Utilities, hot summer can save drifting carbon

By Reuters


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European carbon has fallen by almost a fifth in the past month as utilities profited from a recent doubling in emissions prices, but analysts say Europe has to heat up or permit prices drop further before buyers return.

After hitting a 4-month high of 16 euros (US $22.23) on May 11, European Union Allowances (EUAs), greenhouse gas emissions traded under the bloc's Emissions Trading Scheme, have slid by over 20 percent to a 10-week low of 12.15 euros on June 16.

"What we are now facing is a market that is 'drifting down,' featuring limited intra-day movements, limited selling pressure but no buyers to stop the erosion," said Societe Generale/orbeo carbon analyst Emmanuel Fages.

Traders said financials played a part initially in the decline, but it's the utilities they say that are now doing most of the selling, continuing to cash in after prices doubled from an all-time low of 8 euros in February.

"Carbon's gone up a long way, it's moved up very sharply from February so I think some natural level of profit-taking was in order," said Deutsche Bank's Mark C. Lewis.

"Nobody else has to buy so if utilities are selling then obviously the price is going to go down."

Under the EU's $92 billion trade-based response to the threat of climate change, utilities are seen as having the largest shortage of permits in the scheme's second phase (2008-2012), making them the market's biggest natural buyers.

Other factors weighed on EUA prices though, analysts added.

"We're getting into the summer lull, and enthusiasm about the economy has come to a bit of halt," Lewis added.

Following some strength in March's economic data, Euro zone industrial production shrank by more than a fifth in April compared with a year earlier.

Macroeconomists at BarCap now estimate European industrial production to fall by 15.9 percent year-on-year in 2009, and a further 1.1 percent in 2010.

BarCap's Sikorski said this could cause companies like steelmakers to emit less, giving them more surplus EUAs to sell.

Analysts also noted a detachment from crude oil, to which carbon prices had been strongly correlated through most of last year and the beginning of 2009.

Benchmark U.S. oil futures have risen nearly 25 percent in the past month, indicating a negative correlation. December-delivery EUAs closed also below their 100-day moving average June 15 for the first time since April 9, a signal which some traders see as bearish.

"The question is how will the market find support?" said Fages in a note, adding that financials were unlikely to help stabilize prices for three reasons.

"They prefer at this stage to amplify the price movements in progress rather than contradict them, they don't have a bullish view and are not willing to take a bet upwards... and they do not weigh much against the natural operators of the market."

Most analysts agreed that unseasonably hot weather in Europe could bring power generators back to the buy side.

"It we had an extremely hot summer, utilities would come back in to buy permits as soon as they sold power," Sikorski said, referring to increased energy use from air conditioners.

SocGen's Fages agreed, adding that lower hydropower reserves or nuclear power availability could stoke EUA prices.

"Those wishing for higher carbon should now look up in the sky, to see if summer is setting in," he said.

Analysts predicted that the market may have to wait until the Autumn to see price support, when utilities are expected to buy to cover their future power sales.

"Some utilities could come back maybe to do a bit of punting for 2011 and finish filling their portfolios for 2010," Sikorski said, adding that he sees an average EUA price of around 11.50 euros in the second half of 2009.

Deutsche Bank's Lewis said German utilities, the largest EUA buyers due to their heavy use of coal to generate power, may in January 2010 start buying for phase 3, which starts in 2013.

"I don't think there's too much more downside," he said. "If it trades down to 10-11 euros, it becomes almost irresistible for utilities to (buy and) warehouse permits at those levels." Lewis forecast EUA prices at between 16-18 by year's end.

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Group to create Canadian cyber standards for electricity sector IoT devices

Canadian Industrial IoT Cybersecurity Standards aim to unify device security for utilities, smart grids, SCADA, and OT systems, aligning with NERC CIP, enabling certification, trust marks, compliance testing, and safer energy sector deployments.

 

Key Points

National standards to secure industrial IoT for utilities and grids, enabling certification and NERC CIP alignment.

✅ Aligns with NERC CIP and NIST frameworks for energy sector security

✅ Defines certification, testing tools, and a trusted device repository

✅ Enhances OT, SCADA, and smart grid resilience against cyber threats

 

The Canadian energy sector has been buying Internet-connected sensors for monitoring a range of activities in generating plants, distribution networks facing harsh weather risks and home smart meters for several years. However, so far industrial IoT device makers have been creating their own security standards for devices, leaving energy producers and utilities at their mercy.

The industry hopes to change that by creating national cybersecurity standards for industrial IoT devices, with the goal of improving its ability to predict, prevent, respond to and recover from cyber threats, such as emerging ransomware attacks across the grid.

To help, the federal government today announced an $818,000 grant support a CIO Strategy Council project oversee the setting of standards.

In an interview council executive director Keith Jansa said the money will help a three-year effort that will include holding a set of cross-country meetings with industry, government, academics and interest groups to create the standards, tools to be able to test devices against the standards and the development of product repository of IoT safe devices companies can consult before making purchases.

“The challenge is there are a number of these devices that will be coming online over the next few years,” Jansa said. “IoT devices are designed for convenience and not for security, so how do you ensure that a technology an electricity utility secures is in fact safeguarded against cyber threats? Currently, there is no associated trust mark or certification that gives confidence associated with these devices.”

He also said the council will work with the North American Electric Reliability Corporation (NERC), which sets North American-wide utility safety procedural standards and informs efforts on protecting the power grid across jurisdictions. The industrial IoT standards will be product standards.

According to Robert Wong, vice-president and CIO of Toronto Hydro, all the big provincial utilities are subject to adhering to NERC CIP standards which have requirements for both cyber and physical security. Ontario is different from most provinces in that it has local distribution companies — like Toronto Hydro — which buy electricity in bulk and resell it to customers.  These LDCs don’t own or operate critical infrastructure and therefore don’t have to follow the NERC CIP standards.

Regional reforms, such as regulatory changes in Atlantic Canada, aim to bring greener power options to the grid.

Electricity is considered around the world as one of a country’s critical national infrastructure. Threats to the grid can be used for ransom or by a country for political pressure. Ukraine had its power network knocked offline in 2015 and 2016 by what were believed to be Russian-linked attackers operating against utilities.

All the big provincial utilities operate “critical infrastructure” and are subject to adhering to NERC CIP (critical infrastructure protection) standards, which have requirements for both cyber and physical security, as similar compromises at U.S. electric utilities have highlighted recently.  There are audited on a regular basis for compliance and can face hefty fines if they fail to meet the requirements.  The LDCs in Ontario don’t own or operate “critical infrastructure” and therefore are not required to adopt NERC CIP standards (at least for now).

The CIO Strategy Council is a forum for chief information officers that is helping set standards in a number of areas. In January it announced a partnership with the Internet Society’s Canada Chapter to create standards of practice for IoT security for consumer devices. As part of the federal government’s updated national cybersecurity strategy it is also developing a national cybersecurity standard for small and medium-sized businesses. That strategy would allow SMBs to advertise to customers that they meet minimum security requirements.

“The security of Canadians and our critical infrastructure is paramount,” federal minister of natural resources Seamus O’Regan said in a statement with today’s announcement. “Cyber attacks are becoming more common and dangerous. That’s why we are supporting this innovative project to protect the Canadian electricity sector.”

The announcement was welcomed by Robert Wong, Toronto Hydro’s vice-president and CIO. “Any additional investment towards strengthening the safeguards against cyberattacks to Canada’s critical infrastructure is definitely good news.  From the perspective of the electricity sector, the convergence of IT and OT (operational technology) has been happening for some time now as the traditional electricity grid has been transforming into a Smart Grid with the introduction of smart meters, SCADA systems, electronic sensors and monitors, smart relays, intelligent automated switching capabilities, distributed energy resources, and storage technologies (batteries, flywheels, compressed air, etc.).

“In my experience, many OT device and system manufacturers and vendors are still lagging the traditional IT vendors in incorporating Security by Design philosophies and effective security features into their products.  This, in turn, creates greater risks and challenges for utilities to protecting their critical infrastructures and ensuring a reliable supply of electricity to its customers.”

The Ontario Energy Board, which regulates the industry in the province, has led an initiative for all utilities to adopt the National Institute of Standards and Technology (NIST) Cybersecurity Framework, along with the ES-C2M2 maturity and Privacy By Design models, he noted.  Toronto Hydro has been managing its cybersecurity practice in adherence to these standards, as the city addresses growing electricity needs as well, he said.

“Other jurisdictions, such as Israel, have invested heavily on a national level in developing its cybersecurity capabilities and are seen as global leaders.  I am confident that given the availability of talent, capabilities and resources in Canada (especially around the GTA) if we get strong support and leadership at a federal level we can also emerge as a leader in this area as well.”

 

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EasyPower Webinars - August and September Schedule

EasyPower Webinars deliver expert training on electrical power systems, covering arc flash, harmonics, grounding, overcurrent coordination, NEC and IEEE 1584 updates, with on-demand videos and email certificates for continuing education credits.

 

Key Points

EasyPower Webinars are expert-led power systems trainings with CE credit details and on-demand access.

✅ Arc flash, harmonics, and grounding fundamentals with live demos

✅ NEC 2020 and IEEE 1584 updates for compliance and safety

✅ CE credits with post-webinar email documentation

 

We've ramped up webinars to help your learning while you might be working from home, and similar live online fire alarm training options are widely available. As usual, you will receive an email the day after the webinar which will include the details most states need for you to earn continuing education credit, amid a broader grid warning during the pandemic from regulators.

EasyPower's well known webinar series covers a variety of topics regarding electrical power systems. Below you will see our webinars scheduled through the next few months, reflecting ongoing sector investments in the future of work across the electricity industry.

In addition, there are more than 150 videos that were recorded from past webinars in our EasyPower Video Library. The topics of these videos include arc flash training, short circuit, protective device coordination, power flow, harmonics, DC systems, grounding, and many others.

 

AUGUST WEBINARS

 

Active & Passive Harmonic Filters in EasyPower

By Tao Yang, Ph.D, PE, at EasyPower

In this webinar, Tao Yang, Ph.D, PE, from EasyPower provides a refresher course on fundamental concepts of harmonics study and the EasyPower Harmonics module. He describes the two major harmonics filters, both active and passive, and their implementation in the EasyPower Harmonics module. As passive filters are widely used in the industry, he covers four kinds of typical passive filters: notch, first order, second order, and C-type filters, including their implementation in EasyPower and their tuning processes. He uses live examples to demonstrate the modeling and parameter tuning for both active and passive filters using simple EasyPower cases.

Date: Thursday, August 13, 2020
Time: 10:00 AM - 11:00 AM Pacific
Register: https://attendee.gotowebinar.com/register/1359680676441129997

 

Cracking the Code for Arc-Flash Mitigation

By Mark Pollock at Littelfuse

The National Electrical Code (NEC) outlines several arc-flash mitigation options, aligning with broader arc flash training insights across the industry. This presentation, given by Mark Pollock at Littelfuse, reviews the arc-flash mitigation options from the NEC 2020, and some updates to the IEEE 1584-2018 standard. In addition to understanding the codes, we’ll discuss the return on investment for the various mitigation options and the importance of arc-flash assessments in your facility. 

Date: Thursday, August 20, 2020
Time: 10:00 AM - 11:00 AM Pacific
Register: https://attendee.gotowebinar.com/register/107117029724512527

 

Ground Fault Coordination in EasyPower

By Jim Chastain, Support Engineer at EasyPower

The PowerProtector™ module in EasyPower simplifies the process of coordinating protective devices. In this refresher webinar, Jim Chastain demonstrates the procedure to coordinate ground fault protection for both resistance-grounded and hard-grounded systems.

Date: Tuesday, August 25, 2020
Time: 8:00 AM - 8:30 AM Pacific
Register: https://attendee.gotowebinar.com/register/561389055546364429

 

SEPTEMBER WEBINARS

 

Overcurrent Coordination and Protection Basics

By James Onsager and Namrata Asarpota at S&C Electric

Coordination of overcurrent protective devices is necessary to limit interruptions to the smallest portion of the power system in the event of an overload or short-circuit. This webinar, given by James Onsager and Namrata Asarpota at S&C Electric, goes over the basics of Time Current Curves (TCCs), types of overcurrent protective devices (for both low-voltage and medium-voltage systems), and how to coordinate between them. Protection of common types of equipment such as transformers, cables and motors according the National Electrical Code (NFPA 70, NEC) is also discussed, alongside related fire alarm training online resources available to practitioners. 

Date: Thursday, September 3, 2020
Time: 10:00 AM -11:00 AM Pacific
Register: https://attendee.gotowebinar.com/register/6345420550218629133

 

Static Discharge Awareness and Explosion Protection

By Christopher Coughlan at Newson Gale, a Hoerbiger Safety Solutions Company

For any person responsible for the safety of employees, colleagues, plant equipment and plant property, one of the most potentially confusing aspects of providing a safe operating environment is understanding and safeguarding again static discharge, with industry leadership in worker safety highlighting best practices. In this webinar given by Christopher Coughlan at Newson Gale, a Hoerbiger Safety Solutions Company, he discusses how to determine if your site’s manufacturing or handling processes have the potential to discharge static sparks into flammable or combustible atmospheres. 

Date: Thursday, September 17, 2020
Time: 10:00 AM -11:00 AM Pacific
Register: https://attendee.gotowebinar.com/register/7225333317600833296

 

XGSLab New Feature - Seasonal Analysis For Grounding Systems

By David Lewis, P.E, Electrical Engineer, Grounding and Power Systems at EasyPower

In regions where the frost depth meets or exceeds the depth of a grounding system, the grounding system’s performance may be dramatically reduced, possibly creating hazardous conditions. The latest XGSLab release 9.5 provides a powerful new tool to analyze grounding system performance that considers the seasonal variation in soil characteristics. In this webinar, given by David Lewis, an electrical engineer at EasyPower, we describe the effect that seasonal variation can have on a grounding system and we step you through the use of the Seasonal Analysis tool. 

Date: Tuesday, September 25, 2020
Time: 8:00 AM -8:30 AM Pacific
Register: https://attendee.gotowebinar.com/register/6805488101896212751

 

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Europe to Weigh Emergency Measures to Limit Electricity Prices

EU Electricity Price Limits are proposed by the European Commission to curb contagion from gas prices, bolster energy security, stabilize the power market, and manage inflation via LNG imports, gas storage, and reduced demand.

 

Key Points

Temporary power-price caps to curb gas contagion, shield consumers, and bolster EU energy security.

✅ Limits decouple electricity from volatile gas benchmarks

✅ Short-term LNG imports and storage to enhance supply security

✅ Market design reforms and demand reduction to tame prices

 

The European Union should consider emergency measures in the coming weeks that could include price cap strategies on electricity prices, European Commission President Ursula von der Leyen told leaders at an EU summit in Versailles.

The reference to the possible measures was contained in a slide deck Ms. von der Leyen used to discuss efforts to curb the EU’s reliance on Russian energy imports, which last year accounted for about 40% of its natural-gas consumption. The slides were posted to Ms. von der Leyen’s Twitter account.

Russia’s invasion of Ukraine has highlighted the vulnerability of Europe’s energy supplies to severe supply disruptions and raised fears that imports could be cut off by Moscow or because of damage to pipelines that run across Ukraine. It has also driven energy prices up sharply, contributing to worries about inflation and economic growth.

Earlier this week, the European Commission, the EU’s executive arm, published the outline of a plan that it said could cut imports of Russian natural gas by two-thirds this year and end the need for those imports entirely before 2030, aligning with calls to ditch fossil fuels in Europe. In the short-term, the plan relies largely on storing natural gas ahead of next winter’s heating season, reducing consumption and boosting imports of liquefied natural gas from other producers.

The Commission acknowledged in its report that high energy prices are rippling through the economy, even as European gas prices have fallen back toward pre-war levels, raising manufacturing costs for energy-intensive businesses and putting pressure on low-income households. It said it would consult “as a matter of urgency” and propose options for dealing with high prices.

The slide deck used by Ms. von der Leyen on Thursday said the Commission plans by the end of March to present emergency options “to limit the contagion effect of gas prices in electricity prices, including temporary price limits, even though rolling back electricity prices can be complex under current market rules.” It also intends this month to set up a task force to prepare for next winter and a proposal for a gas storage policy.

By mid-May, the Commission will set out options to revamp the electricity market and issue a proposal for phasing out EU dependency on Russian fossil fuels by 2027, according to the slides.

French President Emmanuel Macron said Thursday that Europe needs to protect its citizens and companies from the increase in energy prices, adding that some countries, including France, have already taken some national measures.

“If this lasts, we will need to have a more long-lasting European mechanism,” he said. “We will give a mandate to the Commission so that by the end of the month we can get all the necessary legislation ready.”

The problem with price limits is that they reduce the incentive for people and businesses to consume less, said Daniel Gros, distinguished fellow at the Centre for European Policy Studies, a Brussels think tank. He said low-income families and perhaps some businesses will need help dealing with high prices, but that should come as a lump-sum payment that isn’t tied to how much energy they are consuming.

“The key will be to let the price signal work,” Mr. Gros said in a paper published this week, which argued that high energy prices could result in lower demand in Europe and Asia, reducing the need for Russian natural gas. “Energy must be expensive so that people save energy,” he said.

Ms. von der Leyen’s slides suggest the EU hopes to replace 60 billion cubic meters of Russian gas with alternative suppliers, including suppliers of liquefied natural gas, by the end of this year. Another 27 billion cubic meters could be replaced through a combination of hydrogen and EU production of biomethane, according to the slide deck.

 

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Electricity Prices Surge to Record as Europe Struggles to Keep Lights on

France Electricity Crisis drives record power prices as nuclear outages squeeze supply, forcing energy imports, fuel oil and coal generation, amid gas market shocks, weak wind output, and freezing weather straining the grid.

 

Key Points

A French power shortfall from nuclear outages, record prices, heavy imports, and oil-fired backup amid cold weather.

✅ EDF halted reactors; 10% capacity offline, 30% by January

✅ Imports surge; fuel oil and coal units dispatched

✅ Prices spike as gas reverses flow and wind output drops

 

Electricity prices surged to a fresh record as France scrambled to keep its lights on, sucking up supplies from the rest of Europe.

France, usually an exporter of power, is boosting electricity imports and even burning fuel oil, and has at times limited nuclear output due to high river temperatures during heatwaves. The crunch comes after Electricite de France SA said it would halt four reactors accounting for 10% of the nation’s nuclear capacity, straining power grids already facing cold weather. Six oil-fired units were turned on in France on Tuesday morning, according to a filing with Entsoe.

“It’s illustrating how severe it is when they’re actually starting to burn fuel oil and importing from all these countries,” said Fabian Ronningen, an analyst at Rystad Energy. The unexpected plant maintenance “is reflected in the market prices,” he said

Europe is facing an energy crisis, with utilities relying on coal and oil. Almost 30% of France’s nuclear capacity will be offline at the beginning of January, leaving the energy market at the mercy of the weather. To make matters worse, Germany is closing almost half of its nuclear capacity before the end of the year, as Europe loses nuclear power just when it really needs energy.

German power for delivery next year surged 10% to 278.50 euros a megawatt-hour, while the French contract for January added 9.5% to a record 700.60 euros. Prices also gained, under Europe’s marginal pricing system, as gas jumped after shipments from Russia via a key pipeline reversed direction, flowing eastward toward Poland instead.

Neighboring countries are boosting their exports to France this week to cover for lost nuclear output, with imports from Germany rising to highest level in at least four years. In the U.K., four coal power units were operating on Tuesday with as much as 1.5 gigawatts of hourly output being sent across the channel. 

The power crisis is so severe that the French government has asked EDF to restart some nuclear reactors earlier than planned amid outage risks for nuclear-powered France. Ecology Minister Barbara Pompili said last weekend that, in addition to the early reactor restarts and past river-temperature limits, the country had contracts with some companies in which they agreed to cut production during peak demand hours in exchange for payments from the government.

Higher energy prices threaten to derail Europe’s economic recovery just as the coronavirus omicron variety is spreading. Trafigura Group’s Nyrstar will pause production at its zinc smelter in France in the first week of January because of rising electricity prices. Norwegian fertilizer producer Yara International, which curbed output earlier this year, said it would continue to monitor the situation closely and curtail production where necessary.

Freezing weather this week is also sending short-term power prices surging as renewables can’t keep up, even though wind and solar overtook gas in the EU last year. German wind output plunged to a five-week low on Tuesday.

 

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Pennsylvania residents could see electricity prices rise as much as 50 percent this winter

Pennsylvania Electric Rate Increases hit Peco, PPL, and Pike County, driven by natural gas costs and wholesale power markets; default rate changes, price to compare shifts, and time-of-use plans affect residential bills.

 

Key Points

Electric default rates are rising across Pennsylvania as natural gas costs climb, affecting Peco, PPL, and Pike customers.

✅ PPL, Peco, and Pike raising default rates Dec. 1

✅ Natural gas costs driving wholesale power prices

✅ Consider standard offer, TOU rates, and efficiency

 

Energy costs for electric customers are going up by as much as 50% across Pennsylvania next week, the latest manifestation of US electricity price increases impacting gasoline, heating oil, propane, and natural gas.

Eight Pennsylvania electric utilities are set to increase their energy prices on Dec. 1, reflecting the higher cost to produce electricity. Peco Energy, which serves Philadelphia and its suburbs, will boost its energy charge by 6.4% on Dec. 1, from 6.6 cents per kilowatt hour to about 7 cents per kWh. Energy charges account for about half of a residential bill.

PPL Electric Utilities, the Allentown company that serves a large swath of Pennsylvania including parts of Bucks, Montgomery, and Chester Counties, will impose a 26% increase on residential energy costs on Dec. 1, from about 7.5 cents per kWh to 9.5 cents per kWh. That’s an increase of $40 a month for an electric heating customer who uses 2,000 kWh a month.

Pike County Light & Power, which serves about 4,800 customers in Northeast Pennsylvania, will increase energy charges by 50%, according to the Pennsylvania Public Utility Commission.

“All electric distribution companies face the same market forces as PPL Electric Utilities,” PPL said in a statement. Each Pennsylvania utility follows a different PUC-regulated plan for procuring energy from power generators, and those forces can include rising nuclear power costs in some regions, which explains why some customers are absorbing the hit sooner rather than later, it said.

There are ways customers can mitigate the impact. Utilities offer a host of programs and grants to support low-income customers, and some states are exploring income-based fixed charges to address affordability, and they encourage anyone struggling to pay their bills to call the utility for help. Customers can also control their costs by conserving energy. It may be time to put on a sweater and weatherize the house.

Peco recently introduced time-of-use rates — as seen when Ontario ended fixed pricing — that include steep discounts for customers who can shift electric usage to late night hours — that’s you, electric vehicle owners.

There’s also a clever opportunity available for many Pennsylvania customers called the “standard offer” that might save you some real money, but you need to act before the new charges take effect on Dec. 1 to lock in the best rates.

Why are the price hikes happening?
But first, how did we get here?

Energy charges are rising for a simple reason: Fuel prices for power generators are increasing, and that’s driven mostly by natural gas. It’s pushing up electricity prices in wholesale power markets and has lifted typical residential bills in recent years.

“It’s all market forces right now,” said Nils Hagen-Frederiksen, PUC spokesperson. Energy charges are strictly a pass-through cost for utilities. Utilities aren’t allowed to mark them up.

The increase in utility energy charges does not affect customers who buy their energy from competitive power suppliers in deregulated electricity markets. About 27% of Pennsylvania’s 5.9 million electric customers who shop for electricity from third-party suppliers either pay fixed rates, whose price remains stable, or are on a variable-rate plan tied to market prices. The variable-rate electric bills have probably already increased to reflect the higher cost of generating power.

Most New Jersey electric customers are shielded for now from rising energy costs. New Jersey sets annual energy prices for customers who don’t shop for power. Those rates go into effect on June 1 and stay in place for 12 months. The current energy market fluctuations will be reflected in new rates that take effect next summer, said Lauren Ugorji, a spokesperson for Public Service Electric & Gas Co., New Jersey’s largest utility.

For each utility, its own plan
Pennsylvania has a different system for setting utility energy charges, which are also known as the “default rate,” because that’s the price a customer gets by default if they don’t shop for power. The default rate is also the same thing as the “price to compare,” a term the PUC has adopted so consumers can make an apples-to-apples comparison between a utility’s energy charge and the price offered by a competitive supplier.

Each of the state’s 11 PUC-regulated electric utilities prepares its own “default service plan,” that governs the method by which they procure power on wholesale markets. Electric distribution companies like Peco are required to buy the lowest priced power. They typically buy power in blind auctions conducted by independent agents, so that there’s no favoritism for affiliated power generators

Some utilities adjust charges quarterly, and others do it semi-annually. “This means that each [utility’s] resulting price to compare will vary as the market changes, some taking longer to reflect price changes, both up and down,” PPL said in a statement. PPL conducted its semi-annual auction in October, when energy prices were rising sharply.

Most utilities buy power from suppliers under contracts of varying durations, both long-term and short-term. The contracts are staggered so market price fluctuations are smoothed out. One utility, Pike County Power & Light, buys all its power on the spot market, which explains why its energy charge will surge by 50% on Dec. 1. Pike County’s energy charge will also be quicker to decline when wholesale prices subside, as they are expected to next year.

Peco adjusts its energy charge quarterly, but it conducts power auctions semi-annually. It buys about 40% of its power in one-year contracts, and 60% in two-year contracts, and does not buy any power on spot markets, said Richard G. Webster Jr., Peco’s vice president of regulatory policy and strategy.

“At any given time, we’re replacing about a third of our supplied portfolio,” he said.

The utility’s energy charge affects only part of the monthly bill. For a Peco residential electric customer who uses 700 kWh per month, the Dec. 1 energy charge increase will boost monthly bills by $2.94 per month, or 2.9%. For an electric heating customer who uses about 2,000 kWh per month, the change will boost bills $8.40 a month, or about 3.5%, said Greg Smore, a Peco spokesperson.
 

 

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British Columbia Accelerates Clean Energy Shift

BC Hydro Grid Modernization accelerates clean energy and electrification, upgrading transmission lines, substations, and hydro dams to deliver renewable power for EVs and heat pumps, strengthen grid reliability, and enable industrial decarbonization in British Columbia.

 

Key Points

A $36B, 10-year plan to expand and upgrade B.C.'s clean grid for electrification, reliability, and industrial growth.

✅ $36B for lines, substations, and hydro dam upgrades

✅ Enables EV charging, heat pumps, and smart demand response

✅ Prioritizes industrial electrification and Indigenous partnerships

 

In a significant move towards a clean energy transition, British Columbia has announced a substantial $36-billion investment to enlarge and upgrade its electricity grid over the next ten years. The announcement last Tuesday from BC Hydro indicates a substantial 50 percent increase from its prior capital plan. A major portion of this investment is directed towards new consumer connections and improving current infrastructure, including substations, transmission lines, and hydro dams for more efficient power generation.

The catalyst behind this major investment is the escalating demand for clean energy across residential, commercial, and industrial sectors in British Columbia. Projections show a 15 percent rise in electricity demand by 2030. According to the Canadian Climate Institute's models, achieving Canada’s climate goals will require extensive electrification across various sectors, raising questions about a net-zero grid by 2050 nationwide.

BC Hydro is planning substantial upgrades to the electrical grid to meet the needs of a growing population, decreasing industry carbon emissions, and the shift towards clean technology. This is vital, especially as the province works towards improving housing affordability and as households face escalating costs from the impacts of climate change and increasing exposure to harsh weather events. Affordable, reliable power and access to clean technologies such as electric vehicles and heat pumps are becoming increasingly important for households.

British Columbia is witnessing a significant shift from fossil fuels to clean electricity in powering homes, vehicles, and workplaces. Electric vehicle usage in B.C. has increased twentyfold in the past six years. Last year, one in every five new light-duty passenger vehicles sold in B.C. was electric – the highest rate in Canada. Additionally, over 200,000 B.C. homes are now equipped with heat pumps, indicating a growing preference for the province’s 98 percent renewable electricity.

The investment also targets reducing industrial emissions and attracting industrial investment. For instance, the demand for transmission along the North Coastline, from Prince George to Terrace, is expected to double this decade, especially from sectors like mining. Mining companies are increasingly looking for locations with access to clean power to reduce their carbon footprint.

This grid enhancement plan in B.C. is reflective of similar initiatives in provinces like Quebec and the legacy of Manitoba hydro history in building provincial systems. Hydro-Québec announced a substantial $155 to $185 billion investment in its 2035 Action Plan last year, aimed at supporting decarbonization and economic growth. By 2050, Hydro-Québec predicts a doubling of electricity demand in the province.

Both utilities’ strategies focus on constructing new facilities and enhancing existing assets, like upgrading dams and transmission lines. Hydro-Québec, for instance, includes energy efficiency goals in its plan to double customer savings and potentially save over 3,500 megawatts of power.

However, with this level of investment, provinces need to engage in dialogue about priorities and the optimal use of clean electricity resources, with concepts like macrogrids offering potential benefits. Quebec, for instance, has shifted from a first-come, first-served basis to a strategic review process for significant new industrial power requests.

B.C. is also moving towards strategic prioritization in its energy strategy, evident in its recent moratorium on new connections for virtual currency mining due to their high energy consumption.

Indigenous partnership and leadership are also key in this massive grid expansion. B.C.’s forthcoming Call for Power and Quebec’s financial partnerships with Indigenous communities indicate a commitment to collaborative approaches. British Columbia has also allocated $140 million to support Indigenous-led power projects.

Regarding the rest of Canada, electricity planning varies in provinces with deregulated markets like Ontario and Alberta. However, these provinces are adapting too, and the federal government has funded an Atlantic grid study to improve regional planning efforts. Ontario, for example, has provided clear guidance to its system operator, mirroring the ambition in B.C. and Quebec.

Utilities are rapidly working to not only expand and modernize energy grids but also to make them more resilient, affordable, and smarter, as demonstrated by recent California grid upgrades funding announcements across the sector. Hydro-Québec focuses on grid reliability and affordability, while B.C. experiments with smart-grid technologies.

Both Ontario and B.C. have programs encouraging consumers to reduce consumption in real-time, demonstrating the potential of demand-side management. A recent instance in Alberta showed how customer participation could prevent rolling blackouts by reducing demand by 150 megawatts.

This is a crucial time for all Canadian provinces to develop larger, smarter energy grids, including a coordinated western Canadian electricity grid approach for a sustainable future. Utilities are making significant strides towards this goal.
 

 

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