Hydro One partners with four Ontario colleges

By Canada News Wire


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Hydro One has entered into a partnership with four Community Colleges of Applied Arts and Technology to attract and educate the future employees of the electricity transmission and distribution utility sector.

The company will contribute up to $3 million for scholarships, program development and equipment over four years to Algonquin College (Ottawa), Georgian College (Barrie), Mohawk College (Hamilton) and Northern College (Timmins) for programs that will train people as technicians, technologists and trades positions in the electricity sector.

"We are entering a period of significant demographic change in this company and in this sector," said Laura Formusa, Hydro One President and CEO.

"Up to 30 per cent of our workforce is eligible for retirement in the next few years providing opportunities for people entering the workforce. Partnering with community colleges to train candidates for our trades is part of a comprehensive strategy to meet our staffing needs well into the future."

Hydro One has been conducting ambitious trades apprenticeship programs for several years. Since 2002, more than 560 people have been hired into apprentice jobs in power line technician, utility arborist, truck and coach technician and electrician trades.

In addition to scholarships and equipment donation, the multi-year initiative will include funding for curriculum development. The project will be managed by a Steering Committee with representatives from each of the four colleges and Hydro One. Funding levels will be determined at various stages throughout the project.

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Duke Energy reaffirms capital investments in renewables and grid projects to deliver cleaner energy, economic growth

Duke Energy Clean Energy Strategy advances renewables, battery storage, grid modernization, and energy efficiency to cut carbon, retire coal, and target net-zero by 2050 across the Carolinas with robust IRPs and capital investments.

 

Key Points

Plan to expand renewables, storage, and grid upgrades to cut carbon and reach net-zero electricity by 2050.

✅ 56B investment in renewables, storage, and grid modernization

✅ Targets 50% carbon reduction by 2030 and net-zero by 2050

✅ Retires coal units; expands energy efficiency and IRPs

 

Duke Energy says that the company will continue advancing its ambitious clean energy goals without the Atlantic Coast Pipeline (ACP) by investing in renewables, battery storage, energy efficiency programs and grid projects that support U.S. electrification efforts.

Duke Energy, the nation's largest electric utility, unveils its new logo. (PRNewsFoto/Duke Energy) (PRNewsfoto/Duke Energy)

Duke Energy's $56 billion capital investment plan will deliver significant customer benefits and create jobs at a time when policymakers at all levels are looking for ways to rebuild the economy in 2020 and beyond. These investments will deliver cleaner energy for customers and communities while enhancing the energy grid to provide greater reliability and resiliency.

"Sustainability and the reduction of carbon emissions are closely tied to our region's success," said Lynn Good, Duke Energy Chair, President and CEO. "In our recent Climate Report, we shared a vision of a cleaner electricity future with an increasing focus on renewables and battery storage in addition to a diverse mix of zero-carbon nuclear, natural gas, hydro and energy efficiency programs.

"Achieving this clean energy vision will require all of us working together to develop a plan that is smart, equitable and ensures the reliability and affordability that will spur economic growth in the region. While we're disappointed that we're not able to move forward with ACP, we will continue exploring ways to help our customers and communities, particularly in eastern North Carolina where the need is great," said Good.

Already a clean-energy leader, Duke Energy has reduced its carbon emissions by 39% from 2005 and remains on track to cut its carbon emissions by at least 50% by 2030, as peers like Alliant's carbon-neutral plan demonstrate broader industry momentum toward decarbonization. The company also has an ambitious clean energy goal of reaching net-zero emissions from electricity generation by 2050. 

In September 2020, Duke Energy plans to file its Integrated Resource Plans (IRP) for the Carolinas after an extensive process of working with the state's leaders, policymakers, customers and other stakeholders. The IRPs will include multiple scenarios to support a path to a cleaner energy future in the Carolinas, reflecting key utility trends shaping resource planning.

Since 2010, Duke Energy has retired 51 coal units totaling more than 6,500 megawatts (MW) and plans to retire at least an additional 900 MW by the end of 2024. In 2019, the company proposed to shorten the book lives of another approximately 7,700 MW of coal capacity in North Carolina and Indiana.

Duke Energy will host an analyst call in early August 2020 to discuss second quarter 2020 financial results and other business and financial updates. The company will also host its inaugural Environmental, Social and Governance (ESG) investor day in October 2020.

 

Duke Energy

Duke Energy is transforming its customers' experience, modernizing the energy grid, generating cleaner energy and expanding natural gas infrastructure to create a smarter energy future for the people and communities it serves. The Electric Utilities and Infrastructure unit's regulated utilities serve 7.8 million retail electric customers in six states: North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky. The Gas Utilities and Infrastructure unit distributes natural gas to 1.6 million customers in five states: North Carolina, South Carolina, Tennessee, Ohio and Kentucky. The Duke Energy Renewables unit operates wind and solar generation facilities across the U.S., as well as energy storage and microgrid projects.

Duke Energy was named to Fortune's 2020 "World's Most Admired Companies" list and Forbes' "America's Best Employers" list. More information about the company is available at duke-energy.com. The Duke Energy News Center contains news releases, fact sheets, photos, videos and other materials. Duke Energy's illumination features stories about people, innovations, community topics and environmental issues. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook.

 

Forward-Looking Information

This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on management's beliefs and assumptions and can often be identified by terms and phrases that include "anticipate," "believe," "intend," "estimate," "expect," "continue," "should," "could," "may," "plan," "project," "predict," "will," "potential," "forecast," "target," "guidance," "outlook" or other similar terminology. Various factors may cause actual results to be materially different than the suggested outcomes within forward-looking statements; accordingly, there is no assurance that such results will be realized. These factors include, but are not limited to:

  • The impact of the COVID-19 electricity demand shift on operations and revenues;
  • State, federal and foreign legislative and regulatory initiatives, including costs of compliance with existing and future environmental requirements, including those related to climate change, as well as rulings that affect cost and investment recovery or have an impact on rate structures or market prices;
  • The extent and timing of costs and liabilities to comply with federal and state laws, regulations and legal requirements related to coal ash remediation, including amounts for required closure of certain ash impoundments, are uncertain and difficult to estimate;
  • The ability to recover eligible costs, including amounts associated with coal ash impoundment retirement obligations and costs related to significant weather events, and to earn an adequate return on investment through rate case proceedings and the regulatory process;
  • The costs of decommissioning nuclear facilities could prove to be more extensive than amounts estimated and all costs may not be fully recoverable through the regulatory process;
  • Costs and effects of legal and administrative proceedings, settlements, investigations and claims;
  • Industrial, commercial and residential growth or decline in service territories or customer bases resulting from sustained downturns of the economy and the economic health of our service territories or variations in customer usage patterns, including energy efficiency and demand response efforts and use of alternative energy sources, such as self-generation and distributed generation technologies;
  • Federal and state regulations, laws and other efforts designed to promote and expand the use of energy efficiency measures and distributed generation technologies, such as private solar and battery storage, in Duke Energy service territories could result in customers leaving the electric distribution system, excess generation resources as well as stranded costs;
  • Advancements in technology;
  • Additional competition in electric and natural gas markets and continued industry consolidation;
  • The influence of weather and other natural phenomena on operations, including the economic, operational and other effects of severe storms, hurricanes, droughts, earthquakes and tornadoes, including extreme weather associated with climate change;
  • The ability to successfully operate electric generating facilities and deliver electricity to customers including direct or indirect effects to the company resulting from an incident that affects the U.S. electric grid or generating resources;
  • The ability to obtain the necessary permits and approvals and to complete necessary or desirable pipeline expansion or infrastructure projects in our natural gas business;
  • Operational interruptions to our natural gas distribution and transmission activities;
  • The availability of adequate interstate pipeline transportation capacity and natural gas supply;
  • The impact on facilities and business from a terrorist attack, cybersecurity threats, data security breaches, operational accidents, information technology failures or other catastrophic events, such as fires, explosions, pandemic health events or other similar occurrences;
  • The inherent risks associated with the operation of nuclear facilities, including environmental, health, safety, regulatory and financial risks, including the financial stability of third-party service providers;
  • The timing and extent of changes in commodity prices and interest rates and the ability to recover such costs through the regulatory process, where appropriate, and their impact on liquidity positions and the value of underlying assets;
  • The results of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings, interest rate fluctuations, compliance with debt covenants and conditions and general market and economic conditions;
  • Credit ratings of the Duke Energy Registrants may be different from what is expected;
  • Declines in the market prices of equity and fixed-income securities and resultant cash funding requirements for defined benefit pension plans, other post-retirement benefit plans and nuclear decommissioning trust funds;
  • Construction and development risks associated with the completion of the Duke Energy Registrants' capital investment projects, including risks related to financing, obtaining and complying with terms of permits, meeting construction budgets and schedules and satisfying operating and environmental performance standards, as well as the ability to recover costs from customers in a timely manner, or at all;
  • Changes in rules for regional transmission organizations, including FERC debates on coal and nuclear subsidies and new and evolving capacity markets, and risks related to obligations created by the default of other participants;
  • The ability to control operation and maintenance costs;
  • The level of creditworthiness of counterparties to transactions;
  • The ability to obtain adequate insurance at acceptable costs;
  • Employee workforce factors, including the potential inability to attract and retain key personnel;
  • The ability of subsidiaries to pay dividends or distributions to Duke Energy Corporation holding company (the Parent);
  • The performance of projects undertaken by our nonregulated businesses and the success of efforts to invest in and develop new opportunities;
  • The effect of accounting pronouncements issued periodically by accounting standard-setting bodies;
  • The impact of U.S. tax legislation to our financial condition, results of operations or cash flows and our credit ratings;
  • The impacts from potential impairments of goodwill or equity method investment carrying values; and
  • The ability to implement our business strategy, including enhancing existing technology systems.
  • Additional risks and uncertainties are identified and discussed in the Duke Energy Registrants' reports filed with the SEC and available at the SEC's website at sec.gov. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than described. Forward-looking statements speak only as of the date they are made and the Duke Energy Registrants expressly disclaim an obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

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France Demonstrates the Role of Nuclear Power Plants

France Nuclear Power Strategy illustrates a low-carbon, reliable baseload complementing renewables in the energy transition, enhancing grid reliability, energy security, and emissions reduction, offering actionable lessons for Germany on infrastructure, policy, and public acceptance.

 

Key Points

France's nuclear strategy is a low-carbon baseload model supporting renewables, grid reliability, and energy security.

✅ Stable low-carbon baseload complements intermittent renewables

✅ Enhances grid reliability and national energy security

✅ Requires long-term investment, safety, and waste management

 

In recent months, France has showcased the critical role that nuclear power plants can play in an energy transition, offering valuable lessons for Germany and other countries grappling with their own energy challenges. As Europe continues to navigate its path towards a sustainable and reliable energy system, France's experience with nuclear energy underscores its potential benefits and the complexities involved, including outage risks in France that operators must manage effectively.

France, a long-time proponent of nuclear energy, generates about 70% of its electricity from nuclear power, making it one of the most nuclear-dependent countries in the world. This high reliance on nuclear energy has allowed France to maintain a stable and low-carbon electricity supply, which is increasingly significant as nations aim to reduce greenhouse gas emissions, even as Europe's nuclear capacity declines in several markets, and combat climate change.

Recent events in France have highlighted several key aspects of nuclear power's role in energy transition:

  1. Reliability and Stability: During periods of high renewable energy generation or extreme weather events, nuclear power plants have proven to be a stable and reliable source of electricity. Unlike solar and wind power, which are intermittent and depend on weather conditions, nuclear plants provide a consistent and continuous supply of power. This stability is crucial for maintaining grid reliability and ensuring that energy demand is met even when renewable sources are not producing electricity.

  2. Low Carbon Footprint: France’s commitment to nuclear energy has significantly contributed to its low carbon emissions. By relying heavily on nuclear power, France has managed to reduce its greenhouse gas emissions substantially compared to many other countries. This achievement is particularly relevant as Europe strives to meet ambitious climate targets, with debates over a nuclear option in Germany highlighting climate trade-offs, and reduce overall carbon footprints. The low emissions associated with nuclear power make it an important tool for achieving climate goals and transitioning away from fossil fuels.

  3. Energy Security: Nuclear power has played a vital role in France's energy security. The country’s extensive network of nuclear power plants ensures a stable and secure supply of electricity, reducing its dependency on imported energy sources. This energy security is particularly important in the context of global energy market fluctuations and geopolitical uncertainties. France’s experience demonstrates how nuclear energy can contribute to a nation’s energy independence and resilience.

  4. Economic Benefits: The nuclear industry in France also provides significant economic benefits. It supports thousands of jobs in construction, operation, and maintenance of power plants, as well as in the supply chain for nuclear fuel and waste management. Additionally, the stable and relatively low cost of nuclear-generated electricity can contribute to lower energy prices for consumers and businesses, enhancing economic stability.

Germany, in contrast, has been moving away from nuclear energy, particularly following the Fukushima disaster in 2011. The country has committed to phasing out its nuclear reactors by 2022 and focusing on expanding renewable energy sources such as wind and solar power. While Germany's renewable energy transition has made significant strides, it has also faced challenges related to grid stability, as Germany's energy balancing act illustrates for policymakers, energy storage, and maintaining reliable power supplies during periods of low renewable generation.

France’s experience with nuclear energy offers several lessons for Germany and other nations considering their own energy strategies:

  • Balanced Energy Mix: A diverse energy mix that includes nuclear power alongside renewable sources can help ensure a stable and reliable electricity supply, as ongoing discussions about a nuclear resurgence in Germany emphasize for policymakers today. While renewable energy is essential for reducing carbon emissions, it can be intermittent and may require backup from other sources to maintain grid reliability. Nuclear power can complement renewable energy by providing a steady and consistent supply of electricity.

  • Investment in Infrastructure: To maximize the benefits of nuclear energy, investment in infrastructure is crucial. This includes not only the construction and maintenance of power plants but also the development of waste management systems and safety protocols. France’s experience demonstrates the importance of long-term planning and investment to ensure the safe and effective use of nuclear technology.

  • Public Perception and Policy: Public perception of nuclear energy can significantly impact its adoption and deployment, and ongoing Franco-German nuclear disputes show how politics shape outcomes across borders. Transparent communication, rigorous safety standards, and effective waste management are essential for addressing public concerns and building trust in nuclear technology. France’s successful use of nuclear power is partly due to its emphasis on safety and regulatory compliance.

In conclusion, France's experience with nuclear power provides valuable insights into the role that this technology can play in an energy transition. By offering a stable, low-carbon, and reliable source of electricity, nuclear power complements renewable energy sources and supports overall energy security. As Germany and other countries navigate their energy transitions, France's example underscores the importance of a balanced energy mix, robust infrastructure, and effective public engagement in harnessing the benefits of nuclear power while addressing associated challenges, with industry voices such as Eon boss on nuclear debate underscoring the sensitivity of cross-border critiques.

 

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27 giant parts from China to be transported to wind farm in Saskatchewan

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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Nuclear alert investigation won't be long and drawn out, minister says

Pickering Nuclear False Alert Investigation probes Ontario's emergency alert system after a provincewide cellphone, radio, and TV warning, assessing human error, Pelmorex safeguards, Emergency Management Ontario oversight, and communication delays.

 

Key Points

An Ontario probe into the erroneous Pickering nuclear alert, focusing on human error, system safeguards, and oversight.

✅ Human error during routine testing suspected

✅ Pelmorex safeguards and EMO protocols under review

✅ Two-hour all-clear delay prompts communication fixes

 

An investigation into a mistaken Pickering alert warning of an incident at the Pickering Nuclear Generating Station will be completed fairly quickly, Ontario's solicitor general said.

Sylvia Jones tapped the chief of Emergency Management Ontario to investigate how the alert warning of an unspecified problem at the facility was sent in error to cellphones, radios and TVs across the province at about 7:30 a.m. Sunday.

"It's very important for me, for the people of Ontario, to know exactly what happened on Sunday morning," said Jones. "Having said that, I do not anticipate this is going to be a long, drawn-out investigation. I want to know what happened and equally important, I want some recommendations on insurances and changes we can make to the system to make sure it doesn't happen again."


Initial observations suggest human error was responsible for the alert that was sent out during routine tests of the emergency alert, Jones said.

"This has never happened in the history of the tests that they do every day, twice a day, but I do want to know exactly all of the issues related to it, whether it was one human error or whether it was a series of things."

Martin Belanger, the director of public alerting for Pelmorex, a company that operates the alert system, said there are a number of safeguards built in, including having two separate platforms for training and live alerts.

"The software has some steps and some features built in to minimize that risk and to make sure that users will be able to know whether or not they're sending an alert through the...training platform or whether they're accessing the live system in the case of a real emergency," he said.

Only authorized users have access to the system and the province manages that, Belanger said. Once in the live system, features make the user aware of which platform they are using, with various prompts and messages requiring the user's confirmation. There is a final step that also requires the user to confirm their intent of issuing an alert to cellphones, radio and TVs, Belanger said.

On Sunday, a follow-up alert was sent to cellphones nearly two hours after the original notification, and similar grid alerts in Alberta underscore timing and public expectations.

NDP energy critic Peter Tabuns is critical of that delay, noting that ongoing utility scam warnings can further erode public trust.

"That's a long time for people to be waiting to find out what's really going on," he said. "If people lose confidence in this system, the ability to use it when there is a real emergency will be impaired. That's dangerous."

Treasury Board President Peter Bethlenfalvy, who represents the riding of Pickering-Uxbridge, said getting that alert Sunday morning was "a shock to the system," and he too wants the investigation to address the reason for the all-clear delay.

"We all have a lot of questions," he said. "I think the public has every right to know exactly what went on and we feel exactly the same way."

People in the community know the facility is safe, Bethlenfalvy said.

"We have some of the safest nuclear assets in the world -- the safest -- at 60 per cent of Ontario's electricity," he said.

A poll released Monday found that 82 per cent of Canadians are concerned about spills from nuclear reactors contaminating drinking water and 77 per cent are concerned about neighbourhood safety and security risks for those living close to nuclear plants. Oraclepoll Research surveyed 2,094 people across the country on behalf of Friends of the Earth between Jan. 2 and 12, the day of the false alert. The have a margin of error of plus or minus 2.1 per cent, 19 times out of 20.

The wording of Sunday's alert caused much initial confusion, and events like a power outage in London show how morning disruptions can amplify concern, warning residents within 10 kilometres of the plant of "an incident," though there was no "abnormal" release of radioactivity and residents didn't need to take protective steps, but emergency crews were responding.

In the event of a real emergency, the wording would be different, Jones said.

"There are a number of different alerts that are already prepared and are ready to go," she said. "We have the ability to localize it to the communities that are impacted, but because this was a test, it went provincewide."

Jones said she expects the results of the probe to be made public.

The Pickering nuclear plant has been operating since 1971, and had been scheduled to be decommissioned this year, but the former Liberal government -- and the current Progressive Conservative government -- committed to keeping it open until 2024. Decommissioning is now set to start in 2028.

It operates six CANDU reactors, generates 14 per cent of Ontario's electricity and is responsible for 4,500 jobs across the region, according to OPG, and OPG's credit rating remains stable.

During the COVID-19 pandemic, Hydro One employees supported the Province of Ontario in the fight against COVID-19.

The Green party is calling on the province to use this opportunity to review its nuclear emergency response plan, including pandemic staffing contingencies, last updated in 2017 and subject to review every five years.

Toronto Mayor John Tory praised Ontario for swiftly launching an investigation, but said communication between city and provincial officials wasn't what it should have been under the circumstances.

"It was a poor showing and I think everybody involved knows that," he said. "We've got to make sure it's not repeated."

 

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Electricity users in Newfoundland have started paying for Muskrat Falls

Muskrat Falls rate mitigation offsets Newfoundland Power's rate stabilization decrease as NL Hydro begins cost recovery; Public Utilities Board approval enables collections while Labrador-Island Link nears commissioning, stabilizing electricity rates despite megaproject delays, overruns.

 

Key Points

Muskrat Falls rate mitigation is NL Hydro's cost recovery via power rates to stabilize bills as commissioning nears.

✅ Offsets 6.4% decrease with a 6.1% rate increase

✅ About 6% now funds NL Hydro's rate mitigation

✅ Collections begin as Labrador-Island Link nears commissioning

 

With their July electricity bill, Newfoundland Power customers have begun paying for Muskrat Falls, though a lump-sum credit was also announced to offset costs and bills haven't significantly increased — yet.

In a July newsletter, Newfoundland Power said electricity bills were set to decrease by 6.4 per cent as part of the annual rate stabilization adjustment, which reflects the cost of electricity generation.

Instead, that decrease has been offset by a 6.1 increase in electricity rates so Newfoundland and Labrador Hydro can begin recovering the cost of Muskrat Falls, with a $5.2-billion federal package also underpinning the project, the $13-billion hydroelectric megaproject that is billions over budget and years behind schedule.

That means for residential customers, electricity rates will decrease to 12.346 cents per kilowatt, though the basic customer charge will go up slightly from $15.81 to $15.83. According to an N.L. Hydro spokesperson, about six per cent of electricity bills will now go toward what it calls a "rate mitigation fund." 

N.L. Hydro claims victory in Muskrat Falls arbitration dispute with Astaldi
Software troubles blamed for $260M Muskrat Falls cost increase, with N.L. power rates stable for now
The spokesperson said N.L. Hydro is expecting the rate increase to result in $43 million this year, according to a recent financial update from the energy corporation — a tiny fraction of the project's cost. 

N.L. Hydro asked the Public Utilities Board to approve the rate increase, a process similar to Nova Scotia's recent 14% approval by its regulator, in May. In a letter, Energy, Industry and Technology Minister Andrew Parsons supported the increase, though he asked N.L. Hydro to keep electricity rates "as close to current levels as possible. 

Province modifies order in council
Muskrat Falls is not yet fully online — largely due to software problems with the Labrador-Island Link transmission line — and an order in council dictated that ratepayers on the island of Newfoundland would not begin paying for the project until the project was fully commissioned. 

The provincial government modified that order in council so N.L. Hydro can begin collecting costs associated with Muskrat Falls once the project is "nearing" commissioning.

In June, N.L. Hydro said the project was expected to finally be completed by the end of the year.

In an interview with CBC News, Progressive Conservative interim leader David Brazil said the decision to begin recovering the cost of Muskrat Falls from consumers should have been delayed.

"There was an opportunity here for people to get some reprieve when it came to their electricity bills and this administration chose not to do that, not to help the people while they're struggling," he said.

In a statement, Parsons said reducing the rate was not an option, and would have resulted in increased borrowing costs for Muskrat Falls.

"Reducing the rate for one year to have it increase significantly the following year is not consistent with rate mitigation and also places an increased financial burden on taxpayers one year from now," Parsons said.

Decision 'reasonable': Consumer advocate
Brazil said his party didn't know the payments from Muskrat Falls would start in July, and criticized the government for not being more transparent.

A person wearing a blue shirt and black blazer stands outside on a lawn.
N.L. consumer advocate Dennis Browne says it makes sense to begin recouping the cost of Muskrat Falls. (Garrett Barry/CBC)
Newfoundland and Labrador consumer advocate Dennis Browne said the decision to begin collecting costs from consumers was "reasonable."

"We're into a financial hole due to Muskrat Falls, and what has happened is in order to stabilize rates, we have gone into rate stabilization efforts," he said.

In February, the provincial and federal governments signed a complex agreement to shield ratepayers aimed at softening the worst of the financial impact from Muskrat Falls. Browne noted even with the agreement, the provincial government will have to pay hundreds of millions in order to stabilize electricity rates.

"Muskrat Falls would cost us $0.23 a kilowatt, and that is out of the range of affordability for most people, and that's why we're into rate mitigation," he said. "This was part of a rate mitigation effort, and I accepted it as part of that."

 

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IEA: Electricity investment surpasses oil and gas for the first time

Electricity Investment Surpasses Oil and Gas 2016, driven by renewable energy, power grids, and energy efficiency, as IEA reports lower oil and gas spending, rising solar and wind capacity, and declining coal power plant approvals.

 

Key Points

A 2016 milestone where electricity topped global energy investment, led by renewables, grids, and efficiency, per the IEA.

✅ IEA: electricity investment hit $718b; oil and gas fell to $650b.

✅ Renewables led with $297b; solar and wind unit costs declined.

✅ Coal plant approvals plunged; networks and storage spending rose.

 

Investments in electricity surpassed those in oil and gas for the first time ever in 2016 on a spending splurge on renewable energy and power grids as the fall in crude prices led to deep cuts, the International Energy Agency (IEA) said.

Total energy investment fell for the second straight year by 12 per cent to US$1.7 trillion compared with 2015, the IEA said. Oil and gas investments plunged 26 per cent to US$650 billion, down by over a quarter in 2016, and electricity generation slipped 5 per cent.

"This decline (in energy investment) is attributed to two reasons," IEA chief economist Laszlo Varro told journalists.

"The reaction of the oil and gas industry to the prolonged period of low oil prices which was a period of harsh investment cuts; and technological progress which is reducing investment costs in both renewable power and in oil and gas," he said.

Oil and gas investment is expected to rebound modestly by 3 per cent in 2017, driven by a 53 per cent upswing in U.S. shale, and spending in Russia and the Middle East, the IEA said in a report.

"The rapid ramp up of U.S. shale activities has triggered an increase of U.S. shale costs of 16 per cent in 2017 after having almost halved from 2014-16," the report said.

The global electricity sector, however, was the largest recipient of energy investment in 2016 for the first time ever, overtaking oil, gas and coal combined, the report said.

"Robust investments in renewable energy and increased spending in electricity networks, which supports the outlook that low-emissions sources will cover most demand growth, made electricity the biggest area of capital investments," Varro said.

Electricity investment worldwide was US$718 billion, lifted by higher spending in power grids which offset the fall in power generation investments.

"Investment in new renewables-based power capacity, at US$297 billion, remained the largest area of electricity spending, despite falling back by 3 per cent as clean energy investment in developing nations slipped, the report said."

Although renewables investments was 3 per cent lower than five years ago, capacity additions were 50 per cent higher and expected output from this capacity about 35 per cent higher, thanks to the fall in unit costs and technology improvements in solar PV and wind generation, the IEA said.

 

COAL INVESTMENT IS COMING TO AN END

Investments in coal-fired electricity plants fell sharply. Sanctioning of new coal power plants fell to the lowest level in nearly 15 years, reflecting concerns about local air pollution, and emergence of overcapacity and competition from renewables, with renewables poised to eclipse coal in global power generation, notably in China. Coal investments, however, grew in India.

"Coal investment is coming to an end. At the very least, it is coming to a pause," Varro said.

The IEA report said energy efficiency investments continued to expand in 2016, reaching US$231 billion, with most of it going to the building sector globally.

Electric vehicles sales rose 38 per cent in 2016 to 750,000 vehicles at $6 billion, and represented 10 per cent of all transport efficiency spending. Some US$6 billion was spent globally on electronic vehicle charging stations, the IEA said.

Spending on electricity networks and storage continued the steady rise of the past five years, as surging electricity demand puts power systems under strain, reaching an all-time high of US$277 billion in 2016, with 30 per cent of the expansion driven by China’s spending in its distribution system, the report said.

China led the world in energy investments with 21 per cent of global total share, the report said, driven by low-carbon electricity supply and networks projects.

Although oil and gas investments fell in the United States in 2016, its total energy investments rose 16 per cent, even as Americans use less electricity in recent years, on the back of spending in renewables projects, the IEA report said.

 

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