Virginia will look at effects of pollution from aging plants

By The Virginian-Pilot


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Speaking in the long shadow of the largest power plant in Virginia, Governor Timothy M. Kaine announced an initiative that takes aim at one of the biggest problems in fighting air pollution — "grandfathering."

The term, and the problem, is basically this: When the national Clean Air Act was passed in 1970, existing power plants, factories, paper mills and other industrial emitters were exempted, or grandfathered, from installing modern pollution controls to curb smog, acid rain and other unhealthy contaminants.

In Virginia, 300 such facilities remain in operation today, still spewing pollutants such as lead, mercury, soot, nitrogen oxide and sulfur dioxide. And there is little anybody can do about it, officials say, short of a change in federal law.

On Tuesday, though, Kaine announced a cooperative program that he called the first of its kind in the nation, in which state regulators will work with industry engineers to study specific emissions and other data at 15 of the biggest grandfathered plants, including four in Hampton Roads.

If the facilities are found to be causing major pollution woes in their regions, the governor said, the state Department of Environmental Quality will push for new controls "to correct those problems."

The first three reviews will begin later this year, Kaine said, and should be completed within 18 months. Each will cost the state about $150,000.

They will occur at the Chesterfield Power Station, the largest coal-fired power plant in Virginia, near Hopewell, owned by Dominion Virginia Power; the Glen Lyn Power Station, in Giles County, owned by American Electric Power; and a giant paper mill, in Covington, owned by MeadWestvaco.

Executives from the three companies were on hand to say they have no qualms with the audits and expect to pass with flying colors.

"We've invested a lot of money" on anti-pollution technology in recent years, including $900 million at the Chesterfield plant, said Dan Genest, a Dominion spokesman.

"We think there's a desire from our customers and the citizens to know we're in compliance," Genest added, "and we look forward to being able to publicly say so."

Environmental groups applauded the move, too. They said it represents a good first step toward addressing a major loophole that for decades has led to hundreds of asthma cases, poor air quality and other public health risks.

"It's critical the process be rigorous and that compliance with the standards is enforced fully, no matter who resides in the Governor's Mansion," said Frank Rambo, a senior attorney with the Southern Environmental Law Center in Charlottesville.

The idea, Kaine said, stemmed from brainstorming sessions months ago with himself and his environmental staff over possible programs to undertake during his final year in office.

Kaine has made 2009 "the year of the environment" and has pressed for several initiatives through his "Renew Virginia" campaign. The grandfathering audits are part of that effort.

Michael Dowd, director of air quality for the state Department of Environmental Quality, said the 300 grandfathered facilities represent about 5 percent of all industrial sources of air pollution across Virginia.

He could not say how much pollution they create, mostly "because we have never really measured it like this," but he estimated that "it's significant, easily more than 5 percent of our total pollution output."

Dominion owns five of the 15 grandfathered plants to be reviewed. One is in Chesapeake, another in Yorktown.

The other facilities in Hampton Roads are the International Paper mill in Franklin and Cogentrix Virginia Leasing Corp. in Portsmouth, according to state officials.

The reviews will focus on three main pollutants, said David Paylor, state environmental director: nitrogen oxide, a building block of smog; sulfur dioxide, another smog precursor and contributor to acid rain; and particulates, or soot, which can gather in human lungs and cause respiratory ailments.

Paylor said the state has federal authority to take action against grandfathered plants — if they are found to be specific, major contributors to smog or other air-quality deficiencies.

But until now, Paylor said, the state has had trouble pinpointing such problems on individual plants for lack of complete data.

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What Will Drive Utility Revenue When Electricity Is Free?

AI-Powered Utility Customer Experience enables transparency, real-time pricing, smart thermostats, demand response, and billing optimization, helping utilities integrate distributed energy resources, battery storage, and microgrids while boosting customer satisfaction and reducing costs.

 

Key Points

An approach where utilities use AI and real-time data to personalize service, optimize billing, and cut energy costs.

✅ Real-time pricing aligns retail and wholesale market signals

✅ Device control via smart thermostats and home energy management

✅ Analytics reveal appliance-level usage and personalized savings

 

The latest electric utility customer satisfaction survey results from the American Customer Satisfaction Index (ACSI) Energy Utilities report reveal that nearly every investor-owned utility saw customer satisfaction go down from 2018 to 2019. Residential customers are sending a clear message in the report: They want more transparency and control over energy usage, billing and ways to reduce costs.

With both customer satisfaction and utility revenues on the decline, utilities are facing daunting challenges to their traditional business models amid flat electricity demand across many markets today. That said, it is the utilities that see these changing times as an opportunity to evolve that will become the energy leaders of tomorrow, where the customer relationship is no longer defined by sales volume but instead by a utility company's ability to optimize service and deliver meaningful customer solutions.

We have seen how the proliferation of centralized and distributed renewables on the grid has already dramatically changed the cost profile of traditional generation and variability of wholesale energy prices. This signals the real cost drivers in the future will come from optimizing energy service with things like batteries, microgrids and peer-to-peer trading networks. In the foreseeable future, flat electricity rates may be the norm, or electricity might even become entirely free as services become the primary source of utility revenue.

The key to this future is technological innovation that allows utilities to better understand a customer’s unique needs and priorities and then deliver personalized, well-timed solutions that make customers feel valued and appreciated as their utility helps them save and alleviates their greatest pain points.

I predict utilities that adopt new technologies focused on customer experience, aligned with key utility trends shaping the sector, and deliver continual service improvements and optimization will earn the most satisfied, most loyal customers.

To illustrate this, look at how fixed pricing today is applied for most residential customers. Unless you live in one of the states with deregulated utilities where most customers are free to choose a service provider in a competitive marketplace, as consumers in power markets increasingly reshape offerings, fixed-rate tariffs or time-of-use tariffs might be the only rate structures you have ever known, though new utility rate designs are being tested nationwide today. These tariffs are often market distortions, bearing little relation to the real-time price that the utility pays on the wholesale market.

It can be easy enough to compare the rate you pay as a consumer and the market rate that utilities pay. The California ISO has a public dashboard -- as do other grid operators -- that shows the real-time marginal cost of energy. On a recent Friday, for example, a buyer in San Francisco could go to the real-time market and procure electricity at a rate of around 9.5 cents per kilowatt-hour (kWh), yet a residential customer can pay the utility PG&E between 22 cents and 49 cents per kWh amid major changes to electric bills being debated, depending on usage.

The problem is that utility customers do not usually see this data or know how to interpret it in a way that helps add value to their service or drive down the cost.

This is a scenario ripe for innovation. Artificial intelligence (AI) technologies are beginning to be applied to give customers the transparency and control over the energy they desire, and a new type of utility is emerging using real-time pricing signals from wholesale markets to give households hassle-free energy savings. Evolve Energy in Texas is developing a utility service model, even as Texas utilities revisit smart home network strategies, that delivers electricity to consumers at real-time market prices and connects to smart thermostats and other connected devices in the home for simple monitoring and control -- all managed via an intuitive consumer app.

My company, Bidgely, partners with utilities and energy retailers all over the world to apply artificial intelligence and machine learning algorithms to customer data in order to bring transparency to their electricity bills, showing exactly where the customers’ money is going down to the appliance and offering personalized, actionable advice on how to save.

Another example is from energy management company Keewi. Its wireless outlet adaptors are revealing real-time energy usage information to Texas A&M dorm residents as well as providing students the ability to conserve energy through controlling items in their rooms from their smartphones.

These are but a few examples of innovations among many in play that answer the consumer demand for increased transparency and control over energy usage.

Electric service providers will be closely watching how consumers respond to AI-driven innovation, including providers in traditionally regulated markets that are exploring equitable regulation approaches now, to stay aligned with policy and customer expectations. While regulated utilities have no reason to fear that their customers might sign up with a competitor, they understand that the revenues from electricity sales are going down and the deployment of distributed energy resources is going up. Both trends were reflected in a March report from Bloomberg New Energy Finance (via ThinkProgress) that claimed unsubsidized storage projects co-located with solar or wind are starting to compete with coal and gas for dispatchable power. Change is coming to regulated markets, and some of that change can be attributed to customer dissatisfaction with utility service.

Like so many industries before, the utility-customer relationship is on track to become less about measuring unit sales and more about driving revenue through services and delivering the best customer value. Loyal customers are most likely to listen and follow through on the utility’s advice and to trust the utility for a wide range of energy-related products and services. Utilities that make customer experience the highest priority today will emerge tomorrow as the leaders of a new energy service era.

 

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The Impact of AI on Corporate Electricity Bills

AI Energy Consumption strains corporate electricity bills as data centers and HPC workloads run nonstop, driving carbon emissions. Efficiency upgrades, renewable energy, and algorithm optimization help control costs and enhance sustainability across industries.

 

Key Points

AI Energy Consumption is the power used by AI compute and data centers, impacting costs and sustainability.

✅ Optimize cooling, hardware, and workloads to cut kWh per inference

✅ Integrate on-site solar, wind, or PPAs to offset data center power

✅ Tune models and algorithms to reduce compute and latency

 

Artificial Intelligence (AI) is revolutionizing industries with its promise of increased efficiency and productivity. However, as businesses integrate AI technologies into their operations, there's a significant and often overlooked impact: the strain on corporate electricity bills.

AI's Growing Energy Demand

The adoption of AI entails the deployment of high-performance computing systems, data centers, and sophisticated algorithms that require substantial energy consumption. These systems operate around the clock, processing massive amounts of data and performing complex computations, and, much like the impact on utilities seen with major EV rollouts, contributing to a notable increase in electricity usage for businesses.

Industries Affected

Various sectors, including finance, healthcare, manufacturing, and technology, rely on AI-driven applications for tasks ranging from data analysis and predictive modeling to customer service automation and supply chain optimization, while manufacturing is influenced by ongoing electric motor market growth that increases electrified processes.

Cost Implications

The rise in electricity consumption due to AI deployments translates into higher operational costs for businesses. Corporate entities must budget accordingly for increased electricity bills, which can impact profit margins and financial planning, especially in regions experiencing electricity price volatility in Europe amid market reforms. Managing these costs effectively becomes crucial to maintaining competitiveness and sustainability in the marketplace.

Sustainability Challenges

The environmental impact of heightened electricity consumption cannot be overlooked. Increased energy demand from AI technologies contributes to carbon emissions and environmental footprints, alongside rising e-mobility demand forecasts that pressure grids, posing challenges for businesses striving to meet sustainability goals and regulatory requirements.

Mitigation Strategies

To address the escalating electricity bills associated with AI, businesses are exploring various mitigation strategies:

  1. Energy Efficiency Measures: Implementing energy-efficient practices, such as optimizing data center cooling systems, upgrading to energy-efficient hardware, and adopting smart energy management solutions, can help reduce electricity consumption.

  2. Renewable Energy Integration: Investing in renewable energy sources like solar or wind power and energy storage solutions to enhance flexibility can offset electricity costs and align with corporate sustainability initiatives.

  3. Algorithm Optimization: Fine-tuning AI algorithms to improve computational efficiency and reduce processing times can lower energy demands without compromising performance.

  4. Cost-Benefit Analysis: Conducting thorough cost-benefit analyses of AI deployments to assess energy consumption against operational benefits and potential rate impacts, informed by cases where EV adoption can benefit customers in broader electricity markets, helps businesses make informed decisions and prioritize energy-saving initiatives.

Future Outlook

As AI continues to evolve and permeate more aspects of business operations, the demand for electricity will likely intensify and may coincide with broader EV demand projections that increase grid loads. Balancing the benefits of AI-driven innovation with the challenges of increased energy consumption requires proactive energy management strategies and investments in sustainable technologies.

Conclusion

The integration of AI technologies presents significant opportunities for businesses to enhance productivity and competitiveness. However, the corresponding surge in electricity bills underscores the importance of proactive energy management and sustainability practices. By adopting energy-efficient measures, leveraging renewable energy sources, and optimizing AI deployments, businesses can mitigate cost impacts, reduce environmental footprints, and foster long-term operational resilience in an increasingly AI-driven economy.

 

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Severe heat: 5 electricity blackout risks facing the entire U.S., not just Texas

Texas power grid highlights ERCOT reliability strains from extreme heat, climate change, and low wind, as natural gas and renewables balance tight capacity amid EV charging growth, heat pumps, and blackout risk across the U.S.

 

Key Points

Texas power grid is ERCOT-run and isolated, balancing natural gas and wind amid extreme weather and electrification.

✅ Isolated from other U.S. grids, limited import support

✅ Vulnerable to extreme heat, winter storms, low wind

✅ Demand growth from EVs and heat pumps stresses capacity

 

Texas has a unique state-run power grid facing a Texas grid crisis that has raised concerns, but its issues with extreme weather, and balancing natural gas and wind, hold lessons for an entire U.S. at risk for power outages from climate change.

Grid operator the Electric Reliability Council of Texas, or ERCOT, which has drawn criticism from Elon Musk recently, called on consumers to voluntarily reduce power use on Monday when dangerous heat gripped America’s second-most populous state.

The action paid off as the Texas grid avoided blackouts — and a repeat of its winter crisis — despite record or near-record temperatures that depleted electric supplies amid a broader supply-chain crisis affecting utilities this summer, and risked lost power to more than 26 million customers. ERCOT later on Monday lifted the call for conservation.

For sure, it’s a unique situation, as the state-run power grid system runs outside the main U.S. grids. Still, all Americans can learn from Texas about the fragility of a national power grid that is expected to be challenged more frequently by hot and cold weather extremes brought on by climate change, including potential reliability improvements policymakers are weighing.

The grid will also be tested by increased demand to power electric vehicles (EVs) and conversions to electric heat pumps — all as part of a transition to a “greener” future.

 

Why is Texas different?
ERCOT, the main, but not only, Texas grid, is unique in its state-run, and not regional, format used by the rest of the country. Because it’s an energy-rich state, Texas has been able to set power prices below those seen in other parts of the country, and its independence gives it more pricing authority, while lawmakers consider market reforms to avoid blackouts. But during unusual strain on the system, such as more people blasting their air conditioners longer to combat a record heat wave, it also has no where else to turn.

A lethal winter power shortage in February 2021, during a Texas winter storm that left many without power and water, notoriously put the state and its independent utility in the spotlight when ERCOT failed to keep residents warm and pipes from bursting. Texas’s 2021 outage left more than 200 people dead and rang up $20 billion in damage. Fossil-fuel CL00, 0.80% backers pointed to the rising use of intermittent wind power, which generates 23% of Texas’s electricity. Others said natural-gas equipment was frozen under the extreme conditions.

This week, ERCOT is asking for voluntary conservation between 2 p.m. and 8 p.m. local time daily due to record high electricity demand from the projected heat wave, and also because of low wind. ERCOT said current projections show wind generation coming in at less than 10% of capacity. ERCOT stressed that no systemwide outages are expected, and Gov. Greg Abbott has touted grid readiness heading into fall, but it was acting preemptively.

A report late last year from the North American Electric Reliability Corp. (NERC) said the Texas system without upgrades could see a power shortfall of 37% in extreme winter conditions. NERC’s outlook suggested the state and ERCOT isn’t prepared for a repeat of weather extremes.

 

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EDP Plans to Reject $10.9 Billion-China Three Gorges Bid

EDP Takeover Bid Rejection signals pushback on China Three Gorges' acquisition bid, as investors, shareholders, and analysts cite low premium, valuation concerns, and strategic renewables assets across Portugal, the US, Brazil, and Europe utilities.

 

Key Points

EDP's board views China Three Gorges' 3.26 euro per share offer as too low, citing valuation and renewables exposure.

✅ Bid premium 4.8% above close seen as inadequate.

✅ Stock surged above offer; market expects higher price.

✅ Advisors UBS and Morgan Stanley guiding EDP.

 

EDP-Energias de Portugal SA is poised to reject a 9.1 billion euro ($10.9 billion) takeover offer from China Three Gorges Corp. on the grounds that it undervalues Portugal’s biggest energy company, according to people with knowledge of the matter.

The board of EDP, which may meet as early as this week, views the current bid of 3.26 euros a share as too low as it indicates a premium of 4.8 percent over Friday’s close, said the people, asking not to be identified because the discussions are private. EDP is also working with advisers including UBS Group AG and Morgan Stanley on the potential deal, they said.

Representatives for EDP, UBS and Morgan Stanley declined to comment. Representatives for Three Gorges didn’t immediately respond to requests for comment.

#google#

Shares of EDP surged the most in a decade to above the bid level on Monday, signaling that investors expect the Chinese utility, which is its biggest investor, to sweeten the offer to gain full control. For Three Gorges, which spent two decades building a hydro-power plant spanning China’s Yangtze River, the deal would bolster its efforts to expand abroad and give it deeper access to markets in Europe, the U.S. and Brazil.

China’s biggest renewable-energy developer already is the largest shareholder of EDP with a 23 percent stake and now is seeking more than 50 percent. While the government in Lisbon has indicated it’s comfortable with the Chinese offer, EDF electricity price deal illustrates policy dynamics in the region and it holds out little incentive for shareholders to tender their stock.

 

Stock Jumps

Shares of EDP rose 9.3 percent to 3.40 euros in Lisbon on Monday, even as rolling back European electricity prices remains challenging, after earlier jumping by the most since October 2008.

“We believe the price offered is too low for China Three Gorges to achieve full control of a vehicle that provides, among other things, a strategic footprint into U.S. renewables,” Javier Garrido, an analyst at JPMorgan Chase & Co., said in a note. “We expect management and minorities to claim a higher price.”

The offer adds to a wave of investments China has made overseas, both to earn a yield on its cash and to gain expertise in industries ranging from energy to telecommunications and transport. Concern about those deals has been mounting in the U.S. regulatory arena recently. European Union governments have been divided in their response, with Portugal among those most supportive of inward investment.

“China Three Gorges is an ambitious company, with expansion already in international hydro, Chinese onshore wind and floating solar, and European offshore wind,” said Angus McCrone, a senior analyst at Bloomberg New Energy Finance in London. “It may have to do better on bid price than the 5 percent premium so far offered for EDP.”

 

Fortum’s Troubles

The low premium offered by Three Gorges echoes the struggle Fortum Oyj had in winning over investors in its bid for Uniper SE last year, while North American deals such as Hydro One’s Avista bid faced customer backlash as well, highlighting parallels. The Finnish utility offered 8 billion euros to buy out the remainder of Uniper in September, immediately sending shares of the German power generator above the offer prices. At least for now, Fortum has settled for a 47 percent stake it bought in Uniper from EON SE, and most other shareholders decided to keep their stake.

The EDP transaction would advance a wave of consolidation among Europe’s leading utilities, which are acquiring assets and development skills in renewables as governments across the region crack down on pollution. EDP is one of Europe’s leading developers of renewable energy, building mainly wind farms and hydro plants, and has expanded in markets including Brazil and the U.S. electrification market.

 

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Magnitude 5 quake strikes near Iran nuclear plant

Iran Bushehr Earthquake rattles southern province near the Bushehr nuclear power plant, USGS reports M5.1 at 38 km depth; seismic activity along major fault lines raises safety, damage, and monitoring concerns.

 

Key Points

A magnitude 5.1 quake near Bushehr nuclear plant at 38 km depth, with no damage reported, per USGS.

✅ USGS lists magnitude 5.1 at 38 km depth

✅ Near Bushehr nuclear power plant; built for stronger quakes

✅ Iran lies on major fault lines; quake risk is frequent

 

A magnitude 5 earthquake struck southern Iran early Friday near the Islamic Republic's only nuclear power plant. There were no immediate reports of damage or injuries as Iran continues combined-cycle conversions across its power sector.

The quake hit Iran's Bushehr province at 5:23 a.m., according to the U.S. Geological Survey. It put the magnitude at 5.1 and the depth of the earthquake at 38 kilometres (24 miles), in a province tied to efforts to transmit electricity to Europe in coming years.

Iranian state media did not immediately report on the quake. However, the Bushehr nuclear power plant was designed to withstand much stronger earthquakes, a notable consideration as Iraq plans nuclear power plants to address shortages.

A magnitude 5 earthquake can cause considerable damage, including power disruptions that have seen blackouts spark protests in some Iranian cities.

Iran sits on major fault lines and is prone to near-daily earthquakes, yet it remains a key player in regional power, with Iran-Iraq energy cooperation ongoing. In 2003, a 6.6-magnitude quake flattened the historic city of Bam, killing 26,000 people, and today Iran supplies 40% of Iraq's electricity through cross-border power deals. Bam is near the Bushehr nuclear plant, which wasn’t damaged at that time, while more recently Iran finalized deals to rehabilitate Iraq's power grid to improve resilience.

 

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Over 30% of Global Electricity from Renewables

Global Renewable Electricity Milestone signals solar, wind, hydro, and geothermal surpass 30% of power generation, driven by falling costs, battery storage, smart grids, and ambitious policy targets that strengthen energy security and decarbonization.

 

Key Points

It marks renewables exceeding 30% of global power, enabled by cheaper tech, storage, and strong policy.

✅ Costs of solar and wind fall, boosting competitiveness

✅ Storage and smart grids improve reliability and flexibility

✅ Policies target decarbonization while ensuring just transition

 

A recent report by the energy think tank Ember marks a significant milestone in the global energy transition. For the first time ever, according to their analysis, renewable energy sources like solar, wind, hydro, and geothermal now account for more than 30% of the world's electricity generation, a milestone echoed by wind and solar growth globally. This achievement signifies a pivotal shift towards a cleaner and more sustainable energy future.

The report attributes this growth to several key factors. Firstly, the cost of renewable energy technologies like solar panels and wind turbines has plummeted in recent years, making them increasingly competitive with traditional fossil fuels. Secondly, advancements in battery storage technology are facilitating the integration of variable renewable sources like solar and wind into the grid, addressing concerns about reliability. Thirdly, a growing number of countries are implementing ambitious renewable energy targets and policies, driven by environmental concerns and the desire for energy security.

The rise of renewables is not uniform across the globe. Europe leads the pack, with the European Union generating a staggering 44% of its electricity from renewable sources in 2023. Countries like Denmark, Germany, and Spain are at the forefront of this clean energy revolution. Developing nations are also starting to embrace renewables, driven by factors like falling technology costs and the need for affordable electricity access.

However, challenges remain. Fossil fuels still dominate the global energy mix, accounting for roughly two-thirds of electricity generation. Integrating a higher proportion of variable renewables into the grid necessitates robust storage solutions and smart grid technologies. Additionally, the transition away from fossil fuels needs to be managed carefully to ensure a just and equitable outcome for workers in the coal, oil, and gas sectors.

Despite these challenges, the report by Ember paints an optimistic picture. The rapid growth of renewables demonstrates their increasing viability and underscores the global commitment to a cleaner energy future, and in the United States, for example, renewables are projected to reach one-fourth of U.S. electricity generation, reinforcing this trajectory. The report also highlights the economic benefits of renewables, with new jobs created in the clean energy sector and reduced reliance on volatile fossil fuel prices.

Looking ahead, continued technological advancements, supportive government policies, and increased investment in renewable energy infrastructure are all crucial for further growth, with scenarios such as BNEF's 2050 outlook suggesting wind and solar could provide half of electricity, underscoring the importance of sustained effort. Furthermore, international cooperation is essential to ensure a smooth and equitable global energy transition. Developed nations can play a vital role by sharing technology and expertise with developing countries.

The 30% milestone is a significant step forward, but it's just the beginning. As the world strives to combat climate change and ensure energy security for future generations, renewables are poised to play a central role in powering a sustainable future, with wind and solar surpassing coal in the U.S. offering a clear signal of the shift. The report by Ember serves as a powerful reminder that a clean energy future is not just a dream, but a rapidly unfolding reality.

 

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