Utilities responsiveness more effective than federal government during Sandy

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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Remote Work Energy Costs are rising as home offices and telecommuting boost electricity bills; utilities, broadband usage, and COVID-19-driven stay-at-home policies affect productivity, consumption patterns, and household budgets across the U.K. and Europe.

Key Points

Remote Work Energy Costs are increased household electricity and utility expenses from telecommuting and home office use.

✅ WFH shifts energy load from offices to households.

✅ Higher device, lighting, and heating/cooling usage drives bills.

✅ Broadband access gaps limit remote work equity.

Household electricity bills are set to soar, with rising residential electricity use tied to the millions of people now working at home to avoid catching the coronavirus.

Running laptops and other home appliances will cost consumers an extra 52 million pounds ($60 million) each week in the U.K., according to a study from Uswitch, a website that helps consumers compare the energy prices that utilities charge.

For each home-bound household, the pain to the pocketbook may be about 195 pounds per year extra, even as some utilities pursue pandemic cost-cutting to manage financial pressures.

The rise in price for households comes even as overall demand is falling rapidly in Europe, with wide swaths of the economy shut down to keep workers from gathering in one place, and the U.S. grid overseer issuing warnings about potential pandemic impacts on operations.

People stuck at home will plug in computers, lights and appliances when they’d normally be at the office, increasing their consumption.

With the Canadian government declaring a state of emergency due to the coronavirus, companies are enabling work-from-home structures to keep business running and help employees follow social distancing guidelines, and some utilities have even considered housing critical staff on site to maintain operations. However, working remotely has been on the rise for a while.

“The coronavirus is going to be a tipping point. We plodded along at about 10% growth a year for the last 10 years, but I foresee that this is going to really accelerate the trend,” Kate Lister, president of Global Workplace Analytics.

Gallup’s State of the Workplace 2017 study found that 43% of employees work remotely with some frequency. Research indicates that in a five-day workweek, working remotely for two to three days is the most productive. That gives the employee two to three days of meetings, collaboration and interaction, with the opportunity to just focus on the work for the other half of the week.

Remote work seems like a logical precaution for many companies that employ people in the digital economy, even as some federal agencies sparked debate with an EPA telework policy during the pandemic. However, not all Americans have access to the internet at home, and many work in industries that require in-person work.

According to the Pew Research Center, roughly three-quarters of American adults have broadband internet service at home. However, the study found that racial minorities, older adults, rural residents and people with lower levels of education and income are less likely to have broadband service at home. In addition, 1 in 5 American adults access the internet only through their smartphone and do not have traditional broadband access. 

Full-time employees are four times more likely to have remote work options than part-time employees. A typical remote worker is college-educated, at least 45 years old and earns an annual salary of $58,000 while working for a company with more than 100 employees, according to Global Workplace Analytics, and in Canada there is growing interest in electricity-sector careers among younger workers. 

New York, California and other states have enacted strict policies for people to remain at home during the coronavirus pandemic, which could change the future of work, and Canadian provinces such as Saskatchewan have documented how the crisis has reshaped local economies across sectors.

“I don’t think we’ll go back to the same way we used to operate,” Jennifer Christie, chief HR officer at Twitter, told CNBC. “I really don’t.”

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Brazil ICMS Tax Cap limits state VAT on fuels, natural gas, electricity, communications, and transit, promising short-term price relief amid inflation, with federal compensation to states and potential legal challenges affecting investments and ANP auctions.

Key Points

A policy capping state VAT at 17-18 percent on fuels, electricity, and services to temper prices and inflation.

✅ Caps VAT to 17-18% on fuels, power, telecom, transit

✅ Short-term relief; medium-long term impact uncertain

✅ Federal compensation; potential court challenges, investment risk

Brazil’s congress approved a bill that limits the ICMS tax rate that state governments can charge on fuels, natural gas, electricity, communications, and public transportation. 

Local lawyers told BNamericas that the measure may reduce fuel and power prices in the short term, similar to Brazil power sector relief loans seen during the pandemic, but it is unlikely to produce any major effects in the medium and long term. 

In most states the ceiling was set at 17% or 18% and the federal government will pay compensation to the states for lost tax revenue until December 31, via reduced payments on debts that states owe the federal government.

The bill will become law once signed by President Jair Bolsonaro, who pushed strongly for the proposal with an eye on his struggling reelection campaign for the October presidential election. Double-digit inflation has turned into a major election issue and fuel and electricity prices have been among the main inflation drivers, as seen in EU energy-driven inflation across the bloc this year. Congress’ approval of the bill is seen by analysts as political victory for the Brazilian leader.

How much difference will it make?

Marcus Francisco, tax specialist and partner at Villemor Amaral Advogados, said that in the formation of fuel and electricity prices there are other factors, including high natural gas prices, that drive increases.

“In the case of fuels, if the barrel of oil [price] increases, automatically the final price for the consumer will go up. For electricity, on the other hand, there are several subsidies and policy choices such as Florida rejecting federal solar incentives that are part of the price and that can increase the rate [paid],” he said. 

There is also a possibility that some states will take the issue to the supreme court since ICMS is a key source of revenue for them, Francisco added.

Tiago Severini, a partner at law firm Vieira Rezende, said the comparison between the revenue impact and the effective price reduction, based on the estimates made by the states and the federal government, seems disproportionate, and, as seen in Europe, rolling back European electricity prices is often tougher than it appears. 

“In other words, a large tax collection impact is generated, which is quite unequal among the different states, for a not so strong price reduction,” he said.

“Due to the lack of clarity regarding the precision of the calculations involved, it’s difficult even to assess the adequacy of the offsets the federal government has been considering, and international cases such as France's new electricity pricing scheme illustrate how complex it can be to align fiscal offsets with regulatory constraints, to cover the cost it would have with the compensation for the states” Severini added.

The compensation ideas that are known so far include hiking other taxes, such as the social contribution on net profits (CSLL) that is paid by oil and gas firms focused on exploration and production.

“This can generate severe adverse effects, such as legal disputes, reduced investments in the country, and reduced attractiveness of the new auctions by [sector regulator] ANP, and costly interventions like the Texas electricity market bailout after extreme weather events,” Severini said. 

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Texas Heat Pump Electrification replaces natural gas furnaces with electric heating across ERCOT, cutting carbon emissions, lowering utility bills, shifting summer peaks to winter, and aligning higher loads with strong seasonal wind power generation.

Key Points

Statewide shift from gas furnaces to heat pumps in Texas, reducing emissions and bills while moving grid peak to winter.

✅ Up to $452 annual utility savings per household

✅ CO2 cuts up to 13.8 million metric tons in scenarios

✅ Winter peak rises, summer peak falls; wind aligns with load

What would happen if you converted all the single-family homes in Texas from natural gas to electric heating?

According to a paper from Pecan Street, an Austin-based energy research organization, the transition would reduce climate-warming pollution, save Texas households up to $452 annually on their utility bills, and flip the state from a summer-peaking to a winter-peaking system. And that winter peak would be “nothing the grid couldn’t evolve to handle,” according to co-author Joshua Rhodes, a view echoed by analyses outlining Texas grid reliability improvements statewide today.

The report stems from the reality that buildings must be part of any comprehensive climate action plan.

“If we do want to decarbonize, eventually we do have to move into that space. It may not be the lowest-hanging fruit, but eventually we will have to get there,” said Rhodes.

Rhodes is a founding partner of the consultancy IdeaSmiths and an analyst at Vibrant Clean Energy. Pecan Street commissioned the study, which is distilled from a larger original analysis by IdeaSmiths, at the request of the nonprofit Environmental Defense Fund.

In an interview, Rhodes said, “The goal and motivation were to put bounding on some of the claims that have been made about electrification: that if we electrify a lot of different end uses or sectors of the economy...power demand of the grid would double.”

Rhodes and co-author Philip R. White used an analysis tool from the National Renewable Energy Laboratory called ResStock to determine the impact of replacing natural-gas furnaces with electric heat pumps in homes across the ERCOT service territory, which encompasses 90 percent of Texas’ electricity load.

Rhodes and White ran 80,000 simulations in order to determine how heat pumps would perform in Texas homes and how the pumps would impact the ERCOT grid.

The researchers modeled the use of “standard efficiency” (ducted, SEER 14, 8.2 HSPF air-source heat pump) and “superior efficiency” (ductless, SEER 29.3, 14 HSPF mini-split heat pump) heat pump models against two weather data sets — a typical meteorological year, and 2011, which had extreme weather in both the winter and summer and highlighted blackout risks during severe heat for many regions.

Emissions were calculated using Texas’ power sector data from 2017. For energy cost calculations, IdeaSmiths used 10.93 cents per kilowatt-hour for electricity and 8.4 cents per therm for natural gas.

Nothing the grid can't handle
Rhodes and White modeled six scenarios. All the scenarios resulted in annual household utility bill savings — including the two in which annual electricity demand increased — ranging from $57.82 for the standard efficiency heat pump and typical meteorological year to $451.90 for the high-efficiency heat pump and 2011 extreme weather year.

“For the average home, it was cheaper to switch. It made economic sense today to switch to a relatively high-efficiency heat pump,” said Rhodes. “Electricity bills would go up, but gas bills can go down.”

All the scenarios found carbon savings too, with CO2 reductions ranging from 2.6 million metric tons with a standard efficiency heat pump and typical meteorological year to 13.8 million metric tons with the high-efficiency heat pump in 2011-year weather.

Peak electricity demand in Texas would shift from summer to winter. Because heat pumps provide both high-efficiency space heating and cooling, in the scenario with “superior efficiency” heat pumps, the summer peak drops by nearly 24 percent to 54 gigawatts compared to ERCOT’s 71-gigawatt 2016 summer peak, even as recurring strains on the Texas power grid during extreme conditions persist.

The winter peak would increase compared to ERCOT’s 66-gigawatt 2018 winter peak, up by 22.73 percent to 81 gigawatts with standard efficiency heat pumps and up by 10.6 percent to 73 gigawatts with high-efficiency heat pumps.

“The grid could evolve to handle this. This is not a wholesale rethinking of how the grid would have to operate,” said Rhodes.

He added, “There would be some operational changes if we went to a winter-peaking grid. There would be implications for when power plants and transmission lines schedule their downtime for maintenance. But this is not beyond the realm of reality.”

And because Texas’ wind power generation is higher in winter, a winter peak would better match the expected higher load from all-electric heating to the availability of zero-carbon electricity.

A conservative estimate
The study presented what are likely conservative estimates of the potential for heat pumps to reduce carbon pollution and lower peak electricity demand, especially when paired with efficiency and demand response strategies that can flatten demand.

Electric heat pumps will become cleaner as more zero-carbon wind and solar power are added to the ERCOT grid, as utilities such as Tucson Electric Power phase out coal. By the end of 2018, 30 percent of the energy used on the ERCOT grid was from carbon-free sources.

According to the U.S. Energy Information Administration, three in five Texas households already use electricity as their primary source of heat, much of it electric-resistance heating. Rhodes and White did not model the energy use and peak demand impacts of replacing that electric-resistance heating with much more energy efficient heat pumps.

“Most of the electric-resistance heating in Texas is located in the very far south, where they don’t have much heating at all,” Rhodes said. “You would see savings in terms of the bills there because these heat pumps definitely operate more efficiently than electric-resistance heating for most of the time.”

Rhodes and White also highlighted areas for future research. For one, their study did not factor in the upfront cost to homeowners of installing heat pumps.

“More study is needed,” they write in the Pecan Street paper, “to determine the feasibility of various ‘replacement’ scenarios and how and to what degree the upgrade costs would be shared by others.”

Research from the Rocky Mountain Institute has found that electrification of both space and water heating is cheaper for homeowners over the life of the appliances in most new construction, when transitioning from propane or heating oil, when a gas furnace and air conditioner are replaced at the same time, and when rooftop solar is coupled with electrification, aligning with broader utility trends toward electrification.

More work is also needed to assess the best way to jump-start the market for high-efficiency all-electric heating. Rhodes believes getting installers on board is key.

“Whenever a homeowner’s making a decision, if their system goes out, they lean heavily on what the HVAC company suggests or tells them because the average homeowner doesn’t know much about their systems,” he said.

More work is also needed to assess the best way to jump-start the market for high-efficiency all-electric heating, and how utility strategies such as smart home network programs affect adoption too. Rhodes believes getting installers on board is key.

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Tesla Solar and Powerwall Discount offers a ~10% installation price cut amid PG&E blackouts, helping California homeowners with solar panels, battery storage, and backup power, while supporting renewable energy and resilient Supercharger infrastructure.

Key Points

A ~10% installation discount on Tesla solar panels and Powerwall batteries to boost backup power during PG&E blackouts.

✅ ~10% off installation for solar plus Powerwall

✅ Helps during PG&E shutoffs and wildfire mitigation

✅ Supports resilience, backup power, and EV charging

Pacific Gas & Electric’s (PG&E) shutoff of electric supply to residents in California’s Bay Area has caught the attention of Tesla and SpaceX CEO Elon Musk, who, while highlighting a huge future for Tesla Energy in coming years, has announced that he would be offering a price reduction of approximately 10% for a solar panel and Tesla Powerwall battery installation. The discount will be available to anyone interested in powering their homes with solar energy, not just the 800,000 affected homes in the Bay Area.

After initially tweeting a link to Tesla’s Solar page on Tesla.com, Musk added that he would be offering a “~10% price reduction” in installation price for solar panels and Powerwall batteries for anyone, as California explores EVs for grid stability during emergencies, including those who have lost power in response to PG&E’s power shutoff. The blackout induced by the California-based power company is a part of an effort to reduce the possibility of wildfires. PG&E lines were the cause of multiple fires in the past, so the company is taking every necessary precaution to reduce the probability of its lines causing another fire in the future.

Tesla Solar recently offered a subscription program that would allow homeowners to lease panels for a fraction of the cost. The service is available to both residential and commercial customers, and costs as little as $45 a month in some states, particularly appealing in California where EV sales top 20% recently. The option to lease solar panels carries no long-term contracts that would tie down customers to a lengthy commitment.

Wildfires have always been an issue in California. Currently, fires are ripping through Los Angeles county, presumably caused by the winds of the Autumn season. The effort to reduce the environmental impact of forest fires in the state has been increasingly more prevalent over the years. But 2019 is a different story, underscoring that California may need a much bigger grid to support electrification, considering the previous year was noted as the deadliest wildfire season in California’s history. Over 8,500 fires destroyed over 1.89 million acres of land burned due to fires, causing the California Department of Forestry and Fire Protection to spend $432 million through the end of August 2018, according to the Associated Press.

In reaction to the news of the power shutoffs, Tesla added words of advice to vehicle affected owners on its app. The company posted a message encouraging drivers to keep their vehicles charged to 100% and highlighted that EVs can power homes for up to three days during outages, in order to prevent interruptions in driving. Those who are driving ICE vehicles are feeling the effects of the blackout too, as gas stations in California’s affected region have begun to shut down. Musk also tweeted that he would be installing Tesla Powerpacks at all Supercharger stations in the affected region, a move that can help ease strain on state power grids during outages, in order to allow owners to charge their vehicles.

In addition to the efforts that Tesla has already put into place, Musk plans to transition all Supercharger stations to solar power as soon as possible. But the sunny climate of California offers residents a great opportunity to move from gas and electric, even as some warn of a looming green car wreck in the state, to a more eco-friendly, sun-powered option. Tesla solar will completely eliminate power blackouts that are used to control wildfires in California.

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Birtle Transmission Line connects Manitoba Hydro to SaskPower, enabling 215 MW of clean hydroelectricity, improving grid reliability, supporting affordable rates, and advancing Green Infrastructure goals under the Investing in Canada Plan across Manitoba and Saskatchewan.

Key Points

A 46 km line moving up to 215 MW from Manitoba Hydro to SaskPower, improving reliability and supplying cleaner power.

✅ Enables interprovincial grid tie between Manitoba and Saskatchewan

✅ Delivers up to 215 MW of renewable hydroelectricity

✅ Supports affordable rates and lower GHG emissions

The federal government announced funding for the Birtle Transmission Line Monday morning.

The project will help Manitoba Hydro build a transmission line from Birtle South Station in the Municipality of Prairie View to the Manitoba–Saskatchewan border 46 kilometres northwest. Once completed, the new line will allow up to 215 megawatts of hydroelectricity to flow from the Manitoba Hydro power grid to the SaskPower power grid, similar to the Great Northern Transmission Line connecting Manitoba and Minnesota today.

The government said the transmission line would create a more stable energy supply, keep energy rates affordable and help Saskatchewan's efforts to reduce cumulative greenhouse-gas emissions in that province.

"The Government of Canada is proud to be working with Manitoba to support projects that create jobs and improve people's lives across the province. The Birtle Transmission Line will provide the region with reliable and greener energy, as seen with Canadian hydropower to New York projects, that will help protect our environment while laying the groundwork for clean economic growth," said Jim Carr, member of Parliament for Winnipeg South Centre, on behalf of Catherine McKenna, minister of infrastructure and communities.

The Government of Canada is investing more than $18.7 million, and the government of Manitoba is contributing more than $42 million in this project through the Green Infrastructure Stream of the Investing in Canada Plan, which also supports Atlantic grid improvements nationwide.

"The Province of Manitoba has one of the cleanest electricity grids in Canada and the world with over 99 per cent of our electricity generated from clean, renewable sources, rooted in Manitoba's hydro history," said Central Services Minister Reg Helwer. "The Made-in-Manitoba Climate and Green Plan is good not only for Manitoba but for Canada and globally."

Jay Grewal, president, and CEO of Manitoba Hydro said the funding is a great example of co-operation between the provincial and federal governments, including investments in smart grid technology that modernize local networks.

"We are very pleased that Manitoba Hydro's Birtle Transmission Project is among the first projects to receive funding under the Canada Infrastructure Program, and we would like to thank both levels of governments for recognizing the importance of the project as we strengthen ties with our neighbours in Saskatchewan, as U.S.-Canada transmission approvals advance elsewhere," said Grewal.

A spokesperson for Manitoba Hydro said it’s too early to say how many jobs will be created during construction, as final contracts have not yet been awarded.

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