FPL Energy files to build in Texas

By South Florida Business Journal


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A subsidiary of FPL Energy LLC has filed an application with Texas regulators to establish a new regulated utility business unit to construct, own and operate transmission facilities in Texas.

The Juno Beach-based company said it has asked the Public Utility Commission of Texas (PUC) for a certificate of convenience and necessity for a unit to serve the Dallas/Fort Worth metroplex and other regions throughout Texas.

Under FPL Energy's plan, its Lone Star Transmission subsidiary would build, own and operate a 180- to 200-mile, high-voltage direct current open access transmission line to bring renewable energy resources such as wind from west Texas to the Dallas/Fort Worth area.

Dubbed the DFW Express, the new transmission line would have a 2,000-megawatt capacity and stretch from near Abilene to the Dallas/Fort Worth load center.

FPL Energy estimated the cost of the DFW Express at $635 million to $655 million. Lone Star Transmission said it believes the transmission line can be constructed in less than three years from the date a certificate of convenience and necessity for the facility is approved by the Texas PUC.

In a statement from FPL Energy, Texas State Rep. Susan King said Texans need new, clean power generation resources to meet growing energy demand and West Texas is an ideal area for growth.

"The DFW Express proposal, if approved by the Texas PUC, positions west Texas for significant economic development from clean and renewable wind power," she said. "The project will create new jobs and add hundreds of millions of dollars of infrastructure in the region."

FPL Energy, through its subsidiaries, invested nearly $1 billion in Texas in 2006 and currently has 11 wind farms in operation in the state. The net capacity is more than 1,600 megawatts, capable of generating electricity for more than 400,000 Texas homes.

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Is The Global Energy Transition On Track?

Global Decarbonization Strategies align renewable energy, electrification, clean air policies, IMO sulfur cap, LNG fuels, and the EU 2050 roadmap to cut carbon intensity and meet Paris Agreement targets via EVs and efficiency.

 

Key Points

Frameworks that cut emissions via renewables, EVs, efficiency, cleaner marine fuels, and EU policy roadmaps.

✅ Renewables scale as wind and solar outcompete new coal and gas.

✅ Electrification of transport grows as EV costs fall and charging expands.

✅ IMO 2020 sulfur cap and LNG shift cut shipping emissions and particulates.

 

Are we doing enough to save the planet? Silly question. The latest prognosis from the United Nations’ Intergovernmental Panel on Climate Change made for gloomy reading. Fundamental to the Paris Agreement is the target of keeping global average temperatures from rising beyond 2°C. The UN argues that radical measures are needed, and investment incentives for clean electricity are seen as critical by many leaders to accelerate progress to meet that target.

Renewable power and electrification of transport are the pillars of decarbonization. It’s well underway in renewables - the collapse in costs make wind and solar generation competitive with new build coal and gas.

Renewables’ share of the global power market will triple by 2040 from its current level of 6% according to our forecasts.

The consumption side is slower, awaiting technological breakthrough and informed by efforts in countries such as New Zealand’s electricity transition to replace fossil fuels with electricity. The lower battery costs needed for electric vehicles (EVs) to compete head on and displace internal combustion engine (ICE)  cars are some years away. These forces only start to have a significant impact on global carbon intensity in the 2030s. Our forecasts fall well short of the 2°C target, as does the IEA’s base case scenario.

Yet we can’t just wait for new technology to come to the rescue. There are encouraging signs that society sees the need to deal with a deteriorating environment. Three areas of focus came out in discussion during Wood Mackenzie’s London Energy Forum - unrelated, different in scope and scale, each pointing the way forward.

First, clean air in cities.  China has shown how to clean up a local environment quickly. The government reacted to poor air quality in Beijing and other major cities by closing older coal power plants and forcing energy intensive industry and the residential sector to shift away from coal. The country’s return on investment will include a substantial future health care dividend.

European cities are introducing restrictions on diesel cars to improve air quality. London’s 2017 “toxicity charge” is a precursor of an Ultra-Low Emission Zone in 2019, and aligns with UK net-zero policy changes that affect transport planning, to be extended across much of the city by 2020. Paris wants to ban diesel cars from the city centre by 2025 and ICE vehicles by 2030. Barcelona, Madrid, Hamburg and Stuttgart are hatching similar plans.

 

College Promise In California: Community-Wide Efforts To Support Student Success

Second, desulphurisation of global shipping. High sulphur fuel oil (HSFO) meets around 3.5 million barrels per day (b/d) of the total marine market of 5 million b/d. A maximum of 3.5% sulphur content is allowed currently. The International Maritime Organisation (IMO) implements a 0.5% limit on all shipping in 2020, dramatically reducing the release of sulphur oxides into the atmosphere.

Some ships will switch to very low sulphur fuel oil, of which only around 1.4 million b/d will be available in 2020. Others will have to choose between investing in scrubbers or buying premium-priced low sulphur marine gas oil.

Longer-term, lower carbon-intensity gas is a winner as liquefied natural gas becomes fuel of choice for many newbuilds. Marine LNG demand climbs from near zero to 50 million tonnes per annum (tpa) by 2040 on our forecasts, behind only China, India and Japan as a demand centre. LNG will displace over 1 million b/d of oil demand in shipping by 2040.

Third, Europe’s radical decarbonisation plans. Already in the vanguard of emissions reductions policy, the European Commission is proposing to reduce carbon emissions for new cars and vans by 30% by 2030 versus 2020. The targets come with incentives for car manufacturers linked to the uptake of EVs.

The 2050 roadmap, presently at the concept stage, envisages a far more demanding regime, with EU electricity plans for 2050 implying a much larger power system. The mooted 80% reduction in emissions compared with 1990 will embrace all sectors. Power and transport are already moving in this direction, but the legacy fuel mix in many other sectors will be disrupted, too.

Near zero-energy buildings and homes might be possible with energy efficiency improvements, renewables and heat pumps. Electrification, recycling and bioenergy could reduce fossil fuel use in energy intensive sectors like steel and aluminium, and Europe’s oil majors going electric illustrates how incumbents are adapting. Some sectors will cite the risk decarbonisation poses to Europe’s global competitiveness. If change is to come, industry will need to build new partnerships with society to meet these targets.

The 2050 roadmap signals the ambition and will be game changing for Europe if it is adopted. It would provide a template for a global roll out that would go a long way toward meeting UN’s concerns.

 

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Electricity is civilization": Winter looms over Ukraine battlefront

Ukraine Power Grid Restoration accelerates across liberated Kharkiv, restoring electricity, heat, and water amid missile and drone strikes, demining operations, blackouts, and winterization efforts, showcasing resilience, emergency repairs, and critical infrastructure recovery.

 

Key Points

Ukraine's rapid push to repair war-damaged grids, restore heat and water, and stabilize key services before winter.

✅ Priority repairs restore electricity and water in liberated Kharkiv.

✅ Crews de-mine lines and work under shelling, drones, and missiles.

✅ Winterization adds generators, mobile stoves, and large firewood supplies.

 

On the freshly liberated battlefields of northeast Ukraine, a pile of smashed glass windows outside one Soviet-era block of apartments attests to the violence of six months of Russian occupation, and of Ukraine’s sweeping recent military advances.

Indoors, in cramped apartments, residents lived in the dark for weeks on end.

Now, with a hard winter looming, they marvel at the speed and urgency with which Ukrainian officials have restored another key ingredient to their survival: electric power, a critical effort to keep the lights on this winter across communities.

Among those things governments strive to provide are security, opportunity, and minimal comfort. With winter approaching, and Russia targeting Ukraine’s infrastructure, add to that list heat and light, even as Russia hammers power plants nationwide. It’s requiring a concerted effort.

“Thank God it works! Electricity is civilization – it is everything,” says Antonina Krasnokutska, a retired medical worker, looking affectionately at the lightbulb that came on the day before, and now burns again in her tiny spotless kitchen.

“Without electricity there is no TV, no news, no clothes washing, no charging the phone,” says Ms. Krasnokutska, her gray hair pulled back and a small crucifix around her neck.

“Before, it was like living in the Stone Age,” says her grown son, Serhii Krasnokutskyi, who is more than a head taller. “As soon as it got dark, everyone would go to sleep.”

He shows a picture on his phone from a few days earlier, of a tangle of phone and computer charging cables – including his – plugged in at a local shop with a generator.

“We are very grateful for the people who repaired this electricity, even with shelling continuing,” he says. “They have a very complicated job.”

Indeed, although a lack of power might have been a novel inconvenience during the warm summer season, it increasingly has become a matter of great urgency for Ukrainian citizens and officials.

Coping through Ukraine’s winter with dignity and any degree of security will require courage and perseverance, as the severity and suffering that the season can bring here are being weaponized by Russia, as it seeks to compensate for a string of battlefield losses.

In recent days, Russian attacks have specifically targeted Ukraine’s electrical and other civilian infrastructure – all with the apparent aim of making this winter as hard as possible for Ukrainians, even as Moscow employs other measures to spread the hardship across Europe, while Ukraine helps Spain amid blackouts through grid support.

Ukrainian President Volodymyr Zelenskyy said Monday that Russian barrages across the country with missiles and Iran-supplied kamikaze drones had destroyed 30% of Ukraine’s power stations in the previous eight days, including strikes on western Ukraine that caused outages. Thousands of towns have been left without electricity.

Kharkiv’s challenges
Emblematic of the national challenge is the one facing officials in the northeast Kharkiv region, where Ukraine recaptured more than 3,000 square miles in a September counteroffensive. Ukrainian forces are still making gains on that front, as well as in the south toward Kherson, where Wednesday Russia started evacuating civilians from the first major city it occupied, after launching its three-pronged invasion last February.

Across the Kharkiv region, Ukrainians are stockpiling as much wood, fuel, and food as possible while they still can, and adopting new energy solutions as they prepare, from sources as diverse as the floorboards of destroyed schools and the pine forests in Izium, which are pockmarked with abandoned Russian trenches adjacent to a mass burial site.

“Of course, we have this race against time,” says Serhii Mahdysyuk, the Kharkiv regional director in charge of housing, services, fuel, and energy. “Unfortunately, we probably stand in front of the biggest challenge in Ukraine.”

That is not only because of the scale of liberated territory, he says, but also because the Kharkiv region shares a long border with Russia, as well as with the Russian-controlled areas of the eastern Donbas.

“It’s a great mixture of all threats, and we are sure that shelling and bombings will continue, but we are ready for this,” says Mr. Mahdysyuk. “We know our weak spots that Russia can destroy, but we are prepared for what to do in these situations.”

Ukraine’s battlefield gains have meant a surging need to pick up the pieces after Russian occupation, even as electricity reserves are holding if no new strikes occur, to ensure habitable conditions as more and more surviving residents require services, and as others return to scenes of devastation.

Restoring electricity is the top priority, amid shifting international assistance such as the end of U.S. grid support, because that often restarts running water, too, says Mr. Mahdysyuk. But before that, the area beneath broken power lines must be de-mined.

Indeed, members of an electricity team reconnecting cables on the outskirts of Balakliia – one of the first towns to see power restored, at the end of September – say they lost two fellow workers in the previous two weeks. One died after stepping on an anti-personnel mine, another when his vehicle hit an anti-tank device.

Ukrainian electricity workers restore power lines damaged during six months of Russian military occupation in Balakliia, Ukraine, Sept. 29, 2022. Ukrainians in liberated territory say the restoration of the electrical grid, and with it often the water supply, is a return to civilization.
“For now, our biggest problem is mines,” says the team leader, who gave the name Andrii. “It’s fine within the cities, but in the fields it’s a disaster because it’s very difficult to see them. There is a lot of [them] around here – it will take years and years to get rid of.”

Yet officials only have a few weeks to execute plans to provide for hundreds of thousands of residents in this region, in their various states of need and distress. Some 50 field kitchens capable of feeding 200 to 300 people each have been ordered. Another 1,000 mobile stoves are on their way.

And authorities will provide nearly 200,000 cubic yards of firewood for those who have no access to it, and may have no other means of keeping warm – or where shelling continues to disrupt repairs, says Mr. Mahdysyuk.

“The level of opportunity and resources we have is not the same as the level of destruction,” he says. People in districts and buildings too destroyed to have services restored soon, such as in Saltivka in Kharkiv city, may be moved.

 

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Cheap at Last, Batteries Are Making a Solar Dream Come True

Solar Plus Storage is accelerating across utilities and microgrids, pairing rooftop solar with lithium-ion batteries to enhance grid resilience, reduce peak costs, prevent blackouts, and leverage tax credits amid falling prices and decarbonization goals.

 

Key Points

Solar Plus Storage combines solar generation with batteries to shift load, boost reliability, and cut energy costs.

✅ Cuts peak demand charges and enhances blackout resilience

✅ Falling battery and solar costs drive nationwide utility adoption

✅ Enables microgrids and grid services like frequency regulation

 

Todd Karin was prepared when California’s largest utility shut off power to millions of people to avoid the risk of wildfires last month. He’s got rooftop solar panels connected to a single Tesla Powerwall in his rural home near Fairfield, California. “We had backup power the whole time,” Karin says. “We ran the fridge and watched movies.”

Californians worried about an insecure energy future are increasingly looking to this kind of solution. Karin, a 31-year-old postdoctoral fellow at Lawrence Berkeley National Laboratory, spent just under $4,000 for his battery by taking advantage of tax credits. He's also saving money by discharging the battery on weekday evenings, when energy is more expensive during peak demand periods. He expects to save around $1,500 over the 10 years the battery is under warranty.

The economics don’t yet work for every household, but the green-power combo of solar panels plus batteries is popping up on a much bigger scale in some unexpected places. Owners of a rice processing plant in Arkansas are building a system to generate 26 megawatts of solar power and store another 40 MW. The plant will cut its power bill by a third, and owners say they will pass the savings to local rice growers. New York’s JFK Airport is installing solar plus storage to reduce its power load by 10 percent, while Pittsburgh International Airport is building a 20-MW solar and natural gas microgrid to keep it independent from the local utility. Officials at both airports are worried about recent power shutdowns due to weather and overload-related blackouts.

And residents of the tiny northern Missouri town of Green City (pop. 608) are getting 2.5 MW of solar plus four hours of battery storage from the state’s public utility next year. The solar power won’t go directly to townspeople, but instead will back up the town’s substation, reducing the risk of a potential shutdown. It’s part of a $68 million project to improve the reliability of remote substations far from electric generating stations.

“It’s a pretty big deal for us,” says Chad Raley, who manages technology and renewables at Ameren, a Missouri utility that is building three rural solar-plus-storage projects to better manage the flow of electricity across the local grid. “It gives us so much flexibility with renewable generation. We can’t control the sun or clouds or wind, but we can have battery storage.”

The first solar-plus-storage installations started about a decade ago on a small scale in sunny states like California, Hawaii, and Arizona. Now they’re spreading across the country, driven by falling prices of both solar panels and lithium-ion batteries the size of a shipping container imported from both China and South Korea, with wind, solar, and batteries making up most of the utility-scale pipeline nationwide. These countries have ramped up production efficiencies and lowered labor costs, leaving many US manufacturers in the dust. In fact, the price of building a comparable solar-plus-storage generating facility is now cheaper than operating a coal-fired power plant, industry officials say. In certain circumstances, the cost is equal to some natural gas plants.

“This is not just a California, New York, Massachusetts thing,” says Kelly Speakes-Backman, CEO of the Energy Storage Association, an industry group in Washington. She says more than 30 states have renewable storage on the grid. Utilities have proposed and states have approved 7 gigawatts to be installed by 2030, and most new storage will be paired with solar across the US.

Speakes-Backman estimates the unit cost of electricity produced from a solar-plus-storage system will drop 10 to 15 percent each year through 2024, supporting record growth in solar and storage investments. “If you have the option of putting out a polluting or non-polluting generating source at the same price, what are you going to pick?” says Speakes-Backman.

She notes that PJM, a large Mid-Atlantic wholesale grid operator, announced it will deploy battery storage to help smooth out fluctuating power from two wind farms it operates. “When the grid fluctuates, storage can react to it quickly and can level out the supply,” she says. In the Midwest, grid-level battery storage is also being used to absorb extra wind power. Batteries hold onto the wind and put it back onto the grid when people need it.

While the solar-plus-storage trend isn’t yet putting a huge dent in our fossil fuel use, according to Paul Denholm, an energy analyst at the National Renewable Energy Laboratory in Golden, Colorado, it is a good beginning and has the side effect of cutting air pollution. By 2021, solar and other renewable energy sources will overtake coal as a source of energy, and the US is moving toward 30% electricity from wind and solar, according to a new report by the Institute for Energy Economics and Financial Analysis, a nonprofit think tank based in Cleveland.

That’s a glimmer of hope in a somewhat dreary week of news on carbon emissions. A new United Nations report released this week finds that the planet is on track to warm by 3.9 degrees Celsius (7 Fahrenheit) by 2100 unless drastic cuts are made by phasing out gas-powered cars, eliminating new coal-fired power plants, and changing how we grow and manage land, and scientists are working to improve solar and wind power to limit climate change as well.

Energy-related greenhouse gas emissions in the US rose 2.7 percent in 2018 after several years of decline. The Trump administration has rolled back climate policies from the Obama years, including withdrawing from the Paris climate accords.

There may be hope from green power initiatives outside the Beltway, though, and from federal proposals like a tenfold increase in US solar that could remake the electricity system. Arizona plans to boost solar-plus-storage from today’s 6 MW to a whopping 850 MW by 2025, more than the entire capacity of large-scale batteries in the US today. And some folks might be cheering the closing of the West’s biggest coal-fired power plant, the 2.25-gigawatt Navajo Generating Station, in Arizona, which had spewed soot and carbon dioxide over the region for 45 years until last week. The closure might help the planet and clear the hazy smog over the Grand Canyon.

 

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Freezing Rain Causes Widespread Power Outages in Quebec

Quebec Ice Storm 2025 disrupted power across Laurentians and Lanaudiere as freezing rain downed lines; Hydro-QuE9bec crews accelerated grid restoration, emergency response, and infrastructure resilience amid ongoing outages and severe weather alerts.

 

Key Points

Quebec Ice Storm 2025 brought freezing rain, outages, and grid damage, hitting Laurentians and Lanaudiere hardest.

✅ Peak: 62,000 Hydro-QuE9bec customers without electricity

✅ Most outages in Laurentians and Lanaudiere regions

✅ Crews repairing lines; restoration updates ongoing

 

A significant weather event struck Quebec in late March 2025, as a powerful ice storm caused widespread power outages across the province. The storm led to extensive power outages, affecting tens of thousands of residents, particularly in the Lanaudière and Laurentians regions. ​

Impact on Power Infrastructure

The freezing rain accumulated on power lines and vegetation, leading to numerous power outages across the network. Hydro-Québec reported that at its peak, over 62,000 customers were without electricity, with the majority of outages concentrated in the Laurentians and Lanaudière regions. By the afternoon, the number decreased to approximately 30,000, and further to just under 18,500 by late afternoon. 

Comparison with Previous Storms

While the March 2025 ice storm caused significant disruptions, it was less severe compared to the catastrophic ice storm of April 2023, which left 1.1 million Hydro-Québec customers without power. Nonetheless, the 2025 storm's impact was considerable, leading to the closure of municipal facilities and posing challenges for local economies, a pattern echoed when Toronto outages persisted for hundreds after a spring storm.

Ongoing Challenges

As of April 1, 2025, some areas continued to experience power outages, and incidents such as a manhole fire left thousands without service in separate cases. Hydro-Québec and municipal authorities worked diligently to restore services and address the aftermath of the storm, while Hydro One crews restored power to more than 277,000 customers after damaging storms in Ontario. Residents were advised to stay updated through official channels for restoration timelines and safety information.

Future Preparedness

The recurrence of such severe weather events highlights the importance of robust infrastructure and emergency preparedness, as seen in BC Hydro's storm response to an 'atypical' event that demanded extensive coordination. Both utility companies and residents must remain vigilant, especially during seasons prone to unpredictable weather patterns, with local utilities like Sudbury Hydro crews working to reconnect service after regional storms.

 

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Electric Cooperatives, The Lone Shining Utility Star Of The Texas 2021 Winter Storm

Texas Electric Cooperatives outperformed during Winter Storm Uri, with higher customer satisfaction, equitable rolling blackouts, and stronger grid reliability compared to deregulated markets, according to ERCOT-area survey data of regulated utilities and commercial providers.

 

Key Points

Member-owned utilities in Texas delivering power, noted for reliability and fair outages during Winter Storm Uri.

✅ Member-owned, regulated utilities serving local communities

✅ Rated higher for blackout management and communication

✅ Operate outside deregulated markets; align incentives with users

 

Winter Storm Uri began to hit parts of Texas on February 13, 2021 and its onslaught left close to 4.5 million Texas homes and businesses without power, and many faced power and water disruptions at its peak. By some accounts, the preliminary number of deaths attributed to the storm is nearly 200, and the economic toll for the Lone Star State is estimated to be as high as $295 billion. 

The more than two-thirds of Texans who lost power during this devastating storm were notably more negative than positive in their evaluation of the performance of their local electric utility, mirrored by a rise in electricity complaints statewide, with one exception. That exception are the members of the more than 60 electric cooperatives operating within the Texas Interconnection electrical grid, which, in sharp contrast to the customers of the commercial utilities that provide power to the majority of Texans, gave their local utility a positive evaluation related to its performance during the storm.

In order to study Winter Storm Uri’s impact on Texas, the Hobby School of Public Affairs at the University of Houston conducted an online survey during the first half of March of residents 18 and older who live in the 213 counties (91.5% of the state population) served by the Texas power grid, which is managed by the Electric Reliability Council of Texas (ERCOT). 

Three-quarters of the survey population (75%) live in areas with a deregulated utility market, where a specified transmission and delivery utility by region is responsible for delivering the electricity (purchased from one of a myriad of private companies by the consumer) to homes and businesses. The four main utility providers are Oncor, CenterPoint CNP -2.2%, American Electric Power (AEP) North, and American Electric Power (AEP) Central. 

The other 25% of the survey population live in areas with regulated markets, where a single company is responsible for both delivering the electricity to homes and businesses and serves as the only source from which electricity is purchased. Municipal-owned and operated utilities (e.g., Austin Energy, Bryan Texas Utilities, Burnet Electric Department, Denton Municipal Electric, New Braunfels Utilities, San Antonio’s CPS Energy CMS -2.1%) serve 73% of the regulated market. Electric cooperatives (e.g., Bluebonnet Electric Cooperative, Central Texas Electric Cooperative, Guadalupe Valley Cooperative, Lamb County Electric Cooperative, Pedernales Electricity Cooperative, Wood County Electric Cooperative) serve one-fifth of this market (21%), with private companies accounting for 6% of the regulated market.

The overall distribution of the survey population by electric utility providers is: Oncor (38%), CenterPoint (21%), municipal-owned utilities (18%), AEP Central & AEP North combined (12%), electric cooperatives (6%), other providers in the deregulated market (4%) and other providers in the regulated market (1%). 

There were no noteworthy differences among the 31% of Texans who did not lose power during the winter storm in regard to their evaluations of their local electricity provider or their belief that the power cuts in their locale were carried out in an equitable manner.  

However, among the 69% of Texans who lost power, those served by electric cooperatives in the regulated market and those served by private electric utilities in the deregulated market differed notably regarding their evaluation of the performance of their local electric utility, both in regard to their management of the rolling blackouts, amid debates over market reforms to avoid blackouts, and to their overall performance during the winter storm. Those Texans who lost power and are served by electric cooperatives in a regulated market had a significantly more positive evaluation of the performance of their local electric utility than did those Texans who lost power and are served by a private company in a deregulated electricity market. 

For example, only 24% of Texans served by electric cooperatives had a negative evaluation of their local electric utility’s overall performance during the winter storm, compared to 55%, 56% and 61% of those served by AEP, Oncor and CenterPoint respectively. A slightly smaller proportion of Texans served by electric cooperatives (22%) had a negative evaluation of their local electric utility’s performance managing the rolling blackouts during the winter storm, compared to 58%, 61% and 71% of Texans served by Oncor, AEP and CenterPoint, respectively.

Texans served by electric cooperatives in regulated markets were more likely to agree that the power cuts in their local area were carried out in an equitable manner compared to Texans served by commercial electricity utilities in deregulated markets. More than half (52%) of those served by an electric cooperative agreed that power cuts during the winter storm in their area were carried out in an equitable manner, compared to only 26%, 23% and 23% of those served by Oncor, AEP and CenterPoint respectively

The survey data did not allow us to provide a conclusive explanation as to why the performance during the winter storm by electric cooperatives (and to a much lesser extent municipal utilities) in the regulated markets was viewed more favorably by their customers than was the performance of the private companies in the deregulated markets viewed by their customers. Yet here are three, far from exhaustive, possible explanations.

First, electric cooperatives might have performed better (based on objective empirical metrics) during the winter storm, perhaps because they are more committed to their customers, who are effectively their bosses. .  

Second, members of electric cooperatives may believe their electric utility prioritizes their interests more than do customers of commercial electric utilities and therefore, even if equal empirical performance were the case, are more likely to rate their electric utility in a positive manner than are customers of commercial utilities.  

Third, regulated electric utilities where a single entity is responsible for the commercialization, transmission and distribution of electricity might be better able to respond to the type of challenges presented by the February 2021 winter storm than are deregulated electric utilities where one entity is responsible for commercialization and another is responsible for transmission and distribution, aligning with calls to improve electricity reliability across Texas.

Other explanations for these findings may exist, which in addition to the three posited above, await future empirical verification via new and more comprehensive studies designed specifically to study electric cooperatives, large commercial utilities, and the incentives that these entities face under the regulatory system governing production, commercialization and distribution of electricity, including rulings that some plants are exempt from providing electricity in emergencies under state law. 

Still, opinion about electricity providers during Winter Storm Uri is clear: Texans served by regulated electricity markets, especially by electric cooperatives, were much more satisfied with their providers’ performance than were those in deregulated markets. Throughout its history, Texas has staunchly supported the free market. Could Winter Storm Uri change this propensity, or will attempts to regulate electricity lessen as the memories of the storm’s havoc fades? With a hotter summer predicted to be on the horizon in 2021 and growing awareness of severe heat blackout risks, we may soon get an answer.   

 

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Experts warn Albertans to lock in gas and electricity rates as prices set to soar

Alberta Energy Price Spike signals rising electricity and natural gas costs; lock in fixed rates as storage is low, demand surged in heat waves, and exports rose after Hurricane Ida, driving volatility and higher futures.

 

Key Points

An anticipated surge in Alberta electricity and natural gas prices, urging consumers to lock fixed rates to reduce risk.

✅ Fixed-rate gas near $3.79/GJ vs futures approaching $6/GJ

✅ Low storage after heat waves and U.S. export demand

✅ Switch providers or plans; UCA comparison tool helps

 

Energy economists are warning Albertans to review their gas and electricity bills and lock in a fixed rate if they haven't already done so because prices are expected to spike in the coming months.

"I have been urging anyone who will listen that every single Albertan should be on a fixed rate for this winter," University of Calgary energy economist Blake Shaffer said Monday. "And I say that for both natural gas and power."

Shaffer said people will rightly point out energy costs make up only roughly a third of their monthly bill. The rest of the costs for such things as delivery fees can't be avoided. 

But, he said, "there is an energy component and it is meaningful in terms of savings." 

For example, Shaffer said, when he checked last week, a consumer could sign a fixed rate gas contract for $3.79 a gigajoule and the current future price for gas is nearly $6 a gigajoule.

A typical household would use about 15 gigajoules a month, he said, so a consumer could save $30 to $45 a month for five months. For people on lower or fixed incomes, "that is a pretty significant saving."

Comparable savings can also be achieved with electricity, he said.

Shaffer said research has shown households that are least able to afford sharp increases in gas and electrical bills are less likely to pick up the phone and call their energy provider and either negotiate a lower fixed rate contract or jump to a new provider. 

But, he said, it is definitely worth the time and effort, particularly as Calgary electricity bills are rising across the city. Alberta's Utilities Consumer Advocate has a handy cost comparison tool on its website that allows consumers to conduct regional price comparisons that will assist in making an informed decision.

"Folks should know that for most providers you can change back to a floating rate any time you want," Shaffer said.

Summer heat wave affected natural gas supply
Why are energy prices set to spike in Alberta, which is a major producer of natural gas?

Sophie Simmonds, managing director of the brokerage firm Anova Energy, said Alberta is now generating the majority of its power using natural gas. 

The heat wave in June and July created record electrical demand. Normally, natural gas is stored in the summer for use in the winter. But this year, there was much greater gas consumption in the summer and so less was stored. 

Alberta also set a new electricity usage record during a recent deep freeze, underscoring system stress.

On top of that, Alberta has been exporting much more natural gas to the United States since August and September because Hurricane Ida knocked out natural gas assets in the Gulf of Mexico.

"So what this means is we are actually going into winter with very, very low storage numbers," Simmonds said.

Why natural gas prices have surged to some of their highest levels in years
Canadians to remain among world's top energy users even as government strives for net zero
Consultant Matt Ayres said he believes rising electricity prices also are being affected by Alberta's transition from carbon-intensive fuel sources to less carbon-intensive fuel sources.

"That transition is not always smooth," said Ayres, who is also an adjunct assistant professor at the University of Calgary's School of Public Policy. 

"It is my view that at least some of the price increases we are seeing on electricity comes down to difficulties imposed by that transition and also by a reduction in competition amongst generators, as well as power market overhaul debates shaping policy." 

In 2019, under the leadership of Premier Jason Kenney the UCP government removed the former NDP government's rate cap on electricity at the time.

The NDP has called for the government to reinstate the cap but the UCP government has dismissed that as unsustainable and unrealistic.

 

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