Japan vows to stabilize stricken plant

By Toronto Star


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Japan said it will stabilize and shut down its stricken nuclear power plant in six to nine months, as planned, as residents of two more towns around it evacuated amid concerns about accumulated radiation.

The governmentÂ’s timeline for stabilizing the plant was called into question after new data showed that the damage to one reactor at the Fukushima Daiichi nuclear complex was worse than expected.

That assessment also prompted the government to acknowledge that the reactorÂ’s fuel rods had mostly melted soon after the March 11 earthquake and tsunami knocked out the plantÂ’s cooling system.

Until all the reactors are safely shut down, they continue to leak radiation, though in much smaller amounts than in the early days of the disaster.

Still, the sheer volume of contaminants spewed from the plant — and their buildup in places outside the 20-kilometre evacuation zone — persuaded the government to order residents to leave more towns in late April. Some of those evacuations have already begun.

In a rare bit of good news, authorities said that their original timeline for stabilizing the reactors is achievable because the temperature inside the Unit 1 reactor core has fallen to nearly 100 Celsius, a level considered safe and close to a cold shutdown.

“We believe we can stick to the current time frame,” said Goshi Hosono, the prime minister’s aide and nuclear crisis task force director, referring to the timeline laid out in April of bringing the plants three troubled reactors to a cold and stable shutdown in six to nine months.

“What’s crucial is how we can proceed with cooling. Even though the cores had melted, they are somewhat kept cool,” Hosono said.

The plant, operated by the Tokyo Electric Power Co., is still leaking a massive amount of contaminated water — just one of many problems facing workers who have been trying to bring it under control the last two months.

Hosono said that a similar meltdown had probably occurred Units 2 and 3 as they were both out of water for more than six hours after the March 11 power outage. Unit 1Â’s reactor core was out of water for more than 14 hours, he revealed.

Most of the fuel in Unit 1 has melted and slumped to the bottom of the pressure vessel that holds the rods together, and some of that ate through the vessel and trickled into the large beaker-shaped containment vessel, officials said.

Meanwhile, about 50 residents from Kawamata and four families from Iitate have already vacated their homes and began to adjust to life in evacuation centres after leaving their homes on previous government orders.

The towns are among several that have registered relatively high radiation readings but are outside a previous 20-km radius evacuation zone around the nuclear plant.

In late April, the government said residents in these areas should prepare to evacuate over the coming month due to concerns about cumulative radiation.

Officials in Iitate said they intend to have most of the townÂ’s residents evacuated by the end of the month. The scenic, rural village had a population of 6,500 before the earthquake and about 2,000 people have already moved out voluntarily.

Four families with babies or pregnant women left the town, according to an Iitate official who did not give his name because he was not authorized to speak to the media.

He said it is difficult to estimate how many people remain in the town because many are evacuating on their own and the village does not have details on their circumstances.

Officials said they have not set an exact date for the final evacuations because some residents may have trouble leaving — because they own livestock or for other reasons — and may require extra time.

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Demand for electricity in Yukon hits record high

Yukon Electricity Demand Record underscores peak load growth as winter cold snaps drive heating, lighting, and EV charging, blending hydro, LNG, and diesel with renewable energy and planned grid-scale battery storage in Whitehorse.

 

Key Points

It is the territory's new peak electricity load, reflecting winter demand, electric heating, EVs, and mixed generation.

✅ New peak: 104.42 MW, surpassing 2020 record of 103.84 MW

✅ Winter peaks met with hydro, LNG, diesel, and renewables mix

✅ Customers urged to shift use off peak hours and use timers

 

A new record for electricity demand has been set in Yukon. The territory recorded a peak of 104.42 megawatts, according to a news release from Yukon Energy.

The new record is about a half a megawatt higher than the previous record of 103.84 megawatts recorded on Jan. 14, 2020.

While in general, over 90 per cent of the electricity generated in Yukon comes from renewable resources each year, with initiatives such as new wind turbines expanding capacity, during periods of high electricity use each winter, Yukon Energy has to use its hydro, liquefied natural gas and diesel resources to generate the electricity, the release says.

But when it comes to setting records, Andrew Hall, CEO of Yukon Energy, says it's not that unusual.

"Typically, during the winter, when the weather is cold, demand for electricity in the Yukon reaches its maximum. And that's because folks use more electricity for heating their homes, for cooking meals, there's more lighting demand, because the days are shorter," he said.

"It usually happens either in December or sometimes in January, when we get a cold snap."

He said generally over the years, electricity demand has grown.

"We get new home construction, construction of new apartment buildings. And typically, those new homes are all heated by electricity, maybe not all of them but the majority," Hall said.

Vuntut Gwitchin First Nation's solar farm now generating electricity
In taking action on climate, this Arctic community wants to be a beacon to the world

Efforts to curb climate change add to electricity demand
There are also other reasons, ones that are "in the name of climate change," Hall added.

That includes people trying to limit fossil fuel heating by swapping to electric heating. And, he said some Yukoners are switching to electric vehicles as incentives expand across the North.

"Over time, those two new demands, in the name of climate change, will also contribute to growing demand for electricity," he said.

While Yukon did reach this new all time high, Hall said the territory still hadn't hit the maximum capacity for the week, which was 118 megawatts, and discussions about a potential connection to the B.C. grid are part of long-term planning.


Yukon Energy's hydroelectric dam in Whitehorse. Yukon Energy's CEO, Andrew Hall, said demand of 104 megawatts wasn't unexpected, nor was it an emergency. The corporation has the ability to generate 118 megawatts. (Paul Tukker/CBC)
Tips to curve demand
"When we plan our system, we actually plan for a scenario, guided by the view that sustainability is key to the grid's future, where we actually lose our largest hydro generating facility," Hall said.

"We had plenty of generation available so it wasn't an emergency situation, and, even as other provinces face electricity shortages, it was more just an observation that hey, our peaks are growing."

He also said it was an opportunity to reach out to customers on ways to curve their demand for electricity around peak times, drawing on energy efficiency insights from other provinces, which is typically between 7 a.m. and 9 a.m., and between 5 p.m. and 7 p.m., Monday to Friday.

For example, he said, people should consider running major appliances, like dishwashers, during non-peak hours, such as in the afternoon rather than in the morning or evening.

During winter peaks, people can also use a block heater timer on vehicles and turn down the thermostat by one or two degrees.

'We plan for each winter'
Hall said Yukon Energy is working to increase its peak output, including working on a large grid scale battery to be installed in Whitehorse, similar to Ontario's energy storage push now underway. 

When it comes to any added load from people working from home due to COVID-19, Hall said they haven't noticed any identifiable increase there.

"Presumably, if someone's working from home, you know, their computer is at home, and they're not using the computer at the office," he said.

Yukon Energy one step closer to having largest battery storage site in the North
He said there shouldn't be any concern for maxing out the capacity of electricity demand as Yukon moves into the colder winter months, since those days are forecast for.

"This number of 104 megawatts wasn't unexpected," he said, adding how much electricity is needed depends on the weather too.

"We plan for each winter."

 

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Disruptions in the U.S. coal, nuclear power industries strain the economy and invite brownouts

Electric power market crisis highlights grid reliability risks as coal and nuclear retire amid subsidies, mandates, and cheap natural gas; intermittent wind and solar raise blackout concerns, resilience costs, and pricing distortions across regulated markets.

 

Key Points

Reliability and cost risks as coal and nuclear retire; subsidies distort prices; intermittent renewables strain grid.

✅ Coal and nuclear retirements reduce baseload capacity

✅ Subsidies and mandates distort market pricing signals

✅ Intermittent renewables increase blackout and grid risk

 

Is anyone paying any attention to the crisis that is going on in our electric power markets?

Over the past six months at least four major nuclear power plants have been slated for shutdown, including the last one in operation in California. Meanwhile, dozens of coal plants have been shuttered as well — despite low prices and cleaner coal. Some of our major coal companies may go into bankruptcy.

This is a dangerous game we are playing here with our most valuable resource — outside of clean air and water. Traditionally, we've received almost half our electric power nationwide from coal and nuclear power, and for good reason. They are cheap sources of power and they are highly resilient and reliable.

The disruption to coal and nuclear power wouldn't be disturbing if this were happening as a result of market forces. That's only partially the case.

#google#

The amazing shale oil and gas revolution is providing Americans with cheap gas for home heating and power generation. Hooray. The price of natural gas has fallen by nearly two-thirds over the last decade and this has put enormous price pressure on other forms of power generation.

But this is not a free-market story of Schumpeterian creative destruction. If it were, then wind and solar power would have been shutdown years ago. They can't possibly compete on a level playing field with $3 natural gas.

In most markets solar and wind power survive purely because the states mandate that as much as 30 percent of residential and commercial power come from these sources. The utilities have to buy it regardless of price, even as electricity demand is flat in many regions. What a sweet deal. The California state legislature just mandated that every new home spend $10,000 on solar panels on the roof.

Well over $100 billion of subsidies to big wind and big solar were doled out over the last decade, and even with the avalanche of taxpayer subsidies and bailout funds many of these companies like Solyndra (which received $500 million in handouts) failed, underscoring why a green revolution hasn't materialized as promised.

These industries are not anywhere close to self sufficiency. In 2017 amid utility trends to watch the wind industry admitted that without a continuation of a multi-billion tax credit, the wind turbines would stop turning.

This combines with the left's war on coal through regulations that have destroyed coal plants in many areas. (Thank goodness for the exports of coal or the industry would be in much bigger trouble.)

Bottom line: Our power market is a Soviet central planner's dream come true and it is extinguishing our coal and nuclear industries.

 

Why should anyone care?

First, because government subsidies, regulations and mandates make electric power more expensive. Natural gas prices have fallen by two-thirds, but electric power costs have still risen in most areas — thanks to the renewable mandates.

More importantly, the electric power market isn't accurately pricing in the value of resilience and reliability. What is the value of making sure the lights don't go off? What is the cost to the economy and human health if we have rolling brownouts and blackouts because the aging U.S. grid doesn't have enough juice during peak demand.

Politicians, utilities and federal regulators are shortsightedly killing our coal and nuclear capacities without considering the risk of future energy shortages and power disruptions. Once a nuclear plant is shutdown, you can't just fire it back up again when you need it.

Wind and solar are notoriously unreliable. Most places where wind power is used, coal plants are needed to back up the system during peak energy use and when the wind isn't blowing.

The first choice to fix energy markets is to finally end the tangled web of layers and layers of taxpayer subsidies and mandates and let the market choose. Alas, that's nearly impossible given the political clout of big wind and solar.

The second best solution is for the regulators and utilities to take into account the grid reliability and safety of our energy. Would people be willing to pay a little more for their power to ensure against brownouts? I sure would. The cost of having too little energy far exceeds the cost of having too much.

A glass of water costs pennies, but if you're in a desert dying of thirst, that water may be worth thousands of dollars.

I'll admit I'm not sure what the best solution is to the power plant closures. But if we have major towns and cities in the country without electric power for stretches of time because of green energy fixation, Americans are going to be mighty angry and our economy will take a major hit.

When our manufacturers, schools, hospitals, the internet and iPhones shut down, we're not going to think wind and solar power are so chic.

If the lights start to go out five or 10 years from now, we will look back at what is happening today and wonder how we could have been so darn stupid.

 

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California Gets $500M to Upgrade Power Grid

California Grid Modernization Funding will upgrade transmission and distribution, boost grid resilience, enable renewable energy integration, expand energy storage, and deploy smart grid controls statewide with over $500 million in federal infrastructure investment.

 

Key Points

Federal support to harden California's grid, integrate renewables, add storage, and deploy smart upgrades for reliability.

✅ Strengthens transmission and distribution for wildfire and heat resilience

✅ Integrates solar and wind with storage and advanced grid controls

✅ Deploys smart meters, DER management, and modern cybersecurity

 

California has recently been awarded over $500 million in federal funds to significantly improve and modernize its power grid. This substantial investment marks a pivotal step in addressing the state’s ongoing energy challenges, enhancing grid resilience, and supporting its ambitious climate goals. The funding, announced by federal and state officials, is set to bolster California’s efforts to upgrade its electrical infrastructure, integrate renewable energy sources, and ensure a more reliable and sustainable energy system for its residents.

California's power grid has faced numerous challenges in recent years, including extreme weather events, high energy demand, and an increasing reliance on renewable energy sources. The state's electrical infrastructure has struggled to keep pace with these demands, leading to concerns about reliability, efficiency, and the capacity to handle new energy technologies. The recent federal funding is a critical component of a broader strategy to address these issues and prepare the grid for future demands.

The $500 million in federal funds is part of a larger initiative to support energy infrastructure projects across the United States, including a Washington state grant that strengthens regional infrastructure. The investment aims to modernize aging grid systems, improve energy efficiency, and enhance the integration of renewable energy sources. For California, this funding represents a significant opportunity to address several key areas of concern in its power grid.

One of the primary objectives of the funding is to enhance the resilience of the power grid. California has experienced a series of extreme weather events, including wildfires and heatwaves, driven in part by climate change impacts across the U.S., which have put considerable strain on the electrical infrastructure. The new investment will support projects designed to strengthen the grid’s ability to withstand and recover from these events. This includes upgrading infrastructure to make it more robust and less susceptible to damage from natural disasters.

Another key focus of the funding is the integration of renewable energy sources. California is a leader in the adoption of solar and wind energy, and the state has set ambitious goals for increasing its use of clean energy. However, integrating these variable energy sources into the grid presents technical challenges, including ensuring a stable and reliable power supply. The federal funds will be used to develop and deploy advanced technologies that can better manage and store renewable energy, such as battery storage systems, improving the overall efficiency and effectiveness of the grid.

In addition to resilience and renewable integration, the funding will also support efforts to modernize grid infrastructure. This includes upgrading transmission and distribution systems, implementing smarter electricity infrastructure and smart grid technologies, and enhancing grid management and control systems. These improvements are essential for creating a more flexible and responsive power grid that can meet the evolving needs of California’s energy landscape.

The investment in grid modernization also aligns with California’s broader climate goals. The state has set targets to reduce greenhouse gas emissions and increase the use of clean energy sources as it navigates keeping the lights on during its energy transition. By improving the power grid and supporting the integration of renewable energy, California is making progress toward achieving these goals while also creating jobs and stimulating economic growth.

The allocation of federal funds comes at a crucial time for California. The state has faced significant challenges in recent years, including power outages, energy reliability issues, and increasing energy costs that make repairing California's grid especially complex today. The new funding is expected to address many of these concerns by supporting critical infrastructure improvements and ensuring that the state’s power grid can meet current and future demands.

Federal and state officials have expressed strong support for the funding and its potential impact. The investment is seen as a major step forward in creating a more resilient and sustainable energy system for California. It is also expected to serve as a model for other states facing similar challenges in modernizing their power grids and integrating renewable energy sources.

The federal funding is part of a broader push to address infrastructure needs across the country. The Biden administration has prioritized investment in energy infrastructure, including a $34 million DOE initiative supporting grid improvements, as part of its broader agenda to combat climate change and build a more sustainable economy. The funding for California’s power grid is a reflection of this commitment and an example of how federal resources can support state and local efforts to improve infrastructure and address pressing energy challenges.

In summary, California’s receipt of over $500 million in federal funds represents a significant investment in the state’s power grid. The funding will support efforts to enhance grid resilience, integrate renewable energy sources, and modernize infrastructure. As California continues to face challenges related to extreme weather, energy reliability, and climate goals, this investment will play a crucial role in building a more reliable, efficient, and sustainable energy system. The initiative also highlights the importance of federal support in addressing infrastructure needs and advancing environmental and economic goals.

 

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Ontario Sets Electricity Rates at Off-Peak Price until February 7

Ontario Off-Peak Electricity Rate offers 8.2 cents per kWh for 24 hours, supporting Time-of-Use and Tiered Regulated Price Plan customers, including residential, small business, and farms, under Ontario Energy Board guidelines during temporary relief.

 

Key Points

A temporary 8.2 cents per kWh all-day price for RPP customers, covering TOU and Tiered users across Ontario.

✅ Applies 24 hours daily at 8.2 cents per kWh for 21 days

✅ Covers residential, small business, and farm RPP customers

✅ Valid for TOU and Tiered plans set by the Ontario Energy Board

 

 The Ontario government has announced electricity relief with electricity prices set at the off-peak price of 8.2 cents per kilowatt-hour, 24 hours per day for 21 days starting January 18, 2022, until the end of day February 7, 2022, for all Regulated Price Plan customers. The off-peak rate will apply automatically to residential, small businesses and farms who pay Time-of-Use or Tiered prices set by the Ontario Energy Board.

This rate relief includes extended off-peak rates to support small businesses, as well as workers and families spending more time at home while the province is in Modified Step Two of the Roadmap to Reopen.

As part of our mandate, we set the rates that your utility charges for the electricity you use in your home or small business. These rates appear on the Electricity line of your bill, and we administer protections such as disconnection moratoriums for residential customers. We also set the Delivery rates that cover the cost to deliver electricity to most residential and small business customers.

 

Types of electricity rates

For residential and small business customers that buy electricity from their utility, there are two different types of rates (also called prices here), and Ontario also provides stable electricity pricing for larger users. The Ontario Energy Board sets both once a year on November 1:

Time-of-Use (TOU)

With TOU prices, the price depends on when you use electricity, including options like ultra-low overnight pricing that encourage off-peak use.

There are three TOU price periods:

  • Off-peak, when demand for electricity is lowest and new offerings like the Ultra-Low Overnight plan can encourage shifting usage. Ontario households use most of their electricity – nearly two thirds of it – during off-peak hours.
  • Mid-peak, when demand for electricity is moderate. These periods are during the daytime, but not the busiest times of day, and utilities like BC Hydro are exploring similar TOU structures as well.
  • On-peak, when demand for electricity is generally higher. These are the busier times of day – generally when people are cooking, starting up their computers and running heaters or air conditioners.

 

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Growing pot sucks up electricity and pumps out an astounding amount of carbon dioxide — it doesn't have to

Sustainable Cannabis Cultivation leverages greenhouse design, renewable energy, automation, and water recapture to cut electricity use, emissions, and pesticides, delivering premium yields with natural light, smart sensors, and efficient HVAC and irrigation control.

 

Key Points

A data-driven, low-impact method that cuts energy, water, and chemicals while preserving premium yields.

✅ 70-90% less electricity vs. conventional indoor grows

✅ Natural light, solar, and rainwater recapture reduce footprint

✅ Automation, sensors, and HVAC stabilize microclimates

 

In the seven months since the Trudeau government legalized recreational marijuana use, licensed producers across the country have been locked in a frenetic race to grow mass quantities of cannabis for the new market.

But amid the rush for scale, questions of sustainability have often taken a back seat, and in Canada, solar adoption has lagged in key sectors.

According to EQ Research LLC, a U.S.-based clean-energy consulting firm, cannabis facilities can need up to 150 kilowatt-hours of electricity per year per square foot. Such input is on par with data centres, which are themselves 50 to 200 times more energy-intensive than a typical office building, and achieving zero-emission electricity by 2035 would help mitigate the associated footprint.

At the Lawrence Berkley National Laboratory in California, a senior scientist estimated that one per cent of U.S. electricity use came from grow ops. The same research — published in 2012 — also found that the procedures for refining a kilogram of weed emit around 4,600 kilograms of carbon dioxide to the atmosphere, equivalent to operating three million cars for a year, though a shift to zero-emissions electricity by 2035 could substantially cut those emissions.

“All factors considered, a very large expenditure of energy and consequent ‘environmental imprint’ is associated with the indoor cultivation of marijuana,” wrote Ernie Small, a principal research scientist for Agriculture and Agri-Food Canada, in the 2018 edition of the Biodiversity Journal.

Those issues have left some turning to technology to try to reduce the industry’s footprint — and the economic costs that come with it — even as more energy sources make better projects for forward-looking developers.

“The core drawback of most greenhouse environments is that you’re just getting large rooms, which are harder to control,” says Dan Sutton, the chief executive officer of Tantalus Labs., a B.C.-based cannabis producer. “What we did was build a system specifically for cannabis.”

Sutton is referring to SunLab, the culmination of four years of construction, and at present the main site where his company nurtures rows of the flowering plant. The 120,000-square foot structure was engineered for one purpose: to prove the merits of a sustainable approach.

“We’re actually taking time-series data on 30 different environmental parameters — really simple ones like temperature and humidity — all the way down to pH of the soil and water flow,” says Sutton. “So if the temperature gets a little too cold, the system recognizes that and kicks on heaters, and if the system senses that the environment is too hot in the summertime, then it automatically vents.”

A lot is achieved without requiring much human intervention, he adds. Unlike conventional indoor operations, SunLab demands up to 90 per cent less electricity, avoids using pesticides, and draws from natural light and recaptured rainwater to feed its crops.

The liquid passes through a triple-filtration process before it is pumped into drip irrigation tubing. “That allows us to deliver a purity of water input that is cleaner than bottled water,” says Sutton.

As transpiration occurs, a state-of-the-art, high-capacity airflow suspended below the ceiling cycles air at seven-minute intervals, repeatedly cooling the air and preventing outbreaks of mould, while genetically modified “guardian” insects swoop in to eliminate predatory pests.

“When we first started, people never believed we would cultivate premium quality cannabis or cannabis that belongs on the top shelf, shoulder to shoulder with the best in the world and the best of indoor,” says Sutton.

Challenges still exist, but they pale in comparison to the obstacles that American companies with an interest in adopting greener solutions persistently face, and in provinces like Alberta, an Alberta renewable energy surge is reshaping the opportunity set.

Although cannabis is legal in a number of states, it remains illegal federally, which means access to capital and regulatory clarity south of the border can be difficult to come by.

“Right now getting a new project built is expensive to do because you can’t get traditional bank loans,” says Canndescent CEO Adrian Sedlin, speaking by phone from California.

In retrofitting the company’s farm to accommodate a sizeable solar field, he struggled to secure investors, even as a solar-powered cannabis facility in Edmonton showcased similar potential.

“We spent over a year and a half trying to get it financed,” says Sedlin. “Finding someone was the hard part.”

Decriminalizing the drug would ultimately increase the supply of capital and lower the costs for innovative designs, something Sedlin says would help incentivize producers to switch to more effective and ecologically sound techniques.

Some analysts argue that selling renewable energy in Alberta could become a major growth avenue that benefits energy-intensive industries like cannabis cultivation.

Canndescent, however, is already there.

“We’re now harnessing the sun to reduce our reliance on fossil fuels and going to sustainable, or replenishable, energy sources, while leveraging the best and most efficient water practices,” says Sedlin. “It’s the right thing to do.”

 

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Ontario Government Consults On Changes To Industrial Electricity Pricing And Programs

Ontario electricity pricing consultations will gather business input on OEB rate design, Industrial Conservation Initiative, dynamic pricing, global adjustment, and system costs through online feedback and sector-specific in-person sessions province-wide.

 

Key Points

Consultations gathering business input on rates, programs, and OEB policy to improve fairness and reduce system costs.

✅ Consults on ICI, GA, dynamic pricing structures

✅ Seeks views on OEB C&I rate design changes

✅ In-person sessions across key industrial sectors

 

The Ontario government has announced plans to hold consultations to seek input from businesses about industrial electricity pricing and programs. This will be done through Ontario's online consultations directory and though in-person sector-specific consultation sessions across the province. The in-person sessions will be held in all areas of Ontario, and will target "key industries," including automotive and the build-out of electric vehicle charging stations infrastructure, forestry, mining, agriculture, steel, manufacturing and chemicals.

On April 1, 2019, the Ontario government published a consultation notice for this process, confirming that it is looking for input on "electricity rate design, existing tax-based incentives, reducing system costs and regulatory and delivery costs," including related proposals such as the hydrogen rate reduction proposal under discussion. The consultation process includes a list of nine questions for respondents (and presumably participants in the in-person sessions) to address. These include questions about:

The benefits of the Industrial Conservation Initiative (described below), including how it could be changed to improve fairness and industrial competitiveness, and how it could complement programs like the Hydrogen Innovation Fund that support industrial innovation.

Dynamic pricing structures that allow for lower rates in return for responding to price signals versus a flat rate structure that potentially costs more, but is more stable and predictable, as Ontario's energy storage expansion accelerates.

Interest in an all-in commodity contract with an electricity retailer, even if it involves a risk premium.

Interested parties are invited to submit their comments before May 31, 2019.

The government's consultation announcement follows recent developments in the Ontario Energy Board's (OEB) review of electricity ratemaking for commercial and industrial customers, and intertie projects such as the Lake Erie Connector that could affect market dynamics.

In December 2018, the OEB published a paper from its Market Surveillance Panel (MSP) examining the Industrial Conservation Initiative (ICI), and potential alternative approaches. The ICI is a program that allows qualifying large industrial customers to base their global adjustment (GA) payments on their consumption during five peak demand hours in a year. Customers who find ways to reduce consumption at those times, perhaps through DERs and enabling energy storage options, will reduce their electricity costs. This shifts GA costs to other customers. The MSP found that the ICI does not fairly allocate costs to those who cause them and/or benefit from them, and recommends that a better approach should be developed.

In February 2019, the OEB released its Staff Report to the Board on Rate Design for Commercial and Industrial Electricity Customers, setting out recommendations for new rate designs for electricity commercial and industrial (C&I) rate classes as Ontario increasingly turns to battery storage to meet rising demand. As described in an earlier post, the Staff Report includes recommendations to: (i) establish a fixed distribution charge for commercial customers with demands under 10 kW; (ii) implement a demand charge (rather than the current volumetric charge) for C&I customers with demands between 10kW and 50kW; and (iii) introduce a "capacity reserve charge" for customers with load displacement generation to replace stand-by charges and provide for recognition of the benefits of this generation on the system. The OEB held a stakeholder information session in mid-March on this initiative, and interested parties are now filing submissions in response to the Staff Report.

Whether and how the OEB's processes will fit together with the government's consultation process remains to be seen.

 

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