kWh, increasing bills by $7.37, or 3.9 per cent, compared to November.

In Calgary, electricity bills have been rising as well, reflecting similar market pressures.

The NDP created the capacity system to bring price stability to Albertans, though a Calgary retailer urged scrapping the market overhaul at the time.

Energy Minister Sonya Savage said the UCP decided to scrap it after "overwhelming" feedback from consumers and industry stakeholders, as the province introduced new electricity rules earlier this year. 

 

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Alberta's electricity rebate program extended until December

Alberta Electricity Rebate Extension provides $50 monthly credits, utility bill relief, and an natural gas rebate, supporting homes, farms, and small businesses with energy costs through December 2022, capped at 250 MWh per year.

 

Key Points

A provincial program extending $50 credits and energy relief, with a natural gas rebate for eligible consumers in 2022.

✅ Up to $300 in bill credits; auto-applied to eligible accounts

✅ Applies to whole bill; limit 250 MWh/year consumption

✅ Natural gas rebate triggers above $6.50/GJ Oct-Mar 2023

 

Alberta's electricity rebate program has been extended by three months amid an electricity price spike in Alberta, and will now be in effect until the end of December, the government said.

The program was originally to provide more than 1.9 million homes, farms and small businesses with $50 monthly credits on their electricity bills, complementing a consumer price cap on power bills, for July, August and September. It will now also cover the final three months of 2022.

Those eligible for the rebate could receive up to $300 in credits until the end of December, a relief for Alberta ratepayers facing deferral costs.

The program, designed to provide relief to Albertans hit hard by high utility bills and soaring energy prices, will cost the Alberta government $600 million.

Albertans who have consumed electricity within the past calendar year, up to a maximum of 250 megawatt hours per year, are eligible for the rebates, which will be automatically applied to consumer bills, as seen in Ontario electricity bill support initiatives.

The rebates will apply to the entire bill, similar to a lump-sum credit in Newfoundland and Labrador, not just the energy portion, the government said. The rebates will be automatic and no application will be needed.

Starting October, the government will enact a natural gas rebate program until March 2023 that will kick in when prices exceed $6.50 per gigajoule, and Alberta's consumer price cap on electricity will remain in place.

 

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