Wheatland couple turns to wind for electrical needs

By Appeal-Democrat


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Two miles west of Wheatland on Spenceville Road, among the rolling hills leading to the Sierra Nevada, a 60-foot tall wind turbine peaks over the horizon.

The owners of the steel pole with a white propellor, Perrie and Janice Costa, said the wind power generated from the turbine will eliminate their electric bill and, they hope, power two electric cars.

"I love windy days, " Perrie Costa said, gleefully pointing to the turbine.

After years of discussion and research, the Costas decided to invest in the alternative energy source six months ago.

Their location is ideal, said Scott Jackson, president of Powershacks, Inc., an alternative energy company out of Chico. He said the 5 acres of land they live on is located in a class-two wind area, which means they get an average wind of 11 mph.

Jackson said most residential wind turbines would begin generating power at 8 or 9 mph, but the new model installed at the Costas' home will turn at 3 mph.

"When others are just getting started, this turbine will be generating half the power it's capable of," Jackson said. The turbine is manufactured by ReDriven, a company in Ontario, Canada.

Because of the capacity to generate 20 kilowatts of electricity, Perrie Costa said they went with a larger turbine to be sure there is enough power for their home, and when they purchase electric cars.

"It's my gas station," he said with a smile.

Though they are guinea pigs for this turbine — Jackson said only one other turbine of its kind was located in the United States before this one was installed — the Costas said they are still deciding on the type of electric car to purchase because the technology has not been fully developed, yet.

The Costas said they are spending $600 a month on gas alone, which is why they'd like to buy an electric car. Perrie and Janice commute to work in Roseville and Marysville, respectively.

If the price of gas continues to drop, though, Perrie Costa said they will purchase one electric vehicle instead of two.

They estimate their electricity bill to range between $200 and $300 each month. Gas and electric bills will both be eliminated as a result of the turbine, the Costas said.

Unused power from the turbine will go to PG&E. The couple chose a state rebate program that enourages alternative energy uses. The Costas, who will get $37,000 from the state, could have entered into a 20-year contract to sell the extra power to the utility company.

The couple also said they considered a combination of solar and wind, but found the turbine to be a better investment.

From purchase to installation, it took the Costas roughly six months to get the wind turbine functioning. Power to the turbine was officially hooked up October 27. They plan to hold a special opening ceremony Wednesday to mark the occasion.

While the Costas are a success story as one of the first residential turbines in Yuba County, 30 miles to the north, Roger Austin has been waiting more than a year to cut his power bill by 75 percent with a slightly smaller turbine.

Austin's project has been stalled since he found out the conditional use permit necessary for the 5-kilowatt turbine would cost $5,000.

The Costas, who happened to be located in a different planning zone than Austin, paid just $500 for their tower.

"It's the same county," Jackson said. "It doesn't make sense."

Jackson said the Costas are in agricultural/rural residential zone, which does not require a special use permit. Austin, however, is located in a strictly agriculture zone, which does require the permit.

Perrie Costa said he was aware of the permit fees Austin faced, but the couple wanted to look into the energy alternative anyway.

"If it cost $5,000, we would've done it," Costa said.

Because of Austin's difficulties, Jackson said he was given permission by the Loma Rica man to resell his turbine.

"He was just running in so many circles," Jackson said.

Austin appealed to the Board of Supervisors twice to have the permit fees lowered, but his request was left unanswered.

"They got into a political arm wrestling match," Jackson said.

Yuba County planning department officials have said any changes to permit fees or zoning would require supervisors' approval.

Sitting in a chair against her blue barn, Janice Costa enjoyed the view she had of her new turbine.

"It is pretty amazing," she said. "I can hardly wait until the meter begins to say that we are delivering power to PG&E, rather than receiving it."

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Newsom Vetoes Bill to Codify Load Flexibility

California Governor Gavin Newsom vetoed a bill aimed at expanding load flexibility in state grid planning, citing conflicts with California’s resource adequacy framework and concerns over grid reliability and energy planning uncertainty.

 

Why has Newsom vetoed the Bill to Codify Load Flexibility?

Governor Gavin Newsom’s veto blocks legislation that would have required the California Energy Commission to incorporate load flexibility into the state’s energy planning and policy framework, a move that has stirred debate across the clean energy sector.

✅ Argues the bill conflicts with California’s existing Resource Adequacy system

✅ Draws backlash from clean energy and grid modernization advocates

✅ Exposes ongoing tension over how to manage renewable integration and demand response

 

California Governor Gavin Newsom has vetoed Assembly Bill 44, which would have required the California Energy Commission to evaluate and incorporate load management mechanisms into the state’s energy planning process. The move drew criticism from clean energy advocates who say it undermines efforts to strengthen grid reliability and reduce costs.

The bill directed the commission to adopt “upfront technical requirements and load modification protocols” that would allow load-serving entities to adjust their electrical demand forecasts. Proponents viewed this as a way to modernize California’s grid management, and to explore a revamp of electricity rates to help clean the grid, making it more responsive to demand fluctuations and renewable energy variability.

In his veto statement, Newsom said the bill was incompatible with existing energy planning frameworks, even as a looming electricity shortage remains a concern. “While I support expanding electric load flexibility, this bill does not align with the California Public Utility Commission’s Resource Adequacy framework,” he said. “As a result, the requirements of this bill would not improve electric grid reliability planning and could create uncertainty around energy resource planning and procurement processes.”

Newsom’s decision comes shortly after he signed a broad package of energy legislation that set the stage for a regional Western electricity market and extended the state’s cap-and-trade program. However, that legislative package did not include continued funding for several key grid reliability programs — including what advocates have called the world’s largest virtual power plant, a distributed network of connected devices that can balance electricity demand in real time.

Clean energy supporters saw AB 44 as a crucial step toward integrating these distributed energy resources into long-term grid planning. “With Assembly Bill 44 being vetoed, the state has missed a huge opportunity to advance common-sense policy that would have lowered costs, strengthened the grid, and unlocked the full potential of advanced energy,” said Edson Perez, California lead at Advanced Energy United.

Perez added that the setback increases pressure on lawmakers to take stronger action in the next legislative session. “The pressure is on next session to ensure that California is using all tools in its policy toolbox to build critically needed infrastructure, strengthen the grid, and bring costs down,” he said.

California’s growing use of demand response programs and virtual power plants has been central to its strategy for managing grid stress during heat waves and wildfire seasons. These systems allow utilities and customers to temporarily reduce or shift energy use, helping to prevent blackouts and reduce the need for fossil-fuel peaker plants during peak demand.

A recent report by the Brattle Group found that California’s taxpayer-funded virtual power plant could save ratepayers $206 million between 2025 and 2028 while reducing reliance on gas generation. The study, commissioned by Sunrun and Tesla Energy, highlighted the potential for flexible load management to improve both grid reliability and reduce costs, even as regulators weigh whether the state needs more power plants to ensure reliability.

Despite these findings, Newsom’s veto signals continued tension between state policymakers and clean energy advocates over how best to modernize California’s power grid. While the governor has prioritized large-scale renewable development and regional market integration, critics argue that California’s climate policy choices risk exacerbating reliability challenges and that failing to codify load flexibility could slow progress toward a more adaptive, resilient, and affordable clean energy future.

 

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FortisAlberta Takes Necessary Precautions to Provide Electricity Service for Alberta

FortisAlberta COVID-19 response delivers safe electricity distribution across Alberta, with remote monitoring, 24/7 support, outage alerts, dispersed crews, and business continuity measures to sustain essential services for customers and communities.

 

Key Points

Plan ensuring reliable electricity in Alberta through 24/7 support, remote monitoring, outage alerts, and dispersed crews.

✅ 24/7 customer support via 310-WIRE and mobile app

✅ Remote monitoring and rapid outage restoration

✅ Dispersed crews in 50 communities for faster response

 

As the COVID-19 pandemic continues to evolve in Alberta (and around the world), FortisAlberta is taking the necessary actions and precautions informed by utility disaster planning to protect the health and well-being of its employees and to provide electricity service to its customers. FortisAlberta serves more than half a million customers with the electricity they depend on to take care of their families and community members throughout our province.

"We recognize these are challenging times as while most Albertans are asked to stay home others continue to work in the community to provide essential services, including utility workers in Ontario demonstrating support efforts. As your electricity distribution provider, please be assured you can count on us to do what we do best – provide our customers with safe and reliable electricity service wherever and whenever they need it," says Michael Mosher, FortisAlberta President and CEO.

FortisAlberta is proud to be a part of the communities it serves and commits to keeping the lights on for its customers. The company is providing a full range of services for its customers and has instilled best practices within critical parts of its business. The company's control centre continues to remotely monitor, control, and restore, where possible, the delivery of power across the entire province, including during events such as an Alberta grid alert that stress the system. Early in March, FortisAlberta implemented its business continuity plan and the company remains fully accessible to customers 24/7 by phone at 310-WIRE (9473) or through its mobile app where customers can report outages online or view details of an outage. Customers can also sign up for outage alerts to their mobile phone and/or email address to let them know if an outage does occur.

FortisAlberta's power line employees are geographically dispersed across 50 different communities so they can quickly address any issues that may arise. The company has implemented work from home measures and isolation best practices, and is planning for potential on-site lockdowns where necessary to ensure no disruption to customers.

FortisAlberta will continue to remain in close communication with its stakeholders to provide updates to customers and with industry associations to share guidance specific to the electricity sector, including insights on the evolving U.S. grid response to COVID-19 from peer utilities. FortisAlberta will also continue to invest in and empower its communities by contributing to organizations that offer programs and services aligned with the greatest needs in the communities it serves.

With the Alberta Government's recent announcement to provide relief to eligible Albertans by deferring electricity and gas charges for up to 90 days, similar to some B.C. relief measures being implemented, FortisAlberta is committed to working with stakeholders and retail partners to ensure this option is available to customers quickly and efficiently, and to learn from initiatives like the Hydro One relief fund that support customers.

 

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Here's what we know about the mistaken Pickering nuclear alert one week later

Pickering Nuclear Alert Error prompts Ontario investigation into the Alert Ready emergency alert system, Pelmorex safeguards, and public response at Pickering Nuclear Generating Station, including potassium iodide orders and geo-targeted notification issues.

 

Key Points

A mistaken Ontario emergency alert about the Pickering plant, now under probe for human error and system safeguards.

✅ Investigation led by Emergency Management Ontario

✅ Alert Ready and Pelmorex safeguards under review

✅ KI pill demand surged; geo-targeting questioned

 

A number of questions still remain a week after an emergency alert was mistakenly sent out to people across Ontario warning of an unspecified incident at the Pickering Nuclear Generating Station. 

The province’s solicitor general has stepped in and says an investigation into the incident should be completed fairly quickly according to the minister.

However, the nuclear scare has still left residents on edge with tens of thousands of people ordering potassium iodide, or KI, pills that protect the body from radioactive elements in the days following the incident.

Here’s what we know and still don’t know about the mistaken Pickering nuclear plant alert:

Who sent the alert?

According to the Alert Ready Emergency Alert System website, the agency works with several federal, provincial and territorial emergency management officials, Environment and Climate Change Canada and Pelmorex, a broadcasting industry and wireless service provider, to send the alerts.

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.

Last Sunday, a follow-up alert was sent to cellphones nearly two hours after the original notification, and during separate service disruptions such as a power outage in London residents also sought timely information.

What has the investigation revealed?

It’s still unclear as to how exactly the alert was sent in error, but Solicitor General Sylvia Jones has tapped the Chief of Emergency Management Ontario to investigate.

"It's very important for me, for the people of Ontario, to know exactly what happened on Sunday morning," Jones said.

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

“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,” Jones said.

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

Can you unsubscribe from emergency alerts?

It’s not possible to opt out of receiving the alerts, according to the Alert Ready Emergency Alert System website, and Ontario utilities warn about scams to help customers distinguish official notices.

“Given the importance of warning Canadians of imminent threats to the safety of life and property, the CRTC requires wireless service providers to distribute alerts on all compatible wireless devices connected to an LTE network in the target area,” the website reads.

The agency explains that unlike radio and TV broadcasting, the wireless public alerting system is geo-targeted and is specific to the a “limited area of coverage”, and examples like an Alberta grid alert have highlighted how jurisdictions tailor notices for their systems.

“As a result, if an emergency alert reaches your wireless device, you are located in an area where there is an imminent danger.”

The Pickering alert, however, was received by people from as far as Ottawa to Windsor.

Is the Pickering Nuclear Generating Station closing?

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, and in contingency planning operators have considered locking down key staff to maintain reliability, generates 14 per cent of Ontario's electricity and is responsible for 4,500 jobs across the region, according to OPG, while utilities such as Hydro One's relief programs have supported customers during broader crises.

What should I do if I receive an emergency alert?

Alert Ready says that if you received an alert on your wireless device it’s important to take action “safely”.

“Stop what you are doing when it is safe to do so and read the emergency alert,” the agency says on their website.

“Alerting authorities will include within the emergency alert the information you need and guidance for any action you are required to take, and insights from U.S. grid pandemic response underscore how critical infrastructure plans intersect with public safety.”

“This could include but is not limited to: limit unnecessary travel, evacuate the areas, seek shelter, etc.”

The wording of last Sunday's alert caused much initial confusion, 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.

 

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EPA Policy to limit telework emerges during pandemic

EPA Telework Policy restricts remote work, balancing work-from-home guidance during the COVID-19 pandemic with flexible schedules, union contracts, OMB guidance, and federal workforce rules, impacting managers, SES staff, and non-bargaining employees nationwide.

 

Key Points

A directive limiting many EPA staff to two telework days weekly, with pandemic exceptions and flexible schedules.

✅ Limits telework to two days per week for many employees

✅ Allows flexible schedules, including maxiflex, during emergencies

✅ Aligns with OMB, OPM, CDC guidance; honors union agreements

 

EPA has moved forward on a new policy that would restrict telework even as agency leadership has encouraged staff to work from home during the coronavirus outbreak.

The new EPA order obtained by E&E News would require employees to report to the office at least three days every week.

"Full-time employees are expected to report to the official worksite and duty station a minimum of three (3) days per week," says the order, dated as approved on Feb. 27. It went into effect March 15 — that night, EPA Administrator Andrew Wheeler authorized telework for the entire agency due to the pandemic.

The order focuses on EPA employees' work schedules and gives them new flexibilities that could come in handy during a public health emergency like the COVID-19 virus, when parts of the power sector consider on-site staffing to ensure continuity.

It also stipulates a deep reduction in EPA employees' capability to work remotely, leaving them with two days of telework per week. An agency order on telework, issued in January 2016, said staff could telework full time.

"The EPA supports the use of telework," said that order. "Regular telework may range from one day per pay period up to full time."

An EPA spokeswoman said the new order doesn't change the agency's guidance to staff to work from home during the pandemic.

"The health and safety of our employees is our top priority, and that is why we have requested that all employees telework, even as residential electricity use increases with more people at home, until at least April 3. There is no provision in the work schedules policy, telework policy or collective bargaining agreement that limits this request," said the spokeswoman.

"While EPA did implement the national work schedule policy effective 3/15/2020, it was implemented in order to provide increased work schedule flexibilities for non-bargaining unit employees who were not previously afforded flexible schedules, including maxiflex," she added.

"The implementation of the policy does not currently impact telework opportunities for EPA employees, and EPA has strongly encouraged all staff to telework," she said.

Still, the new order has caused consternation among EPA employees.

One EPA manager described it as another move by the Trump administration to restrict telework across the government.

"Amidst the COVID-19 crisis, this policy seems particularly ill-timed and unwise. It doesn't even give the administration the chance to evaluate the situation once the COVID-19 pandemic passes," said the manager.

"I think this is a dramatic change in the flexibilities available to the EPA employees without any data to support such a drastic move," the manager said. "It has huge ramifications for employees, many of whom commute over an hour each way to the office, increasing air pollution in the process."

Another EPA staffer said, "I honestly think such an order, given current circumstances, would elicit little more than a scoff and a smirk."

The person added, "How tone-deaf and heavy-handed can one administration be?"

Inside EPA first reported on the new order. E&E News obtained the memo independently.

The recently issued policy applies only to non-bargaining-unit employees, including "full-time and part-time" agency staff as well as "supervisors and managers in the competitive, excepted, Senior Level, Scientific and Professional, and Senior Executive Service positions."

In addition, the order covers "Public Health Service Officers, Schedule C, Administratively Determined employees and non-EPA employees serving on Intergovernmental Personnel Act assignments to EPA."

Nevertheless, EPA employees covered under union contracts must adhere to those contracts if the policy runs counter to them.

"If provisions of this order conflict with the provisions of a collective bargaining agreement, the provisions of the agreement must be applied," the order says.

EPA has taken a more restrictive approach with the agency's largest union, American Federation of Government Employees Council 238, which represents about 7,500 EPA employees. EPA imposed a contract on the council's bargaining unit employees last July that limited them to one day of telework per week, among other changes that triggered union protests.

EPA and AFGE have since relaunched contract negotiations, and how to handle telework is one of the issues under discussion. Both sides committed to complete those bargaining talks by April 15 and work with the Federal Service Impasses Panel if needed (Greenwire, Feb. 27).

 

Both sides of the telework debate
EPA's new order has been under consideration for some time.

E&E News obtained a draft version last year. The agency had circulated it for comment in July, noting the proposal "limits the number of days an employee may telework per week," among other changes (Greenwire, Sept. 12, 2019).

EPA, like other federal agencies under the Trump administration, has sought to reduce employees' telework. That effort, though, has run into the headwinds of a global pandemic, with a U.S. grid warning highlighting broader risks, leading agency leaders to reverse course and now encourage staff to work remotely in order to stop the spread of the COVID-19 virus.

Wheeler in an email last week told staff that he authorized telework for employees across the country. Federal worker unions had sought the opportunity for remote work on behalf of EPA employees, and the agency had already relaxed telework policies at various offices the prior week where the coronavirus had begun to take hold.

The EPA spokeswoman said the agency moved toward telework after guidance from other agencies.

"Consistent with [Office of Management and Budget], [Centers for Disease Control and Prevention] and [Office of Personnel Management] guidance, along with state and local directives, we have taken swift action in regions and at headquarters to implement telework for all employees. We continue to tell all employees to telework," said the spokeswoman.

Wheeler said in a later video message that his expectation was most EPA employees were working from home.

"I understand that this is a difficult and scary time for all of us," said the EPA administrator.

The coronavirus has become a real challenge for EPA, and utilities like BC Hydro Site C updates illustrate broader operational adjustments.

Agency staff have been exposed to the virus while some have tested positive, and nuclear plant workers have raised similar concerns, according to internal emails. That has led to employees self-quarantining while their colleagues worry they may next fall ill (Greenwire, March 20).

One employee said that since EPA's operations have been maintained with staff working from home, even as household electricity bills rise for many, it's harder for the Trump administration to justify restricting remote work.

"With the current climate, I think employees have shown we can keep the agency going with nearly 95% teleworking full time. It makes their argument hard to justify in light of things," said the EPA employee.

The Trump administration overall has pushed for more remote work by the federal workforce in the battle with the COVID-19 virus. The Office of Management and Budget issued guidance to agencies last week "to minimize face-to-face interactions" and "maximize telework across the nation."

Lawmakers have also pushed to expand telework for federal workers due to the virus.

Democratic senators sent a letter last week urging President Trump to issue an executive order directing agencies to use telework.

In addition, Sens. James Lankford (R-Okla.), Chris Van Hollen (D-Md.) and Kyrsten Sinema (D-Ariz.) introduced legislation that would allow federal employees to telework full time during the pandemic.

Some worry EPA's new order could further sour morale at the agency after the pandemic passes, as other utilities consider measures like unpaid days off to trim costs. Employees may leave if they can't work from home more.

"People will quit EPA over something like this. Maybe that's the goal," said the EPA manager.

 

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Energize America: Invest in a smarter electricity infrastructure

Smart Grid Modernization unites distributed energy resources, energy storage, EV charging, advanced metering, and bidirectional power flows to upgrade transmission and distribution infrastructure for reliability, resilience, cybersecurity, and affordable, clean power.

 

Key Points

Upgrading grid hardware and software to integrate DERs, storage, and EVs for a reliable and affordable power system.

✅ Enables DER, storage, and EV integration with bidirectional flows

✅ Improves reliability, resilience, and grid cybersecurity

✅ Requires early investment in sensors, inverters, and analytics

 

Much has been written, predicted, and debated in recent years about the future of the electricity system. The discussion isn’t simply about fossil fuels versus renewables, as often dominates mainstream energy discourse. Rather, the discussion is focused on something much larger and more fundamental: the very design of how and where electricity should be generated, delivered, and consumed.

Central to this discussion are arguments in support of, or in opposition to, the traditional model versus that of the decentralized or “emerging” model. But this is a false choice. The only choice that needs making is how to best transition to a smarter grid, and do so in a reliable and affordable manner that reflects grid modernization affordability concerns for utilities today. And the most effective and immediate means to accomplish that is to encourage and facilitate early investment in grid-related infrastructure and technology.

The traditional, or centralized, model has evolved since the days of Thomas Edison, but the basic structure is relatively unchanged: generate electrons at a central power plant, transmit them over a unidirectional system of high-voltage transmission lines, and deliver them to consumers through local distribution networks. The decentralized, or emerging, model envisions a system that moves away from the central power station as the primary provider of electricity to a system in which distributed energy resources, energy storage, electric vehicles, peer-to-peer transactions, connected appliances and devices, and sophisticated energy usage, pricing, and load management software play a more prominent role.

Whether it’s a fully decentralized and distributed power system, or the more likely centralized-decentralized hybrid, it is apparent that the way in which electricity is produced, delivered, and consumed will differ from today’s traditional model. And yet, in many ways, the fundamental design and engineering that makes up today’s electric grid will serve as the foundation for achieving a more distributed future. Indeed, as the transition to a smarter grid ramps up, the grid’s basic structure will remain the underlying commonality, allowing the grid to serve as a facilitator to integrate emerging technologies, including EV charging stations, rooftop solar, demand-side management software, and other distributed energy resources, while maximizing their potential benefits and informing discussions about California’s grid reliability under ambitious transition goals.

A loose analogy here is the internet. In its infancy, the internet was used primarily for sending and receiving email, doing homework, and looking up directions. At the time, it was never fully understood that the internet would create a range of services and products that would impact nearly every aspect of everyday life from online shopping, booking travel, and watching television to enabling the sharing economy and the emerging “Internet of Things.”

Uber, Netflix, Amazon, and Nest would not be possible without the internet. But the rapid evolution of the internet did not occur without significant investment in internet-related infrastructure. From dial-up to broadband to Wi-Fi, companies have invested billions of dollars to update and upgrade the system, allowing the internet to maximize its offerings and give way to technological breakthroughs, innovative businesses, and ways to share and communicate like never before.  

The electric grid is similar; it is both the backbone and the facilitator upon which the future of electricity can be built. If the vision for a smarter grid is to deploy advanced energy technologies, create new business models, and transform the way electricity is produced, distributed, and consumed, then updating and modernizing existing infrastructure and building out new intelligent infrastructure need to be top priorities. But this requires money. To be sure, increased investment in grid-related infrastructure is the key component to transitioning to a smarter grid; a grid capable of supporting and integrating advanced energy technologies within a more digital grid architecture that will result in a cleaner, more modern and efficient, and reliable and secure electricity system.

The inherent challenges of deploying new technologies and resources — reliability, bidirectional flow, intermittency, visibility, and communication, to name a few, as well as emerging climate resilience concerns shaping planning today, are not insurmountable and demonstrate exactly why federal and state authorities and electricity sector stakeholders should be planning for and making appropriate investment decisions now. My organization, Alliance for Innovation and Infrastructure, will release a report Wednesday addressing these challenges facing our infrastructure, and the opportunities a distributed smart grid would provide. From upgrading traditional wires and poles and integrating smart power inverters and real-time sensors to deploying advanced communications platforms and energy analytics software, there are numerous technologies currently available and capable of being deployed that warrant investment consideration.

Making these and similar investments will help to identify and resolve reliability issues earlier, and address vulnerabilities identified in the latest power grid report card findings, which in turn will create a stronger, more flexible grid that can then support additional emerging technologies, resulting in a system better able to address integration challenges. Doing so will ease the electricity evolution in the long-term and best realize the full reliability, economic, and environmental benefits that a smarter grid can offer.  

 

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Hydro-Quebec begins talks for $185-billion strategy to wean the province off fossil fuels

Hydro-Québec $185-Billion Clean Energy Plan accelerates hydroelectric upgrades, wind power expansion, solar and battery storage, pumped storage, and 5,000 km transmission lines to decarbonize Quebec, boost grid resilience, and attract bond financing and Indigenous partnerships.

 

Key Points

Plan to grow renewables, harden the grid, and fund Quebec's decarbonization with major investments.

✅ $110B new generation, $50B grid resilience by 2035

✅ Triple wind, add solar, batteries, and pumped storage

✅ 5,000 km lines, bond financing, Indigenous partnerships

 

Hydro-Québec is in the preliminary stages of dialogue with various financiers and potential collaborators to strategize the implementation of a $185-billion initiative aimed at transitioning Quebec away from fossil fuel dependency.

As the leading hydroelectric power producer in Canada, Hydro-Québec is set to allocate up to $110 billion by 2035 towards the development of new clean energy facilities, building on its hydropower capacity expansion in recent years, with an additional $50 billion dedicated to enhancing the resilience of its power grid, as revealed in a strategy announced last November. The remainder of the projected expenditure will cover operational costs.

This ambitious initiative has garnered significant interest from the financial sector, with the province's recent electricity for industrial projects also drawing attention, as noted by CEO Michael Sabia during a conference call with journalists where the utility's annual financial outcomes were discussed. Sabia reported receiving various proposals to fund the initiative, though specific partners were not disclosed. He expressed confidence in securing the necessary capital for the project's success.

Sabia highlighted three immediate strategies to increase power output: identifying new sites for hydroelectric projects while upgrading turbines at existing facilities, such as the Carillon Generating Station upgrade now underway for enhanced efficiency, expanding wind energy production threefold, and promoting energy conservation among consumers to optimize current power usage.

Additionally, Hydro-Québec aims to augment its solar and battery energy production and is planning to establish a pumped-storage hydroelectric plant to support peak demand periods. The utility also intends to construct 5,000 kilometers of new transmission lines, address Quebec-to-U.S. transmission constraints where feasible, and is set to double its capital expenditure to $16 billion annually, a significant increase from the investment levels during the James Bay hydropower project construction in the 1970s and 1980s.

To fund part of this expansive plan, Hydro-Québec will continue to access the bond market, having issued $3.7 billion in notes to investors last year despite facing several operational hurdles due to adverse weather conditions.

For the year 2023, Hydro-Québec reported a net income of $3.3 billion, marking a 28% decrease from the previous year's record of $4.56 billion. Factors such as insufficient snow cover, reduced spring runoff, and higher temperatures resulted in lower water levels in reservoirs, leading to a reduction in power exports and a $547-million decrease in external market sales compared to the previous year.

The utility experienced its lowest export volume in a decade but managed to leverage hedging strategies to secure 10.3 cents per kWh for exported power to markets including New Brunswick via recent NB Power agreements that expand interprovincial deliveries, nearly twice the average market rate, through forward contracts that cover up to half of its export volume for about a year in advance.

The success of Sabia's plan will partly depend on the cooperation of First Nations communities, as the proposed infrastructure developments are likely to traverse their ancestral territories. Relationships with some communities are currently tense, exemplified by the Innu of Labrador's $4-billion lawsuit against Hydro-Québec for damages related to land flooding for reservoir construction, and broader regional tensions in Newfoundland and Labrador that persist in the power sector.

Sabia has committed to involving First Nations and Inuit communities as partners in clean energy ventures, offering them ongoing financial benefits rather than one-off settlements, a principle he refers to as "economic reconciliation."

Recently, the Quebec government reached an agreement with the Innu of Pessamit, pledging $45 million to support local community development. This agreement outlines solutions for managing a nearby hydropower reservoir, such as the La Romaine complex in the region, and includes commitments for wind energy development.

Sabia is optimistic about building stronger, more positive relationships with various Indigenous communities, anticipating significant progress in the coming months and viewing this year as a potential milestone in transforming these relationships for the better.

 

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