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New York faces soaring energy bills as utilities seek record rate hikes, aging grid infrastructure demands upgrades, and federal renewable policies shift. Consumers struggle with affordability, late payments, and rising costs of delivery and energy supply across the state.

Why is New York Facing Soaring Energy Bills?

New York faces soaring energy bills because utilities are raising rates to cover the costs of grid upgrades, inflation, and policy-driven changes in energy supply.

✅ Utilities seek double-digit rate hikes across the state

✅ Aging infrastructure and storm repairs increase delivery costs

✅ Federal policies and gas dependence push energy prices higher

New Yorkers are bracing for another wave of energy bill increases as utilities seek record-high rate hikes and policy changes ripple through the state’s power system. Electric bills in New York are the highest they’ve been in over a decade, and more than a million households are now at least two months behind on payments, a sign of pandemic energy insecurity that continues to strain budgets, owing utilities nearly $2 billion.

Record numbers of households have had their electricity or gas shut off this year — more than 61,000 in May alone — despite pandemic shut-off suspensions that had offered temporary relief, the highest the Public Utility Law Project (PULP) has ever recorded. “This August was the group’s busiest month ever,” said Laurie Wheelock, PULP’s executive director, citing a surge in calls to its hotline. “The top concern on people’s minds: rate hikes.”

Utilities across the state are pushing for significant price increases, citing aging infrastructure, the need for climate adaptation, and higher operating costs, as California regulators face calls for action amid rising bills. “We used to see single-digit rate hikes and now we see double-digit rate hikes,” said Jessica Azulay, executive director of the Alliance for a Green Economy. “That’s a new normal that is unacceptable.”

Several utilities have requested delivery rate increases of 25 percent or more, with some proposals as high as 39 percent. Upstate utilities NYSEG and RG&E are seeking to raise electric and gas bills by about $33 a month, although regulators are unlikely to approve the full amount.

The companies argue the hikes are needed “to pay for rebuilding an aging grid and expanding its capacity to meet residents’ and businesses’ service demands,” including storm repairs. They also claim the plan would create more than 1,000 jobs.

James Denn, a spokesperson for the Public Service Commission (PSC), said much of the cost pressure stems from “inflation, higher interest rates, supply chain disruptions, the global push to upgrade electrical infrastructure, and, most recently, the rising risk and uncertainty from tariffs,” trends reflected in U.S. electricity price data over the past two years.

While some have blamed New York’s clean-energy transition, a PSC report found that state climate policies account for only 5 to 9.5 percent of the average household’s electric bill, or approximately $10 to $12 per month. The bulk of the increases still come from traditional spending on infrastructure, storm resilience, and system expansion.

On the supply side, costs are rising too. President Donald Trump’s recent policies have threatened renewable-energy investment nationwide, even as states’ renewable ambitions carry significant costs, potentially adding to New York’s woes. His July “megabill” phases out a 30 percent federal tax credit for solar and wind unless projects begin construction by mid-2026. Industry experts warn that the changes could make renewables “more expensive to build” and “increase reliance on gas.”

“It just means more expensive power,” said Marguerite Wells of the Alliance for Clean Energy New York.

The state estimates Trump’s policy shifts could cost New York $60 billion in lost renewable investment. With fewer clean-energy projects moving forward, gas — which already supplies roughly half of the state’s electricity — will remain the dominant source, tying energy prices to volatile global markets and the kinds of price drivers seen in California in recent years.

Governor Kathy Hochul has called affordability “our greatest short-term challenge,” while consumer advocates are demanding reforms to reduce utility profits and overhaul “rate design,” and to strengthen protections such as the emergency disconnection moratorium that applies during declared emergencies.

“There is definitely a groundswell of concern,” Wheelock said. “We go to meetings and we’re getting questions about rate design, like, ‘What is the revenue decoupling mechanism?’ Never had that question before.”

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Alberta Electricity Rebate Extension provides $50 monthly credits, utility bill relief, and an natural gas rebate, supporting homes, farms, and small businesses with energy costs through December 2022, capped at 250 MWh per year.

Key Points

A provincial program extending $50 credits and energy relief, with a natural gas rebate for eligible consumers in 2022.

✅ Up to $300 in bill credits; auto-applied to eligible accounts

✅ Applies to whole bill; limit 250 MWh/year consumption

✅ Natural gas rebate triggers above $6.50/GJ Oct-Mar 2023

Alberta's electricity rebate program has been extended by three months amid an electricity price spike in Alberta, and will now be in effect until the end of December, the government said.

The program was originally to provide more than 1.9 million homes, farms and small businesses with $50 monthly credits on their electricity bills, complementing a consumer price cap on power bills, for July, August and September. It will now also cover the final three months of 2022.

Those eligible for the rebate could receive up to $300 in credits until the end of December, a relief for Alberta ratepayers facing deferral costs.

The program, designed to provide relief to Albertans hit hard by high utility bills and soaring energy prices, will cost the Alberta government $600 million.

Albertans who have consumed electricity within the past calendar year, up to a maximum of 250 megawatt hours per year, are eligible for the rebates, which will be automatically applied to consumer bills, as seen in Ontario electricity bill support initiatives.

The rebates will apply to the entire bill, similar to a lump-sum credit in Newfoundland and Labrador, not just the energy portion, the government said. The rebates will be automatic and no application will be needed.

Starting October, the government will enact a natural gas rebate program until March 2023 that will kick in when prices exceed $6.50 per gigajoule, and Alberta's consumer price cap on electricity will remain in place.

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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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TVA Rates and Renewable Energy Scrutiny spotlights electricity rates, distributed energy resources, solar and wind deployment, natural gas plans, grid access charges, energy efficiency cuts, and House oversight of lobbying, FERC inquiries, and least-cost planning.

Key Points

A congressional probe into TVA pricing and practices affecting renewables, energy efficiency, and climate goals.

✅ House panel probes TVA rates, DER and solar policies.

✅ Efficiency programs cut; least-cost planning questioned.

✅ Inquiry on lobbying, hidden fees; FERC scrutiny.

The Tennessee Valley Authority is facing federal scrutiny about its electricity rates and climate action, amid ongoing debates over network profits in other markets.

Members of the House Committee on Energy and Commerce are “requesting information” from TVA about its ratepayer bills and “out of concern” that TVA is interfering with the deployment of renewable and distributed energy resources, even as companies such as Tesla explore electricity retail to expand customer options.

“The Committee is concerned that TVA’s business practices are inconsistent with these statutory requirements to the disadvantage of TVA’s ratepayers and the environment,” the committee said in a letter to TVA CEO Jeffrey Lyash.

The four committee members — U.S. Reps. Frank Pallone, Jr. (D-NJ), Bobby L. Rush (D-IL), Diana DeGette (D-CO), and Paul Tonko (D-NY) — suggested that Tennessee Valley residents pay too much for electricity despite TVA’s relatively low rates, even as regulators have, in other cases, scrutinized mergers like the Hydro One-Avista deal to safeguard ratepayers, underscoring similar concerns. In 2020, Tennessee residents had electric bills higher than the national average, while low-income residents in Memphis have historically faced one of the highest energy burdens in the U.S.

In 2018, TVA reduced its wholesale rate while adding a grid access charge on local power companies—and interfered with the adoption of solar energy. Internal TVA documents obtained through a Freedom of Information Act request by the Energy and Policy Institute revealed that TVA permitted local power companies to impose new fees on distributed solar generation to “lessen the potential decrease in TVA load that may occur through the adoption of [behind the meter] generation.”

Additionally, the committee said TVA is not prioritizing energy conservation and efficiency or “least-cost planning” that includes renewables, as seen in oversight such as the OEB's Hydro One rates decision emphasizing cost allocation. TVA reduced its energy efficiency programs by nearly two-thirds between 2014 and 2018 and cut its energy efficiency customer incentive programs.

At this time, TVA has not aligned its long-term planning with the Biden administration’s goal to achieve a carbon-free electricity sector by 2035. TVA’s generation mix, which is roughly 60% carbon-free, comprises 39% nuclear, 19% coal, 26% natural gas, 11% hydro, 3% wind and solar, and 1% energy efficiency programs, according to TVA.

The committee is “greatly concerned that TVA has invested comparatively little to date in deploying solar and wind energy, while at the same time considering investments in new natural gas generation.”

TVA has announced plans to shutter the Kingston and Cumberland coal plants and is evaluating whether to replace this generation with natural gas, which is a fossil fuel, while debates over grid privatization raise questions about consumer benefits. TVA’s coal and natural gas plants represent most of the largest sources of greenhouses emissions in Tennessee.

TVA responded with a statement without directly addressing the committee’s concerns. TVA said its “developing and implementing emerging technologies to drive toward net-zero emissions by 2050.”

The final question that the House committee posed is whether TVA is funding any political activity. In 2019, the committee questioned TVA about its membership to the now-disbanded Utility Air Regulatory Group, a coalition that was involved in over 200 lawsuits that primarily fought Clear Air Act regulations.

TVA revealed that it had contributed $7.3 million to the industry lobbying group since 2001. Since TVA doesn’t have shareholders, customers paid for UARG membership fees, echoing findings that deferred utility costs burden customers in other jurisdictions. An Office of the Inspector General investigation couldn’t prove whether TVA’s contributions directly funded litigation because UARG didn’t have a line-by-line accounting of what they did with TVA’s dollars.

The congressional committee questioned whether TVA is still paying for lobbying or litigation that opposes “public health and welfare regulations.”

This last question follows a recent trend of questioning utilities about “hidden fees.” In December, the Federal Energy Regulatory Commission issued a Notice of Inquiry to examine how bills from investor-owned utilities might contain fees that fund political activity, and regulators have penalized firms like NT Power over customer notice practices, highlighting consumer protection. The Center for Biological Diversity filed a petition to protect electric and gas customers of investor-owned utilities from paying these fees, which may be used for lobbying, campaign-related donations and litigation.

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Quebec Energy Strategy focuses on hydropower, energy efficiency, and new dams as Hydro-Que9bec pursues Churchill Falls deals and the Champlain Hudson Power Express to New York, while nuclear power remains off the agenda.

Key Points

Quebec's plan prioritizes hydropower, efficiency, and new dams, excludes nuclear, and expands exports via CHPE.

✅ Nuclear power shelved; focus on renewables and dams

✅ Hydro-Que9bec pursues Churchill Falls and Gull Island talks

✅ CHPE line to New York advances; export contract with NYSERDA

Quebec Premier François Legault has closed the door on nuclear power, at least for now.

"For the time being, we're not touching it," said Legault when asked about the subject at a press scrum in New York on Tuesday.

The government is looking for new sources of energy as Hydro-Québec begins talks on a $185-billion strategy to wean the province off fossil fuels. In an interview with The Canadian Press at Quebec's official residence in New York, Legault said there are a number of avenues to explore:

• Energy efficiency.
• Negotiations with Newfoundland and Labrador over Churchill Falls and Gull Island.
• Upgrading existing dams and building new ones.

"Nuclear power is not on the agenda," he said.

Yet the premier seemed open to the nuclear question some time ago. In August, Radio-Canada reported that he had raised the idea of nuclear power in front of dozens of MNAs at the National Assembly last April.

Also in August, Hydro-Québec was evaluating the possibility of reopening the Gentilly-2 nuclear power plant, which has been closed since 2012.

Asked about his leader's statement on Tuesday, the Minister of the Economy, Pierre Fitzgibbon, maintained his line: "At the moment, we're looking at everything that's possible because we know that we have a significant deficit in the supply of green energy," he said.

Another step forward for the Quebec-New York line

Premier Legault took part in Tuesday morning's announcement that construction had begun on the New York converter station of the Champlain Hudson Power Express line. New York State Governor Kathy Hochul was present at the announcement.

In November 2021, Hydro-Québec signed a contract with the New York State Energy Research and Development Authority (NYSERDA) to export 10.4 terawatt-hours of electricity to the American metropolis over 25 years, while Ontario declined to renew a deal with Quebec.

At a time when the Quebec government is constantly asserting that more energy will be needed for future economic projects -- particularly the battery industry -- Legault sees no contradiction in selling electricity to the Americans and to neighboring provinces such as NB Power deals to import Hydro-Québec power.

"Whether it's this contract or the contract for companies coming to set up in Quebec, it's out of the surplus we currently have in Quebec. Now, we have dozens of investment project proposals in Quebec where we need additional electricity," he explained.

The line will supply 20 per cent of New York City's electricity needs, despite transmission constraints on Quebec-to-U.S. deliveries. Commissioning is scheduled for May 2026. The spin-offs are estimated at $30 billion, according to the premier.

Will this money be used to finance new dams, such as the La Romaine hydroelectric complex built in recent years?

"It's certain that future projects will cost several tens of billions of dollars. Hydro-Québec has the capacity to borrow. It's a very healthy company. There's no doubt that these revenues will improve Hydro-Québec's image," he said.

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Iran Bushehr Earthquake rattles southern province near the Bushehr nuclear power plant, USGS reports M5.1 at 38 km depth; seismic activity along major fault lines raises safety, damage, and monitoring concerns.

Key Points

A magnitude 5.1 quake near Bushehr nuclear plant at 38 km depth, with no damage reported, per USGS.

✅ USGS lists magnitude 5.1 at 38 km depth

✅ Near Bushehr nuclear power plant; built for stronger quakes

✅ Iran lies on major fault lines; quake risk is frequent

A magnitude 5 earthquake struck southern Iran early Friday near the Islamic Republic's only nuclear power plant. There were no immediate reports of damage or injuries as Iran continues combined-cycle conversions across its power sector.

The quake hit Iran's Bushehr province at 5:23 a.m., according to the U.S. Geological Survey. It put the magnitude at 5.1 and the depth of the earthquake at 38 kilometres (24 miles), in a province tied to efforts to transmit electricity to Europe in coming years.

Iranian state media did not immediately report on the quake. However, the Bushehr nuclear power plant was designed to withstand much stronger earthquakes, a notable consideration as Iraq plans nuclear power plants to address shortages.

A magnitude 5 earthquake can cause considerable damage, including power disruptions that have seen blackouts spark protests in some Iranian cities.

Iran sits on major fault lines and is prone to near-daily earthquakes, yet it remains a key player in regional power, with Iran-Iraq energy cooperation ongoing. In 2003, a 6.6-magnitude quake flattened the historic city of Bam, killing 26,000 people, and today Iran supplies 40% of Iraq's electricity through cross-border power deals. Bam is near the Bushehr nuclear plant, which wasn’t damaged at that time, while more recently Iran finalized deals to rehabilitate Iraq's power grid to improve resilience.

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