PSC orders utilities to improve reliability infrastructure

Mexico Energy Reform Defeat underscores opposition unity as CFE-first rules, state regulators, and lithium nationalization falter amid USMCA concerns, investment risks, and clean energy transition impacts in Congress over power generation policy.

Key Points

The failed push to expand CFE control, flagged for USMCA risks, higher costs, regulator shifts, and slower clean energy transition.

✅ Bill to mandate 54% CFE generation and priority dispatch failed.

✅ Opposition cited USMCA breaches, higher prices, slower clean energy.

✅ Lithium nationalization to return via separate legislation.

Mexican President Andres Manuel Lopez Obrador's plan to increase state control of power generation was defeated in parliament on Sunday, as opposition parties united in the face of a bill they said would hurt investment and breach international obligations, concerns mirrored by rulings such as the Florida court on electricity monopolies that scrutinize market concentration.

His National Regeneration Movement (MORENA) and its allies fell nearly 60 votes short of the two-thirds majority needed in the 500-seat lower house of Congress, mustering just 275 votes after a raucous session that lasted more than 12 hours.

Seeking to roll back previous constitutional reforms that liberalized the electricity market, Lopez Obrador's proposed changes would have done away with a requirement that state-owned Comision Federal de Electricidad (CFE) sell the cheapest electricity first, a move reminiscent of debates when energy groups warned on pricing changes under federal proposals, allowing it to sell its own electricity ahead of other power companies.

Under the bill, the CFE would also have been set to generate a minimum of 54% of the country's total electricity, and energy regulation would have been shifted from independent bodies to state regulators, paralleling concerns raised when a Calgary retailer opposed a market overhaul over regulatory impacts.

The contentious proposals faced much criticism from business groups and the United States, Mexico's top trade partner as well as other allies who argued it would violate the regional trade deal, the United States-Mexico-Canada Agreement (USMCA), even as the USA looks to Canada for green power to deepen cross-border energy ties.

Lopez Obrador had argued the bill would have protected consumers and made the country more energy independent, echoing how Texas weighs market reforms to avoid blackouts to bolster reliability, saying the legislation was vital to his plans to "transform" Mexico.

Although the odds were against his party, he came into the vote seeking to leverage his victory in last weekend's referendum on his leadership.

Speaking ahead of the vote, Jorge Alvarez Maynez, a lawmaker from the opposition Citizens' Movement party, said the proposals, if enacted, would damage Mexico, pointing to experiences like the Texas electricity market bailout after a severe winter storm as cautionary examples.

"There isn't a specialist, academic, environmentalist or activist with a smidgen of doubt - this bill would increase electricity prices, slow the transition to (clean) energy in our country and violate international agreements," he added.

Supporters of clean-energy goals noted that subnational shifts, such as the New Mexico 100% clean electricity bill can illustrate alternative pathways to reform.

The bill also contained a provision to nationalize lithium resources.

Lopez Obrador said this week that if the bill was defeated, he would send another bill to Congress on Monday aiming to have at least the lithium portion of the proposed legislation passed.

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Hydro One Disconnection Ban Extension keeps Ontario electricity customers connected during COVID-19, extending the moratorium on power shutoffs and expanding financial relief programs amid ongoing pandemic restrictions and persistent hot weather across the province.

Key Points

An open-ended Ontario utility moratorium preventing residential power shutoffs and offering bill relief during COVID-19.

✅ No residential disconnections until further notice

✅ Extended bill assistance and flexible payment options

✅ Response to COVID-19 restrictions and extreme heat

Ontario's primary electricity provider says it's extending a ban on disconnecting homes from the power grid until further notice.

Hydro One first issued the ban towards the beginning of the province's COVID-19 outbreak, saying self-isolating customers needed to be able to rely on electricity while they were kept at home during the pandemic.

A spokesman for the utility says the ban was initially set to expire at the end of July, but has now been extended in a manner similar to winter disconnection bans without a fixed end-date.

Hydro One says the move is necessary given the ongoing restrictions posed by the pandemic, and notes it has supported provincial COVID-19 efforts in recent months, as well as persistent hot weather across much of the province.

It says it's also planning to extend a financial relief program to help customers struggling to pay their hydro bills, reflecting demand for more choice and flexibility among ratepayers.

The province also extended off-peak electricity rates to provide relief for families, small businesses and farms during this period.

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Hospital Electricity Reliability underpins ICU operations, ventilators, medical devices, and diagnostics, reducing power outages risks via grid power and backup generators, while energy poverty and blackouts magnify COVID-19 mortality in vulnerable regions.

Key Points

Hospital electricity reliability is steady power that keeps ICU care, ventilators and medical devices operating.

✅ ICU loads: ventilators, monitors, infusion pumps, diagnostics

✅ Grid power plus backup generators minimize outage risk

✅ Energy poverty increases COVID-19 mortality and infection

Robert Bryce, Contributor

During her three-year career as a registered nurse, my friend, C., has cared for tuberculosis patients as well as ones with severe respiratory problems. She’s now caring for COVID-19 patients at a hospital in Ventura County, California, where debates about keeping the lights on continue amid the state’s energy transition. Is she scared about catching the virus? “No,” she replied during a phone call on Thursday. “I’m pretty unflappable.”

What would scare her? She quickly replied, “a power outage,” a threat that grows during summer blackouts when heat waves drive demand. About a year ago, while working in Oregon, the hospital she was working in lost power for about 45 minutes. “It was terrifying,” she said. 

C., who wasn’t authorized by her hospital to talk to the media, and thus asked me to only use the initial of her first name, said that COVID-19 patients are particularly reliant on electrical devices. She quickly ticked off the machines: “The bed, the IV machine, vital signs monitor, heart monitor, the sequential compression devices...” COVID-19 patients are hooked up to a minimum of five electrical devices, she said, and if the virus-stricken patient needs high-pressure oxygen or a ventilator, the number of electrical devices could be two or three times that number. “You name it, it plugs in,” she said.  

Today In: Energy

The virus has infected some 2.2 million people around the world and killed more than 150,000,including more than 32,000 people here in the U.S. While those numbers are frightening, it is apparent that the toll would be far higher without adequate supplies of reliable electricity. Modern healthcare systems depend on electricity. Hospitals are particularly big consumers. Power demand in hospitals is about 36 watts per square meter, which is about six times higher than the electricity load in a typical American home, and utilities are turning to AI to adapt to electricity demands during surges. 

Beating the coronavirus is all about electricity. Indeed, nearly every aspect of coronavirus detection, testing, and treatment requires juice. Second, it appears that the virus is more deadly in places where electricity is scarce or unreliable. Finally, if there are power outages in virus hotspots or hospitals, a real risk in a grid with more blackouts than other developed countries, the damage will be even more severe. 

As my nurse friend in Ventura County made clear, her ability to provide high-quality care for patients is wholly dependent on reliable electricity. The thermometers used to check for fever are powered by electricity. The monitors she uses to keep track of her patients, as well as her Vocera, the walkie-talkie that she uses to communicate with her colleagues, runs on batteries. Testing for the virus requires electricity. One virus-testing machine, Abbott Labs’ m2000, is a 655-pound appliance that, according to its specification sheet, runs on either 120 or 240 volts of electricity. The operating manual for a ventilator made by Hamilton Medical is chock full of instructions relating to electricity, including how to manage the machine’s batteries and alarms. 

While it may be too soon to make a direct connection between lack of electricity and the lethality of the coronavirus, the early signs from the Navajo reservation indicate that energy poverty amplifies the danger. The sprawling reservation has about 175,000 residents, but it has a higher death toll from the virus than 13 states. About 10 percent of Navajos do not have electricity in their homes and more than 30 percent lack indoor plumbing. 

The death rate from the virus on the reservation now stands at 3.4 percent, which is nearly twice the global average. In the middle of last week, the entire population of Native American tribes in the U.S. accounted for about 1,100 confirmed cases of the virus and about 44 deaths. Navajos accounted for the majority of those, with 830 confirmed cases of coronavirus and 28 deaths. 

On Saturday night, the Navajo Times reported a major increase, with 1,197 positive cases of COVID-19 on the reservation and 44 deaths. Other factors may contribute to the high infection and mortality rates on the reservation, including  high rates of diabetes, obesity, and crowded residential living situations. That said, electricity and water are essential to good hygiene and health authorities say that frequent hand washing helps cut the risk of contracting the virus. 

The devastation happening on Navajoland provides a window into what may happen in crowded, electricity-poor countries like India, Pakistan, and Bangladesh. It also shows what could happen if a tornado or hurricane were to wipe out the electric grid in virus hotspots like New Orleans, as extreme weather increasingly afflicts the grid nationwide. Sure, most American hospitals have backup generators to help assure reliable power. But those generators can fail. Further, they usually burn diesel fuel which needs to be replenished every few days. 

The essential point here is that our hospitals and critical health care machines aren’t running on solar panels and batteries. Instead, they are running on grid power that’s being provided by reliable sources — coal, natural gas, hydro, and nuclear power — which together produce about 89 percent of the electricity consumed in this country, even as Russian hacking of utilities highlights cyber risks. The pandemic — which is inflicting trillions of dollars of damage on our economy and tens of thousands of deaths — underscores the criticality of abundant and reliable electricity to our society and the tremendous damage that would occur if our health care infrastructure were to be hit by extended blackouts during the fight to stop COVID-19.

In a follow-up interview on Saturday with my friend, C., she told me that while caring for patients, she and her colleagues “are entirely dependent on electricity. We take it for granted. It’s a hidden assumption in our work,” a reminder echoed by a grid report card that warns of dangerous vulnerabilities. She quickly added she and her fellow nurses “aren’t trained or equipped to deal with circumstances that would come with shoddy power. If we lost power completely, people will die.”

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Germany Coal Phase-Out 2038 advances the energy transition, curbing lignite emissions while scaling renewable energy, carbon pricing, and hydrogen storage amid a nuclear phase-out and regional just-transition funding for miners and communities.

Key Points

Germany's plan to end coal by 2038, fund regional transition, and scale renewable energy while exiting nuclear.

✅ Closes last coal plant by 2038; reviews may accelerate.

✅ 40b euros aid for lignite regions and workforce.

✅ Emphasizes renewables, hydrogen, carbon pricing reforms.

German lawmakers have finalized the country's long-awaited phase-out of coal as an energy source, backing a plan that environmental groups say isn't ambitious enough and free marketeers criticize as a waste of taxpayers' money.

Bills approved by both houses of parliament Friday envision shutting down the last coal-fired power plant by 2038 and spending some 40 billion euros ($45 billion) to help affected regions cope with the transition, which has been complicated by grid expansion woes in recent years.

The plan is part of Germany's `energy transition' - an effort to wean Europe's biggest economy off planet-warming fossil fuels and generate all of the country's considerable energy needs from renewable sources. Achieving that goal is made harder than in comparable countries such as France and Britain because of Germany's existing commitment to also phase out nuclear power entirely by the end of 2022.

"The days of coal are numbered in Germany," Environment Minister Svenja Schulze said. "Germany is the first industrialized country that leaves behind both nuclear energy and coal."

Greenpeace and other environmental groups have staged vocal protests against the plan, including by dropping a banner down the front of the Reichstag building Friday. They argue that the government's road map won't reduce Germany's greenhouse gas emissions fast enough to meet the targets set out in the Paris climate accord.

"Germany, the country that burns the greatest amount of lignite coal worldwide, will burden the next generation with 18 more years of carbon dioxide," Greenpeace Germany's executive director Martin Kaiser told The Associated Press.

Kaiser, who was part of a government-appointed expert commission, accused Chancellor Angela Merkel of making a "historic mistake," saying an end date for coal of 2030 would have sent a strong signal for European and global climate policy. Merkel has said she wants Europe to be the first continent to end its greenhouse gas emissions, by 2050, even as some in Berlin debate a possible nuclear U-turn to reach that goal faster.

Germany closed its last black coal mine in 2018, but it continues to import the fuel and extract its own reserves of lignite, a brownish coal that is abundant in the west and east of the country, and generates about a third of its electricity from coal in recent years. Officials warn that the loss of mining jobs could hurt those economically fragile regions, though efforts are already under way to turn the vast lignite mines into nature reserves and lakeside resorts.

Schulze, the environment minister, said there would be regular government reviews to examine whether the end date for coal can be brought forward, even as Berlin temporarily extended nuclear operations during the energy crisis. She noted that by the end of 2022, eight of the country's most polluting coal-fired plants will have already been closed.

Environmentalists have also criticized the large sums being offered to coal companies to shut down their plants, a complaint shared by libertarians such as Germany's opposition Free Democratic Party.

Katja Suding, a leading FDP lawmaker, said the government should have opted to expand existing emissions trading systems that put a price on carbon, thereby encouraging operators to shut down unprofitable coal plants.

Katja Suding, a leading FDP lawmaker, said the government should have opted to expand existing emissions trading systems, rather than banking on a nuclear option, that put a price on carbon, thereby encouraging operators to shut down unprofitable coal plants.

"You just have to make it so expensive that it's not profitable anymore to turn coal into electricity," she said.

This week, utility companies in Spain shut down seven of the country's 15 coal-fired power plants, saying they couldn't be operated at profit without government subsidies.

But the head of Germany's main miners' union, Michael Vassiliadis, welcomed the decision, calling it a "historic milestone." He urged the government to focus next on an expansion of renewable energy generation and the use of hydrogen as a clean alternative for storing and transporting energy in the future, amid arguments that nuclear won't fix the gas crunch in the near term.

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BC Hydro Rate Freeze Rejection details the BCUC decision enabling a 3% rate increase, citing revenue requirements, debt, and capital costs, affecting electricity bills, with NDP government proposing lifeline rates and low-income relief.

Key Points

It is the BCUC ruling allowing a 3% BC Hydro rate hike, citing cost recovery, debt, and capital needs.

✅ BCUC rejects freeze; 3% increase proceeds April 1, 2018

✅ Rationale: cost recovery, debt, capital expenditures

✅ Relief: lifeline rate, $600 grants, winter payment plan

The B.C. Utilities Commission has rejected a request by the provincial government to freeze rates at BC Hydro for the coming year, meaning a pending rate increase of three percent will come into effect as higher BC Hydro rates on April 1, 2018.

BC Hydro had asked for the three per cent increase, aligning with a rate increase proposal that would add about $2 a month, but, last year, Energy Minister Michelle Mungall directed the Crown corporation to resubmit its request in order to meet an NDP election promise.

"After years of escalating electricity costs, British Columbians deserve a break on their bills," she said at the time.

However, the utilities commission found there was "insufficient regulatory justification to approve the zero per cent rate increase."

"Even these increases do not fully recover B.C. Hydro's forecast revenue requirement, which includes items such as operating costs, new capital expenditures and carrying costs on capital expenditures," the commission wrote in a news release.

Mungall said she was disappointed by the decision.

"We were always clear we were going to the BCUC. We need to respect the role the BCUC has here for the ratepayers and for the public. I'm very disappointed obviously with their decision."

Mungall blamed the previous government for leaving BC Hydro in a financial state where a rate freeze was ultimately not possible.

Last month, Moody's Investors Service calculated BC Hydro's total debt at $22 billion and said it was one of the province's two credit challenges going forward.

"There's quite a financial mess that is a B.C. Liberal legacy after 16 years of government. We have the responsibility as a new government to clean that up."

B.C. Liberal leader Andrew Wilkinson said it was an example of the new government not living up to its campaign promises.

"British Columbians, particularly those on fixed incomes, believed the B.C. NDP when they promised a freeze on hydro bills. They planned accordingly and are now left in the lurch and face higher expenses. This is a government that stumbles into messes that cost all of us because they put rhetoric ahead of planning," he said.

Help on the way?

With the freeze being rejected, Mungall said the government would be going forward on other initiatives to help low-income ratepayers, as advocates' call for change after a fund surplus, including:

Legislating a "lifeline rate" program, allowing people with "demonstrated need" to apply for a lower rate for electricity.

Starting in May, providing an emergency grant of $600 for customers who have an outstanding BC Hydro bill.

Hydro's annual winter payment plan also allows people the chance to spread the payment of bills from December to February out over six months, and, with a two-year rate increase on the horizon, a new pilot program to help people paying their bills begins in July.

Mungall couldn't say whether the government would apply for rate freezes in the future.

"I don't have a crystal ball, and can't predict what might happen in two or three years from now, but we need to act swiftly now," she said.

"I appreciate the [BCUC's] rationale, I understand it, and we'll be moving forward with other alternatives for making life more affordable."

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Adani Electricity Mumbai Power Cuts follow non-payment rules, reflecting billing disputes, regulatory compliance, consumer impact, and affordability concerns, while prompting mitigation measures like flexible payment plans, assistance programs, and clearer communication for residents.

Key Points

AEML cutoffs for unpaid bills per rules, raising affordability worries, billing issues, and calls for flexible aid.

✅ Triggered by unpaid bills under regulatory guidelines

✅ Affordability and billing transparency concerns raised

✅ Mitigation: flexible plans, aid for low-income users

Adani Electricity Mumbai Limited (AEML) recently made headlines by cutting power supply to around 100 homes in Mumbai, sparking discussions about the reasons behind this action and its implications for consumers, especially as reports like the Northeast D.C. outage continue to surface.

Background of the Incident

The power supply disconnections by AEML were reportedly due to non-payment of electricity bills by the affected households. This action, although necessary under AEML's policies and in accordance with regulatory guidelines, has raised concerns about the impact on residents, particularly during challenging economic times when pandemic electricity shut-offs highlighted energy insecurity.

Reasons for Non-Payment

Non-payment of electricity bills can stem from various reasons, including financial hardships, disputes over billing accuracy, or unforeseen circumstances affecting household finances. In Mumbai, where the cost of living is high, utility bills constitute a significant portion of monthly expenses for many households, mirroring trends of rising electricity bills seen elsewhere.

Regulatory and Legal Framework

AEML's decision to disconnect power supply aligns with regulatory provisions governing utility services, which may include emergency disconnection moratoriums in other jurisdictions. Utility companies are mandated to enforce bill payments to maintain operational sustainability and ensure fair distribution of resources among consumers.

Consumer Impact and Response

The power disconnections have prompted reactions from affected residents and consumer advocacy groups, highlighting issues related to affordability, transparency in billing practices, and the need for supportive measures during times of economic distress amid heat-related electricity struggles that pressure vulnerable households.

Mitigation Measures

In response to such incidents, utility companies and regulatory authorities often implement mitigation measures. These may include flexible payment options, financial assistance programs for low-income households, and enhanced communication about billing procedures and payment deadlines, along with policy scrutiny such as utility spending oversight to curb unnecessary costs.

Future Considerations

As cities like Mumbai continue to grow and face challenges related to urbanization and infrastructure development, ensuring reliable and affordable access to essential services like electricity, including efforts to prevent summer power outages, remains a priority. Balancing the operational needs of utility providers with consumer welfare concerns requires ongoing dialogue and proactive measures from all stakeholders.

Conclusion

The power supply cuts by Adani Electricity in Mumbai underscore the complexities of managing utility services in urban centers. While necessary for financial viability and regulatory compliance, such actions also highlight broader issues of affordability and consumer protection. Moving forward, collaborative efforts between utility companies, regulatory authorities, and community stakeholders are essential in addressing these challenges and ensuring equitable access to essential services for all residents.

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