Vermont utilities to buy wind from New Hampshire

New England oil-fired generation surges as ISO New England manages a cold snap, dual-fuel switching, and a natural gas price spike, highlighting winter reliability challenges, LNG and pipeline limits, and rising CO2 emissions.

Key Points

Reliance on oil-burning power plants during winter demand spikes when natural gas is costly or constrained.

✅ Driven by dual-fuel switching amid high natural gas prices

✅ ISO-NE winter reliability rules encourage oil stockpiles

✅ Raises CO2 emissions despite coal retirements and renewables growth

New England is relying on oil-fired generators for the most electricity since 2018 as a frigid blast boosts demand for power and natural gas prices soar across markets. 

Oil generators were producing more than 4,200 megawatts early Thursday, accounting for about a quarter of the grid’s power supply, according to ISO New England. That was the most since Jan. 6, 2018, when oil plants produced as much as 6.4 gigawatts, or 32% of the grid’s output, said Wood Mackenzie analyst Margaret Cashman.  

Oil is typically used only when demand spikes, because of higher costs and emissions concerns. Consumption has been consistently high over the past three weeks as some generators switch from gas, which has surged in price in recent months. New England generators are producing power from oil at an average rate of almost 1.8 gigawatts so far this month, the highest for January in at least five years. 

Oil’s share declined to 16% Friday morning ahead of an expected snowstorm, which was “a surprise,” Cashman said. 

“It makes me wonder if some of those generators are aiming to reserve their fuel for this weekend,” she said.

During the recent cold snap, more than a tenth of the electricity generated in New England has been produced by power plants that haven’t happened for at least 15 years.

Burning oil for electricity was standard practice throughout the region for decades. It was once our most common fuel for power and as recently as 2000, fully 19% of the six-state region’s electricity came from burning oil, according to ISO-New England, more than any other source except nuclear power at the time.

Since then, however, natural gas has gotten so cheap that most oil-fired plants have been shut or converted to burn gas, to the point that just 1% of New England’s electricity came from oil in 2018, whereas about half our power came from natural gas generation regionally during that period. This is good because natural gas produces less pollution, both particulates and greenhouse gasses, although exactly how much less is a matter of debate.

But as you probably know, there’s a problem: Natural gas is also used for heating, which gets first dibs. Prolonged cold snaps require so much gas to keep us warm, a challenge echoed in Ontario’s electricity system as supply tightens, that there might not be enough for power plants – at least, not at prices they’re willing to pay.

After we came close to rolling brownouts during the polar vortex in the 2017-18 winter because gas-fired power plants cut back so much, ISO-NE, which has oversight of the power grid, established “winter reliability” rules. The most important change was to pay power plants to become dual-fuel, meaning they can switch quickly between natural gas and oil, and to stockpile oil for winter cold snaps.

We’re seeing that practice in action right now, as many dual-fuel plants have switched away from gas to oil, just as was intended.

That switch is part of the reason EPA says the region’s carbon emissions have gone up in the pandemic, from 22 million tons of CO2 in 2019 to 24 million tons in 2021. That reverses a long trend caused partly by closing of coal plants and partly by growing solar and offshore wind capacity: New England power generation produced 36 million tons of CO2 a decade ago.

So if we admit that a return to oil burning is bad, and it is, what can we do in future winters? There are many possibilities, including tapping more clean imports such as Canadian hydropower to diversify supply.

The most obvious solution is to import more natural gas, especially from fracked fields in New York state and Pennsylvania. But efforts to build pipelines to do that have been shot down a couple of times and seem unlikely to go forward and importing more gas via ocean tanker in the form of liquefied natural gas (LNG) is also an option, but hits limits in terms of port facilities.

Aside from NIMBY concerns, the problem with building pipelines or ports to import more gas is that pipelines and ports are very expensive. Once they’re built they create a financial incentive to keep using natural gas for decades to justify the expense, similar to moves such as Ontario’s new gas plants that lock in generation. That makes it much harder for New England to decarbonize and potentially leaves ratepayers on the hook for a boatload of stranded costs.

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Texas EV Registration Fee adds a $200 annual charge under Senate Bill 505, offsetting lost gasoline tax revenue to the State Highway Fund, impacting electric vehicle owners at registration and renewals across Texas.

Key Points

A $200 yearly charge on electric vehicles to replace lost gasoline tax revenue and support Texas Highway Fund road work.

✅ $200 due at registration or renewal; $400 upfront on new EVs.

✅ Enacted by Senate Bill 505 to offset lost gasoline tax revenue.

✅ Advocates propose mileage-based fees; limited $2,500 rebates exist.

Plano resident Tony Federico bought his Tesla five years ago in part because he hated spending lots of money on gas, and Supercharger billing changes have also influenced charging expenses. But that financial calculus will change slightly on Sept. 1, when Texas will start charging electric vehicle drivers an additional fee of $200 each year.

“It just seems like it’s arbitrary, with no real logic behind it,” said Federico, 51, who works in information technology. “But I’m going to have to pay it.”

Earlier this year, state lawmakers passed Senate Bill 505, which requires electric vehicle owners to pay the fee when they register a vehicle or renew their registration, even as fights for control over charging continue among utilities, automakers and retailers. It’s being imposed because lawmakers said EV drivers weren’t paying their fair share into a fund that helps cover road construction and repairs across Texas.

The cost will be especially high for those who purchase a new electric vehicle and have to pay two years of registration, or $400, up front.

Texas agencies estimated in a 2020 report that the state lost an average of $200 per year in federal and state gasoline tax dollars when an electric vehicle replaced a gas-fueled one. The agencies called the fee “the most straightforward” remedy.

Gasoline taxes go to the State Highway Fund, which the Texas Department of Transportation calls its “primary funding source.” Electric vehicle drivers don’t pay those taxes, though, because they don’t use gasoline.

Still, EV drivers do use the roads. And while electric vehicles make up a tiny portion of cars in Texas for now, that fraction is expected to increase, raising concerns about state power grids in the years ahead.

Many environmental and consumer advocates agreed with lawmakers that EV drivers should pay into the highway fund but argued over how much, and debates over fairer vehicle taxes are surfacing abroad as well.

Some thought the state should set the fee lower to cover only the lost state tax dollars, rather than both the state and federal money, because federal officials may devise their own scheme. Others argued the state should charge nothing because EVs help reduce greenhouse gas emissions that drive climate change and can offer budget benefits for many owners.

“We urgently need to get more electric vehicles on the road,” said Luke Metzger, executive director of Environment Texas. “Any increased fee could create an additional barrier for Texans, and particularly more moderate- to low-income Texans, to make that transition.”

Tom “Smitty” Smith, the executive director of the Texas Electric Transportation Resources Alliance, advocated for a fee based on how many miles a person drove their electric car, which would better mirror how the gas taxes are assessed.

Texas has a limited incentive that could offset the cost: It offers rebates of up to $2,500 for up to 2,000 new hydrogen fuel cell, electric or hybrid vehicles every two years. Adrian Shelley, Public Citizen’s Texas office director, recommended that the state expand the rebates, noting that state-level EV benefits can be significant.

In the Houston area, dealer Steven Wolf isn’t worried about the fee deterring potential customers from buying the electric Ford F-150 Lightning and Mustang Mach-E vehicles he sells. Electric cars are already more expensive than comparable gasoline-fueled cars, and charging networks compete for drivers, he said.

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TransLink Electric Bus Pilot launches zero-emission service in Metro Vancouver, cutting greenhouse gas emissions with fast-charging stations on Route 100, supporting renewable energy goals alongside trolley buses, CNG, and hybrid fleets.

Key Points

TransLink's Metro Vancouver program deploying charging, zero-emission buses on Route 100 to cut emissions and fuel costs.

✅ Cuts ~100 tonnes GHG and saves $40k per bus annually

✅ Five-minute on-route charging at terminals on Route 100

✅ Pilot data to guide zero-emission fleet transition by 2050

TransLink's first battery-electric buses are taking to the roads in Metro Vancouver as part of a pilot project to reduce emissions, joining other initiatives like electric school buses in B.C. that aim to cut pollution in transportation.

The first four zero-emission buses picked up commuters in Vancouver, Burnaby and  New Westminster on Wednesday. Six more are expected to be brought in, and similar launches like Edmonton's first electric bus are underway across Canada.

"With so many people taking transit in Vancouver today, electric buses will make a real difference," said Merran Smith, executive director of Clean Energy Canada, a think tank at Simon Fraser University, in a release.

According to TransLink, each bus is expected to reduce 100 tonnes of greenhouse gas emissions and save $40,000 in fuel costs per year compared to a conventional diesel bus.

"Buses already help tackle climate change by getting people out of cars, and Vancouver is ahead of the game with its electric trolleys," Smith said.

She added there is still more work to be done to get every bus off diesel, as seen with the TTC's battery-electric buses rollout in Toronto.

The buses will run along the No. 100 route connecting Vancouver and New Westminster. They recharge — it takes about five minutes — at new charging stations installed at both ends of the route while passengers load and unload or while the driver has a short break. 

Right now, more than half of TransLink's fleet currently operates with clean technology, offering insights alongside Toronto's large battery-electric fleet for other cities. 

In addition to the four new battery-electric buses, the fleet also includes hundreds of zero-emission electric trolley buses, compressed natural gas buses and hybrid diesel-electric buses, while cities like Montreal's first STM electric buses continue to expand adoption.

"Our iconic trolley buses have been running on electricity since 1948 and we're proud to integrate the first battery-electric buses to our fleet," said TransLink CEO Kevin Desmond in a press release.

TransLink has made it a goal to operate its fleet with 100 per cent renewable energy in all operations by 2050. Desmond says, the new buses are one step closer to meeting that goal.

The new battery-electric buses are part of a two-and-a-half year pilot project that looks at the performance, maintenance, and customer experience of making the switch to electric, complementing BC Hydro's vehicle-to-grid pilot initiative underway in the province.

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U.S. Tariffs on Chinese EVs and Solar Cells target trade imbalances, subsidies, and intellectual property risks, bolstering domestic manufacturing, supply chains, and national security across clean energy, automotive technology, and renewable markets.

Key Points

Policy measures raising duties on Chinese EVs and solar cells to protect U.S. industry, IP, and national security.

✅ Raises duties to counter subsidies and IP risks

✅ Supports domestic EV and solar manufacturing jobs

✅ May reshape supply chains, prices, and trade flows

In a significant move aimed at bolstering domestic industries and addressing trade imbalances, the Biden administration has announced higher tariffs on Chinese-made electric cars and solar cells. This decision marks a strategic shift in U.S. trade policy, with market observers noting EV tariffs alongside industrial and financial implications across sectors today.

Tariffs on Electric Cars

The imposition of tariffs on Chinese electric cars comes amidst growing competition in the global electric vehicle (EV) market. U.S. automakers and policymakers have raised concerns about unfair trade practices, subsidies, and market access barriers faced by American EV manufacturers in China amid escalating trade tensions with key partners. The tariffs aim to level the playing field and protect U.S. interests in the burgeoning electric vehicle sector.

Impact on Solar Cells

Similarly, higher tariffs on Chinese solar cells address concerns regarding intellectual property theft, subsidies, and market distortions in the solar energy industry, where tariff threats have influenced investment signals across North American markets.

The U.S. solar sector, a key player in renewable energy development, has called for measures to safeguard fair competition and promote domestic manufacturing of solar technologies.

Economic and Political Implications

The tariff hikes underscore broader economic tensions between the United States and China, spanning trade, technology, and geopolitical issues. While aimed at protecting American industries, these tariffs could lead to retaliatory measures from China and impact global supply chains, particularly in renewable energy and automotive sectors, as North American electricity exports at risk add to uncertainty across markets.

Industry and Market Responses

Industry stakeholders have responded with mixed reactions to the tariff announcements. U.S. automakers and solar manufacturers supportive of the tariffs argue they will help level the playing field and encourage domestic production. However, critics warn of potential energy price spikes for consumers, supply chain disruptions, and unintended consequences for global clean energy goals.

Strategic Considerations

The Biden administration's tariff policy reflects a broader strategy to promote economic resilience, innovation, and national security in critical industries, even as cross-border electricity exports become flashpoints in trade policy debates today.

Efforts to strengthen domestic supply chains, invest in renewable energy infrastructure, and foster international partnerships remain central to U.S. economic competitiveness and climate objectives.

Future Outlook

Looking ahead, navigating U.S.-China trade relations will continue to be a complex challenge for policymakers. Balancing economic interests, diplomatic engagements, and environmental priorities, alongside regional public support for tariffs, will shape future trade policy decisions affecting electric vehicles, renewable energy, and technology sectors globally.

Conclusion

The Biden administration's decision to impose higher tariffs on Chinese electric cars and solar cells represents a strategic response to economic and geopolitical dynamics reshaping global markets. While aimed at protecting American industries and promoting fair trade practices, the tariffs signal a commitment to fostering competitiveness, innovation, and sustainability in critical sectors of the economy. As these measures unfold, stakeholders will monitor their impact on industry dynamics, supply chain resilience, and international trade relations in the evolving landscape of global commerce.

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San Juan Generating Station eyed for $1 coal-plant sale, as Farmington and Acme propose CCS retrofit, meeting emissions caps and renewable mandates by selling captured CO2 for enhanced oil recovery via a nearby pipeline.

Key Points

A New Mexico coal plant eyed for $1 and a CCS retrofit to cut emissions and sell CO2 for enhanced oil recovery.

✅ $400M-$800M CCS retrofit; 90% CO2 capture target

✅ CO2 sales for enhanced oil recovery; 20-mile pipeline gap

✅ PNM projects shutdown savings; renewable and emissions mandates

One dollar. That’s how much an aging New Mexico coal plant is worth. And by some estimates, even that may be too much.

Acme Equities LLC, a New York-based holding company, is in talks to buy the 847-megawatt San Juan Generating Station for $1, after four of its five owners decided to shut it down. The fifth owner, the nearby city of Farmington, says it’s pursuing the bargain-basement deal with Acme to avoid losing about 1,600 direct and indirect jobs in the area amid a broader just transition debate for energy workers.

We respectfully disagree with the notion that the plant is not economical

Acme’s interest comes as others are looking to exit a coal industry that’s been plagued by costly anti-pollution regulations. Acme’s plan: Buy the plant "at a very low cost," invest in carbon capture technology that will lower emissions, and then sell the captured CO2 to oil companies, said Larry Heller, a principal at the holding group.

By doing this, Acme “believes we can generate an acceptable rate of return,” Heller said in an email.

Meanwhile, San Juan’s majority owner, PNM Resources Inc., offers a distinctly different view, echoing declining coal returns reported by other utilities. A 2022 shutdown will push ratepayers to other energy alternatives now being planned, saving them about $3 to $4 a month on average, PNM has said.

“We could not identify a solution that would make running San Juan Generating Station economical,” said Tom Fallgren, a PNM vice president, in an email.

The potential sale comes as a new clean-energy bill, supported by Governor Lujan Grisham, is working its way through the state legislature. It would require the state to get half of its power from renewable sources by 2030, and 100 percent by 2045, even as other jurisdictions explore small modular reactor strategies to meet future demand. At the same time, the legislation imposes an emissions cap that’s about 60 percent lower than San Juan’s current levels.

In response, Acme is planning to spend $400 million to $800 million to retrofit the facility with carbon capture and sequestration technology that would collect carbon dioxide before it’s released into the atmosphere, Heller said. That would put the facility into compliance with the pending legislation and, at the same time, help generate revenue for the plant.

The company estimates the system would cut emissions by as much as 90 percent, and the captured gas could be sold to oil companies, which uses it to enhance well recovery. The bottom line, according to Heller: “A winning financial formula.”

It’s a tricky formula at best. Carbon-capture technology has been controversial, even as new coal plant openings remain rare, expensive to install and unproven at scale. Additionally, to make it work at the San Juan plant, the company would need to figure out how to deliver the CO2 to customers since the nearest pipeline is about 20 miles (32 kilometers) away.

Reducing costs

Acme is also evaluating ways to reduce costs at San Juan, Heller said, including approaches seen at operators extending the life of coal plants under regulatory scrutiny, such as negotiating a cheaper coal-supply contract and qualifying for subsidies.

Farmington’s stake in the plant is less than 10 percent. But under terms of the partnership, the city — population 45,000 — can assume full control of San Juan should the other partners decide to pull out, mirroring policy debates over saving struggling nuclear plants in other regions. That’s given Farmington the legal authority to pursue the plant’s sale to Acme.

At the end of the day, nobody wants the energy

“We respectfully disagree with the notion that the plant is not economical,” Farmington Mayor Nate Duckett said by email. Ducket said he’s in better position than the other owners to assess San Juan’s importance “because we sit at Ground Zero.”

The city’s economy would benefit from keeping open both the plant and a nearby coal mine that feeds it, according to Duckett, with operations that contribute about $170 million annually to the local area.

While the loss of those jobs would be painful to some, Camilla Feibelman, a Sierra Club chapter director, is hard pressed to see a business case for keeping San Juan open, pointing to sector closures such as the Three Mile Island shutdown as evidence of shifting economics. The plant isn’t economical now, and would almost certainly be less so after investing the capital to add carbon-capture systems.

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Medicine Hat Smart Grid AI modernizes electricity distribution with automation, sensors, and demand response, enhancing energy efficiency and renewable integration while using predictive analytics and real-time data to reduce consumption and optimize grid operations.

Key Points

An initiative using smart grid tech and AI to optimize energy use, cut waste, and improve renewable integration.

✅ Predictive analytics forecast demand to balance load and prevent outages.

✅ Automation, sensors, and meters enable dynamic, resilient distribution.

✅ Integrates solar and wind with demand response to cut emissions.

The city of Medicine Hat, Alberta, is taking bold steps toward enhancing its energy infrastructure and reducing electricity consumption with the help of innovative technology. Recently, several grant winners have been selected to improve the city's electricity grid distribution and leverage artificial intelligence (AI) to adapt to electricity demands while optimizing energy use. These projects promise to not only streamline energy delivery but also contribute to more sustainable practices by reducing energy waste.

Advancing the Electricity Grid

Medicine Hat’s electricity grid is undergoing a significant transformation, thanks to a new set of initiatives funded by government grants that advance a smarter electricity infrastructure vision for the region. The city has long been known for its commitment to sustainable energy practices, and these new projects are part of that legacy. The winners of the grants aim to modernize the city’s electricity grid to make it more resilient, efficient, and adaptable to the changing demands of the future, aligning with macrogrid strategies adopted nationally.

At the core of these upgrades is the integration of smart grid technologies. A smart grid is a more advanced version of the traditional power grid, incorporating digital communications and real-time data to optimize the delivery and use of electricity. By connecting sensors, meters, and control systems across the grid, along with the integration of AI data centers where appropriate, the grid can detect and respond to changes in demand, adjust to faults or outages, and even integrate renewable energy sources more efficiently.

One of the key aspects of the grant-funded projects involves automating the grid. Automation allows for the dynamic adjustment of power distribution in response to changes in demand or supply, reducing the risk of blackouts or inefficiencies. For instance, if an area of the city experiences a surge in energy use, the grid can automatically reroute power from less-used areas or adjust the distribution to avoid overloading circuits. This kind of dynamic response is crucial for maintaining a stable and reliable electricity supply.

Moreover, the enhanced grid will be able to better incorporate renewable energy sources such as solar and wind power, reflecting British Columbia's clean-energy shift as well, which are increasingly important in Alberta’s energy mix. By utilizing a more flexible and responsive grid, Medicine Hat can make the most of renewable energy when it is available, reducing reliance on non-renewable sources.

Using AI to Reduce Energy Consumption

While improving the grid infrastructure is an essential first step, the real innovation comes in the form of using artificial intelligence (AI) to reduce energy consumption. Several of the grant winners are focused on developing AI-driven solutions that can predict energy demand patterns, optimize energy use in real-time, and encourage consumers to reduce unnecessary energy consumption.

AI can be used to analyze vast amounts of data from across the electricity grid, such as weather forecasts, historical energy usage, and real-time consumption data. This analysis can then be used to make predictions about future energy needs. For example, AI can predict when the demand for electricity will peak, allowing the grid operators to adjust supply ahead of time, ensuring a more efficient distribution of power. By predicting high-demand periods, AI can also assist in optimizing the use of renewable energy sources, ensuring that solar and wind power are utilized when they are most abundant.

In addition to grid management, AI can help consumers save energy by making smarter decisions about how and when to use electricity. For instance, AI-powered smart home devices can learn household routines and adjust heating, cooling, and appliance usage to reduce energy consumption without compromising comfort. By using data to optimize energy use, these technologies not only reduce costs for consumers but also decrease overall demand on the grid, leading to a more sustainable energy system.

The AI initiatives are also expected to assist businesses in reducing their carbon footprints. By using AI to monitor and optimize energy use, industrial and commercial enterprises can cut down on waste and reduce energy-related operational costs, while anticipating digital load growth signaled by an Alberta data centre agreement in the province. This has the potential to make Medicine Hat a more energy-efficient city, benefiting both residents and businesses alike.

A Sustainable Future

The integration of smart grid technology and AI-driven solutions is positioning Medicine Hat as a leader in sustainable energy practices. The city’s approach is focused not only on improving energy efficiency and reducing waste but also on making electricity consumption more manageable and adaptable in a rapidly changing world. These innovations are a crucial part of Medicine Hat's long-term strategy to reduce carbon emissions and meet climate goals while ensuring reliable and affordable energy for its residents.

In addition to the immediate benefits of these projects, the broader impact is likely to influence other municipalities across Canada, including insights from Toronto's electricity planning for rapid growth, and beyond. As the technology matures and proves successful, it could set a benchmark for other cities looking to modernize their energy grids and adopt sustainable, AI-driven solutions.

By investing in these forward-thinking technologies, Medicine Hat is not only future-proofing its energy infrastructure but also taking decisive steps toward a greener, more energy-efficient future. The collaboration between local government, technology providers, and the community marks a significant milestone in the city’s commitment to innovation and sustainability.

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