New York needs power plants

By Knight Ridder Tribune


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How's this for an inconvenient truth: Someday soon, when you flip the light switch, the power might not come on.

That's where we're headed if public and political attitudes toward power plants and transmission lines don't change, according to energy industry types gathered at the Orange County Chamber of Commerce's headquarters.

"We are in serious energy trouble," said Jerry Kremer, chairman of the New York Affordable Reliable Electricity Alliance, a trade association. Without additions to the power supply, New York state's power grid won't meet federal reliability criteria by 2011 or 2012, according to the New York Independent System Operator, which runs New York's grid.

Since the state's Article X power plant siting law lapsed a couple years ago, it's been considerably more difficult for power producers to build new plants, said Kremer, who helped author Article X when he was a state assemblyman. These days, it's virtually impossible to secure a permit for a plant through a local planning board, said Gavin Donohue, president of the trade group Independent Power Producers of New York. "The level of NIMBYism in this state is at an all-time high," he said.

Kremer, Donohue and others are lobbying to reinstate Article X. They're also calling for the renewal of the licenses for the Indian Point nuclear plant. In their hour-plus of remarks, none of the panelists discussed the proposed New York Regional Interconnection, a power line that would run through several mid-Hudson communities.

When pressed on the issue, Kremer said his group would like to see the power line built, but doesn't have a position on the route it should take.

He said it's up to "good people with good intentions" to get together and find an acceptable route. All of the panelists acknowledged the roles that conservation and renewable energy can play in averting an energy crisis, but most were skeptical of the notion that green initiatives alone will solve the problem.

John Maserjian of Central Hudson Gas & Electric Corp. outlined his company's efforts to promote conservation, such as planned incentives for customers who install efficient appliances and compact, fluorescent light bulbs. He pointed out that appliances might be getting more efficient, but we're running more of them.

As a result, the utility's customers are using 15 percent more electricity per household than they were a decade ago, Maserjian said.

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Electricity Shut-Offs in a Pandemic: How COVID-19 Leads to Energy Insecurity, Burdensome Bills

COVID-19 Energy Burden drives higher electricity bills as income falls, intensifying energy poverty, utility shut-offs, and affordability risks for low-income households; policy moratoriums, bill relief, and efficiency upgrades are vital responses.

 

Key Points

The COVID-19 energy burden is the rising share of income spent on energy as bills increase and earnings decline.

✅ Rising home demand and lost wages increase energy cost share.

✅ Mandated shut-off moratoriums and reconnections protect health.

✅ Fund assistance, efficiency, and solar for LMI households.

 

I have asthma. It’s a private piece of medical information that I don’t normally share with people, but it makes the potential risks associated with exposure to the coronavirus all the more dangerous for me. But I’m not alone. 107 million people in the U.S. have pre-existing medical conditions like asthma and heart disease; the same pre-existing conditions that elevate their risk of facing a life-threatening situation were we to contract COVID-19. There are, however, tens of millions more house-bound Americans with a condition that is likely to be exacerbated by COVID-19: The energy burden.

The energy burden is a different kind of pre-existing condition:
In the last four weeks, 22 million people filed for unemployment. Millions of people will not have steady income (or the healthcare tied to it) to pay rent and utility bills for the foreseeable future which means that thousands, possibly millions of home-bound Americans will struggle to pay for energy.

Your energy burden is the amount of your monthly income that goes to paying for energy, like your monthly electric bill. So, when household energy use increases or income decreases, your energy burden rises. The energy burden is not a symptom of the pandemic and the economic downturn; it is more like a pre-existing condition for many Americans.

Before the coronavirus outbreak, I shared a few maps that showed how expensive electricity is for some. The energy burden in most pronounced in places already struggling economically, like in Appalachia, where residents in some counties must put more than 30 percent of their income toward their electric bills, and in the Midwest where states such as Michigan have some families spending more than 1/5 of their income on energy bills. The tragic facts are that US families living below the poverty line are far more likely to also be suffering from their energy burden.

But like other pre-existing conditions, the impacts of the coronavirus pandemic are exacerbating the underlying problems afflicting communities across the country.

Critical responses to minimize the spread of COVID-19 are social distancing, washing hands frequently, covering our faces with masks and staying at home. More time at home for most will drive up energy bills, and not by a little. Estimates on how much electricity demand during COVID-19 will increase vary but I’ve seen estimates as high as a 20% increase on average. For some families that’s a bag of groceries or a refill on prescription medication.

What happens when the power gets turned off?
Under normal conditions, if you cannot pay your electric bill your electricity can get turned off. This can have devastating consequences. Most states have protections for health and medical reasons and some states have protections during extreme heat or cold weather. But enforcement of those protections can vary by utility service area and place unnecessary burdens on the customer.

UCS
Only Florida has no protections of any kind against utility shut-offs when health or medical reasons would merit protection against it. However, when it comes to protection against extreme heat, only a few states have mandatory protections based on temperature thresholds.

The NAACP has also pointed out that utilities have unceremoniously disconnected the power of millions of people, disproportionally African-American and Latinx households.

April tends to be a mild month for most of the country, but the South already had its first heat wave at the end of March. If this pandemic lasts into the summer, utility disconnects could become deadly, and efforts to prevent summer power outages will be even more critical to public health. In the summer, during extreme summer heat families can’t turn off the A/C and go to the movies if we are following public health measures and sheltering in place. Lots of families that don’t have or can’t afford to run A/C would otherwise gather at local community pools, beaches, or in cooling centers, but with parks, pools and community groups closed to prevent the virus’s spread, what will happen to these families in July or August?

But we won’t have to wait till the summer to see how families will be hard hit by falling behind on bills and losing power. Here are a few ways electricity disconnection policies cause people harm during the pandemic:

Loss of electricity during the COVID-19 pandemic means families will lose their ability to refrigerate essential food supplies.
Child abuse guidance discusses how unsanitary household conditions are a contributing factor to child protective services involvement. Unsanitary household conditions can include, for example, rotting food (which might happen if electricity is cut off).

HUD’s handbook on federally subsidized housing includes a chapter on termination, which says that lease agreements can be terminated for repeated minor infractions including failing to pay utilities.
Airway machines used to treat respiratory ailments—pre-existing conditions in this pandemic—will not work. Our elderly neighbors in particular might rely on medicine that requires refrigeration or medical equipment that requires electricity. They too have fallen victim to utility shut-offs even during the pandemic.

Empowering solutions are available today

Decisionmakers seeking solutions can look to implement utility shut off moratoriums as a good start. Good news is that many utilities have voluntarily taken action to that effect, and New Jersey and New York have suspended shut-offs, one of the best trackers on who is taking what action has been assembled by Energy Policy Institute.

But voluntary actions do not always provide comprehensive protection, and they certainly have not been universally adopted across the country. Some utilities are waiving fees as relief measures, and some moratoriums only apply to customers directly affected by COVID-19, which will place additional onerous red tape on households that are stricken and perhaps unable to access testing. Others might only be an extension of standard medical shut off protections. Moratoriums put in place by voluntary action can also be revoked or lifted by voluntary action, which does not provide any sense of certainty to people struggling to make ends meet.

This is why the US needs mandatory moratoriums on all utility disconnections. These normally would be rendered at the state level, either by a regulatory commission, legislative act, or even an emergency executive order. But the inconsistent leadership among states in response to the COVID-19 crisis suggests that Congressional action is needed to ensure that all vulnerable utility customers are protected. That’s exactly what a coalition of organizations, including UCS, is calling for in future federal aid legislation. UCS has called for a national moratorium on utility shut-offs.

And let’s be clear, preventing new shut-offs isn’t enough. Cutting power off at residence during a pandemic is not good public policy. People who are without electricity should have it restored so residents can safely shelter in place and help flatten the curve. So far, only Colorado and Wisconsin’s leadership has taken this option.

Addressing the root causes of energy poverty
Preventing shut-offs is a good first step, but the increased bill charges will nevertheless place greater economic pressure on an incalculable number of families. Addressing the root of the problem (energy affordability) must be prioritized when we begin to recover from the health and economic ramifications of the COVID-19 pandemic.

One way policymakers can do that is to forgive outstanding balances on utility bills, perhaps with an eligibility cap based on income. Additional funds could be made available to those who are still struggling to pay their bills via capping bills, waiving late payment fees, automating payment plans or other protective measures that rightfully place consumers (particularly vulnerable consumers) at the center of any energy-related COVID-19 response. Low-and-moderate-income energy efficiency and solar programs should be funded as much as practically possible.

New infrastructure, particularly new construction that is slated for public housing, subsidized housing, or housing specifically marketed for low- and moderate-income families, should include smart thermostats, better insulation, and energy-efficient appliances.

Implementing these solutions may seem daunting, let us not forget that one of the best ways to ease people’s energy burden is to keep a utility’s overall energy costs low. That means state utility commissions must be vigilant in utility rate cases and fuel recovery cost dockets to protect people facing unfathomable economic pressures. Unscrupulous utilities have been known to hide unnecessary costs in our energy bills. Commissions and their staff are overwhelmed at this time, but they should be applying extra scrutiny during proceedings when utilities are recovering costs associated with delivering energy.

What might a utility try to get past the commission?
Well, residential demand is up, so for many people, bills will increase. However, wholesale electricity rates are low right now, in some cases at all-time lows. Why? Because industrial and commercial demand reductions (from social distancing at home) have more than offset residential demand increases. Overall US electricity demand is flat or declining, and supply/demand economics predicts that when demand decreases, prices decrease.

At the same time, natural gas prices have set record lows each month of this year and that’s a trend that is expected to hold true for a while.

Low demand plus low gas prices mean wholesale market prices are incredibly low. Utilities should be taking advantage of low market prices to ensure that they deliver electricity to customers at as low a cost as possible. Utilities must also NOT over-run coal plants uneconomically or lean on aging capacity despite disruptions in coal and nuclear that can invite brownouts because that will not only needlessly cost customers more, but it will also increase air pollution which will exacerbate respiratory issues and susceptibility to COVID-19, according to a recent study published by Harvard.

 

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California scorns fossil fuel but can't keep the lights on without it

California fossil fuel grid reliability plan addresses heat wave demand, rolling blackouts, and grid stability by temporarily procuring gas generation while accelerating renewables, storage, and transmission to meet clean energy and carbon-neutral targets by 2045.

 

Key Points

A stop-gap policy to prevent blackouts by buying fossil power while fast-tracking renewables, storage, and grid upgrades.

✅ Temporary procurement of gas to avoid rolling blackouts

✅ Accelerates renewables, storage, transmission permitting

✅ Aims for carbon neutrality by 2045 without new gas plants

 

California wants to quit fossil fuels. Just not yet Faced with a fragile electrical grid and the prospect of summertime blackouts, the state agreed to put aside hundreds of millions of dollars to buy power from fossil fuel plants that are scheduled to shut down as soon as next year.

That has prompted a backlash from environmental groups and lawmakers who say Democratic Gov. Gavin Newsom’s approach could end up extending the life of gas plants that have been on-track to close for more than a decade and could threaten the state’s goal to be carbon neutral by 2045.

“The emphasis that the governor has been making is ‘We’re going to be Climate Leaders; we’re going to do 100 percent clean energy; we’re going to lead the nation and the world,’” said V. John White, executive director of the Sacramento-based Center for Energy Efficiency and Renewable Technologies, a non-profit group of environmental advocates and clean energy companies. “Yet, at least a part of this plan means going the opposite direction.”

That plan was a last-minute addition to the state’s energy budget, which lawmakers in the Democratic-controlled Legislature reluctantly passed. Backers say it’s necessary to avoid the rolling blackouts like the state experienced during a heat wave in 2020. Critics see a muddled strategy on energy, and not what they expected from a nationally ambitious governor who has made climate action a centerpiece of his agenda.

The legislation, which some Democrats labeled as “lousy” and “crappy,” reflects the reality of climate change. Heat waves are already straining power capacity, and the transition to cleaner energy isn’t coming fast enough to meet immediate needs in the nation’s most populous state.

Officials have warned that outages would be possible this summer, as the grid faces heat wave tests again, with as many as 3.75 million California homes losing power in a worst-case scenario of a West-wide heat wave and insufficient electrical supplies, particularly in the evenings.

It’s also an acknowledgment of the political reality that blackout politics are hazardous to elected officials, even in a state dominated by one party.

Newsom emphasized that the money to prop up the power grid, part of a larger $4.3 billion energy spending package, is meant as a stop-gap measure. The bill allows the Department of Water Resources to spend $2.2 billion on “new emergency and temporary generators, new storage systems, clean generation projects, and funding on extension of existing generation operations, if any occur,” the governor said in a statement after signing the bill.

“Action is needed now to maintain reliable energy service as the State accelerates the transition to clean energy,” Newsom said.

Following the signing, the governor called for the state California Air Resources Board to add a set of ambitious goals to its 2022 Scoping Plan, which lays out California’s path for reducing carbon emissions.

Among Newsom’s requested changes is a move away from fossil fuels, asking state agencies to prepare for an energy transition that avoids the need for new natural gas plants.

Alex Stack, a spokesman for the governor, said in a statement that California has been a global leader in reducing pollution and exporting energy policies across Western states, and pointed to Newsom’s recent letter to the Air Resources Board as well as one sent to President Joe Biden outlining how states can work with the federal government to combat climate change.

“California took action to streamline permitting for clean energy projects to accelerate the build out of clean energy that is needed to meet our climate goals and help maintain reliability in the face of extreme heat, wildfires, and drought,” Stack said.

But the prospect of using state money on fossil fuel power, even in the short term, has raised ire among the state’s many environmental advocacy groups, and raised questions about whether California will be able to achieve its goals.

“What is so frustrating about an energy bill like this is that we are at crunch time to meet these goals,” said Mary Creasman, CEO of California Environmental Voters. “And we’re investing a scale of funding into things that exacerbate those goals.”
 
Emmanuelle Chriqui and Mary Creasman speak during the 2021 Environmental Media Association IMPACT Summit at Pendry West Hollywood on September 2, 2021 in West Hollywood, California. | Jesse Grant/Getty Images for Environmental Media Association

With climate change-induced drought and high temperatures continuing to ravage the West, California anticipates the demand on the grid will only continue to grow. Despite more than a decade of bold posturing and efforts to transition to solar, wind and hydropower, the state worries it doesn’t have enough renewable energy sources on hand to keep the power on in an emergency right now, amid a looming shortage that will test reliability.

The specter of power outages poses a hazard to Newsom, and Democrats in general, especially ahead of November. While the governor is widely expected to sail to reelection, rolling blackouts are a serious political liability — in 2003, they were the catalyst for recalling Democratic Gov. Gray Davis. A lack of power isn’t just about people sweating in the dark, said Steven Maviglio, a longtime Democratic consultant who served as communications director for Davis, it can affect businesses, travel and have an outsized impact on the economy.

It behooves any state official to keep the power on, but, unlike Davis, Newsom is under serious pressure to make sure the state also adheres to its climate goals.

“Gavin Newsom’s brand is based on climate change and clean air, so it’s a little more difficult for him to say ‘well that’s not as important as keeping the power on,’” Maviglio said.

The same bill effectively ends local government control over those projects, for the time being. It hopes to speed up the state’s production of renewable energy sources by giving exclusive authority over the siting of those projects to a single state agency for the next seven years.

Environmental advocates say the state is now scrambling to address an issue they’ve long known was coming. In 2010, California officials set a schedule to retire a number of coastal gas plants that rely on what’s known as once-through cooling systems, which are damaging to the environment, especially marine life, even as regulators weigh more power plants to maintain reliability today. Many of those plants have been retired since 2010, but others have received extensions.

The remaining plants have various deadlines for when they must cease operations, with the soonest being the end of 2023.

Also at issue is the embattled Diablo Canyon nuclear power plant, California’s largest electricity source. The Pacific Gas & Electric-owned plant is scheduled to close in 2025, but the strain on the grid has officials considering the possibility of seeking an extension. Newsom said earlier this spring he would be open to extending the life of the plant. Doing so would also require federal approval.

Al Muratsuchi stands and talks into a microphone with a mask on. 
Assemblyman Al Muratsuchi speaks during an Assembly session in Sacramento, Calif., on Jan. 31, 2022. | Rich Pedroncelli/AP Photo

The International Brotherhood of Electrical Workers 1245, a labor union, sees the energy package as a way to preserve Diablo Canyon, and jobs at the plant.

“The value to 1245 PG&E members at Diablo Canyon is clear — funding to keep the plant open,” the union said of the bill.

Assemblymember Al Muratsuchi (D-Los Angeles) criticized the bill as “crappy” when it came to the floor in late June, describing it as “a rushed, unvetted and fossil-fuel-heavy response” to the state’s need to bolster the grid.

“The state has had over 12 years to procure and bring online renewable energy generation to replace these once through cooling gas power plants,” Muratsuchi said. “Yet, the state has reneged on its promise to shut down these plants, not once, but twice already.”

Not all details of the state’s energy budget are final. Lawmakers still have $3.8 billion to allocate when they return on Aug. 1 for the final stretch of the year.

Creasman, at California Environmental Voters, said she wants lawmakers to set specific guidelines for how and where it will spend the $2.2 billion when they return in August to dole out the remaining money in the budget. Newsom and legislators also need to ensure that this is the last time California has to spend money on fossil fuel, she said.

“Californians deserve to see what the plan is to make sure we’re not in this position again of having to choose between making climate impacts worse or keeping our lights on,” Creasman said. “That’s a false choice.”

 

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Longer, more frequent outages afflict the U.S. power grid as states fail to prepare for climate change

Power Grid Climate Resilience demands storm hardening, underground power lines, microgrids, batteries, and renewable energy as regulators and utilities confront climate change, sea level rise, and extreme weather to reduce outages and protect vulnerable communities.

 

Key Points

It is the grid capacity to resist and recover from climate hazards using buried lines, microgrids, and batteries.

✅ Underground lines reduce wind outages and wildfire ignition risk.

✅ Microgrids with solar and batteries sustain critical services.

✅ Regulators balance cost, resilience, equity, and reliability.

 

Every time a storm lashes the Carolina coast, the power lines on Tonye Gray’s street go down, cutting her lights and air conditioning. After Hurricane Florence in 2018, Gray went three days with no way to refrigerate medicine for her multiple sclerosis or pump the floodwater out of her basement.

What you need to know about the U.N. climate summit — and why it matters
“Florence was hell,” said Gray, 61, a marketing account manager and Wilmington native who finds herself increasingly frustrated by the city’s vulnerability.

“We’ve had storms long enough in Wilmington and this particular area that all power lines should have been underground by now. We know we’re going to get hit.”

Across the nation, severe weather fueled by climate change is pushing aging electrical systems past their limits, often with deadly results. Last year, amid increasing nationwide blackouts, the average American home endured more than eight hours without power, according to the U.S. Energy Information Administration — more than double the outage time five years ago.

This year alone, a wave of abnormally severe winter storms caused a disastrous power failure in Texas, leaving millions of homes in the dark, sometimes for days, and at least 200 dead. Power outages caused by Hurricane Ida contributed to at least 14 deaths in Louisiana, as some of the poorest parts of the state suffered through weeks of 90-degree heat without air conditioning.

As storms grow fiercer and more frequent, environmental groups are pushing states to completely reimagine the electrical grid, incorporating more grid-scale batteries, renewable energy sources and localized systems known as “microgrids,” which they say could reduce the incidence of wide-scale outages. Utility companies have proposed their own storm-proofing measures, including burying power lines underground.

But state regulators largely have rejected these ideas, citing pressure to keep energy rates affordable. Of $15.7 billion in grid improvements under consideration last year, regulators approved only $3.4 billion, according to a national survey by the NC Clean Energy Technology Center — about one-fifth, highlighting persistent vulnerabilities in the grid nationwide.

After a weather disaster, “everybody’s standing around saying, ‘Why didn’t you spend more to keep the lights on?’ ” Ted Thomas, chairman of the Arkansas Public Service Commission, said in an interview with The Washington Post. “But when you try to spend more when the system is working, it’s a tough sell.”

A major impediment is the failure by state regulators and the utility industry to consider the consequences of a more volatile climate — and to come up with better tools to prepare for it. For example, a Berkeley Lab study last year of outages caused by major weather events in six states found that neither state officials nor utility executives attempted to calculate the social and economic costs of longer and more frequent outages, such as food spoilage, business closures, supply chain disruptions and medical problems.

“There is no question that climatic changes are happening that directly affect the operation of the power grid,” said Justin Gundlach, a senior attorney at the Institute for Policy Integrity, a think tank at New York University Law School. “What you still haven’t seen … is a [state] commission saying: 'Isn’t climate the through line in all of this? Let’s examine it in an open-ended way. Let’s figure out where the information takes us and make some decisions.’ ”

In interviews, several state commissioners acknowledged that failure.

“Our electric grid was not built to handle the storms that are coming this next century,” said Tremaine L. Phillips, a commissioner on the Michigan Public Service Commission, which in August held an emergency meeting to discuss the problem of power outages. “We need to come up with a broader set of metrics in order to better understand the success of future improvements.”

Five disasters in four years
The need is especially urgent in North Carolina, where experts warn Atlantic grids and coastlines need a rethink as the state has declared a federal disaster from a hurricane or tropical storm five times in the past four years. Among them was Hurricane Florence, which brought torrential rain, catastrophic flooding and the state’s worst outage in over a decade in September 2018.

More than 1 million residents were left disconnected from refrigerators, air conditioners, ventilators and other essential machines, some for up to two weeks. Elderly residents dependent on oxygen were evacuated from nursing homes. Relief teams flew medical supplies to hospitals cut off by flooded roads. Desperate people facing closed stores and rotting food looted a Wilmington Family Dollar.

“I have PTSD from Hurricane Florence, not because of the actual storm but the aftermath,” said Evelyn Bryant, a community organizer who took part in the Wilmington response.

The storm reignited debate over a $13 billion proposal by Duke Energy, one of the largest power companies in the nation, to reinforce the state’s power grid. A few months earlier, the state had rejected Duke’s request for full repayment of those costs, determining that protecting the grid against weather is a normal part of doing business and not eligible for the type of reimbursement the company had sought.

After Florence, Duke offered a smaller, $2.5 billion plan, along with the argument that severe weather events are one of seven “megatrends” (including cyberthreats and population growth) that require greater investment, according to a PowerPoint presentation included in testimony to the state. The company owns the two largest utilities in North Carolina, Duke Energy Carolinas and Duke Energy Progress.

Vote Solar, a nonprofit climate advocacy group, objected to Duke’s plan, saying the utility had failed to study the risks of climate impacts. Duke’s flood maps, for example, had not been updated to reflect the latest projections for sea level rise, they said. In testimony, Vote Solar claimed Duke was using environmental trends to justify investments “it had already decided to pursue.”

The United States is one of the few countries where regulated utilities are usually guaranteed a rate of return on capital investments, even as studies show the U.S. experiences more blackouts than much of the developed world. That business model incentivizes spending regardless of how well it solves problems for customers and inspires skepticism. Ric O’Connell, executive director of GridLab, a nonprofit group that assists state and regional policymakers on electrical grid issues, said utilities in many states “are waving their hands and saying hurricanes” to justify spending that would do little to improve climate resilience.

In North Carolina, hurricanes convinced Republicans that climate change is real

Duke Energy spokesman Jeff Brooks acknowledged that the company had not conducted a climate risk study but pointed out that this type of analysis is still relatively new for the industry. He said Duke’s grid improvement plan “inherently was designed to think about future needs,” including reinforced substations with walls that rise several feet above the previous high watermark for flooding, and partly relied on federal flood maps to determine which stations are at most risk.

Brooks said Duke is not using weather events to justify routine projects, noting that the company had spent more than a year meeting with community stakeholders and using their feedback to make significant changes to its grid improvement plan.

This year, the North Carolina Utilities Commission finally approved a set of grid improvements that will cost customers $1.2 billion. But the commission reserved the right to deny Duke reimbursement of those costs if it cannot prove they are prudent and reasonable. The commission’s general counsel, Sam Watson, declined to discuss the decision, saying the commission can comment on specific cases only in public orders.

The utility is now burying power lines in “several neighborhoods across the state” that are most vulnerable to wide-scale outages, Brooks said. It is also fitting aboveground power lines with “self-healing” technology, a network of sensors that diverts electricity away from equipment failures to minimize the number of customers affected by an outage.

As part of a settlement with Vote Solar, Duke Energy last year agreed to work with state officials and local leaders to further evaluate the potential impacts of climate change, a process that Brooks said is expected to take two to three years.

High costs create hurdles
The debate in North Carolina is being echoed in states across the nation, where burying power lines has emerged as one of the most common proposals for insulating the grid from high winds, fires and flooding. But opponents have balked at the cost, which can run in the millions of dollars per mile.

In California, for example, Pacific Gas & Electric wants to bury 10,000 miles of power lines, both to make the grid more resilient and to reduce the risk of sparking wildfires. Its power equipment has contributed to multiple deadly wildfires in the past decade, including the 2018 Camp Fire that killed at least 85 people.

PG&E’s proposal has drawn scorn from critics, including San Jose Mayor Sam Liccardo, who say it would be too slow and expensive. But Patricia Poppe, the company’s CEO, told reporters that doing nothing would cost California even more in lost lives and property while struggling to keep the lights on during wildfires. The plan has yet to be submitted to the state, but Terrie Prosper, a spokeswoman for the California Public Utilities Commission, said the commission has supported underground lines as a wildfire mitigation strategy.

Another oft-floated solution is microgrids, small electrical systems that provide power to a single neighborhood, university or medical center. Most of the time, they are connected to a larger utility system. But in the event of an outage, microgrids can operate on their own, with the aid of solar energy stored in batteries.

In Florida, regulators recently approved a four-year microgrid pilot project, but the technology remains expensive and unproven. In Maryland, regulators in 2016 rejected a plan to spend about $16 million for two microgrids in Baltimore, in part because the local utility made no attempt to quantify “the tangible benefits to its customer base.”

Amid shut-off woes, a beacon of energy

In Texas, where officials have largely abandoned state regulation in favor of the free market, the results have been no more encouraging. Without requirements, as exist elsewhere, for building extra capacity for times of high demand or stress, the state was ill-equipped to handle an abnormal deep freeze in February that knocked out power to 4 million customers for days.

Since then, Berkshire Hathaway Energy and Starwood Energy Group each proposed spending $8 billion to build new power plants to provide backup capacity, with guaranteed returns on the investment of 9 percent, but the Texas legislature has not acted on either plan.

New York is one of the few states where regulators have assessed the risks of climate change and pushed utilities to invest in solutions. After 800,000 New Yorkers lost power for 10 days in 2012 in the wake of Hurricane Sandy, state regulators ordered utility giant Con Edison to evaluate the state’s vulnerability to weather events.

The resulting report, which estimated climate risks could cost the company as much as $5.2 billion by 2050, gave ConEd data to inform its investments in storm hardening measures, including new storm walls and submersible equipment in areas at risk of flooding.

Meanwhile, the New York Public Service Commission has aggressively enforced requirements that utility companies keep the lights on during big storms, fining utility providers nearly $190 million for violations including inadequate staffing during Tropical Storm Isaias in 2020.

“At the end of the day, we do not want New Yorkers to be at the mercy of outdated infrastructure,” said Rory M. Christian, who last month was appointed chair of the New York commission.

The price of inaction
In North Carolina, as Duke Energy slowly works to harden the grid, some are pursuing other means of fostering climate-resilient communities.

Beth Schrader, the recovery and resilience director for New Hanover County, which includes Wilmington, said some of the people who went the longest without power after Florence had no vehicles, no access to nearby grocery stores and no means of getting to relief centers set up around the city.

For example, Quanesha Mullins, a 37-year-old mother of three, went eight days without power in her housing project on Wilmington’s east side. Her family got by on food from the Red Cross and walked a mile to charge their phones at McDonald’s. With no air conditioning, they slept with the windows open in a neighborhood with a history of violent crime.

Schrader is working with researchers at the University of North Carolina in Charlotte to estimate the cost of helping people like Mullins. The researchers estimate that it would have cost about $572,000 to provide shelter, meals and emergency food stamp benefits to 100 families for two weeks, said Robert Cox, an engineering professor who researches power systems at UNC-Charlotte.

Such calculations could help spur local governments to do more to help vulnerable communities, for example by providing “resilience outposts” with backup power generators, heating or cooling rooms, Internet access and other resources, Schrader said. But they also are intended to show the costs of failing to shore up the grid.

“The regulators need to be moved along,” Cox said.

In the meantime, Tonye Gray finds herself worrying about what happens when the next storm hits. While Duke Energy says it is burying power lines in the most outage-prone areas, she has yet to see its yellow-vested crews turn up in her neighborhood.

“We feel,” she said, “that we’re at the end of the line.”

 

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Global CO2 emissions 'flatlined' in 2019, says IEA

2019 Global CO2 Emissions stayed flat, IEA reports, as renewable energy growth, wind and solar deployment, nuclear output, and coal-to-gas switching in advanced economies offset increases elsewhere, supporting climate goals and clean energy transitions.

 

Key Points

33 gigatonnes, unchanged YoY, as advanced economies cut power emissions via renewables, gas, and nuclear.

✅ IEA reports emissions flat at 33 Gt despite 2.9% GDP growth

✅ Advanced economies cut power-sector CO2 via wind, solar, gas

✅ Nuclear restarts and mild weather aided reductions

 

Despite widespread expectations of another increase, global energy-related CO2 emissions stopped growing in 2019, according to International Energy Agency (IEA) data released today. After two years of growth, global emissions were unchanged at 33 gigatonnes in 2019, a notable marker in the global energy transition narrative even as the world economy expanded by 2.9%.

This was primarily due to declining emissions from electricity generation in advanced economies, thanks to the expanding role of renewable sources (mainly wind and solar across many markets), fuel switching from coal to natural gas, and higher nuclear power generation, the Paris-based organisation says in the report.

"We now need to work hard to make sure that 2019 is remembered as a definitive peak in global emissions, not just another pause in growth," said Fatih Birol, the IEA's executive director. "We have the energy technologies to do this, and we have to make use of them all."

Higher nuclear power generation in advanced economies, particularly in Japan and South Korea, avoided over 50 Mt of CO2 emissions. Other factors included milder weather in several countries, and slower economic growth in some emerging markets. In China, emissions rose but were tempered by slower economic growth and higher output from low-carbon sources of electricity. Renewables continued to expand in China, and 2019 was also the first full year of operation for seven large-scale nuclear reactors in the country.

A significant decrease in emissions in advanced economies in 2019 offset continued growth elsewhere. The USA recorded the largest emissions decline on a country basis, with a fall of 140 million tonnes, or 2.9%. US emissions are now down by almost 1 gigatonne from their peak in 2000. Emissions in the European Union fell by 160 million tonnes, or 5%, in 2019 driven by reductions in the power sector as electricity producers move away from coal in the generation mix. Japan’s emissions fell by 45 million tonnes, or around 4%, the fastest pace of decline since 2009, as output from recently restarted nuclear reactors increased.

Emissions in the rest of the world grew by close to 400 million tonnes in 2019, with almost 80% of the increase coming from countries in Asia where coal-fired power generation continued to rise, and in Australia emissions rose 2% due to electricity and transport. Coal-fired power generation in advanced economies declined by nearly 15%, reflecting a sharp fall in coal-fired electricity across multiple markets, as a result of growth in renewables, coal-to-gas switching, a rise in nuclear power and weaker electricity demand.

The IEA will publish a World Energy Outlook Special Report in June that will map out how to cut global energy-related carbon emissions by one-third by 2030 and put the world on track for longer-term climate goals, a pathway that, in Canada, will require more electricity to hit net-zero. It will also hold an IEA Clean Energy Transitions Summit in Paris on 9 July, bringing together key government ministers, CEOs, investors and other major stakeholders.

Birol will discuss the results published today tomorrow at an IEA Speaker Series event at its headquarters with energy and climate ministers from Poland, which hosted COP24 in Katowice; Spain, which hosted COP25 in Madrid; and the UK, which will host COP26 in Glasgow this year, as greenhouse gas concentrations continue to break records worldwide.

 

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UK peak power prices rise to second highest level since 2018

UK Peak Power Prices surged as low wind speeds forced National Grid to rely on gas-fired plants and coal generation, amid soaring wholesale gas prices and weak wind generation during the energy crisis.

 

Key Points

UK Peak Power Prices are electricity costs at peak hours, driven by wind output, gas reliance, and market dynamics.

✅ Spikes when wind generation drops and demand rises.

✅ Driven by gas-fired plants, coal backup, and wholesale gas prices.

✅ Moderate as wind output recovers and interconnectors supply.

 

Low wind speeds pushed peak hour power prices to the second highest level for at least three years on Monday, a move consistent with UK electricity prices hitting a 10-year high earlier this year, as Britain’s grid was forced to increase its reliance on gas-fired power plants and draw on coal generation.

Calm weather this year has exacerbated the energy price crisis in the UK, as gas-fired power stations have had to pick up the slack from wind farms. Energy demand has surged as countries open up from pandemic restrictions, which together with lower supplies from Russia to western Europe, has sent wholesale gas prices soaring.

Power prices in the UK for the peak evening period between 5pm and 6pm on Monday surpassed £2,000 per megawatt hour, only the second time they have exceeded that level in recent years.

This was still below the levels reached at the height of the gas price crisis in mid-September, when they hit £2,500/MWh, according to the energy consultancy Cornwall Insight, whose records date back to 2018.

Low wind speeds were the main driver behind Monday’s price spike, although expectations of a pick-up in wind generation on Tuesday, after recent record wind generation days, should push them back down to similar levels seen in recent weeks, analysts said.

Despite the expansion of renewables, such as wind and solar, over the past decade, with instances of wind leading the power mix in recent months, gas remains the single biggest source of electricity generation in Britain, typically accounting for nearly 40 per cent of output.

At lunchtime on Monday, gas-fired power plants were producing nearly 55 per cent of electricity, while coal accounted for 3 per cent, reflecting more power from wind than coal in 2016 milestones. Britain’s wind farms were contributing 1.67 gigawatts or just over 4 per cent, according to data from the Drax Electrics Insights website. Over the past 12 months, wind farms have produced 21 per cent of the UK’s electricity on average.

National Grid, which manages the UK’s electricity grid, has been forced on a number of occasions in recent months to ask coal plants to fire up to help offset the loss of wind generation, after issuing a National Grid short supply warning to the market. The government announced in June that it planned to bring forward the closure of the remaining coal stations to the end of September 2024.

Ministers also committed this year to making Britain’s electricity grid “net zero carbon” by 2035, and milestones such as when wind was the main source underline the transition, although some analysts have pointed out that would not signal the end of gas generation.

Since the start of the energy crisis in August, 20 energy suppliers have gone bust as they have struggled to secure the electricity and gas needed to supply customers at record wholesale prices, with further failures expected in coming weeks.

Phil Hewitt, director of the consultancy EnAppSys, said Monday’s high prices would further exacerbate pressures on those energy suppliers that do not have adequate hedging strategies. “This winter is a good time to be a generator,” he added.

Energy companies including Orsted of Denmark and SSE of the UK have reported some of the lowest wind speeds for at least two decades this year, even though record output during Storm Malik highlighted the system's volatility.

According to weather modelling group Vortex, the strength of the wind blowing across northern Europe has fallen by as much as 15 per cent on average in places this year, which some scientists suggest could be due to climate change.
 

 

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Texas Utilities back out of deal to create smart home electricity networks

Smart Meter Texas real-time pricing faces rollback as utilities limit on-demand reads, impacting demand response, home area networks, ERCOT wholesale tracking, and thermostat automation, reducing efficiency gains promised through deregulation and smart meter investments.

 

Key Points

A plan linking smart meters to ERCOT prices, enabling near real-time usage alignment and automated demand response.

✅ Twice-hourly reads miss 15-minute ERCOT price spikes.

✅ Less than 1% of 7.3M meters use HAN real-time features.

✅ Limits hinder automation for HVAC, EV charging, and pool pumps.

 

Utilities made a promise several years ago when they built Smart Meter Texas that they’d come up with a way for consumers to monitor their electricity use in real time. But now they’re backing out of the deal with the approval of state regulators, leaving in the lurch retail power companies that are building their business model on the promise of real time pricing and denying consumers another option for managing their electricity costs.

Texas utilities collected higher rates to finance the building of a statewide smart meter network that would allow customers to track their electricity use and the quickly changing prices on wholesale power markets almost as they happened. Some retailers are building electricity plans around this promise, providing customers with in-home devices that would eventually track pricing minute-by-minute and allow them to automatically turn down or shut off air conditioners, pool pumps and energy sucking appliances when prices spiked on hot summer afternoons and turn them back on when they prices fell again.

The idea is to help save consumers money by allowing them to shift their electricity consumption to periods when power is cheaper, typically nights and weekends, even as utility revenue in a free-power era remains a debated topic.

“We’re throwing away a large part of (what) ratepayers paid for,” said John Werner, CEO of GridPlus Texas, one of the companies offering consumers a real-time pricing plan that is scheduled to begin testing next month. “They made the smart meters dumb meters.”

When Smart Meter Texas was launched a decade ago by a consortium of the state’s biggest utilities, it was considered an important part of deregulation. The competitive market for electricity held the promise that consumers would eventually have the technology to control their electricity use through a home area network and cut their power bills.

Regulators and legislators also were enticed by the possibility of making the electric system more efficient and relieving pressure on the power grid as consumers responded to high prices and cut consumption when temperatures soared, with ongoing discussions about Texas grid reliability informing policy choices.

One study found that smart meters coupled with smart real time consumption monitors could reduce electricity use between 3 percent and 5 percent, according to Call Me Power, a website sponsored by the European electricity price shopping service Selectra.

But utilities complained that the home area network devices were expensive to install and not used very often, and, with flat electricity demand weighing on growth, they questioned further investment. CenterPoint manager Esther Floyd Kent filed an affidavit with the commission in May that it costs the utility about $30,000 annually to support the network devices, plus maintenance.

Over a six-year period, CenterPoint paid $124,500, or about $20,000 a year, to maintain the system. As of April, there were only 4,067 network devices in CenterPoint’s service area, meaning the utility pays about $30.70 each year to maintain each device.

Centerpoint last year generated $9.6 billion in revenues and earned a $1.8 billion profit, according to its financial filings. CenterPoint officials did not respond to requests for comment.

Other utilities that are part of the Smart Meter consortium also complained to the Public Utility Commission that, up to now, the system hasn’t developed. All told, Texas has 7.3 million meters connected to Smart Meter Texas, but less than 1 percent are using the networking functions to track real-time prices and consumption, according to the testimony of Donny R. Helm, director of technology strategy and architecture for the state’s largest utility Oncor Electric Delivery Co. in Dallas.

The isssue was resolved recently through a settlement agreement that limits on-demand readings to twice an hour that Smart Meter Texas must provide customers. The price of power changes every 15 minutes, so a twice an hour reading may miss some price spikes.

The Public Utility Commission signed off on the deal, and so did several other groups including several retail electricity providers and the Office of Public Utility Counsel which represents residential customers and small businesses.

Michele Gregg, spokeswoman for the Public Utility Counsel, testified in December that the consumer advocate supported the change because widespread use of the networks never materialized. Catherine Webking, an Austin lawyer who represents the Texas Energy Association for Marketers, a group of retail electric providers, said she believes the deal was a reasonable resolution of providing the benefits of Smart Meter Texas while not incurring too much cost.

But Griddy, an electricity provider that offers customers the opportunity to pay wholesale power prices, which also issued a plea to customers during a price surge, said the state hasn’t given the smart-meter networks a chance and could miss out on its potential. Griddy was counting on the continued adoption of real time pricing as the next step for customers wanting to control their electricity costs.

Right now, Griddy sends out price alerts from the grid operator Electric Reliability Council of Texas so businesses like hotels can run washers and dryers when electricity prices are cheapest. But the company was counting on a smart-meter program that would allow customers to track wholesale prices and manage consumption themselves, making Griddy’s offerings attractive to more people.

Wholesale prices are generally cheaper than retail prices, but they can fluctuate widely, especially when the Texas power grid faces another crisis during extreme weather. Last year, wholesale prices averaged less than 3 cents per kilowatt hour, much lower than than retail rates that now are running above 11 cents, but they can spike at times of high demand to as much as $9 a kilowatt hour.

What customers want is to be able to use energy when it’s cheapest, said Greg Craig, Griddy’s CEO, and they want to do it automatically. They want to be able to program their thermostat so that if the price rises they can shut off their air conditioning and if the price falls, they can charge their electric-powered vehicle.

Griddy customers may still save money even without real time data, he said. But they won’t be able to see their usage in real time or see how much they’re spending.

“The big utilities have big investments in the existing way and going to real time and more transparency isn’t really in their best interest,” said Craig.

 

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