Germany wants one million EVs by 2020

Smart Street Lighting NY delivers Syracuse-wide LED retrofits with smart controls, Wi-Fi, and sensors, saving $3.3 million annually and cutting nearly 8,500 tons of greenhouse gases, improving energy efficiency, safety, and maintenance.

Key Points

A NYPA-backed program replacing streetlights with LED and controls to cut costs and emissions across New York by 2025.

✅ Syracuse replaced 17,500 fixtures with LED and smart controls.

✅ Saves $3.3M yearly; cuts 8,500 tons CO2e; improves safety.

✅ NYPA financing and maintenance support enable Smart City sensors.

Governor Andrew M. Cuomo today announced the completed installation of energy-efficient LED streetlights throughout the City of Syracuse as part of the Governor's Smart Street Lighting NY program. Syracuse, through a partnership with the New York Power Authority, replaced all of its streetlights with the most comprehensive set of innovative Smart City technologies in the state, saving the city $3.3 million annually and reducing greenhouse gas emissions by nearly 8,500 tons a year--the equivalent of taking more than 1,660 cars off the road. New York has now replaced more than 100,000 of its streetlights with LED fixtures, reflecting broader state renewable ambitions across the country, a significant milestone in the Governor's goal to replace at least 500,000 streetlights with LED technology by 2025 under Smart Street Lighting NY.

Today's announcement directly supports the goals of the Climate Leadership and Community Protection Act, the most aggressive climate change law in the nation, through the increased use of energy efficiency, exemplified by Seattle City Light's program that helps customers reduce bills, to annually reduce electricity demand by three percent--equivalent to 1.8 million New York households--by 2025.

"As we move further into the 21st century, it's critical we make the investments necessary for building smarter, more sustainable communities and that's exactly what we are doing in Syracuse," Governor Cuomo said. "Not only is the Smart Street Lighting NY program reducing the city's carbon footprint, but millions of taxpayer dollars will be saved thanks to a reduction in utility costs. Climate change is not going away and it is these types of smart, forward-thinking programs which will help communities build towards the future."

The more than $16 million cutting-edge initiative, implemented by NYPA, includes the replacement of approximately 17,500 streetlights throughout the city with SMART, LED fixtures, improving lighting quality and neighborhood safety while saving energy and maintenance costs. The city's streetlights are now outfitted with SMART controls that provide programmed dimming ability, energy metering, fault monitoring, and additional tools for emergency services through on-demand lighting levels.

"The completion of the replacement of LED streetlights in Syracuse is part of our overall efforts to upgrade more than 100,000 streetlights across the state," Lieutenant Governor Kathy Hochul said. "The new lights will save the city $3.3 million annually, helping to reduce cost for energy and maintenance and reducing greenhouse gas emissions. These new light fixtures will also help to improve safety and provide additional tools for emergency services. The conversion of streetlights statewide to high-tech LED fixtures will help local governments and taxpayers save money, while increasing efficiency and safety as we work to build back better and stronger for the future."

NYPA provided Syracuse with a $500,000 Smart Cities grant for the project. The city utilized the additional funding to support special features on the streetlights that demonstrate the latest in Smart City technologies, focused on digital connectivity, environmental monitoring and public safety. These features are expected to be fully implemented in early 2021.

Connectivity: The city is planning to deploy exterior Wi-Fi at community centers and public spaces, including in neighborhoods in need of expanded digital network services.

Environmental Monitoring: Ice and snow detection systems that assist city officials in pinpointing streets covered in ice or snow and require attention to prevent accidents and improve safety. The sensors provide data that can tell the city where salt trucks and plows are most needed instead of directing trucks to drive pre-determined routes. Flood reporting and monitoring systems will also be installed.

Public Safety and Property Protection: Illegal dumping and vandalism detection sensors will be installed at strategic locations to help mitigate these disturbances. Vacant house monitoring will also be deployed by the city. The system can monitor for potential fires, detect motion and provide temperature and humidity readings of vacant homes. Trash bin sensors will be installed at various locations throughout the city that will detect when a trash bin is full and alert local officials for pick-up.

NYPA President and CEO Gil C. Quiniones said, "Syracuse is truly a pioneer in its exploration of using SMART technologies to improve public services and the Power Authority was thrilled to partner with the city on this innovative initiative. Helping our customers bring their streetlights into the future further advances NYPA's reputation as a first-mover in the energy-sector."

New York State Public Service Commission Chair John B. Rhodes said, "Governor Cuomo signed legislation making it easier for municipalities to purchase and upgrade their street lighting systems. With smart projects like these, cities such as Syracuse can install state-of-the-art, energy efficient lights and take control over their energy use, lower costs to taxpayers and protect the environment."

Mayor Ben Walsh said, "Governor Cuomo and the New York Power Authority have helped power Syracuse to the front of the pack of cities in the U.S., leveraging SMART LED lighting to save money and make life better for our residents. Because of our progress, even in the midst of a global pandemic, the Syracuse Surge, our strategy for inclusive growth in the New Economy, continues to move forward. Syracuse and all of New York State are well positioned to lead the nation and the world because of NYPA's support and the Governor's leadership."

To date, NYPA has installed more than 50,000 LED streetlights statewide, with more than 115,000 lighting replacements currently implemented. Some of the cities and towns that have already converted to LED lights, in collaboration with NYPA, include Albany, Rochester, and White Plains. In addition, the Public Service Commission, whose ongoing retail energy markets review informs consumer protections, in conjunction with investor-owned utilities around the state, has facilitated the installation of more than 50,000 additional LED lights.

The NYPA Board of Trustees, in support of the Smart Street Lighting NY program, authorized at its September meeting the expenditure of $150 million over the next five years to secure the services of Candela Systems in Hawthorne, D&M Contracting in Elmsford and E-J Electric T&D in Wallingford, Connecticut, while in other regions, city officials take a clean energy message to Georgia Power and the PSC to spur utility action. All three firms will work on behalf of NYPA to continue to implement LED lighting replacements throughout New York State to meet the Governor's goal of 500,000 LED streetlights installed by 2025.

Smart Street Lighting NY: Energy Efficient and Economically Advantageous

NYPA is working with cities, towns, villages and counties throughout New York to fully manage and implement a customer's transition to LED streetlight technology. NYPA provides upfront financing for the project, and during emergencies, New York's utility disconnection moratorium helps protect customers while payments to NYPA are made in the years following from the cost-savings created by the reduced energy use of the LED streetlights, which are 50 to 65 percent more efficient than alternative street lighting options.

Through this statewide street lighting program, NYPA's government customers are provided a wide-array of lighting options to help meet their individual needs, including specifications on the lights to incorporate SMART technology, which can be used for dozens of other functions, such as cameras and other safety features, weather sensors, Wi-Fi and energy meters.

To further advance the Governor's effort to replace existing New York street lighting, in 2019, NYPA launched a new maintenance service to provide routine and on-call maintenance services for LED street lighting fixtures installed by NYPA throughout the state, and during the COVID-19 response, New York and New Jersey suspended utility shut-offs to protect customers and maintain essential services. The new service is available to municipalities that have engaged NYPA to implement a LED street lighting conversion and have elected to install an asset management controls system on their street lighting system, reducing the number of failures and repairs needed after installation is complete.

To learn more about the Smart Street Lighting NY program, visit the program webpage on NYPA's website.

New York State's Nation-Leading Climate Plan

Governor Cuomo's nation-leading climate plan is the most aggressive climate and clean energy initiative in the nation, calling for an orderly and just transition to clean energy that creates jobs and continues fostering a green economy as New York State builds back better as it recovers from the COVID-19 pandemic. Enshrined into law through the CLCPA, New York is on a path to reach its mandated goals of economy wide carbon neutrality and achieving a zero-carbon emissions electricity sector by 2040, similar to Ontario's clean electricity regulations that advance decarbonization, faster than any other state. It builds on New York's unprecedented ramp-up of clean energy including a $3.9 billion investment in 67 large-scale renewable projects across the state, the creation of more than 150,000 jobs in New York's clean energy sector, a commitment to develop over 9,000 megawatts of offshore wind by 2035, and 1,800 percent growth in the distributed solar sector since 2011. New York's Climate Action Council is working on a scoping plan to build on this progress and reduce greenhouse gas emissions by 85 percent from 1990 levels by 2050, while ensuring that at least 40 percent of the benefits of clean energy investments benefit disadvantaged communities, and advancing progress towards the state's 2025 energy efficiency target of reducing on-site energy consumption by 185 TBtus.

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India Thermal Power Coal Imports surged 17.6% as CEA-monitored plants offset weaker CIL and SCCL supplies, driven by Saubhagya-led electricity demand, regional power deficits, and varied consumption across Uttar Pradesh, Bihar, Maharashtra, and Gujarat.

Key Points

Fuel volumes imported for Indian thermal plants, tracked by CEA, reflecting shifts in CIL/SCCL supply, demand, and regional power deficits.

✅ Imports up 17.6% as domestic CIL/SCCL deliveries lag targets

✅ Saubhagya-driven demand lifts generation in key beneficiary states

✅ Industrial slowdowns cut usage in Maharashtra, Tamil Nadu, Gujarat

The receipt of imported coal by thermal power plants, where plant load factors have risen, has shot up by 17.6 per cent during April-October. The coal import volumes refer to the power plants monitored by the Central Electricity Authority (CEA), and come amid moves to ration coal supplies as electricity demand surges, a power update report from CARE Ratings showed.

Imports escalated as domestic supplies by Coal India Ltd (CIL) and another state run producer- Singareni Collieries Company Ltd (SCCL) dipped in the period, after earlier shortages that have since eased in later months. Rate of supplies by the two coal companies to the CEA monitored power stations stood at 80.4 per cent, indicating a shortfall of 19.6 per cent against the allocated quantity.

According to the study by CARE Ratings, total coal supplied by CIL and SCCL to the power sector stood at 315.9 million tonnes (mt) during April-October as against 328.5 mt in the comparable period of last fiscal year.

The study noted that growth in power generation during the April-October 2019, with India now the third-largest electricity producer globally, was on account of higher demand from Pradhan Mantri Sahaj Bijli Har Ghar Yojana or Saubhagya Scheme beneficiary states. Providing connection to households in order to achieve 100% per cent electrification has in part helped the sector avert de-growth, as part of efforts to rewire Indian electricity and expand access.

Large states namely Uttar Pradesh, Bihar, Punjab, West Bengal and Rajasthan have recorded over five per cent growth in consumption of power. These states along with Odisha, Madhya Pradesh and Assam accounted for 75 per cent of the beneficiaries under the Saubhagya Scheme (Household Electrification Scheme). The ongoing economic downturn has led to a sharp fall in electricity demand from industrialised states. Maharashtra, which is also the largest power consuming state in India, recorded a decline in consumption of 5.6 per cent.

Other states namely Tamil Nadu, Telangana, Gujarat and Odisha too recorded fall in power consumed, echoing global dips in daily electricity demand seen later during the pandemic. These states house large clusters of mining, automobile, cement and other manufacturing industries, and a decline in these sectors led to fall in demand for power across these states. - The demand-supply gap or power deficit has remained at 0.6 per cent during the April-October 2019. North-East reported 4.8 per cent of power deficit followed by Northern Region at 1.3 per cent. Within Northern Region, Jammu & Kashmir and Uttar Pradesh accounted for 65 per cent and 30 per cent respectively of the regions power supply deficit.

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Port of Vancouver Wind Turbine Blades arrive from China for a Saskatchewan wind farm, showcasing record oversized cargo logistics, tandem crane handling, renewable energy capacity, and North America's longest blades from Goldwind.

Key Points

Record-length blades for a Canadian wind farm, boosting renewable energy and requiring heavy-lift logistics at the port.

✅ 27 blades unloaded via tandem cranes with cage supports

✅ 50 turbines headed to Assiniboia over 21 weeks

✅ Largest 250 ft blades to arrive; reduced CO2 vs coal

A set of 220-foot-long wind turbine blades arrived at the Port of Vancouver from China over the weekend as part a shipment bound for a wind farm in Canada, alongside BC generating stations coming online in the region.

They’re the largest blades ever handled by the port, and this summer, even larger blades will arrive as companies expand production such as GE’s blade factory in France to meet demand — the largest North America has ever seen.

Alex Strogen described the scene as crews used two tandem cranes to unload 27 giant white blades from the MV Star Kilimanjaro, which picked up the wind turbine assemblies in China. They were manufactured by Goldwind Co.

“When you see these things come off and put onto these trailers, it’s exceptional in the sheer length of them,” Strogen said. “It looks as long as an airplane.”

In fact, each blade is about as long as the wingspan of a Boeing 747.

Groups of longshoremen attached the cranes to each blade and hoisted it into the air and onto a waiting truck. Metal cage-like devices on both ends kept the blades from touching the ground. Once loaded onto the trucks, the blades and shaft parts head to a terminal to be unloaded by another group of workers.

Another fleet of trucks will drive the wind turbines, towers and blades to Assiniboia, Saskatchewan, Canada, over the course of 21 weeks. Potentia Renewables of Toronto is erecting the turbines on 34,000 acres of leased agriculture land, amid wind farm expansion in PEI elsewhere in the country, according to a news release from the Port of Vancouver.

Potentia’s project, called the Golden South Wind Project, will generate approximately 900,000 megawatt-hours of electricity. It also has greatly reduced CO2 emissions compared with a coal-fired plant, and complements tidal power in Nova Scotia in Canada’s clean energy mix, according to the news release.

The project is expected to be operating in 2021, similar to major UK offshore wind additions coming online.

The Port of Vancouver will receive 50 full turbines of two models for the project, as Manitoba invests in new turbines across Canada. In August, the larger of the models, with blades measuring 250 feet, will arrive. They’ll be the longest blades ever imported into any port in North America.

“It’s an exciting year for the port,” said Ryan Hart, chief external affairs officer.

The Port of Vancouver is following all the recommended safety precautions during the COVID-19 pandemic, including social distancing and face masks, Strogen said, with support from initiatives like Bruce Power’s PPE donation across Canada.
As for crews onboard the ships, the U.S. Coast Guard is the agency in charge, and it is monitoring the last port-of-call for all vessels seeking to enter the Columbia River, Hart wrote in an email.

Vessel masters on each ship are responsible for monitoring the health of the crew and are required to report sick or ill crew members to the USCG prior to arrival or face fines and potential arrest.

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UK 2-GW Substation strengthens National Grid power transmission in Kent, enabling offshore wind integration, voltage regulation, and grid modernization to meet rising electricity demand and support the UK energy transition with resilient, reliable infrastructure.

Key Points

National Grid facility in Kent that steps voltage, regulates power, and connects offshore wind to strengthen UK grid.

✅ Adds 2 GW capacity to meet rising electricity demand

✅ Integrates offshore wind farms into transmission network

✅ Improves reliability, voltage control, and grid resilience

The United Kingdom has strengthened its national power grid with the commissioning of a major new 2-gigawatt capacity substation in Kent. This massive project, a key part of the National Grid's ongoing efforts to modernize and expand power transmission infrastructure, including plans to fast-track grid connections across critical projects, will play a critical role in supporting the UK's energy transition and growing electricity demands.

What is a Substation?

Substations are vital components of electricity grids. They serve as connection points, transforming high voltage electricity from power plants to lower voltages suitable for homes and businesses. They also help to regulate voltage levels, and, where appropriate, interface with expanding HVDC technology initiatives, ensuring stable electricity delivery.  Modern substations often act as hubs, supporting the integration of renewable power sources with the main electricity network.

Why This Substation Is Important

The new 2-gigawatt capacity substation is significant for several reasons:

• Expanding Capacity: It adds significant capacity to the UK's grid, enabling the transmission of large amounts of electricity to where it's needed. This capacity boost is crucial for supporting growing electricity demand as the UK shifts its energy mix towards renewable sources.
• Integrating Renewables: The substation will aid in integrating substantial amounts of offshore wind power, as projects like the Scotland-England subsea link illustrate, helping the UK achieve its ambitious clean energy goals. Offshore wind farms are a booming source of renewable energy in the UK, and ensuring reliable connections to the grid is essential in maximizing their potential.
• Future-Proofing the Grid: The newly commissioned substation helps bolster the reliability and resilience of the UK's power transmission network, where reducing losses with superconducting cables could further enhance efficiency. It will play a key role in securing electricity supplies as older power plants are decommissioned and renewable energy sources become more dominant.

A Landmark Project

The commissioning of this substation is a major achievement for the National Grid, amid an independent operator transition underway in the sector, and UK energy infrastructure upgrades. The sheer scale of the project required extensive planning and collaboration with various stakeholders, underscoring the complexity of upgrading the nation's power grid to meet future needs.

The Path Towards a Cleaner Grid

The new substation is not an isolated project. It is part of a broader, multi-year effort by the National Grid to modernize and expand the country's power grid.  This entails building new transmission lines and urban conduits such as London's newest electricity tunnel now in service, investing in storage technologies, and adapting infrastructure to accommodate the shift towards distributed energy generation, where power is generated closer to the point of use.

Beyond Substations

While projects like the new 2-gigawatt substation are crucial, ensuring a successful energy transition requires more than just infrastructure upgrades. Continued support for renewable energy development, highlighted by recent offshore wind power milestones that demonstrate grid-readiness, investment in emerging energy storage solutions, and smart grid technology that leverages data for effective grid management are all important components of building a cleaner and more resilient energy future for the UK.

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Hydrogen Fuel Cell Crane Port of Vancouver showcases zero-emission RTG technology by DP World, TCA Electric, and partners, using hydrogen-electric fuel cells, battery energy storage, and regenerative capture to decarbonize container handling operations.

Key Points

A retrofitted RTG crane powered by hydrogen fuel cells, batteries, and regeneration to cut diesel use and CO2 emissions.

✅ Dual fuel cell system charges high-voltage battery

✅ Regenerative capture reduces energy demand and cost

✅ Pilot targets zero-emission RTG fleets by 2040

In a groundbreaking move toward sustainable logistics, TCA Electric, a Chilliwack-based industrial electrical contractor, is at the forefront of a pioneering hydrogen fuel cell crane project at the Port of Vancouver. This initiative, led by DP World in collaboration with TCA Electric and other partners, marks a significant step in decarbonizing port operations and showcases the potential of hydrogen technology in heavy-duty industrial applications.

A Vision for Zero-Emission Ports

The Port of Vancouver, Canada's largest port, has long been a hub for international trade. However, its operations have also contributed to substantial greenhouse gas emissions, even as DP World advances an all-electric berth in the U.K., primarily from diesel-powered Rubber-Tired Gantry (RTG) cranes. These cranes are essential for container handling but are significant sources of CO₂ emissions. At DP World’s Vancouver terminal, 19 RTG cranes account for 50% of diesel consumption and generate over 4,200 tonnes of CO₂ annually. 

To address this, the Vancouver Fraser Port Authority and the Province of British Columbia have committed to transforming the port into a zero-emission facility by 2050, supported by provincial hydrogen investments that accelerate clean energy infrastructure across B.C. This ambitious goal has spurred several innovative projects, including the hydrogen fuel cell crane pilot. 

TCA Electric’s Role in the Hydrogen Revolution

TCA Electric's involvement in this project underscores its expertise in industrial electrification and commitment to sustainable energy solutions. The company has been instrumental in designing and implementing the electrical systems that power the hydrogen fuel cell crane. This includes integrating the Hydrogen-Electric Generator (HEG), battery energy storage system, and regenerative energy capture technologies. The crane operates using compressed gaseous hydrogen stored in 15 pressurized tanks, which feed a dual fuel cell system developed by TYCROP Manufacturing and H2 Portable. This system charges a high-voltage battery that powers the crane's electric drive, significantly reducing its carbon footprint. 

The collaboration between TCA Electric, TYCROP, H2 Portable, and HTEC represents a convergence of local expertise and innovation. These companies, all based in British Columbia, have leveraged their collective knowledge to develop a world-first solution in the industrial sector, while regional pioneers like Harbour Air's electric aircraft illustrate parallel progress in aviation. TCA Electric's leadership in this project highlights its role as a key enabler of the province's clean energy transition. 

Demonstrating Real-World Impact

The pilot project began in October 2023 with the retrofitting of a diesel-powered RTG crane. The first phase included integrating the hydrogen-electric system, followed by a one-year field trial to assess performance metrics such as hydrogen consumption, energy generation, and regenerative energy capture rates. Early results have been promising, with the crane operating efficiently and emitting only steam, compared to the 400 kilograms of CO₂ produced by a comparable diesel unit. 

If successful, this project could serve as a model for decarbonizing port operations worldwide, mirroring investments in electric trucks at California ports that target landside emissions. DP World plans to consider converting its fleet of RTG cranes in Vancouver and Prince Rupert to hydrogen power, aligning with its global commitment to achieve carbon neutrality by 2040.

Broader Implications for the Industry

The success of the hydrogen fuel cell crane pilot at the Port of Vancouver has broader implications for the shipping and logistics industry. It demonstrates the feasibility of transitioning from diesel to hydrogen-powered equipment in challenging environments, and aligns with advances in electric ships on the B.C. coast. The project's success could accelerate the adoption of hydrogen technology in other ports and industries, contributing to global efforts to reduce carbon emissions and combat climate change.

Moreover, the collaboration between public and private sectors in this initiative sets a precedent for future partnerships aimed at advancing clean energy solutions. The support from the Province of British Columbia, coupled with the expertise of companies like TCA Electric and utility initiatives such as BC Hydro's vehicle-to-grid pilot underscore the importance of coordinated efforts in achieving sustainability goals.

Looking Ahead

As the field trial progresses, stakeholders are closely monitoring the performance of the hydrogen fuel cell crane. The data collected will inform decisions on scaling the technology and integrating it into broader port operations. The success of this project could pave the way for similar initiatives in other regions, complementing the province's move to electric ferries with CIB support, promoting the widespread adoption of hydrogen as a clean energy source in industrial applications.

TCA Electric's leadership in this project exemplifies the critical role of skilled industrial electricians in driving the transition to sustainable energy solutions. Their expertise ensures the safe and efficient implementation of complex systems, making them indispensable partners in the journey toward a zero-emission future.

The hydrogen fuel cell crane pilot at the Port of Vancouver represents a significant milestone in the decarbonization of port operations. Through innovative partnerships and local expertise, this project is setting the stage for a cleaner, more sustainable future in global trade and logistics.

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NB Power Pulp and Paper Subsidies lower electricity rates for six New Brunswick mills using firm power benchmarks and interruptible discounts, while government mandates, utility debt, ratepayer impacts, and competitiveness pressures shape provincial energy policy.

Key Points

Provincial mandates that buy down firm electricity rates for six mills to a national average, despite NB Power's debt.

✅ Mandated buy-down to match national firm electricity rates

✅ Ignores large non-firm interruptible power discounts

✅ Raises equity concerns amid NB Power debt and rate pressure

An effort to fix NB Power's struggling finances that is supposed to involve a look at "all options" will not include a review of the policy that requires the utility to subsidize electricity prices for six New Brunswick pulp and paper mills, according to the Department of Natural Resources and Energy Development.

The program is meant "to enable New Brunswick's pulp and paper companies have access to competitive priced electricity,"  said the department's communications officer Nick Brown in an email Monday 

"Keeping our large industries competitive with other Canadian jurisdictions, amid Nova Scotia rate hike opposition debates elsewhere, is important," he wrote, knocking down the idea the subsidy program might be scrutinized for shortcomings like other NB Power expenses.

Figures released last week show NB Power paid out $9.7 million in rate subsidies to the mills under the program in the fiscal year ended in March 2021, even though the utility was losing $4 million for the year and falling deeper into debt, amid separate concerns about old meter issues affecting households.

Subsidies went to three mills owned by J.D. Irving Ltd. including two in Saint John and one in Lake Utopia, two owned by the AV group in Nackawic and Atholville and the Twin Rivers pulp mill in Edmundston.

The New Brunswick government has made NB Power subsidize pulp and paper mills like Twin Rivers Paper Company since 2012, and is requiring the program to continue despite financial problems at the utility. (CBC)
It was NB Power's second year in a row of financial losses, while it is supposed to pay down $500 million of its $4.9 billion debt load in the next five years to prepare for the refurbishment of the Mactaquac dam, a burden comparable to customers in Newfoundland paying for Muskrat Falls elsewhere under separate policies, under a directive issued by the province

NB Power president Keith Cronkhite said he was "very disappointed" with debt increasing last year instead of  falling and senior vice president and chief financial officer Darren Murphy said everything would be under the microscope this year to turn the utility's finances around.  

"We need to do better," said Murphy on Thursday

"We need to step back and make sure we're considering all options, including approaches like Newfoundland's ratepayer shield agreement on megaproject overruns, to achieve that objective because the objective is quickly closing in on us."

However, reviewing the subsidy program for the six pulp and paper mills is apparently off limits.

The subsidy program requires NB Power to buy down the cost of "firm" electricity bought by pulp and paper mills to a national average that is calculated by the Department of Natural Resources and Energy Development.

Last year the province declared the price mills in New Brunswick pay to be an average of  7.536 cents per kilowatt hour (kwh).  It is higher than rates in five other provinces that have mills, which the province points to as justification for the subsidies, even as Nova Scotia's 14% rate hike approval highlights broader upward pressure, although the true significance of that difference is not entirely clear.

In British Columbia, the large forest products company Paper Excellence operates five pulp and paper mills which are charged 17.2 per cent less for firm electricity than the six mills in New Brunswick.

The Paper Excellence Paper Mill in Port Alberni, B.C. pays lower electricity prices than mills in New Brunswick, a benefit largely offset by higher property taxes. It's a factor New Brunswick does not count in calculating subsidies NB Power must pay. (Paper Excellence)
However, local property taxes on the five BC mills are a combined $7.8 million higher than the six New Brunswick plants, negating much of that difference.

The province's subsidy formula does not account for differences like that or for the fact New Brunswick mills buy a high percentage of their electricity at cheap non-firm prices.

Not counting the subsidies, NB Power already sells high volumes of what it calls interruptible and surplus power to industry at deep discounts on the understanding it can be cut off and redeployed elsewhere on short notice when needed.

Actual interruptions in service are rare.  Last year there were none, but NB Power sold 837 million kilowatt hours of the discounted power to industry at an average price of 4.9 cents per kwh.   

NB Power does not disclose how much of the $22 million or more in savings went to the six mills, but the price was 35 per cent below NB Power's posted rate for the plants and rivaled firm prices big mills receive anywhere in Canada, including Quebec.

Asked why the subsidy program ignores large amounts of discounted interruptible power used by New Brunswick mills in making comparisons between provinces, Brown said regulations governing the program require a comparison of firm prices only.

"The New Brunswick average rate is based on NB Power's published large industrial rate for firm energy, as required by the Electricity from Renewable Resources regulation," he wrote.

The subsidy program itself was imposed on NB Power by the province in 2012 to aid companies suffering after years of poor markets for forest products following the 2008 financial collapse and recession.  

Providing subsidies has cost NB Power $100 million so far and has continued even as markets for pulp products improved significantly and NB Power's own finances worsened.

Report warned against subsidies
NB Power has never directly criticized the program, but in a matter currently in front the of the New Brunswick Energy and Utilities Board looking at how NB Power might restructure its rates, including proposals such as seasonal rates that could prompt backlash, an independent consultant hired by the utility suggested rate subsidies to large export oriented manufacturing facilities, like pulp and paper mills, is generally a poor idea.

"We do not recommend offering subsidies to exporters," says the report by Christensen Associates Energy Consulting of Madison, Wis.

"There are two serious economic problems with subsidizing exports. The first is that the benefits may be less than the costs. The second problem is that subsidies tend to last forever, even if the circumstances that initially justified the subsidies have disappeared."

The Christensen report did not directly assess the merits of the current subsidy for pulp and paper mills but it addressed the issue because it said in the design of new rates "one NB Power business customer has raised the possibility that their electricity-intensive business ought to be granted subsidies because of the potential to generate extra benefits for the Province through increases in their exports"

That, said Christensen, rarely benefits the public.

"The direct costs of the subsidies are the subsidies themselves, a part of which ends up in the pockets of out-of-province consumers of the exported goods," said the report.  

"But there are also indirect costs due to the fact that the subsidies are financed through higher electricity prices, which means that other electricity customers have less money to spend on services provided by local businesses, thus putting a drag on the local economy."

The province does not agree.

Asked whether it has any studies or cost-benefit reviews that show the subsidy program is a net benefit to New Brunswick, the department cited none but maintained it is an important initiative, even as elsewhere governments have offered electricity bill credit relief to ratepayers.

"The program was designed to give large industrial businesses the ability to compete on a level energy field," wrote Brown.
 

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