Nuclear power called pivotal

By Milwaukee Journal Sentinel


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The threat of global warming makes it imperative to have nuclear power options available as the state and nation plan for future energy needs, the former general counsel of a state environmental group said.

"We need to have all hands on deck," said Frank Jablonski of Progressive Law Group of Madison.

Jablonski told a pair of legislative committees that the nation needs to wean itself from its reliance on carbon-intensive fossil-fuel power plants as it seeks to reduce greenhouse gas emissions by 60% to 80% by 2050.

"You don't get there from here realistically without nuclear power being part of the mix," he said.

Jablonski is the former general counsel of Wisconsin's Environmental Decade, the group now known as Clean Wisconsin. At the hearing, the group's head of energy policy, Katie Nekola, cautioned against expanding nuclear power in the state.

Though the nation hasn't had any nuclear power industry accidents since the near meltdown at Three Mile Island in Pennsylvania 30 years ago this month, the industry still has risks and there are safer energy alternatives, she said.

"You don't see armed guards around wind turbines and energy-efficient buildings don't require 10-mile evacuation zones," Nekola said.

Thursday's hearing was designed to provide perspective on nuclear power, which generates one-sixth of the state's electricity, and came as the Legislature is considering relaxing the state's moratorium on building nuclear reactors.

State law says a nuclear plant can't be approved until the federal government has resolved the question of where to store radioactive waste — the spent nuclear fuel — that is a byproduct of nuclear power production.

Spent fuel is currently kept in concrete and steel casks at 55 reactors around the country, including the Point Beach plant in Wisconsin. Vaults to house casks have been built at the Kewaunee nuclear plant east of Green Bay, said Mark Kanz, spokesman for Dominion Resources Inc.

The Virginia-based company is seeking approval from the Nuclear Regulatory Commission to begin transferring spent fuel from a pool inside the Kewaunee reactor to the vaults outside the plant. The transfer of fuel to outside storage could begin later this year, Kanz said.

U.S. Energy Secretary Steven Chu told Congress that he considers the government's long-term plan for nuclear waste storage unworkable and said he plans to appoint a commission to recommend other strategies for how to dispose of spent fuel.

Patrick Moore, a co-founder of the environmental group Greenpeace who now heads an energy coalition funded by the Nuclear Energy Institute, said he believes the government should set up three or four sites for long-term storage of spent fuel, with the aim of starting research and initiatives to begin reprocessing nuclear fuel.

The demise of the Yucca Mountain proposal comes as Wisconsin electricity customers have paid more than $344 million over the years to the federal government to help pay for the project, according to Nuclear Energy Institute data.

But Wisconsin could have a stake in the demise of the Yucca Mountain plan, Nekola said, noting that a stretch of northern Wisconsin was considered as an alternative site for storing spent nuclear fuel before the Nevada site was selected by Congress.

Rep. Jim Soletski, (D-Green Bay), who chairs the Assembly Energy and Utilities Committee, said a measure to relax the state's moratorium on nuclear power will be included in a global warming bill that the Legislature may consider late this year or next year.

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We Energies refiles rate hike request driven by rising nuclear power costs

We Energies rate increase driven by nuclear energy costs at Point Beach, Wisconsin PSC filings, and rising utility rates, affecting electricity prices for residential, commercial, and industrial customers while supporting WEC carbon reduction goals.

 

Key Points

A 2021 utility rate hike to recover Point Beach nuclear costs, modestly raising Wisconsin electricity bills.

✅ Residential bills rise about $0.73 per month

✅ Driven by $55.82/MWh Point Beach contract price

✅ PSC review and consumer advocates assessing alternatives

 

Wisconsin's largest utility company is again asking regulators to raise rates to pay for the rising cost of nuclear energy.

We Energies says it needs to collect an additional $26.5 million next year, an increase of about 3.4%.

For residential customers, that would translate to about 73 cents more per month, or an increase of about 0.7%, while some nearby states face steeper winter rate hikes according to regulators. Commercial and industrial customers would see an increase of 1% to 1.5%, according to documents filed with the Public Service Commission.

If approved, it would be the second rate increase in as many years for about 1.1 million We Energies customers, who saw a roughly 0.7% increase in 2020 after four years of no change, while Manitoba Hydro rate increase has been scaled back for next year, highlighting regional contrasts.

We Energies' sister utility, Wisconsin Public Service Corp., has requested a 0.13% increase, which would add about 8 cents to the average monthly residential bill, which went up 1.6% this year.

We Energies said a rate increase is needed to cover the cost of electricity purchased from the Point Beach nuclear power plant, which according to filings with the Securities Exchange Commission will be $55.82 per megawatt-hour next year.

So far this year, the average wholesale price of electricity in the Midwestern market was a little more than $25.50 per megawatt-hour, and recent capacity market payouts on the largest U.S. grid have fallen sharply, reflecting broader market conditions.

Owned and operated by NextEra Energy Resources, the 1,200-megawatt Point Beach Nuclear Plant is Wisconsin's last operational reactor. We Energies sold the plant for $924 million in 2007 and entered into a contract to purchase its output for the next two decades.

Brendan Conway, a spokesman for WEC Energy Group, said customers have benefited from the sale of the plant, which will supply more than a third of We Energies' demand and is a key component in WEC's strategy to cut 80% of its carbon emissions by 2050, amid broader electrification trends nationwide.

"Without the Point Beach plant, carbon emissions in Wisconsin would be significantly higher," Conway said.

As part of negotiations on its last rate case, WEC agreed to work with consumer advocates and the PSC to review alternatives to the contracted price increases, which were structured to begin rising steeply in 2018.

Tom Content, executive director of the Citizens Utility Board, said the contract will be an issue for We Energies customers into the next decade

"It's a significant source (of energy) for the entire state," Content said. "But nuclear is not cheap."

WEC filed the rate requests Monday, one week after the withdrawing similar applications. Conway said the largely unchanged filings had "undergone additional review by senior management."

WEC last week raised its second quarter profit forecast to 67 to 69 cents per share, up from the previous range of 58 to 62 cents per share.

The company credited better than expected sales in April and May along with operational cost savings and higher authorized profit margin for American Transmission Company, of which WEC is the majority owner.

Wisconsin's other investor-owned utilities have reported lower than expected fuel costs for 2020 and 2021, even as emergency fuel stock programs in New England are expected to cost millions this year.

Alliant Energy has proposed using about $31 million in fuel savings to help freeze rates in 2021, aligning with its carbon-neutral electricity plans as it rolls out long-term strategy, while Xcel Energy is proposing to lower its rates by 0.8% next year and refund its customers about $9.7 million in fuel costs for this year.

Madison Gas and Electric is negotiating a two-year rate structure with consumer groups who are optimistic that fuel savings can help prevent or offset rate increases, though some utilities are exploring higher minimum charges for low-usage customers to recover fixed costs.

 

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EPA: New pollution limits proposed for US coal, gas power plants reflect "urgency" of climate crisis

EPA Power Plant Emissions Rule proposes strict greenhouse gas limits for coal and gas units, leveraging carbon capture (CCS) under the Clean Air Act to cut CO2 and accelerate decarbonization of the U.S. grid.

 

Key Points

A proposed EPA rule setting CO2 limits for coal and gas plants, using CCS to cut power-sector greenhouse gases.

✅ Applies to existing and new coal and large gas units

✅ Targets near-zero CO2 by 2038 via CCS or retirement

✅ Cites grid, health, and climate benefits; faces legal challenges

 

The Biden administration has proposed new limits on greenhouse gas emissions from coal- and gas-fired power plants, its most ambitious effort yet to roll back planet-warming pollution from the nation’s second-largest contributor to climate change.

A rule announced by the Environmental Protection Agency could force power plants to capture smokestack emissions using a technology that has long been promised but is not used widely in the United States, and arrives amid changes stemming from the NEPA rewrite that affect project reviews.

“This administration is committed to meeting the urgency of the climate crisis and taking the necessary actions required,″ said EPA Administrator Michael Regan.

The plan would not only “improve air quality nationwide, but it will bring substantial health benefits to communities all across the country, especially our front-line communities ... that have unjustly borne the burden of pollution for decades,” Regan said in a speech at the University of Maryland.

President Joe Biden, whose climate agenda includes a clean electricity standard as a key pillar, called the plan “a major step forward in the climate crisis and protecting public health.”

If finalized, the proposed regulation would mark the first time the federal government has restricted carbon dioxide emissions from existing power plants, following a Trump-era replacement of Obama’s power plant overhaul, which generate about 25% of U.S. greenhouse gas pollution, second only to the transportation sector. The rule also would apply to future electric plants and would avoid up to 617 million metric tons of carbon dioxide through 2042, equivalent to annual emissions of 137 million passenger vehicles, the EPA said.

Almost all coal plants — along with large, frequently used gas-fired plants — would have to cut or capture nearly all their carbon dioxide emissions by 2038, the EPA said, a timeline that echoed concerns raised during proposed electricity pricing changes in the prior administration. Plants that cannot meet the new standards would be forced to retire.

The plan is likely to be challenged by industry groups and Republican-leaning states, much like litigation over the Affordable Clean Energy rule unfolded in recent years. They have accused the Democratic administration of overreach on environmental regulations and warn of a pending reliability crisis for the electric grid. The power plant rule is one of at least a half-dozen EPA rules limiting power plant emissions and wastewater treatment rules.

“It’s truly an onslaught” of government regulation “designed to shut down the coal fleet prematurely,″ said Rich Nolan, president and CEO of the National Mining Association.

Regan denied that the power plant rule was aimed at shutting down the coal sector, but acknowledged — even after the end to the 'war on coal' rhetoric — “We will see some coal retirements.”

 

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Enbridge Insists Storage Hub Lives On After Capital Power Pullout

Enbridge Alberta CCS Project targets carbon capture and storage in Alberta, capturing emissions from industrial emitters to advance net-zero goals, leveraging carbon pricing, regulatory support, and a hub model despite a key partner's exit.

 

Key Points

A proposed Alberta carbon capture hub by Enbridge to store industrial emissions and support net-zero targets.

✅ Seeks emitters across power, oil and gas, and heavy industry

✅ Backed by carbon pricing, regulation, and net-zero mandates

✅ Faces high capex, storage risk, and anchor-tenant uncertainty

 

Enbridge Inc., a Canadian energy giant, is digging its heels in on its proposed carbon capture and storage (CCS) project in Alberta. This comes despite the recent withdrawal of Capital Power, a major potential emitter that was expected to utilize the CCS technology. Enbridge maintains the project remains viable, but questions linger about its future viability without a cornerstone anchor.

The CCS project, envisioned as a major carbon capture hub in Alberta, aimed to capture emissions from industrial facilities and permanently store them underground. This technology has the potential to play a significant role in reducing greenhouse gas emissions and mitigating the effects of climate change, alongside grid solutions like bridging the Alberta-B.C. electricity gap that can complement decarbonization efforts.

Capital Power's decision to shelve its $2.4 billion Genesee Generating Station project, which was designed to integrate with the CCS hub, threw a wrench into Enbridge's plans. The Genesee project was expected to be a key source of emissions for capture and storage, and its status is being weighed as Ottawa advances the federal coal plan to phase out unabated coal.

Enbridge, however, remains optimistic. The company cites ongoing discussions with other potential emitters interested in utilizing the CCS technology, amid new funding signals such as the U.S. DOE's $110M for CCUS that highlight momentum. They believe the project holds significant value despite Capital Power's departure.

"We are confident in the long-term viability of the project and continue to actively engage with potential customers," said Enbridge spokesperson Rachel Giroux. "Carbon capture and storage is a critical technology for achieving net-zero emissions, and we believe there is a strong business case for our CCS project."

Enbridge's confidence hinges on several factors. Firstly, they believe there is a growing appetite for CCS technology amongst industrial facilities facing increasing pressure to reduce their carbon footprint. Regulations and carbon pricing mechanisms, including new U.S. EPA power plant rules that test CCS readiness, could further incentivize companies to adopt CCS solutions.

Secondly, Enbridge highlights the potential for capturing emissions from not just power plants but also from other industrial sectors like oil and gas production and clean hydrogen projects in Canada, where reforming processes can generate CO2. This broader application could significantly increase the captured carbon volume and strengthen the project's economic viability.

However, skepticism remains. Critics point to the high upfront costs associated with CCS development and the nascent stage of the technology. They argue that without a guaranteed stream of captured emissions, the project might not be financially sound. Additionally, the long-term safety and effectiveness of large-scale carbon storage solutions remain under scrutiny.

The success of Enbridge's CCS project hinges on attracting new emitters. Replacing Capital Power's contribution will be a significant challenge. Enbridge will need to demonstrate the project's economic viability and navigate the complex regulatory landscape surrounding CCS technology.

The Alberta government's position on CCS is crucial. While the government has expressed support for the technology, the level of financial and regulatory incentives offered will significantly impact investor confidence, especially as the IEA net-zero outlook underscores Canada's need for much more electricity. A clear and stable policy framework will be essential for attracting emitters to the project.

The future of Enbridge's CCS project remains uncertain. Capital Power's withdrawal is a setback, but Enbridge's continued commitment suggests they believe the technology holds promise. Whether they can find enough emitters to justify the project's development will be a critical test. The outcome will have significant implications for the future of CCS technology in Alberta and Canada's broader efforts to achieve net-zero emissions, including Canada-Germany clean energy cooperation that seeks to scale low-carbon fuels.

 

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California Blackouts reveal lapses in power supply

California Electricity Reliability covers grid resilience amid heat waves, rolling blackouts, renewable energy integration, resource adequacy, battery storage, natural gas peakers, ISO oversight, and peak demand management to keep homes, businesses, and industry powered.

 

Key Points

Dependable California power delivery despite heat waves, peak demand, and challenges integrating renewables into grid.

✅ Rolling blackouts revealed gaps in resource adequacy.

✅ Early evening solar drop requires fast ramping and storage.

✅ Agencies pledge planning reforms and flexible backup supply.

 

One hallmark of an advanced society is a reliable supply of electrical energy for residential, commercial and industrial consumers. Uncertainty that California electricity will be there when we need it it undermines social cohesion and economic progress, as demonstrated by the travails of poor nations with erratic energy supplies.

California got a small dose of that syndrome in mid-August when a record heat wave struck the state and utilities were ordered to impose rolling blackouts to protect the grid from melting down under heavy air conditioning demands.

Gov. Gavin Newsom quickly demanded that the three overseers of electrical service to most of the state - the Public Utilities Commission, the Energy Commission and the California Independent Service Operator – explain what went wrong.

"These blackouts, which occurred without prior warning or enough time for preparation, are unacceptable and unbefitting of the nation's largest and most innovative state," Newsom wrote. "This cannot stand. California residents and businesses deserve better from their government."

Initially, there was some fingerpointing among the three entities. The blackouts had been ordered by the California Independent System Operator, which manages the grid and its president, Steve Berberich, said he had warned the Public Utilities Commission about the potential supply shortfall facing the state.

"We have indicated in filing after filing after filing that the resource adequacy program was broken and needed to be fixed," he said. "The situation we are in could have been avoided."

However, as political heat increased, the three agencies hung together and produced a joint report that admitted to lapses of supply planning and grid management and promised steps to avoid a repeat next summer.

"The existing resource planning processes are not designed to fully address an extreme heat storm like the one experienced in mid August," their report said. "In transitioning to a reliable, clean and affordable resource mix, resource planning targets have not kept pace to lead to sufficient resources that can be relied upon to meet demand in the early evening hours. This makes balancing demand and supply more challenging."

Although California's grid had experienced greater heat-related demands in previous years, most notably 2006, managers then could draw standby power from natural gas-fired plants and import juice from other Western states when necessary.

Since then, the state has shut down a number of gas-fired plants and become more reliant on renewable but less reliable sources such as windmills and solar panels.

August's air conditioning demand peaked just as output from solar panels was declining with the setting of the sun and grid managers couldn't tap enough electrons from other sources to close the gap.

While the shift to renewables didn't, unto itself, cause the blackouts, they proved the need for a bigger cushion of backup generation or power storage in batteries or some other technology. The Public Utilities Commission, as Beberich suggested, has been somewhat lax in ordering development of backup supply.

In the aftermath of the blackouts, the state Water Resources Control Board, no doubt with direction from Newsom's office, postponed planned shutdowns of more coastal plants, which would have reduced supply flexibility even more.

Shifting to 100% renewable electricity, the state's eventual goal, while maintaining reliability will not get any easier. The state's last nuclear plant, Diablo Canyon, is ticketed for closure and demand will increase as California eliminates gasoline- and diesel-powered vehicles in favor of "zero emission vehicles" as part of its climate policies push and phases out natural gas in homes and businesses.

Politicians such as Newsom and legislators in last week's blackout hearing may endorse a carbon-free future in theory, but they know that they'll pay the price as electricity prices climb if nothing happens when Californians flip the switch.

 

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Quebec Halts Crypto Mining Electricity Requests

Hydro-Quebec Crypto Mining Pause signals a temporary halt as blockchain power requests surge; energy regulator review will weigh electricity demand, winter peak constraints, tariffs, investments, and local jobs to optimize grid stability and revenues.

 

Key Points

A provincial halt on new miner power requests as Hydro-Quebec sets rules to safeguard demand, winter peaks, and rates.

✅ Temporary halt on new electricity sales to crypto miners

✅ Regulator to rank projects by jobs, investment, and revenue

✅ Winter peak demand and tariffs central to new framework

 

Major Canadian electricity provider Hydro-Québec will temporarily stop processing requests from cryptocurrency miners in order for the company to fulfil its obligations to supply energy to the entire province, while its global ambitions adjust to changing demand, according to a press release published June 7.

Hydro-Québec is experiencing “unprecedented” demand from blockchain companies, which reportedly exceeds the electric utility’s short and medium-term capacity. In this regard, the Quebec provincial government has ordered Hydro-Québec to halt electric power sales to cryptocurrency miners, and, following the New Hampshire rejection of Northern Pass announced a new framework for this category of electricity consumers.

In the coming days, Hydro-Québec will reportedly file an application to local energy regulator Régie de l'énergie, proposing a selection process for blockchain industry projects so as “not to miss the opportunities offered by this industry.” Regulators will reportedly target companies which can offer the province the most profitable economic advantages, including investments and local job creation.

#google#

Régie de l'énergie is instructed to consider “the need for a reserved block of energy for this category of consumers, the possibility of maximizing Hydro-Québec's revenues, and issues related to the winter peak period” as well as interprovincial arrangements like the Ontario-Québec electricity deal under discussion. Éric Filion, President of Hydro-Québec Distribution, said:

"The blockchain industry is a promising avenue for Hydro-Québec. Guidelines are nevertheless required to ensure that the development of this industry maximizes spinoffs for Québec without resulting in rate increases for our customers. We are actively participating in the Régie de l'énergie's process so that these guidelines can be produced as quickly as possible."

With this move, the government of Québec deviates from its decision to reportedly open the electricity market to miners at the end of last month, even as an Ontario-Quebec energy swap helps manage electricity demands. In March, the government said it was not interested in providing cheap electricity to Bitcoin miners, stating that cryptocurrency mining at a discount without any sort of “added value” for the local economy was unfavorable.

 

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With New Distributed Energy Rebate, Illinois Could Challenge New York in Utility Innovation

Illinois NextGrid redefines utility, customer, and provider roles with grid modernization, DER valuation, upfront rebates, net metering reform, and non-wires alternatives, leveraging rooftop solar, batteries, and performance signals to enhance reliability and efficiency.

 

Key Points

Illinois NextGrid is an ICC roadmap to value DER and modernize the grid with rebates and non-wires solutions.

✅ Upfront Value-of-DER rebates reward location, time, and performance.

✅ Locational DER reduce peak demand and defer wires and substations.

✅ Encourages non-wires alternatives and data-driven utility planning.

 

How does the electric utility fit in to a rapidly-evolving energy system? That’s what the Illinois Commerce Commission is trying to determine with its new effort, "NextGrid". Together, we’re rethinking the roles of the utility, the customer, and energy solution providers in a 21st-century digital grid landscape.

In some ways, NextGrid will follow in the footsteps of New York’s innovative Reforming the Energy Vision process, a multi-year effort to re-examine how electric utilities and customers interact. A new approach is essential to accelerating the adoption of clean energy technologies and building a smarter electricity infrastructure in the state.

Like REV, NextGrid is gaining national attention for stakeholder-driven processes to reveal new ways to value distributed energy resources (DER), like rooftop solar and batteries. New York and Illinois’ efforts also seek alternatives, such as virtual power plants, to simply building more and more wires, poles, and power plants to meet the energy needs of tomorrow.

Yet, Illinois is may go a few steps beyond New York, creating a comprehensive framework for utilities to measure how DER are making the grid smarter and more efficient. Here is what we know will happen so far.

On Wednesday, April 5, at the second annual Grid Modernization Forum in Chicago, I’ll be discussing why these provisions could change the future of our energy system, including insights on grid modernization affordability for stakeholders.

 

Value of distributed energy

The Illinois Commerce Commission’s NextGrid plans grew out of the recently-passed future energy jobs act, a landmark piece of climate and energy policy that was widely heralded as a bipartisan oddity in the age of Trump. The Future Energy Jobs Act will provide significant new investments in renewables and energy efficiency over the next 13 years, redefine the role and value of rooftop solar and batteries on the grid, and lead to significant greenhouse gas emission reductions.

NextGrid will likely start laying the groundwork for valuing distributed energy resources (DER) as envisioned by the Future Energy Jobs Act, which introduces the concept of a new rebate. Illinois currently has a net metering policy, which lets people with solar panels sell their unused solar energy back to the grid to offset their electric bill. Yet the net metering policy had an arbitrary “cap,” or a certain level after which homes and businesses adding solar panels would no longer be able to benefit from net metering.

Although Illinois is still a few years away from meeting that previous “cap,” when it does hit that level, the new policy will ensure additional DER will still be rewarded. Under the new plan, the Value-of-DER rebate will replace net metering on the distribution portion of a customer’s bill (the charge for delivering electricity from the local substation to your house) with an upfront payment, which credits the customer for the value their solar provides to the local grid over the system’s life. Net metering for the energy supply portion of the bill would remain – i.e. homes and businesses would still be able to offset a significant portion of their electric bills by selling excess energy.

What is unique about Illinois’ approach is that the rebate is an upfront payment, rather than on ongoing tariff or reduced net metering compensation, for example. By allowing customers to get paid for the value solar provides to the system at the time it is installed, in the same way new wires, poles, and transformers would, this upfront payment positions DER investments as equally or more beneficial to customers and the electric grid. This is a huge step not only for regulators, but for utilities as well, as they begin to see distributed energy as an asset to the system.

This is a huge step for utilities, as they begin to see distributed energy as an asset to the system.

The rebate would also factor-in the variables of location, time, and performance of DER in the rebate formula, allowing for a more precise calculation of the value to the grid. Peak electricity demand can stress the local grid, causing wear and tear and failure of the equipment that serve our homes and businesses. Power from DER during peak times and in certain areas can alleviate those stresses, therefore providing a greater value than during times of average demand.

In addition, factoring-in the value of performance will take into account the other functions of distributed energy that help keep the lights on. For example, batteries and advanced inverters can provide support for helping avoid voltage fluctuations that can cause outages and other costs to customers.

 

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