NIPSCO open to changing rate hike plan for farmers

By Associated Press


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Northern Indiana Public Service Co. is considering adjusting its proposed 15.6 percent electric rate increase to make it less costly for farmers who face possible price hikes many times that level.

A demand charge that NIPSCO has proposed to encourage customers to spread their energy use to offpeak hours would deliver price spikes to farmers and grain elevators because they use lots of power drying crops during harvest.

Darrell Fredrickson of Kentland said he was shocked when he saw NIPSCO's estimated he would pay 237 percent more to run his grain elevator if the rate hike goes through as proposed.

"In 2007, our power bill was $60,000. That same usage on their new rate would be $202,306," Fredrickson said. "This would have the potential to put us out of business. There's lots of years we don't make that money on everything. It would take away all our profits."

NIPSCO spokesman Nick Meyer said the utility designed the demand charges to encourage customers to use more energy during off-peak hours. He said farmers already do that because they use energy during when others don't.

"They raise a good point, and this group of customers is a group we're looking at. We're looking at that internally to get them onto a more appropriate rate," Meyer said.

Henry Coussens Jr. runs a family corn and soybean farm in Kentland. He said about 98 percent of the farm's electricity is used in September through December to dry corn. In 2007, the farm's electricity bill was $11,100. NIPSCO has projected their bill will go up 62 percent to $18,714.

"We were very shocked. Holy cow! This can't be happening," Coussens Jr. recalls thinking when he saw NIPSCO's projection. "We use the majority of our electricity in the fall. It's almost like a penalty associated with not having constant demand throughout the year."

Coussens said unlike other businesses, farmers can't pass on their costs by raising corn prices.

"Our prices are determined on the Board of Trade. I can't say I need two more cents a bushel demand for air conditioning is off... and the heating hasn't started," he said.

Rate cases can last 12 to 18 months. NIPSCO submitted its proposal to the Indiana Utility regulatory Commission in 2008, and it expects its new rates will go into effect late this year or early in 2010.

The Indiana Office of the Utility Consumer Counselor, which functions as the official state advocate for consumers, has until April 17 to review NIPSCO's request and take a position.

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Nearly $1 Trillion in Investments Estimated by 2030 as Power Sector Transitions to a More Decarbonized and Flexible System

Distributed Energy Resources (DER) are surging as solar PV, battery storage, and demand response decarbonize power, cut costs, and boost grid resilience for utilities, ESCOs, and C&I customers through 2030.

 

Key Points

DER are small-scale, grid-connected assets like solar PV, storage, and demand response that deliver flexible power.

✅ Investments in DER to rise 75% by 2030; $846B in assets, $285B in storage.

✅ Residential solar PV: 49.3% of spend; C&I solar PV: 38.9% by 2030.

✅ Drivers: favorable policy, falling costs, high demand charges, decarbonization.

 

Frost & Sullivan's recent analysis, Growth Opportunities in Distributed Energy, Forecast to 2030, finds that the rate of annual investment in distributed energy resources (DER) will increase by 75% by 2030, with the market set for a decade of high growth. Favorable regulations, declining project and technology costs, and high electricity and demand charges are key factors driving investments in DER across the globe, with rising European demand boosting US solar equipment makers prospects in export markets. The COVID-19 pandemic will reduce investment levels in the short term, but the market will recover. Throughout the decade, $846 billion will be invested in DER, supported by a further $285 billion that will be invested in battery storage, with record solar and storage growth anticipated as installations and investments accelerate.

"The DER business model will play an increasingly pivotal role in the global power mix, as highlighted by BNEF's 2050 outlook and as part of a wider effort to decarbonize the sector," said Maria Benintende, Senior Energy Analyst at Frost & Sullivan. "Additionally, solar photovoltaic (PV) will dominate throughout the decade. Residential solar PV will account for 49.3% of total investment ($419 billion), though policy moves like a potential Solar ITC extension could pressure the US wind market, with commercial and industrial solar PV accounting for a further 38.9% ($330 billion)."

Benintende added: "In developing economies, DER offers a chance to bridge the electricity supply gap that still exists in a number of country markets. Further, in developed markets, DER is a key part of the transition to a cleaner and more resilient energy system, consistent with IRENA's renewables decarbonization findings across the energy sector."

DER offers significant revenue growth prospects for all key market participants, including:

  • Technology original equipment manufacturers (OEMs): Offer flexible after-sales support, including digital solutions such as asset integrity and optimization services for their installed base.
  • System integrators and installers: Target household customers and provide efficient and trustworthy solutions with flexible financial models.
  • Energy service companies (ESCOs): ESCOs should focus on adding DER deployments, in line with US decarbonization pathways and policy goals, to expand and enhance their traditional role of providing energy savings and demand-side management services to customers.

Utility companies: Deployment of DER can create new revenue streams for utility companies, from real-time and flexibility markets, and rapid solar PV growth in China illustrates how momentum in renewables can shape utility strategies.
Growth Opportunities in Distributed Energy, Forecast to 2030 is the latest addition to Frost & Sullivan's Energy and Environment research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.

 

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Nuclear helps Belgium increase electricity exports in 2019

Belgium Energy Mix 2019 shows strong nuclear output, rising offshore wind, net electricity exports, and robust interconnections, per Elia, as the nuclear phaseout drives 3.9GW new capacity needs after improved reactor availability.

 

Key Points

High nuclear share, offshore wind, net exports, interconnections; 3.9GW capacity needed amid nuclear phaseout.

✅ Nuclear supplied 48.8% of generation in 2019.

✅ Net exporter: 1.8 TWh, aided by interconnections.

✅ Elia projects 3.9GW new capacity for phaseout.

 

Belgium's electricity transmission system operator, Elia, said that the major trends in 2019 were a steady increase in (mainly offshore) renewable power generation, illustrated by EU wind and solar records across the bloc, better availability of nuclear-generating facilities and an increase in electricity exports.

In 2019, 48.8% of the power generated in Belgium came from nuclear plants. This was in line with the total for 2017 (50%) and significantly more than in 2018 (31.2%) when several reactors were unavailable amid stunted hydro and nuclear output in Europe as well.

Belgium exported more electricity in 2019, as neighbors like Germany saw renewables overtake coal and nuclear generation, with net exports of 1.8TWh (2.1% of the energy mix), in contrast to 2018 when Belgium imported 17.5TWh (20%).

Elia said this “should be viewed in its wider context, of declining nuclear capacity in Europe and regional market shifts, against the backdrop of an increasingly Europeanised market, and can be explained primarily by the good availability of Belgium's generating facilities (especially its nuclear power stations).”

The development of interconnections was also a key factor in the circulation of these electricity flows, as seen with Irish grid price spikes highlighting regional stress, Elia noted.

“Belgium had not been a net exporter of electricity for almost 10 years, the last time being in 2009 and 2010, when total net exports represented 2.8% and 0.2% respectively of Belgium’s energy mix,” it said.

Belgian has seven nuclear reactors – three at Tihange near Liege and four at Doel near Antwerp – and, regionally, nuclear-powered France faces outage risks that influence cross-border reliability.

In 2003, Belgium decided to phase out nuclear power and passed a law to that effect, with neighbors like Germany navigating a balancing act during their energy transition, which was reaffirmed in 2015 and 2018.

A commission appointed to assess the impact of the nuclear phaseout is scheduled to be completed in 2025 but has yet to report any findings.

Elia estimates that some 3.9GW of new power generating capacity will be needed to compensate for Belgium's nuclear phaseout.

 

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PG&E keeps nearly 60,000 Northern California customers in the dark to reduce wildfire risk

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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European gas prices fall to pre-Ukraine war level

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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Frustration Mounts as Houston's Power Outage Extends

Houston Power Outage Heatwave intensifies a prolonged blackout, straining the grid and infrastructure resilience; emergency response, cooling centers, and power restoration efforts race to protect vulnerable residents amid extreme temperatures and climate risks.

 

Key Points

A multi-day blackout and heatwave straining Houston's grid, limiting cooling, and prompting emergency response.

✅ Fourth day without power amid dangerous heat

✅ Grid failures expose infrastructure vulnerabilities

✅ Cooling centers, aid groups support vulnerable residents

 

Houston is enduring significant frustration and hardship as a power outage stretches into its fourth day amid a sweltering heatwave. The extended blackout has exacerbated the challenges faced by residents in one of the nation’s largest and most dynamic cities, underscoring the critical need for reliable infrastructure and effective emergency response systems.

The power outage began early in the week, coinciding with a severe heatwave that has driven temperatures to dangerous levels. With the city experiencing some of the highest temperatures of the year, the lack of electricity has left residents without essential cooling, contributing to widespread discomfort and health risks. The heatwave has placed an added strain on Houston's already overburdened power grid, which has struggled to cope with the soaring demand for air conditioning and cooling.

The prolonged outage has led to escalating frustration among residents. Many households are grappling with sweltering indoor temperatures, leading to uncomfortable living conditions and concerns about the impact on vulnerable populations, including the elderly, young children, and individuals with pre-existing health conditions. The lack of power has also disrupted daily routines, as morning routine disruptions in London demonstrate, including access to refrigeration for food, which has led to spoilage and further complications.

Emergency services and utility companies have been working around the clock to restore power, but progress has been slow, echoing how Texas utilities struggled to restore power during Hurricane Harvey, as crews contended with access constraints. The complexity of the situation, combined with the high demand for repairs and the challenging weather conditions, has made it difficult to address the widespread outages efficiently. As the days pass, the situation has become increasingly dire, with residents growing more impatient and anxious about when they might see a resolution.

Local officials and utility providers have been actively communicating with the public, providing updates on the status of repairs and efforts to restore power. However, the communication has not always been timely or clear, leading to further frustration among those affected. The sense of uncertainty and lack of reliable information has compounded the difficulties faced by residents, who are left to manage the impacts of the outage with limited guidance.

The situation has also raised questions about the resilience of Houston’s power infrastructure. The outage has highlighted vulnerabilities in the city's energy grid, similar to how a recent windstorm caused significant outages elsewhere, which has faced previous challenges but has not experienced an extended failure of this magnitude in recent years. The inability of the grid to withstand the extreme heat and maintain service during a critical time underscores the need for infrastructure improvements and upgrades to better handle similar situations in the future.

In response to the crisis, community organizations and local businesses have stepped up to provide support to those in need, much like Toronto's cleanup after severe flooding mobilized volunteers and services, in order to aid affected residents. Cooling centers have been established to offer relief from the heat, providing a respite for individuals who are struggling to stay cool at home. Additionally, local food banks and charitable organizations are distributing essential supplies to those affected by food spoilage and other challenges caused by the power outage.

The power outage and heatwave have also sparked broader discussions about climate resilience and preparedness. Extreme weather events and prolonged heatwaves are becoming increasingly common due to climate change, as strong winds knocked out power across the Miami Valley recently, raising concerns about how cities and infrastructure systems can adapt to these new realities. The current situation in Houston serves as a stark reminder of the importance of investing in resilient infrastructure and developing comprehensive emergency response plans to mitigate the impacts of such events.

As the outage continues, there is a growing call for improved strategies to manage power grid failures, with examples like the North Seattle outage affecting 13,000 underscoring the need, and better support for residents during crises. Advocates are urging for a reevaluation of emergency response protocols, increased investment in infrastructure upgrades, and enhanced communication systems to ensure that the public receives timely and accurate information during emergencies.

In summary, Houston's power outage, now extending into its fourth day amid extreme heat, has caused significant frustration and hardship for residents. The prolonged disruption has underscored the need for more resilient energy infrastructure, as seen when power outages persisted for hundreds in Toronto, and effective emergency response measures. With temperatures soaring and the situation continuing to unfold, the city faces a critical challenge in restoring power, managing the impacts on its residents, and preparing for future emergencies. The crisis highlights broader issues related to infrastructure resilience and climate adaptation, emphasizing the need for comprehensive strategies to address and mitigate the effects of extreme weather events.

 

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Solar Plus Battery Storage Cheaper Than Conventional Power in Germany

Germany Solar-Plus-Storage Cost Parity signals grid parity as solar power with battery storage undercuts conventional electricity. Falling LCOE, policy incentives, and economies of scale accelerate the energy transition and decarbonization across Germany's power market.

 

Key Points

The point at which solar power with battery storage is cheaper than conventional grid electricity across Germany.

✅ Lower LCOE from tech advances and economies of scale

✅ EEG incentives and streamlined installs cut total costs

✅ Enhances energy security, reduces fossil fuel dependence

 

Germany, a global leader in renewable energy adoption, with clean energy supplying about half of its electricity in recent years, has reached a significant milestone: the cost of solar power combined with battery storage has now fallen below that of conventional electricity sources. This development marks a transformative shift in the energy landscape, showcasing the increasing affordability and competitiveness of renewable energy technologies and reinforcing Germany’s position as a pioneer in the transition to sustainable energy.

The decline in costs for solar power paired with battery storage represents a breakthrough in Germany’s energy sector, especially amid the recent solar power boost during the energy crisis, where the transition from traditional fossil fuels to cleaner alternatives has been a central focus. Historically, conventional power sources such as coal, natural gas, and nuclear energy have dominated electricity markets due to their established infrastructure and relatively stable pricing. However, the rapid advancements in solar technology and energy storage solutions are altering this dynamic, making renewable energy not only environmentally preferable but also economically advantageous.

Several factors contribute to the cost reduction of solar power with battery storage:

  1. Technological Advancements: The technology behind solar panels and battery storage systems has evolved significantly over recent years. Solar panel efficiency has improved, allowing for greater energy generation from smaller installations. Similarly, cheaper batteries have advanced, with reductions in cost and increases in energy density and lifespan. These improvements mean that solar installations can produce more electricity and store it more effectively, enhancing their economic viability.

  2. Economies of Scale: As demand for solar and battery storage systems has grown, manufacturers have scaled up production, leading to economies of scale. This scaling has driven down the cost of both solar panels and batteries, making them more affordable for consumers. As the market for these technologies expands, prices are expected to continue decreasing, further enhancing their competitiveness.

  3. Government Incentives and Policies: Germany’s commitment to renewable energy has been supported by robust government policies and incentives. The country’s Renewable Energy Sources Act (EEG) and other supportive measures, alongside efforts to remove barriers to PV in Berlin that could accelerate adoption, have provided financial incentives for the adoption of solar power and battery storage. These policies have encouraged investment in renewable technologies and facilitated their integration into the energy market, contributing to the overall reduction in costs.

  4. Falling Installation Costs: The cost of installing solar power systems and battery storage has decreased as the industry has matured. Advances in installation techniques, increased competition among service providers, and streamlined permitting processes have all contributed to lower installation costs. This reduction in upfront expenses has made solar with battery storage more accessible and financially attractive to both residential and commercial consumers.

The economic benefits of solar power with battery storage becoming cheaper than conventional power are substantial. For consumers, this shift translates into lower electricity bills and reduced reliance on fossil fuels. Solar installations with battery storage allow households and businesses to generate their own electricity, store it for use during times of low sunlight, and even sell excess power back to the grid, reflecting how solar is reshaping electricity prices in Northern Europe as markets adapt. This self-sufficiency reduces exposure to fluctuating energy prices and enhances energy security.

For the broader energy market, the decreasing cost of solar power with battery storage challenges the dominance of conventional power sources. As renewable energy becomes more cost-effective, it creates pressure on traditional energy providers to adapt and invest in cleaner technologies, including responses to instances of negative electricity prices during renewable surpluses. This shift can accelerate the transition to a low-carbon energy system and contribute to the reduction of greenhouse gas emissions.

Germany’s achievement also has implications for global energy markets. The country’s success in making solar with battery storage cheaper than conventional power serves as a model for other nations pursuing similar energy transitions. As the cost of renewable technologies continues to decline, other countries can leverage these advancements to enhance their own energy systems, reduce carbon emissions, and achieve energy independence amid over 30% of global electricity now from renewables trends worldwide.

The impact of this development extends beyond economics. It represents a significant step forward in addressing climate change and promoting sustainability. By reducing the cost of renewable energy technologies, Germany is accelerating the shift towards a cleaner and more resilient energy system. This progress aligns with the country’s ambitious climate goals and reinforces its role as a leader in global efforts to combat climate change.

Looking ahead, several challenges remain. The integration of renewable energy into existing energy infrastructure, grid stability, and the management of energy storage are all areas that require continued innovation and investment. However, the decreasing cost of solar power with battery storage provides a strong foundation for addressing these challenges and advancing the transition to a sustainable energy future.

In conclusion, the fact that solar power with battery storage in Germany has become cheaper than conventional power is a groundbreaking development with wide-ranging implications. It underscores the technological advancements, economic benefits, and environmental gains associated with renewable energy technologies. As Germany continues to lead the way in clean energy adoption, this achievement highlights the potential for renewable energy to drive global change and reshape the future of energy.

 

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