Renewables rise as coal, natural gas generation declines

By SNL Securities


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The latest statistics from the U.S. Energy Information Administration show that despite a decline in U.S. net generation last year, renewable energy resources saw significant increases.

Given the economic downturn, it is not surprising to see that U.S. net generation dropped by 0.9% from December 2007 to December 2008, the fifth-consecutive month that net generation was down compared to the same calendar month in 2007. Year-to-date, net generation was down 1%, according to the March 2009 Electric Power Monthly report.

What is startling to see is the decline in coal-fired and natural gas generation and the dramatic increase in renewable generation. EIA's March Electric Power Monthly report shows coal-fired generation fell 3% from December 2007 to December 2008 and year-to-date declined 1.1%. Natural gas dropped by 4.4% from December 2007 to December 2008 and year-to-date declined 2.2%.

Nuclear generation was essentially flat, growing 0.3% year-to-date. Renewables, however, saw significant increases, particularly in hydroelectric and wind resources.

Generation from conventional hydroelectric plants grew 12.1% from December 2007 to December 2008 and 0.9% year-to-date, thanks in part to higher precipitation in December across much of the continental United States, according to NOAA. Net generation from wind sources increased 67.2% from December 2007 to December 2008 and a jump in wind generation in December helped drive the year-to-date generation total up 51%.

According to EIA data on renewables, last year wind generated 52,017,000 MWh, solar thermal and photovoltaic power systems generated 833,000 MWh, wood and wood-derived fuels produced 38,789,000 MWh, geothermal produced 15,002,000 MWh and other biomass generated 17,086,000 MWh.

Year-to-date, coal-fired plants contributed 48.5% to electric power, nuclear plants contributed 19.7%, while 21.3% was generated at natural gas-fired plants. Conventional hydroelectric power provided 6.1% of the total electric power, while other renewables and other miscellaneous energy sources generated 3.3% and petroleum-fired plants generated 1.1%.

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Consumers Coalition wants Manitoba Hydro?s proposed rate increase rejected

Manitoba Hydro Interim Rate Increase faces PUB scrutiny as consumers coalition challenges a 5% electricity rate hike, citing drought planning, retained earnings, affordability, transparency, and impacts on fixed incomes and northern communities.

 

Key Points

A proposed 5% electricity rate hike under PUB review, opposed by consumers citing drought planning and affordability.

✅ Coalition backs 2% hike; 5% seen as undue burden

✅ PUB review sought; interim process lacks transparency

✅ Retained earnings, efficiencies cited to offset drought

 

The Consumers Coalition is urging the Public Utilities Board (PUB) to reject Manitoba Hydro’s current interim rate increase application, amid ongoing debates about Hydro governance and policy.

Hydro is requesting a five per cent jump in electricity rates starting on January 1, claiming drought conditions warrant the increase but the coalition disagrees, saying a two per cent increase would be sufficient.

The coalition, which includes Harvest Manitoba, the Consumers’ Association of Canada-Manitoba, and the Aboriginal Council of Winnipeg, said a 5 per cent rate increase would put an unnecessary strain on consumer budgets, especially for those on fixed incomes or living up north.

"We feel that, in many ways, Manitobans have already paid for this drought," said Gloria Desorcy, executive director of the Consumers’ Association of Canada - Manitoba.

The coalition argues that hydroelectric companies already plan for droughts and that hydro should be using past earnings to mitigate any losses.

The group claims drought conditions would have added about 0.8 per cent to Hydro’s bottom line. They said remaining revenues from a two per cent increase could then be used to offset the increased costs of major projects like the Keeyask generating station and service its growing debt obligations.

The group also said Hydro is financially secure and is projecting a positive net income of $112 million next year without rate increases, even as utility profits can swing with market conditions, assuming the drought doesn’t continue.

They argue Hydro can use retained earnings as a tool to mitigate losses, rather than relying on deferral accounting that shifts costs, and find further efficiencies within the corporation.

"So we said two per cent, which is much more palatable for consumers especially at the time when so many consumers are struggling with so many higher bills,” said Desorcy.

According to the coalition’s calculations, that works out to a $2-4 increase per month, and debates such as ending off-peak pricing in Ontario show how design affects bills, depending on whether electricity is used for heating, but it could be higher.

The coalition said their proposed two per cent rate increase should be applied to all Manitoba Hydro customers and have a set expiration date of January 1, 2023.

Another issue, according to the coalition, is the process of an interim rate application does not provide any meaningful transparency and accountability, whereas recent OEB decisions in Ontario have outlined more robust public processes.

Desorcy said the next step is up to the PUB, though board upheaval at Hydro One in Ontario shows how governance shifts can influence outcomes.

The board is expected to decide on the proposed increase in the next couple of weeks.

 

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Duke Energy installing high-tech meters for customers

Duke Energy Smart Meters enable remote meter reading, daily energy usage data, and two-way outage detection via AMI, with encrypted data, faster restoration, and remote connect/disconnect for Indiana customers in Howard County.

 

Key Points

Advanced meters that support remote readings, daily usage insights, two-way outage detection, and secure, encrypted data.

✅ Daily energy usage available online the next day

✅ Two-way communications speed outage detection and restoration

✅ Remote connect/disconnect; manual reads optional with opt-out fee

 

Say goodbye to your neighborhood meter reader. Say hello to your new smart meter.

Over the next three months, Duke Energy will install nearly 43,000 new high-tech electric meters for Howard County customers that will allow the utility company to remotely access meters via the digital grid instead of sending out employees to a homeowner's property for walk-by readings.

That means there's no need to estimate bills when meters can't be easily accessed, such as during severe weather or winter storms.

Other counties serviced by Duke Energy slated to receive the meters include Miami, Tipton, Cass and Carroll counties.

Angeline Protogere, Duke Energy's lead communication consultant, said besides saving the company money and manpower, the new smart meters come with a host of benefits for customers enabled by smart grid solutions today.

The meters are capable of capturing daily energy usage data, which is available online the next day. Having this information available on a daily basis can help customers make smarter energy decisions and support customer analytics that avoid billing surprises at the end of the month, she said.

"The real advantage is for the consumer, because they can track their energy usage and adjust their usage before the bills come," Protogere said.

When it comes to power outages, the meters are capable of two-way communications. That allows the company to know more about an outage through synchrophasor monitoring, which can help speed up restoration. However, customers will still need to notify Duke Energy if their power goes out.

If a customer is moving, they don't have to wait for a Duke Energy representative to come to the premises to connect or disconnect the energy service because requests can be performed remotely.

Protogere said when it comes to installing the meters, the changeover takes less than 5 minutes to complete. Customers should receive advance notices from the company, but the technician also will knock on the door to let the customer know they are there.

If no one is available and the meter is safely accessible, the technician will go ahead and change out the meter, Protogere said. There will be a momentary outage between the time the old meter is removed and the new meter is installed.

Kokomo and the surrounding areas are one of the last parts of the state to receive Duke Energy's new, high-tech meters, which are commonly used by other utility companies and in smart city initiatives across the U.S.

Protogere said statewide, the company started installing smart meters in August 2016 as utilities deploy digital transformer stations to modernize the grid. To date, they have installed 694,000 of the 854,000 they have planned for the state.

The company says the information stored and transmitted on the smart meters is safe, protected and confidential. Duke Energy said on its website that it does not share data with anyone without customers' authorization. The information coming from the meters is encrypted and protected from the moment it is collected until the moment it is purged, the company said.

Digital smart meter technology uses radio frequency bands that have been used for many years in devices such as baby monitors and medical monitors. The radio signals are far below the levels emitted by common household appliances and electronics, including cellphones and microwave ovens.

According to the World Health Organization, FCC, U.S. Food and Drug Administration and Electric Power Research Institute, no adverse health effects have been shown to occur from the radio frequency signals produced by smart meters or other such wireless networks.

However, customers can still opt-out of getting a smart meter and continue to have their meter manually read.

Those who choose not to get a smart meter must pay a $75 initial opt-out fee and an additional $17.50 monthly meter reading charge per account.

If smart meters have not yet been installed, Duke Energy will waive the $75 initial opt-out fee if customers notify the company they want to opt out within 21 days of receiving the installation postcard notice.

 

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Manitoba Hydro's burgeoning debt surpasses $19 billion

Manitoba Hydro Debt Load surges past $19.2B as the Crown corporation faces shrinking net income, restructuring costs, and PUB rate decisions, driven by Bipole III, Keeyask construction, aging infrastructure, and rising interest rate risks.

 

Key Points

Manitoba Hydro Debt Load refers to the utility's escalating borrowings exceeding $19B, pressuring rates and finances.

✅ Debt rose to $19.2B; projected near $25B within five years.

✅ Major drivers: Bipole III, Keeyask, aging assets, restructuring.

✅ Rate hikes sought; PUB approved 3.6% vs 7.9% request.

 

Manitoba Hydro's debt load now exceeds $19 billion as the provincial Crown corporation grapples with a shrinking net income amid ongoing efforts to slay costs.

The utility's annual report, to be released publicly on Tuesday, also shows its total consolidated net income slumped from $71 million in 2016-2017 to $37 million in the last fiscal year, mirroring a Hydro One profit drop as electricity revenue fell.

It said efforts to restructure the utility and reduce costs are partly to blame for the $34 million drop in year-over-year income.

These earnings come nowhere close, however, to alleviating Hydro's long-term debt problem, a dynamic also seen in a BC Hydro deferred costs report about customer exposure. The figure is pegged at $19.2 billion this fiscal year, up from $16.1 billion the previous year and $14.2 billion in 2016.

The utility projects its debt will grow to about $25 billion in the next five years. Its largest expenses include finishing the Bipole III line, working on the Keeyask Generating System that is halfway done and rebuilding aging wood poles and substations, the report said.

"This level of debt increases the potential financial exposure from risks facing the corporation and is a concern for both

the corporation and our customers who may be exposed to higher rate increases in the event of rising interest rates, a prolonged drought or a major system failure," outgoing president and CEO Kelvin Shepherd wrote.

The income drop is primarily a result of the $50 million spent in the form of restructuring charges associated with the utility's efforts to streamline the organization and drive down costs, amid NDP criticism of Hydro changes related to government policy.

Those efforts included the implementation of buyouts for employees through what the utility dubbed its "voluntary departure program."

Among the changes, Manitoba Hydro reduced its workforce by 800 employees, which is expected to save the utility over $90 million per year. It also reduced its management positions by 26 per cent, a Monday news release said, while Hydro One leadership upheaval in Ontario drove its shares down during comparable governance turmoil.

To improve its financial situation, Hydro has applied for rate increases, even as the Consumers Coalition pushes to have the proposal rejected. The Public Utilities Board offered a 3.6 per cent average rate hike, instead of the 7.9 per cent jump the utility asked for.

In May, when the PUB rendered its decision, it made several recommendations as an alternative to raising rates, including receiving a share of carbon tax revenue and asking the government to help pay for Bipole III.

Hydro is projecting a net income of $70 million for 2018-2019, which includes the impact of the recent rate increase. That total reflects an approximately 20 per cent reduction in net income from 2017-18 after restructuring costs are calculated.

 

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Bruce nuclear reactor taken offline as $2.1B project 'officially' begins

Bruce Power Unit 6 refurbishment replaces major reactor components, shifting supply to hydroelectric and natural gas, sustaining Ontario jobs, extending plant life to 2064, and managing radioactive waste along Lake Huron, on-time and on-budget.

 

Key Points

A 4-year, $2.1B reactor overhaul within a 13-year, $13B program to extend plant life to 2064 and support Ontario jobs.

✅ Unit 6 offline 4 years; capacity shift to hydro and gas

✅ Part of 13-year, $13B program; extends life to 2064

✅ Creates jobs; manages radioactive waste at Lake Huron

 

The world’s largest nuclear fleet, became a little smaller Monday morning. Bruce Power has began the process to take Unit 6 offline to begin a $2.1 billion project, supported by manufacturing contracts with key suppliers, to replace all the major components of the reactor.

The reactor, which produces enough electricity to power 750,000 homes and reflects higher output after upgrades across the site, will be out of service for the next four years.

In its place, hydroelectric power and natural gas will be utilized more.

Taking Unit 6 offline is just the “official” beginning of a 13-year, $13-billion project to refurbish six of Bruce Power’s eight nuclear reactors, as Ontario advances the Pickering B refurbishment as well on its grid.

Work to extend the life of the nuclear plant started in 2016, and the company recently marked an operating record while supporting pandemic response, but the longest and hardest part of the project - the major component replacement - begins now.

“The Unit 6 project marks the next big step in a long campaign to revitalize this site,” says Mike Rencheck, Bruce Power’s president and CEO.

The overall project is expected to last until 2033, and mirrors life extensions at Pickering supporting Ontario’s zero-carbon goals, but will extend the life of the nuclear plant until 2064.

Extending the life of the Bruce Power nuclear plant will sustain 22,000 jobs in Ontario and add $4 billion a year in economic activity to the province, say Bruce Power officials.

About 2,000 skilled tradespeople will be required for each of the six reactor refurbishments - 4,200 people already work at the sprawling nuclear plant near Kincardine.

It will also mean tons of radioactive nuclear waste will be created that is currently stored in buildings on the Bruce Power site, along the shores of Lake Huron.

Bruce Power restarted two reactors back in 2012, and in later years doubled a PPE donation to support regional health partners. That project was $2-billion over-budget, and three years behind schedule.

Bruce Power officials say this refurbishment project is currently on-time and on-budget.

 

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Electricity use actually increased during 2018 Earth Hour, BC Hydro

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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Berlin Electric Utility Wins National Safety Award

Berlin Electric Utility APPA Safety Award recognizes Gold Designation performance in public power, highlighting OSHA-aligned incident rates, robust safety culture, worker safety training, and operational reliability that keeps the community's electric service resilient.

 

Key Points

A national honor for Berlin's Gold Designation recognizing safety performance, worker protection, and reliable service.

✅ Gold Designation in 15,000-29,999 worker hours APPA category

✅ OSHA-based incident rate and robust safety culture

✅ Training, PPE, and reliability focus in public power operations

 

The Town of Berlin Electric Utility Department has been recognized for its outstanding safety practices with the prestigious Safety Award of Excellence from the American Public Power Association (APPA), a distinction also reflected in Medicine Hat Electric Utility for health and safety excellence, highlighting industry-wide commitment to worker protection.

Recognition for Excellence

In an era when workplace safety is a critical concern, with organizations highlighting leadership in worker safety across the sector, the Town of Berlin Electric Utility Department’s achievement stands out. The department earned the Gold Designation award in the category for utilities with 15,000 to 29,999 worker hours of annual worker exposure. This category is part of the APPA’s annual Safety Awards, which are designed to recognize the safety performance of public power utilities across the United States.

Out of more than 200 utilities that participated in the 2024 Safety Awards, Berlin's Electric Utility Department distinguished itself with an exemplary safety record. The utility’s ranking was based on its low incidence of work-related injuries and illnesses, alongside its robust safety programs and strong safety culture.

What the Award Represents

The Safety Award of Excellence is given to utilities that demonstrate effective safety protocols and practices over the course of the year. The APPA evaluates utilities based on their incident rate, which is calculated using the number of work-related reportable injuries or illnesses relative to worker hours. This measurement adheres to guidelines established by the Occupational Safety and Health Administration (OSHA), ensuring a standardized approach to assessing safety.

For the Town of Berlin Electric Utility Department, achieving the Gold Designation award signifies a year of outstanding safety performance. The award reflects the department’s dedication to preventing accidents and creating a work environment where safety is prioritized at every level.

Why Safety Matters

For utilities like the one in Berlin, safety is not just about preventing injuries—it's about fostering a culture of care and responsibility. Electric utility workers face unique and significant risks, ranging from the dangers of working with high-voltage systems, including hazards near downed power lines that require extreme caution, to the physical demands of the job. A utility’s ability to minimize these risks and keep its workforce safe is a direct reflection of its safety practices, training, and overall management.

The commitment to safety extends beyond just the immediate work environment. Utilities that place a high value on safety typically invest in ongoing training, safety gear, and processes, and even contingency measures like staff living on site during outbreaks, that ensure all employees are well-prepared to handle the challenges of their roles. The Town of Berlin Electric Utility Department has taken these steps seriously, providing its workers with the resources they need to stay safe while maintaining the power supply for the local community.

The Importance of Worker Safety in Public Power

The American Public Power Association’s Safety Award program highlights the best practices in public utilities, which, as the U.S. grid overseer's pandemic warning reminded the sector, play a crucial role in providing essential services to communities across the country. Public power utilities, like Berlin’s, are governed by local or municipal entities rather than for-profit corporations, which often allows them to have a closer relationship with their communities. As a result, these utilities often go above and beyond when it comes to worker safety, understanding that the well-being of employees directly impacts the quality of service provided to residents.

For the Town of Berlin, this award not only highlights the utility's commitment to its employees but also reinforces the importance of the work that public utilities do in keeping communities safe and powered. Berlin's recognition underscores the significance of maintaining a safe work environment, especially when the safety of first responders and utility workers, as seen when nuclear plant workers raised concerns over virus precautions, directly impacts the public’s access to reliable services.

What’s Next for Berlin’s Electric Utility Department

Receiving the Safety Award of Excellence is a remarkable achievement, but for the Town of Berlin Electric Utility Department, it’s not the end of their safety journey—it’s just one more step in their ongoing commitment to improvement. The department’s leadership, including the safety team, has emphasized the importance of continually evaluating and enhancing safety protocols to stay ahead of potential risks. This includes adopting new safety technologies, refining training programs, and ensuring that all employees are involved in the process of safety.

As the Town of Berlin looks forward to the future, its focus on worker safety will remain a top priority. Maintaining this level of safety is not only crucial for the health and well-being of employees but also for ensuring the continued success of the community’s utility services.

Community Impact

This recognition also serves as an example for other utilities in the region and across the country. By prioritizing safety, the Town of Berlin Electric Utility Department sets a standard that other utilities can aspire to. In a time when worker safety is more important than ever, Berlin’s commitment to best practices provides a model for others to follow.

Ultimately, the safety of utility workers is a reflection of a community’s dedication to its workforce and its commitment to providing reliable, uninterrupted services. For the residents of Berlin, the recognition of their local electric utility department’s safety practices means that they can continue to rely on a safe, secure, and resilient power infrastructure, while staying mindful of home risks such as overheated power strips that can spark fires.

 

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