Court rulings delay power projects

By Globe and Mail


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Two major power projects approved by the British Columbia Utilities Commission have been delayed by rulings issued by the B.C. Court of Appeal.

In separate judgments handed down recently, the court found the B.C. Utilities Commission erred in not determining whether natives had been adequately consulted over an Electricity Purchase Agreement (EPA), involving BC Hydro and Rio Tinto Alcan Inc., and over a new power line proposed by the British Columbia Transmission Corporation, from Merritt to Coquitlam.

One case involved a decision by the commission to reject a motion by the Carrier Sekani Tribal Council concerning a 2007 BC Hydro application for an EPA. The EPA would have cleared the way for BC Hydro to purchase surplus electricity from Rio Tinto Alcan Inc.

The power is generated by the diversion of water created by the Kemano power project, which was built by Alcan in the 1950s.

The Carrier Sekani argued that accepting the EPA would be a jurisdictional error because the band wasn't consulted initially, when the power project was first built. The water diversion flooded native graveyards and caused declines in important salmon and sturgeon fisheries.

The band argued there was a "historical, continuing infringement of aboriginal title and rights."

The B.C. Utilities Commission, however, rejected the Carrier Sekani position on the grounds that there were no new physical impacts created by the EPA.

But the court disagreed with that decision, saying BC Hydro had been "taking commercial advantage of an assumed infringement on a massive scale, without consultation."

The court ruled that the B.C. Utilities Commission must reopen the application for an EPA, so that it can consider whether a duty to consult with the Carrier Sekani had ever been met.

In the second case, the Court of Appeal found that the Kwikwetlem First Nation had not been adequately consulted over a 246-kilometre power line that the B.C. Transmission Corporation proposed to build from Merritt to Coquitlam.

The line would pass through the traditional territory of several bands, but the courts found the B.C. Utilities Commission had failed to assess whether there was adequate consultation.

"Consultation requires an interactive process with efforts by both the Crown actor and the potentially affected First Nations to reconcile what may be competing interests. It is not just a process of gathering and exchanging information. It may require the Crown to make changes to its proposed action based on information obtained through consultations. It may require accommodation," the court stated.

The court ordered the utilities commission to "reconsider the scoping decision" approving the transmission line.

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Ontario will refurbish Pickering B NGS

Pickering nuclear refurbishment will modernize Ontario's Candu reactors at Pickering B, sustaining 2,000 MW of clean electricity, aiding net-zero goals, and aligning with Ontario Power Generation plans and Canadian Nuclear Safety Commission reviews.

 

Key Points

An 11-year overhaul of Pickering B Candu reactors to extend life, keep 2,000 MW online, and back Ontario net-zero grid.

✅ 11-year project; 11,000 annual jobs; $19.4B GDP impact.

✅ Refurbishes four Pickering B Candu units; maintains 2,000 MW.

✅ Requires Canadian Nuclear Safety Commission license approvals.

 

The Ontario government has announced its intention to pursue a Pickering refurbishment at the venerable nuclear power station, which has been operational for over fifty years. This move could extend the facility's life by another 30 years.

This decision is timely, as Ontario anticipates a significant surge in electricity demand and a growing electricity supply gap in the forthcoming years. Additionally, all provinces are grappling with new federal mandates for clean electricity, necessitating future power plants to achieve net-zero carbon emissions.

Todd Smith, the Energy Minister, is expected to endorse Ontario Power Generation's proposal for the plant's overhaul, as per a preliminary version of a government press release.

The renovation will focus on four Candu reactors, known collectively as Pickering B, which were originally commissioned in the early 1980s. This upgrade is projected to continue delivering 2,000 megawatts of power, equivalent to the current output of these units.

According to the press release, the project will span 11 years, create approximately 11,000 annual jobs, and contribute $19.4 billion to Ontario's GDP. However, the total budget for the project remains unspecified.

The project follows the ongoing refurbishment of four units at the nearby Darlington nuclear station, which is more than halfway completed with a budget of $12.8 billion.

The proposal awaits the Canadian Nuclear Safety Commission's approval, and officials face extension request timing considerations before key deadlines.

The Commission is also reviewing a prior request from OPG to extend the operational license of the existing Pickering B units until 2026. This extension would allow the plant to safely continue operating until the commencement of its renovation, pending approval.

 

Ontario's Ambitious Nuclear Strategy

The announcement regarding Pickering is part of Ontario's broader clean energy plan for an unprecedented expansion of nuclear power in Canada.

Last summer, the province announced its intention to nearly double the output at Bruce Power, currently the world's largest nuclear generating station.

Additionally, Ontario revealed SMR plans to construct three more alongside the existing project at Darlington. These reactors are expected to supply enough electricity to power around 1.2 million homes.

Discussions about revitalizing the Pickering facility began in 2022, after the station had been slated to close as planned amid debate, with Ontario Power Generation submitting a feasibility report to the government last summer.

The Ford government emphasized the necessity of this nuclear expansion to meet the increasing electricity demands anticipated from the auto sector's shift to electric vehicles, the steel industry's move away from coal-fired furnaces, and the growing population in Ontario.

Ontario's capability to attract major international car manufacturers like Volkswagen and Stellantis to produce electric vehicles and batteries is partly attributed to the fact that 90% of the province's electricity comes from non-fossil fuel sources.

 

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TVA faces federal scrutiny over climate goals, electricity rates

TVA Rates and Renewable Energy Scrutiny spotlights electricity rates, distributed energy resources, solar and wind deployment, natural gas plans, grid access charges, energy efficiency cuts, and House oversight of lobbying, FERC inquiries, and least-cost planning.

 

Key Points

A congressional probe into TVA pricing and practices affecting renewables, energy efficiency, and climate goals.

✅ House panel probes TVA rates, DER and solar policies.

✅ Efficiency programs cut; least-cost planning questioned.

✅ Inquiry on lobbying, hidden fees; FERC scrutiny.

 

The Tennessee Valley Authority is facing federal scrutiny about its electricity rates and climate action, amid ongoing debates over network profits in other markets.

Members of the House Committee on Energy and Commerce are “requesting information” from TVA about its ratepayer bills and “out of concern” that TVA is interfering with the deployment of renewable and distributed energy resources, even as companies such as Tesla explore electricity retail to expand customer options.

“The Committee is concerned that TVA’s business practices are inconsistent with these statutory requirements to the disadvantage of TVA’s ratepayers and the environment,” the committee said in a letter to TVA CEO Jeffrey Lyash.

The four committee members — U.S. Reps. Frank Pallone, Jr. (D-NJ), Bobby L. Rush (D-IL), Diana DeGette (D-CO), and Paul Tonko (D-NY) — suggested that Tennessee Valley residents pay too much for electricity despite TVA’s relatively low rates, even as regulators have, in other cases, scrutinized mergers like the Hydro One-Avista deal to safeguard ratepayers, underscoring similar concerns. In 2020, Tennessee residents had electric bills higher than the national average, while low-income residents in Memphis have historically faced one of the highest energy burdens in the U.S.

In 2018, TVA reduced its wholesale rate while adding a grid access charge on local power companies—and interfered with the adoption of solar energy. Internal TVA documents obtained through a Freedom of Information Act request by the Energy and Policy Institute revealed that TVA permitted local power companies to impose new fees on distributed solar generation to “lessen the potential decrease in TVA load that may occur through the adoption of [behind the meter] generation.”

Additionally, the committee said TVA is not prioritizing energy conservation and efficiency or “least-cost planning” that includes renewables, as seen in oversight such as the OEB's Hydro One rates decision emphasizing cost allocation. TVA reduced its energy efficiency programs by nearly two-thirds between 2014 and 2018 and cut its energy efficiency customer incentive programs.

At this time, TVA has not aligned its long-term planning with the Biden administration’s goal to achieve a carbon-free electricity sector by 2035. TVA’s generation mix, which is roughly 60% carbon-free, comprises 39% nuclear, 19% coal, 26% natural gas, 11% hydro, 3% wind and solar, and 1% energy efficiency programs, according to TVA.

The committee is “greatly concerned that TVA has invested comparatively little to date in deploying solar and wind energy, while at the same time considering investments in new natural gas generation.”

TVA has announced plans to shutter the Kingston and Cumberland coal plants and is evaluating whether to replace this generation with natural gas, which is a fossil fuel, while debates over grid privatization raise questions about consumer benefits. TVA’s coal and natural gas plants represent most of the largest sources of greenhouses emissions in Tennessee.

TVA responded with a statement without directly addressing the committee’s concerns. TVA said its “developing and implementing emerging technologies to drive toward net-zero emissions by 2050.”

The final question that the House committee posed is whether TVA is funding any political activity. In 2019, the committee questioned TVA about its membership to the now-disbanded Utility Air Regulatory Group, a coalition that was involved in over 200 lawsuits that primarily fought Clear Air Act regulations.

TVA revealed that it had contributed $7.3 million to the industry lobbying group since 2001. Since TVA doesn’t have shareholders, customers paid for UARG membership fees, echoing findings that deferred utility costs burden customers in other jurisdictions. An Office of the Inspector General investigation couldn’t prove whether TVA’s contributions directly funded litigation because UARG didn’t have a line-by-line accounting of what they did with TVA’s dollars.

The congressional committee questioned whether TVA is still paying for lobbying or litigation that opposes “public health and welfare regulations.”

This last question follows a recent trend of questioning utilities about “hidden fees.” In December, the Federal Energy Regulatory Commission issued a Notice of Inquiry to examine how bills from investor-owned utilities might contain fees that fund political activity, and regulators have penalized firms like NT Power over customer notice practices, highlighting consumer protection. The Center for Biological Diversity filed a petition to protect electric and gas customers of investor-owned utilities from paying these fees, which may be used for lobbying, campaign-related donations and litigation.

 

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For Hydro-Québec, selling to the United States means reinventing itself

Hydro-Quebec hydropower exports deliver low-carbon electricity to New England, sparking debate on greenhouse gas accounting, grid attributes, and REC-style certificates as Quebec modernizes monitoring to verify emissions, integrate renewables, and meet ambitious climate targets.

 

Key Points

Low-carbon electricity to New England, with improved emissions tracking and verifiable grid attributes.

✅ Deep, narrow reservoirs cut lifecycle GHGs in cold boreal waters

✅ Attribute certificates trace source, type, and carbon intensity

✅ Contracts require facility-level tagging for compliance

 

For 40 years, through the most vicious interprovincial battles, even as proposals for bridging the Alberta-B.C. gap aimed to improve grid resilience, Canadians could agree on one way Quebec is undeniably superior to the rest of the country.

It’s hydropower, and specifically the mammoth dam system in Northern Quebec that has been paying dividends since it was first built in the 70s. “Quebec continues to boast North America’s lowest electricity prices,” was last year’s business-as-usual update in one trade publication, even as Newfoundland's rate strategy seeks relief for consumers.

With climate crisis looming, that long-ago decision earns even more envy and reflects Canada's electricity progress across the grid today. Not only do they pay less, but Quebeckers also emit the least carbon per capita of any province.

It may surprise most Canadians, then, to hear how most of New England has reacted to the idea of being able to buy permanently into Quebec’s power grid.

​​​​​​Hydro-Québec’s efforts to strike major export deals have been rebuffed in the U.S., by environmentalists more than anyone. They question everything about Quebec hydropower, including asking “is it really low-carbon?”

These doubts may sound nonsensical to regular Quebeckers. But airing them has, in fact, pushed Hydro-Québec to learn more about itself and adopt new technology.

We know far more about hydropower than we knew 40 years ago, including whether it’s really zero-emission (it’s not), how to make it as close to zero-emission as possible, and how to account for it as precisely as new clean energies like solar and wind, underscoring how cleaning up Canada's electricity is vital to meeting climate pledges.

The export deals haven’t gone through yet, but they’ve already helped drag Hydro-Québec—roughly the fourth-biggest hydropower system on the planet—into the climate era.

Fighting to export
One of the first signs of trouble for Quebec hydro was in New Hampshire, almost 10 years ago. People there began pasting protest signs on their barns and buildings. One citizens’ group accused Hydro of planning a “monstrous extension cord” across the state.

Similar accusations have since come from Maine, Massachusetts and New York.

The criticism isn’t coming from state governments, which mostly want a more permanent relationship with Hydro-Québec. They already rely on Quebec power, but in a piecemeal way, topping up their own power grid when needed (with the exception of Vermont, which has a small permanent contract for Quebec hydropower).

Last year, Quebec provided about 15 percent of New England’s total power, plus another substantial amount to New York, which is officially not considered to be part of New England, and has its own energy market separate from the New England grid.

Now, northeastern states need an energy lynch pin, rather than a top-up, with existing power plants nearing the end of their lifespans. In Massachusetts, for example, one major nuclear plant shut down this year and another will be retired in 2021. State authorities want a hydro-based energy plan that would send $10 billion to Hydro-Québec over 20 years.

New England has some of North America’s most ambitious climate goals, with every state in the region pledging to cut emissions by at least 80 percent over the next 30 years.

What’s the downside? Ask the citizens’ groups and nonprofits that have written countless op-eds, organized petitions and staged protests. They argue that hydropower isn’t as clean as cutting-edge clean energy such as solar and wind power, and that Hydro-Québec isn’t trying hard enough to integrate itself into the most innovative carbon-counting energy system. Right as these other energy sources finally become viable, they say, it’s a step backwards to commit to hydro.

As Hydro-Québec will point out, many of these critics are legitimate nonprofits, but others may have questionable connections. The Portland Press Herald in Maine reported in September 2018 that a supposedly grassroot citizens’ group called “Stand Up For Maine” was actually funded by the New England Power Generators Association, which is based in Boston and represents such power plant owners as Calpine Corp., Vistra Energy and NextEra Energy.

But in the end, that may not matter. Arguably the biggest motivator to strike these deals comes not from New England’s needs, but from within Quebec. The province has spent more than $10 billion in the last 15 years to expand its dam and reservoir system, and in order to stay financially healthy, it needs to double its revenue in the next 10 years—a plan that relies largely on exports.

With so much at stake, it has spent the last decade trying to prove it can be an energy of the future.

“Learning as you go”
American critics, justified or not, have been forcing advances at Hydro for a long time.

When the famously huge northern Quebec hydro dams were built at James Bay—construction began in the early 1970s—the logic was purely economic. The term “climate change” didn’t exist. The province didn’t even have an environment department.

The only reason Quebec scientists started trying to measure carbon emissions from hydro reservoirs was “basically because of the U.S.,” said Alain Tremblay, a senior environmental advisor at Hydro Quebec.


Alain Tremblay, senior environmental advisor at Hydro-Québec. Photograph courtesy of Hydro-Québec
In the early 1990s, Hydro began to export power to the U.S., and “because we were a good company in terms of cost and efficiency, some Americans didn't like that,” he said—mainly competitors, though he couldn’t say specifically who. “They said our reservoirs were emitting a lot of greenhouse gases.”

The detractors had no research to back up that claim, but Hydro-Québec had none to refute it, either, said Tremblay. “At that time we didn’t have any information, but from back-of-the envelope calculations, it was impossible to have the emissions the Americans were expecting we have.”

So research began, first to design methods to take the measurements, and then to carry them out. Hydro began a five-year project with a Quebec university.

It took about 10 years to develop a solid methodology, Tremblay said, with “a lot of error and learning-as-you-go.” There have been major strides since then.

“Twenty years ago we were taking a sample of water, bringing it back to the lab and analyzing that with what we call a gas chromatograph,” said Tremblay. “Now, we have an automated system that can measure directly in the water,” reading concentrations of CO2 and methane every three hours and sending its data to a processing centre.

The tools Hydro-Québec uses are built in California. Researchers around the world now follow the same standard methods.

At this point, it’s common knowledge that hydropower does emit greenhouse gases. Experts know these emissions are much higher than previously thought.

Workers on the Eastmain-1 project environmental monitoring program. Photography courtesy of Alain Tremblay.
​But Hydro-Québec now has the evidence, also, to rebut the original accusations from the early 1990s and many similar ones today.

“All our research from Université Laval [found] that it’s about a thousand years before trees decompose in cold Canadian waters,” said Tremblay.

Hydro reservoirs emit greenhouse gases because vegetation and sometimes other biological materials, like soil runoff, decay under the surface.

But that decay depends partly on the warmth of the water. In tropical regions, including the southern U.S., hydro dams can have very high emissions. But in boreal zones like northern Quebec (or Manitoba, Labrador and most other Canadian locations with massive hydro dams), the cold, well-oxygenated water vastly slows the process.

Hydro emissions have “a huge range,” said Laura Scherer, an industrial ecology professor at Leiden University in the Netherlands who led a study of almost 1,500 hydro dams around the world.

“It can be as low as other renewable energy sources, but it can also be as high as fossil fuel energy,” in rare cases, she said.

While her study found that climate was important, the single biggest factor was “sizing and design” of each dam, and specifically its shape, she said. Ideally, hydro dams should be deep and narrow to minimize surface area, perhaps using a natural valley.

Hydro-Québec’s first generation of dams, the ones around James Bay, were built the opposite way—they’re wide and shallow, infamously flooding giant tracts of land.


Alain Tremblay, senior environmental advisor at Hydro-Québec testing emission levels. Photography courtesy of Alain Tremblay
Newly built ones take that new information into account, said Tremblay. Its most recent project is the Romaine River complex, which will eventually include four reservoirs near Quebec’s northeastern border with Labrador. Construction began in 2016.

The site was picked partly for its topography, said Tremblay.

“It’s a valley-type reservoir, so large volume, small surface area, and because of that there’s a pretty limited amount of vegetation that’s going to be flooded,” he said.

There’s a dramatic emissions difference with the project built just before that, commissioned in 2006. Called Eastmain, it’s built near James Bay.

“The preliminary results indicate with the same amount of energy generated [by Romaine] as with Eastmain, you’re going to have about 10 times less emissions,” said Tremblay.

Tracing energy to its source
These signs of progress likely won’t satisfy the critics, who have publicly argued back and forth with Hydro about exactly how emissions should be tallied up.

But Hydro-Québec also faces a different kind of growing gap when it comes to accounting publicly for its product. In the New England energy market, a sophisticated system “tags” all the energy in order to delineate exactly how much comes from which source—nuclear, wind, solar, and others—and allows buyers to single out clean power, or at least the bragging rights to say they bought only clean power.

Really, of course, it’s all the same mix of energy—you can’t pick what you consume. But creating certificates prevents energy producers from, in worst-case scenarios, being able to launder regular power through their clean-power facilities. Wind farms, for example, can’t oversell what their own turbines have produced.

What started out as a fraud prevention tool has “evolved to make it possible to also track carbon emissions,” said Deborah Donovan, Massachusetts director at the Acadia Center, a climate-focused nonprofit.

But Hydro-Québec isn’t doing enough to integrate itself into this system, she says.

It’s “the tool that all of our regulators in New England rely on when we are confirming to ourselves that we’ve met our clean energy and our carbon goals. And…New York has a tool just like that,” said Donovan. “There isn’t a tracking system in Canada that’s comparable, though provinces like Nova Scotia are tapping the Western Climate Initiative for technical support.”

Hydro Quebec Chénier-Vignan transmission line crossing the Outaouais river. Photography courtesy of Hydro-Québec
Developing this system is more a question of Canadian climate policy than technology.

Energy companies have long had the same basic tracking device—a meter, said Tanya Bodell, a consultant and expert in New England’s energy market. But in New England, on top of measuring “every time there’s a physical flow of electricity” from a given source, said Bodell, a meter “generates an attribute or a GIS certificate,” which certifies exactly where it’s from. The certificate can show the owner, the location, type of power and its average emissions.

Since 2006, Hydro-Québec has had the ability to attach the same certificates to its exports, and it sometimes does.

“It could be wind farm generation, even large hydro these days—we can do it,” said Louis Guilbault, who works in regulatory affairs at Hydro-Québec. For Quebec-produced wind energy, for example, “I can trade those to whoever’s willing to buy it,” he said.

But, despite having the ability, he also has the choice not to attach a detailed code—which Hydro doesn’t do for most of its hydropower—and to have it counted instead under the generic term of “system mix.”

Once that hydropower hits the New England market, the administrators there have their own way of packaging it. The market perhaps “tries to determine emissions, GHG content,” Guilbault said. “They have their own rules; they do their own calculations.”

This is the crux of what bothers people like Donovan and Bodell. Hydro-Québec is fully meeting its contractual obligations, since it’s not required to attach a code to every export. But the critics wish it would, whether by future obligation or on its own volition.

Quebec wants it both ways, Donovan argued; it wants the benefits of selling low-emission energy without joining the New England system of checks and balances.

“We could just buy undifferentiated power and be done with it, but we want carbon-free power,” Donovan said. “We’re buying it because of its carbon content—that’s the reason.”

Still, the requirements are slowly increasing. Under Hydro-Québec’s future contract with Massachusetts (which still has several regulatory steps to go through before it’s approved) it’s asked to sell the power’s attributes, not just the power itself. That means that, at least on paper, Massachusetts wants to be able to trace the energy back to a single location in Quebec.

“It’s part of the contract we just signed with them,” said Guilbault. “We’re going to deliver those attributes. I’m going to select a specific hydro facility, put the number in...and transfer that to the buyers.”

Hydro-Québec says it’s voluntarily increasing its accounting in other ways. “Even though this is not strictly required,” said spokeswoman Lynn St. Laurent, Hydro is tracking its entire output with a continent-wide registry, the North American Renewables Registry.

That registry is separate from New England’s, so as far as Bodell is concerned, the measure doesn’t really help. But she and others also expect the entire tracking system to grow and mature, perhaps integrating into one. If it had been created today, in fact, rather than in the 1990s, maybe it would use blockchain technology rather than a varied set of administrators, she said.

Counting emissions through tracking still has a long way to go, as well, said Donovan, and it will increasingly matter in Canada's race to net-zero as standards tighten. For example, natural gas is assigned an emissions number that’s meant to reflect the emissions when it’s consumed. But “we do not take into account what the upstream carbon emissions are through the pipeline leakage, methane releases during fracking, any of that,” she said.

Now that the search for exactitude has begun, Hydro-Québec won’t be exempt, whether or not Quebeckers share that curiosity. “We don’t know what Hydro-Québec is doing on the other side of the border,” said Donovan.

 

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Hydro One delivery rates go up

Hydro One Rate Hike reflects Ontario Energy Board approval for higher delivery charges, impacting seasonal customers more than residential classes, funding infrastructure upgrades like wood pole and transformer replacements across Ontario's medium-density service areas.

 

Key Points

The Hydro One rate hike is an OEB-approved delivery charge increase to fund upgrades, with impacts on seasonal users.

✅ OEB-approved delivery rate increases retroactive to 2018

✅ Seasonal customers see larger monthly bill impacts than residential

✅ Funds pole, transformer replacements and tree trimming work

 

Hydro One seasonal customers will face bigger increases in their bills than the utility's residential customers as a result of an Ontario Energy Board approval of a rate hike, a topic drawing attention from a utilities watchdog in other provinces as well.

Hydro One received permission to increase its delivery charge, as large projects like the Meaford hydro generation proposal are considered across Ontario, retroactive to last year.

It says it needs the money to maintain and upgrade its infrastructure, including efforts to adapt to climate change, much of which was installed in the 1950s.

The utility is notifying customers that new statements reflect higher delivery rates which were not charged in 2018 and the first half of this year, due to delay in receiving the OEB's permission, similar to delays that can follow an energy board recommendation in other jurisdictions.

The amount that customers' bills will increase by depends not only on how much electricity they use, but also on which rate class they belong to, as well as policy decisions affecting remote connections such as the First Nations electricity line in northern Ontario.

For seasonal customers such as summer cottage owners, the impact on a typical user's bill will be 2.9 per cent more per month for 2018, and 1.7 per cent per month for 2019.

There will be further increases of 1.0 per cent, 1.4 per cent and 1.1 per cent per month in 2020, 2021 and 2022 respectively. 

Typical residential customers will experience smaller increases or rate freezes over the same period.

In the residential medium density class, the rate changes are a 2.0 per cent increase for last year, a decrease of 0.5 per cent this year, and an increase of 0.5 per cent in 2021. There will be no increases in 2020 and 2022.

 

Seasonal Rate Class — Estimated bill impact per month

2018 - 2.9 %

2019 - 1.7%

2020 - 1.0%

2021 - 1.4%

2022 - 1.1%

 

Residential Medium Density Rate Class — Estimated bill impact per month

2018 - 2.0%

2019 - -0.5% decrease

2020 - 0.0%

2021 - 0.5%

2022 - 0.0%

A Hydro One spokesperson told tbnewswatch.com that over the next three years, the utility's upgrading plan includes reliability investments such as replacing more than 24,000 wood poles across the province as well as numerous transformers.

In the Thunder Bay area, the spokesperson said, some of the revenue generated by the higher delivery rates will cover the cost of replacing more than 180 poles and trimming hazardous trees around 3,200 kilometres of overhead power lines while sharing electrical safety tips with customers.

 

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$453M Manitoba Hydro line to Minnesota could face delay after energy board recommendation

Manitoba-Minnesota Transmission Project faces NEB certificate review, with public hearings, Indigenous consultation, and cross-border approval weighing permit vs certificate timelines, potential land expropriation, and Hydro's 2020 in-service date for the 308-MW intertie.

 

Key Points

A cross-border hydro line linking Manitoba and Minnesota, now under NEB review through a permit or certificate process.

✅ NEB recommends certificate with public hearings and cabinet approval

✅ Stakeholders cite land, health, and economic impacts along route

✅ Hydro targets May-June 2020 in-service despite review

 

A recommendation from the National Energy Board could push back the construction start date of a $453-million hydroelectric transmission line from Manitoba to Minnesota.

In a letter to federal Natural Resources Minister Jim Carr, the regulatory agency recommends using a "certificate" approval process, which could take more time than the simpler "permit" process Manitoba Hydro favours.

The certificate process involves public hearings, reflecting First Nations intervention seen in other power-line debates, to weigh the merits of the project, which would then go to the federal cabinet for approval.

The NEB says this process would allow for more procedural flexibility and "address Aboriginal concerns that may arise in the circumstances of this process."

The Manitoba-Minnesota Transmission Project would provide the final link in a chain that brings hydroelectricity from generating stations in northern Manitoba, through the Bipole III transmission line and, like the New England Clean Power Link project, across the U.S. border as part of a 308-megawatt deal with the Green Bay-based Wisconsin Public Service.

When Hydro filed its application in December 2016, it had expected to have approval by the end of August 2017 and to begin construction on the line in mid-December, in order to have the line in operation by May or June 2020.  

Groups representing stakeholders along the proposed route of the transmission line had mixed reactions to the energy board's recommendation.

A lawyer representing a coalition of more than 120 landowners in the Rural Municipality of Taché and around La Broquerie, Man., welcomed the opportunity to have a more "fulsome" discussion about the project.

"I think it's a positive step. As people become more familiar with the project, the deficiencies with it become more obvious," said Kevin Toyne, who represents the Southeast Stakeholders Coalition.

Toyne said some coalition members are worried that Hydro will forcibly expropriate land in order to build the line, while others are worried about potential economic and health impacts of having the line so close to their homes. They have proposed moving the line farther east.

When the Clean Environment Commission — an arm's-length provincial government agency — held public hearings on the proposed route earlier this year, the coalition brought their concerns forward, echoing Site C opposition voiced by northerners, but Toyne says both the commission and Hydro ignored them.

Hydro still aiming for 2020 in-service date

The Manitoba Métis Federation also participated in those public hearings. MMF president David Chartrand worries about the impact a possible delay, as seen with the Site C work halt tied to treaty rights, could have on revenue from sales of hydroelectric power to the U.S.

"I know that a lot of money, billions have been invested on this line. And if the connection line is not done, then of course this will be sitting here, not gaining any revenue, which will affect every Métis in this province, given our Hydro bill's going to go up," Chartrand said.The NEB letter to Minister Carr requests that he "determine this matter in an expedited manner."

Manitoba Hydro spokesperson Bruce Owen said in an email that the Crown corporation will participate in whatever process, permit or certificate, the NEB takes.

"Manitoba Hydro does not have any information at this point in time that would change the estimated in-service date (May-June 2020) for the Manitoba-Minnesota Transmission Project," he said.

The federal government "is currently reviewing the NEB's recommendation to designate the project as subject to a certificate, which would result in public hearings," said Alexandre Deslongchamps, a spokesperson for Carr.

"Under the National Energy Board Act, an international power line requires either the approval by the NEB through a permit or approval by the Government of Canada by a certificate. Both must be issued by the NEB," he wrote in an email to CBC News.

By law, the certificate process is not to take longer than 15 months.

 

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Revenue from Energy Storage for Microgrids to Total More Than $22 Billion in the Next Decade

Energy Storage for Microgrids enables renewables integration via ESS, boosting resilience and reliability while supporting solar PV and wind, innovative financing, and business models, with strong growth forecast across Asia-Pacific and North America.

 

Key Points

Systems that store energy in microgrids to integrate renewables, boost resilience, and optimize distributed power.

✅ Integrates solar PV and wind with stable, dispatchable output

✅ Reduces costs via new financing and service business models

✅ Expands reliable power for remote, grid-constrained regions

 

A new report from Navigant Research examines the global market for energy storage for microgrids (ESMG), providing an analysis of trends and market dynamics in the context of the evolving digital grid landscape, with forecasts for capacity and revenue that extend through 2026.

Interest in energy storage-enabled microgrids is growing alongside an increase in solar PV and wind deployments. Although not required for microgrids to operate, energy storage systems (ESSs) have emerged as an increasingly valuable component of distributed energy networks, including virtual power plants that coordinate distributed assets, because of their ability to effectively integrate renewable generation.

“There are several key drivers resulting in the growth of energy storage-enabled microgrids globally, including the desire to improve the resilience of power supply both for individual customers and the entire grid, the need to expand reliable electricity service to new areas, rising electricity prices, and innovations in business models and financing,” says Alex Eller, research analyst with Navigant Research. “Innovations in business models and financing will likely play a key role in the expansion of the ESMG market during the coming years.”

One example of microgrid deployment for resilience is the SDG&E microgrid in Ramona built to help communities prepare for peak wildfire season.

According to the report, the most successful companies in this industry will be those that can unlock the potential of new business models to reduce the risk and upfront costs to customers. This is particularly true in Asia Pacific and North America, which are projected to be the largest regional markets for new ESMG capacity by far, a trend underscored by California's push for grid-scale batteries to stabilize the grid.

The report, “Market Data: Energy Storage for Microgrids,” outlines the key market drivers and barriers within the global ESMG market. The study provides an analysis of specific trends, including evolving grid edge trends, and market dynamics for each major world region to illustrate how different markets are taking shape. Global ESMG forecasts for capacity and revenue, segmented by region, technology, and market segment, extend through 2026. The report also briefly examines the major technology issues related to ESSs for microgrids.

Google made energy storage news recently when its parent company Alphabet announced it is hoping to revolutionize renewable energy storage using vats of salt and antifreeze. Alphabet’s secretive research lab, simply named “X,” is developing a system for storing renewable energy that would otherwise be wasted. The project, named “Malta,” is hoping its energy storage systems “has the potential to last longer than lithium-ion batteries and compete on price with new hydroelectric plants and other existing clean energy storage methods, according to X executives and researchers,” reports Bloomberg.

 

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