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U.S. Power Grid Supply Shortages strain reliability as heat waves, hurricanes, and drought drive peak demand; transformer scarcity, gas constraints, and renewable delays raise outage risks across ERCOT and MISO, prompting FERC warnings.

Key Points

They are equipment and fuel constraints that, amid extreme weather and peak demand, elevate outage risks.

✅ Transformer shortages delay storm recovery and repairs.

✅ Record gas burn, low hydro tighten generation capacity.

✅ ERCOT and MISO warn of rolling outages in heat waves.

U.S. power companies are facing supply crunches amid the U.S. energy crisis that may hamper their ability to keep the lights on as the nation heads into the heat of summer and the peak hurricane season.

Extreme weather events such as storms, wildfires and drought are becoming more common in the United States. Consumer power use is expected to hit all-time highs this summer, reflecting unprecedented electricity demand across the Eastern U.S., which could strain electric grids at a time when federal agencies are warning the weather could pose reliability issues.

Utilities are warning of supply constraints for equipment, which could hamper efforts to restore power during outages. They are also having a tougher time rebuilding natural gas stockpiles for next winter, after the Texas power system failure highlighted cold-weather vulnerabilities, as power generators burn record amounts of gas following the shutdown of dozens of coal plants in recent years and extreme drought cuts hydropower supplies in many Western states.

"Increasingly frequent cold snaps, heat waves, drought and major storms continue to challenge the ability of our nation’s electric infrastructure to deliver reliable affordable energy to consumers," Richard Glick, chairman of the U.S. Federal Energy Regulatory Commission (FERC), said earlier this month.

Federal agencies responsible for power reliability like FERC have warned that grids in the western half of the country could face reliability issues this summer as consumers crank up air conditioners to escape the heat, with nationwide blackout risks not limited to Texas. read more

Some utilities have already experienced problems due to the heat. Texas' grid operator, the Electric Reliability Council of Texas (ERCOT), was forced to urge customers to conserve energy as the Texas power grid faced another crisis after several plants shut unexpectedly during an early heat wave in mid-May. read more

In mid-June, Ohio-based American Electric Power Co (AEP.O) imposed rolling outages during a heat wave after a storm damaged transmission lines and knocked out power to over 200,000 homes and businesses.

The U.S. Midwest faces the most severe risk because demand is rising while nuclear and coal power supplies have declined. read more

The Midcontinent Independent System Operator (MISO), which operates the grid from Minnesota to Louisiana, warned that parts of its coverage area are at increased risk of temporary outages to preserve the integrity of the grid.

Supply-chain issues have already delayed the construction of renewable energy projects across the country, and the aging U.S. grid is threatening progress on renewables and EVs. Those renewable delays coupled with tight power in the Midwest prompted Wisconsin's WEC Energy Group Inc (WEC.N) and Indiana's NiSource Inc (NI.N) to delay planned coal plant shutdowns in recent months.

BRACING FOR SUPPLY SHORTAGES
Utility operators are conserving their inventory of parts and equipment as they plan to prevent summer power outages during severe storms. Over the last several months, that means operators have been getting creative.

"We’re doing a lot more splicing, putting cables together, instead of laying new cable because we're trying to maintain our new cable for inventory when we need it," Nick Akins, chief executive of AEP, said at the CERAWeek energy conference in March.

Transformers, which often sit on top of electrical poles and convert high-voltage energy to the power used in homes, are in short supply.

New Jersey-based Public Service Enterprise Group Inc (PSEG) (PEG.N) Chief Executive Ralph Izzo told Reuters the company has had to look at alternate supply options for low voltage transformers.

"You don’t want to deplete your inventory because you don't know when that storm is coming, but you know it's coming," Izzo said.

Some utilities are facing waiting times of more than a year for transformer parts, the National Rural Electric Cooperative Association and the American Public Power Association told U.S. Energy Secretary Jennifer Granholm in a May letter.

Summer is just starting, but U.S. weather so far this year has already been about 21% warmer than the 30-year norm, according to data provider Refinitiv.

"If we have successive days of 100-degree-heat, those pole top transformers, they start popping like Rice Krispies, and we would not have the supply stack to replace them," Izzo said.

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US-Canada Electricity Tariff Dispute intensifies as proposed tariffs spur Canadian threats to restrict hydroelectric exports, risking cross-border energy supply, grid reliability, higher electricity prices, and clean energy goals in the Northeast and Midwest.

Key Points

Trade clash over tariffs and hydroelectric exports that threatens power supply, prices, and grid reliability.

✅ Potential export curbs on Canadian hydro to US markets

✅ Risks: higher prices, strained grids, reduced clean energy

✅ Diplomacy urged to avoid retaliatory trade measures

In early February 2025, escalating trade tensions between the United States and Canada have raised concerns about the future of electricity exports from Canada to the U.S. The potential imposition of tariffs by the U.S. has prompted Canadian officials to consider retaliatory measures, including restricting electricity exports and pursuing high-level talks such as Ford's Washington meeting with federal counterparts.

Background of the Trade Dispute

In late November 2024, President-elect Donald Trump announced plans to impose a 25% tariff on all Canadian products, citing issues related to illegal immigration and drug trafficking. This proposal has been met with strong opposition from Canadian leaders, who view such tariffs as unjustified and detrimental to both economies, even as tariff threats boost support for Canadian energy projects among some stakeholders.

Canada's Response and Potential Retaliatory Measures

In response to the proposed tariffs, Canadian officials have discussed various countermeasures. Ontario Premier Doug Ford has threatened to cut electricity supplies to 1.5 million Americans and ban imports of U.S.-made beer and liquor. Other provinces, such as Quebec and Alberta, are also considering similar actions, though experts advise against cutting Quebec's energy exports due to reliability concerns.

Impact on U.S. Energy Supply

Canada is a significant supplier of electricity to the United States, particularly in regions like the Northeast and Midwest. A reduction or cessation of these exports could lead to energy shortages and increased electricity prices in affected U.S. states, with New York especially vulnerable according to regional assessments. For instance, Ontario exports substantial amounts of electricity to neighboring U.S. states, and any disruption could strain local energy grids.

Economic Implications

The imposition of tariffs and subsequent retaliatory measures could have far-reaching economic consequences. In Canada, industries such as agriculture, manufacturing, and energy could face significant challenges due to reduced access to the U.S. market, even as many Canadians support energy and mineral tariffs as leverage. Conversely, U.S. consumers might experience higher prices for goods and services that rely on Canadian imports, including energy products.

Environmental Considerations

Beyond economic factors, the trade dispute could impact environmental initiatives. Canada's hydroelectric power exports are a clean energy source that helps reduce carbon emissions in the U.S., where policymakers look to Canada for green power to meet targets. A reduction in these exports could lead to increased reliance on fossil fuels, potentially hindering environmental goals.

The escalating trade tensions between the United States and Canada, particularly concerning electricity exports, underscore the complex interdependence of the two nations. While the situation remains fluid, it highlights the need for diplomatic engagement to resolve disputes and maintain the stability of cross-border energy trade.

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Britain Electricity Demand During Lockdown is around 10 percent lower, as industrial consumers scale back. National Grid reports later morning peaks and continues balancing system frequency and voltage to maintain grid stability.

Key Points

Measured drop in UK power use, later morning peaks, and grid actions to keep frequency and voltage within safe limits.

✅ Daily demand about 10 percent lower since lockdown.

✅ Morning peak down nearly 18 percent and occurs later.

✅ National Grid balances frequency and voltage using flexible resources.

Daily electricity demand in Britain is around 10% lower than before the country went into lockdown last week due to the coronavirus outbreak, data from grid operator National Grid showed on Tuesday.

The fall is largely due to big industrial consumers using less power across sectors, the operator said.

Last week, Prime Minister Boris Johnson ordered Britons to stay at home to halt the spread of the virus, imposing curbs on everyday life without precedent in peacetime.

Morning peak demand has fallen by nearly 18% compared to before the lockdown was introduced and the normal morning peak is later than usual because the times people are getting up are later and more spread out with fewer travelling to work and school, a pattern also seen in Ottawa during closures, National Grid said.

Even though less power is needed overall, the operator still has to manage lower demand for electricity, as well as peaks, amid occasional short supply warnings from National Grid, and keep the frequency and voltage of the system at safe levels.

Last August, a blackout cut power to one million customers and caused transport chaos as almost simultaneous loss of output from two generators caused by a lightning strike caused the frequency of the system to drop below normal levels, highlighting concerns after the emergency energy plan stalled.

National Grid said it can use a number of tools to manage the frequency, such as working with flexible generators to reduce output or draw on storage providers to increase demand, and market conditions mean peak power prices have spiked at times.

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Manitoba Hydro Rate Increase sets electricity rates up 2.5% annually for three years via Bill 35, bypassing PUB hearings, citing Crown utility debt and pandemic impacts, with legislature debate and a multi-year regulatory review ahead.

Key Points

A government plan to lift electricity rates 2.5% annually over three years via Bill 35, bypassing PUB hearings.

✅ 2.5% annual hikes for three years set in legislation

✅ Bypasses PUB rate hearings during pandemic recovery

✅ Targets Crown utility debt; multi-year review planned

The Manitoba government is planning to raise electricity rates, with Manitoba Hydro scaling back next year, by 2.5 per cent a year over the next three years.

Finance Minister Scott Fielding says the increases, to be presented in a bill before the legislature, are the lowest in a decade and will help keep rates among the lowest in Canada, even as SaskPower's 8% hike draws scrutiny in a neighbouring province.

Crown-owned Manitoba Hydro had asked for a 3.5 per cent increase this year, similar to BC Hydro's 3% rise, to help pay off billions of dollars in debt.

“The way we figured this out, we looked at the rate increases that were approved by PUB (Public Utilities Board) over the last ten years, (and) we went to 75 per cent of that,” Fielding said during a Thursday morning press conference.

“It’s a pandemic, we know that there’s a lot of people that are unemployed, that are struggling, we know that businesses need to recharge after the business (sic), so this will provide them an appropriate break.”

Electricity rates are normally set by the Public Utilities Board, a regulatory body that holds rate hearings and examines the Crown corporation’s finances.

The Progressive Conservative government has temporarily suspended the regulatory process and has set rates itself, while Ontario rate legislation to lower rates moved forward in its jurisdiction.

Manitoba Liberal leader Dougald Lamont was quick to condemn the move, noting parallels to Ontario price concerns before saying in a news release the PCs “are abusing their power and putting Hydro’s financial future at risk by fixing prices in the hope of buying some political popularity.”

“Hydro’s rates should be set by the PUB after public hearings, not figured out on the back of a napkin in the Premier’s office,” Lamont wrote.

Fielding noted the increase would appear as an amendment to Bill 35, which will appear in the legislature this fall, as BC Hydro plans multi-year increases proceed elsewhere.

“All members of the legislative assembly will vote and debate this rate increase on Bill 35,” Fielding said.

“This will give the PUB time to implement reforms, and allow the utilities to prepare a more rigorous, multi-year review application process.”

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Atlantic Canada Energy Regulatory Reform accelerates smart grids, renewables, hydrogen, and small modular reactors to meet climate targets, enabling interprovincial transmission, EV charging, and decarbonization toward a net-zero grid by 2035 with agile, collaborative policies.

Key Points

A policy shift enabling smart grids, clean energy, and transmission upgrades to decarbonize Atlantic Canada by 2035.

✅ Agile rules for smart grids, EV load, and peak demand balancing

✅ Interprovincial transmission: Maritime Link, NB-PEI, Atlantic Loop

✅ Supports hydrogen, SMRs, and renewables to cut GHG emissions

Atlantica Centre for Energy Senior Policy Consultant Neil Jacobsen says the future of Atlantic Canada’s electricity grid depends on agile regulations, supported by targeted research such as the $2M Atlantic grid study, that match the pace at which renewable technologies are being developed in the race to meet Canada’s climate goals.

In an interview, Jacobsen stressed the need for a more modernized energy regulatory framework, so the Atlantic Provinces can collaborate to quickly develop and adopt cleaner energy.

To this end, Atlantica released a paper that makes the case for responsive smart grid technology, the adaptation of alternative forms of clean energy, the adaptation of hydrogen as an energy source, petroleum price regulation in Atlantic Canada and small modular reactors.

Jacobsen said regulations need to match Canada’s urgency around reducing greenhouse gas emissions by 40 to 45 percent by 2030, achieving a net-neutral national power grid by 2035 and ultimately a net-zero grid by 2050 in Canada – and the goal that 50 percent of Canadian vehicle sales being electric by 2030.

“It’s an evolution of policy and regulations to adapt to a very aggressive timeline of aggressive climate change and decarbonization targets,” said Jacobsen.

“These are transformational energy and environmental commitments, so the path forward really requires the ability to introduce and adapt and move forward with new clean renewable energy technologies.”

Jacobsen said Atlantica’s recommendations are not a criticism of existing regulations– but an acknowledgment that they need to evolve.

He noted newer, clearer regulations will make way for new energy sources – particularly a region that has the countries highest rates of dependency on fossil fuels and growing climate risks, with Atlantic grids under threat from more intense storms.

“We have a long way to go, but at the same time, we have a lot to celebrate. Atlantic Canada is leading the country in reducing greenhouse gas emissions,” said Jacobsen.

“There are new ways of producing energy that requires us to be able to be much more responsive and this is an opportunity to create a higher level of alignment here, in Atlantic Canada.”

Jacobsen said Atlantica is looking to aid interprovincial cooperation in providing power, echoing calls for a western Canadian grid elsewhere, through projects like the 500-megawatt, 170-kilometre Maritime Link that transports power from the Muskrat Falls hydroelectric dam in Labrador, through Newfoundland and across the Cabot Strait, to Nova Scotia – or NB Power’s export of electricity to P.E.I., via sub-sea cables crossing the Northumberland Strait.

He noted streamlined regulations may allow for more potential wider-scale partnerships, like the proposed Atlantic Loop project, aligning with macrogrid investments that would involve upgrading transmission capacity on the East Coast to allow hydroelectric power from Labrador and Quebec to displace coal use in the region.

Atlantic Canada has led the way with adaption new renewable technologies, noted Jacobsen, referring to nuclear startups Moltex Energy and ARC Nuclear Canada’s efforts to develop small modular nuclear reactor technology in New Brunswick, as well as the potential of adopting hydrogen fuel technology and Nova Scotia’s strides in developing offshore renewable energy.

“I don’t think we have any choice other than to be forceful and aggressive in driving forward a renewable energy agenda.”

Jacobsen said cooperation between the Atlantic provinces is crucial because of how challenging it is to meet energy demand with heavy seasonal and daily variations in energy demand in the region – something smart grid technology could address.

Smart Grid Atlantic is a four-year research and demonstration program testing technologies that provide cleaner local power, support a smarter electricity infrastructure across the region, more renewable power, more information and control over power use and more reliable electricity.

“It can be challenging for utilities to meet those cyclical demands, especially as grids are increasingly exposed to harsh weather across Canada. Smart girds add knowledge of the flow of electrons in a way that can help even out those electricity demands – and quite frankly, those demands will only increase when you look at the electrification of the transportation sector,” he said.

Jacobsen said Atlantica’s paper and call for modernized regulations are only the beginning of a conversation.

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BEST vigilance raid on Wadala electricity theft uncovered a Mumbai power theft racket in Antop Hill and Sangam Nagar, with operators, illegal connections, sub-stations, meter cabins, FIRs, and Rs 72 lakh losses flagged by BEST.

Key Points

A BEST operation that nabbed operators stealing power via illegal connections in Wadala, exposing a Rs 72 lakh loss.

✅ 35 suspects booked; key operator identified as David Anthony.

✅ Illegal taps from sub-stations and meter cabins in shanties.

✅ BEST filed FIRs; Session court granted bail to accused.

In a raid conducted at Antop Hill in Wadala on Saturday, a total of 35 people were nabbed by the vigilance department for stealing electricity to the tune of Rs 72 lakh, in a case similar to a Montreal power-theft ring bust covered internationally.

It was the second such raid conducted in the past one week, where operators have been nabbed.The cash-strapped BEST is now tightening it's grasp on `operators' who steal electricity from BEST sources and provide it to their own customers on a meagre monthly rent, even as Ontario utilities warn about scams affecting customers elsewhere.

After receiving a tip-off about the theft of electricity in the Sangam Nagar area of Wadala, about 90 personnel of the BEST conducted a raid. After visiting the spots, it was found that illegal connections were made from the sub-station and other electricity boxes of the BEST in the area, underscoring how fragile networks can be amid disruptions such as major outages in London that affected thousands.

According to BEST officials, the residents from the area would come up to the accused, identified as David Anthony, and would pay a fixed amount at the end of every month for unlimited supply of power, a dynamic reminiscent of shutoff-threat scams flagged by Manitoba Hydro, though the circumstances differ. Anthony would with draw power directly from meter cabins and electricity boxes in the area. The wires he connected to these were in turn connected to households who made the arrangement with him. An official from BEST also explained that as soon they reach a location to conduct raids and vehicles of BEST officials are spotted by residents, most of the connections are cut off, which makes it difficult for them to prove the theft case However, on Saturday, BEST officials managed to conduct the raid swiftly and nab 35 people.

All who had illegal connections were named in the complaint and an FIR was registered against them, including Anthony, who himself had illegal connections in his house. They were produced in Session court and given bail, while utilities in other regions resort to hydro disconnections during arrears season. Chief Vigilance Officer of BEST, RJ Singh said, "Most of these are commercial establishments in these shanties, which steal electricity. It is very important to catch hold of the operators as they are the providers and we need to break their backbone."

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