First Nations communities ready for the grid

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Four small First Nations communities have officially hooked up to the BC Hydro power grid for the first time - one step in an ongoing process of helping improve residents' lives through technical improvements and economic development.

In what one official with the Lower St'at'imc Tribal Council LSTC said amounts to providing "better access to what most of us take for granted," those living in Q'aLaTku7em, Skatin, Port Douglas and Tipella - along with a host of invited guests - celebrated the electrification of the communities of the Southern St'at'imc Samahquam, Skatin and Douglas nations on November 12.

For decades, the communities of the Lillooet Lake/Harrison Lake corridor - stretching out along the In-SHUCK-ch Forest Service Road between Mount Currie and the Fraser Valley - had had high-tension BC Hydro transmission lines running overhead, but for technical reasons could not hook up to the grid.

But after negotiations and the recent infusion of some $32 million to put in two specially designed substations allowing workers to tie into the 360-kilovolt lines, and the addition of power lines linking the substations to the communities, they'll now be able to mothball the balky and eco-unfriendly diesel generators that have provided their only electricity until now.

In part, the breakthrough was made possible by recent independent power projects built in the Lillooet-Harrison corridor in conjunction with the In-SHUCK-ch by Cloudworks Energy, Nigel Protter, LSTC administrator, said.

"It probably would have happened without that, but probably not at this particular time," he said.

In addition to the new electrical infrastructure, the project of electrifying the communities also involved having electricians visit each of the 77 residents and five commercial buildings to ensure that they were up to building codes and could handle the new power source, Protter said.

"Some of the work we did was quite extensive... we played a big, central coordinating role in all this, and we're quite proud of it," Protter said, adding, "Electrification is step one, and we're hoping to work on governance next. It's one of a lot of pieces that are going to help establish a sustainable, self-determined lifestyle."

Protter said the new electricity is not three-phase power that can support the development of industry. The single-phase power, though, is adequate to support commercial, residential and office uses.

"It's part of the trajectory of where these bands know that they need to go," he said. "They want to build capacity so that members who are living off reserve can feel comfortable coming home and be part of their community, if they wish."

Gerard Peters Eppa, chief treaty negotiator for the In-SHUCK-ch Nation, said he was "excited" to see the communities tie into the BC Hydro grid some 60 years after the original transmission lines were installed.

Peters, who for two decades has been working on securing a treaty on behalf of the Samahquam and Skatin - the process is currently suspended after Douglas leaders announced late last year that their nation was withdrawing from that process - said treaty negotiations have been occurring concurrent with talks involving the St'at'imc Nation comprised of 11 bands in the region to bring about technical upgrades.

"B.C. Electric, the predecessor to BC Hydro, installed the line through the valley floor about 60 years ago now. At that time, the federal government was represented by the Indian Agent, and at that time the leadership on the Indian side was not as sophisticated as they are today," Peters said. "Many of them required interpreters. One of them was my friend the late Ron Gabriel, who translated for his grandfather.

"The fact of the connection finally occurring required a number of jurisdictions and entities to converge. We had the continuing role of BC Hydro, and I have to say that the St'at'imc Nation, in negotiating a larger hydro agreement, played a key role here."

Peters added that he thinks treaty negotiations also helped increase the profile of the nations within federal and provincial government circles and helped lead to this announcement.

He said he hopes the citizens and leadership of the Douglas Nation will see that and consider returning to the treaty process.

"We would not have made the progress on the technical issues had we not made significant progress in the treaty process. I hope that Douglas will see that," Peters said.

Peters said he thinks the next big project on the infrastructure front should be improvements to the In-SHUCK-ch road - not pavement, but at least a good, two-lane gravel surface.

"I'm going to take the opportunity to remind the province of B.C. to say that the connection to the grid is one thing, but improving the road is another important step and that needs to occur soon," he said. "We want it improved to the point where we don't have to worry about basic safety so that we can travel the road year-round."

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Residential electricity use -- and bills -- on the rise thanks to more working from home

Work From Home Energy Consumption is driving higher electricity bills as residential usage rises. Smart meter data, ISO-New-England trends, and COVID-19 telecommuting show stronger power demand and sensitivity to utility rates across regions.

 

Key Points

Higher household electricity use from telecommuting, shifting load to residences and raising utility bills.

✅ Smart meters show 5-22 percent residential usage increases.

✅ Commercial demand fell as home cooling and IT loads rose.

✅ Utility rates and AC use drive bill spikes during summer.

 

Don't be surprised if your electric bills are looking higher than usual, with a sizable increase in the amount of power that you have used.

Summer traditionally is a peak period for electricity usage because of folks' need to run fans and air-conditioners to cool their homes or run that pool pump. But the arrival of the coronavirus and people working from home is adding to amount of power people are using.

Under normal conditions, those who work in their employer's offices might not be cooling their homes as much during the middle of the day or using as much electricity for lights and running computers.

For many, that's changed.

Estimates on how much of an increase residential electric customers are seeing as result of working from home vary widely.

ISO-New England, the regional electric grid operator, has seen a 3 percent to 5 percent decrease in commercial and industrial power demand, even as the grid overseer issued pandemic warnings nationally. The expectation is that much of that decrease translates into a corresponding increase in residential electricity usage.

But other estimates put the increase in residential electricity usage much higher. A Washington state company that makes smart electric meters, Itron, estimates that American households are using 5 percent to 10 percent more electricity per month since March, when many people began working from home as part of an effort to prevent the spread of the coronavirus.

Another smart metering company, Cambridge, Mass.-based Sense, found that average home electricity usage increased 22 percent in April compared to the same period in 2019, a reflection of people using more electricity while they stayed home. Based on its analysis of data from 5,000 homes across 30 states, Sense officials said a typical customer's monthly electric bill increased by between $22 and $25, with a larger increase for consumers in states with higher electricity rates.

Connecticut-specfic data is harder to come by.

Officials with Orange-based United Illuminating declined to provide any customer usage data, though, like others in the power industry, they did acknowledge that residential customers are using more electricity. And the state's other large electric distribution utility, Eversource, was unable to provide any recent data on residential electric usage. The company did tell Connecticut utility regulators there was a 3 percent increase in residential power usage for the week of March 21 compared to the week before.

Over the same time period, Eversource officials saw a 3 percent decrease in power usage by commercial and industrial customers.

Separately, nuclear plant workers raised concerns about pandemic precautions at some facilities, reflecting operational strains.

Alan Behm of Cheshire said he normally uses 597 kilowatt hours of electricity during an average month. But in April of this year, the amount of electricity he used rose by nearly 51 percent.

With many offices closed, the expense of heating, cooking and lighting is being shifted from employer to employee, and some utilities such as Manitoba Hydro have pursued unpaid days off to trim costs during the pandemic. And one remote work expert believes some companies are recognizing the burden those added costs are placing on workers -- and are trying to do something about it.

Technology giant Google announced in late May that it was giving employees who work from home $1,000 allowances to cover equipment costs and other expenses associated with establishing a home office.

Moe Vela, chief transparency officer for the New York City-based computer software company TransparentBusiness, said the move by Google executives is a savvy one.

"Google is very smart to have figured this out," Vela said. "This is what employees want, especially millenials. People are so much happier to be working remotely, getting those two to three hours back per day that some people spend getting to and from work is so much more important than a stipend."

Vela predicted that even after a vaccine is found for the corona virus, one of the key worklife changes is likely to be a broader acceptance of telework and working from home.

Beyond the immediate shifts, more young Canadians would work in electricity if awareness improved, pointing to future talent pipelines.

"I think that's where we're headed," he said. "I think it will make an employer more attractive as they try to attract talent from around the world."

Vela said employers save an average of $11,000 per year for each employee they have working from home.

"It would be a brilliant move if a company were to share some of that amount with employees," he said. "I wouldn't do it if it's going to cause a company to not be there (in business) though."

The idea of a company sharing whatever savings it achieves by having employees work from home wasn't well received by many Connecticut residents who responded to questions posed via social media by Hearst Connecticut Media. More than 100 people responded and an overwhelming number of people spoke out against the idea.

"You are saving on gas and other travel related expenses, so the small increase in your electric bill shouldn't really be a concern," said Kathleen Bennett Charest of Wallingford.

Jim Krupp, also of Wallingford, said, "to suggest that the employers compensate the employees makes as much sense as suggesting that the employees should take a pay cut due to their reduced expenses for travel, day care, and eating lunch at work."

"Employers must still maintain their offices and incur all of the fixed expenses involved, including basic utilities, taxes and insurance," Krupp said. "The cost savings (for employers) that are realized are also offset by increased costs of creating and maintaining IT networks that allow employees to access their work sites from home and the costs of monitoring and managing the work force."

Kiki Nichols Nugent of Cheshire said she was against the idea of an employee trying to get their employer to pay for the increased electricity costs associated with working from home.

"I would not nickle and dime," Nugent said. "If companies are saving on electricity now, maybe employers will give better raises next year."

New Haven resident Chris Smith said he is "just happy to have a job where I am able to telecommute."

"When teleworking becomes more the norm, either now or in the future, we may see increased wages for teleworkers either for the lower cost to the employer or for the increase in productivity it brings," Smith said.

 

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Bruce Power awards $914 million in manufacturing contracts

Bruce Power Major Component Replacement secures Ontario-made nuclear components via $914M contracts, supporting refurbishment, clean energy, low-cost electricity, and advanced manufacturing, extending reactor life to 2064 while boosting jobs, supply chain growth, and economy.

 

Key Points

A refurbishment program investing $914M in advanced manufacturing to extend reactors and deliver low-cost, clean power.

✅ $914M Ontario-made components for steam generators, tubes, fittings

✅ Extends reactor life to 2064; clean, low-cost electricity for Ontario

✅ Supports 22,000 jobs annually; boosts supply chain and economy

 

Today, Bruce Power signed $914 million in advanced manufacturing contracts for its Major Component Replacement, which gets underway in 2020, as the reactor refurbishment begins across the site and will allow the site to provide low-cost, carbon-free electricity to Ontario through 2064.

The Major Component Replacement (MCR) Project agreements include:

  • $642 million to BWXT Canada Inc. for the manufacturing of 32 steam generators to be produced at BWXT’s Cambridge facility.
  • $144 million to Laker Energy Products for end fittings, liners and flow elements, which will be manufactured at its Oakville location.
  • $62 million to Cameco Fuel Manufacturing, in Cobourg, for calandria tubes and annulus spacers for all six MCRs.
  • $66 million for Nu-Tech Precision Metals, in Arnprior, for the production of zirconium alloy pressure tubes for Units 6 and 3.

 

Bruce Power’s Life-Extension Program, which started in January 2016 with Asset Management Program investments and includes the MCRs on Units 3-8, remains on time and on budget.”

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By signing these contracts today, we have secured ‘Made in Ontario‘ solutions for the components we will need to successfully complete our MCR Projects, extending the life of our site to 2064,” said Mike Rencheck, Bruce Power’s President and CEO.

“Today’s announcements represent a $914 million investment in Ontario’s highly skilled workforce, which will create untold economic opportunities for the communities in which they operate for many years to come.”We look forward to growing our already excellent relationships with these supplier partners and unions as we work toward our common goal, supported by an operating record, of continuing to keep Canada’s largest infrastructure project on time and on budget."

By extending the life of Bruce Power’s reactors to 2064, the company will create and sustain 22,000 jobs annually, both directly and indirectly, across Ontario, while investing $4 billion a year into the province’s economy, underscoring the economic benefits of nuclear development across Canada.

At the same time, Bruce Power will produce 30 per cent of Ontario’s electricity at 30 per cent less than the average cost to generate residential power, while also producing zero carbon emissions, aligning with Pickering NGS life extensions across the province.The Hon. Glenn Thibeault, Minister of Energy, said today’s announcement is good news for the people of Ontario.”

Bruce Power’s Life-Extension Program makes sense for Ontario, and the announcements made today will create good jobs and benefit our economy for decades to come,” Minister Thibeault said.

“Moving forward with the refurbishment project is part of our government’s plan to support care and opportunity, while producing affordable, reliable and clean energy for the people of Ontario.”Kim Rudd, Parliamentary Secretary to the Minister of Natural Resources and MP for Northumberland-Peterborough South, offered her support and congratulations.”

Related planning includes Bruce C project exploration funding that supports long-term nuclear options in Ontario.

Canada’s nuclear industry, including its advanced manufacturing capability, is respected internationally,” Rudd said. “Bruce Power’s announcement today related to the advanced manufacturing of key components throughout Ontario as part of its Life-Extension Program will allow these suppliers to have a secure base to not only meet Canada’s needs, but export internationally.”

 

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UK homes can become virtual power plants to avoid outages

Demand Flexibility Service rewards households and businesses for shifting peak-time electricity use, enhancing grid balancing, energy security, and net zero goals with ESO and Ofgem support, virtual power plants, and 2GW capacity this winter.

 

Key Points

A grid program paying homes and businesses to shift peak demand, boosting energy security and lowering winter costs.

✅ Pays £3,000/MWh for reduced peak-time usage

✅ Targets at least 2GW via virtual power plants

✅ Rolled out by suppliers with Ofgem and ESO

 

This month we published our analysis of the British electricity system this winter. Our message is clear: in the base case our analysis indicates that supply margins are expected to be adequate, however this winter will undoubtedly be challenging, with high winter energy costs adding pressure. Therefore, all of us in the electricity system operator (ESO) are working round the clock to manage the system, ensure the flow of energy and do our bit to keep costs down for consumers.

One of the tools we have developed is the demand flexibility service, designed to complement efforts to end the link between gas and electricity prices and reduce bills. From November, this new capability will reward homes and businesses for shifting their electricity consumption at peak times. And we are working with the government, businesses and energy providers to encourage as high a level of take-up as possible. We are confident this innovative approach can provide at least 2 gigawatts of power – about a million homes’ worth.

What began as an initiative to help achieve net zero and keep costs down is also proving to be an important tool in ensuring Britain’s energy security, alongside the Energy Security Bill progressing into law.

We are particularly keen to get businesses involved right across Britain. When the Guardian first reported on this service we had calls from businesses ranging from multinationals to an owner of a fish and chip shop asking how they could do their bit and get signed up.

We can now confirm our proposals for how much people and businesses can be paid for shifting their electricity use outside peak times. We anticipate paying a rate of £3,000 per megawatt hour, reflecting the dynamics of UK natural gas and electricity markets today. Businesses and homes can become virtual power plants and, crucially, get paid like one too. For a consumer that could mean a typical household could save approximately £100, and industrial and commercial businesses with larger energy usage could save multiples of this.

We are working with Ofgem to get this scheme launched in November and for it to be rolled out through energy suppliers. If you are interested in participating, or understanding what you could get paid, please contact your energy supplier.

Innovations such as these have never mattered more. Vladimir Putin’s unlawful aggression means we are facing unprecedented energy market volatility, across the continent where Europe’s worst energy nightmare is becoming reality, and pressures on energy supplies this winter.

As a result of Russia’s war in Ukraine, European gas is scarce and prices are high, prompting Europe to weigh emergency measures to limit electricity prices amid the crisis. Alongside this, France’s nuclear fleet has experienced a higher number of outages than expected. Energy shortages in Europe could have knock-on implications for energy supply in Britain.

We have put in place additional contingency arrangements for this winter. For example, the ability to call on generators to fire-up emergency coal units, even as the crisis is a wake-up call to ditch fossil fuels for many, giving Britain 2GW of additional capacity.

We need to be clear, it is possible that without these measures supply could be interrupted for some customers for limited periods of time. This could eventually force us to initiate a temporary rota of planned electricity outages, meaning that some customers could be without power for up to three hours at a time through a process called the electricity supply emergency code (ESEC).

Under the ESEC process we would advise the public the day before any disconnections. We are working with government and industry on planning for this so that the message can be spread across all communities as quickly and accurately as possible. This would include press conferences, social media campaigns, and working with influencers in different communities.

 

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Paris Finalises Energy Roadmap for 2025–2035 with Imminent Decree

France 2025–2035 Energy Roadmap accelerates carbon neutrality via renewables expansion, energy efficiency, EV adoption, heat pumps, hydrogen, CCS, nuclear buildout, and wind and solar targets, cutting fossil fuels and emissions across transport, housing, industry.

 

Key Points

A national plan to cut fossil use and emissions, boost renewables, and scale efficiency and clean technologies.

✅ Cuts fossil share to 30% by 2035 with efficiency gains

✅ Scales solar PV and wind; revives nuclear with EPR 2

✅ Electrifies transport and industry with EVs, hydrogen, CCS

 

Paris is on the verge of finalising its energy roadmap for the period 2025–2035, with an imminent decree expected to be published by the end of the first quarter of 2025. This roadmap is part of France's broader strategy to achieve carbon neutrality by 2050, aligning with wider moves toward clean electricity regulations in other jurisdictions.

Key Objectives of the Roadmap

The energy roadmap outlines ambitious targets for reducing greenhouse gas emissions across various sectors, including transport, housing, food, and energy. The primary goals are:

  • Reducing Fossil Fuel Dependency: Building on the EU's plan to dump Russian energy, the share of fossil fuels in final energy consumption is to fall from 60% in 2022 to 42% in 2030 and 30% in 2035.

  • Enhancing Energy Efficiency: A target of a 28.6% reduction in energy consumption between 2012 and 2030 is set, focusing on conservation and energy efficiency measures.

  • Expanding Decarbonised Energy Production: The roadmap aims to accelerate the development of renewable energies and the revival.

Sector-Specific Targets

  • Transport: The government aims to cut emissions by 31, focusing on the growth of electric vehicles, increasing public transport, and expanding charging infrastructure.

  • Housing: Emissions from buildings are to be reduced by 44%, with plans to replace 75% of oil-fired and install 1 million heat pumps.

  • Agriculture and Food: The roadmap includes measures to reduce emissions from agriculture by 9%, promoting organic farming and reducing the use of nitrogen fertilizers.

  • Industry: A 37% reduction in emissions is targeted through the use of electricity, biomass, hydrogen, and CO₂ capture and storage technologies informed by energy technology pathways outlined in ETP 2017.

Renewable Energy Targets

The roadmap sets ambitious targets for renewable energy production that align with Europe's ongoing electricity market reform efforts:

  • Photovoltaic Power: A sixfold increase in photovoltaic power between 2022

  • Offshore Wind Power: Reaching 18 gigawatts up from 0.6 GW

  • Onshore Wind Power: Doubling capacity from 21 GW to 45 GW over the same period.

  • Nuclear Power: The commissioning of the evolutionary power and the construction of six EPR 2 reactors, underpinned by France's deal on electricity prices with EDF to support long-term investment, with the potential for eight more.
     

Implementation and Governance

The final version of the roadmap will be adopted by decree, alongside a proposed electricity pricing scheme to address EU concerns, rather than being enshrined in law as required by the Energy Code. The government had previously abandoned the energy-climate planning. The decree is expected to be published at the end of the Multiannual Energy Program (PPE) and in the second half of the third National Low-Carbon Strategy (SNBC).

Paris's finalisation of its energy roadmap for 2025–2035 marks a significant step towards achieving carbon neutrality by 2050. The ambitious targets set across various sectors reflect a comprehensive approach to reducing greenhouse gas emissions and transitioning to a more sustainable energy system amid the ongoing EU electricity reform debate shaping market rules. The imminent decree will provide the legal framework necessary to implement these plans and drive the necessary changes across the country.

 

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B.C. Streamlines Regulatory Process for Clean Energy Projects

BCER Renewable Energy Permitting streamlines single-window approvals for wind, solar, and transmission projects in BC, cutting red tape, aligning with CleanBC, and accelerating investment, Indigenous partnerships, and low-carbon infrastructure growth provincewide.

 

Key Points

BC's single-window framework consolidates approvals for wind, solar, and transmission to accelerate energy projects.

✅ Single-window permits via BC Energy Regulator (BCER)

✅ Covers wind, solar, and high-voltage transmission lines

✅ Aligns with CleanBC, supports Indigenous partnerships

 

In a decisive move to bolster clean energy initiatives, the government of British Columbia (B.C.) has announced plans to overhaul the regulatory framework governing renewable energy projects. This initiative aims to expedite the development of wind, solar, and other renewable energy sources, positioning B.C. as a leader in sustainable energy production.

Transitioning Regulatory Authority to the BC Energy Regulator (BCER)

Central to this strategy is the proposed legislation, set to be introduced in spring 2025, which will transfer the permitting and regulatory oversight of renewable energy projects, aligning with offshore wind regulation plans at the federal level, from multiple agencies to the BC Energy Regulator (BCER). This transition is designed to create a "single-window" permitting process, simplifying approvals and reducing bureaucratic delays for developers.

Expanding BCER's Mandate

Historically known as the British Columbia Oil and Gas Commission, the BCER's mandate has evolved to encompass a broader range of energy projects. The upcoming legislation will empower the BCER to oversee renewable energy projects, including wind and solar, as well as high-voltage transmission lines like the North Coast Transmission Line (NCTL), in step with renewable transmission planning efforts elsewhere in North America. This expansion aims to streamline the regulatory process, providing developers with a single point of contact throughout the project lifecycle.

Economic and Environmental Implications

The restructuring is expected to unlock significant economic opportunities. Projections suggest that the streamlined process could attract between $5 billion and $6 billion in private investment and complement recent federal grid modernization funding initiatives, generating employment opportunities and fostering economic growth. Moreover, by facilitating the rapid deployment of renewable energy projects, B.C. aims to enhance its clean energy capacity, contributing to global sustainability goals.

Strengthening Partnerships with Indigenous Communities

A pivotal aspect of this initiative is the emphasis on collaboration with Indigenous communities. The government has highlighted the importance of engaging First Nations in the development process, ensuring that projects are not only environmentally sustainable but also socially responsible. This approach seeks to honor Indigenous rights and knowledge, fostering partnerships that benefit all stakeholders.

Supporting Infrastructure Development

The acceleration of renewable energy projects necessitates corresponding infrastructure enhancements. The NCTL, for instance, is crucial for meeting the increased electricity demand from sectors such as mining, port electrification, and hydrogen production, and for addressing regional grid constraints that limit renewable integration. By improving the transmission infrastructure, B.C. aims to support the growing energy needs of these industries while promoting clean energy solutions.

Aligning with CleanBC Objectives

This regulatory overhaul aligns seamlessly with B.C.'s CleanBC initiative, which sets ambitious targets for reducing greenhouse gas emissions and promoting energy efficiency, and supports Canada's goal of zero-emissions electricity by 2035 under active consideration. By removing regulatory barriers and expediting project approvals, the government aims to accelerate the transition to a low-carbon economy, positioning B.C. as a hub for clean energy innovation.

Addressing Potential Challenges

While the initiative has been lauded for its potential, experts caution that careful consideration must be given to environmental assessments and Indigenous consultation processes, as well as to lessons from Alberta's solar expansion challenges on land use and grid impacts. Ensuring that projects meet environmental standards and respect Indigenous rights is crucial for the long-term success and acceptance of renewable energy developments.

The proposed changes mark a significant shift in B.C.'s approach to energy development, reflecting a commitment to sustainability and economic growth. As the legislation moves through the legislative process, stakeholders across the energy sector are closely monitoring developments, particularly as Alberta ends its renewables moratorium and resumes project approvals across the Prairies, anticipating a more efficient and transparent regulatory environment that supports the rapid expansion of renewable energy projects.

B.C.'s plan to streamline the regulatory process for clean energy projects represents a bold step toward a sustainable and prosperous energy future. By consolidating regulatory authority under the BCER, fostering Indigenous partnerships, and aligning with broader environmental objectives, the province is setting a precedent for effective governance in the transition to renewable energy.

 

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West Coast consumers won't benefit if Trump privatizes the electrical grid

BPA Privatization would sell the Bonneville Power Administration's transmission lines, raising FERC-regulated grid rates for ratepayers, impacting hydropower and the California-Oregon Intertie under the Trump 2018 budget proposal in the Pacific Northwest region.

 

Key Points

Selling Bonneville's transmission grid to private owners, raising rates and returns, shifting costs to ratepayers.

✅ Trump 2018 budget targets BPA transmission assets for sale.

✅ Higher capital costs, taxes, and profit would raise transmission rates.

✅ California-Oregon Intertie and hydropower flows face price impacts.

 

President Trump's 2018 budget proposal is so chock-full of noxious elements — replacing food stamps with "food boxes," drastically cutting Medicaid and Medicare, for a start — that it's unsurprising that one of its most misguided pieces has slipped under the radar.

That's the proposal to privatize the government-owned Bonneville Power Administration, which owns about three-quarters of the high-voltage electric transmission lines in a region that includes California, Washington state and Oregon, serving more than 13.5 million customers. By one authoritative estimate, any such sale would drive up the cost of transmission by 26%-44%.

The $5.2-billon price cited by the Trump administration, moreover, is nearly 20% below the actual value of the Bonneville grid — meaning that a private buyer would pocket an immediate windfall of $1.2 billion, at the expense of federal taxpayers and Bonneville customers.

Trump's plan for Portland, Ore.-based Bonneville is part of a larger proposal to sell off other government-owned electricity bodies, including the Colorado-based Western Area Power Administration and the Oklahoma-based Southwestern Power Administration. But Bonneville is by far the largest of the three, accounting for nearly 90% of the total $5.8 billion the budget anticipates collecting from the sales. The proposal is also part of the administration's

Both plans are said to be politically dead-on-arrival in Washington. But they offer a window into the thinking in the Trump White House.

"The word 'muddle' comes to mind," says Robert McCullough, a respected Portland energy consultant, referring to the justification for the privatization sale included in the Trump budget.

The White House suggests that selling the Bonneville grid would result in lower costs. But that narrative, McCullough wrote in a blistering assessment of the proposal, "displays a severe lack of understanding about the process of setting transmission rates."

McCullough's assessment is an update of a similar analysis he performed when the privatization scheme was first raised by the Trump administration last year. In that analysis issued in June, McCullough said the proposal "raises the question of why these valuable assets would be sold at a discount — and who would get the benefit of the discounted price."

The implications of a sale could be dire for Californians. Bonneville is the majority owner of the California-Oregon Intertie, an electrical transmission system that carries power, including Columbia River-generated hydropower and other clean-energy generation in British Columbia that supports the regional exchange, south to California in the summer and excess California generation to the Pacific Northwest in the winter.

But the idea has drawn fire throughout the region. When it was first broached last year, the Public Power Council, an association of utilities in the Northwest, assailed it as an apparent "transfer of value from the people of the Northwest to the U.S. Treasury," drawing parallels to Manitoba Hydro governance issues elsewhere.

The region's political leaders had especially harsh words for the idea this time around. "Oregonians raised hell last year when Trump tried to raise power bills for Pacific Northwesterners by selling off Bonneville Power, and yet his administration is back at it again," Sen. Ron Wyden (D-Ore.) said after the idea reappeared. "Our investment shouldn't be put up for sale to free up money for runaway military spending or tax cuts for billionaires." Sen. Maria Cantwell (D-Wash.) promised in a statement to work to "stop this bad idea in its tracks."

The notion of privatizing Bonneville predates the Trump administration; it was raised by Bill Clinton and again by George W. Bush, who thought the public would gain if the administration could sell its power at market rates. Both initiatives failed.

The same free-enterprise ideology underlies the Trump proposal. Privatizing the transmission lines "encourages a more efficient allocation of economic resources and mitigates unnecessary risk to taxpayers," the budget asserts. "Ownership of transmission assets is best carried out by the private sector where there are appropriate market and regulatory incentives."

But that's based on a misunderstanding of how transmission rates are set, McCullough says. Transmission is essentially a monopoly enterprise, with rates overseen by the Federal Energy Regulatory Commission based on the grid's costs, and with federal scrutiny of public utilities such as the TVA underscoring that oversight. There's very little in the way of market "incentives" involved in transmission, since no one has come forward to build a competing grid.

Those include the owners' cost of capital — which would be much higher for a private owner than a government agency, McCullough observes, as Hydro One investor uncertainty demonstrates in practice. A private owner, unlike the government-owned Bonneville, also would owe federal income taxes, which would be passed on to consumers.

Then there's the profit motive. Bonneville "currently sells and delivers its power at cost," McCullough wrote last year. "Under a private regime, an investor-owned utility would likely charge a higher rate of return, a pattern seen when UK network profits drew regulatory rebukes."

None of these considerations appears to have been factored into the White House budget proposal. "Either there's an unsophisticated person at the Office of Management and Budget thinking up these numbers himself," McCullough told me, "or there would seem to be ongoing negotiations with an unidentified third party." No such buyer has emerged in the past, however.

What's left is a blind faith in the magic of the market, compounded by ignorance about how the transmission market operates. Put it together, and there's reason to wonder if Trump is even serious about this plan.

 

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