Vietnam's power building surge pressures coal imports

Ontario Global Adjustment Supreme Court Appeal spotlights a constitutional challenge to Ontario's electricity charge, pitting National Steel Car against the IESO over regulatory charge vs tax, procurement policy, and renewable energy feed-in tariff contracts.

Key Points

An SCC leave bid on whether Ontario's global adjustment is a valid regulatory charge or an unconstitutional tax.

✅ Appeals Court revived case for full record review

✅ Dispute centers on regulatory charge vs tax classification

✅ FIT renewables contracts and procurement policies at issue

The Ontario government wants the Supreme Court of Canada to weigh in on a constitutional challenge being brought against a large provincial electricity charge, a case the province claims raises issues of national importance.

Ontario’s attorney general and its Independent Electricity System Operator applied for permission to appeal to the Supreme Court in January, according to the court’s website.

The province is trying to appeal a Court of Appeal decision reinstating the challenge from November that said a legal challenge by Hamilton, Ont.-based National Steel Car Ltd. should be sent back to a lower-court for a full hearing.

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National Steel Car launched its legal challenge in 2017, with the maker of steel rail cars claiming the province’s global adjustment electricity charge was a tax intended to fund certain post-financial-crisis policy goals. Since it is allegedly a tax, and one not imposed by the provincial legislature, the company’s argument is the global adjustment is unconstitutional, and also in breach of a provincial law requiring a referendum for new taxes.

The global adjustment mostly bridges the gap between the province’s hourly electricity price and the price guaranteed under contracts and regulated rates with power generators. It also helps cover the cost of building new electricity infrastructure and providing conservation programs, but the fee now makes up most of the commodity portion of a household power bill in the province.

Ontario argued the global adjustment is a valid regulatory charge, and moved to have National Steel Car’s challenge thrown out. An Ontario Superior Court judge agreed, and dismissed the challenge in 2018, saying it was “plain, obvious and beyond doubt” it could not succeed. However, an appeals court judge disagreed, writing in a decision last November that the “merits should not have been determined on a pleadings motion and without the development of a full record.”

In filings made to the Supreme Court, both the IESO and Ontario’s Ministry of the Attorney General argued their proposed appeals raise “issues of national and public importance,” such as whether incorporating environmental and social policy goals in procurement could turn attempts by a public body to recover costs into an unconstitutional tax.

Most applications for leave to appeal to the Supreme Court are dismissed, but the Ontario government claims the court’s guidance is required in this case, as it could lead to questions being raised about other fees or charges, such as money raised from fishing licences.

“A failure to dispose of this claim at the pleadings stage may well result in such uncertainty that public authorities across Canada decline to incorporate the kind of environmental and social policy goals objected to in this case into the decisions they make about how to spend funds raised from regulatory charges,” the filing from the attorney general states. “Alternatively, it may induce governments not to engage in cost recovery in connection with publicly supplied goods and services, which can otherwise be sound public policy.”

The government has so far had to pay National Steel Car $250,000 in legal costs “to avoid responding to the credible claim that the Global Adjustment is an unconstitutional tax,” said David Trafford of Morse Shannon LLP, one of National Steel Car’s lawyers.

“The application for leave to appeal is the next step in this effort to avoid having to respond to the case on the merits,” Trafford added in an email.

The application for leave to appeal is the next step in this effort to avoid having to respond to the case on the merits

David Trafford of Morse Shannon, one of National Steel Car’s lawyers
 
National Steel Car has particularly taken issue with the part of the global adjustment that funded contracts for renewable energy under a “feed-in tariff” program, or FIT, which the company called “the main culprit behind the dramatic price increases for electricity.”

The FIT program has been ended, but contracts awarded under it remain in place and form part of the global adjustment. Ontario’s auditor general estimated in 2015 that electricity consumers would pay $9.2 billion more for renewable energy under the government’s guaranteed-price program, a figure that later featured in a dispute between the auditor and the electricity regulator that drew political attention.

National Steel Car said its global adjustment costs grew from $207,260 in 2008 to almost $3.4 million in 2016, reflecting how high electricity rates have pressured manufacturers, to almost $3.4 million in 2016. For 2018, there was approximately $11.2 billion in global adjustment collected, according to the IESO’s reporting.

A spokesperson for the IESO said it “is not in a position to comment” because the case is still before the courts.

Electricity prices have been an ongoing problem for both Ontario consumers and politicians, which the previous Liberal government tried to address in 2017 by, among other things, refinancing global-adjustment costs through the Fair Hydro Plan and other measures.

Since National Steel Car filed its lawsuits, though, the Liberals lost power in the province and were succeeded in 2018 by Premier Doug Ford and the Progressive Conservatives, who made changes to the previous government’s power policies, including legislation to lower electricity rates introduced early in their mandate.

The province has also pursued interprovincial power arrangements, including building on an electricity deal with Quebec as part of its broader energy strategy.

“The present government of Ontario does not agree with the former government’s electricity procurement program, which ceased awarding new contracts in 2016,” Ontario’s attorney general said in a filing. “However, Ontario submits that (the lower-court judge) was correct in holding that it does not give rise to a claim susceptible to being remedied by the courts.”

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Developing Countries Clean Energy investment fell as renewable energy financing slowed in China; solar and wind growth lagged while coal power hit new highs, raising emissions risks for emerging markets and complicating climate change goals.

Key Points

Renewables investment and power trends in emerging nations: solar, wind, coal shifts, and steps toward decarbonization.

✅ Investment fell to $133b; China dropped to $86b

✅ Coal power rose to 6,900 TWh; 47% generation share

✅ New coal builds declined to 39 GW, decade low

New clean energy investment slid by more than a fifth in developing countries last year due to a slowdown in China, while the amount of coal-fired power generation jumped to a new high, reflecting global power demand trends, a recent annual survey showed.

Bloomberg New Energy Finance (BNEF) surveyed 104 emerging markets and found that developing nations were moving towards cleaner, low-emissions sources in many regions, but not fast enough to limit carbon dioxide emissions or the effects of climate change.

New investment in wind, solar and other clean energy projects dropped to $133 billion last year from $169 billion a year earlier, mainly due to a slump in Chinese investment, even as electricity investment globally surpasses oil and gas for the first time, the research showed.

China’s clean energy investment fell to $86 billion from $122 billion a year earlier, with dynamics in China's electricity sector also in focus. Investment by India and Brazil also declined, mainly due to lower costs for solar and wind.

However, the volume of coal-fired power generation produced and consumed in developing countries increased to a new high of 6,900 terrawatt hours (TWh) last year, even as renewables are poised to eclipse coal globally, from 6,400 TWh in 2017.

The increase of 500 TWh is equivalent to the power consumed in the U.S. state of Texas in one year, underscoring how surging electricity demand is putting power systems under strain. Coal accounted for 47% of all power generation across the 104 countries.

“The transition from coal toward cleaner sources in developing nations is underway,” said Ethan Zindler, head of Americas at BNEF. “But like trying to turn a massive oil tanker, it takes time.”

Despite the spike in coal-fired generation, the amount of new coal capacity which was added to the grid in developing countries declined, with Europe's renewables crowding out gas offering a contrasting pathway. New construction of coal plants fell to its lowest level in a decade last year of 39 gigawatts (GW).

The report comes a week ahead of United Nations climate talks in Madrid, Spain, where more than 190 countries will flesh out the details of an accord to limit global warming.

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Yukon Electricity Demand Record underscores peak load growth as winter cold snaps drive heating, lighting, and EV charging, blending hydro, LNG, and diesel with renewable energy and planned grid-scale battery storage in Whitehorse.

Key Points

It is the territory's new peak electricity load, reflecting winter demand, electric heating, EVs, and mixed generation.

✅ New peak: 104.42 MW, surpassing 2020 record of 103.84 MW

✅ Winter peaks met with hydro, LNG, diesel, and renewables mix

✅ Customers urged to shift use off peak hours and use timers

A new record for electricity demand has been set in Yukon. The territory recorded a peak of 104.42 megawatts, according to a news release from Yukon Energy.

The new record is about a half a megawatt higher than the previous record of 103.84 megawatts recorded on Jan. 14, 2020.

While in general, over 90 per cent of the electricity generated in Yukon comes from renewable resources each year, with initiatives such as new wind turbines expanding capacity, during periods of high electricity use each winter, Yukon Energy has to use its hydro, liquefied natural gas and diesel resources to generate the electricity, the release says.

But when it comes to setting records, Andrew Hall, CEO of Yukon Energy, says it's not that unusual.

"Typically, during the winter, when the weather is cold, demand for electricity in the Yukon reaches its maximum. And that's because folks use more electricity for heating their homes, for cooking meals, there's more lighting demand, because the days are shorter," he said.

"It usually happens either in December or sometimes in January, when we get a cold snap."

He said generally over the years, electricity demand has grown.

"We get new home construction, construction of new apartment buildings. And typically, those new homes are all heated by electricity, maybe not all of them but the majority," Hall said.

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There are also other reasons, ones that are "in the name of climate change," Hall added.

That includes people trying to limit fossil fuel heating by swapping to electric heating. And, he said some Yukoners are switching to electric vehicles as incentives expand across the North.

"Over time, those two new demands, in the name of climate change, will also contribute to growing demand for electricity," he said.

While Yukon did reach this new all time high, Hall said the territory still hadn't hit the maximum capacity for the week, which was 118 megawatts, and discussions about a potential connection to the B.C. grid are part of long-term planning.

Yukon Energy's hydroelectric dam in Whitehorse. Yukon Energy's CEO, Andrew Hall, said demand of 104 megawatts wasn't unexpected, nor was it an emergency. The corporation has the ability to generate 118 megawatts. (Paul Tukker/CBC)
Tips to curve demand
"When we plan our system, we actually plan for a scenario, guided by the view that sustainability is key to the grid's future, where we actually lose our largest hydro generating facility," Hall said.

"We had plenty of generation available so it wasn't an emergency situation, and, even as other provinces face electricity shortages, it was more just an observation that hey, our peaks are growing."

He also said it was an opportunity to reach out to customers on ways to curve their demand for electricity around peak times, drawing on energy efficiency insights from other provinces, which is typically between 7 a.m. and 9 a.m., and between 5 p.m. and 7 p.m., Monday to Friday.

For example, he said, people should consider running major appliances, like dishwashers, during non-peak hours, such as in the afternoon rather than in the morning or evening.

During winter peaks, people can also use a block heater timer on vehicles and turn down the thermostat by one or two degrees.

'We plan for each winter'
Hall said Yukon Energy is working to increase its peak output, including working on a large grid scale battery to be installed in Whitehorse, similar to Ontario's energy storage push now underway. 

When it comes to any added load from people working from home due to COVID-19, Hall said they haven't noticed any identifiable increase there.

"Presumably, if someone's working from home, you know, their computer is at home, and they're not using the computer at the office," he said.

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He said there shouldn't be any concern for maxing out the capacity of electricity demand as Yukon moves into the colder winter months, since those days are forecast for.

"This number of 104 megawatts wasn't unexpected," he said, adding how much electricity is needed depends on the weather too.

"We plan for each winter."

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Ontario Global Adjustment Appeal spotlights Ontario's electricity fee, regulatory charge vs tax debate, FIT contracts, green energy policy, and constitutional challenge as National Steel Car contests soaring power costs before the Ontario Superior Court.

Key Points

Court challenge over Ontario's global adjustment fee, disputing its status as a regulatory charge instead of a tax.

✅ Challenges classification of global adjustment as tax vs regulatory charge.

✅ Focuses on FIT contracts, renewable energy payments, power cost impacts.

✅ Appeals Ontario ruling; implications for ratepayers and policy.

A manufacturer of steel rail cars is pursuing an appeal after its lawsuit challenging the constitutionality of a major Ontario electricity fee was struck down earlier this year.

Lawyers for Hamilton, Ont.-based National Steel Car Ltd. filed a notice of appeal in July after Ontario Superior Court Justice Wendy Matheson ruled in June that an electricity fee known as the global adjustment charge was a regulatory charge, and not an unconstitutional tax used to finance policy goals, as National Steel Car alleges.

The company, the decision noted, began its legal crusade last year after seeing its electricity bills had “increased dramatically” since the Ontario government passed green energy legislation nearly a decade ago, and amid concerns that high electricity rates are hurting Ontario manufacturers.

Under that legislation, the judge wrote, “private suppliers of renewable energy were paid to ’feed in’ energy into Ontario’s electricity grid.” The contracts for these so-called “feed-in tariff” contracts, or FIT contracts, were the “primary focus” of the lawsuit.

“The applicant seeks a declaration that part of the amount it has paid for electricity is an unconstitutional tax rather than a valid regulatory charge,” the judge added. “More specifically, it challenges part of the Global Adjustment, which is a component of electricity pricing and incorporates obligations under FIT contracts.”

Chiefly representing the difference between Ontario’s market price for power and the guaranteed price owed to generators, global adjustment now makes up the bulk of the commodity cost of electricity in the province. The fee has risen over the past decade, amid calls to reject steep Nova Scotia rate hikes as well — costing electricity customers $37 billion in global adjustment from 2006 to 2014, according to the province’s auditor general — because of investments in the electricity grid and green-energy contracts, among other reasons.

National Steel Car argued the global adjustment is a tax, and an unconstitutional one at that because it violated a section of the Constitution Act requiring taxes to be authorized by the legislature. The company also said the imposition of the global adjustment broke an Ontario law requiring a referendum to be held for new taxes.

The province, Justice Matheson wrote, had argued “that it is plain and obvious that these applications will fail.” In a decision released in June, the judge granted motions to strike out National Steel Car’s applications.

“The Global Adjustment,” she added, “is not a tax because its purpose, in pith and substance, is not to tax, and it is a regulatory charge and therefore, again, not a tax.”

Now, National Steel Car is arguing that the judge erred in several ways, including in fact, “by finding that the FIT contracts must be paid, when they can be cancelled.”

There has been a change in government at Queen’s Park since National Steel Car first filed its lawsuit last year, and that change has put green energy contracts under fire. The Progressive Conservative government of new Premier Doug Ford has already made a number of decisions on the electricity file, such as moving to cancel and wind down more than 750 renewable energy contracts, as well as repealing the province’s Green Energy Act.

The Tories also struck a commission of inquiry into the province’s finances that warned the global adjustment “may be struck down as unconstitutional,” a warning delivered amid cases where Nova Scotia's regulator approved a 14% rate hike in a high-profile decision.

“There is a risk that a court may find the global adjustment is not a valid regulatory charge if shifting costs over a longer period of time inadvertently results in future ratepayers cross-subsidizing today’s ratepayers,” the commission’s report said.

A spokesperson for Ontario’s Ministry of Energy, Northern Development and Mines said in an email that it would be “inappropriate to comment about the specifics of any case before the courts or currently under arbitration.”

National Steel Car is also prepared to fight its case all the way up to the Supreme Court of Canada, according to its lawyer.

“What is clear from our proceeding with the appeal is National Steel Car has every intention of seeing that lawsuit through to its conclusion if this government isn’t interested or prepared to reasonably settle it,” Jerome Morse said.

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Ukraine Power Grid Attacks disrupt critical infrastructure as missiles and drones strike power plants, substations, and lines, causing blackouts. Emergency repairs, international aid, generators, and renewables bolster resilience and keep hospitals and water running.

Key Points

Russian strikes on Ukraine's power infrastructure cause blackouts; repairs and aid sustain hospitals and water.

✅ Missile and drone strikes target plants, substations, and lines.

✅ Crews restore power under fire; air defenses protect sites.

✅ Allies supply equipment, generators, and grid repair expertise.

Ukraine is facing an ongoing battle to maintain its electrical grid in the wake of relentless Russian attacks targeting power plants and energy infrastructure. These attacks, which have intensified in the last year, are part of Russia's broader strategy to weaken Ukraine's ability to function amid the ongoing war. Power plants, substations, and energy lines have become prime targets, with Russian forces using missiles and drones to destroy critical infrastructure, as western Ukraine power outages have shown, leaving millions of Ukrainians without electricity and heating during harsh winters.

The Ukrainian government and energy companies are working tirelessly to repair the damage and prevent total blackouts, while also trying to ensure that civilians have access to vital services like hospitals and water supplies. Ukraine has received support from international allies in the form of technical assistance and equipment to help strengthen its power grid, and electricity reserve updates suggest outages can be avoided if no new strikes occur. However, the ongoing nature of the attacks and the complexity of repairing such extensive damage make the situation extraordinarily difficult.

Despite these challenges, Ukraine's resilience is evident, even as winter pressures on the battlefront intensify operations. Energy workers are often working under dangerous conditions, risking their lives to restore power and prevent further devastation. The Ukrainian government has prioritized the protection of energy infrastructure, with military forces being deployed to safeguard workers and critical assets.

Meanwhile, the international community continues to support Ukraine through financial and technical aid, though some U.S. support programs have ended recently, as well as providing temporary power solutions, like generators, to keep essential services running. Some countries have even sent specialized equipment to help repair damaged power lines and energy plants more quickly.

The humanitarian consequences of these attacks are severe, as access to electricity means more than just light—it's crucial for heating, cooking, and powering medical equipment. With winter temperatures often dropping below freezing, plans to keep the lights on are vital to protect vulnerable communities, and the lack of reliable energy has put many lives at risk.

In response to the ongoing crisis, Ukraine has also focused on enhancing its energy independence, seeking alternatives to Russian-supplied energy. This includes exploring renewable energy sources, such as solar and wind power, and new energy solutions adopted by communities to overcome winter blackouts, which could help reduce reliance on traditional energy grids and provide more resilient options in the future.

The battle for energy infrastructure in Ukraine illustrates the broader struggle of the country to maintain its sovereignty and independence in the face of external aggression. The destruction of power plants is not only a military tactic but also a psychological one—meant to instill fear and disrupt daily life. However, the unwavering spirit of the Ukrainian people, alongside international support, including Ukraine's aid to Spain during blackouts as one example, continues to ensure that the fight to "keep the lights on" is far from over.

As Ukraine works tirelessly to repair its energy grid, it also faces the challenge of preparing for the long-term impact of these attacks. The ongoing war has highlighted the importance of securing energy infrastructure in modern conflicts, and the world is watching as Ukraine's resilience in this area could serve as a model for other nations facing similar threats.

Ukraine’s energy struggle is far from over, but its determination to keep the lights on remains a beacon of hope and defiance in the face of ongoing adversity.

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Ultra-Low Overnight Price Plan delivers flexible electricity pricing from Hydro One and the Ontario Energy Board, with TOU, tiered options, off-peak EV charging savings, balanced billing, and an online calculator to optimize bills.

Key Points

An Ontario pricing option with ultra-low night rates, helping Hydro One customers save by shifting usage to off-peak.

✅ Four periods with ultra-low overnight rate for EV charging

✅ Compare TOU vs tiered with Hydro One's online calculator

✅ Balanced billing and due date choice support budget control

Hydro One has announced that customers have even more choice and flexibility when it comes to how they are billed for electricity with the company's launch of the Ontario Energy Board's new Ultra-Low Overnight Electricity Price Plan for customers. A new survey of Ontario customers, conducted by Innovative Research Group, shows that 74 per cent of Ontarians find having choice between electricity pricing plans useful.

"As their trusted energy advisor, we want our customers to know we have the insights and tools to help them make the right choice when it comes to their electricity plans," said Teri French, Executive Vice President, Safety, Operations and Customer Experience. "We know that choice and flexibility are important to our customers, and we are proud to now offer them a third option so they can select the plan that best fits their lifestyle."

The same survey revealed that fewer than half of Ontarians are familiar with either tiered or the new ultra-low overnight price plans. To better support its customers Hydro One is providing an online calculator to help them choose which pricing plan best suits their lifestyle. The company also offers additional flexibility and assistance in managing household budgets by providing customers with the ability to choose their billing due date and flatten usage spikes from temperature fluctuations through balanced billing.

During the pandemic, Ontario introduced electricity relief to support families, small businesses and farms, complementing these customer options.

"By offering families and small businesses more choice, we are putting them back in control of their energy bills," said Todd Smith, Minister of Energy. "Starting today Hydro One customers have a new option - the Ultra-Low Electricity Price Plan - which could help them save money each year, while making our province's grid more efficient."

Electricity price plan options

• New Ultra-Low Overnight price plan (ULO): Designed for customers who use more electricity at night, such as those who charge their electric vehicle, this new price plan can help customers keep costs down and take control of their electricity bill by shifting usage to the ultra-low overnight price period and related off-peak electricity rates when province-wide electricity demand is lower.
• This plan has four price periods that are the same in the summer as they are in the winter and includes an ultra-low overnight rate.
• Time-of-Use price plan (TOU): TOU provides customers with more control over their electricity bill by adjusting their usage habits with time-of-use rates used in other jurisdictions as well.
• In this plan, electricity prices change throughout each weekday, when demand is on-peak, and peak hydro rates can affect overall costs.
• Tiered price plan (RPP): Tiered pricing provides customers with the flexibility to use electricity at any time of day at the same low price up until the threshold is exceeded during the month, after that usage is charged at a higher price.
• For residential customers, the winter period (November 1 – April 30) threshold is 1,000 kWh per month and the summer period (May 1 – October 31) threshold is 600 kWh per month. 
• For small business customers, the threshold is 750 kWh throughout the year, while broader stable electricity pricing supports industrial and commercial companies.

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