Otter Tail Power rate case settled

By Associated Press


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Otter Tail Power Co.'s North Dakota customers will be paying slightly lower rates under a settlement of an electric rate case.

The utility's 57,000 North Dakota electric customers also will be getting a small refund, with interest, for overpaying their electric bills during the past year.

An average residential customer using about 836 kilowatt hours of power each month will get a bill credit of about $6 within the next three months.

North Dakota's Public Service Commission approved the settlement only recently.

Otter Tail customers also will be paying less to finance the cost of new wind farms in northeastern and east-central North Dakota. Now, a typical residential customer is paying $3.82 a month for the wind energy. The new rates put the payback amount at $2.65 a month.

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B.C. government freezes provincial electricity rates

BC Hydro Rate Freeze delivers immediate relief on electricity rates in British Columbia, reversing a planned 3% hike, as BCUC oversight, a utility review, and Site C project debates shape provincial energy policy.

 

Key Points

A one-year provincial policy halting BC Hydro electricity rate hikes while a utility review finds cost savings.

✅ Freeze replaces planned 3% hike approved by BCUC.

✅ Government to conduct comprehensive BC Hydro review.

✅ Critics warn $150M revenue loss impacts capital projects.

 

British Columbia's NDP government has announced it will freeze BC Hydro rates effective immediately, fulfilling a key election promise.

Energy, Mines and Petroleum Resources Minister Michelle Mungall says hydro rates have gone up by more than 24 per cent in the last four years and by more than 70 per cent since 2001, reflecting proposals such as a 3.75% increase over two years announced previously.

"After years of escalating electricity costs, British Columbians deserve a break on their bills," Mungall said in a news release.

BC Hydro had been approved by the B.C. Utilities Commission to increase the rate by three per cent next year, but Mungall said it will pull back its request in order to comply with the freeze.

In the meantime, the government says it will undertake a comprehensive review of the utility meant to identify cost-savings measures for customers often asked to pay an extra $2 a month on electricity bills.

The Liberal critic, Tracy Redies, says the one year rate freeze is going to cost BC Hydro, calling it a distraction from the bigger issue of the future of the Site C project and the oversight of a BC Hydro fund surplus as well.

"A one year rate freeze costs Hydro $150 million," Redies said. "That means there's $150 million less to invest in capital projects and other investments that the utility needs to make."

"This is putting off decisions that should be made today to the future."

Recommendations from the review — including possible new rates — will be implemented starting in April 2019.

 

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Nova Scotia can't order electric utility to lower power rates, minister says

Nova Scotia Power Rate Regulation explains how the privately owned utility is governed by the Utility Review Board, limiting government authority, while COVID-19 relief measures include suspended disconnections, waived fees, payment plans, and emergency assistance.

 

Key Points

URB oversight where the board, not the province, sets power rates, with COVID-19 relief pausing disconnections and fees.

✅ Province lacks authority to order rate cuts

✅ URB regulates Nova Scotia Power rates

✅ Relief: no disconnections, waived fees, payment plans

 

The province can't ask Nova Scotia Power to lower its rates to ease the financial pressure on out-of-work residents because it lacks the authority to take that kind of action, even as the Nova Scotia regulator approved a 14% hike in a separate proceeding, the provincial energy minister said Thursday.

Derek Mombourquette said he is in "constant contact" with the privately owned utility.

"The conversations are ongoing with Nova Scotia Power," he said after a cabinet meeting.

When asked if the Liberal government would order the utility to lower electricity rates as households and businesses struggle with the financial fallout from the COVID-19 pandemic, Mombourquette said there was nothing he could do.

"We don't have the regulatory authority as a government to reduce the rates," he told reporters during a conference call.

"They're independent, and they are regulated through the (Nova Scotia Utility Review Board). My conversations with Nova Scotia Power essentially have been to do whatever they can to support Nova Scotians, whether it's residents or businesses in this very difficult time."

Asked if the board would take action, the minister said: "I'm not aware of that," despite the premier's appeals to regulators in separate rate cases.

However, the minister noted that the utility, owned by Emera Inc., has suspended disconnections for bill non-payment for at least 90 days, a step similar to reconnection efforts by Hydro One announced in Ontario.

It has also relaxed payment timelines and waived penalties and fees, while some jurisdictions offered lump-sum credits to help with bills.

Nova Scotia Power CEO Wayne O'Connor has also said the company is making additional donations to a fund available to help low-income individuals and families pay their energy bills.

In late March, Ontario cut electricity rates for residential consumers, farms and small businesses in response to a surge in people forced to work from home as a result of the pandemic, alongside bill support measures for ratepayers.

Premier Doug Ford said there would be a 45-day switch to off-peak rates, later moving to a recovery rate framework, which meant electricity consumers would be paying the lowest rate possible at any time of day.

The change was expected to cost the province about $162 million.

 

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By Land and Sea, Clean Electricity Needs to Lead the Way

Martha's Vineyard 100% Renewable Energy advances electrification across EVs, heat pumps, distributed solar, offshore wind, microgrids, and battery storage, cutting emissions, boosting efficiency, and strengthening grid resilience for storms and sea-level rise.

 

Key Points

It is an islandwide plan to electrify transport and buildings using wind, solar, storage, and a modern resilient grid.

✅ Electrify transport: EV adoption and SSA hybrid-electric ferries.

✅ Deploy heat pumps for efficient heating and cooling in buildings.

✅ Modernize the grid: distributed solar, batteries, microgrids, VPP.

 

Over the past year, it has become increasingly clear that climate change is accelerating. Here in coastal New England, annual temperatures and precipitation have risen more quickly than expected, tidal flooding is now commonplace, and storms have increased in frequency and intensity. The window for avoiding the worst consequences of a climate-changed planet is closing.

At their recent special town meeting, Oak Bluffs citizens voted to approve the 100 per cent renewable Martha’s Vineyard warrant article; now, all six towns have adopted the same goals for fossil fuel reduction and green electricity over the next two decades. Establishing these targets for the adoption of renewable energy, though, is only an initial step. Town and regional master plans for energy transformation are being developed, but this is a whole-community effort as well. Now is the time for action.

There is much to do to combat climate change, but our most important task is to transition our energy system from one heavily dependent on fossil fuels to one that is based on clean electricity. The good news is that this can be accomplished with currently available technology, and can be done in an economically efficient manner.

Electrification not only significantly lowers greenhouse gas emissions, but also is a powerful energy efficiency measure. So even though our detailed Island energy model indicates that eliminating all (or almost all) fossil fuel use will mean our electricity use will more than double, posing challenges for state power grids in some regions, our overall annual energy consumption will be significantly lower.

So what do we specifically need to do?

The primary targets for electrification are transportation (roughly 60 peer cent of current fossil fuel use on Martha’s Vineyard) and building heating and cooling (40 per cent).

Over the past two years, the increase in the number of electric vehicle models available across a wide range of price points has been remarkable — sedans, SUVs, crossovers, pickup trucks, even transit vans. When rebates and tax credits are considered, they are affordable. Range anxiety is being addressed both by increases in vehicle performance and the growing availability of charging locations (other than at home, which will be the predominant place for Islanders to refuel) and, over time, enable vehicle-to-grid support for our local system. An EV purchase should be something everyone should seriously consider when replacing a current fossil vehicle.

The elephant in the transportation sector room is the Steamship Authority. The SSA today uses roughly 10 per cent of the fossil fuel attributable to Martha’s Vineyard, largely but not totally in the ferries. The technology needed for fully electric short-haul vessels has been under development in Scandinavia for a number of years and fully electric ferries are in operation there. A conservative approach for the SSA would be to design new boats to be hybrid diesel-electric, retrofittable to plug-in hybrids to allow for shoreside charging infrastructure to be planned and deployed. Plug-in hybrid propulsion could result in a significant reduction in emissions — perhaps as much as 95 per cent, per the long-range plan for the Washington State ferries. While the SSA has contracted for an alternative fuel study for its next boat, given the long life of the vessels, an electrification master plan is needed soon.

For building heating and cooling, the answer for electrification is heat pumps, both for new construction and retrofits. These devices move heat from outside to inside (in the winter) or inside to outside (summer), and are increasingly integrated into connected home energy systems for smarter control. They are also remarkably efficient (at least three times more efficient than burning oil or propane), and today’s technology allows their operation even in sub-zero outside temperatures. Energy costs for electric heating via heat pumps on the Vineyard are significantly below either oil or propane, and up-front costs are comparable for new construction. For new construction and when replacing an existing system, heat pumps are the smart choice, and air conditioning for the increasingly hot summers comes with the package.

A frequent objection to electrification is that fossil-fueled generation emits greenhouse gases — thus a so-called green grid is required in order to meet our targets. The renewable energy fraction of our grid-supplied electricity is today about 30 per cent; by 2030, under current legislation that fraction will reach 54 per cent, and by 2040, 77 per cent. Proposed legislation will bring us even closer to our 2040 goals. The Vineyard Wind project will strongly contribute to the greening of our electricity supply, and our local solar generation (almost 10 per cent of our overall electricity use at this point) is non-negligible.

A final important facet of our energy system transformation is resilience. We are dependent today on our electricity supply, and this dependence will grow. As we navigate the challenges of climate change, with increasingly more frequent and more serious storms, 2021 electricity lessons underscore that resilience of electricity supply is of paramount importance. In many ways, today’s electricity distribution system is basically the same approach developed by Edison in the late 19th century. In partnership with our electric utility, we need to modernize the grid to achieve our resiliency goals.

While the full scope of this modernization effort is still being developed, the outline is clear. First, we need to increase the amount of energy generated on-Island — to perhaps 25 per cent of our total electricity use. This will be via distributed energy resources (in the form of distributed solar and battery installations as well as community solar projects) and the application of advanced grid control systems. For emergency critical needs, the concept of local microgrids that are detachable from the main grid when that grid suffers an outage are an approach that is technically sound and being deployed elsewhere. Grid coordination of distributed resources by the utility allows for handling of peak power demand; in the early 2030s this could result in what is known as a virtual power plant on the Island.

The adoption of the 100 renewable Martha’s Vineyard warrant articles is an important milestone for our community. While the global and national efforts in the climate crisis may sometimes seem fraught, we can take some considerable pride in what we have accomplished so far and will accomplish in coming years. As with many change efforts, the old catch-phrase applies: think globally, act locally.
 

 

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NT Power Penalized $75,000 for Delayed Disconnection Notices

NT Power OEB Compliance Penalty highlights a $75,000 fine for improper disconnection notices, 14-day rule violations, process oversight failures, refunds, LEAP support, and corrective training to strengthen consumer protection and regulatory adherence in Ontario areas.

 

Key Points

A $75,000 OEB fine to NT Power for improper disconnection notices; refunds, LEAP support, and improved compliance.

✅ $75k administrative monetary penalty; $25k LEAP donation; refunds

✅ 870 notices misdated; 14-day rule training implemented

✅ 10 disconnects reconnected; $100 goodwill credits

 

The Ontario Energy Board recently ruled against Newmarket-Tay Power Distribution Ltd. (NT Power), fining them $75,000 for failing to issue timely disconnection notices to 870 customers between April and August 2022. These notices did not comply with the Ontario Energy Board's distribution system code, similar to standards reaffirmed in the OEB decision on Hydro One rates earlier this year, which mandates a minimum 14-day notice period before disconnection.

Out of the affected customers, ten had their electricity services disconnected, and six were additionally charged reconnection fees. However, NT Power has since reconnected all disconnected customers and refunded the reconnection fees, as confirmed by the Ontario Energy Board.

In response to these issues, NT Power has voluntarily accepted an assurance of compliance. This agreement stipulates that NT Power will pay a $75,000 administrative monetary penalty. Furthermore, they will make an additional payment of $25,000 to the Salvation Army's Northridge Community Church, which administers the Low-income Energy Assistance Program (LEAP) within NT Power's service area, aligning with broader efforts to reduce costs for industry highlighted by Canadian Manufacturers & Exporters recently, according to the association.

This is not the first time NT Power has faced compliance issues in this regard. The utility company admitted that this incident marks the second instance in three years where they failed to adhere to their disconnection-related obligations as outlined in the code, and sector governance debates, including the Manitoba Hydro board debate, underscore how oversight remains a national focus.

In a statement to NewmarketToday, NT Power acknowledged a similar issue three years ago when they were alerted to problems with their disconnection process. They promptly made adjustments to align their in-house procedures with the requirements of the Ontario Energy Board. Unfortunately, they neglected to implement a secondary check, leading to disconnect notices being dated a few days too early.

Alex Braletic, NT Power's Vice President of Engineering and Operation, clarified that no customers were actually disconnected prematurely, and debates over paying for electricity in India illustrate how enforcement challenges differ globally, but the issued letters contained inaccuracies. He added that NT Power has since instituted additional verification procedures to prevent such errors from occurring again.

The Ontario Energy Board emphasized that NT Power has assured them that corrective measures have been taken to ensure that their staff involved in the disconnection process receive proper training and management oversight, and recent market reactions such as Hydro One shares falling after leadership changes underscore the importance of strong governance to guarantee compliance with regulatory requirements.

Brian Hewson, Vice President of Consumer Protection and Industry Performance at the Ontario Energy Board, stated, referencing earlier Ontario rate reductions for businesses that complemented consumer protections, "As a result of the actions we have taken and NT Power’s assurance that it is aware of its obligations and has taken steps to improve its processes, consumers will be better protected."

Braletic encouraged NT Power's customers who are facing difficulties paying their electricity bills to reach out to their customer service department or visit their website. He emphasized that various programs and services are available to provide relief for bills, and amid ongoing Toronto Hydro impersonation scams customers should contact NT Power directly. NT Power is committed to collaborating with customers proactively and connecting them with assistance to avoid serving them with disconnection notices.

Furthermore, NT Power plans to send a letter to the ten affected customers and provide each of them with a $100 bill credit as a goodwill gesture.

 

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USDA Grants $4.37 Billion for Rural Energy Upgrades

USDA Rural Energy Infrastructure Funding boosts renewable energy, BESS, and transmission upgrades, delivering grid modernization, resilience, and clean power to rural cooperatives through loans and grants aligned with climate goals, decarbonization, and energy independence.

 

Key Points

USDA Rural Energy Infrastructure Funding is a $4.37B program advancing renewables, BESS, and grid upgrades for rural power.

✅ Loans and grants for cooperatives modernizing rural grids.

✅ Prioritizes BESS to integrate wind and solar reliably.

✅ Upgrades transmission to cut losses and boost grid stability.

 

The U.S. Department of Agriculture (USDA) has announced a major investment of $4.37 billion aimed at upgrading rural electric cooperatives across the nation. This funding will focus on advancing renewable energy projects, enhancing battery energy storage systems (BESS), and upgrading transmission infrastructure to support a grid overhaul for renewables nationwide.

The USDA’s Rural Development initiative will provide loans and grants to cooperatives, supporting efforts to transition to cleaner energy sources that help rural America thrive, improve energy resilience, and modernize electrical grids in rural areas. These upgrades are expected to bolster the reliability and efficiency of energy systems, making rural communities more resilient to extreme weather events and fostering the expansion of renewable energy.

The funding will primarily support energy storage technologies, such as BESS, which allow excess energy from renewable sources like wind energy, solar, and hydropower technology to be stored and used during periods of high demand or when renewable generation is low. These systems are critical for integrating more renewable energy into the grid, ensuring a stable and sustainable power supply.

In addition to energy storage, the USDA’s investment will go toward enhancing the transmission networks that carry electricity across rural regions, aligning with a recent rule to boost renewable transmission across the U.S. By upgrading these systems, the USDA aims to reduce energy losses, improve grid stability, and ensure that rural communities have reliable access to power, particularly in remote and underserved areas.

This investment aligns with the Biden administration’s broader climate and clean energy goals, focusing on reducing greenhouse gas emissions and fostering sustainable energy practices, including next-generation building upgrades that lower demand. The USDA's support will also promote energy independence in rural areas, enabling local cooperatives to meet the energy demands of their communities while decreasing reliance on fossil fuels.

The funding is expected to have a far-reaching impact, not only reducing carbon footprints but also creating jobs in the renewable energy and construction sectors. By modernizing energy infrastructure, rural electric cooperatives can expand access to clean, affordable energy while contributing to the nationwide shift toward a more sustainable energy future.

The USDA’s commitment to supporting rural electric cooperatives marks a significant step in the transition to a more resilient and sustainable energy grid, mirroring grid modernization projects in Canada seen in recent years. By investing in renewables and modernizing transmission and storage systems, the government aims to improve energy access and reliability in rural communities, ultimately driving the growth of a cleaner, more energy-efficient economy.

As part of the initiative, the USDA has also highlighted its commitment to helping rural cooperatives navigate the challenges of implementing new technologies and infrastructure. The agency has pledged to provide technical assistance, ensuring that cooperatives have the resources and expertise needed to successfully complete these projects.

In conclusion, the USDA’s $4.37 billion investment represents a significant effort to improve the energy landscape of rural America. By supporting the development of renewable energy, energy storage, and transmission upgrades, the USDA is not only fostering a cleaner energy future but also enhancing the resilience of rural communities. This initiative will contribute to the nationwide transition toward a sustainable, low-carbon economy, ensuring that rural areas are not left behind in the global push for renewable energy.

 

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California Blackouts reveal lapses in power supply

California Electricity Reliability covers grid resilience amid heat waves, rolling blackouts, renewable energy integration, resource adequacy, battery storage, natural gas peakers, ISO oversight, and peak demand management to keep homes, businesses, and industry powered.

 

Key Points

Dependable California power delivery despite heat waves, peak demand, and challenges integrating renewables into grid.

✅ Rolling blackouts revealed gaps in resource adequacy.

✅ Early evening solar drop requires fast ramping and storage.

✅ Agencies pledge planning reforms and flexible backup supply.

 

One hallmark of an advanced society is a reliable supply of electrical energy for residential, commercial and industrial consumers. Uncertainty that California electricity will be there when we need it it undermines social cohesion and economic progress, as demonstrated by the travails of poor nations with erratic energy supplies.

California got a small dose of that syndrome in mid-August when a record heat wave struck the state and utilities were ordered to impose rolling blackouts to protect the grid from melting down under heavy air conditioning demands.

Gov. Gavin Newsom quickly demanded that the three overseers of electrical service to most of the state - the Public Utilities Commission, the Energy Commission and the California Independent Service Operator – explain what went wrong.

"These blackouts, which occurred without prior warning or enough time for preparation, are unacceptable and unbefitting of the nation's largest and most innovative state," Newsom wrote. "This cannot stand. California residents and businesses deserve better from their government."

Initially, there was some fingerpointing among the three entities. The blackouts had been ordered by the California Independent System Operator, which manages the grid and its president, Steve Berberich, said he had warned the Public Utilities Commission about the potential supply shortfall facing the state.

"We have indicated in filing after filing after filing that the resource adequacy program was broken and needed to be fixed," he said. "The situation we are in could have been avoided."

However, as political heat increased, the three agencies hung together and produced a joint report that admitted to lapses of supply planning and grid management and promised steps to avoid a repeat next summer.

"The existing resource planning processes are not designed to fully address an extreme heat storm like the one experienced in mid August," their report said. "In transitioning to a reliable, clean and affordable resource mix, resource planning targets have not kept pace to lead to sufficient resources that can be relied upon to meet demand in the early evening hours. This makes balancing demand and supply more challenging."

Although California's grid had experienced greater heat-related demands in previous years, most notably 2006, managers then could draw standby power from natural gas-fired plants and import juice from other Western states when necessary.

Since then, the state has shut down a number of gas-fired plants and become more reliant on renewable but less reliable sources such as windmills and solar panels.

August's air conditioning demand peaked just as output from solar panels was declining with the setting of the sun and grid managers couldn't tap enough electrons from other sources to close the gap.

While the shift to renewables didn't, unto itself, cause the blackouts, they proved the need for a bigger cushion of backup generation or power storage in batteries or some other technology. The Public Utilities Commission, as Beberich suggested, has been somewhat lax in ordering development of backup supply.

In the aftermath of the blackouts, the state Water Resources Control Board, no doubt with direction from Newsom's office, postponed planned shutdowns of more coastal plants, which would have reduced supply flexibility even more.

Shifting to 100% renewable electricity, the state's eventual goal, while maintaining reliability will not get any easier. The state's last nuclear plant, Diablo Canyon, is ticketed for closure and demand will increase as California eliminates gasoline- and diesel-powered vehicles in favor of "zero emission vehicles" as part of its climate policies push and phases out natural gas in homes and businesses.

Politicians such as Newsom and legislators in last week's blackout hearing may endorse a carbon-free future in theory, but they know that they'll pay the price as electricity prices climb if nothing happens when Californians flip the switch.

 

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