Battle brewing over proposed power plant

By McClatchy Tribune News


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Middle Georgia could be home to the state's first new coal-fired power plant in two decades if state environmental officials approve a $2.1 billion project in Washington County.

In January, POWER4Georgians, a consortium of 10 electric cooperatives, applied for environmental permits to build and operate the proposed Plant Washington. It would generate about 850 megawatts of power a day on a 1,200-acre site about eight miles north of Sandersville.

Another new coal-fired power plant is also planned west of Albany by a different company, but that project is mired in court. As coal-fired power faces increasing opposition for its contributions to smog, soot and global warming, the Plant Washington proposal is being fought by environmental groups.

"I can't even tell you how it took the breath out of me to hear they were looking to build a new coal plant on the Oconee River," said Deborah Sheppard, executive director of the Altamaha Riverkeeper group.

"As long as our state and country continue to eek electricity through new plants, it will only increase the demand for more new plants, and that will only increase stresses on our water and air."

Sandersville Mayor Jimmy Evans said locals have questioned the effect of truck and rail traffic on neighbors and impacts to the groundwater table, but they seem to generally support the effort.

The plant, to be located on former farmland with few immediate neighbors, will bring about130 permanent jobs and a substantial but as-yet-undetermined boost to the county tax base. Local electricity provider Washington EMC is one of the 10 cooperatives that teamed to create POWER4Georgians, which would own the plant.

The cooperatives would sell the electricity. Other Middle Georgia partners include Central Georgia EMC and Upson EMC.

But some of the biggest players, such as Cobb EMC, are in fast-growing areas outside the region. POWER4Georgians maintains that without the plant, customers would soon have to pay perhaps twice as much for electricity, and the state would experience power shortages.

Most of the cooperatives had contracts with private utilities such as Georgia Power to provide some of their electricity. These contracts are expiring soon and cannot be renewed at affordable prices, said Dean Alford, whose Conyers company, Allied Energ Services, is the primary developer of the plant.

Oglethorpe Power was created by the state's electricity cooperatives in 1974 to deal with the same problem. But Oglethorpe has its plate full with the effort to add two nuclear reactors to Plant Vogtle, a joint project with Georgia Power and others.

Alford said some cooperatives can't wait.

By 2015, Alford said, growing population will mean the partners in POWER4Georgians need one-third more base power capacity than they have now. Critics say power companies should focus on energy efficiency and developing "green" power sources such as solar energy.

Alford said POWER4Georgians is involved in both these efforts, but "there's just no way around needing new generation."

POWER4Georgians needs at least six environmental permits for the plant: an air pollution permit, groundwater and surface water withdrawal permits, a water discharge permit for used water that goes back into the Oconee River, a permit for the storm water running off from the plant, and a permit for storing the solid waste such as gypsum and fly ash generated by the plant.

The state Environmental Protection Division is talking with the company and its experts. After satisfying any concerns, the EPD would then issue draft permits and let people comment on them. Public meetings and hearings must be held during this process.

Jack Capp, permitting manager for the EPD's air branch, said draft permits could be issued by the end of the year. Plant developers already held a public meeting in Sandersville days after filing the permit applications, and Alford has been meeting with community groups since then, he said.

New power plants are required to install the "best available pollution control technology" to limit air pollution.

Plant Washington is proposed to be the first in the state installed with wet scrubbers and other advances.

Power plants are some of the biggest contributors to ground-level ozone, the primary component of smog, and to fine particle pollution, such as soot that can be absorbed deep in the lungs. Both types cause heart and lung problems.

Macon is in a federal nonattainment zone for having dangerous levels of fine particle pollution, and it is expected to fall back into nonattainment for its ozone pollution under new federal rules. (Athens and Augusta, also not far from Sandersville, are also expected to fail the new ozone standard.) Scientists and regulators have identified Georgia Power's nearby Plant Scherer, the largest coal-fired power plant in the country, as one of the prime culprits for Macon's air pollution.

Washington County and neighboring Wilkinson County already struggle with unsafe levels of fine particle pollution. They have not yet been designated a nonattainment zone, but without improvements they probably will be, state regulators have said.

Evans said he feels comfortable that the new coal-fired plant won't put the county in jeopardy for nonattainment.

Alford said the plant is being designed to release zero measurable fine particles, and its technology will make ozone contributions far less than those of nearby power plants like Scherer. Capp said the EPD can't approve the plant if it will cause or contribute to violations of a national air standard.

That means it can't diminish a county's air quality enough to put the area in a nonattainment zone, and it can't contribute significantly to air pollution in an existing nonattainment area. However, there is a threshold for allowing some additional pollution, he said.

POWER4Georgians must provide computer modeling showing the effect of its air pollution on a broad area, and the state will do some of its own modeling, Capp said. The company has not yet specifically addressed its effects on Macon's air quality, Capp said. Alford said POWER4Georgians is not proposing a larger plant because that would require much more work to reduce harm to air and water.

"And I can assure you this will not be expanded in the future," he said.

Coal-fired power plants also emit mercury, which eventually accumulates in fish tissue. As a neurotoxin, mercury can damage fetuses and cause developmental problems in children.

Chandra Brown, the Ogeechee Riverkeeper, said the state already warns the public to limit consumption of fish from the Ogeechee River because of its mercury levels. "Any addition of mercury is just unacceptable," she said.

Like all coal-fired power plants, Plant Washington would use large amounts of water for its cooling towers. But POWER4Georgians' plan is unusual for its partial reliance on groundwater, as well as a 30-mile pipeline from the plant to its primary water source.

The plant is requesting to use 16 million gallons of water a day from the Oconee River.

Alford said the distance prevents any harm to wetlands and puts it near a major electricity transmission line.

Sheppard, with the Altamaha Riverkeeper, said the Oconee River already is under major stress from development in the Athens area, and it receives significant industrial pollution downstream. The less water in the river, the less there is to dilute the pollution.

"Is it fair to be using water in the Oconee to create energy for north Cobb County?" Sheppard asked. "There's serious equity issues here." However, Alford noted that at least all the power generated by Plant Washington would be used in Georgia - unlike power from some of the larger Georgia Power plants or the other proposed new coal-fired plant, Plant Longleaf.

During times when the Oconee River is low, POWER4Georgians wants approval to withdraw 16 million gallons a day from 16 ground water wells. Wells would be located at intervals along the plant's pipeline to the river and would tap into the Cretaceous aquifer, Alford said.

Having multiple wells reduces the impact on the water table at each site, said Bill Frechette, coordinator for the EPD groundwater permitting unit. All public water systems in Washington County - including the more than 6,000 households in Sandersville - rely on the same aquifer, and rural residents get their water from private wells, Evans said.

But he said the area has not experienced water shortages during the current drought.

"It's true the aquifer contains a lot of water," Frechette said. "On the other hand, there are a significant amount of users in Washington and Wilkinson counties and also the kaolin operations. We will be concerned about impacts on other users."

Alford said Plant Washington would probably rely on groundwater 40 percent of the time. He said the company's analysis shows this would have a negligible effect on the water table - but if anyone's well went dry, POWER4Georgians would replace it.

Frechette said that if the groundwater permit is granted, the plant will easily be among the top 25 groundwater users out of the 475 permitted in the state.

Alford said the company will augment its water supply by reusing storm water at the plant and reclaiming 4 million to 6 million gallons of water a day from local kaolin mines.

Brown praised the effort to use kaolin wastewater but voiced some questions about its effects. She noted that the state doesn't regulate the use of water in kaolin mining.

"We don't know anything about how much there is being used and what the impacts would be on the streams if that water goes somewhere else," she said. Alford said POWER4Georgians has been monitoring kaolin water use for almost a year to determine how much would be available for the power plant.

He declined to say which kaolin companies have been involved. The plant would return a million to 4 million gallons of water to the Oconee River daily, Alford said.

The EPD has already received comments from some groups about the proposed plants, most of them urging denial of the permits. Rick and Jennifer Johnson, Washington County property owners who live in Big Canoe, in north Georgia, wrote that "Washington County does not need a new source of air pollution.... We do not need another contributor to asthma cases, chronic bronchitis a d other health problems."

Greenlaw, a firm of environmental advocacy lawyers, filed comments on behalf of 15 environmental organizations, saying POWER4Georgians has failed to sufficiently analyze the health risks of the plant.

"It's the worst modeling our experts have ever seen," said Justine Thompson, executive director of Greenlaw. Greenlaw also has appealed permits for the proposed Plant Longleaf.

Some environmental groups contend that the state also should limit the amount of carbon dioxide released by the new plant. The federal government doesn't regulate carbon dioxide, the primary "greenhouse gas" responsible for global warming, although Congress is now debating legislation that would change that. Thompson said if both Plant Washington and Plant Longleaf are approved by the state, they will contribute carbon dioxide equivalent to driving 2.5 million new cars about 12,000 miles annually.

According to the POWER4Georgians Web site, Plant Washington will require less than two-thirds the amount of coal and emit less than two-thirds the amount of carbon dioxide as traditional coal-fired power plants.

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"Knowledge Gap" Is Contributing To On-the-job Electrical Injuries

BC Hydro Trades Electrical Safety addresses electric contact incidents among trade workers, emphasizing power line hazards, overhead lines clearance, the 3 m rule, jobsite planning, and safety training to prevent injuries during spring and summer.

 

Key Points

BC Hydro Trades Electrical Safety is guidance and training to reduce power-line contact risks for trade workers.

✅ Stay at least 3 m from overhead power lines and equipment

✅ Plan worksites and spot hazards before starting tasks

✅ Use BC Hydro electrical awareness training near electricity

 

A BC Hydro report finds serious electrical contact incidents are more common among trades workers, and research shows this is partly due to a knowledge gap in the electricity sector in Canada.

Trade workers were involved in more than 60 per cent of electric contact incidents that led to serious injuries over the last three years, according to BC Hydro.

One-in-five trade workers have also either made contact or had a close call with electric equipment.

A recent worksite electrocution case underscores the consequences of contact.

“New research finds many have had a close call with electricity on the job or have witnessed unsafe work near overhead lines or electrical equipment,” BC Hydro staff said in the report.

“A gap in electrical safety knowledge is a contributing factor in most of these incidents.”

Most electrical contact incidents take place in the spring and summer, when trade workers are working outdoors and are working in close proximity to power lines.

BC Hydro offered tips for trades workers who may work closely to possible electrical contact points:

  • Look up and down – Observe the site beforehand and plan work so you can avoid contact with power lines
  • Stay back – You and your tools should stay at least 3 m away from an overhead power line
  • Call for help – If you come across a fallen power line, or a tree branch or object contacts a line—stay back 10 metres and call 911. Never try and move it yourself. If you must work closer than 3 m to a power line at your worksite, call BC Hydro before you begin.
  • Learn about the risks – BC Hydro offers in-person and online electrical awareness training, such as arc flash training, for anyone who works near electricity.

The report found that 38 per cent of trades workers who participated in the report said they only feel “somewhat informed” about safety measures around working near electricity and 71 per cent were unable to identify the correct distance they should be away from active power lines or electrical equipment.

BC Hydro said trade workers should participate in its electrical awareness training courses, including arc flash training, to make sure all safety measures are taken.

 

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Closure of 3 Southern California power plants likely to be postponed

California Gas Plant Extensions keep Ormond Beach, AES Alamitos, and Huntington Beach on standby for grid reliability during heat waves, as regulators balance renewables, battery storage, and power, pending State Water Resources Control Board approval.

 

Key Points

State plan extending three coastal gas plants to 2026, adding capacity as California expands renewables and storage.

✅ Extends Ormond Beach, AES Alamitos, AES Huntington Beach

✅ Mitigates blackout risk during extreme heat and peak demand

✅ Pending State Water Resources Control Board approval

 

Temperatures in many California cities are cooling down this week, but a debate is simmering on how to generate enough electricity to power the state through extreme weather events while transitioning away from a reliance on fossil fuels as clean energy progress indicates statewide.

The California Energy Commission voted Wednesday to extend the life of three gas power plants along the state’s southern coast through 2026, even as natural-gas electricity records persist nationwide, postponing a shutoff deadline previously set for the end of this year. The vote would keep the decades-old facilities _ Ormond Beach Generating Station, AES Alamitos and AES Huntington Beach — open so they can run during emergencies.

The state is at a greater risk of blackouts during major events when many Californians simultaneously crank up their air conditioning, such as a blistering heat wave, illustrated by widespread utility shutoffs in recent years.

“We need to move faster in incorporating renewable energy. We need to move faster at incorporating battery storage. We need to build out chargers faster,” commissioner Patricia Monahan said amid an ongoing debate over the classification of nuclear power in California. “We’re working with all the energy institutions to do that, but we are not there yet.”

The plan, put together by the state’s Department of Water Resources, still needs final approval from the State Water Resources Control Board, which may vote on the issue next week. Democratic Gov. Gavin Newsom signed legislation last year creating an energy reserve the state could use as a last resort if there is likely to be an energy shortage, a challenge mirrored by Ontario electricity shortfall concerns elsewhere. The law allowed the Department of Water Resources to fund or secure power sources in those instances, after PG&E shutdown reasons drew attention to grid vulnerabilities.

The commission acknowledged it was a difficult decision. Environmentalists say the state needs to transition to more short- and long-term solutions that will help it move away from fossil fuels and to rely more on renewable energy sources like solar and wind, similar to Ontario's clean power push in recent years. They’re also concerned about the health impacts associated with pollution from gas plants.

 

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Bruce nuclear reactor taken offline as $2.1B project 'officially' begins

Bruce Power Unit 6 refurbishment replaces major reactor components, shifting supply to hydroelectric and natural gas, sustaining Ontario jobs, extending plant life to 2064, and managing radioactive waste along Lake Huron, on-time and on-budget.

 

Key Points

A 4-year, $2.1B reactor overhaul within a 13-year, $13B program to extend plant life to 2064 and support Ontario jobs.

✅ Unit 6 offline 4 years; capacity shift to hydro and gas

✅ Part of 13-year, $13B program; extends life to 2064

✅ Creates jobs; manages radioactive waste at Lake Huron

 

The world’s largest nuclear fleet, became a little smaller Monday morning. Bruce Power has began the process to take Unit 6 offline to begin a $2.1 billion project, supported by manufacturing contracts with key suppliers, to replace all the major components of the reactor.

The reactor, which produces enough electricity to power 750,000 homes and reflects higher output after upgrades across the site, will be out of service for the next four years.

In its place, hydroelectric power and natural gas will be utilized more.

Taking Unit 6 offline is just the “official” beginning of a 13-year, $13-billion project to refurbish six of Bruce Power’s eight nuclear reactors, as Ontario advances the Pickering B refurbishment as well on its grid.

Work to extend the life of the nuclear plant started in 2016, and the company recently marked an operating record while supporting pandemic response, but the longest and hardest part of the project - the major component replacement - begins now.

“The Unit 6 project marks the next big step in a long campaign to revitalize this site,” says Mike Rencheck, Bruce Power’s president and CEO.

The overall project is expected to last until 2033, and mirrors life extensions at Pickering supporting Ontario’s zero-carbon goals, but will extend the life of the nuclear plant until 2064.

Extending the life of the Bruce Power nuclear plant will sustain 22,000 jobs in Ontario and add $4 billion a year in economic activity to the province, say Bruce Power officials.

About 2,000 skilled tradespeople will be required for each of the six reactor refurbishments - 4,200 people already work at the sprawling nuclear plant near Kincardine.

It will also mean tons of radioactive nuclear waste will be created that is currently stored in buildings on the Bruce Power site, along the shores of Lake Huron.

Bruce Power restarted two reactors back in 2012, and in later years doubled a PPE donation to support regional health partners. That project was $2-billion over-budget, and three years behind schedule.

Bruce Power officials say this refurbishment project is currently on-time and on-budget.

 

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Trump Tariff Threat Delays Quebec's Green Energy Bill

Quebec Energy Bill Tariff Delay disrupts Canada-U.S. trade, renewable energy investment, hydroelectric expansion, and clean technology projects, as Trump tariffs on aluminum and steel raise costs, threatening climate targets and green infrastructure timelines.

 

Key Points

A policy pause in Quebec from U.S. tariff threats, disrupting clean investment, hydro expansion, and climate targets.

✅ Tariff risk inflates aluminum and steel project costs.

✅ Quebec delays clean energy legislation amid trade uncertainty.

✅ Hydroelectric reliance complicates emissions reduction timelines.

 

The Trump administration's tariff threat has had a significant impact on Quebec's energy sector, with tariff threats boosting support for projects even as the uncertainty resulted in the delay of a critical energy bill. Originally introduced to streamline energy development and tackle climate change, the bill was meant to help transition Quebec towards greener alternatives while fostering economic growth. However, the U.S. threat to impose tariffs on Canadian goods, including energy products, introduced a wave of uncertainty that led to a pause in the bill's legislative process.

Quebec’s energy bill had ambitious goals of transitioning to renewable sources like wind, solar, and hydroelectric power. It sought to support investments in clean technologies and the expansion of the province's clean energy infrastructure, as the U.S. demand for Canadian green power continues to grow across the border. Moreover, it emphasized the reduction of carbon emissions, an important step towards meeting Quebec's climate targets. At its core, the bill aimed to position the province as a leader in green energy development in Canada and globally.

The interruption caused by President Donald Trump's tariff rhetoric has, however, cast a shadow over the legislation. Tariffs, if enacted, would disproportionately affect Canada's energy exports, with electricity exports at risk under growing tensions, particularly in sectors like aluminum and steel, which are integral to energy infrastructure development. These tariffs could increase the cost of energy-related projects, thereby hindering Quebec's ability to achieve its renewable energy goals and reduce carbon emissions in a timely manner.

The tariff threat was seen as a part of the broader trade tensions between the U.S. and Canada, a continuation of the trade war that had escalated under Trump’s presidency. In this context, the Quebec government was forced to reconsider its legislative priorities, with policymakers citing concerns over the potential long-term consequences on the energy industry, as leaders elsewhere threatened to cut U.S.-bound electricity to exert leverage. With the uncertainty around tariffs and trade relations, the government opted to delay the bill until the geopolitical situation stabilized.

This delay underscores the vulnerability of Quebec’s energy agenda to external pressures. While the provincial government had set its sights on an ambitious green energy future, it now faces significant challenges in ensuring that its projects remain economically viable under the cloud of potential tariffs, even as experts warn against curbing Quebec's exports during the dispute. The delay in the energy bill also reflects broader challenges faced by the Canadian energy sector, which is highly integrated with the U.S. market.

The situation is further complicated by the province's reliance on hydroelectric power, a cornerstone of its energy strategy that supplies markets like New York, where tariffs could spike New York energy prices if cross-border flows are disrupted. While hydroelectric power is a clean and renewable source of energy, there are concerns about the environmental impact of large-scale dams, and these concerns have been growing in recent years. The tariff threat may prompt a reevaluation of Quebec’s energy mix and force the government to balance its environmental goals with economic realities.

The potential imposition of tariffs also raises questions about the future of North American energy cooperation. Historically, Canada and the U.S. have enjoyed a symbiotic energy relationship, with significant energy trade flowing across the border. The energy bill in Quebec was designed with the understanding that cross-border energy trade would continue to thrive. The Trump administration's tariff threat, however, casts doubt on this stability, forcing Quebec lawmakers to reconsider how they proceed with energy policy in a more uncertain trade environment.

Looking forward, Quebec's energy sector will likely need to adjust its strategies to account for the possibility of tariffs, while still pushing for a sustainable energy future, especially if Biden outlook for Canada's energy proves more favorable for the sector in the medium term. It may also open the door for deeper discussions about diversification, both in terms of energy sources and trade partnerships, as Quebec seeks to mitigate the impact of external threats. The delay in the energy bill, though unfortunate, may serve as a wake-up call for Canadian lawmakers to rethink how they balance environmental goals with global trade realities.

Ultimately, the Trump tariff threat highlights the delicate balance between regional energy ambitions and international trade dynamics. For Quebec, the delay in the energy bill could prove to be a pivotal moment in shaping the future of its energy policy.

 

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Bruce Power awards $914 million in manufacturing contracts

Bruce Power Major Component Replacement secures Ontario-made nuclear components via $914M contracts, supporting refurbishment, clean energy, low-cost electricity, and advanced manufacturing, extending reactor life to 2064 while boosting jobs, supply chain growth, and economy.

 

Key Points

A refurbishment program investing $914M in advanced manufacturing to extend reactors and deliver low-cost, clean power.

✅ $914M Ontario-made components for steam generators, tubes, fittings

✅ Extends reactor life to 2064; clean, low-cost electricity for Ontario

✅ Supports 22,000 jobs annually; boosts supply chain and economy

 

Today, Bruce Power signed $914 million in advanced manufacturing contracts for its Major Component Replacement, which gets underway in 2020, as the reactor refurbishment begins across the site and will allow the site to provide low-cost, carbon-free electricity to Ontario through 2064.

The Major Component Replacement (MCR) Project agreements include:

  • $642 million to BWXT Canada Inc. for the manufacturing of 32 steam generators to be produced at BWXT’s Cambridge facility.
  • $144 million to Laker Energy Products for end fittings, liners and flow elements, which will be manufactured at its Oakville location.
  • $62 million to Cameco Fuel Manufacturing, in Cobourg, for calandria tubes and annulus spacers for all six MCRs.
  • $66 million for Nu-Tech Precision Metals, in Arnprior, for the production of zirconium alloy pressure tubes for Units 6 and 3.

 

Bruce Power’s Life-Extension Program, which started in January 2016 with Asset Management Program investments and includes the MCRs on Units 3-8, remains on time and on budget.”

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By signing these contracts today, we have secured ‘Made in Ontario‘ solutions for the components we will need to successfully complete our MCR Projects, extending the life of our site to 2064,” said Mike Rencheck, Bruce Power’s President and CEO.

“Today’s announcements represent a $914 million investment in Ontario’s highly skilled workforce, which will create untold economic opportunities for the communities in which they operate for many years to come.”We look forward to growing our already excellent relationships with these supplier partners and unions as we work toward our common goal, supported by an operating record, of continuing to keep Canada’s largest infrastructure project on time and on budget."

By extending the life of Bruce Power’s reactors to 2064, the company will create and sustain 22,000 jobs annually, both directly and indirectly, across Ontario, while investing $4 billion a year into the province’s economy, underscoring the economic benefits of nuclear development across Canada.

At the same time, Bruce Power will produce 30 per cent of Ontario’s electricity at 30 per cent less than the average cost to generate residential power, while also producing zero carbon emissions, aligning with Pickering NGS life extensions across the province.The Hon. Glenn Thibeault, Minister of Energy, said today’s announcement is good news for the people of Ontario.”

Bruce Power’s Life-Extension Program makes sense for Ontario, and the announcements made today will create good jobs and benefit our economy for decades to come,” Minister Thibeault said.

“Moving forward with the refurbishment project is part of our government’s plan to support care and opportunity, while producing affordable, reliable and clean energy for the people of Ontario.”Kim Rudd, Parliamentary Secretary to the Minister of Natural Resources and MP for Northumberland-Peterborough South, offered her support and congratulations.”

Related planning includes Bruce C project exploration funding that supports long-term nuclear options in Ontario.

Canada’s nuclear industry, including its advanced manufacturing capability, is respected internationally,” Rudd said. “Bruce Power’s announcement today related to the advanced manufacturing of key components throughout Ontario as part of its Life-Extension Program will allow these suppliers to have a secure base to not only meet Canada’s needs, but export internationally.”

 

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Electricity retailer Griddy's unusual plea to Texas customers: Leave now before you get a big bill

Texas wholesale electricity price spike disrupts ERCOT markets as Griddy and other retail energy providers face surge pricing; customers confront spot market exposure, fixed-rate plan switching, demand response appeals, and deep-freeze grid constraints across Texas.

 

Key Points

An extreme ERCOT market surge sending real-time rates to caps, exposing Griddy users and driving provider-switch pleas.

✅ Wholesale index plans pass through $9,000/MWh scarcity pricing.

✅ Retailers urge switching; some halt enrollments amid volatility.

✅ Demand response incentives and conservation pleas reduce load.

 

Some retail power companies in Texas are making an unusual plea to their customers amid a winter storm that has sent electricity prices skyrocketing: Please, leave us.

Power supplier, Griddy, told all 29,000 of its customers that they should switch to another provider as spot electricity prices soared to as high as $9,000 a megawatt-hour. Griddy’s customers are fully exposed to the real-time swings in wholesale power markets, so those who don’t leave soon will face extraordinarily high electricity bills.

“We made the unprecedented decision to tell our customers — whom we worked really hard to get — that they are better off in the near term with another provider,” said Michael Fallquist, chief executive officer of Griddy. “We want what’s right by our consumers, so we are encouraging them to leave. We believe that transparency and that honesty will bring them back” once prices return to normal.

Texas is home to the most competitive electricity market in America. Homeowners and businesses shopping for electricity churn power providers there like credit cards. In the face of such cutthroat competition, retail power providers in the region have grown accustomed to offering new customers incredibly low rates, incentives and, at least in Griddy’s case, unusual plans that allow customers to pay wholesale power prices as opposed to fixed ones.

The ruthless nature of the business has power traders speculating over which firms might have been caught short this week in the most dramatic run-up in spot power prices they’ve ever seen, and even talk of a market bailout has surfaced.

Not all companies are asking customers to leave. Others are just pleading for them to cut back to reduce blackout risks during extreme weather.

Pulse Power, based in The Woodlands, Texas, is offering customers a chance to win a Tesla Model 3, or free electricity for up to a year if they reduce their power usage by 10% in the coming days. Austin-based Bulb is offering $2 per kilowatts-hour, up to $200, for any energy customers save.

Griddy, however, is in a different position. Its service is simple — and controversial. Members pay a $9.99 monthly fee and then pay the cost of spot power traded on Texas’s power grid based on the time of day they use it. Earlier this month, that meant customers were saving money — and at times even getting paid — to use electricity at night. But in recent days, the cost of their power has soared from about 5 to 6 cents a kilowatt-hour to $1 or more. That’s when Fallquist knew it was time to urge his customers to leave.

“I can tell you it was probably one of the hardest decisions we’ve ever made,” he said. “Nobody ever wants to see customers go.”

Griddy isn’t the only one out there actively encouraging its customers to leave. People were posting similar pleas on Twitter over the holiday weekend from other Texas utilities and retail power providers offering everything from $100 rebates to waived cancellation fees as incentives to switch.

Customers may not even be able to switch. Rizwan Nabi, president of energy consultancy Riz Energy in Houston, said several power providers in Texas have told him they aren’t accepting new customers due to this week’s volatile prices, while grid improvements are debated statewide.

Hector Torres, an energy trader in Texas, who is a Griddy customer himself, said he tried to switch services over the long weekend but couldn’t find a company willing to take him until Wednesday, when the weather is forecast to turn warmer.

 

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