What exactly is clean coal?

California Net Zero Grid Investment will fuel electrification, renewable energy buildout, EV adoption, and grid modernization, boosting utilities, solar, and storage, while policy, IRA incentives, and transmission upgrades drive reliability and long-term rate base growth.

Key Points

Funding to electrify sectors and modernize the grid, scaling renewables, EVs, and storage to meet 2045 net zero goals.

✅ $370B over 22 years to meet 2045 net zero target

✅ Utilities lead gains via grid modernization and rate base growth

✅ EVs, solar, storage scale; IRA credits offset costs

$370 billion: That’s the investment Edison International CEO Pedro Pizarro says is needed for California’s power grid to meet the state’s “net zero” goal for CO2 emissions by 2045.

Getting there will require replacing fossil fuels with electricity in transportation, HVAC systems for buildings and industrial processes. Combined with population growth and data demand potentially augmented by artificial intelligence, that adds up to an 82 percent increase in electricity demand over 22 years, or 3 percent annually, and a potential looming shortage if buildout lags.

California’s plans also call for phasing out fossil fuel generation in the state, despite ongoing dependence on fossil power during peaks. And presumably, its last nuclear plant—PG&E Corp’s (PCG) Diablo Canyon—will be eventually be shuttered as well. So getting there also means trebling the state’s renewable energy generation and doubling usage of rooftop solar.

Assuming this investment is made, it’s relatively easy to put together a list of beneficiaries. Electric vehicles hit 20 percent market share in the state in Q2, even as pandemic-era demand shifts complicate load forecasting. And while competition from manufacturers has increased, leading manufacturers like Tesla TSLA -3% Inc (TSLA) can look forward to rising sales for some time—though that’s more than priced in for Elon Musk’s company at 65 times expected next 12 months earnings.

In the past year, California regulators have dialed back net metering through pricing changes affecting compensation, a subsidy previously paying rooftop solar owners premium prices for power sold back to the grid. That’s hit share prices of SunPower Corp (SPWR) and Sunrun Inc (RUN) quite hard, by further undermining business plans yet to demonstrate consistent profitability.

Nonetheless, these companies too can expect robust sales growth, as global prices for solar components drop and Inflation Reduction Act tax credits at least somewhat offset higher interest rates. And the combination of IRA tax credits and U.S. tariff walls will continue to boost sales at solar manufacturers like JinkoSolar Holding (JKS).

The surest, biggest beneficiaries of California’s drive to Net Zero are the utilities, reflecting broader utility trends in grid modernization, with investment increasing earnings and dividends. And as the state’s largest pure electric company, Edison has the clearest path.

Edison is currently requesting California regulators OK recovery over a 30-year period of $2.4 billion in losses related to 2017 wildfires. Assuming a amicable decision by early next year, management can then turn its attention to upgrading the grid. That investment is expected to generate long-term rate base growth of 8 percent at year, fueling 5 to 7 percent annual earnings growth through 2028 with commensurate dividend increases.

That’s a strong value proposition Edison stock, with trades at just 14 times expected next 12 months earnings. The yield of roughly 4.4 percent at current prices was increased 5.4 percent this year and is headed for a similar boost in December.

When California deregulated electricity in 1996, it required utilities with rare exceptions to divest their power generation. As a result, Edison’s growth opportunity is 100 percent upgrading its transmission and distribution grid. And its projects can typically be proposed, sited, permitted and built in less than a year, limiting risk of cost overruns to ensure regulatory approval and strong investment returns.

Edison’s investment plan is also pretty much immune to an unlikely backtracking on Net Zero goals by the state. And the company has a cost argument as well: Dr Pizarro cites U.S. Department of Energy and Department of Transportation data to project inflation-adjusted savings of 40 percent in California’s total customer energy bills from full electrification.

There’s even a reason to believe 40 percent savings will prove conservative. Mainly, gasoline currently accounts for a bit more than half energy expenditures. And after a more than 10-year global oil and gas investment drought, supplies are likely get tighter and prices possibly much higher in coming years.

Of course, those savings will only show up after significant investment is made. At this point, no major utility system in the world runs on 100 percent renewable energy, and California’s blackout politics underscore how reliability concerns shape deployment. And the magnitude of storage technology needed to overcome intermittency in solar and wind generation is not currently available let alone affordable, though both cost and efficiency are advancing.

Taking EVs from 20 to 100 percent of California’s new vehicle sales calls for a similar leap in efficiency and cost, even with generous federal and state subsidy. And while technology to fully electrify buildings and homes is there, economically retrofitting statewide is almost certainly going to be a slog.

At the end of the day, political will is likely to be as important as future technological advance for how much of Pizarro’s $370 billion actually gets spent. And the same will be true across the U.S., with state governments and regulators still by and large calling the shots for how electricity gets generated, transmitted and distributed—as well as who pays for it and how much, even as California’s exported policies influence Western markets.

Ironically, the one state where investors don’t need to worry about renewable energy’s prospects is one of the currently reddest politically. That’s Florida, where NextEra Energy NEE +2.8% (NEE) and other utilities can dramatically cut costs to customers and boost reliability by deploying solar and energy storage.

You won’t hear management asserting it can run the Sunshine State on 100 percent renewable energy, as utilities and regulators do in some of the bluer parts of the country. But by demonstrating the cost and reliability argument for solar deployment, NextEra is also making the case why its stock is America’s highest percentage bet on renewables’ growth—particularly at a time when all things energy are unfortunately becoming increasingly, intensely political.

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Manitoba Hydro Phone Scam targets small businesses with disconnection threats, prepaid card payments, caller ID spoofing, phishing texts, and door-to-door fraud; hang up, verify your account directly, and never share banking information.

Key Points

A scam where callers threaten disconnection and demand prepaid cards; verify account status directly with Manitoba Hydro.

✅ Hang up and call Manitoba Hydro at 1-888-624-9376 to verify.

✅ Never pay by prepaid cards, gift cards, or crypto.

✅ Hydro will not cut power on one-hour notice.

Manitoba Hydro is warning customers, particularly small business owners, to be wary of high-pressure scammers, as Ontario utilities warn of scams in other provinces, threatening to shut off their electricity.

The callers demand the customer to make immediate payment by a prepaid card. Often, the calls are made in the middle of the day at a busy time, frightening the customer with aggressive threats about disconnection, as hydro disconnections have made headlines elsewhere, says hydro spokesman Bruce Owen.

"They tell them 'we have a truck on the way to cut off your power. If you don't pay in the next hour you're out of luck,'" he said.

"And because these folks have inventory in freezers and they have customers … they're willing to fork over several hundred or even several thousand dollars on a prepaid card to somebody they don't know to keep the lights on."

Maybe the business owners can't recall, with everything happening, including discussions about Hydro One peak rates in Ontario, if they've made their payments on time. They start second-guessing and believing the person on the other line, Owen says.

And they worry about losing thousands of dollars in business if they lose power. So they're more than willing to run out to a store, buy a prepaid debit card and provide the number to the caller.

"Their goal is to manipulate you into sending money before you figure out it's a scam," said Chris McColm, hydro's security and investigations supervisor. "These people are crooks and you should hang up on them."

For any customers that are in arrears, hydro will work with them to resolve the issue, Owen said.

"We do not have to take that extreme measure of cutting off or disconnecting anybody. That's not the business we're in — we don't strong arm people that way," he said.

"Anybody who's threatening to cut off your power with an hour or half-an-hour notice, well it's it's no better than someone waiting around the corner, waiting the club you over the head in the dark of night. That's what they are."

Fraud reports soar

The power utility has recorded a nearly-300 per cent jump in the number of fraud-related complaints this year over 2017. There have been 862 phone, text and e-mail scams and that could still go much higher.

The current statistics from 2018 have only calculated up to Oct. 31. In 2017, there were 221.

That jump in numbers doesn't necessarily mean there are more scammers out there.

It could simply mean people are finally getting wise to fraudsters and reporting it more, Owen says.

"At the same token, we don't hear of everybody who's been taking advantage of because once they've found out that they've been hoodwinked they don't want to tell anybody because they're so embarrassed," he said.

"These scammers can be very convincing and anyone can be victimized," McColm said.

If you are able to think clearly when some high-pressure caller gets you on the line, Owen suggests asking a few simple questions to challenge their legitimacy:

• What street am I on?
• What does my business look like? 
• What's the weather outside right now?

Phone scammers can falsify their caller ID information to make it appear they're calling from a local number, but what you'll find is most of them aren't in Winnipeg or Manitoba and likely not even this country or continent, Owen says.

The key to being safe is simply to never give out banking information, Owen says. It's a message that has been stressed for years and 80-90 per cent of people understand it, but it's that other 10-20 per cent that are still being victimized.And it's not just phone calls. Many other fraud-related complaints to Manitoba Hydro this year concerned unsolicited text messages to customers saying they had been overbilled, or faced retroactive charges elsewhere, and were eligible for a refund.

This scam is also aimed at getting a customer's personal banking information, under the guise of having money put back into their account.

Also, many people, especially seniors living alone, continue to be targeted by aggressive door-to-door fraudsters, and cases like the electricity theft ring in Montreal underscore the risks, McColm says. However, he adds, hydro employees always display photo ID and will never demand to come into a home. 

If you're unsure whether a phone call, text or email is real or a scam, contact Manitoba Hydro at 1-888-624-9376.

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Hydro One Q2 Earnings surge on a one-time gain from a court ruling on a deferred tax asset, lifting profit, revenue, and adjusted EPS at Ontario's largest utility regulated by the Ontario Energy Board.

Key Points

Hydro One Q2 earnings jumped on an $867M court gain, with revenue at $1.67B and adjusted EPS improving to $0.39.

✅ One-time gain: $867M from tax appeal ruling.

✅ Revenue: $1.67B vs $1.41B last year.

✅ Adjusted EPS: $0.39 vs $0.26.

Hydro One Ltd., following the Peterborough Distribution sale transaction closing, reported a second-quarter profit of $1.1 billion, boosted by a one-time gain related to a court decision.

The power utility says it saw a one-time gain of $867 million in the quarter due to an Ontario court ruling on a deferred tax asset appeal that set aside an Ontario Energy Board decision earlier.

Hydro One says the profit amounted to $1.84 per share for the quarter ended June 30, amid investor concerns about uncertainties, up from $155 million or 26 cents per share a year earlier.

Shares also moved lower after the Ontario government announced leadership changes, as seen when Hydro One shares fell on the news in prior trading.

On an adjusted basis, it says it earned 39 cents per share for the quarter, despite earlier profit plunge headlines, up from an adjusted profit of 26 cents per share in the same quarter last year.

Revenue totalled $1.67 billion, up from $1.41 billion in the second quarter of 2019, while other Canadian utilities like Manitoba Hydro face heavy debt burdens.

Hydro One is Ontario’s largest electricity transmission and distribution provider, and its CEO compensation has drawn scrutiny in the province.

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Energy Poverty in Extreme Heat exposes vulnerable households to heatwaves, utility shutoffs, and unreliable grid infrastructure, straining public health. Community nonprofits, cooling centers, and policy reform aim to improve electricity access, resilience, and affordable energy.

Key Points

Without reliable, affordable power in heatwaves, health risks rise and cooling, food storage, and daily needs suffer.

✅ Risks: heat illness, dehydration, and indoor temperatures above 90F

✅ Causes: utility shutoffs, aging grid, unpaid bills, remote areas

✅ Relief: cooling centers, aid programs, weatherization, bill credits

In a particular pocket of America, approximately 13,000 families endure the dual challenges of sweltering heat and living without electricity, and the broader risk of summer shut-offs highlights how widespread these pressures have become across the country. This article examines the factors contributing to their plight, the impact of living without electricity during hot weather, and efforts to alleviate these hardships.

Challenges Faced by Families

For these 13,000 families, daily life is significantly impacted by the absence of electricity, especially during the scorching summer months. Without access to cooling systems such as air conditioners or fans, residents are exposed to dangerously high temperatures, which can lead to heat-related illnesses and discomfort, particularly among vulnerable populations such as children, the elderly, and individuals with health conditions, where electricity's role in public health became especially evident.

Causes of Electricity Shortages

The reasons behind the electricity shortages vary. In some cases, it may be due to economic challenges that prevent families from paying utility bills, resulting in disconnections. Other factors include outdated or unreliable electrical infrastructure in underserved communities, as reflected in a recent grid vulnerability report that underscores systemic risks, where maintenance and upgrades are often insufficient to meet growing demand.

Impact of Extreme Heat

During heatwaves, the lack of electricity exacerbates health risks and quality of life issues for affected families, aligning with reports of more frequent outages across the U.S. Furthermore, the absence of refrigeration and cooking facilities can compromise food safety and nutritional intake, further impacting household well-being.

Community Support and Resilience

Despite these challenges, communities and organizations often rally to support families living without electricity. Local nonprofits, community centers, and government agencies provide assistance such as distributing fans, organizing cooling centers, and delivering essentials like bottled water and non-perishable food items during heatwaves to alleviate immediate hardships and improve summer blackout preparedness in vulnerable neighborhoods.

Long-term Solutions

Addressing electricity access issues requires comprehensive, long-term solutions. These may include policy reforms to ensure equitable access to affordable energy, investments in upgrading infrastructure in underserved areas, and expanding financial assistance programs to help families maintain uninterrupted electricity service, in recognition that climate change risks increasingly stress the grid.

Advocacy and Awareness

Advocacy efforts play a crucial role in raising awareness about the challenges faced by families living without electricity and advocating for sustainable solutions. By highlighting these issues, community leaders, activists, and policymakers can work together to drive policy changes, secure funding for infrastructure improvements, and promote energy efficiency initiatives, drawing lessons from Canada's harsh-weather grid exposures that illustrate regional vulnerabilities.

Building Resilience

Building resilience in vulnerable communities involves not only improving access to reliable electricity but also enhancing preparedness for extreme weather events. This includes developing emergency response plans, educating residents about heat safety measures, and fostering community partnerships to support those in need during crises.

Conclusion

As temperatures rise and climate impacts intensify, addressing the plight of families living without electricity becomes increasingly urgent. By prioritizing equitable access to energy, investing in resilient infrastructure, and fostering community resilience, stakeholders can work towards ensuring that all families have access to essential services, even during the hottest months of the year. Collaborative efforts between government, nonprofit organizations, and community members are essential in creating sustainable solutions that improve quality of life and promote health and well-being for all residents.

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British Columbia Green Grid Constraints underscore BC Hydro's rising imports, peak demand, electrification, hydroelectric variability, and transmission bottlenecks, challenging renewable energy expansion, energy security, and CleanBC targets across industry and zero-emission transportation.

Key Points

They are capacity and supply limits straining B.C.'s clean electrification, driving imports and risking reliability.

✅ Record 25% imports in FY2024 raise emissions and costs

✅ Peak demand and transmission limits delay new connections

✅ Drought reduces hydro output; diversified generation needed

British Columbia's ambitious green energy initiatives are encountering significant hurdles due to a strained electrical grid and increasing demand, with a EV demand bottleneck adding pressure. The province's commitment to reducing carbon emissions and transitioning to renewable energy sources is being tested by the limitations of its current power infrastructure.

Rising Demand and Dwindling Supply

In recent years, B.C. has experienced a surge in electricity demand, driven by factors such as population growth, increased use of electric vehicles, and the electrification of industrial processes. However, the province's power supply has struggled to keep pace, and one study projects B.C. would need to at least double its power output to electrify all road vehicles. In fiscal year 2024, BC Hydro imported a record 13,600 gigawatt hours of electricity, accounting for 25% of the province's total consumption. This reliance on external sources, particularly from fossil-fuel-generated power in the U.S. and Alberta, raises concerns about energy security and sustainability.

Infrastructure Limitations

The current electrical grid is facing capacity constraints, especially during peak demand periods, and regional interties such as a proposed Yukon connection are being discussed to improve reliability. A report from the North American Electric Reliability Corporation highlighted that B.C. could be classified as an "at-risk" area for power generation as early as 2026. This assessment underscores the urgency of addressing infrastructure deficiencies to ensure a reliable and resilient energy supply.

Government Initiatives and Investments

In response to these challenges, the provincial government has outlined plans to expand the electrical system. Premier David Eby announced a 10-year, $36-billion investment to enhance the grid's capacity, including grid development and job creation measures to support local economies. The initiative focuses on increasing electrification, upgrading high-voltage transmission lines, refurbishing existing generating facilities, and expanding substations. These efforts aim to meet the growing demand and support the transition to clean energy sources.

The Role of Renewable Energy

Renewable energy sources, particularly hydroelectric power, play a central role in B.C.'s energy strategy. However, the province's reliance on hydroelectricity has its challenges. Drought conditions in recent years have led to reduced water levels in reservoirs, impacting the generation capacity of hydroelectric plants. This variability underscores the need for a diversified energy mix, with options like a hydrogen project complementing hydro, to ensure a stable and reliable power supply.

Balancing Environmental Goals and Energy Needs

B.C.'s commitment to environmental sustainability is evident in its policies, such as the CleanBC initiative, which aims to phase out natural gas heating in new homes by 2030 and achieve 100% zero-emission vehicle sales by 2035, supported by networks like B.C.'s Electric Highway that expand charging access. While these goals are commendable, they place additional pressure on the electrical grid. The increased demand from electric vehicles and electrified heating systems necessitates a corresponding expansion in power generation and distribution infrastructure.

British Columbia's green energy ambitions are commendable and align with global efforts to combat climate change. However, achieving these goals requires a robust and resilient electrical grid capable of meeting the increasing demand for power. The province's reliance on external power sources and the challenges posed by climate variability highlight the need for strategic investments in infrastructure and a diversified energy portfolio, guided by BC Hydro review recommendations to keep electricity affordable. By addressing these challenges proactively, B.C. can pave the way for a sustainable and secure energy future.

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Texas Power Grid Reliability faces record peak demand as ERCOT balances renewable energy, wind and solar variability, gas-fired generation, demand response, and transmission limits to prevent blackouts during heat waves and extreme weather.

Key Points

Texas Power Grid Reliability is ERCOT's capacity to meet peak demand with diverse resources while limiting outages.

✅ Record heat drives peak demand across ERCOT.

✅ Variable wind/solar need firm, flexible capacity.

✅ Demand response and reserves reduce blackout risk.

The electric power grid in Texas, which collapsed dramatically during the 2021 winter storm across the state, is being tested again as the state suffers unusually hot summer weather. Demand for electricity has reached new records at a time of rapid change in the mix of power sources as wind and solar ramp up. That’s feeding a debate about the dependability of the state’s power. 

1. Why is the Texas grid under threat again? 

Already the biggest power user in the nation, electricity use in the second most-populous state surged to record levels during heat waves this summer. The jump in demand comes as the state becomes more dependent on intermittent renewable power sources, raising concerns among some critics that more reliance on wind and solar will leave the grid more vulnerable to disruption. Green sources will produce almost 40% of the power in Texas this year, US Energy Information Administration data show. While that trails California’s 52%, Texas is a bigger market. It’s already No. 1 in wind, making it the largest clean energy market in the US. 

2. How is Texas unique? 

The spirit of defiance of the Lone Star State extends to its power grid as well. The Electric Reliability Council of Texas, or Ercot as the grid operator is known, serves about 90% of the state’s electricity needs and has very few high-voltage transmission lines connecting to nearby grids. It’s a deliberate move to avoid federal oversight of the power market. That means Texas has to be mainly self-reliant and cannot depend on neighbors during extreme conditions. That vulnerability is a dramatic twist for a state that’s also the energy capital of the US, thanks to vast oil and natural gas producing fields. Favorable regulations are also driving a wind and solar boom in Texas. 

3. Why the worry? 

The summer of 2023 will mark the first time all of the state’s needs cannot be met by traditional power plants, like nuclear, coal and gas. A sign of potential trouble came on June 20 when state officials urged residents to conserve power because of low supplies from wind farms and unexpected closures of fossil-fuel generators amid supply-chain constraints that limited availability. As of late July, the grid was holding up, thanks to the help of renewable sources. Solar generation has been coming in close to expected summer capacity, or exceeding it on most days. This has helped offset the hours in the middle of the day when wind speeds died down in West Texas. 

4. Why didn’t the grid’s problems get fixed? 

There is no easy fix. The Texas system allows the price of electricity to swing to match supply and demand. That means high prices — and high profits — drive the development of new power plants. At times spot power prices have been as low as $20-$50 a megawatt-hour versus more than $4,000 during periods of stress. The limitation of this pricing structure was laid bare by the 2021 winter blackouts. Since then, state lawmakers have passed market reforms that require weatherization of critical infrastructure and changed rules to put more money in the pockets of the owners of power generation.  

5. What’s the big challenge? 

There’s a real clash going on over what the grid of the future should look like in Texas and across the country, especially as severe heat raises blackout risks nationally. The challenge is to make sure nuclear and fossil fuel plants that are needed right now don’t retire too early and still allow newer, cleaner technologies to flourish. Some conservative Republicans have blamed renewable energy for destabilizing the grid and have pushed for more fossil-fuel powered generators. Lawmakers passed a controversial $10 billion program providing low-interest loans and grants to build new gas-fired plants using taxpayer money, but Texans ultimately have to vote on the subsidy. 

6. Why do improvements take so long? 

Figuring out how to keep the lights on without overburdening consumers is becoming a greater challenge amid more extreme weather fueled by climate change. As such, changing the rules is often a hotly contested process pitting utilities, generators, manufacturers, electricity retailers and other groups against one another. The process became more politicized after the storm in 2021 with Republican Gov. Greg Abbott and lawmakers ordering Ercot to make changes. Building more transmission lines and connecting to other states can help, but such projects are typically tied up for years in red tape.

7. What can be done? 

The price cap for electricity was cut from $9,000/MWh to $5,000 to help avoid the punitive costs seen in the 2021 storm, though prices are allowed to spike more easily. Ercot is also contracting for more reserves to be online to help avoid supply shortfalls and improve reliability for customers, which added $1.7 billion in consumer costs alone last year. Another rule helps some gas generators pay for their fuel costs, while a more recent reform put in price floors when reserves fall to certain levels. Many power experts say that the easiest solution is to pay people to reduce their energy consumption during times of grid stress through so-called demand response programs. Factories, Bitcoin miners and other large users are already compensated to conserve during tight grid conditions.

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