Howard takes reins of EPRI

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.

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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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Kenya Nuclear Power Plant Project advances with environmental impact assessment, selecting Tana River County under a build-operate-transfer model to boost grid capacity, support manufacturing growth, and assess reactor technology for reliable baseload energy.

Key Points

A $5B BOT nuclear facility in Tana River to expand Kenya's grid, aiming to start operations in about seven years.

✅ Environmental impact study published for public review by NEMA

✅ Preferred site: Tana River County near coast; grid integration

✅ BOT concession; reactor tech under evaluation for baseload

Kenya’s nuclear agency submitted impact studies for a $5 billion power plant, and said it’s on course to build and start operating the facility in about seven years, as markets like China's nuclear program continue steady expansion.

The government plans to expand its nuclear-power capacity fourfold by 2035, mirroring policy steps in India to revive the sector, the Nuclear Power and Energy Agency said in a report on the National Environment Management Authority’s website. The document is set for public scrutiny before the environmental watchdog can approve it, aligning with global green industrial strategies that weigh nuclear in decarbonization, and pave the way for the project to continue.

President Uhuru Kenyatta wants to ramp up installed generation capacity from 2,712 megawatts as of April to boost manufacturing in East Africa’s largest economy, noting milestones such as Barakah Unit 1 reaching 100% power as indicators of nuclear readiness. Kenya expects peak demand to top 22,000 megawatts by 2031, and other jurisdictions, such as Ontario's exploration of new nuclear, are weighing similar large-scale options, partly due to industrial expansion, a component in Kenyatta’s Big Four Agenda. The other three are improving farming, health care and housing.

The nuclear agency is assessing technologies “to identify the ideal reactor for the country,” it said in the report, including next-gen nuclear designs now being evaluated.

A site in Tana River County, near the Kenyan coast was preferred after studies across three regions, according to the report. The plant will be developed with a concessionaire under a build, operate and transfer model, with innovators such as mini-reactor concepts informing vendor options.

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NY & NJ Utility Shutoff Moratorium suspends power, heat, and water disconnections amid COVID-19, as PSEG, Con Edison, Avangrid, and American Water pledge relief, supporting vulnerable customers with payment plans and health protections.

Key Points

A temporary pause on power, heat, and water shutoffs during COVID-19, as major utilities act to protect affected customers.

✅ Applies to power, gas, and water; restores prior shutoffs.

✅ Voluntary utility action; no PSC order required in NY.

✅ Initial moratorium runs through April; payment plans available.

New Jersey and New York utilities will keep the power, heat and water on for all customers in response to the coronavirus emergency, both states announced Friday.

Major utilities have agreed to suspend utility shut-offs, a particular concern for people who may be out of work and cannot afford to pay their bills.

“No utility can turn off service … if a person cannot pay their bill as a result of responding to this virus situation,” said New York Gov. Andrew Cuomo during a press conference Friday.

Utilities in New York have voluntarily agreed to this measure, according to the governor’s office, reflecting a broader state moratorium on disconnections during emergencies. No order from the Public Service Commission is expected.

With growing concerns about the economic impacts of a virtual shutdown of businesses and large events to curtail the spread of the novel coronavirus, advocates are increasingly pushing financial relief for families amid pandemic energy insecurity pressures. There’s a campaign in New York to suspend evictions and foreclosures, with growing political support. A similar call has gone out in New Jersey.

As the weather warms, shut-offs of electric and gas service due to nonpayment tend to pick up. If people are quarantined or out of work due to a widespread economic slowdown, some advocates say they shouldn’t have to worry about having the lights or heat turned off, especially as examples of unpaid utility bills straining cities have emerged elsewhere.

“We recognize that customers may experience financial difficulty as a result of the outbreak, whether they or a family member fall ill, are required to quarantine, or because their income is otherwise affected,” said Michael Jennings, a spokesperson for Public Service Enterprise Group — the parent company of Public Service Electric and Gas Company, New Jersey’s largest utility — in a statement.

The company’s policy will be in place at least through the end of April, as will Atlantic City Electric’s, and other utilities such as PG&E's pandemic response included a similar moratorium during the outbreak.

“Curtailing shut-offs is good public policy to make sure New Jersey residents aren’t left in the lurch as they’re dealing with coronavirus,” said Eric Miller, director of the Natural Resources Defense Council’s New Jersey energy policy program. “Not having a safe place to be because you don't have electricity, gas or water doesn’t do anything to help address the coronavirus.”

Water service has also drawn attention. Major cities, including Atlanta and Detroit, have suspended shut-offs to ensure residents have water to wash their hands, while Texas utilities waived fees to support customers as well. Seattle suspended water and electric shutoffs.

American Water, which operates in 16 states and has 650,000 customers in New Jersey and 350,000 in New York, has halted any shutoffs amid the coronavirus pandemic and will also restore service, and similarly Hydro One reconnected customers in Canada to maintain access. New York City does not shut off service for nonpayment, but does issue liens against people’s property.

“Everyone, regardless as to what industry, has to have a heightened responsibility that’s encompassed in compassion and take everything into consideration,” New Jersey state Sen. Teresa Ruiz (D-Essex) told POLITICO. “Now is not the time to be worrying about late payments or bills. We need to get past this, hopefully, to see what we’re facing and then deal with other things.”

PSEG Long Island, a subsidiary of PSEG that handles day-to-day operations for the Long Island Power Authority, was the first New York utility to announce it is also suspending shutoffs before the governor’s announcement. The moratorium will remain in place through the end of April.

Rich Berkley, with the Public Utility Law Project, which advocates for low-income customers in New York, said he’s been in touch with state officials to make sure the issue of utility bills is considered during the pandemic. New York already has requirements for utilities to offer deferred payment agreements before shutting off service, he noted.

“The state has to act to protect the most vulnerable households first,” he said. “To the extent that the state is declaring areas of emergency, this should be part of the remedies the state deploys.”

But he noted that not everyone will have trouble paying their utility bills if they’re under quarantine.

“Given the background of a collapsing stock and equity market, all of which matters to the utilities, and shifts in electricity demand during COVID-19, we have to be careful about blanket moratoriums [on shutoffs] in New York,” Berkley said.

Con Edison, the largest utility in the state serving most of New York City, had already informed the Department of Public Service it will suspend all shut-offs in the one-mile radius New Rochelle containment area, spokesperson Michael Clendenin said on Thursday. The moratorium on shutoffs now includes its entire New York City and Westchester County territory.

Avangrid, which owns New York State Electric & Gas and Rochester Gas & Electric, serving broad swathes of upstate New York, will suspend shut-offs due to unpaid bills for 30 days, spokesperson Michael Jamison said.

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PG&E Public Safety Power Shutoff reduces wildfire risk during extreme winds, triggering de-energization across the North Bay and Sierra Foothills under red flag warnings, with safety inspections and staged restoration to improve grid resilience.

Key Points

A utility protocol to de-energize lines during extreme fire weather, reducing ignition risks and improving grid safety.

✅ Triggered by red flag warnings, humidity, wind, terrain

✅ Temporary de-energization of transmission and distribution lines

✅ Inspections precede phased restoration to minimize wildfire risk

PG&E purposefully shut off electricity to nearly 60,000 Northern California customers Sunday night, aiming to mitigate wildfire risks from power lines during extreme winds.

Pacific Gas and Electric planned to restore power to 70 percent of affected customers in the North Bay and Sierra Foothills late Monday night. As crews inspect lines for safety by helicopter, vehicles and on foot, the remainder will have power sometime Tuesday.

While it was the first time the company shut off power for public safety, PG&E announced its criteria and procedures for such an event in June, said spokesperson Paul Doherty. After wildfires devastated Northern California's wine country last October, he added, PG&E developed its community wildfire safety program division to make power grids and communities more resilient, and prepares for winter storm season through enhanced local response. 

Two sagging PG&E power lines caused one of those wildfires during heavy winds, killing four people and injuring a firefighter, the California Department of Forestry and Fire Protection determined earlier this month. Trees or tree branches hitting PG&E power lines started another four wildfires in October 2017. Altogether, the power company has been blamed for igniting 13 wildfires last year.

"We're adapting our electric system our operating practices to improve safety and reliability," Doherty said of the safety program. "That's really the bottom line for us."

Turning off power to so many customers was a "last resort given the extreme fire danger conditions these communities are experiencing," Pat Hogan, senior vice president of electric operations, said in a statement. Conditions that led the company to shut off power included the National Weather Service's red flag fire warnings, humidity levels, sustained winds, temperature, dry fuel and local terrain, Doherty said, amid possible rolling blackouts during grid strain.

The company de-energized more than 78 miles of transmission lines and more than 2,150 miles of distribution power lines Sunday night. Many schools in the area were closed Monday because of the planned power outage, highlighting unequal access to electricity across communities.

Late Saturday and early Sunday, PG&E warned 97,000 customers in 12 counties that the shut off might go into effect. Through automated calls, texts and emails, the company encouraged customers to have drinking water, canned food, flashlights, prescriptions and baby supplies on hand.

Power was also turned off in Southern California on Monday.

San Diego Gas & Electric turned off service to about 360 customers near Cleveland National Forest, where multiple fires have scorched large swaths of land in recent years.

SDG&E has pre-emptively shut off power to customers in the past, most recently in December when 14,000 customers went without power.

Southern California Edison, the primary electric provider across Southern California — including Los Angeles — has a similar power shutoff program. As of Monday night, SCE had yet to turn off power in any of its service areas, a spokesperson told USA TODAY.

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Ontario Wind Power Policy Shift signals renewed investment in renewable energy, wind farms, and grid resilience, aligning with climate goals, lower electricity costs, job creation, and turbine technology for cleaner, diversified power.

Key Points

A provincial pivot to expand wind energy, meet climate goals, lower costs, and boost jobs across Ontario’s power system.

✅ Diversifies Ontario's grid with scalable renewable capacity.

✅ Targets emissions cuts while stabilizing electricity prices.

✅ Spurs rural investment, supply chains, and skilled jobs.

Ontario’s energy landscape is undergoing a significant transformation as Premier Doug Ford makes a notable shift in his approach to wind power. This change represents a strategic pivot in the province’s energy policy, potentially altering the future of Ontario’s power generation, environmental goals, and economic prospects.

The Backdrop: Ford’s Initial Stance on Wind Power

When Doug Ford first assumed the role of Premier in 2018, his administration was marked by a strong stance against renewable energy projects, including wind power, with Ford later saying he was proud of tearing up contracts as part of this shift. Ford’s government inherited a legacy of ambitious renewable energy commitments from the previous Liberal administration under Kathleen Wynne, which had invested heavily in wind and solar energy. The Ford government, however, was critical of these initiatives, arguing that they resulted in high energy costs and a surplus of power that was not always needed.

In 2019, Ford’s government began rolling back several renewable energy projects, including wind farms, and was soon tested by the Cornwall wind farm ruling that scrutinized a cancellation. This move was driven by a promise to reduce electricity bills and cut what was perceived as wasteful spending on green energy. The cancellation of several wind projects led to frustration among environmental advocates and the renewable energy sector, who viewed the decision as a setback for Ontario’s climate goals.

The Shift: Embracing Wind Power

Fast forward to 2024, and Premier Ford’s administration is taking a markedly different approach. The recent policy shift, which moves to reintroduce renewable projects, indicates a newfound openness to wind power, reflecting a broader acknowledgment of the changing dynamics in energy needs and environmental priorities.

Several factors appear to have influenced this shift:

1. Rising Energy Demands and Climate Goals: Ontario’s growing energy demands, coupled with the pressing need to address climate change, have necessitated a reevaluation of the province’s energy strategy. As Canada commits to reducing greenhouse gas emissions and transitioning to cleaner energy sources, wind power is increasingly seen as a crucial component of this strategy. Ford’s change in direction aligns with these national and global goals.

2. Economic Considerations: The economic landscape has also evolved since Ford’s initial opposition to wind power. The cost of wind energy has decreased significantly over the past few years, making it a more competitive and viable option compared to traditional energy sources, as competitive wind power gains momentum in markets worldwide. Additionally, the wind energy sector promises substantial job creation and economic benefits, which are appealing in the context of post-pandemic recovery and economic growth.

3. Public Opinion and Pressure: Public opinion and advocacy groups have played a role in shaping policy. There has been a growing demand from Ontarians for more sustainable and environmentally friendly energy solutions. The Ford administration has been responsive to these concerns, recognizing the importance of addressing public and environmental pressures.

4. Technological Advancements: Advances in wind turbine technology have improved efficiency and reduced the impact on wildlife and local communities. Modern wind farms are less intrusive and more effective, addressing some of the concerns that were previously associated with wind power.

Implications of the Policy Shift

The implications of Ford’s shift towards wind power are far-reaching. Here are some key areas affected by this change:

1. Energy Portfolio Diversification: By reembracing wind power, Ontario will diversify its energy portfolio, reducing its reliance on fossil fuels and increasing the proportion of renewable energy in the mix. This shift will contribute to a more resilient and sustainable energy system.

2. Environmental Impact: Increased investment in wind power will contribute to Ontario’s efforts to combat climate change. Wind energy is a clean, renewable source that produces no greenhouse gas emissions during operation. This aligns with broader environmental goals and helps mitigate the impact of climate change.

3. Economic Growth and Job Creation: The wind power sector has the potential to drive significant economic growth and create jobs. Investments in wind farms and associated infrastructure can stimulate local economies, particularly in rural areas where many wind farms are located.

4. Energy Prices: While the initial shift away from wind power was partly motivated by concerns about high energy costs, including exposure to costly cancellation fees in some cases, the decreasing cost of wind energy could help stabilize or even lower electricity prices in the long term. As wind power becomes a larger component of Ontario’s energy supply, it could contribute to a more stable and affordable energy market.

Moving Forward: Challenges and Opportunities

Despite the positive aspects of this policy shift, there are challenges to consider, and other provinces have faced setbacks such as the Alberta wind farm scrapped by TransAlta that illustrate potential hurdles. Integrating wind power into the existing grid requires careful planning and investment in grid infrastructure. Additionally, addressing local concerns about wind farms, such as their impact on landscapes and wildlife, will be crucial to gaining broader acceptance.

Overall, Doug Ford’s shift towards wind power represents a significant and strategic change in Ontario’s energy policy. It reflects a broader understanding of the evolving energy landscape and the need for a sustainable and economically viable energy future. As the province navigates this new direction, the success of this policy will depend on effective implementation, ongoing stakeholder engagement, and a commitment to balancing environmental, economic, and social considerations, even as the electricity future debate continues among party leaders.

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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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