Nuclear power among options for UN greenhouse cuts

Build Back Better Act Energy Savings curb volatile fossil fuel heating bills by accelerating electrification and renewable electricity, insulating households from natural gas, propane, and oil price spikes while cutting emissions and lowering energy costs.

Key Points

BBBA policies expand clean power and electrification to curb volatility, lower bills, and cut emissions.

✅ Tax credits for renewables, EVs, and efficient all-electric homes

✅ Shields households from natural gas, propane, and heating oil spikes

✅ Cuts methane, lowers bills, and improves grid reliability and jobs

Experts are forecasting serious sticker shock from home heating bills this winter. Nearly 60 percent of United States’ households heat their homes with fossil fuels, including natural gas, propane, or heating oil, and these consumers are expected to spend much more this winter because of fuel price increases.

That could greatly burden many families and businesses already operating on thin margins. Yet homes that use electricity for heating and cooking are largely insulated from the pain of volatile fuel markets, and they’re facing dramatically lower price increases as a result.

Projections say cost increases for households could range anywhere from 22% to 94% more, depending on the fuel used for heating and the severity of the winter temperatures. But the added expenditures for the 41% of U.S. households using electricity for heating are much less stark—these consumers will see only a 6% price increase on average. The projected fossil fuel price spikes are largely due to increased demand, limited supply, declining fuel stores, and shifting investment priorities in the face of climate change.

The fossil fuel industry is already seizing this moment to use high prices to persuade policymakers to vote against clean energy policies, particularly the Build Back Better Act (BBBA). Spokespeople with ties to the fossil fuel industry and some consumer groups are trying to pin higher fuel prices on the proposed legislation even before it has passed, even as analyses show the energy crisis is not spurring a green revolution on its own, let alone begun impacting fuel markets. But the claim the BBBA would cost Americans and the economy is false.

The facts tell a different story. Adopting smart climate policies and accelerating the clean energy transition are precisely the solutions to counter this vicious cycle by ending our dependance on volatile fossil fuels. The BBBA will ensure reliable, affordable clean electricity for millions of Americans, in line with a clean electricity standard many experts advocate—a key strategy for avoiding future vulnerability. Unlike fossil fuels subject to the whims of a global marketplace, wind and sunshine are always free. So renewable-generated electricity comes with an ultra-low fixed price decades into the future.

By expanding clean energy and electric vehicle tax credits, creating new incentives for efficient all-electric homes, and dedicating new funding for state and local programs, the BBBA provides practical solutions that build on lessons from Biden's climate law to protect Americans from price shocks, save consumers money, and reduce emissions fueling dangerous climate change.

What’s really causing the gas price spikes?
The U.S. Energy Information Administration’s winter 2021 energy price forecasts project that homes heated with natural gas, fuel oil, and propane will see average price increases of 30%, 43%, and 54%, respectively. Those who heat their homes with electricity, on the other hand, should expect a modest 6% increase. At the pump, drivers are seeing some of the highest gas prices in nearly a decade as the U.S. energy crisis ripples through electricity, gas, and EV markets today. And the U.S. is not alone. Countries around the globe are experiencing similar price jumps, including Britain's high winter energy costs this season.

A closer look confirms the cause of these high prices is not clean energy or climate policies—it’s fossil fuels themselves.  

First, the U.S. (and the world) are just now feeling the effects of the oil and gas industry’s reduced fuel production and spending due to the pandemic. COVID-19 brought the world’s economies to a screeching halt, and most countries have not returned to pre-COVID economic activity. During the past 20 months, the oil and gas industry curtailed its production to avoid oversupply as demand fell to all-time lows. Just as businesses were reopening, stored fuel was needed to meet high demand for cooling during 2021’s hottest summer on record, driving sky-high summer energy bills for many households. February’s Texas Big Freeze also disrupted gas distribution and production.

The world is moving again and demand for goods and services is rebounding to pre-pandemic levels. But even with higher energy demand, OPEC announced it would not inject more oil into the economy. Major oil companies have also held oil and gas spending flat in 2021, with their share of overall upstream spending at 25%, compared with nearly 40% in the mid-2010s. And as climate change threats loom in the financial world, investors are reducing their exposure to the risks of stranded assets, increasingly diversifying and divesting from fossil fuels. 

Second, despite strong and sustained growth for renewable energy, energy storage, and electric vehicles, the relatively slow pace to adopt fossil fuel alternatives at scale has left U.S. households and businesses tethered to an industry well-known for price volatility. Today, some oil drillers are using profits from higher gas prices to pay back debt and reward shareholders as demanded by investors, instead of increasing supply. Rising prices for a limited commodity in high demand is generating huge profits for many of the world’s largest companies at the expense of U.S. households.

Because 48% of homes use fossil gas for heating and another 10% heat with propane and fuel oil, more than half of U.S. households will feel the impact of rising prices on their home energy bills. One in four U.S. households continues to experience a high energy burden (meaning their energy expenses consume an inordinate amount of their income), including risks of pandemic power shut-offs that deepen energy insecurity, and many are still experiencing financial hardships exacerbated by the pandemic. Those with inefficient fossil-fueled appliances, homes, and cars will be hardest hit, and many families with fixed- and lower-incomes could be forced to choose between heat or other necessities.

We have the solutions—the BBBA will unlock their benefits for all households

Short-term band-aids may be enticing, but long-term policies are the only way out of this negative feedback loop. Clean energy and building electrification will prevent more costly disasters in the future, but they’re the very solutions the fossil fuel industry fights at every turn. All-electric homes and vehicles are a natural hedge against the price spikes we’re experiencing today since renewables are inherently devoid of fuel-related price fluctuations.

RMI analysis shows all-electric single-family homes in all regions of the country have lower energy bills than a comparable mixed fuel-homes (i.e., electricity and gas). Electric vehicles also save consumers money. Research from University of California, Berkeley and Energy Innovation found consumers could save a total of $2.7 trillion in 2050—or $1,000 per year, per household for the next 30 years—if we accelerate electric vehicle deployment in the coming decade.

The BBBA would help deliver these consumer savings by expanding and expediting clean energy, while ensuring equitable adoption among lower-income households and underserved communities. Extending and expanding clean energy tax credits; new incentives for electric vehicles (including used electric vehicles); and new incentives for energy efficient homes and all-electric appliances (and electrical upgrades) will reduce up-front costs and spur widespread adoption of all-electric homes, buildings, and cars.

A combination of grants, incentives, and programs will promote private sector investments in a decarbonized economy, while also funding and supporting state and local governments already leading the way. The BBBA also allocates dedicated funding and makes important modifications (such as higher rebate amounts and greater point-of-purchase availability) to ensure these technologies are available to low-income households, underserved urban and rural communities, tribes, frontline communities, and people living in multifamily housing.

Finally, the BBBA proposes to make oil and gas polluters pay for the harm they are causing to people’s health and the climate through a methane fee. This fee would cost companies less than 1% of their revenue, meaning the industry would retain over 99% of its profits. In return return we’d see substantial reductions of a powerful greenhouse gas and a healthier environment in communities living near fossil fuel production. These benefits also come with a stronger economy—Energy Innovation analysis shows the methane fee would create more than 70,000 jobs by 2050 and boost gross domestic product more than $250 billion from 2023 to 2050.

The facts speak for themselves. Gas prices are rising because of reasons totally unrelated to smart climate and clean energy policies, which research shows actually lower costs. For the first time in more than a decade, America has the opportunity to enact a comprehensive energy policy that will yield measurable savings to consumers and free us from oil and gas industry control over our wallets.

The BBBA will help the U.S. get off the fossil fuel rollercoaster and achieve a stable energy future, ensuring that today’s price spikes will be a thing of the past. Proving, once and for all, that the solution to our fossil fuel woes is not more fossil fuels.

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Alberta Coal Phase-Out signals a clean energy transition, replacing coal with natural gas and renewables, cutting greenhouse gas emissions, leveraging a carbon levy, and supporting workers in Alberta's evolving electricity market.

Key Points

Alberta Coal Phase-Out moves power from coal to lower-emission natural gas and renewables to reduce grid emissions.

✅ Last coal plant closed: Genesee Generating Station, Sept 30, 2023

✅ Shift to natural gas and renewables lowers emissions

✅ Carbon levy and incentives accelerated clean power build-out

The closure of the Genesee Generating Station on September 30, 2023, marked a significant milestone in Alberta's energy history, as the province moved to retire coal power by 2023 ahead of its 2030 provincial deadline. The Genesee, located near Calgary, was the province's last remaining coal-fired power plant. Its closure represents the culmination of a multi-year effort to transition Alberta's electricity sector away from coal and towards cleaner sources of energy.

For decades, coal was the backbone of Alberta's electricity grid. Coal-fired plants were reliable and relatively inexpensive to operate. However, coal also has a significant environmental impact. The burning of coal releases greenhouse gases, including carbon dioxide, a major contributor to climate change. Coal plants also produce air pollutants such as sulfur dioxide and nitrogen oxide, which can cause respiratory problems and acid rain, and in some regions electricity is projected to get dirtier as gas use expands.

In recognition of these environmental concerns, the Alberta government began to develop plans to phase out coal-fired power generation in the early 2000s. The government implemented a number of policies to encourage the shift from coal to cleaner energy such as natural gas and renewable energy. These policies included providing financial incentives for the construction of new natural gas plants and renewable energy facilities, as well as imposing a carbon levy on coal-fired generation.

The phase-out of coal was also driven by economic factors. The cost of natural gas has declined significantly in recent years, making it a more competitive fuel source for electricity generation as producers switch to gas under evolving market conditions. Additionally, the Alberta government faced increasing pressure from the federal government to reduce greenhouse gas emissions.

The transition away from coal has not been without its challenges. Coal mining and coal-fired power generation have long been important parts of Alberta's economy. The closure of coal plants has resulted in job losses in the affected communities. The government has implemented programs to help workers transition to new jobs in the clean energy sector.

Despite these challenges, the closure of the Genesee Generating Station is a positive development for Alberta's environment and climate. Coal-fired power generation is one of the largest sources of greenhouse gas emissions in Alberta, and recent wind generation outpacing coal underscores the sector's transformation. The closure of the Genesee is expected to result in a significant reduction in emissions, helping Alberta to meet its climate change targets.

The transition away from coal also presents opportunities for Alberta. The province has vast natural gas resources, which can be used to generate electricity with lower emissions than coal. Alberta is also well-positioned to develop renewable energy sources, such as wind power and solar power. These renewable energy sources can help to further reduce emissions and create new jobs in the clean energy sector.

The closure of the Genesee Generating Station is a significant milestone in Alberta's energy history. It represents the end of an era for coal-fired power generation in the province, a shift mirrored by the UK's last coal station going offline earlier this year. However, it also marks the beginning of a new era for Alberta's energy sector. By transitioning to cleaner sources of energy, Alberta can reduce its environmental impact and create a more sustainable energy future.

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CER Interactive Electricity Bill Tool compares provincial electricity prices, fees, taxes, and usage. Explore household appliance costs, hydroelectric generation, and consumption trends across Canada with interactive calculators and a province-by-province breakdown.

Key Points

An online CER report with calculators comparing electricity prices, fees, and usage to explain household energy costs.

✅ Province-by-province bill, price, and consumption comparison

✅ Calculator for appliance and electronics energy costs

✅ Explains fees, taxes, regulation, and generation sources

Canadians have a new way to assess their electricity bill in a new, interactive online report released by the Canada Energy Regulator (CER).

The report titled What is in a residential electricity bill? features a province-to-province comparison of electricity bills, generation and consumption. It also explains electricity prices across the country, including how Calgary electricity prices have changed, allowing people to understand why costs vary depending on location, fees, regulation and taxes.  

Learn how fees and usage impacts your electricity bill in new online CER tool
Interactive tools allow people to calculate the cost of household appliances and electronic use for each province and territory, and to understand how Ontario rate increases may affect monthly bills. For example, an individual can use the tools to find out that leaving a TV on for 24-hours in Quebec costs $5.25 per month, while that same TV on for a whole day would cost $12.29 per month in Saskatchewan, $20.49 per month in the Northwest Territories, and $15.30 per month in Nova Scotia.

How Canadians use energy varies as much as how provinces and territories produce it, especially in regions like Nunavut where unique conditions influence costs. Millions of Canadians rely on electricity to power their household appliances, charge their electronics, and heat their homes. Provinces with abundant hydro-electric resources like Quebec, B.C., Manitoba, and Newfoundland and Labrador use electricity for home heating and tend to consume the most electricity.

By gathering data from various sources, this report is the first Canadian publication that features interactive tools to allow for a province-by-province comparison of electricity bills while highlighting different elements within an electricity bill, a helpful context as Canada faces a critical supply crunch in the years ahead.

The CER monitors energy markets and assesses Canadian energy requirements and trends, including clean electricity regulations developments that shape pricing. This report is part of a portfolio of publications on energy supply, demand and infrastructure that the CER publishes regularly as part of its ongoing market monitoring.

"No matter where you go in the country, Canadians want to know how much they pay for power and why, especially amid price spikes in Alberta this year," says lead author Colette Craig. "This innovative, interactive report really explains electricity bills to help everyone understand electricity pricing and consumption across Canada."

Quick Facts

• Quebec ranks first in electricity consumption per capita at 21.0 MW.h, followed by Saskatchewan at 20.0 MW.h, Newfoundland and Labrador at 19.3 MW.h.
• About 95% of Quebec's electricity is produced from hydroelectricity.
• Provinces that use electricity for home heating tend to consume the most electricity.
• Canada's largest consuming sector for electricity was industrial at 238 TW.h. The residential and commercial sectors consumed 168 TW.h and 126 TW.h, respectively.
• In 2018, Canada produced 647.7 terawatt hours (TW.h) of electricity. More than half of the electricity in Canada (61%) is generated from hydro sources. The remainder is produced from a variety of sources, such as fossil fuels (natural gas and petroleum), nuclear, wind, coal, biomass, solar.
• Canada is a net exporter of electricity. In 2019, net exports to the U.S. electricity market totaled 47.0 TW.h.
• The total value of Canada's electricity exports was $2.5 billion Canadian dollars and the value of imports was $0.6 billion Canadian dollars, resulting in 2019 net exports of $1.9 billion.
• All regions in Canada are reflected in this report but it does not include data that reflects the COVID-19 lockdown and its effects on residential electricity bills.
   

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Northvolt Montreal EV Battery Plant advances as a Quebec clean energy hub, leveraging hydroelectric power to supply EV batteries, strengthen North American supply chains, and support automakers' electrification with sustainable manufacturing and regional distribution.

Key Points

A Quebec-based EV battery facility using hydroelectric power to scale sustainable production for North America.

✅ Powered by Quebec hydro for lower-carbon cell manufacturing

✅ Strengthens North American EV supply chain resilience

✅ Creates local jobs, R&D, and advanced manufacturing skills

Northvolt, a prominent player in the electric vehicle (EV) battery industry, has reaffirmed its commitment to proceed with its battery plant project near Montreal as originally planned. This development marks a significant step forward in Northvolt's expansion strategy and signals confidence in Canada's role in the global EV market.

The decision to move forward with the EV battery plant project near Montreal underscores Northvolt's strategic vision to establish a strong foothold in North America's burgeoning electric vehicle sector. The plant is poised to play a crucial role in meeting the growing demand for sustainable battery solutions as automakers accelerate their transition towards electrification.

Located strategically in Quebec, a province known for its abundant hydroelectric power and supportive government policies towards clean energy initiatives, including major Canada-Quebec investments in battery assembly, the battery plant project aligns with Canada's commitment to promoting green technology and reducing carbon emissions. By leveraging Quebec's renewable energy resources, Northvolt aims to produce batteries with a lower carbon footprint compared to traditional manufacturing processes.

The EV battery plant is expected to contribute significantly to the local economy by creating jobs, stimulating economic growth, and fostering technological innovation in the region, much as a Niagara Region battery plant is catalyzing development in Ontario. As Northvolt progresses with its plans, collaboration with local stakeholders, including government agencies, educational institutions, and industry partners, will be pivotal in ensuring the project's success and maximizing its positive impact on the community.

Northvolt's decision to advance the battery plant project near Montreal also reflects broader trends in the global battery manufacturing landscape. With increasing emphasis on sustainability and supply chain resilience, companies like Northvolt are investing in diversified production capabilities, including projects such as a $1B B.C. battery plant, to meet regional market demands and reduce dependency on overseas suppliers.

Moreover, the EV battery plant project near Montreal represents a milestone in Canada's efforts to strengthen its position in the global electric vehicle supply chain, with EV assembly deals helping put the country in the race. By attracting investments from leading companies like Northvolt, Canada aims to build a robust ecosystem for electric vehicle manufacturing and innovation, driving economic competitiveness and environmental stewardship.

The plant's proximity to key markets in North America further enhances its strategic value, enabling efficient distribution of batteries to automotive manufacturers across the continent. This geographical advantage positions Northvolt to capitalize on the growing demand for electric vehicles in Canada, the United States, and beyond, supporting Canada-U.S. collaboration on supply chains and market growth.

Looking ahead, Northvolt's commitment to advancing the EV battery plant project near Montreal underscores its long-term vision and dedication to sustainable development. As the global electric vehicle market continues to evolve, alongside the U.S. auto sector's pivot to EVs, investments in battery manufacturing infrastructure will play a critical role in shaping the industry's future landscape and accelerating the adoption of clean transportation technologies.

In conclusion, Northvolt's affirmation to proceed with the EV battery plant project near Montreal represents a significant milestone in Canada's transition towards sustainable mobility solutions. By harnessing Quebec's renewable energy resources and fostering local partnerships, Northvolt aims to establish a state-of-the-art manufacturing facility that not only supports the growth of the electric vehicle sector but also contributes to Canada's leadership in clean technology innovation, bolstered by initiatives like Nova Scotia vehicle-to-grid pilots that strengthen grid readiness nationwide. As the project moves forward, its impact on economic growth, job creation, and environmental sustainability is expected to resonate positively both locally and globally.

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U.S. Natural Gas Power Demand is surging for electricity generation amid summer heat, with ERCOT, Texas grid reserves tight, EIA reporting coal and nuclear retirements, renewables intermittency, and pipeline expansions supporting combined-cycle capacity and prices.

Key Points

It is rising use of natural gas for power, driven by summer heat, plant retirements, and new combined-cycle capacity.

✅ ERCOT reserve margin 9%, below 14% target in Texas

✅ Gas share of U.S. power near 40-43% this summer

✅ Coal and nuclear retirements shift capacity to combined cycle

As the hot months linger, it will be natural gas that is leaned on most to supply the electricity that we need to run our air conditioning loads on the grid and keep us cool.

And this is surely a great and important thing: "Heat causes most weather-related deaths, National Weather Service says."

Generally, U.S. gas demand for power in summer is 35-40% higher than what it was five years ago, with so much more coming (see Figure).

The good news is regions across the country are expected to have plenty of reserves to keep up with power demand.

The only exception is ERCOT, covering 90% of the electric load in Texas, where a 9% reserve margin is expected, below the desired 14%.

Last summer, however, ERCOT’s reserve margin also was below the desired level, yet the grid operator maintained system reliability with no load curtailments.

Simply put, other states are very lucky that Texas has been able to maintain gas at 50% of its generation, despite being more than justified to drastically increase that.

At about 1,600 Bcf per year, the flatness of gas for power demand in Texas since 2000 has been truly remarkable, especially since Lone Star State production is up 50% since then.

Increasingly, other U.S. states (and even countries) are wanting to import huge amounts of gas from Texas, a state that yields over 25% of all U.S. output.

Yet if Texas justifiably ever wants to utilize more of its own gas, others would be significantly impacted.

At ~480 TWh per year, if Texas was a country, it would be 9th globally for power use, even ahead of Brazil, a fast growing economy with 212 million people, and France, a developed economy with 68 million people.

In the near-term, this explains why a sweltering prolonged heat wave in July in Texas, with a hot Houston summer setting new electricity records, is the critical factor that could push up still very low gas prices.

But for California, our second highest gas using state, above-average snowpack should provide a stronger hydropower for this summer season relative to 2018.

Combined, Texas and California consume about 25% of U.S. gas, with Texas' use double that of California.

Across the U.S., gas could supply a record 40-43% of U.S. electricity this summer even as the EIA expects solar and wind to be larger sources of generation across the mix

Our gas used for power has increased 35-40% over the past five years, and January power generation also jumped on the year, highlighting broad momentum.

Our gas used for power has increased 35-40% over the past five years. DATA SOURCE: EIA; JTC

Indeed, U.S. natural gas for electricity has continued to soar, even as overall electricity consumption has trended lower in some years, at nearly 10,700 Bcf last year, a 16% rise from 2017 and easily the highest ever.

Gas is expected to supply 37% of U.S. power this year, even as coal-fired generation saw a brief uptick in 2021 in EIA data, versus 27% just five years ago (see Figure).

Capacity wise, gas is sure to continue to surge its share 45% share of the U.S. power system.

"More than 60% of electric generating capacity installed in 2018 was fueled by natural gas."

We know that natural gas will continue to be the go-to power source: coal and nuclear plants are retiring, and while growing, wind and solar are too intermittent, geography limited, and transmission short to compensate like natural gas can.

"U.S. coal power capacity has fallen by a third since 2010," and last year "16 gigawatts (16,000 MW) of U.S. coal-fired power plants retired."

This year, some 2,000 MW of coal was retired in February alone, with 7,420 MW expected to be closed in 2019.

Ditto for nuclear.

Nuclear retirements this year include Pilgrim, Massachusetts’s only nuclear plant, and Three Mile Island in Pennsylvania.

This will take a combined ~1,600 MW of nuclear capacity offline.

Another 2,500 MW and 4,300 MW of nuclear are expected to be leaving the U.S. power system in 2020 and 2021, respectively.

As more nuclear plants close, EIA projects that net electricity generation from U.S. nuclear power reactors will fall by 17% by 2025.

From 2019-2025 alone, EIA expects U.S. coal capacity to plummet nearly 25% to 176,000 MW, with nuclear falling 15% to 83,000 MW.

In contrast, new combined cycle gas plants will grow capacity almost 30% to around 310,000 MW.

Lower and lower projected commodity prices for gas encourage this immense gas build-out, not to mention non-stop increases in efficiency for gas-based units.

Remember that these are official U.S. Department of Energy estimates, not coming from the industry itself.

In other words, our Department of Energy concludes that gas is the future.

Our hotter and hotter summers are therefore more and more becoming: "summers for natural gas"

Ultimately, this shows why the anti-pipeline movement is so dangerous.

"Affordable Energy Coalition Highlights Ripple Effect of Natural Gas Moratorium."

In April, President Trump signed two executive orders to promote energy infrastructure by directing federal agencies to remove bottlenecks for gas transport into the Northeast in particular, where New England oil-fired generation has spiked, and to streamline federal reviews of border-crossing pipelines and other infrastructure.

Builders, however, are not relying on outside help: all they know is that more U.S. gas demand is a constant, so more infrastructure is mandatory.

They are moving forward diligently: for example, there are now some 27 pipelines worth $33 billion already in the works in Appalachia.

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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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