BC Hydro aims to strengthen power grid

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

Key Points

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

✅ $105 million purchase; Ontario Energy Board approval required

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

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

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

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

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

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

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

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

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

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

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

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Switch-On Project Electric Trucks accelerate California freight decarbonization, deploying Volvo VNR Electric rigs with high-capacity charging infrastructure, zero-emissions operations, and connected safety features to cut greenhouse gases and improve urban air quality.

Key Points

A California program deploying Volvo VNR Electric trucks and charging to decarbonize freight and improve air quality.

✅ 70 Volvo VNR Electric trucks for regional logistics

✅ Strategic high-capacity charging for heavy-duty fleets

✅ Lower TCO via fuel savings and reduced maintenance

In a significant step toward sustainable transportation, the Switch-On project is bringing 70 Volvo VNR Electric trucks to California. This initiative aims to bolster the state's efforts to reduce emissions and transition to greener logistics solutions. The arrival of these electric vehicles marks an important milestone in California's commitment to combating climate change and improving air quality.

The Switch-On Project: Overview and Goals

The Switch-On project is a collaborative effort designed to enhance electric truck adoption in California. It focuses on developing the necessary infrastructure and technology to support electric vehicles (EVs) in the freight and logistics sectors, building on recent nonprofit investments at California ports. The project not only seeks to increase the availability of electric trucks but also aims to demonstrate their effectiveness in real-world applications.

California has set ambitious goals for reducing greenhouse gas emissions, particularly from the transportation sector, which is one of the largest contributors to air pollution. By introducing electric trucks into freight operations, the state aims to significantly cut emissions, improve public health, and pave the way for a more sustainable future.

The Volvo VNR Electric Trucks

The Volvo VNR Electric trucks are specifically designed for regional distribution and urban transport, aligning with Volvo's broader electric lineup as the company expands offerings, making them ideal for the needs of California’s freight industry. With a range of approximately 250 miles on a single charge, these trucks can efficiently handle most regional routes. Equipped with advanced technology, including regenerative braking and connectivity features, the VNR Electric models enhance operational efficiency and safety.

These trucks not only provide a cleaner alternative to traditional diesel vehicles but also promise lower operational costs over time. With reduced fuel expenses and lower maintenance needs, and emerging vehicle-to-grid pilots that can create new value streams, businesses can benefit from significant savings while contributing to environmental sustainability.

Infrastructure Development

A crucial aspect of the Switch-On project is the development of charging infrastructure to support the new fleet of electric trucks. The project partners are working on installing high-capacity charging stations strategically located throughout California while addressing utility planning challenges that large fleets will pose to the power system. This infrastructure is essential to ensure that electric trucks can be charged efficiently, minimizing downtime and maximizing productivity.

The charging stations are designed to accommodate the specific needs of heavy-duty vehicles, and corridor models like BC's Electric Highway provide useful precedents for network design, allowing for rapid charging that aligns with operational schedules. This development not only supports the new fleet but also encourages other logistics companies to consider electric trucks as a viable option for their operations.

Benefits to California

The introduction of 70 Volvo VNR Electric trucks will have several positive impacts on California. Firstly, it will significantly reduce greenhouse gas emissions from the freight sector, contributing to the state’s ambitious climate goals even as grid expansion will be needed to support widespread electrification across sectors. The transition to electric trucks is expected to improve air quality, particularly in urban areas that struggle with high pollution levels.

Moreover, the project serves as a model for other regions considering similar initiatives. By showcasing the practicality and benefits of electric trucks, California hopes to inspire widespread adoption across the nation. As the market for electric vehicles continues to grow, this project can play a pivotal role in accelerating the transition to sustainable transportation solutions.

Industry and Community Reactions

The arrival of the Volvo VNR Electric trucks has been met with enthusiasm from both industry stakeholders and community members. Logistics companies are excited about the opportunity to reduce their carbon footprints and operational costs. Meanwhile, environmental advocates applaud the project as a crucial step toward cleaner air and healthier communities.

California’s commitment to sustainable transportation has positioned it as a leader in the shift to electric vehicles amid an ongoing biofuels vs. EVs debate over the best path forward, setting an example for other states and countries.

Conclusion

The Switch-On project represents a major advancement in California's efforts to transition to electric transportation. With the deployment of 70 Volvo VNR Electric trucks, the state is not only taking a significant step toward reducing emissions but also demonstrating the feasibility of electric logistics solutions.

As infrastructure develops and more electric trucks hit the roads, California is paving the way for a greener, more sustainable future in transportation. The success of this project could have far-reaching implications, influencing policies and practices in the broader freight industry and beyond.

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California Heat Wave Grid Emergency sees CAISO issue Stage 3 alerts as record demand, extreme heat, and climate change strain renewable energy; conservation efforts avert rolling blackouts and protect grid reliability statewide.

Key Points

A grid emergency in California's heat wave, with CAISO Stage 3 alerts amid record demand and risk of rolling blackouts.

✅ CAISO triggered Stage 3 alerts, then downgraded by 8 pm PT

✅ Record 52,061 MW demand; conservation reduced grid stress

✅ Extreme heat and climate change heightened outage risks

California has avoided ordering rolling blackouts after electricity demand reached a record-high Tuesday night from excessive heat across the state, even as energy experts warn the U.S. grid faces mounting climate stresses. 

The California Independent System Operator, which oversees the state’s electrical grid, imposed its highest level energy emergency on Tuesday, a step that comes before ordering rolling blackouts and allows the state to access emergency power sources.

The Office of Emergency Services also sent a text alert to residents requesting them to conserve power. The operator downgraded the Stage 3 alert around 8:00 p.m. PT on Tuesday and said that “consumer conservation played a big part in protecting electric grid reliability,” and in bolstering grid resilience overall.

The state capital of Sacramento reached 116 degrees Fahrenheit on Tuesday, according to the National Weather Service, surpassing a record that was set almost 100 years ago. And nearly a half-dozen cities in the San Francisco Bay Area tied or set all-time highs, the agency said.

CAISO said peak power demand on Tuesday reached 52,061 megawatts, surpassing a previous high of 50,270 megawatts on July 24, 2006, while nearby B.C. electricity demand has also hit records during extreme weather.

While the operator did not order rolling blackouts, three Northern California cities saw brief power outages, and severe storms have caused similar disruptions statewide in recent months. As of 7:00 am PT on Wednesday, nearly 8,000 customers in California were without power, according to PowerOutage.us. 

Gov. Gavin Newsom, in a Twitter video on Tuesday, warned the temperatures across California were unprecedented and the state is headed into the worst part of the heat wave, which is on track to be the hottest and longest on record for September.

“The risk for outages is real and it’s immediate,” Newsom said. “These triple-digit temperatures throughout much of the state are leading, not surprisingly, to record demand on the energy grid.”

The governor urged residents to pre-cool their homes earlier in the day when more power is available and turn thermostats to 78 degrees or higher after 4:00 pm PT. “Everyone has to do their part to help step up for just a few more days,” Newsom said.

The possibility for widespread outages reflects how power grids in California and other states are becoming more vulnerable to climate-related disasters such as heat waves, storms and wildfires across California.

California, which has set a goal to transition to 100% carbon-free electricity by 2045, has shuttered a slew of gas power plants in the past few years, leaving the state increasingly dependent on solar energy.

At times, the state has produced a clean energy surplus during peak solar generation, underscoring the challenges of balancing supply and demand.

The megadrought in the American West has generated the driest two decades in the region in at least 1,200 years, and human-caused climate change has fueled the problem, scientists said earlier this year. Conditions will likely continue through 2022 and persist for years.

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PG&E Wildfire Assistance Program offers court-approved aid and emergency grants for Northern California wildfires and Camp Fire victims, covering unmet needs, housing, and essentials; apply online by November 15, 2019 under Chapter 11-funded eligibility.

Key Points

A $105M, court-approved aid fund offering unmet-needs payments and emergency support for 2017-2018 wildfire victims.

✅ $5,000 Basic Unmet Needs per household, self-certified

✅ Supplemental aid for extreme circumstances after basic grants

✅ Apply online; deadline November 15, 2019; identity required

Beginning today, August 15, 2019, those displaced by the 2017 Northern California wildfires and 2018 Camp fire can apply for aid through an independently administered Wildfire Assistance Program funded by Pacific Gas and Electric Company (PG&E). PG&E’s $105 million fund, approved by the judge in PG&E’s Chapter 11 cases and related bankruptcy plan, is intended to help those who are either uninsured or need assistance with alternative living expenses or other urgent needs. The court-approved independent administrator is set to file the eligibility criteria as required by the court and will open the application process.

“Our goal is to get the money to those who most need it as quickly as possible. We will prioritize wildfire victims who have urgent needs, including those who are currently without adequate shelter,” said Cathy Yanni, plan administrator. Yanni is partnering with local agencies and community organizations to administer the fund, and PG&E also supports local communities through property tax contributions to counties.

“We appreciate the diligent work of the fund administrator in quickly establishing a way to distribute these funds and ensuring the program supports those with the most immediate needs. PG&E is focused on helping those impacted by the devastating wildfires in recent years and strengthening our energy system to reduce wildfire risks and prevent utility-caused catastrophic fires. We feel strongly that helping these communities now is the right thing to do,” said Bill Johnson, CEO and President of PG&E Corporation.

Applicants can request a “Basic Unmet Needs” payment of $5,000 per household for victims who establish basic eligibility requirements and self-certify that they have at least $5,000 of unmet needs that have not been compensated by the Federal Emergency Management Agency (FEMA). Payments are to support needs such as water, food, prescriptions, medical supplies and equipment, infant formula and diapers, personal hygiene items, and transportation fuels beyond what FEMA covered in the days immediately following the declared disasters, aligning with broader health and safety actions the company has taken.

Those who receive basic payments may also qualify for a “Supplemental Unmet Needs” payment. These funds will be available only after “Basic Unmet Needs” payments have been issued. Supplemental payments will be available to individuals and families who currently face extreme or extraordinary circumstances as compared to others who were impacted by the 2017 and 2018 wildfires, including areas affected by power line-related fires across California.

To qualify for the payments, applicants’ primary residence must have been within the boundary of the 2017 Northern California wildfires or the 2018 Camp fire in Butte County. Applicants also must establish proof of identity and certify that they are not requesting payments for an expense already paid for by FEMA.

Applicants can find more information and apply for assistance at https://www.norcalwildfireassistanceprogram.com/. The deadline to file for aid is November 15, 2019.

The $105 million being provided by PG&E was made available from the company’s cash reserves. PG&E will not seek cost recovery from its customers, and its rates are set to stabilize in 2025 according to recent guidance.

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Honda Canada EV Supply Chain accelerates electric vehicles with Ontario assembly, battery manufacturing, CAM/pCAM and separator plants in Alliston, creating green jobs, strengthening domestic manufacturing, and reducing greenhouse gas emissions across North America.

Key Points

A $15B Ontario initiative for end-to-end EVs, batteries, and components, creating jobs and cutting emissions.

✅ Alliston EV assembly and battery plants anchor production.

✅ CAM/pCAM and separator facilities via POSCO, Asahi JV.

✅ $15B build-out drives jobs, R&D, and lower emissions.

The electric vehicle (EV) revolution is gaining momentum in Canada, with Honda Canada announcing a historic $15 billion investment to establish the country's first comprehensive EV supply chain in Ontario. This ambitious project promises to create thousands of new jobs, solidify Canada's position in the EV market, and significantly reduce greenhouse gas emissions.

Honda's Electrifying Vision

The centerpiece of this initiative is a brand-new, world-class electric vehicle assembly plant in Alliston, Ontario. This will be Honda's first dedicated EV assembly plant globally, marking a significant shift towards a more sustainable future. Additionally, a standalone battery manufacturing plant will be constructed at the same location, ensuring a reliable and efficient domestic supply of EV batteries.

Beyond Assembly: A Complete Ecosystem

Honda's vision extends beyond just vehicle assembly. The investment also includes the construction of two additional plants dedicated to critical battery components, mirroring activity such as a Niagara Region battery plant in Ontario: a cathode active material and precursor (CAM/pCAM) processing plant and a separator plant. These facilities, established through joint ventures with POSCO Future M Co., Ltd. and Asahi Kasei Corporation, will ensure a comprehensive in-house EV production capability.

Jobs, Growth, and a Greener Future

This large-scale project is expected to create significant economic benefits for Ontario. The construction and operation of the new facilities are projected to generate over one thousand well-paying manufacturing jobs, similar to GM's Ontario EV plant announcements that underscore employment gains across the province. Additionally, the investment will stimulate growth within Ontario's leading auto parts supplier and research and development ecosystems, bolstered by government-backed EV plant upgrades that reinforce local supply chains, creating even more indirect job opportunities.

But the benefits extend beyond the economy. The transition to electric vehicles plays a crucial role in combating climate change. By bringing EV production onshore, Honda Canada is contributing to a significant reduction in greenhouse gas emissions, aligning with Canada's ambitious climate goals for transportation.

A Catalyst for Change

Honda's investment is a significant vote of confidence in Canada's potential as a leader in the EV industry, as recent EV manufacturing deals put the country in the race. The establishment of this comprehensive EV supply chain will not only benefit Honda, but also attract other EV manufacturers and solidify Ontario's position as a North American EV hub.

The road ahead for Canada's EV industry is bright. With Honda's commitment and this groundbreaking project, and with Ford's Oakville EV plans underway, Canada is well on its way to a cleaner, more sustainable future powered by electric vehicles.

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Nordic Power Grid Dispute highlights cross-border interconnector congestion, curtailed exports and imports, hydropower priorities, winter demand spikes, rising spot prices, and transmission grid security amid decarbonization efforts across Sweden, Norway, Finland, and Denmark.

Key Points

A clash over interconnectors and capacity cuts reshaping trade, prices, and reliability in the Nordic power market.

✅ Sweden cuts interconnector capacity to protect grid stability

✅ Norway prioritizes higher-priced exports via new cables

✅ Finland and Denmark seek EU action on capacity curtailments

A spat over electricity supplies is heating up in northern Europe. Sweden is blocking Norway from using its grids to transfer power from producers throughout the region. That’s angered Norway, which in turn has cut flows to its Nordic neighbor.

The dispute has built up around the use of cross-border power cables, which are a key part of Europe’s plans to decarbonize since they give adjacent countries access to low-carbon resources such as wind or hydropower. The electricity flows to wherever prices are higher, informed by how electricity is priced across Europe, without interference from grid operators -- but in the event of a supply squeeze, flows can be stopped.

Sweden moved to safeguard the security of its grid after Norway started increasing electricity exports through huge new cables to Germany and the U.K. Those exports at times have drawn energy away from Sweden, resulting in the country’s system operator cutting capacity at its Nordic borders, preventing exports but also hindering imports, which it relies on to handle demand spikes during winter.

“This is not a good situation in the long run,” Christian Holtz, a energy market consultant for Merlin & Metis AB.

Norway hit back last week by cutting flows to Sweden, this will prioritize better paying customers in Europe, amid Irish price spikes that highlight dispatchable shortages, giving them access to its vast hydro resources at the expense of its Nordic neighbors. 

By partially closing its borders Sweden can’t access imports either, which it relies on to handle demand spikes during the coldest days of the winter. 

In Denmark, unusual summer and autumn winds have at times delivered extraordinarily low electricity prices that ripple through regional markets.

The Swedish grid manager Svenska Kraftnat has reduced export capacity at cables across its borders by as much as half this year to keep operations secure. Finland and Denmark rely on imports too and the cuts will come at a cost for millions of homes and industries across the four nations already contending with record electricity rates this year. 

Finland and Denmark want the European Union to end the exemption to regulations that make such reductions possible in the first place, as Europe is losing nuclear power and facing tighter supply.

“Imports from our neighboring countries ensure adequacy at times of peak consumption,” said Reima Paivinen, head of operation at the Finland’s Fingrid. “The recent surge in electricity prices throughout Europe does not directly affect the adequacy of electricity, but prices may rise dramatically for short periods.”

Svenska Kraftnat says it’s not political -- it has no choice but to cut capacity until its old grids are expanded to handle the new direction of flows, a challenge mirrored by grid expansion woes in Germany that slow integration. That could take at least until 2030 to complete, it said earlier this year. At the same time, Norway halving available export capacity to about 1,200 megawatts will increase risk of shortages. 

“If we need more we will have to count on imports from other countries,” said Erik Ek, head of strategic operation at Svenska Kraftnat. “If that is not available, we will have to disconnect users the day it gets cold.”

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