Heat rebate figures confound senior

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A Lunenburg County senior wants to know why the province has put a wide dollar range on rebate amounts available for electricity and oil heat.

The heating assistance rebate program offers eligible Nova Scotians up to $450 cash back if they heat with oil, propane, or natural gas. Those heating with electricity, wood, coal or wood pellets can get a rebate of up to $150.

The senior said she received the $150 rebate but feels she is incurring higher electricity costs than a neighbour who received the $450 and burns oil for heat.

"I don't understand the difference," said the woman, who didn't want her name published because she didn't want it to seem she was jealous of the amount received by her neighbour.

"We pay more in electric heat than they do with the oil," she said. "Why such a big difference between the two? Why should they get more help they we do?"

Jack O'Connell, president of the Lunenburg County Senior Citizens' Council, said he thinks fluctuating world oil prices may have something to do with the rebate differential.

Service Nova Scotia and Municipal Relations, the department responsible for the program, said that's exactly it.

"At the time the program was created there was drastic increase on a world- wide basis in oil," spokeswoman Deborah Bayer said.

Mr. O'Connell suggested electricity rates had been fairly stable up to this point but noted that figure is going up and oil prices appears to be on the decline.

Nova Scotia Power's 9.3 per cent increase comes into effect in January, meaning about $9 extra will be tacked on to the average power bill.

Mr. O'Connell said general frustration with government is more of the type of talk he hears, not the rebate amounts or the application process.

"I don't find there's that many people talking about it, really." he said.

Ms Bayer said there's no mechanism in place at this point to adjust the maximum available amounts but "we're always evaluating our programs on an ongoing basis."

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'That can keep you up at night': Lessons for Canada from Europe's power crisis

Canada Net-Zero Grid Lessons highlight Europe's energy transition risks: Germany's power prices, wind and solar variability, nuclear phaseout, grid reliability, storage, market design, policy reforms, and distributed energy resources for resilient decarbonization.

 

Key Points

Lessons stress an all-of-the-above mix, robust market design, storage, and nuclear to ensure reliability, affordability.

✅ Diversify: nuclear, hydro, wind, solar, storage for reliability.

✅ Reform markets and grid planning for integration and flexibility.

✅ Build fast: streamline permitting, invest in transmission and DERs.

 

Europe is currently suffering the consequences of an uncoordinated rush to carbon-free electricity that experts warn could hit Canada as well unless urgent action is taken.

Power prices in Germany, for example, hit a record 91 euros ($135 CAD) per megawatt-hour earlier this month. That is more than triple what electricity costs in Ontario, where greening the grid could require massive investment, even during periods of peak demand.

Experts blame the price spikes in large part on a chaotic transition to a specific set of renewable electricity sources - wind and solar - at the expense of other carbon-free supplies such as nuclear power. Germany, Europe’s largest economy, plans to close its last remaining nuclear power plant next year despite warnings that renewables are not being added to the German grid quickly enough to replace that lost supply.

As Canada prepares to transition its own electricity grid to 100 per cent net-zero supplies by 2035, with provinces like Ontario planning new wind and solar procurement, experts say the European power crisis offers lessons this country must heed in order to avoid a similar fate.

'A CAUTIONARY TALE'
“Some countries have rushed their transition without thinking about what people need and when they need it,” said Chris Bentley, managing director of Ryerson University’s Legal Innovation Zone who also served as Ontario’s Minister of Energy from 2011 to 2013, in an interview. “Germany has experienced a little bit of this issue recently when the wind wasn’t blowing.”

Wind power usually provides between 20 and 30 per cent of Germany’s electricity needs, but the below-average breeze across much of continental Europe in recent months has pushed that figure down.

“There is a cautionary tale from the experience in Europe,” said Francis Bradley, chief executive officer of the Canadian Electricity Association, in an interview. “There was also a cautionary tale from what took place this past winter in Texas,” he added, referring to widespread power failures in Texas spawned by a lack of backup power supplies during an unusually cold winter that led to many deaths.

The first lesson Canada must learn from those cautionary tales, Bradley said, “is the need to pursue an all-of-the-above approach.”

“It is absolutely essential that every opportunity and every potential technology for low-carbon or no-carbon electricity needs to be pursued and needs to be pursued to the fullest,” he said.

The more important lesson for Canada, according to Binnu Jeyakumar, is about the need for a more holistic, nuanced approach to our own net-zero transition.

“It is very easy to have runaway narratives that just pinpoint the blame on one or two issues, but the lesson here isn’t really about the reliability of renewables as there are failures that occur across all sources of electricity supply,” said Jeyakumar, director of clean energy for the Pembina Institute, in an interview. 

“The takeaway for us is that we need to get better at learning how to integrate an increasingly diverse electricity grid,” she said. “It is not necessarily the technologies themselves, it is about how we do grid planning, how are our markets structured and are we adapting them to the trends that are evolving in the electricity and energy sectors.”
 

'ABSOLUTELY ENORMOUS' CHALLENGE IS 'ALMOST MIND-BENDING'
Canada already gets the vast majority of its electricity from emission-free sources. Hydro provides roughly 60 per cent of our power, nuclear contributes another 15 per cent and renewables such as wind and solar contribute roughly seven per cent more, according to federal government data.

Tempting as it might be to view the remaining 18 per cent of Canadian electricity that is supplied by oil, natural gas and coal as a small enough proportion that it should be relatively easy to replace, with some analyses warning that scrapping coal abruptly can be costly for consumers, the reality is much more difficult.

“It is the law of diminishing returns or the 80-20 rule where the first 80 per cent is easy but the last 20 per cent is hard,” Bradley explained. “We already have an electricity sector that is 80 per cent GHG-free, so getting rid of that last 20 per cent is the really difficult part because the low-hanging fruit has already been picked.”

Key to successfully decarbonizing Canada’s power grid will be the recognition that electricity demand is constantly growing, a point reinforced by a recent power challenges report that underscores the scale. That means Canada needs to build out enough emission-free power sources to replace existing fossil fuel-based supplies while also ensuring adequate supplies for future demand.


“It is one thing to say that by 2035 we are going to have a decarbonized electricity system, but the challenge really is the amount of additional electricity that we are going to need between now and 2035,” said John Gorman, chief executive officer of the Canadian Nuclear Association, which has argued that nuclear is key to climate goals in Canada, and former CEO of the Canadian Solar Industries Association, in an interview. “It is absolutely enormous, I mean, it is almost mind-bending.”

Canada will need to triple the amount of electricity produced nationwide by 2050, according to a report from SNC-Lavalin published earlier this year, and provinces such as Ontario face a shortfall over the next few years, Gorman said. Gorman said that will require adding between five and seven gigawatts of new installed capacity to Canada’s electricity grid every year from 2021 through 2050 or more than twice the amount of new power supply Canada brings online annually right now.

For perspective, consider Ontario’s Bruce Power nuclear facility. It took 27 years to bring that plant to its current 6.4 gigawatt (GW) capacity, but meeting Canada’s decarbonization goals will require adding roughly the equivalent capacity of Bruce Power every year for the next three decades.

“The task of creating enough electricity in the coming years is truly enormous and governments have not really wrapped their heads around that yet,” Gorman said. “For those of us in the energy sector, it is the type of thing that can keep you up at night.”

GOVERNMENT POLICY 'HELD HOSTAGE' BY 'DINOSAURS'
The Pembina Institute’s Jeyakumar agreed “the last mile is often the most difficult” and will require “a concerted effort both at the federal level and the provincial level.”

Governments will “need to be able to support innovation and solutions such as non-wires alternatives,” she said. “Instead of building a massive new transmission line or beefing up an old one, you could put a storage facility at the end of an existing line. Distributed energy resources provide those kinds of non-wires alternatives and they are already cost-effective and competitive with oil and gas.”

For Glen Murray, who served as Ontario’s minister of infrastructure and transportation from early 2013 to mid-2014 before assuming the environment and climate change portfolio until his resignation in mid-2017, that is a key lesson governments have yet to learn.

“We are moving away from a centralized distribution model to distributed systems where individual buildings and homes and communities will supply their own electricity needs,” said Murray, who currently works for an urban planning software company in Winnipeg, in an interview. “Yet both the federal and provincial governments are assuming that we are going to continue to have large, centralized generation of power, but that is simply not going to be the case.”

“Government policy is not focused on driving that because they are held hostage by their own hydro utilities and the big gas companies,” Murray said. “They are controlling the agenda even though they are the dinosaurs.”

Referencing the SNC-Lavalin report, Gorman noted as many as 45 small, modular nuclear reactors as well as 20 conventional nuclear power plants will be required in the coming decades, with jurisdictions like Ontario exploring new large-scale nuclear as part of that mix: “And that is in the context of also maximizing all the other emission-free electricity sources we have available as well from wind to solar to hydro and marine renewables,” Gorman said, echoing the “all-of-the-above” mindset of the Canadian Electricity Association.

There are, however, “fundamental rules of the market and the regulatory system that make it an uneven playing field for these new technologies to compete,” said Jeyakumar, agreeing with Murray’s concerns. “These are all solvable problems but we need to work on them now.”
 

'2035 IS TOMORROW'
According to Bentley, the former Ontario energy minister-turned academic, “the government's role is to match the aspiration with the means to achieve that aspiration.”

“We have spent far more time as governments talking about the goals and the high-level promises [of a net-zero electricity grid by 2035] without spending as much time as we need to in order to recognize what a massive transformation this will mean,” Bentley said. “It is easy to talk about the end-goal, but how do you get there?”

The Canadian Electricity Assocation’s Bradley agreed “there are still a lot of outstanding questions about how we are going to turn those aspirations into actual policies. The 2035 goal is going to be very difficult to achieve in the absence of seeing exactly what the policies are that are going to move us in that direction.”

“It can take a decade to go through the processes of consultations and planning and then building and getting online,” Bradley said. “Particularly when you’re talking about big electricity projects, 2035 is tomorrow.”

Jeyakumar said “we cannot afford to wait any longer” for policies to be put in place as the decisions governments make today “will then lock us in for the next 30 or 40 years into specific technologies.”

“We need to consider it like saving for retirement,” said Gorman of the Canadian Nuclear Association. “Every year that you don’t contribute to your retirement savings just pushes your retirement one more year into the future.”

 

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Can the Electricity Industry Seize Its Resilience Moment?

Hurricane Grid Resilience examines how utilities manage outages with renewables, microgrids, and robust transmission and distribution systems, balancing solar, wind, and batteries to restore service, harden infrastructure, and improve storm response and recovery.

 

Key Points

Hurricane grid resilience is a utility approach to withstand storms, reduce outages, and speed safe power restoration.

✅ Focus on T&D hardening, vegetation management, remote switching

✅ Balance generation mix; integrate solar, wind, batteries, microgrids

✅ Plan 12-hour shifts; automate forecasting and outage restoration

 

When operators of Duke Energy's control room in Raleigh, North Carolina wait for a hurricane, the mood is often calm in the hours leading up to the storm.

“Things are usually fairly quiet before the activity starts,” said Mark Goettsch, the systems operations manager at Duke. “We’re anxiously awaiting the first operation and the first event. Once that begins, you get into storm mode.”

Then begins a “frenzied pace” that can last for days — like when Hurricane Florence parked over Duke’s service territory in September.

When an event like Florence hits, all eyes are on transmission and distribution. Where it’s available, Duke uses remote switching to reconnect customers quickly. As outages mount, the utility forecasts and balances its generation with electricity demand.

The control center’s four to six operators work 12-hour shifts, while nearby staff members field thousands of calls and alarms on the system. After it’s over, “we still hold our breath a little bit to make sure we’ve operated everything correctly,” said Goettsch. Damage assessment and rebuilding can only begin once a storm passes.

That cycle is becoming increasingly common in utility service areas like Duke's.

A slate of natural disasters that reads like a roll call — Willa, Michael, Harvey, Irma, Maria, Florence and Thomas — has forced a serious conversation about resiliency. And though Goettsch has heard a lot about resiliency as a “hot topic” at industry events and meetings, those conversations are only now entering Duke’s control room.

Resilience discussions come and go in the energy industry. Storms like Hurricane Sandy and Matthew can spur a nationwide focus on resiliency, but change is largely concentrated in local areas that experienced the disaster. After a few news cycles, the topic fades into the background.

However, experts agree that resilience is becoming much more important to year-round utility planning and operations as utilities pursue decarbonization goals across their fleets. It's not a fad.

“If you look at the whole ecosystem of utilities and vendors, there’s a sense that there needs to be a more resilient grid,” said Miki Deric, Accenture’s managing director of utilities, transmission and distribution for North America. “Even if they don’t necessarily agree on everything, they are all working with the same objective.”

Can renewables meet the challenge?

After Hurricane Florence, The Intercept reported on coal ash basins washed out by the storm’s overwhelming waters. In advance of that storm, Duke shut down one nuclear plant to protect it from high winds. The Washington Post also recently reported on a slowly leaking oil spill, which could surpass Deepwater Horizon in size, caused by Hurricane Ivan in 2004.

Clean energy boosters have seized on those vulnerabilities.They say solar and wind, which don’t rely on access to fuel and can often generate power immediately after a storm, provide resilience that other electricity sources do not.

“Clearly, logistics becomes a big issue on fossil plants, much more than renewable,” said Bruce Levy, CEO and president at BMR Energy, which owns and operates clean energy projects in the Caribbean and Latin America. “The ancillaries around it — the fuel delivery, fuel storage, water in, water out — are all as susceptible to damage as a renewable plant.”

Duke, however, dismissed the notion that one generation type could beat out another in a serious storm.

“I don’t think any generation source is immune,” said Duke spokesperson Randy Wheeless. “We’ve always been a big supporter of a balanced energy mix, reflecting why the grid isn't 100% renewable in practice today. That’s going to include nuclear and natural gas and solar and renewables as well. We do that because not every day is a good day for each generation source.”

In regard to performance, Wade Schauer, director of Americas Power & Renewables Research at Wood Mackenzie, said the situation is “complex.” According to him, output of solar and wind during a storm depends heavily on the event and its location.

While comprehensive data on generation performance is sparse, Schauer said coal and gas generators could experience outages at 25 percent while stormy weather might cut 95 percent of output from renewables, underscoring clean energy's dirty secret about variability under stress. Ahead of last year’s “bomb cyclone” in New England, WoodMac data shows that wind dropped to less than 1 percent of the supply mix.

“When it comes to resiliency, ‘average performance’ doesn't cut it,” said Schauer.

In the future, he said high winds could impact all U.S. offshore wind farms, since projects are slated for a small geographic area in the Northeast. He also pointed to anecdotal instances of solar arrays in New England taken out by feet of snow. During Florence, North Carolina’s wind farms escaped the highest winds and continued producing electricity throughout. Cloud cover, on the other hand, pushed solar production below average levels.

After Florence passed, Duke reported that most of its solar came online quickly, although four of its utility-owned facilities remained offline for weeks afterward. Only one was because of damage; the other three remained offline due to substation interconnection issues.

“Solar performed pretty well,” said Wheeless. “But did it come out unscathed? No.”

According to installer reports, solar systems fared relatively well in recent storms, even as the Covid-19 impact on renewables constrained projects worldwide. But the industry has also highlighted potential improvements. Following Hurricanes Maria and Irma, the Federal Emergency Management Agency published guidelines for installing and maintaining storm-resistant solar arrays. The document recommended steps such as annual checks for bolt tightness and using microinverters rather than string inverters.

Rocky Mountain Institute (RMI) also assembled a guide for retrofitting and constructing new installations. It described attributes of solar systems that survived storms, like lateral racking supports, and those that failed, like undersized and under-torqued bolts.

“The hurricanes, as much as no one liked them, [were] a real learning experience for folks in our industry,” said BMR’s Levy. “We saw what worked, and what didn’t.”          

Facing the "800-pound gorilla" on the grid

Advocates believe wind, solar, batteries and microgrids offer the most promise because they often rely less on transmitting electricity long distances and could support peer-to-peer energy models within communities.

Most extreme weather outages arise from transmission and distribution problems, not generation issues. Schauer at WoodMac called storm damage to T&D the “800-pound gorilla.”

“I'd be surprised if a single customer power outage was due to generators being offline, especially since loads where so low due to mild temperatures and people leaving the area ahead of the storm,” he said of Hurricane Florence. “Instead, it was wind [and] tree damage to power lines and blown transformers.”

 

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Opinion: Now is the time for a western Canadian electricity grid

Western Canada Electric Grid could deliver interprovincial transmission, reliability, peak-load support, reserve sharing, and wind and solar integration, lowering costs versus new generation while respecting AESO markets and Crown utility structures.

 

Key Points

Interprovincial transmission to share reserves, boost reliability, integrate wind and solar, and cut peak capacity costs.

✅ Cuts reserve margins via diversity of peak loads

✅ Enables wind and solar balancing across provinces

✅ Saves ratepayers vs replacing retiring thermal plants

 

The 2017 Canadian Free Trade Agreement does not do much to encourage provinces to trade electric energy east and west. Would a western Canada electric grid help electricity consumers in the western provinces? Some Alberta officials feel that their electric utilities are investor owned and they perceive the Crown corporations of BC Hydro, SaskPower and Manitoba Hydro to be subsidized by their provincial governments, so an interprovincial electric energy trade would not be on a level playing field.

Because of the limited trade of electric energy between the western provinces, each utility maintains an excessive reserve of thermal and hydroelectric generation greater than their peak loads, to provide a reliable supply during peak load days as grids are increasingly exposed to harsh weather across Canada. This excess does not include variable wind and solar generation, which within a province can’t be guaranteed to be available when needed most.

This attitude must change. Transmission is cheaper than generation, and coordinated macrogrids can further improve reliability and cut costs. By constructing a substantial grid with low profile and aesthetically designed overhead transmission lines, the excess reserve of thermal and hydroelectric generation above the peak electric load can be reduced in each province over time. Detailed assessments will ensure each province retains its required reliability of electric supply.

As the provinces retire aging thermal and coal-fired generators, they only need to replace them to a much lower level, by just enough to meet their future electric loads and Canada's net-zero grid by 2050 goals. Some of the money not spent in replacing retired generation can be profitably invested in the transmission grid across the four western provinces.

But what about Alberta, which does not want to trade electric energy with the other western provinces? It can carry on as usual within the Alberta Electric System Operator’s (AESO) market and will save money by keeping the installed reserve of thermal and hydroelectric generation to a minimum. When Alberta experiences a peak electric load day and some generators are out of service due to unplanned maintenance, it can obtain the needed power from the interprovincial electric grid. None of the other three western provinces will peak at the same time, because of different weather and time zones, so they will have spare capacity to help Alberta over its peak. The peak load in a province only lasts for a few hours, so Alberta will get by with a little help from its friends if needed.

The grid will have no energy flowing on it for this purpose except to assist a province from time to time when it’s unable to meet its peak load. The grid may only carry load five per cent of the time in a year for this purpose. Under such circumstances, the empty grid can then be used for other profitable markets in electric energy. This includes more effective use of variable wind and solar energy, by enabling a province to better balance such intermittent power as well as allowing increased installation of it in every province. This is a challenge for AESO which the grid would substantially ease.

Natural Resources Canada promoted the “Regional Electricity Co-Operative and Strategic Infrastructure” initiative for completion this year and contracted through AESO, alongside an Atlantic grid study to explore regional improvements. This is a first step, but more is needed to achieve the full benefit of a western grid.

In 1970 a study was undertaken to electrically interconnect Britain with France, which was justified based on the ability to reduce reserve generation in both countries. Initially Britain rejected it, but France was partially supportive. In time, a substantial interconnection was built, and being a profitable venture, they are contemplating increasing the grid connections between them.

For the sake of the western consumers of electricity and to keep electricity rates from rising too quickly, as well as allowing productive expansion of wind and solar energy in places like British Columbia's clean energy shift efforts, an electric grid is essential across western Canada.

Dennis Woodford is president of Electranix Corporation in Winnipeg, which studies electric transmission problems, particularly involving renewable energy generators requiring firm connection to the grid.

 

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Hydro-Quebec adopts a corporate structure designed to optimize the energy transition

Hydro-Québec Unified Corporate Structure advances the energy transition through integrated planning, strategy, infrastructure delivery, and customer operations, aligning generation, transmission, and distribution while ensuring non-discriminatory grid access and agile governance across assets and behind-the-meter technologies.

 

Key Points

A cross-functional model aligning strategy, planning, and operations to accelerate Quebec's low-carbon transition.

✅ Four groups: strategy, planning, infrastructure, operations.

✅ Ensures non-discriminatory transmission access compliance.

✅ No staff reductions; staged implementation from Feb 28.

 

As Hydro-Que9bec prepares to play a key role in the transition to a low-carbon economy, the complexity of the work to be done in the coming decade requires that it develop a global vision of its operations and assets, from the drop of water entering its turbines to the behind-the-meter technologies marketed by its subsidiary Hilo. This has prompted the company to implement a new corporate structure that will maximize cooperation and agility, including employee-led pandemic support that builds community trust, making it possible to bring about the energy transition efficiently with a view to supporting the realization of Quebecers’ collective aspirations.

Toward a single, unified Hydro

Hydro-Québec’s core mission revolves around four major functions that make up the company’s value chain, alongside policy choices like peak-rate relief during emergencies. These functions consist of:

  1. Developing corporate strategies based on current and future challenges and business opportunities
  2. Planning energy needs and effectively allocating financial capital, factoring in pandemic-related revenue impacts on demand and investment timing
  3. Designing and building the energy system’s multiple components
  4. Operating assets in an integrated fashion and providing the best customer experience by addressing customer choice and flexibility expectations across segments.

Accordingly, Hydro-Québec will henceforth comprise four groups respectively in charge of strategy and development; integrated energy needs planning; infrastructure and the energy system; and operations and customer experience, including billing accuracy concerns that can influence satisfaction. To enable the company to carry out its mission, these groups will be able to count on the support of other groups responsible for corporate functions.

Across Canada, leadership changes at other utilities highlight the need to rebuild ties with governments and investors, as seen with Hydro One's new CEO in Ontario.

“For over 20 years, Hydro-Québec has been operating in a vertical structure based on its main activities, namely power generation, transmission and distribution. This approach must now give way to one that provides a cross-functional perspective allowing us to take informed decisions in light of all our needs, as well as those of our customers and the society we have the privilege to serve,” explained Hydro-Québec’s President and Chief Executive Officer, Sophie Brochu.

In terms of gender parity, the management team continues to include several men and women, thus ensuring a diversity of viewpoints.

Hydro-Québec’s new structure complies with the regulatory requirements of the North American power markets, in particular with regard to the need to provide third parties with non-discriminatory access to the company’s transmission system. The frameworks in place ensure that certain functions remain separate and help coordinate responses to operational events such as urban distribution outages that challenge continuity of service.

These changes, which will be implemented gradually as of Monday, February 28, do not aim to achieve any staff reductions.

 

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For Hydro-Québec, selling to the United States means reinventing itself

Hydro-Quebec hydropower exports deliver low-carbon electricity to New England, sparking debate on greenhouse gas accounting, grid attributes, and REC-style certificates as Quebec modernizes monitoring to verify emissions, integrate renewables, and meet ambitious climate targets.

 

Key Points

Low-carbon electricity to New England, with improved emissions tracking and verifiable grid attributes.

✅ Deep, narrow reservoirs cut lifecycle GHGs in cold boreal waters

✅ Attribute certificates trace source, type, and carbon intensity

✅ Contracts require facility-level tagging for compliance

 

For 40 years, through the most vicious interprovincial battles, even as proposals for bridging the Alberta-B.C. gap aimed to improve grid resilience, Canadians could agree on one way Quebec is undeniably superior to the rest of the country.

It’s hydropower, and specifically the mammoth dam system in Northern Quebec that has been paying dividends since it was first built in the 70s. “Quebec continues to boast North America’s lowest electricity prices,” was last year’s business-as-usual update in one trade publication, even as Newfoundland's rate strategy seeks relief for consumers.

With climate crisis looming, that long-ago decision earns even more envy and reflects Canada's electricity progress across the grid today. Not only do they pay less, but Quebeckers also emit the least carbon per capita of any province.

It may surprise most Canadians, then, to hear how most of New England has reacted to the idea of being able to buy permanently into Quebec’s power grid.

​​​​​​Hydro-Québec’s efforts to strike major export deals have been rebuffed in the U.S., by environmentalists more than anyone. They question everything about Quebec hydropower, including asking “is it really low-carbon?”

These doubts may sound nonsensical to regular Quebeckers. But airing them has, in fact, pushed Hydro-Québec to learn more about itself and adopt new technology.

We know far more about hydropower than we knew 40 years ago, including whether it’s really zero-emission (it’s not), how to make it as close to zero-emission as possible, and how to account for it as precisely as new clean energies like solar and wind, underscoring how cleaning up Canada's electricity is vital to meeting climate pledges.

The export deals haven’t gone through yet, but they’ve already helped drag Hydro-Québec—roughly the fourth-biggest hydropower system on the planet—into the climate era.

Fighting to export
One of the first signs of trouble for Quebec hydro was in New Hampshire, almost 10 years ago. People there began pasting protest signs on their barns and buildings. One citizens’ group accused Hydro of planning a “monstrous extension cord” across the state.

Similar accusations have since come from Maine, Massachusetts and New York.

The criticism isn’t coming from state governments, which mostly want a more permanent relationship with Hydro-Québec. They already rely on Quebec power, but in a piecemeal way, topping up their own power grid when needed (with the exception of Vermont, which has a small permanent contract for Quebec hydropower).

Last year, Quebec provided about 15 percent of New England’s total power, plus another substantial amount to New York, which is officially not considered to be part of New England, and has its own energy market separate from the New England grid.

Now, northeastern states need an energy lynch pin, rather than a top-up, with existing power plants nearing the end of their lifespans. In Massachusetts, for example, one major nuclear plant shut down this year and another will be retired in 2021. State authorities want a hydro-based energy plan that would send $10 billion to Hydro-Québec over 20 years.

New England has some of North America’s most ambitious climate goals, with every state in the region pledging to cut emissions by at least 80 percent over the next 30 years.

What’s the downside? Ask the citizens’ groups and nonprofits that have written countless op-eds, organized petitions and staged protests. They argue that hydropower isn’t as clean as cutting-edge clean energy such as solar and wind power, and that Hydro-Québec isn’t trying hard enough to integrate itself into the most innovative carbon-counting energy system. Right as these other energy sources finally become viable, they say, it’s a step backwards to commit to hydro.

As Hydro-Québec will point out, many of these critics are legitimate nonprofits, but others may have questionable connections. The Portland Press Herald in Maine reported in September 2018 that a supposedly grassroot citizens’ group called “Stand Up For Maine” was actually funded by the New England Power Generators Association, which is based in Boston and represents such power plant owners as Calpine Corp., Vistra Energy and NextEra Energy.

But in the end, that may not matter. Arguably the biggest motivator to strike these deals comes not from New England’s needs, but from within Quebec. The province has spent more than $10 billion in the last 15 years to expand its dam and reservoir system, and in order to stay financially healthy, it needs to double its revenue in the next 10 years—a plan that relies largely on exports.

With so much at stake, it has spent the last decade trying to prove it can be an energy of the future.

“Learning as you go”
American critics, justified or not, have been forcing advances at Hydro for a long time.

When the famously huge northern Quebec hydro dams were built at James Bay—construction began in the early 1970s—the logic was purely economic. The term “climate change” didn’t exist. The province didn’t even have an environment department.

The only reason Quebec scientists started trying to measure carbon emissions from hydro reservoirs was “basically because of the U.S.,” said Alain Tremblay, a senior environmental advisor at Hydro Quebec.


Alain Tremblay, senior environmental advisor at Hydro-Québec. Photograph courtesy of Hydro-Québec
In the early 1990s, Hydro began to export power to the U.S., and “because we were a good company in terms of cost and efficiency, some Americans didn't like that,” he said—mainly competitors, though he couldn’t say specifically who. “They said our reservoirs were emitting a lot of greenhouse gases.”

The detractors had no research to back up that claim, but Hydro-Québec had none to refute it, either, said Tremblay. “At that time we didn’t have any information, but from back-of-the envelope calculations, it was impossible to have the emissions the Americans were expecting we have.”

So research began, first to design methods to take the measurements, and then to carry them out. Hydro began a five-year project with a Quebec university.

It took about 10 years to develop a solid methodology, Tremblay said, with “a lot of error and learning-as-you-go.” There have been major strides since then.

“Twenty years ago we were taking a sample of water, bringing it back to the lab and analyzing that with what we call a gas chromatograph,” said Tremblay. “Now, we have an automated system that can measure directly in the water,” reading concentrations of CO2 and methane every three hours and sending its data to a processing centre.

The tools Hydro-Québec uses are built in California. Researchers around the world now follow the same standard methods.

At this point, it’s common knowledge that hydropower does emit greenhouse gases. Experts know these emissions are much higher than previously thought.

Workers on the Eastmain-1 project environmental monitoring program. Photography courtesy of Alain Tremblay.
​But Hydro-Québec now has the evidence, also, to rebut the original accusations from the early 1990s and many similar ones today.

“All our research from Université Laval [found] that it’s about a thousand years before trees decompose in cold Canadian waters,” said Tremblay.

Hydro reservoirs emit greenhouse gases because vegetation and sometimes other biological materials, like soil runoff, decay under the surface.

But that decay depends partly on the warmth of the water. In tropical regions, including the southern U.S., hydro dams can have very high emissions. But in boreal zones like northern Quebec (or Manitoba, Labrador and most other Canadian locations with massive hydro dams), the cold, well-oxygenated water vastly slows the process.

Hydro emissions have “a huge range,” said Laura Scherer, an industrial ecology professor at Leiden University in the Netherlands who led a study of almost 1,500 hydro dams around the world.

“It can be as low as other renewable energy sources, but it can also be as high as fossil fuel energy,” in rare cases, she said.

While her study found that climate was important, the single biggest factor was “sizing and design” of each dam, and specifically its shape, she said. Ideally, hydro dams should be deep and narrow to minimize surface area, perhaps using a natural valley.

Hydro-Québec’s first generation of dams, the ones around James Bay, were built the opposite way—they’re wide and shallow, infamously flooding giant tracts of land.


Alain Tremblay, senior environmental advisor at Hydro-Québec testing emission levels. Photography courtesy of Alain Tremblay
Newly built ones take that new information into account, said Tremblay. Its most recent project is the Romaine River complex, which will eventually include four reservoirs near Quebec’s northeastern border with Labrador. Construction began in 2016.

The site was picked partly for its topography, said Tremblay.

“It’s a valley-type reservoir, so large volume, small surface area, and because of that there’s a pretty limited amount of vegetation that’s going to be flooded,” he said.

There’s a dramatic emissions difference with the project built just before that, commissioned in 2006. Called Eastmain, it’s built near James Bay.

“The preliminary results indicate with the same amount of energy generated [by Romaine] as with Eastmain, you’re going to have about 10 times less emissions,” said Tremblay.

Tracing energy to its source
These signs of progress likely won’t satisfy the critics, who have publicly argued back and forth with Hydro about exactly how emissions should be tallied up.

But Hydro-Québec also faces a different kind of growing gap when it comes to accounting publicly for its product. In the New England energy market, a sophisticated system “tags” all the energy in order to delineate exactly how much comes from which source—nuclear, wind, solar, and others—and allows buyers to single out clean power, or at least the bragging rights to say they bought only clean power.

Really, of course, it’s all the same mix of energy—you can’t pick what you consume. But creating certificates prevents energy producers from, in worst-case scenarios, being able to launder regular power through their clean-power facilities. Wind farms, for example, can’t oversell what their own turbines have produced.

What started out as a fraud prevention tool has “evolved to make it possible to also track carbon emissions,” said Deborah Donovan, Massachusetts director at the Acadia Center, a climate-focused nonprofit.

But Hydro-Québec isn’t doing enough to integrate itself into this system, she says.

It’s “the tool that all of our regulators in New England rely on when we are confirming to ourselves that we’ve met our clean energy and our carbon goals. And…New York has a tool just like that,” said Donovan. “There isn’t a tracking system in Canada that’s comparable, though provinces like Nova Scotia are tapping the Western Climate Initiative for technical support.”

Hydro Quebec Chénier-Vignan transmission line crossing the Outaouais river. Photography courtesy of Hydro-Québec
Developing this system is more a question of Canadian climate policy than technology.

Energy companies have long had the same basic tracking device—a meter, said Tanya Bodell, a consultant and expert in New England’s energy market. But in New England, on top of measuring “every time there’s a physical flow of electricity” from a given source, said Bodell, a meter “generates an attribute or a GIS certificate,” which certifies exactly where it’s from. The certificate can show the owner, the location, type of power and its average emissions.

Since 2006, Hydro-Québec has had the ability to attach the same certificates to its exports, and it sometimes does.

“It could be wind farm generation, even large hydro these days—we can do it,” said Louis Guilbault, who works in regulatory affairs at Hydro-Québec. For Quebec-produced wind energy, for example, “I can trade those to whoever’s willing to buy it,” he said.

But, despite having the ability, he also has the choice not to attach a detailed code—which Hydro doesn’t do for most of its hydropower—and to have it counted instead under the generic term of “system mix.”

Once that hydropower hits the New England market, the administrators there have their own way of packaging it. The market perhaps “tries to determine emissions, GHG content,” Guilbault said. “They have their own rules; they do their own calculations.”

This is the crux of what bothers people like Donovan and Bodell. Hydro-Québec is fully meeting its contractual obligations, since it’s not required to attach a code to every export. But the critics wish it would, whether by future obligation or on its own volition.

Quebec wants it both ways, Donovan argued; it wants the benefits of selling low-emission energy without joining the New England system of checks and balances.

“We could just buy undifferentiated power and be done with it, but we want carbon-free power,” Donovan said. “We’re buying it because of its carbon content—that’s the reason.”

Still, the requirements are slowly increasing. Under Hydro-Québec’s future contract with Massachusetts (which still has several regulatory steps to go through before it’s approved) it’s asked to sell the power’s attributes, not just the power itself. That means that, at least on paper, Massachusetts wants to be able to trace the energy back to a single location in Quebec.

“It’s part of the contract we just signed with them,” said Guilbault. “We’re going to deliver those attributes. I’m going to select a specific hydro facility, put the number in...and transfer that to the buyers.”

Hydro-Québec says it’s voluntarily increasing its accounting in other ways. “Even though this is not strictly required,” said spokeswoman Lynn St. Laurent, Hydro is tracking its entire output with a continent-wide registry, the North American Renewables Registry.

That registry is separate from New England’s, so as far as Bodell is concerned, the measure doesn’t really help. But she and others also expect the entire tracking system to grow and mature, perhaps integrating into one. If it had been created today, in fact, rather than in the 1990s, maybe it would use blockchain technology rather than a varied set of administrators, she said.

Counting emissions through tracking still has a long way to go, as well, said Donovan, and it will increasingly matter in Canada's race to net-zero as standards tighten. For example, natural gas is assigned an emissions number that’s meant to reflect the emissions when it’s consumed. But “we do not take into account what the upstream carbon emissions are through the pipeline leakage, methane releases during fracking, any of that,” she said.

Now that the search for exactitude has begun, Hydro-Québec won’t be exempt, whether or not Quebeckers share that curiosity. “We don’t know what Hydro-Québec is doing on the other side of the border,” said Donovan.

 

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Class-action lawsuit: Hydro-Québec overcharged customers up to $1.2B

Hydro-QuE9bec Class-Action Lawsuit alleges overbilling and monopoly abuse, citing RE9gie de l'E9nergie rate increases, Quebec Superior Court filings, and calls for refunds on 2008-2013 electricity bills to residential and business customers.

 

Key Points

Quebec class action alleging Hydro-QuE9bec overbilled customers in 2008-2013, seeking court-ordered refunds.

✅ Filed in Quebec Superior Court; certification pending.

✅ Alleges up to $1.2B in overcharges from 2008-2013.

✅ Questions RE9gie de l'E9nergie rate approvals and data.

 

A group representing Hydro-Québec customers has filed a motion for a class-action lawsuit against the public utility, alleging it overcharged customers over a five-year period.

Freddy Molima, one of the representatives of the Coalition Peuple allumé, accuses Hydro-Québec of "abusing its monopoly."

The motion, which was filed in Quebec Superior Court, claims Hydro-Québec customers paid more than they should have for electricity between 2008 and 2013, to the tune of nearly $1.2 billion, even as Hydro-Québec later refunded $535 million to customers in a separate case. 

The coalition has so far recruited nearly 40,000 participants online as part of its plan to sue the public utility.

A lawyer representing the group said Quebec's energy board, the Régie de l'énergie, also recently approved Hydro-Québec rate increases for residential and business customers without knowing all the facts, even as Manitoba Hydro hikes face opposition in regulatory hearings.

"There's certain information provided to the Régie that isn't true," said Bryan Furlong. "Hydro-Québec has not been providing the Régie the proper numbers."

In its motion, the group asks that overcharged clients be retroactively reimbursed.

Hydro-Québec denies allegations

Hydro-Québec, for its part, denies it ever overbilled any of its clients, while other utilities such as Hydro One plan to redesign bills to improve clarity.

"All our efficiencies have been returned to the government through our profits, and to Quebecers we have billed exactly what we agreed to bill," said spokesperson Serge Abergel, adding that the utility won't seek a rate hike next year according to its current plans.

Quebec Energy Minister Pierre Moreau also came to the public utility's defence, saying it has no choice but to comply with the  energy board's regulations, while customer protections are in focus as Hydro One moves to reconnect 1,400 customers in Ontario.

The group says the public utility has overbilled clients by up to $1.2 billion. (Radio-Canada)

It would be "shocking" if customers were charged too much money, he added.

"I know for a fact that Hydro-Québec is respecting the decision of this body," he said.

While the motion has been filed, the group cannot say how much each customer would receive if the class-action lawsuit goes ahead because it all depends on how much electricity was consumed by each client over that five-year period.

The coalition plans to present its motion to a judge next February.

 

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