Power Crisis will not Decrease Interest in Tenders

Florida Hurricane Irma Power Outages strain the grid as utilities plan rebuilds; FPL and Duke Energy deploy crews to restore transmission lines, substations, and service amid flooding, storm surge, and widespread disruptions statewide.

Key Points

Large-scale post-storm power losses in Florida requiring grid rebuilds, thousands of crews, and phased restoration.

✅ Utilities prioritize plants, transmission, substations, then critical facilities

✅ 50,000-60,000 workers mobilized; bucket trucks wait for safe winds

✅ Remote rerouting and hardening aid faster restoration amid flooding

Parts of Florida could be without electricity for more than a week, as damage from Hurricane Irma will require a complete rebuild of portions of the electricity grid, utility executives said on Monday.

Irma has knocked out power to 6.5 million Florida electricity customers, or nearly two-thirds of the state, since making landfall this weekend. In major areas such as Miami-Dade, 74 percent of the county was without power, according to Florida's division of emergency management.

Getting that power back online may require the help of 50,000 to 60,000 workers from all over the United States and Canadian power crews as well, according to Southern Company CEO and Chairman Thomas Fanning. He is also co-chair of the Electricity Subsector Coordinating Council, which coordinates the utility industry and government response to disasters and cyberthreats.

While it is not uncommon for severe storms to down power lines and damage utility poles, Irma's heavy winds and rain batted some of the state's infrastructure to the ground, Fanning said.

"'Restore' may not capture the full sense of where we are. For the very hard impacted areas, I think you're in a 'rebuild' area," he told CNBC's "Squawk Box."

"That's a big deal. People need to understand this is going to take perhaps weeks, not days, in some areas," Fanning said.

Parts of northern Florida, including Jacksonville, experienced heavy flooding, which will temporarily prevent crews from accessing some areas.

Duke Energy, which serves 1.8 million customers in parts of central and northwestern Florida, is trying to restore service to 1.2 million residences and businesses.

Florida Power & Light Company, which provides power to an estimated 4.9 million accounts across the state, had about 3.5 million customers without electricity as of Monday afternoon, said Rob Gould, vice president and chief communications officer at FPL.

The initial damage assessments suggest power can be restored to parts of the state's east coast in just days, but some of the west coast will require rebuilding that could stretch out for weeks, Gould told CNBC's "Power Lunch."

"This is not a typical restoration that you're going to see. We actually for the first time in our company history have our entire 27,000-square-mile, 35-county territory under assault by Irma," he said.

FPL said it would first repair any damage to power plants, transmission lines and substations as part of its massive response to Irma, then prioritize critical facilities such as hospitals and water treatment plants. The electricity company would then turn its attention to areas that are home to supermarkets, gas stations and other community services.

Florida utilities invested billions into their systems after devastating hurricane seasons in 2004 and 2005 in order to make them more resilient and easier to restore after a storm. Irma, which ranked among the most powerful storms in the Atlantic, has nevertheless tested those systems.

The upgrades have allowed FPL to automatically reroute power and address about 1.5 million outages, Gould said. The company strategically placed 19,500 restoration workers before the storm hit, but it cannot use bucket trucks to fix power lines until winds die down, he said.

Some parts of Florida's distribution system — the lines that deliver electricity from power plants to businesses and residences — run underground. However, the state's long coastline and the associated danger of storm surge and seawater incursion make it impractical to run lines beneath the surface in some areas.

Duke Energy has equipped 28 percent of its system with smart grid technology to reroute power remotely, according to Harry Sideris, Duke's state president for Florida. He said the company would continue to build out that capability in the future.

Duke deployed more than 9,000 linesmen and support crew members to Irma-struck areas, but cannot yet say how long some customers will be without power.

Separately, Gulf Power crews reported restoring service to more than 32,000 customers.

"At this time we do not know the exact restoration times. However, we're looking at a week or longer from the first look at the widespread damage that we had," Sideris told CNBC's "Closing Bell."

FPL said on Monday it was doing final checks before bringing back nuclear reactors that were powered down as Hurricane Irma hit Florida.

"We are in the process now of doing final checks on a few of them; we will be bringing those up," FPL President and CEO Eric Silagy told reporters.

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BC Hydro EV Charging Stations expand provincewide with DC fast chargers, 80% in 30 minutes at 35 c/kWh, easing range anxiety across Vancouver, Vancouver Island, Coquihalla Highway, East Kootenay, between Kamloops and Prince George.

Key Points

Public DC fast-charging network across B.C. enabling 80% charge in 30 minutes to cut EV range anxiety.

✅ 28 new stations added; 30 launched in 2016

✅ 35 c/kWh; about $3.50 per tank equivalent

✅ Coverage: Vancouver, Island, Coquihalla, East Kootenay

B.C. Hydro is expanding its network of electric vehicle charging stations.

The Crown utility says 28 new stations complete the second phase of its fast-charging network and are in addition to the 30 stations opened in 2016.

Thirteen of the stations are in Metro Vancouver, seven are on Vancouver Island, including one at the Pacific Rim Visitor Centre near Tofino, another is in Campbell River, and two have opened on the Coquihalla segment of B.C.'s Electric Highway at the Britton Creek rest area.

A further six stations are located throughout the East Kootenay and B.C. Hydro says the next phase of its program will connect drivers travelling between Kamloops and Prince George, while stations in Prince Rupert are also being planned.

BC Hydro has also opened a fast charging site in Lillooet, illustrating expansion into smaller communities.

Hydro spokeswoman Mora Scott says the stations can charge an electric vehicle to 80 per cent in just 30 minutes, at a cost of 35 cents per kilowatt hour.

Mora Scott says that translates to roughly $3.50 for the equivalent of a full tank of gas in the average four-cylinder car.

“The number of electric vehicles on B.C. roads is increasing, there’s currently around 9,000 across the province, and we actually expect that number to rise to 300,000 by 2030,” Scott says in a news release.

In partnership with municipalities, regional districts and several businesses, B.C. Hydro has been installing charging stations throughout the province since 2012 with support from the provincial and federal governments and programs such as EV charger rebates available to residents.

Scott says the utility wants to ensure the stations are placed where drivers need them so charging options are available provincewide.

“One big thing that we know drivers of electric vehicles worry about is the concept called range anxiety, that the stations aren’t going to be where they need them,” she says.

Several models of electric vehicle are now capable of travelling up to 500 kilometres on a single charge, says Scott.

BC Hydro president Chris O’Riley says the new charging sites will encourage electric vehicle drivers to explore B.C. this summer.

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Earth Hour BC highlights BC Hydro data on electricity use, energy savings, and participation in the Lower Mainland and Vancouver Island amid climate change and hydroelectric power dynamics.

Key Points

BC observance tracking BC Hydro electricity use and conservation during Earth Hour, amid hydroelectric power dominance.

✅ BC Hydro reports rising electricity use during Earth Hour 2018

✅ Savings fell from 2% in 2008 to near zero province-wide

✅ Hydroelectric grid yields low GHG emissions in BC

For the first time since it began tracking electricity use in the province during Earth Hour, BC Hydro said customers used more power during the 60-minute period when lights are expected to dim, mirroring all-time high electricity demand seen recently.

The World Wildlife Fund launched Earth Hour in Sydney, Australia in 2007. Residents and businesses there turned off lights and non-essential power as a symbol to mark the importance of combating climate change.

The event was adopted in B.C. the next year and, as part of that, BC Hydro began tracking the megawatt hours saved.

#google#

In 2008, residents and businesses achieved a two per cent savings in electricity use. But since then, BC Hydro says the savings have plummeted.

The event was adopted in B.C. the next year and, as part of that, BC Hydro began tracking the megawatt hours saved.

In 2008, residents and businesses achieved a two per cent savings in electricity use. But since then, BC Hydro says the savings have plummeted, as record-breaking demand in 2021 and beyond changed consumption patterns.

Lights on

For Earth Hour this year, which took place 8:30-9:30 p.m. on March 24, BC Hydro says electricity use in the Lower Mainland increased by 0.5 per cent, even as it activated a winter payment plan to help customers manage bills. On Vancouver Island it increased 0.6 per cent.

In the province's southern Interior and northern Interior, power use remained the same during the event.

On Friday, the utility released a report called: "lights out". Why Earth Hour is dimming in BC. which explores the decline of energy savings related to Earth Hour in the province.

The WWF says the way in which hydro companies track electricity savings during Earth Hour is not an accurate measure of participation, and tracking of emerging loads like crypto mining electricity use remains opaque, and noted that more countries than ever are turning off lights for the event.

For 2018, the WWF shifted the focus of Earth Hour to the loss of wildlife across the globe.

BC Hydro says in its report that the symbolism of Earth Hour is still important to British Columbians, but almost all power generation in B.C. is hydroelectric, though recent drought conditions have required operational adjustments, and only accounts for one per cent of greenhouse gas emissions.

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European Gas Prices hit pre-invasion lows as LNG inflows, EU storage gains, and softer oil markets ease the energy crisis, while recession risks, windfall taxes, and ExxonMobil's challenge shape demand and policy.

Key Points

European gas prices reflect supply, LNG inflows, storage, and policy, shaping energy costs for households and industry.

✅ Month-ahead hit €76.78/MWh, rebounding to €85.50/MWh.

✅ EU storage 83.2% filled; autumn peak exceeded 95%.

✅ Demand tempered by recession risks; LNG inflows offset Russian cuts.

European gas prices have dipped to a level last seen before Russia launched its invasion of Ukraine in February, after warmer weather across the continent eased concerns over shortages and as coal demand dropped across Europe during winter.

The month-ahead European gas future contract dropped as low as €76.78 per megawatt hour on Wednesday, the lowest level in 10 months, amid EU talks on gas price cap strategies that could shape markets, before closing higher at €83.70, according to Refinitiv, a data company.

The invasion roiled global energy markets, serving as a wake-up call to ditch fossil fuels for policymakers, and forced European countries, including industrial powerhouse Germany, to look for alternative suppliers to those funding the Kremlin. Europe had continued to rely on Russian gas even after its 2014 annexation of Crimea and support for separatists in eastern Ukraine.

On Tuesday 83.2% of EU gas storage was filled, data from industry body Gas Infrastructure Europe showed. The EU in May set a target of filling 80% of its gas storage capacity by the start of November to prepare for winter, and weighed emergency electricity measures to curb prices as needed. It hit that target in August, and by mid-November it had peaked at more than 95%.

Gas prices bounced further off the 10-month low on Thursday to reach €85.50 per megawatt hour.

Europe has several months of domestic heating demand ahead, and some industry bosses believe energy shortages could also be a problem next winter, with a worst energy nightmare still possible if supplies tighten. However, traders have also had to weigh the effects of recessions expected in several big European economies, which could dent energy demand.

UK gas prices have also dropped back from their highs earlier this year, and forecasts suggest UK energy bills to drop in April. The day-ahead gas price closed at 155p per therm on Wednesday, compared with 200p/therm at the start of 2022, and more than 500p/therm in August.

Europe’s response to the prospect of gas shortages also included campaigns to reduce energy use – a strategy belatedly adopted by the UK – and windfall taxes on energy companies to help raise revenues for governments, many of which have started expensive subsidies to cushion the impact of high energy prices for households and consumers. Energy companies have enjoyed huge profits at the expense of businesses and households this year, as EU inflation accelerated, but costs remained much the same.

However, the US oil company ExxonMobil on Wednesday launched a legal challenge against EU plans for a windfall tax on oil companies, according to filings by its German and Dutch subsidiaries at the European general court in Luxembourg. ExxonMobil argued that the windfall tax would be “counter-productive” because it said it would result in lower investment in fossil fuel extraction, and that the EU did not have the legal jurisdiction to impose it.

ExxonMobil’s move has prompted anger among European politicians. A message posted on the Twitter account of Paolo Gentiloni, the EU’s commissioner for the economy, on Thursday stated: “Fairness and solidarity, even for corporate giants. #Exxon.”

Oil prices are significantly lower than they were before the start of Russia’s invasion, and only marginally above where they were at the start of 2022. Brent crude oil futures traded at $100 a barrel on 28 February, but were at $81.84 on Thursday.

Oil prices dropped by 1.7% on Thursday. Prices had risen from 12-month lows in early December as traders hoped for increased demand from China after it relaxed its coronavirus restrictions. However, Covid-19 infection numbers are thought to have surged in the country, prompting the US to require travellers from China to show a negative test for the disease and tempering expectations for a rapid increase in oil demand.

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Alberta Capacity Market Overhaul faces scrutiny over electricity costs, reliability targets, investor certainty, and AESO design, as UCP reviews NDP reforms, renewables integration, and deregulated energy-only alternatives impacting generators, ratepayers, and future power price volatility.

Key Points

A shift paying generators for capacity and energy to improve reliability; critics warn of higher electricity costs.

✅ UCP reviewing NDP plan and subsidies amid market uncertainty

✅ AESO cites reliability needs as coal retires, renewables grow

✅ Critics predict overprocurement and premature launch cost spikes

Jason Kenney's government is facing renewed pressure to cancel a massive overhaul of Alberta's power market that one player says will needlessly spike costs by hundreds of millions of dollars, amid an electricity sector in profound change today.

Nick Clark, who owns the Calgary-based electricity retailer Spot Power, has sent the Alberta government an open letter urging it to walk away from the electricity market changes proposed by the former NDP government.

"How can you encourage new industry to open up when one of their raw material costs will increase so dramatically?" Clark said. "The capacity market will add more costs to the consumer and it will be a spiral downwards."

But NDP Leader Rachel Notley, whose government ushered in the changes, said fears over dramatic cost increases are unfounded.

"There are some players within the current electricity regime who have a vested interest in maintaining the current situation," Notley said

Kenney's UCP vowed during the recent election to review the current and proposed electricity market options, as the electricity market heads for a reshuffle, with plans to report on its findings within 90 days.

The party also promised to scrap subsidies for renewable power, while ensuring "a market-based electricity system" that emphasizes competition in Alberta's electricity market for consumers.

The New Democrats had opted to scrap the current deregulated power market — in place since the Klein era — after phasing out coal-fired generation and ushering in new renewable power as part of changes in how Alberta produces and pays for electricity under their climate change strategy.

The Alberta Electric System Operator, which oversees the grid, says the province will need new sources of electricity to replace shuttered coal plants and backstop wind and solar generators, while meeting new consumer demand.

After consulting with power companies and investors, the AESO concluded in late 2016 the electricity market couldn't attract enough investment to build the needed power generation under the current model.

The AESO said at the time investors were concerned their revenues would be uncertain once new plants are running. It recommended what's known as a capacity market, which compensates power generators for having the ability to produce electricity, even when they're not producing it.

In other words, producers would collect revenue for selling electricity into the grid and, separately, for having the capacity to produce power as a backstop, ensuring the lights stay on. Power generators would use this second source of income to help cover plant construction costs.

Clark said the complex system introduces unnecessary costs, which he believes would hurt consumers in the end. He said what's preventing investment in the power market is uncertainty over how the market will be structured in the future.

"What investors need to see in this market is price certainty, regulatory ease, and where the money they're putting into the marketplace is not at risk," he said.

"They can risk their own money, but if in fact the government comes in and changes the policy as it was doing, then money stayed away from the province."

Notley said a capacity market would not increase power bills but would avoid big price swings, with protections like a consumer price cap on power bills also debated, while bringing greener sources of energy into Alberta's grid.

"Moving back to the [deregulated] energy-only market would make a lot of money for a few people, and put consumers, both industrial and residential, at great risk."

Clark disagrees, citing Enmax's recent submissions to the Alberta Utilities Commission, in which the utility argues the proposed design of the capacity market is flawed.

In its submissions to the commission, which is considering the future of Alberta's power market, Enmax says the proposed system would overestimate the amount of generation capacity the province will need in the future. It says the calculation could result in Alberta procuring too much capacity.

The City of Calgary-owned utility says this could drive up costs by anywhere from $147 million to $849 million a year. It says a more conservative calculation of future electricity demand could avoid the extra expense.

An analysis by a Calgary energy consulting firm suggests a different feature of the proposed power market overhaul could also lead to a massive spike in costs.

EDC Associates, hired by the Consumers' Coalition of Alberta, argues the proposal to launch the new system in November 2021 may be premature, because it could bring in additional supplies of electricity before they're needed.

The consultant's report, also filed with the Alberta Utilities Commission, estimates the early launch date could require customers to pay 40 per cent more for electricity amid rising electricity prices in the province — potentially an extra $1.4 billion — in 2021/22.

"The target implementation date is politically driven by the previous government," said Duane Reid-Carlson, president of EDC Associates.

Reid-Carlson recommends delaying the launch date by several years and making another tweak: reducing the proposed target for system reliability, which would scale back the amount of power generation needed to backstop renewable sources.

"You could get a result in the capacity market that would give a similar cost to consumers that the [deregulated] energy-only market design would have done otherwise," he said.

"You could have a better risk profile associated with the capacity market that would serve consumers better through lower cost, lower price volatility, and it would serve generators better by giving them better access to capital at lower costs."

The UCP government did not respond to a request for comment.

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Wall Street backs Rick Perry’s $19 billion nuclear-powered data center venture, Fermi America, combining nuclear energy, AI infrastructure, and data centers to meet soaring electricity demand and attract major investors betting on America’s clean energy technology future.

What is "Wall Street Backs Rick Perry’s $19 Billion Nuclear-Powered Data Center Venture”?

Wall Street is backing Rick Perry’s $19 billion nuclear-powered data center venture because it combines the explosive growth of AI with the promise of clean, reliable nuclear energy.

✅ Addresses AI’s massive power demands with nuclear generation

✅ Positions Fermi America as a pioneer in energy-tech convergence

✅ Reflects investor confidence in long-term clean energy solutions

Former Texas Governor and U.S. Energy Secretary Rick Perry has returned to the energy spotlight, this time leading a bold experiment at the intersection of nuclear power and artificial intelligence. His startup, Fermi America, headquartered in Amarillo, Texas, went public this week with an initial valuation of $19 billion after its shares surged 55 percent above the opening price on the first day of trading.

The company aims to tackle one of the most pressing challenges in modern technology: the staggering energy demand of AI data centers. “Artificial intelligence, which is getting more and more embedded in all parts of our lives, the servers that host the data for artificial intelligence are stored in these massive warehouses called data centers,” said Houston Chronicle energy reporter Claire Hao. “And data centers use a ton of electricity.”

Fermi America’s plan, Hao explained, is as ambitious as it is unconventional. Fermi America has a proposal to build what it claims will be the world’s largest data center, powered by what it asserts will be the country’s largest nuclear complex. So very ambitious plans.”

According to the company’s roadmap, Fermi aims to bring its first mega reactor online by 2032, followed by three additional large reactors. In the meantime, the firm intends to integrate natural gas and solar energy by the end of next year to support early-stage operations.

While much of the energy sector’s attention has turned toward small modular reactors, Fermi’s approach focuses on traditional large-scale nuclear technology. “What Fermi is talking about building are large traditional reactors,” Hao said. “These very large traditional reactors are a tried and true technology. But the nuclear industry has a history of taking a very long time to build them, and they are also very expensive to build.” She noted that the most recent example, completed in 2023 by a Georgia utility, came in $17 billion over budget and several years late.

To mitigate such risks, Fermi has recruited specialists with international experience. “They’ve hired folks that have successfully built these projects in China and in other countries where it has been a lot smoother to build these,” Hao said. “Fermi wants to try to make it a quicker process.”

Perry’s involvement lends both visibility and controversy. In addition to co-founding the company, Griffin Perry, his son, plays a role in its management. The firm has hinted that it might even name reactors after former President Donald Trump, under whom Perry served as Secretary of Energy. Perry has framed the project as part of a national effort to regain technological ground. “He really wants to help the U.S. catch up to countries like China when it comes to delivering nuclear power for the AI race,” Hao explained. “He says we’re already behind.”

Despite the fanfare, Fermi America is still a fledgling enterprise. Founded in January and announced publicly in June, the company reported a $6.4 million loss in the first half of the year and has yet to generate any revenue. Still, its IPO exceeded expectations, opening at $21 a share and closing above $32 on the first day.

“I think that just shows there’s a lot of hype on Wall Street around artificial intelligence-related ventures,” Hao said. “Fermi, in the four months since it announced itself as a company, has found a lot of different ways to grab people’s attention.”

For now, the project represents both a technological gamble and a test of investor faith — a fusion of nuclear ambition and AI optimism that has Wall Street watching closely.

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