Playing electrical Russian roulette

East-West Transmission Project Ontario connects Thunder Bay to Wawa, facing OEB bidding, Hydro One vs NextBridge, First Nations consultation, environmental assessment, Pukaskwa National Park route, and reliability needs for Northwestern Ontario industry and communities.

Key Points

A 450 km Thunder Bay-Wawa power line proposal facing OEB bidding, Hydro One competition, and First Nations consultation.

✅ Competing bids: Hydro One vs NextBridge under OEB rules

✅ First Nations cite duty to consult and environmental review gaps

✅ Route debate: Pukaskwa Park vs bypass; jobs and reliability at stake

Leaders of six First Nations are urging the Ontario government to "clean up" the bureaucratic process that determines who will build an "urgently needed" high-capacity power transmission line to service northern Ontario.

The proposed 450 kilometre East-West Transmission Project is set to stretch from Thunder Bay to Wawa, providing much-needed electricity to northern Ontario. NextBridge Infrastructure, in partnership with Bamkushwada Limited Partnership (BLP) — an entity the First Nations created in order to become co-owners and active participants in the economic development of the line — have been the main proponents of the project since 2012 and were awarded the right to construct.

In 2018, Hydro One appealed to the previous Liberal government with a proposal to build the transmission line with lower maintenance costs. On Dec. 20, the Ontario Energy Board (OEB) issued a decision that said it will issue the contract to construct the project to the company with the lowest bid, even as a Manitoba Hydro line delay followed a board recommendation in a comparable case.

The transmission regime in Ontario allows competing bids at the beginning of a project to designate a transmitter, and then again at the end of the project to award leave to construct.

As a result, the Hydro One was permitted to submit a competing bid, five years after it was first proposed. The chiefs of the six First Nations say that will delay the project by two years, impede their land and violate their rights. The former Liberal government under which the project was initiated "left the door open" for competition to enter this late in the construction, according to the community leaders.

"The former government created this mess and Hydro One has taken advantage of this loophole," Fort William First Nation Chief Peter Collins said in a Queen's Park news conference on Thursday. "Hydro One is an interloper coming in at the last minute, trying taking over the project and all the hard work that has been done, without doing the work it needs to do."

Mess will explode, says chief

According to Collins, the Ontario Energy Board is likely to choose Hydro One's late submission in February, "causing this mess to explode." The electricity and distribution utility has not completed any of the legal requirements demanded by a project of this magnitude, Collins said, including extensive consultations with First Nations, such as oral traditional evidence hearings that inform regulators, and thorough environment assessments. He speculated that by ignoring these two things, even though in B.C. Ottawa did not oppose a Site C work halt pending a treaty rights challenge, Hydro One's bid will be the lowest cost.

"Hydro One's interference is a big problem," said Collins. He was flanked by the leaders of the Pic Mobert First Nation, Opwaaganasiniing (also known as the Red Rock Indian Band), Michipicoten, Biigtigong Nishnaabeg — or Pic River First Nation — and Pays Plat First Nation.

Collins also highlighted that Hydro One's proposed route for the transmission line will go through Pukaskwa National Park on which there are Aboriginal title claims, and noted that an opponent of the Site C dam has been sharing concerns with northerners, underscoring the need for meaningful engagement. NextBridge's proposal, Collins said, will go around the park.

If Hydro One is awarded the construction project, at risk, too, are as many as 1,000 job opportunities in northern Ontario (including the Ring of Fire) that are expected from NextBridge's proposal, as well as the "many millions" in contracting opportunities for the communities, Collins said.

"That companies such as Hydro One can do this and dissolve all that has been developed by NextBridge and our [partnership] and all the opportunities we have created will signal to ... everyone in Ontario that Ontario's not open for business, at least fair business," Collins said.

Ontario Energy Minister 'disappointed' by OEB's decision

In an email statement to National Observer, Energy Minister Greg Rickford's press secretary said the government acknowledged the concerns of the First Nations leaders, and is "disappointed that the OEB continues to stall on this important project."

"The East-West Tie project is a priority for Ontario because it is needed to provide a reliable and adequate supply of electricity to northwestern Ontario to support economic growth," she wrote.

In October, Rickford wrote to the OEB outlining his expectation that a prompt decision would be made through an efficient and fair process.

Despite the minister’s request, the OEB delayed a decision on this project in December — as in B.C., a utilities watchdog has pressed for answers on Site C dam stability — pushing the service date back to at least 2021. In 2017, NextBridge said that, pending OEB approval, it would start construction in 2018, with completion scheduled for 2020.

Without the transmission line, the community faces a higher likelihood of power outages and less reliable electricity overall.

"Our government takes the duty to consult seriously and it is committed to ensuring that all Indigenous communities are properly consulted and kept informed regardless of the result of the OEB process," Rickford's office's statement said.

In a letter sent to Premier Doug Ford, Rickford and to Environment Minister Rod Phillips, all members of the Bamkushwada Limited Partnership said they will be compelled to appeal the OEB's decision if the right to construct is given to Hydro One.

The entire situation, they wrote in their letter, is "an undeniable mess" that requires government intervention.

"If the Ontario government can correct this looming outcome, it is incumbent on the Ontario government to do so," they wrote, urging the government to "take all legal means to prevent the OEB from rendering an unconstitutional and unjust decision."

"Our First Nations and the north have waited five long years for this transmission project," Collins said. "Enough is enough."

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U.S. Utility Spending Shift highlights rising transmission and distribution costs, grid modernization, and smart meters, while generation expenses decline amid fuel price volatility, capital and labor pressures, and renewable integration across the power sector.

Key Points

A decade-long trend where utilities spend more on delivery and grid upgrades, and less on electricity generation costs.

✅ Delivery O&M, wires, poles, and meters drive rising costs

✅ Generation spending declines amid fuel price changes and PPI

✅ Grid upgrades add reliability, resilience, and renewable integration

Over the past decade, major utilities in the United States have been spending more on delivering electricity to customers and less on producing that electricity, a shift occurring as electricity demand is flat across many regions.

After adjusting for inflation, major utilities spent 2.6 cents per kilowatthour (kWh) on electricity delivery in 2010, using 2020 dollars. In comparison, spending on delivery was 65% higher in 2020 at 4.3 cents/kWh, and residential bills rose in 2022 as inflation persisted. Conversely, utility spending on power production decreased from 6.8 cents/kWh in 2010 (using 2020 dollars) to 4.6 cents/kWh in 2020.

Utility spending on electricity delivery includes the money spent to build, operate, and maintain the electric wires, poles, towers, and meters that make up the transmission and distribution system. In real 2020 dollar terms, spending on electricity delivery increased every year from 1998 to 2020 as utilities worked to replace aging equipment, build transmission infrastructure to accommodate new wind and solar generation amid clean energy transition challenges that affect costs, and install new technologies such as smart meters to increase the efficiency, reliability, resilience, and security of the U.S. power grid.

Spending on power production includes the money spent to build, operate, fuel, and maintain power plants, as well as the cost to purchase power in cases where the utility either does not own generators or does not generate enough to fulfill customer demand. Spending on electricity production includes the cost of fuels including natural gas prices alongside capital, labor, and building materials, as well as the type of generators being built.

Other utility spending on electricity includes general and administrative expenses, general infrastructure such as office space, and spending on intangible goods such as licenses and franchise fees, even as electricity sales declined in recent years.

The retail price of electricity reflects the cost to produce and deliver power, the rate of return on investment that regulated utilities are allowed, and profits for unregulated power suppliers, and, as electricity prices at 41-year high have been reported, these components have drawn increased scrutiny.

In 2021, demand for consumer goods and the energy needed to produce them has been outpacing supply, though power demand sliding in 2023 with milder weather has also been noted. This difference has contributed to higher prices for fuels used by electric generators, especially natural gas. The increased cost for fuel, capital, labor, and building materials, as seen in the U.S. Bureau of Labor Statistics’ Producer Price Index, is increasing the cost of power production for 2021. U.S. average electricity prices have been higher every month of this year compared with 2020, according to our Monthly Electric Power Industry Report.

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2022 U.S. Power Outage Statistics show lower SAIDI as fewer major events hit, with SAIFI trends, electric reliability, outage duration and frequency shaped by hurricanes, winter storms, vegetation, and utility practices across states.

Key Points

They report SAIDI and SAIFI for 2022, showing outage duration, frequency, and impacts of major weather events.

✅ 2022 SAIDI averaged 5.6 hours; SAIFI averaged 1.4 interruptions.

✅ Fewer major events lowered outage duration versus 2021.

✅ Hurricanes and winter storms drove long outages in several states.

In 2022, U.S. electricity consumers on average experienced about 5.5 hours of power disruptions, a decrease from nearly two hours compared to 2021. This information comes from the latest Annual Electric Power Industry Report. The reduction in yearly power interruptions primarily resulted from fewer significant events in 2022 compared to the previous year, and utility disaster planning continues to support grid resilience as severe weather persists.

Since 2013, excluding major events, the annual average duration of power interruptions has consistently hovered around two hours. Factors contributing to major power disruptions include weather-related incidents, vegetation interference near power lines, and specific utility practices, while pandemic-related grid operations influenced workforce planning more than outage frequency. To assess the reliability of U.S. electric utilities, two key indexes are utilized:

• The System Average Interruption Duration Index (SAIDI) calculates the total length (in hours) an average customer endures non-brief power interruptions over a year.
• The System Average Interruption Frequency Index (SAIFI) tracks the number of times interruptions occur.

The influence of major events on electrical reliability is gauged by comparing affected states' SAIDI and SAIFI values against the U.S. average, which was 5.6 hours of outages and 1.4 outages per customer in 2022. The year witnessed 18 weather-related disasters in the U.S., each resulting in over $1 billion in damages, and COVID-19 grid assessments indicated the electricity system was largely safe from pandemic impacts. Noteworthy major events include:

• Hurricane Ian in September 2022, leaving over 2.6 million Floridian customers without electricity, with restoration in some areas taking weeks rather than days.
• Hurricane Nicole in November 2022, causing over 300,000 Florida customers to lose power.
• Winter Storm Elliott in December 2022, affecting over 1.5 million customers in multiple states including Texas where utilities struggled after Hurricane Harvey to restore service, and Florida, and bringing up to four feet of snow in parts of New York.

In 2022, states like Florida, West Virginia, Maine, Vermont, and New Hampshire experienced the most prolonged power interruptions, with New Hampshire averaging 10.3 hours and Florida 19.1 hours, and FPL's Irma storm response illustrates how restoration can take days or weeks in severe cases. Conversely, the District of Columbia, Delaware, Rhode Island, Nebraska, and Iowa had the shortest total interruptions, with the District of Columbia averaging just 34 minutes and Iowa 85 minutes.

The frequency of outages, unlike their duration, is more often linked to non-major events. Across the nation, Alaska recorded the highest number of power disruptions per customer (averaging 3.5), followed by several heavily forested states like Tennessee and Maine. Power outages due to falling tree branches are common, particularly during winter storms that burden tree limbs and power lines, as seen in a North Seattle outage affecting 13,000 customers. The District of Columbia stood out with the shortest and fewest outages per customer.

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EHRC National Occupational Standards accelerate workforce readiness for smart grids, renewable energy, digitalization, and automation, aligning skills, reskilling, upskilling across the electricity sector with a career portal, labour market insights, and emerging jobs.

Key Points

Industry benchmarks from EHRC defining skills, training, and competencies for Canada's evolving electricity workforce.

✅ Aligns skills to smart grids, renewable energy, and automation

✅ Supports reskilling, upskilling, and career pathways

✅ Informs employers with labour market intelligence

Smart grids, renewable electricity generation, automation, carbon capture and storage, and electric vehicles are transforming the traditional electricity industry. Technological innovation is reshaping and reinventing the skills and occupations required to support the electrical grid of the 21st century, even as pandemic-related grid warnings underscore resilience needs.

Canada has been a global leader in embracing and capitalizing on drivers of disruption and will continue to navigate the rapidly changing landscape of electricity by rethinking and reshaping traditional occupational standards and skills profiles.

In an effort to proactively address the needs of our current and future labour market, building on regional efforts like Nova Scotia energy training to enhance participation, Electricity Human Resources Canada (EHRC) is pleased to announce the launch of funding for the new National Occupational Standards (NOS) and Career Portal project. This project will explore the transformational impact of technology, digitalization and innovation on the changing nature of work in the sector.

Through this research a total of 15 National Occupational Standards and Essential Skills Profiles will be revised or developed to better prepare jobseekers, including young Canadians interested in electricity to transition into the electricity sector. Occupations to be covered include:

• Electrical Engineering Technician/ Technologist

• Power Protection and Control Technician/ Technologist

• Power Systems Operator

• Solar Photovoltaic Installer

• Power Station Operator

• Wind Turbine Technician

• Geothermal Heat Pump Installer

• Solar Thermal Installer

• Utilities Project Manager

• Heat Pump Designer

• Small System Designer (Solar)

• Energy Storage Technician

• Smart Grid Specialist

• 2 additional occupations TBD

The labour market intelligence gathered during the research will examine current occupations or job functions facing change or requiring re-skilling or up-skilling, including specialized courses such as arc flash training in Vancouver that bolster safety competencies, as well as entirely emerging occupations that will require specialized skills.

This project is funded in part by the Government of Canada’ Sectoral Initiative Program and supports its goal to address current and future skills shortages through the development and distribution of sector-specific labour market information.

“Canada’s workforce must evolve with the changing economy. This is critical to building the middle class and ensuring continued economic growth. Our government is committed to an evidence-based approach and is focused on helping workers to gain valuable work experience and the skills they need for a fair chance at success. By collaborating with partners like Electricity Human Resources Canada, we can ensure that we are empowering workers today, and planning for the jobs of tomorrow.” – The Honourable Patty Hajdu, Minister of Employment, Workforce Development and Labour

“By encouraging the adoption of new technologies and putting in place the appropriate support for workers, Canada can minimize both skills shortages and technological unemployment. A long-term strategic and national approach to human resource planning and training is therefore critical to ensuring that we continue to maintain the level of growth, reliability, safety and productivity in the system – with a workforce that is truly inclusive and diverse.” – Michelle Branigan, CEO, EHRC.

“The accelerated pace of change in our sector, including advancements in technology and innovation will also have a huge impact on our workforce. We need to anticipate what those impacts will be so employers, employees and job seekers alike can respond to the changing structure of the sector and future job opportunities.” – Jim Kellett, Board Chair, EHRC.

About Electricity Human Resources Canada

EHRC helps to build a better workforce by strengthening the ability of the Canadian electricity industry to meet current and future needs for a highly skilled, safety-focused, diverse and productive workforce by addressing the electrical safety knowledge gap that can lead to injuries.

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NuScale SMR Design Certification marks NRC Phase 6 FSER approval, validating small modular reactor safety and design review, enabling UAMPS deployment at Idaho National Laboratory and advancing DOE partnerships and Canadian vendor assessments.

Key Points

It is the NRC FSER approval confirming NuScale SMR safety design, enabling licensed deployment and vendor reviews.

✅ NRC Phase 6 FSER concludes design certification review

✅ Valid 15 years; enables site-independent licensing

✅ 60 MW modules, up to 12 per plant; UAMPS project at Idaho National Laboratory

US-based NuScale Power announced on 28 August that the US Nuclear Regulatory Commission (NRC) had completed Phase 6 review—the last and final phase—of the Design Certification Application (DCA) for its small modular reactor (SMR) with the issuance of the Final Safety Evaluation Report (FSER).

The FSER represents completion of the technical review and approval of the NuScale SMR design. With this final phase of NuScale’s DCA now complete, customers can proceed with plans to develop NuScale power plants as Ontario breaks ground on first SMR projects advance, with the understanding that the NRC has approved the safety aspects of the NuScale design.

“This is a significant milestone not only for NuScale, but also for the entire US nuclear sector and the other advanced nuclear technologies that will follow,” said NuScale chairman and CEO John Hopkins.

“The approval of NuScale’s design is an incredible accomplishment and we would like to extend our deepest thanks to the NRC for their comprehensive review, to the US Department of Energy (DOE) for its continued commitment to our successful private-public partnership to bring the country’s first SMR to market, and to the many other individuals who have dedicated countless hours to make this extraordinary moment a reality,” he added. “Additionally, the cost-shared funding provided by Congress over the past several years has accelerated NuScale’s advancement through the NRC Design Certification process.”

NuScale’s design certification application was accepted by the NRC in March 2017. NuScale spent over $500 million, with the backing of Fluor, and over 2 million hours to develop the information needed to prepare its DCA application, an effort that, similar to Rolls-Royce’s MoU with Exelon, underscores private-sector engagement to advance nuclear innovation. The company also submitted 14 separate Topical Reports in addition to the over 12,000 pages for its DCA application and provided more than 2 million pages of supporting information for NRC audits.

NuScale’s SMR is a fully factory-fabricated, 60MW power module based on pressurised water reactor technology. The scalable design means a power plant can house up to 12 individual power modules, and jurisdictions like Ontario have announced plans for four SMRs at Darlington to leverage modularity.

The NuScale design is so far the only small modular reactor to undergo a design certification review by the NRC, while in the UK UK approval for Rolls-Royce SMR is expected by mid-2024, signaling parallel regulatory progress. The design certification process addresses the various safety issues associated with the proposed nuclear power plant design, independent of a specific site and is valid for 15 years from the date of issuance.

NuScale's first customer, Utah Associated Municipal Power Systems (UAMPS), is planning a 12-module SMR plant at a site at the Idaho National Laboratory as efforts like TerraPower's molten-salt mini-reactor advance in parallel. Construction was scheduled to start in 2023, with the first module expected to begin operation in 2026. However, UAMPS has informed NuScale it needs to push back the timeline for operation of the first module from 2026 to 2029, the Washington Examiner reported on 24 August.

The NuScale SMR is also undergoing a vendor design review with the Canadian Nuclear Safety Commission, amid provincial activity such as New Brunswick's SMR debate that highlights domestic interest. NuScale has signed agreements with entities in the USA, Canada, Romania, the Czech Republic, and Jordan.

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California Rooftop Solar Rate Reforms propose shifting net metering to fixed access fees, peak-demand charges, and time-of-use pricing, aligning grid costs, distributed generation incentives, and retail rates for efficient, least-cost electricity and fair cost recovery.

Key Points

Policies replacing net metering with fixed fees, demand charges, and time-of-use rates to align costs and incentives.

✅ Large fixed access charge funds grid infrastructure

✅ Peak-demand pricing reflects capacity costs at system peak

✅ Time-varying rates align marginal costs and emissions

The California Public Service Commission has proposed revamping electricity rates for residential customers who produce electricity through their rooftop solar panels. In a recent New York Times op‐​ed, former Governor Arnold Schwarzenegger argued the changes pose an existential threat to residential rooftop solar. Interest groups favoring rooftop solar portray the current pricing system, often called net metering, in populist terms: “Net metering is the one opportunity for the little guy to get relief, and they want to put the kibosh on it.” And conventional news coverage suggests that because rooftop solar is an obvious good development and nefarious interests, incumbent utilities and their unionized employees, support the reform, well‐​meaning people should oppose it. A more thoughtful analysis would inquire about the characteristics and prices of a system that supplies electricity at least cost.

Currently, under net metering customers are billed for their net electricity use plus a minimum fixed charge each month. When their consumption exceeds their home production, they are billed for their net use from the electricity distribution system (the grid) at retail rates. When their production exceeds their consumption and the excess is supplied to the grid, residential consumers also are reimbursed at retail rates. During a billing period, if a consumer’s production equaled their consumption their electric bill would only be the monthly fixed charge.

Net metering would be fine if all the fixed costs of the electric distribution and transmission systems were included in the fixed monthly charge, but they are not. Between 66 and 77 percent of the expenses of California private utilities do not change when a customer increases or decreases consumption, but those expenses are recovered largely through charges per kWh of use rather than a large monthly fixed charge. Said differently, for every kWh that a PG&E solar household exported into the grid in 2019, it saved more than 26 cents, on average, while the utility’s costs only declined by about 8 cents or less including an estimate of the pollution costs of the system’s fossil fuel generators. The 18‐​cent difference pays for costs that don’t change with variation in a household’s consumptions, like much of the transmission and distribution system, energy efficiency programs, subsidies for low‐​income customers, and other fixed costs. Rooftop solar is so popular in California because its installation under a net metering system avoids the 18 cents, creating a solar cost shift onto non-solar customers. Rooftop solar is not the answer to all our environmental needs. It is simply a form of arbitrage around paying for the grid’s fixed costs.

What should electricity tariffs look like? This article in Regulation argues that efficient charges for electricity would consist of three components: a large fixed charge for the distribution and transmission lines, meter reading, vegetation trimming, etc.; a peak‐​demand charge related to your demand when the system’s peak demand occurs to pay for fixed capacity costs associated with peak use; and a charge for electricity use that reflects the time‐ and location‐​varying cost of additional electricity supply.

Actual utility tariffs do not reflect this ideal because of political concerns about the effects of large fixed monthly charges on low‐​income customers and the optics of explaining to customers that they must pay 50 or 60 dollars a month for access even if their use is zero. Instead, the current pricing system “taxes” electricity use to pay for fixed costs. And solar net metering is simply a way to avoid the tax. The proposed California rate reforms would explicitly impose a fixed monthly charge on rooftop solar systems that are also connected to the grid, a change that could bring major changes to your electric bill statewide, and would thus end the fixed‐​cost avoidance. Any distributional concerns that arise because of the effect of much larger fixed charges on lower‐​income customers could be managed through explicit tax deductions that are proportional to income.

The current rooftop solar subsidies in California also should end because they have perverse incentive effects on fossil fuel generators, even as the state exports its energy policies to neighbors. Solar output has increased so much in California that when it ends with every sunset, natural gas generated electricity has to increase very rapidly. But the natural gas generators whose output can be increased rapidly have more pollution and higher marginal costs than those natural gas plants (so called combined cycle plants) whose output is steadier. The rapid increase in California solar capacity has had the perverse effect of changing the composition of natural gas generators toward more costly and polluting units.

The reforms would not end the role of solar power. They would just shift production from high‐​cost rooftop to lower‐​cost centralized solar production, a transition cited in analyses of why electricity prices are soaring in California, whose average costs are comparable with electricity production in natural gas generators. And they would end the excessive subsidies to solar that have negatively altered the composition of natural gas generators.

Getting prices right does not generate citizen interest as much as the misguided notion that rooftop solar will save the world, and recent efforts to overturn income-based utility charges show how politicized the debate remains. But getting prices right would allow the decentralized choices of consumers and investors to achieve their goals at least cost.

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