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Hydro One Leadership Shakeup unsettles investors as Ontario government ousts CEO and board, pressuring shares; analysts cite political and regulatory risk, stock volatility, trimmed price targets, and dividend stability at the regulated utility.

Key Points

An abrupt CEO exit and board overhaul at Hydro One, driving share declines and raising political and regulatory risk.

✅ Shares fall as CEO retires and board resigns under provincial pressure.

✅ Analysts cut price targets; warn of political, regulatory risks.

✅ New board to pick CEO; province consults on compensation.

Hydro One Ltd. shares slid Thursday with some analysts sounding warnings of greater uncertainty after the new Ontario government announced the retirement of the electrical utility's chief executive and the replacement of its board of directors.

 After sagging by almost eight per cent in early trading on the Toronto Stock Exchange, following news that Q2 profit plunged 23% amid weaker electricity revenue, shares of the company were later down four per cent, or 81 cents, at $19.36 as of 11:42 a.m. ET.

On Wednesday, after stock markets had closed for the day, Ontario Premier Doug Ford announced the immediate retirement of Hydro One CEO Mayo Schmidt. He leaves with a $400,000 payout in lieu of post-retirement benefits and allowances, Hydro One said.

Doug Ford's government forces out Hydro One '$6-million man'

During the recent provincial election campaign, Ford vowed to fire Schmidt, who earned $6.2 million last year and whose salary wouldn't be reduced despite calls to cut electricity costs.

Paul Dobson, Hydro One's chief financial officer, will serve as acting CEO until a new top executive is selected.

Ford also said the entire board of directors of the utility would resign. Hydro One said a new board — four members of which will be nominated by the province — will select the company's next CEO, and the province will be consulted on the next leader's compensation.

A new board is expected to be formed by mid-August.

The provincial government is the largest single investor in Hydro One, holding a 47 per cent stake. The company was partly privatized by the former Liberal government in 2015, while the NDP has proposed to make hydro public again in Ontario to change course.

Doug Ford promises to keep Pickering nuclear plant open until 2024

In response to the government's move to supplant the utility's board and CEO, some analysts cautioned investors about too many unknowns in the near-term outlook, citing raised political or regulatory risks.

Analyst Jeremy Rosenfield of iA Securities cut his rating on Hydro One shares to hold from buy, and reduced his 12-month price target for the stock to $24 from $26.

Rosenfield said the stock is still a defensive investment supported by stable earnings and cash flows, good earnings growth and healthy dividend.

However, he said in a research note that "the heightened potential for further political interference in the province's electricity market and regulated utility framework represent key risk factors that are likely to outweigh Hydro One's fundamentals over the near term."

Potential challenge to find new CEO

Laurentian Bank Securities analyst Mona Nazir said in a research note that the magnitude of change all at once was "surprising but not shocking."

She said the agreement that will see Hydro One consult with the provincial government on matters involving executive pay could have an impact on the hiring of a new CEO for the utility.

"Given the government's open and public criticism of the company and a potential ceiling on compensation, it may be challenging to attract top talent to the position," she wrote.

Laurentian cut its rating on the Hydro One to hold and reduced its price target to $21 from $24.

Analysts at CIBC World Markets said investors face an uncertain future, noting parallels with debates at Manitoba Hydro over political direction.

"In particular, we are are concerned about the government meddling in with [power] rates," wrote Robert Catellier and Archit Kshetrapal in a research note, adding they believe the new provincial government is aiming for a 12 per cent reduction in customers' power bills.

CIBC reduced its price target on Hydro One's shares to $20.50 from its previous target of $24.

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Fukushima Hydrogen Energy System leverages a 10,000 kW H2 production hub for grid balancing, demand response, and renewable integration, delivering hydrogen supply across Tohoku while supporting storage, forecasting, and flexible power management.

Key Points

A 10,000 kW H2 project in Namie for grid balancing, renewable integration, and regional hydrogen supply.

✅ 10,000 kW H2 production hub in Namie, Fukushima

✅ Balances renewable-heavy grids via demand response

✅ Supported by NEDO; partners Toshiba, Tohoku Electric, Iwatani

Toshiba Corporation, Tohoku Electric Power Co. and Iwatani Corporation have announced they will construct and operate a large-scale hydrogen (H2) energy system in Japan, based on a 10,000 kilowat class H2 production facility, which reflects advances in PEM hydrogen R&D worldwide.

The system, which will be built in Namie-Cho, Fukushima, will use H2 to offset grid loads and deliver H2 to locations in Tohoku and beyond, while complementary approaches like power-to-gas storage in Europe demonstrate broader storage options, and will seek to demonstrate the advantages of H2 as a solution in grid balancing and as a H2 gas supply.

The product has won a positive evaluation from Japan’s New Energy and Industrial Technology Development Organisation (NEDO), and its continued support for the transition to the technical demonstration phase. The practical effectiveness of the large-scale system will be determined by verification testing in financial year 2020, even as interest grows in nuclear beyond electricity for complementary services.

The main objectives of the partners are to promote expanded use of renewable energy in the electricity grid, including UK offshore wind investment by Japanese utilities, in order to balance supply and demand and process load management; and to realise a new control system that optimises H2 production and supply with demand forecasting for H2.

Hiroyuki Ota, General Manager of Toshiba’s Energy Systems and Solutions Company, said, “Through this project, Toshiba will continue to provide comprehensive H2 solutions, encompassing all processes from the production to utilisation of hydrogen.”

Manager of Tohoku Electric Power Co., Ltd, Mitsuhiro Matsumoto, added, “We will study how to use H2 energy systems to stabilize electricity grids with the aim of increasing the use of renewable energy and contributing to Fukushima.”

Moriyuki Fujimoto, General Manager of Iwatani Corporation, commented, “Iwatani considers that this project will contribute to the early establishment of a H2 economy that draws on our experience in the transportation, storage and supply of industrial H2, and the construction and operation of H2stations.”

Japan’s Ministry of Economy, Trade and Industry’s ‘Long-term Energy Supply and Demand Outlook’ targets increasing the share of renewable energy in Japan’s overall power generation mix from 10.7% in 2013 to 22-24% by 2030. Since output from renewable energy sources is intermittent and fluctuates widely with the weather and season, grid management requires another compensatory power source, as highlighted by a near-blackout event in Japan. The large hydrogen energy system is expected to provide a solution for grids with a high penetration of renewables.

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Ukraine Electricity Market Price Caps empower the regulator, the National Commission, to set marginal prices on day-ahead, intraday, and balancing markets, stabilize competition, support thermal plants, and sustain the heating season via green tariff obligations.

Key Points

Regulatory limits set by the National Commission to curb price spikes, ensure competition, and secure heat supply.

✅ Sets marginal prices for day-ahead, intraday, balancing markets

✅ Mitigates collusion risks; promotes effective competition

✅ Ensures TPP operation and heat supply during heating season

The Verkhovna Rada, Ukraine's parliament, has adopted at first reading a draft law that proposes giving the National Commission for State Regulation of Energy and Public Utilities the right to set marginal prices in the electricity market, amid EU market revamp plans that aim to reshape pricing, until 2023.

A total of 259 MPs voted for the document at a parliament meeting on Tuesday, November 12, amid electricity import pressures that have tested the grid, according to an Ukrinform correspondent.

Bill No. 2233 introducing amendments to the law on the electricity market provides for the legislative regulation of the mechanism for fulfilling special obligations for the purchase of electricity at a "green" tariff, preventing the uncontrolled growth of electricity prices due to the lack of effective competition, including recent price-fixing allegations that have raised concerns, ensuring heat supply to consumers during the heating period by regulating the issue of the functioning of thermal power plants in the new electricity market.

It is proposed to introduce respective amendments to the law of Ukraine on the electricity market, alongside steps toward synchronization with ENTSO-E to enhance system stability.

In particular, the draft law gives the regulator the right for the period until July 1, 2023 to set marginal prices on the day-ahead market, the intraday market and the balancing market for each trade zone, reflecting similar EU fixed-price contract initiatives being discussed, and to decide on the obligation for producers to submit proposals (applications) for the sale of electricity on the day-ahead market.

Lawmakers think that the adoption of the bill and empowering the regulator to set marginal prices in the relevant segments of the electricity market will prevent, even as rolling back prices in Europe remains difficult for policymakers, "an uncontrolled increase in electricity prices due to the lack of effective competition or collusion between market players, as well as regulate the issue of the functioning of thermal power plants during the autumn and winter period, which is a necessary prerequisite for providing heat to consumers during the heating period."

The new model of the electricity market was launched on July 1 as the UK weighs decoupling gas and power prices to shield consumers, in accordance with the provisions of the law on the electricity market, adopted in 2017.

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Texas Utility COVID-19 Relief suspends disconnections, waives late fees, extends payment plans, and supports broadband access as electric, gas, and internet providers help customers during the statewide emergency with speed upgrades and student WiFi initiatives.

Key Points

Texas utilities pause disconnections, waive fees, expand access, and offer flexible payment plans during COVID-19.

✅ Disconnections and late fees suspended by gas, power, internet.

✅ Payment plans and deferred balances after emergency.

✅ Bandwidth caps lifted; student WiFi access for remote learning.

In response to the COVID-19 pandemic, Texas utility companies have taken unprecedented steps to keep customers' lights on, gas flowing, and online connections stable -- even if they can't pay, amid concerns over pandemic electricity shutoffs nationwide.

Meantime, Palestine City Council members plan to discuss hardship measures Monday, as some states such as New Jersey and New York implement moratoriums on shut-offs, but have no plans yet to ease the burden of paying two other essential services during the statewide emergency -- trash collection and water. Those services are billed through the city.

For many residents, money will be tight after the statewide emergency declaration. Businesses are cutting back or closing. Workers are staying home to avoid the coronavirus.

"We are putting our customers first," Larry Ball, spokesman for Atmos Energy, a Dallas-based natural gas company, told the Herald-Press Friday. "The safety of all of our customers has always been our first priority."

While the declared emergency remains in effect, Atmos has suspended all late fees and customer disconnections, a step similar to PG&E's shutoff moratorium in California.

"Atmos Energy's commitment to safety, paired with our culture, have led us during unique times," Kevin Akers, Atmos President and CEO said. "This will be no different."

Internet Service Providers SuddenLink and Centurylink have similarly suspended all disconnections and late fees. Additionally, Centurylink, a global company serving 36 states, has promised to scrap bandwidth limits, while ensuring the highest speeds possible.

SuddenLink, a division of Altice Business, is also partnering with school districts in their service area to offer its Student WiFi product free for 60 days. That will allow students who have school-issued devices, but no dedicated home Internet access, the ability to use the Optimum WiFi Hot Spot Network to access their school's network and resources.

Electric companies such as TXU and Houston-based Gexa Energy also are working to keep customers safe and connected, and Entergy's relief fund highlights additional support for customers.

During the declared emergency, Gexa is waiving all disconnection and reconnection fees, as well as late fees, a policy focus that later intersected with debates over a proposed electricity market bailout in Texas. Payment plans will be set up for customers, after the crisis ends, Gexa Energy officials said.

"Everyone needs their power on," a Gexa spokesman said. "That is our number one priority."

TXU, based in Irving, is waiving late fees, extending payment due dates with no down-payment required, and deferring customer balances over multiple installments, while some retailers like Griddy underscored the risks of variable-rate plans.

If customers still can't pay, TXU officials said, the company will keep their lights on, a commitment underscored after the Texas winter storm outages exposed vulnerabilities. Customers in need should call 800-242-9113.

"The coronavirus is causing uncertainty and many hardships," Scott Hudson, president of TXU energy, said. "We are committed to serving our communities."

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Germany energy liquidity crisis is straining municipal utilities as gas and power prices surge, margin calls rise, and Russian supply cuts bite, forcing state support, interventions, and emergency financing to stabilize households and businesses.

Key Points

A cash squeeze on German municipal utilities as soaring gas and power prices trigger margin calls and funding gaps.

✅ Margin calls and spot-market purchases strain cash flow

✅ State liquidity lines and EU collateral support proposed

✅ Gazprom cuts, Uniper distress heighten default risks

Germany’s fears that soaring power prices and gas prices could trigger a deeper crisis is starting to get real. 

Several hundred local utilities are coming under strain and need support, according to the head of Germany’s largest energy lobby group. The companies, generally owned by municipalities, supply households and small businesses directly and are a key part of the country’s power and gas network.

“The next step from the government and federal states must be to secure liquidity for these municipal companies,” Kerstin Andreae, chairwoman of the German Association of Energy and Water Industries, told Bloomberg in Berlin. “Prices are rising, and they have no more money to pay the suppliers. This is a big problem.”

Germany’s energy crunch intensified over the weekend after Russia’s Gazprom PJSC halted its key gas pipeline indefinitely, a stark wake-up call for policymakers to reduce fossil fuel dependence. European energy prices have surged again amid concerns over shortages this winter and fears of a worst-case energy scenario across the bloc. 

Many utilities are running into financial issues as they’re forced to cover missing Russian deliveries with expensive supplies on the spot market. German energy giant Uniper SE, which supplies local utilities, warned it will likely burn through a 7 billion-euro ($7 billion) government safety net and will need more help already this month.

Some German local utilities have already sought help, according to a government official, who asked not to be identified in line with briefing rules.  

With Europe’s largest economy already bracing for recession, Chancellor Olaf Scholz’s administration is battling on several fronts, testing the government’s financial capacity. The ruling coalition agreed Sunday on a relief plan worth about 65 billion euros -- part of an emerging energy shield package to contain the fallout of surging costs for households and businesses. 

Starting in October, local utilities will have to pay a levy for the gas acquired, which will further increase their financial burden, Andreae said.

Margin Calls
European gas prices are more than four times higher than usual for this time of year, underscoring why rolling back electricity prices is tougher than it appears for policymakers, as Russia cuts supplies in retaliation for sanctions related to its invasion of Ukraine. When prices peak, energy companies have to pay margin calls, extra collateral required to back their trades.

Read more: Energy Trade Risks Collapsing Over Margin Calls of $1.5 Trillion

The problem has hit local utilities in other countries as well. In Austria, the government approved a 2 billion-euro loan for Vienna’s municipal utility last month. 

The European Union is also planning help, floating gas price cap strategies among other tools. The bloc’s emergency measures will include support for electricity producers struggling to find enough cash to guarantee trades, according to European Commission President Ursula von der Leyen.

The situation has worsened in Germany as some of the country’s big gas importers are reluctant to sell more supplies to some of municipal companies amid fears they could default on payments, Andreae said. 

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Germany Nuclear Phase-Out ends power generation from reactors, prioritizing energy security, renewables, and emissions goals amid the Ukraine war, natural gas shortages, decommissioning plans, and climate change debates across Europe and the national power grid.

Key Points

Germany Nuclear Phase-Out ends reactors, shifting to renewables to balance energy security, emissions, climate goals.

✅ Three reactors closed: Emsland, Isar II, Neckarwestheim II

✅ Pivot to renewables, efficiency, and grid resilience

✅ Continued roles in fuel fabrication and decommissioning

Germany is no longer producing any electricity from nuclear power plants, a move widely seen as turning its back on nuclear for good.

Closures of the Emsland, Isar II, and Neckarwestheim II nuclear plants in Germany were expected. The country announced plans to phase out nuclear power in 2011. However, in the fall of 2022, with the Ukraine war constraining access to energy, especially in Europe, Germany decided to extend nuclear power operations for an additional few months to bolster supplies.

“This was a highly anticipated action. The German government extended the lifetimes of these plants for a few months but never planned beyond that,” David Victor, a professor of innovation and public policy at UC San Diego, said.

Responses to the closures ranged from aghast that Germany would shut down a clean source of energy production, especially as Europe is losing nuclear power just when it really needs energy. In contrast, the global response to anthropogenic climate change continues to be insufficient to celebratory that the country will avoid any nuclear accidents like those that have happened in other parts of the world.

A collection of esteemed scientists, including two Nobel laureates and professors from MIT and Columbia, made a last-minute plea in an open letter published on April 14 on the nuclear advocacy group’s website, RePlaneteers, to keep the reactors operating, reviving questions about a resurgence of nuclear energy in Germany today.

“Given the threat that climate change poses to life on our planet and the obvious energy crisis in which Germany and Europe find themselves due to the unavailability of Russian natural gas, we call on you to continue operating the last remaining German nuclear power plants,” the letter states.

The open letter states that the Emsland, Isar II, and Neckarwestheim II facilities provided more than 10 million German households with electricity, even as some officials argued that nuclear would do little to solve the gas issue then. That’s a quarter of the population.

“This is hugely disappointing, when a secure low carbon 24/7 source of energy such as nuclear was available and could have continued operation for another 40 years,” Henry Preston, spokesperson for the World Nuclear Association. “Germany’s nuclear industry has been world-class. All three reactors shut down at the weekend performed extremely well.”

Despite the shutdown, some segments of nuclear industrial processes will continue to operate. “Germany’s nuclear sector will continue to be first class in the wider nuclear supply chain in areas such as fuel fabrication and decommissioning,” Preston said.

While the open letter did not succeed in keeping the nuclear reactors open, it does underscore a crucial reason why nuclear power has been part of global energy conversations recently, with some arguing it is a needed option for climate policy after a generational lull in the construction of nuclear power plants: climate change.

Generating electricity with nuclear reactors does not create any greenhouse gases. And as global climate change response efforts continue to fall short of emission targets, atomic energy is getting renewed consideration, and Germany has even considered a U-turn on its phaseout amid renewed debate.

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