Power potpourri helps Puget Energy profit

EU Renewable Energy Shift is cutting gas dependence as wind and solar expand, reshaping Europe's power mix, curbing emissions, and pressuring coal use amid a supply crisis and rising natural gas prices.

Key Points

An EU trend where wind and solar growth reduce gas reliance, curb coal, and lower power-sector emissions.

✅ Wind and solar displace gas in EU power mix

✅ Coal use rises as gas prices surge

✅ Emissions fall, but not fast enough for 1.5 C target

The European Union’s renewable energy sources are helping reduce its dependence on natural gas, under the current European electricity pricing framework, that’s still costing the region dearly.

Renewables growth has helped reduce the EU’s dependence on gas, as wind and solar outpaced gas across the bloc last year, which has soared in price since the middle of last year as the region grapples with a supply crisis that’s dealt blows to industries as well as ordinary consumers’ pockets. More than half of new renewable generation since 2019 has replaced gas power, according to a study by London-based climate think tank Ember, with the rest replacing mainly nuclear and coal sources.

“These are moments and paradigm shifts when governments and businesses start taking this much more seriously,” said Charles Moore, the lead author on the study, amid Covid-19 responses accelerating the transition across Europe. “The alternatives are available, they are cheaper, and they are likely to get even cheaper and more competitive. Renewables are now an opportunity, not a cost.”

The high price of gas relative to coal has meant utilities are leaning more on coal as a back-up for renewable generation, as stunted hydro and nuclear output has constrained low-carbon alternatives in parts of Europe, which risks the trajectory of Europe’s phase-out of the dirtiest fossil fuel. Last year, the EU’s coal use jumped disproportionately high relative to the rise in power generation as high gas prices boosted the relative profitability of burning coal instead.

Europe Coal Use Jumps as Costly Gas Turns Firms to Dirty Fuel
EU power generation from renewables reached a record high in 2021 of 547 terawatt-hours last year, accounting for an 11% increase compared to two years before, according to Ember’s Europe Electricity Review. It’s more than doubled in a decade, representing a 157% increase since 2011. 

Gas use declined last year for the second year in a row, as Europe explores storing electricity in gas pipelines to leverage existing infrastructure, reaching a level 8.1% lower than 2019. By contrast, coal use fell just 3.3% in the same period. Put simply, wind and solar did a great job of replacing coal during 2011-2019 but since then renewables have mostly been nudging out gas-fired power stations.

Ember’s Moore warned that the slowing phase-out of coal might require legislation to accelerate. The International Energy Agency recommends OECD countries cease using coal by the end of the decade to ensure alignment with the Paris Agreement target of keeping the world’s temperature increase below 1.5 Celsius, with renewables poised to eclipse coal globally by the mid-2020s lending momentum. 

“Europe can accelerate the phasing out of coal by building more renewable energy and faster,” said Felicia Aminoff,  an energy-transition analyst at BloombergNEF. “Wind and solar have no fuel costs, so as soon as you have made the initial investments to build wind and solar capacity it will start replacing generation that uses any kind of fuel, whether it is coal or gas.”

Overall, EU power sector emissions fell at less than half the rate required to hit that target, Ember’s report said. Spain produced the largest emissions reduction in the last two years, with renewables adding about 25 TWh and gas falling 15 TWh, and in Germany renewables topped coal and nuclear for the first time to support the shift. In contrast, heavy use of coal dragged down the bloc’s climate progress in Poland, where coal use rose about 8 TWh and renewables gained only 4 TWh.

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U.S. Natural Gas Power Demand is surging for electricity generation amid summer heat, with ERCOT, Texas grid reserves tight, EIA reporting coal and nuclear retirements, renewables intermittency, and pipeline expansions supporting combined-cycle capacity and prices.

Key Points

It is rising use of natural gas for power, driven by summer heat, plant retirements, and new combined-cycle capacity.

✅ ERCOT reserve margin 9%, below 14% target in Texas

✅ Gas share of U.S. power near 40-43% this summer

✅ Coal and nuclear retirements shift capacity to combined cycle

As the hot months linger, it will be natural gas that is leaned on most to supply the electricity that we need to run our air conditioning loads on the grid and keep us cool.

And this is surely a great and important thing: "Heat causes most weather-related deaths, National Weather Service says."

Generally, U.S. gas demand for power in summer is 35-40% higher than what it was five years ago, with so much more coming (see Figure).

The good news is regions across the country are expected to have plenty of reserves to keep up with power demand.

The only exception is ERCOT, covering 90% of the electric load in Texas, where a 9% reserve margin is expected, below the desired 14%.

Last summer, however, ERCOT’s reserve margin also was below the desired level, yet the grid operator maintained system reliability with no load curtailments.

Simply put, other states are very lucky that Texas has been able to maintain gas at 50% of its generation, despite being more than justified to drastically increase that.

At about 1,600 Bcf per year, the flatness of gas for power demand in Texas since 2000 has been truly remarkable, especially since Lone Star State production is up 50% since then.

Increasingly, other U.S. states (and even countries) are wanting to import huge amounts of gas from Texas, a state that yields over 25% of all U.S. output.

Yet if Texas justifiably ever wants to utilize more of its own gas, others would be significantly impacted.

At ~480 TWh per year, if Texas was a country, it would be 9th globally for power use, even ahead of Brazil, a fast growing economy with 212 million people, and France, a developed economy with 68 million people.

In the near-term, this explains why a sweltering prolonged heat wave in July in Texas, with a hot Houston summer setting new electricity records, is the critical factor that could push up still very low gas prices.

But for California, our second highest gas using state, above-average snowpack should provide a stronger hydropower for this summer season relative to 2018.

Combined, Texas and California consume about 25% of U.S. gas, with Texas' use double that of California.

Across the U.S., gas could supply a record 40-43% of U.S. electricity this summer even as the EIA expects solar and wind to be larger sources of generation across the mix

Our gas used for power has increased 35-40% over the past five years, and January power generation also jumped on the year, highlighting broad momentum.

Our gas used for power has increased 35-40% over the past five years. DATA SOURCE: EIA; JTC

Indeed, U.S. natural gas for electricity has continued to soar, even as overall electricity consumption has trended lower in some years, at nearly 10,700 Bcf last year, a 16% rise from 2017 and easily the highest ever.

Gas is expected to supply 37% of U.S. power this year, even as coal-fired generation saw a brief uptick in 2021 in EIA data, versus 27% just five years ago (see Figure).

Capacity wise, gas is sure to continue to surge its share 45% share of the U.S. power system.

"More than 60% of electric generating capacity installed in 2018 was fueled by natural gas."

We know that natural gas will continue to be the go-to power source: coal and nuclear plants are retiring, and while growing, wind and solar are too intermittent, geography limited, and transmission short to compensate like natural gas can.

"U.S. coal power capacity has fallen by a third since 2010," and last year "16 gigawatts (16,000 MW) of U.S. coal-fired power plants retired."

This year, some 2,000 MW of coal was retired in February alone, with 7,420 MW expected to be closed in 2019.

Ditto for nuclear.

Nuclear retirements this year include Pilgrim, Massachusetts’s only nuclear plant, and Three Mile Island in Pennsylvania.

This will take a combined ~1,600 MW of nuclear capacity offline.

Another 2,500 MW and 4,300 MW of nuclear are expected to be leaving the U.S. power system in 2020 and 2021, respectively.

As more nuclear plants close, EIA projects that net electricity generation from U.S. nuclear power reactors will fall by 17% by 2025.

From 2019-2025 alone, EIA expects U.S. coal capacity to plummet nearly 25% to 176,000 MW, with nuclear falling 15% to 83,000 MW.

In contrast, new combined cycle gas plants will grow capacity almost 30% to around 310,000 MW.

Lower and lower projected commodity prices for gas encourage this immense gas build-out, not to mention non-stop increases in efficiency for gas-based units.

Remember that these are official U.S. Department of Energy estimates, not coming from the industry itself.

In other words, our Department of Energy concludes that gas is the future.

Our hotter and hotter summers are therefore more and more becoming: "summers for natural gas"

Ultimately, this shows why the anti-pipeline movement is so dangerous.

"Affordable Energy Coalition Highlights Ripple Effect of Natural Gas Moratorium."

In April, President Trump signed two executive orders to promote energy infrastructure by directing federal agencies to remove bottlenecks for gas transport into the Northeast in particular, where New England oil-fired generation has spiked, and to streamline federal reviews of border-crossing pipelines and other infrastructure.

Builders, however, are not relying on outside help: all they know is that more U.S. gas demand is a constant, so more infrastructure is mandatory.

They are moving forward diligently: for example, there are now some 27 pipelines worth $33 billion already in the works in Appalachia.

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BC Hydro Clean Power Call 2024 seeks utility-scale renewable energy, including wind and solar, to meet rising electricity demand, advance clean goals, expand grid, and support Indigenous participation through competitive procurement and equity opportunities.

Key Points

BC Hydro's 2024 bid to add zero-emission wind and solar to meet rising demand and support Indigenous equity.

✅ Competitive procurement for utility-scale wind and solar

✅ Targets 3,000 GWh new greenfield by fiscal 2029

✅ Encourages Indigenous ownership and equity stakes

The Government of British Columbia (the Government or Province) has announced that BC Hydro would be moving forward with a call for new sources of 100 percent clean, renewable emission-free electricity, notably including wind and solar, even as nuclear power remains a divisive option among residents. The call, expected to launch in spring 2024, is BC Hydro's first call for power in 15 years and will seek power from larger scale projects.

Over the past decade, British Columbia has experienced a growing economy and population as well as a move by the housing, business and transportation sectors towards electrification, with industrial demand from LNG facilities also influencing load growth. As the Government highlighted in their recent announcement, the number of registered light-duty electric vehicles in British Columbia increased from 5,000 in 2016 to more than 100,000 in 2023. Zero-emission vehicles represented 18.1 percent of new light-duty passenger vehicles sold in British Columbia in 2022, the highest percentage for any province or territory.

Ultimately, the Province now expects electricity demand in British Columbia to increase by 15 percent by 2030. BC Hydro elaborated on the growing need for electricity in their recent Signposts Update to the British Columbia Utilities Commission (BCUC), and noted additions such as new generating stations coming online to support capacity. BC Hydro implemented its Signposts Update process to monitor whether the "Near-term actions" established in its 2021 Integrated Resource Plan continue to be appropriate and align with the changing circumstances in electricity demand. Those actions outline how BC Hydro will meet the electricity needs of its customers over the next 20 years. The original Near-term actions focused on demand-side management and not incremental electricity production.

In its Update, BC Hydro emphasized that increased use of electricity and decreased supply, along with episodes of importing out-of-province fossil power during tight periods, has advanced the forecast of the province's need for additional renewable energy by three years. Accordingly, BC Hydro has updated its 2021 Integrated Resource Plan to, among other things:

accelerate the timing of several Near-term actions on energy efficiency, demand response, industrial load curtailment, electricity purchase agreement renewals and utility-scale batteries; and
add new Near-term actions for BC Hydro to acquire an additional 3,000 GWh per year of new clean, renewable energy from greenfield facilities in the province able to achieve commercial operation as early as fiscal 2029, as well as approximately 700 GWh per year of new clean, renewable energy from existing facilities prior to fiscal 2029.
The Province's predictions align with Canada Energy Regulator's (CER) "Canada's Energy Future 2023" flagship report (Report) released on June 20, 2023. The Report, which looks at Canadians' possible energy futures, includes two long-term scenarios modelled on Canada reaching net-zero by 2050. Under either scenario, the electricity sector is predicted to serve as the cornerstone of the net-zero energy system, with examples such as Hydro-Quebec's decarbonization strategy illustrating this shift as it transforms and expands to accommodate increasing electricity use.

Key Details of the Call
Though not finalized, the call for power will be a competitive process, with the exact details to be designed by BC Hydro and the Province, incorporating input from the recently-formed BC Hydro Task Force made up of Indigenous communities, industry and stakeholders. This is a shift from previous calls for power, which operated as a continuous-intake program with a standing offer at a fixed rate, after projects like the Siwash Creek project were left in limbo.

Drawing on advice from Indigenous and external energy experts, the Province seeks to advance Indigenous ownership and equity interest opportunities in the electricity sector, potentially with minimum requirements for Indigenous participation in new projects to be a condition of the competitive process. The Province has also committed $140 million to the B.C. Indigenous Clean Energy Initiative (BCICEI) to support Indigenous-led power projects and their ability to respond to future electricity demand, facilitating their ability to compete in the call for power, despite their smaller size.

BC Hydro expects to initiate the call in spring 2024, with the goal of acquiring new sources of electricity as early as 2028, even as clean electricity affordability features prominently in Ontario's election discourse.

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Kentucky Coal Wage Protection Bill strengthens performance bond enforcement, links Energy and Environment Cabinet and Labor Cabinet notifications, addresses Blackjewel bankruptcy fallout, safeguards unpaid miners, ties mining permits to payroll bonds, penalizes violators via revocations.

Key Points

A Kentucky plan to enforce wage bonds and revoke mining permits to protect miners after bankruptcies.

✅ Requires wage bonds for firms under 5 years

✅ Links Energy and Environment Cabinet and Labor Cabinet

✅ Violators face permit revocation in 90 days

Following the high-profile bankruptcy of a coal company that left hundreds of Kentucky miners with bad checks last month, Sen. Johnny Ray Turner (D-Prestonsburg) said he will pre-file a bill Thursday aimed at closing a loophole that allowed the company to operate in violation of state law.

The bill would also compel state agencies to determine whether other companies are currently in violation of the law, and could revoke mining permits if the companies don't comply.

Turner's bill would amend an already-existing law that requires coal and construction companies that have been operating in Kentucky for less than five years to post a performance bond to protect wages if the companies cease their operations.

Blackjewel LLC., which employed hundreds of miners in Eastern Kentucky, failed to post that bond. When it shut its mines down and filed for bankruptcy last month, it left hundreds of miners without payment for 3 weeks and one day of work.

The bond issue has sparked criticism from various state officials, including Attorney General Andy Beshear, who said Tuesday that he would investigate whether other companies are currently in violation, similar to an external investigation of utility workers in another jurisdiction.

Blackjewel issued cold checks to its employees June 28, and when the checks bounced days later, many employees were left with bank accounts overdrawn by more than $1,000. The bankruptcy left many miners and their families with concerns over upcoming bill and mortgage payments, and, as unpaid days off at utilities elsewhere show, the strain on workers can be severe, and fostered a ongoing protest that blocked a train hauling coal from one of the company's Harlan County mines.

Blackjewel had been operating in Kentucky for about two years before it filed for bankruptcy, so it should have paid the performance bond, according to state law.

David A. Dickerson, the Kentucky Labor Cabinet Secretary, said the law as it's currently written does not set up any mechanism that notifies the cabinet, or provides comparable public reporting at large utility projects elsewhere, when a company opens in Kentucky that is supposed to pay the bond.

That allowed Blackjewel to operate for two years without any protection for workers before it closed its mines. Had the company posted the bond according to state law, miners likely would have been paid for the work they had already completed, officials said.

The law requires companies to set aside enough money to cover payroll for four weeks.

Turner's bill would compel the state Energy and Environment Cabinet to notify the Labor Cabinet's Department of Workplace Standards of any application for a mining permit from a company that has been doing business in Kentucky for less than five years.

It also compels the EEC to notify the Labor Cabinet of any companies that already have permits that are subject to the bond.

"It should have already been that way, but I'm happy so our children don't have to go through this," said Jeff Willig, a former Blackjewel miner who helped launch the protest at the railroad.

Willig said he and other miners will continue to block the tracks until they receive payment for their past work.

Any company currently operating in violation of the law would have 90 days to become compliant before its mining permits are revoked. New companies that are applying for permits will be required post the bond before permits are issued.

"Hopefully it will take care of the loopholes that had been exploited by Blackjewel," Turner said.

The bill will be taken up by the legislature when it returns to session in January. It would also cover attorneys' fees if workers are forced to sue their employer to cover wages, underscoring broader worker safety concerns during health emergencies.

Turner said he has reached out to Republican leadership in the Senate, and expects the bill to have bipartisan support come January.

Turner announced the legislation at a press conference in Harlan, the county with the highest population of Blackjewel employees affected by the bankruptcy, and as prolonged utility outages after tornadoes have strained other Kentucky communities.

State rep. Angie Hatton (D-Whitesburg) was also in attendance, along with rep. Chris Fugate (R-Chavies) and state Sen. Morgan McGarvey (D-Louisville).

Hatton said the bankruptcy has had serious economic impact throughout Eastern Kentucky, including in Letcher County, which is home to more than 130 former Blackjewel workers.

"This is something that has done a lot of damage to Eastern Kentucky," Hatton said.

Hatton plans to file the same bill in the state House of Representatives.

Fugate commended community members in Harlan County and elsewhere who have banded together in support of the miners by donating children's clothing, school supplies, food and other goods, while other regions have created a coal transition fund to help displaced workers.

Mosley called the bankruptcy "totally unprecedented" and said the current performance bond law, which has been on-the-books since 1986, lacked the enforcement necessary to protect miners in bankruptcies like Blackjewel's, even as a workplace safety fine in another case shows regulatory consequences in other industries.

"There was a law, there wasn't good enough process," Mosley said.

Blackjewel received court approval to sell many of its mines last month, including many in Kentucky, to Kopper Glo Mining, LLC.

As part of the sale agreement, Kopper Glo said it would pay $450,000 to cover the past wages of Blackjewel miners, and collect a per ton fee accumulating up to $550,000 that it will also contribute to pay back wages.

That total $1 million is less than half of all back wages owed to Blackjewel miners, but attorneys who filed a class action suit against the company said miners have a priority lien on the purchase price. That could allow former Blackjewel employees to make good on their back wages as bankruptcy proceedings continue.

Mosley said he spoke with a Kopper Glo official Thursday, who said the company is working to re-open the mines as quickly as possible. The official did not give an exact timeline.

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Electrical Grounding and Bonding NEC 250 Training equips electricians with Article 250 expertise, OSHA compliance knowledge, lightning protection strategies, and low-impedance fault current path design for safer industrial, commercial, and institutional power systems.

Key Points

Live NEC 250 course on grounding and bonding, covering safety, testing, and OSHA-compliant design.

✅ Interprets NEC Article 250 grounding and bonding rules

✅ Designs low-impedance fault current paths for safety

✅ Aligns with OSHA, lightning protection, and testing best practices

The Electricity Forum is organizing a series of live online Electrical Grounding and Bonding - NEC 250 training courses this Fall:

• September 8-9 , 2020 - 10:00 am - 4:30 pm ET
• October 29-30 , 2020 - 10:00 am - 4:30 pm ET
• November 23-24 , 2020 - 10:00 am - 4:30 pm ET

This interactive 12-hour live online instructor-led  Grounding and Bonding and the NEC Training course takes an in-depth look at Article 250 of the National Electrical Code (NEC) and is designed to give students the correct information they need to design, install and maintain effective electrical grounding and bonding systems in industrial, commercial and institutional power systems, with substation maintenance training also relevant in many facilities.

One of the most important AND least understood sections of the NEC is the section on Electrical Grounding, where resources like grounding guidelines can help practitioners navigate key concepts.

No other section of the National Electrical Code can match Article 250 (Grounding and Bonding) for confusion that leads to misapplication, violation, and misinterpretation. It's generally agreed that the terminology used in Section 250 has been a source for much confusion for industrial, commercial and institutional electricians. Thankfully, this has improved during the last few revisions to Article 250.

Article 250 covers the grounding requirements for providing a path to the earth to reduce overvoltage from lightning, with lightning protection training providing useful context, and the bonding requirements for a low-impedance fault current path back to the source of the electrical supply to facilitate the operation of overcurrent devices in the event of a ground fault.

Our Electrical Grounding Training course will address all the latest changes to  the Electrical Grounding rules included in the NEC, and relate them to VFD drive training considerations for modern systems.

Our course will cover grounding fundamentals, identify which grounding system tests can prevent safety and operational issues at your facilities, and introduce related motor testing training topics, and details regarding which tests can be conducted while the plant is in operation versus which tests require a shutdown will be discussed. 

Proper electrical grounding and bonding of equipment helps ensure that the electrical equipment and systems safely remove the possibility of electric shock, by limiting the voltage imposed on electrical equipment and systems from lightning, line surges, unintentional contact with higher-voltage lines, or ground-fault conditions. Proper grounding and bonding is important for personnel protection, with electrical safety tips offering practical guidance, as well as for compliance with OSHA 29 CFR 1910.304(g) Grounding.

It has been determined that more than 70 per cent of all electrical problems in industrial, commercial and institutional power systems, including large projects like the New England Clean Power Link, are due to poor grounding, and bonding errors. Without proper electrical grounding and bonding, sensitive electronic equipment is subjected to destruction of data, erratic equipment operation, and catastrophic damage. This electrical grounding and bonding training course will National Electrical Code.

Complete course details here:

https://electricityforum.com/electrical-training/electrical-grounding-nec

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PG&E Wildfire Assistance Program offers court-approved aid and emergency grants for Northern California wildfires and Camp Fire victims, covering unmet needs, housing, and essentials; apply online by November 15, 2019 under Chapter 11-funded eligibility.

Key Points

A $105M, court-approved aid fund offering unmet-needs payments and emergency support for 2017-2018 wildfire victims.

✅ $5,000 Basic Unmet Needs per household, self-certified

✅ Supplemental aid for extreme circumstances after basic grants

✅ Apply online; deadline November 15, 2019; identity required

Beginning today, August 15, 2019, those displaced by the 2017 Northern California wildfires and 2018 Camp fire can apply for aid through an independently administered Wildfire Assistance Program funded by Pacific Gas and Electric Company (PG&E). PG&E’s $105 million fund, approved by the judge in PG&E’s Chapter 11 cases and related bankruptcy plan, is intended to help those who are either uninsured or need assistance with alternative living expenses or other urgent needs. The court-approved independent administrator is set to file the eligibility criteria as required by the court and will open the application process.

“Our goal is to get the money to those who most need it as quickly as possible. We will prioritize wildfire victims who have urgent needs, including those who are currently without adequate shelter,” said Cathy Yanni, plan administrator. Yanni is partnering with local agencies and community organizations to administer the fund, and PG&E also supports local communities through property tax contributions to counties.

“We appreciate the diligent work of the fund administrator in quickly establishing a way to distribute these funds and ensuring the program supports those with the most immediate needs. PG&E is focused on helping those impacted by the devastating wildfires in recent years and strengthening our energy system to reduce wildfire risks and prevent utility-caused catastrophic fires. We feel strongly that helping these communities now is the right thing to do,” said Bill Johnson, CEO and President of PG&E Corporation.

Applicants can request a “Basic Unmet Needs” payment of $5,000 per household for victims who establish basic eligibility requirements and self-certify that they have at least $5,000 of unmet needs that have not been compensated by the Federal Emergency Management Agency (FEMA). Payments are to support needs such as water, food, prescriptions, medical supplies and equipment, infant formula and diapers, personal hygiene items, and transportation fuels beyond what FEMA covered in the days immediately following the declared disasters, aligning with broader health and safety actions the company has taken.

Those who receive basic payments may also qualify for a “Supplemental Unmet Needs” payment. These funds will be available only after “Basic Unmet Needs” payments have been issued. Supplemental payments will be available to individuals and families who currently face extreme or extraordinary circumstances as compared to others who were impacted by the 2017 and 2018 wildfires, including areas affected by power line-related fires across California.

To qualify for the payments, applicants’ primary residence must have been within the boundary of the 2017 Northern California wildfires or the 2018 Camp fire in Butte County. Applicants also must establish proof of identity and certify that they are not requesting payments for an expense already paid for by FEMA.

Applicants can find more information and apply for assistance at https://www.norcalwildfireassistanceprogram.com/. The deadline to file for aid is November 15, 2019.

The $105 million being provided by PG&E was made available from the company’s cash reserves. PG&E will not seek cost recovery from its customers, and its rates are set to stabilize in 2025 according to recent guidance.

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