Electric utility may give green option: Renewable energy plan carries fee at FirstEnergy

La Romaine Hydroelectric Complex anchors Quebec's hydropower expansion, showcasing Hydro-Québec ingenuity, clean energy, electrification, and grid capacity gains along the North Shore's Romaine River to power industry and nearly 470,000 homes.

Key Points

A four-station, $7.4B hydro project on Quebec's Romaine River producing 8 TWh a year for electrification and industry.

✅ Generates 8 TWh yearly, powering about 470,000 homes

✅ Largest Quebec hydro build since James Bay project

✅ Key to clean energy, grid capacity, and electrification

Quebec Premier François Legault has inaugurated the la Romaine hydroelectric complex on the province's North Shore.

The newly inaugurated Romaine hydroelectric complex could serve as a model for future projects, such as the Carillon Generating Station investment now planned in the province, Legault said.

"It brings me a lot of pride. It is truly the symbol of Quebec ingenuity," he said as he opened the vast power plant.

Legault was accompanied at today's event by Jean Charest, who was Quebec premier when construction began in 2009, as well as Hydro-Québec president and CEO Michael Sabia. 

La Romaine is comprised of four power stations and is the largest hydro project constructed in the province since the Robert Bourassa generation facility, which was commissioned in 1979. It is the biggest hydro installation since the James Bay project, bolstering Hydro-Québec's hydropower capacity across the grid today.

The construction work for Romaine-4 was supposed to finish in 2020, but it was delayed the COVID-19 pandemic, the death of four workers due to security flaws and soil decomposition problems. 

The $7.4-billion la Romaine complex can produce eight terawatt hours of electricity per year, enough to power nearly 470,000 homes.

It generates its power from the Romaine River, located north of Havre-St-Pierre, Que., near the Labrador border, where long-standing Newfoundland and Labrador tensions over Quebec's projects sometimes resurface today.

Legault said that Quebec still doesn't have enough electricity to meet demand from industry, including recent allocations of electricity for industrial projects across the province, and Quebecers need to consider more ways to boost the province's ability to power future projects. The premier has said previously that demand is expected to surge by an additional 100 terawatt-hours by 2050 — half the current annual output of the provincially owned utility.

Legault's environmental plan of reducing greenhouse gases and achieving carbon neutrality by 2050 hinges on increased electrification and a strategy to wean off fossil fuels provincewide, so the electricity needs for transport and industry will be massive.

An updated strategic plan from Hydro-Quebec will be presented in November outlining those needs, president and CEO Michael Sabia told reporters on Thursday, after recent deals with NB Power underscored interprovincial demand.

Legault said the report will trigger a broader debate on energy transition and how the province can be a leader in the green economy. He said he wasn't ruling out any potential power sources — except for a return to nuclear power at this stage.

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Hydro One CEO Salary shapes debate on Ontario electricity costs, executive compensation, sunshine list transparency, and public disclosure rules, as officials argue pay is not driving planned hydro rate cuts for consumers.

Key Points

Hydro One CEO pay disclosed in public filings, central to debates on Ontario electricity rates and transparency.

✅ 2016 compensation: $4.5M (salary + bonuses)

✅ Excluded from Ontario's sunshine list after privatization

✅ Government says pay won't affect planned hydro rate cuts

The $4.5 million in pay received by Hydro One's CEO is not a factor in the government's plan to cut electricity costs for consumers, an Ontario cabinet minister said Thursday amid opposition concerns about the executive's compensation and wider sector pressures such as Manitoba Hydro's rising debt in other provinces.

Treasury Board President Liz Sandals made her comments on the eve of the release of the province's so-called sunshine list.

The annual disclosure of public-sector salaries over $100,000 will be released Friday, but Hydro One salaries such as that of company boss Mayo Schmidt won't be on it.Though the government still owns most of Hydro One — 30 per cent has been sold — the company is required to follow the financial disclosure rules of publicly traded companies, which means disclosing the salaries of its CEO, CFO and next three highest-paid executives, and financial results such as a Q2 profit decline in filings.

New filings show that Schmidt was paid $4.5 million in 2016 — an $850,000 salary plus bonuses — and those top five executives were paid a total of about $11.7 million. 

"Clearly that's a very large amount," said Sandals. Sandals wouldn't say whether or not she thought the pay was appropriate at a time when the government is trying to reduce system costs and cut people's hydro bills.

Mayo Schmidt, President & CEO of Hydro One Limited and Hydro One Inc. (Hydro One )

But she suggested the CEO's salary was not a factor in efforts to bring down hydro prices, even as Hydro One shares fell after a leadership shakeup in a later period. "The CEO salary is not part of the equation of will 'we be able to make the cut,"' she said. "Regardless of what those salaries are, we will make a 25-per-cent-off cut." The cut coming this summer is actually an average of 17 per cent -- the 25-per-cent figure factors in an earlier eight-per-cent rebate.

NDP Leader Andrea Horwath, who has proposed to make hydro public again in Ontario, said the executive salaries are relevant to cutting hydro costs.

"All of this is cost of operating the electricity system, it's part of the operating of Hydro One and so of course those increased salaries are going to impact the cost of our electricity," she said.

Schmidt was appointed Aug. 31, 2015, and in the last four months of that year earned $1.3 million, but the former CEO was paid $745,000 in 2014. About 3,800 workers were paid over $100,000 that year, none of whom will be on the sunshine list this year.

Progressive Conservative energy critic Todd Smith has a private member's bill that would put Hydro One salaries back on the list, amid investor concerns about Hydro One that cite too many unknowns.

"The Wynne Liberals don't want the people of Ontario to know that their rates have helped create a new millionaire's club at Hydro One," Smith said. "Hydro One is still under the majority ownership of the public, but Premier Kathleen Wynne has removed these salaries from the public's watchful eye."

The previous sunshine list showed 115,431 people were earning more than $100,000 — an increase of nearly 4,000 people despite the fact 3,774 Hydro One workers were not on the list for the first time.

Tom Mitchell, the former CEO at Ontario Power Generation who resigned last summer, topped the 2015 list at $1.59 million.

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Advanced Nuclear Reactors redefine nuclear energy with SMRs, diverse fuels, passive safety, digital control rooms, and flexible heat and power, pairing veteran operator expertise with cost-efficient, carbon-free electricity for a resilient grid.

Key Points

SMR-based advanced reactors with passive cooling and digital controls deliver flexible power and process heat.

✅ Veteran operators transfer proven safety culture and risk management.

✅ SMRs, passive safety, and digital controls simplify operations.

✅ Flexible output: electricity, process heat, and grid support.

Advanced reactors will break the mold of what we think next-gen nuclear power can accomplish: some will be smaller, some will use different kinds of fuel and others will do more than just make electricity. This new technology may seem like uncharted waters, but when operators, technicians and other workers start up the first reactors of the new generation, they will bring with them years of nuclear experience to run machines that have been optimized with lessons from the current fleet.

While advanced reactors are often portrayed as the future of nuclear energy, and atomic energy is heating up across markets, its our current plants that have paved the way for these exciting innovations and which will be workhorses for years to come.

Reactor Veterans Bring Their Expertise to New Designs

Many of the workers who will operate the next generation of reactors come from a nuclear background. Even though the design of an advanced reactor may be different, the experience and instincts these operators have gained from working at the current fleet will help new plants get off to a more productive start.

They have a questioning attitude; they are always exploring what could go wrong and always understanding the notion of risk management in nuclear operations, whether its the oldest design or the newest design, said Chip Pardee, the president of Terrestrial Energy USA, who is the former chief operating officer at two nuclear utilities, Exelon Corp. and the Tennessee Valley Authority.

They have respect for the technology and a bias towards conservative decision-making.

Jhansi Kandasamy, vice president of engineering at GE Hitachi Nuclear Energy, agrees. She said that the presence of industry veterans will benefit the new modelslike the 300 megawatt boiling water reactor her company is developing.

From the beginning, a new reactor will have people who have touched it, worked on it, and experienced it, she said.

Theyre going to be able to tell you if something doesnt look right, because theyve lived through it.

Experience Informs New Reactor Design

Advanced reactors are designed by engineers who are fully familiar with existing plants and can use that experience to optimize the new ones, like a family building a house and wanting the kitchen just so. New reactors will be simpler to operate because of insights gained from years of operations of the current fleet, and some designs even integrate molten salt energy storage to enhance flexibility.

NuScale Power LLC, for example, has a very different design from the current fleet amid an advanced nuclear push that is reshaping development: up to 12 small reactorsinstead of one or two large reactorsmanaged from a single digital control roominstead of one full of analog switches and dials. When the company designed its control room, it brought in industry veterans who had collectively worked at more than two dozen nuclear plants.

The experts that NuScale brought in critiqued everything, even down to the shape of the symbols on the computer screens to make them easier to read for operators who sometimes need to quickly interpret lots of incoming data. The control panels for NuScales small modular reactor (SMR) present information according to its importance and automatically call up appropriate procedures for operators.

Many advanced reactors are also smaller than those currently operating, which makes their components simpler and less expensive. Kandasamy pointed out that the giant mechanical pumps in todays reactors generate a lot of heat and require a lot of supporting systems, including air conditioning in the rooms that house them.

GE Hitachis SMR design relies more on passive cooling so it needs fewer pumps, and those that remain use magnets, so they generate less heat. Fewer, smaller pumps means a smaller building and less cost.

Advanced Nuclear Will Further the Work of Current Reactors

Advanced reactors promise improved flexibility and the ability to do more kinds of work, including nuclear beyond electricity applications, to displace carbon and stabilize the climate. And they will continue nuclear energys legacy of providing reliable, carbon-free electricity, as a recent new U.S. reactor startup illustrates in practice. As new designs come on line over the next decade, we will continue to rely on operating plants which provide nearly 55 percent of the countrys carbon-free electricity.

The world will need all the carbon-free generation it can get for many years to come, as companies, states and countries aim for zero emissions by mid-century and pursue strategies like the green industrial revolution to accelerate deployment. That means it will need wind, solar, advanced reactors and current plants.

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EV Flood Fire Risks highlight climate change impacts, lithium-ion battery hazards, water damage, post-submersion inspection, first responder precautions, manufacturer safeguards, and insurance considerations for extreme weather, flood-prone areas, and hurricane aftermaths.

Key Points

Water-exposed EV lithium-ion batteries may ignite later, requiring inspection, isolation, and trained responders.

✅ Avoid driving through floodwaters; park on high ground.

✅ After submersion, isolate vehicle; seek qualified inspection.

✅ Inform first responders and insurers about EV water damage.

As climate change intensifies the frequency and severity of extreme weather events, concerns about electric vehicle (EV) safety in flood-prone areas have come to the forefront. Recent warnings from officials regarding the risks of electric vehicles catching fire due to flooding from Hurricane Idalia underscore the need for heightened awareness and preparedness among consumers and emergency responders, as well as attention to grid reliability during disasters.

The alarming incidents of EVs igniting after being submerged in floodwaters have raised critical questions about the safety of these vehicles during severe weather conditions. While electric vehicles are often touted for their environmental benefits and lower emissions, it is crucial to understand the potential risks associated with their battery systems when exposed to water, even as many drivers weigh whether to buy an electric car for daily use.

The Risks of Submerging Electric Vehicles

Electric vehicles primarily rely on lithium-ion batteries, which can be sensitive to water exposure. When these batteries are submerged, they risk short-circuiting, which may lead to fires. Unlike traditional gasoline vehicles, where fuel may leak out, the sealed nature of an EV’s battery can create hazardous situations when compromised. Experts warn that even after water exposure, the risk of fire can persist, sometimes occurring days or weeks later.

Officials emphasize the importance of vigilance in flood-prone areas, including planning for contingencies like mobile charging and energy storage that support recovery. If an electric vehicle has been submerged, it is crucial to have it inspected by a qualified technician before attempting to drive it again. Ignoring this can lead to catastrophic consequences not only for the vehicle owner but also for surrounding individuals and properties.

Official Warnings and Recommendations

In light of these dangers, safety officials have issued guidelines for electric vehicle owners in flood-prone areas. Key recommendations include:

1. Avoid Driving in Flooded Areas: The most straightforward advice is to refrain from driving through flooded streets, which can not only damage the vehicle but also pose risks to personal safety.

2. Inspection After Flooding: If an EV has been submerged, owners should seek immediate professional inspection. Technicians can evaluate the battery and electrical systems for damage and determine if the vehicle is safe to operate.

3. Inform Emergency Responders: In flood situations, informing emergency personnel about the presence of electric vehicles can help them mitigate risks during rescue operations, including firefighter health risks that may arise. First responders are trained to handle conventional vehicles but may need additional precautions when dealing with EVs.

Industry Response and Innovations

In response to rising concerns, electric vehicle manufacturers are working to enhance the safety features of their vehicles. This includes developing waterproof battery enclosures and improving drainage systems to prevent water intrusion, as well as exploring vehicle-to-home power for resilience during outages. Some manufacturers are also investing in research to improve battery chemistry, making them more resilient in extreme conditions.

The automotive industry recognizes that consumer education is equally important, particularly around utility impacts from mass-market EVs that affect planning. Manufacturers and safety organizations are encouraged to disseminate information about proper EV maintenance, the importance of inspections after flooding, and safety protocols for both owners and first responders.

The Role of Insurance Companies

As the risks associated with electric vehicle flooding become more apparent, insurance companies are also reassessing their policies. With increasing incidences of extreme weather, insurers are likely to adapt coverage options related to water damage and fire risks specific to electric vehicles. Policyholders should consult with their insurance providers to ensure they understand their coverage in the event of flooding.

Preparing for the Future

With the increasing adoption of electric vehicles, it is vital to prepare for the challenges posed by climate change and evolving state power grids capacity. Community awareness campaigns can play a significant role in educating residents about the risks and safety measures associated with electric vehicles during flooding events. By fostering a well-informed public, the likelihood of accidents and emergencies can be reduced.

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Manitoba-Minnesota Transmission Line connects Bipole III to Minnesota, raising export capacity, as NEB hearings weigh Indigenous rights, treaty obligations, environmental assessment, cumulative effects, and cross-border hydroelectric infrastructure impacts, land access, socio-economic concerns, and regulatory review.

Key Points

A cross-border hydro line linking Manitoba to Minnesota under review on Indigenous rights and environment concerns.

✅ Connects Bipole III to Minnesota to boost exports

✅ NEB hearings include Indigenous rights and treaty issues

✅ Environmental and access impacts debated in regulatory review

Concerned Indigenous groups asked the National Energy Board this week to take into consideration existing and future impacts and treaty rights, which have prompted a halt to Site C work elsewhere, when considering whether to OK a new hydro transmission line between Manitoba and Minnesota.

Friday was the last day of the oral traditional evidence hearings in Winnipeg on Manitoba Hydro's Manitoba-Minnesota Transmission project.

The international project will connect Manitoba Hydro's Bipole III transmission line to Minnesota and increase the province's electricity export capacity to 3185 MW from 2300 MW.

#google#

During the hearings Indigenous groups brought forward concerns and evidence of environmental degradation, echoing Site C dam opponents in other regions, and restricted access to traditional lands.

Ramona Neckoway, a member of the Nelson House First Nation, talked about her concern about the scope of Manitoba Hydro's application to the NEB.

"It's only concerned with a narrow 213 km corridor and thus it erases the histories, socio-economic impacts and the environmental degradation attached to this energy source," said Neckoway.

Prior to the hearings the board stated it did not intend to assess the environmental and socio-economic impacts of upstream or downstream facilities associated with electricity production, even as a utilities watchdog on Site C stability raised questions elsewhere.

However, the board did hear evidence from upstream and downstream affected communities despite objection from Manitoba Hydro lawyers.

"Manitoba Hydro objected to us being here, saying that we are irrelevant, but we are not irrelevant," said Elder Tommy Monias from Cross Lake First Nation.

Manitoba Hydro representative Bruce Owen said, "We respect the NEB hearing process and look forward to the input of all interested parties."

The hearings provided a rare opportunity for First Nations communities, similar to Ontario First Nations urging action, to voice their concerns about the line on a federal level.

"One of the hopes is that this project can't be built until a system-wide assessment is made," said Dr. Peter Kulchyski, an expert witness for the southern chiefs organization and professor of Native Studies at the University of Manitoba.

Hearings continue

The line is already under construction on the American side of the border as the NEB public hearings continue until June 22 with cross examinations and final arguments from Manitoba Hydro and intervenor groups.

The NEB's final decision on the Manitoba-Minnesota transmission line, amid an energy board delay recommendation, will be made before March 2019.

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California Net Zero Grid Investment will fuel electrification, renewable energy buildout, EV adoption, and grid modernization, boosting utilities, solar, and storage, while policy, IRA incentives, and transmission upgrades drive reliability and long-term rate base growth.

Key Points

Funding to electrify sectors and modernize the grid, scaling renewables, EVs, and storage to meet 2045 net zero goals.

✅ $370B over 22 years to meet 2045 net zero target

✅ Utilities lead gains via grid modernization and rate base growth

✅ EVs, solar, storage scale; IRA credits offset costs

$370 billion: That’s the investment Edison International CEO Pedro Pizarro says is needed for California’s power grid to meet the state’s “net zero” goal for CO2 emissions by 2045.

Getting there will require replacing fossil fuels with electricity in transportation, HVAC systems for buildings and industrial processes. Combined with population growth and data demand potentially augmented by artificial intelligence, that adds up to an 82 percent increase in electricity demand over 22 years, or 3 percent annually, and a potential looming shortage if buildout lags.

California’s plans also call for phasing out fossil fuel generation in the state, despite ongoing dependence on fossil power during peaks. And presumably, its last nuclear plant—PG&E Corp’s (PCG) Diablo Canyon—will be eventually be shuttered as well. So getting there also means trebling the state’s renewable energy generation and doubling usage of rooftop solar.

Assuming this investment is made, it’s relatively easy to put together a list of beneficiaries. Electric vehicles hit 20 percent market share in the state in Q2, even as pandemic-era demand shifts complicate load forecasting. And while competition from manufacturers has increased, leading manufacturers like Tesla TSLA -3% Inc (TSLA) can look forward to rising sales for some time—though that’s more than priced in for Elon Musk’s company at 65 times expected next 12 months earnings.

In the past year, California regulators have dialed back net metering through pricing changes affecting compensation, a subsidy previously paying rooftop solar owners premium prices for power sold back to the grid. That’s hit share prices of SunPower Corp (SPWR) and Sunrun Inc (RUN) quite hard, by further undermining business plans yet to demonstrate consistent profitability.

Nonetheless, these companies too can expect robust sales growth, as global prices for solar components drop and Inflation Reduction Act tax credits at least somewhat offset higher interest rates. And the combination of IRA tax credits and U.S. tariff walls will continue to boost sales at solar manufacturers like JinkoSolar Holding (JKS).

The surest, biggest beneficiaries of California’s drive to Net Zero are the utilities, reflecting broader utility trends in grid modernization, with investment increasing earnings and dividends. And as the state’s largest pure electric company, Edison has the clearest path.

Edison is currently requesting California regulators OK recovery over a 30-year period of $2.4 billion in losses related to 2017 wildfires. Assuming a amicable decision by early next year, management can then turn its attention to upgrading the grid. That investment is expected to generate long-term rate base growth of 8 percent at year, fueling 5 to 7 percent annual earnings growth through 2028 with commensurate dividend increases.

That’s a strong value proposition Edison stock, with trades at just 14 times expected next 12 months earnings. The yield of roughly 4.4 percent at current prices was increased 5.4 percent this year and is headed for a similar boost in December.

When California deregulated electricity in 1996, it required utilities with rare exceptions to divest their power generation. As a result, Edison’s growth opportunity is 100 percent upgrading its transmission and distribution grid. And its projects can typically be proposed, sited, permitted and built in less than a year, limiting risk of cost overruns to ensure regulatory approval and strong investment returns.

Edison’s investment plan is also pretty much immune to an unlikely backtracking on Net Zero goals by the state. And the company has a cost argument as well: Dr Pizarro cites U.S. Department of Energy and Department of Transportation data to project inflation-adjusted savings of 40 percent in California’s total customer energy bills from full electrification.

There’s even a reason to believe 40 percent savings will prove conservative. Mainly, gasoline currently accounts for a bit more than half energy expenditures. And after a more than 10-year global oil and gas investment drought, supplies are likely get tighter and prices possibly much higher in coming years.

Of course, those savings will only show up after significant investment is made. At this point, no major utility system in the world runs on 100 percent renewable energy, and California’s blackout politics underscore how reliability concerns shape deployment. And the magnitude of storage technology needed to overcome intermittency in solar and wind generation is not currently available let alone affordable, though both cost and efficiency are advancing.

Taking EVs from 20 to 100 percent of California’s new vehicle sales calls for a similar leap in efficiency and cost, even with generous federal and state subsidy. And while technology to fully electrify buildings and homes is there, economically retrofitting statewide is almost certainly going to be a slog.

At the end of the day, political will is likely to be as important as future technological advance for how much of Pizarro’s $370 billion actually gets spent. And the same will be true across the U.S., with state governments and regulators still by and large calling the shots for how electricity gets generated, transmitted and distributed—as well as who pays for it and how much, even as California’s exported policies influence Western markets.

Ironically, the one state where investors don’t need to worry about renewable energy’s prospects is one of the currently reddest politically. That’s Florida, where NextEra Energy NEE +2.8% (NEE) and other utilities can dramatically cut costs to customers and boost reliability by deploying solar and energy storage.

You won’t hear management asserting it can run the Sunshine State on 100 percent renewable energy, as utilities and regulators do in some of the bluer parts of the country. But by demonstrating the cost and reliability argument for solar deployment, NextEra is also making the case why its stock is America’s highest percentage bet on renewables’ growth—particularly at a time when all things energy are unfortunately becoming increasingly, intensely political.

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