Avoiding a blackout

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Blackouts are more than an annoyance. They are costly in terms of economic loss and needless deaths.

In less than 48 hours, the Aug. 14, 2003, blackout, the largest power outage in U.S. history, ran up as much as $12 billion in economic losses. Life went dark for roughly 60 million Americans and Canadians, many of whom also lost their water supplies, as well.

At least 11 died from various causes linked to the loss of electricity. Looting, fires and general civic unrest plagued the big cities affected by the blackout.

A once-in-a-lifetime event, an anomaly that shouldn't require a second thought? Not necessarily.

"The U.S. faces potentially crippling electricity brownouts and blackouts beginning in the summer of 2009, which may cost tens of billions of dollars and threaten lives," says the NextGen Energy Council's report, "Lights Out In 2009?"

If the nation is to avoid a repeat of the 2003 blackout, its power supply desperately needs to be boosted through new construction of nuclear-, coal- and gas-fired plants. NextGen estimates that 120 gigawatts of new generation, enough to power as many as 48 million homes, will be needed to provide a 15% reserve margin. That's the rough minimum needed to ensure that the system is reliable.

But that's only half the fix. Additional electricity is worthless if it can't be distributed to users. NextGen estimates the U.S. needs more than 14,500 miles — that's New York to Los Angeles and back three times — of transmission lines by 2016 to relieve congestion that will inevitably cause power outages if the issue isn't addressed.

The improvements need to begin immediately. Power demand is expected to grow by 18% over the next 10 years while estimates indicate that power output will increase only 8% through 2016.

In a fully rational world where markets are left to themselves, the work would get done. The capital is available and the incentives are in place.

But our world is filled with irrational actors who foolishly — and predictably — resist the changes that are obviously needed to move forward by erecting difficult regulatory and policy hurdles. The "development of numerous coal plants," for instance, has been canceled or deferred in recent years, NextGen says, because of environmental rules.

"The single biggest threat to system reliability," says the NextGen report, "is opposition from well-funded environmental groups that oppose and file lawsuits against virtually every new electricity project proposed."

Report authors say at least $300 billion will be needed to update the system. But as long as policymakers let themselves be bullied and bought off by environmental groups, it might as well be $300 trillion.

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Renewables are not making electricity any more expensive

Renewables' Impact on US Wholesale Electricity Prices is clear: DOE analysis shows wind and solar, capacity gains, and natural gas lowering rates, shifting daily patterns, and triggering occasional negative pricing in PJM and ERCOT.

 

Key Points

DOE data show wind and solar lower wholesale prices, reshape price curves, and cause negative pricing in markets.

✅ Natural gas price declines remain the largest driver of cheaper power

✅ Wind and solar shift seasonal and time-of-day price patterns

✅ Negative wholesale prices appear near high wind and solar output

 

One of the arguments that's consistently been raised against doing anything about climate change is that it will be expensive. On the more extreme end of the spectrum, there have been dire warnings about plunging standards of living due to skyrocketing electricity prices. The plunging cost of renewables like solar cheaper than gas has largely silenced these warnings, but a new report from the Department of Energy suggests that, even earlier, renewables were actually lowering the price of electricity in the United States.

 

Plunging prices
The report focuses on wholesale electricity prices in the US. Note that these are distinct from the prices consumers actually pay, which includes taxes, fees, payments to support the grid that delivers the electricity, and so on. It's entirely possible for wholesale electricity prices to drop even as consumers end up paying more, and market reforms determine how those changes are passed through. That said, large changes in the wholesale price should ultimately be passed on to consumers to one degree or another.

The Department of Energy analysis focuses on the decade between 2008 and 2017, and it includes an overall analysis of the US market, as well as large individual grids like PJM and ERCOT and, finally, local prices. The decade saw a couple of important trends: low natural gas prices that fostered a rapid expansion of gas-fired generators and the rapid expansion of renewable generation that occurred concurrently with a tremendous drop in price of wind and solar power.

Much of the electricity generated by renewables in this time period would be more expensive than that generated by wind and solar installed today. Not only have prices for the hardware dropped, but the hardware has improved in ways that provide higher capacity factors, meaning that they generate a greater percentage of the maximum capacity. (These changes include things like larger blades on wind turbines and tracking systems for solar panels.) At the same time, operating wind and solar is essentially free once they're installed, so they can always offer a lower price than competing fossil fuel plants.

With those caveats laid out, what does the analysis show? Almost all of the factors influencing the wholesale electricity price considered in this analysis are essentially neutral. Only three factors have pushed the prices higher: the retirement of some plants, the rising price of coal, and prices put on carbon, which only affect some of the regional grids.

In contrast, the drop in the price of natural gas has had a very large effect on the wholesale power price. Depending on the regional grid, it's driven a drop of anywhere from $7 to $53 per megawatt-hour. It's far and away the largest influence on prices over the past decade.

 

Regional variation and negative prices
But renewables have had an influence as well. That influence has ranged from roughly neutral to a cost reduction of $2.2 per MWh in California, largely driven by solar. While the impact of renewables was relatively minor, it is the second-largest influence after natural gas prices, and the data shows that wind and solar are reducing prices rather than increasing them.

The reports note that renewables are influencing wholesale prices in other ways, however. The growth of wind and solar caused the pattern of seasonal price changes to shift in areas of high wind and solar, as seen with solar reshaping prices in Northern Europe as daylight hours and wind patterns shift with the seasons. Similarly, renewables have a time-of-day effect for similar reasons, helping explain why the grid isn't 100% renewable today, which also influences the daily timing price changes, something that's not an issue with fossil fuel power.

A map showing the areas where wholesale electricity prices have gone negative, with darker colors indicating increased frequency.
Enlarge / A map showing the areas where wholesale electricity prices have gone negative, with darker colors indicating increased frequency.

US DOE
One striking feature of areas where renewable power is prevalent is that there are occasional cases in which an oversupply of renewable energy produces negative electricity prices in the wholesale market. (In the least-surprising statement in the report, it concludes that "negative prices in high-wind and high-solar regions occurred most frequently in hours with high wind and solar output.") In most areas, these negative prices are rare enough that they don't have a significant influence on the wholesale price.

That's not true everywhere, however. Areas on the Great Plains see fairly frequent negative prices, and they're growing in prevalence in areas like California, the Southwest, and the northern areas of New York and New England, while negative prices in France have been observed in similar conditions. In these areas, negative wholesale prices near solar plants have dropped the overall price by 3%. Near wind plants, that figure is 6%.

None of this is meant to indicate that there are no scenarios where expanded renewable energy could eventually cause wholesale prices to rise. At sufficient levels, the need for storage, backup plants, and grid management could potentially offset their low costs, a dynamic sometimes referred to as clean energy's dirty secret by analysts. But it's clear we have not yet reached that point. And if the prices of renewables continue to drop, then that point could potentially recede fast enough not to matter.

 

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How waves could power a clean energy future

Wave Energy Converters can deliver marine power to the grid, with DOE-backed PacWave enabling offshore testing, robust designs, and renewable electricity from oscillating waves to decarbonize coastal communities and replace diesel in remote regions.

 

Key Points

Wave energy converters are devices that transform waves' oscillatory motion into electricity for the grid or loads.

✅ DOE's PacWave enables full-scale, grid-connected offshore testing.

✅ Multiple designs convert oscillating motion into torque and power.

✅ Ideal for islands, microgrids, and replacing diesel generation.

 

Waves off the coast of the U.S. could generate 2.64 trillion kilowatt hours of electricity per year — that’s about 64% of last year’s total utility-scale electricity generation in the U.S. We won’t need that much, but one day experts do hope that wave energy will comprise about 10-20% of our electricity mix, alongside other marine energy technologies under development today.

“Wave power is really the last missing piece to help us to transition to 100% renewables, ” said Marcus Lehmann, co-founder and CEO of CalWave Power Technologies, one of a number of promising startups focused on building wave energy converters.

But while scientists have long understood the power of waves, it’s proven difficult to build machines that can harness that energy, due to the violent movement and corrosive nature of the ocean, combined with the complex motion of waves themselves, even as a recent wave and tidal market analysis highlights steady advances.

″Winds and currents, they go in one direction. It’s very easy to spin a turbine or a windmill when you’ve got linear movement. The waves really aren’t linear. They’re oscillating. And so we have to be able to turn this oscillatory energy into some sort of catchable form,” said Burke Hales, professor of cceanography at Oregon State University and chief scientist at PacWave, a Department of Energy-funded wave energy test site off the Oregon Coast. Currently under construction, PacWave is set to become the nation’s first full-scale, grid-connected test facility for these technologies, a milestone that parallels U.K. wind power lessons on scaling new industries, when it comes online in the next few years.

“PacWave really represents for us an opportunity to address one of the most critical barriers to enabling wave energy, and that’s getting devices into the open ocean,” said Jennifer Garson, Director of the Water Power Technologies Office at the U.S. Department of Energy.

At the beginning of the year, the DOE announced $25 million in funding for eight wave energy projects to test their technology at PacWave, as offshore wind forecasts underscore the growing investor interest in ocean-based energy. We spoke with a number of these companies, which all have different approaches to turning the oscillatory motion of the waves into electrical power.

Different approaches
Of the eight projects, Bay Area-based CalWave received the largest amount, $7.5 million. 

″The device we’re testing at PacWave will be a larger version of this,” said Lehmann. The x800, our megawatt-class system, produces enough power to power about 3,000 households.”

CalWave’s device operates completely below the surface of the water, and as waves rise and fall, surge forward and backward, and the water moves in a circular motion, the device moves too. Dampers inside the device slow down that motion and convert it into torque, which drives a generator to produce electricity, a principle mirrored in some wind energy kite systems as they harvest aerodynamic forces.

“And so the waves move the system up and down. And every time it moves down, we can generate power, and then the waves bring it back up. And so that oscillating motion, we can turn into electricity just like a wind turbine,” said Lehmann.

Another approach is being piloted by Seattle-based Oscilla Power, which was awarded $1.8 million from the DOE, and is getting ready to deploy its wave energy converter off the coast of Hawaii, at the U.S. Navy Wave Energy Test site.

Oscilla Power’s device is composed of two parts. One part floats on the surface and moves with the waves in all directions — up and down, side to side and rotationally. This float is connected to a large, ring-shaped structure which hangs below the surface, and is designed to stay relatively steady, much like how underwater kites leverage a stable reference to generate power. The difference in motion between the float and the ring generates force on the connecting lines, which is used to rotate a gearbox to drive a generator.

″The system that we’re deploying in Hawaii is what we call the Triton-C. This is a community-scale system,” said Balky Nair, CEO of Oscilla Power. “It’s about a third of the size of our flagship product. It’s designed to be 100 kilowatt rated, and it’s designed for islands and small communities.”

Nair is excited by wave energy’s potential to generate electricity in remote regions, which currently rely on expensive and polluting diesel imports to meet their energy needs when other renewables aren’t available, and similar tidal energy for remote communities efforts in Canada point to viable models. Before wave energy is adopted at-scale, many believe we’ll see wave energy replacing diesel generators in off-the-grid communities.

A third company, C-Power, based in Charlottesville, Virginia, was awarded more than $4 million to test its grid-scale wave energy converter at PacWave. But first, the company wants to commercialize its smaller scale system, the SeaRAY, which is designed for lower-power applications. 

″Think about sensors in the ocean, research, metocean data gathering, maybe it’s monitoring or inspection,” said C-Power CEO Reenst Lesemann on the initial applications of his device.

The SeaRAY consists of two floats and a central body, the nacelle, which contains the drivetrain. As waves pass by, the floats bob up and down, rotating about the nacelle and turning their own respective gearboxes which power the electric generators.

Eventually, C-Power plans to scale up its SeaRAY so that it’s capable of satellite communications and deep water deployments, before building a larger system, called the StingRAY, for terrestrial electricity generation.

Meanwhile, one Swedish company, Eco Wave Power, is taking another approach completely, eschewing offshore technologies in favor of simpler wave power devices that can be installed on breakwaters, piers, and jetties.

“All the expensive conversion machinery, instead of being inside the floaters like in the competing technologies, is on land just like a regular power station. So basically this enables a very low installation, operation, and maintenance cost,” explained CEO Inna Braverman.

 

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London Gateway Unveils World’s First All-Electric Berth

London Gateway All-Electric Berth enables shore power and cold ironing for container ships, cutting emissions, improving efficiency, and supporting green logistics, IMO targets, and UK net-zero goals through grid connection and port electrification.

 

Key Points

It is a shore power berth supplying electricity to ships, cutting emissions and costs while boosting port efficiency.

✅ Grid connection enables cold ironing for container ships

✅ Supports IMO decarbonization and UK net-zero goals

✅ Stabilizes energy costs versus marine fuels

 

London Gateway, one of the UK’s premier deep-water ports, has unveiled the world’s first all-electric berth, marking a significant milestone in sustainable port operations. This innovative development aims to enhance the port's capacity while reducing its environmental impact. The all-electric berth, which powers vessels using electricity, similar to emerging offshore vessel charging solutions, instead of traditional fuel sources, is expected to greatly improve operational efficiency and cut emissions from ships docking at the port.

The launch of this electric berth is part of London Gateway’s broader strategy to become a leader in green logistics, with parallels in electric truck deployments at California ports that support port decarbonization, aligning with the UK’s ambitious climate goals. By transitioning to electric power, the port reduces reliance on fossil fuels and significantly lowers carbon emissions, contributing to a cleaner environment and supporting the maritime industry’s transition towards sustainability.

The berth will provide cleaner power to container ships, enabling them to connect to the grid while docked, similar to electric ships on the B.C. coast, rather than running their engines, which traditionally contribute to pollution. This innovation supports the UK's broader push for decarbonizing its transportation and logistics sector, especially as the global shipping industry faces increasing pressure to reduce its carbon footprint.

The new infrastructure is expected to increase London Gateway’s operational capacity, allowing for a higher volume of traffic while simultaneously addressing the environmental challenges posed by growing port activities. By integrating advanced technologies like the all-electric berth, and advances such as battery-electric high-speed ferries, the port can handle more shipments without expanding its reliance on traditional fuel-based power sources. This could lead to increased cargo throughput, as shipping lines are incentivized to use a greener, more efficient port for their operations.

The project aligns with broader global trends, including electric flying ferries in Berlin, as ports and shipping companies seek to meet international standards set by the International Maritime Organization (IMO) and other regulatory bodies. The IMO has set aggressive targets for reducing greenhouse gas emissions from shipping, and the UK has pledged to be net-zero by 2050, with the shipping sector playing a crucial role in that transition.

In addition to its environmental benefits, the electric berth also helps reduce the operational costs for shipping lines, as seen with electric ferries scaling in B.C. programs across the sector. Traditional fuel costs can be volatile, whereas electric power offers a more stable and predictable expense. This cost stability could make London Gateway an even more attractive port for international shipping companies, further boosting its competitive position in the global market.

Furthermore, the project is expected to have broader economic benefits, generating jobs and fostering innovation, such as hydrogen crane projects in Vancouver, within the green technology and maritime sectors. London Gateway has already made significant strides in sustainable practices, including a focus on automated systems and energy-efficient logistics solutions. The introduction of the all-electric berth is the latest in a series of initiatives aimed at strengthening the port’s sustainability credentials.

This groundbreaking development sets a precedent for other global ports to adopt similar sustainable technologies. As more ports embrace electrification and other green solutions, the shipping industry could experience a dramatic reduction in its environmental footprint. This shift could have a cascading effect on the wider logistics and supply chain industries, leading to cleaner and more efficient global trade.

London Gateway’s all-electric berth represents a forward-thinking approach to the challenges of climate change and the need for sustainability in the maritime sector. With its ability to reduce emissions, improve port capacity, and enhance operational efficiency, this pioneering project is poised to reshape the future of global shipping. As more ports around the world follow suit, the potential for widespread environmental impact in the shipping industry is significant, providing hope for a greener future in international trade.

 

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Senate Committee Advised by WIRES Counsel That Electric Transmission Still Faces Barriers to Development

U.S. Transmission Grid Modernization underscores FERC policy certainty, high-voltage infrastructure upgrades, renewables integration, electrification, and grid resilience to cut congestion and enable distributed energy resources, safeguarding against extreme weather, cyber threats, and market volatility.

 

Key Points

A plan to expand, upgrade, and secure high-voltage networks for renewables integration, electrification, reliability.

✅ Replace aging lines to cut congestion and customer costs

✅ Integrate renewables and distributed energy resources at scale

✅ Enhance resilience to weather, cyber, and physical threats

 

Today, in a high-visibility hearing on U.S. energy delivery infrastructure before the United States Senate Committee on Energy and Natural Resources, WIRES Executive Director and Former FERC Chairman Jim Hoecker addressed the challenges and opportunities that confront the modern high-voltage grid as the industry strives to upgrade and expand it to meet the demands of consumers and the economy.

In prepared testimony and responses to Senators' questions, Hoecker urged the Committee to support industry efforts to expand and upgrade the transmission network and to help regulators, especially the Federal Energy Regulatory Commission (FERC action on aggregated DERs), promote certainty and predictability in energy policy and regulation. 

 

His testimony stressed these points:

Significant transmission investment is needed now to replace aging infrastructure like the aging grid risks to clean energy, reduce congestion costs, and deliver widespread benefits to customers.

Increasingly, the role of the transmission grid is to integrate new distributed resources and renewable energy into the electric system and make them available to the market.

The changing electric generation mix, including needed nuclear innovation, and the coming electrification of transportation, heating, and other segments of the American economy in the next quarter century will depend on a strong and adaptable electric system. A robust transmission grid will be the linchpin that will enable us to meet those demands.

"Transmission is the common element that will support all future electricity needs and provide a hedge against uncertainties and potential costly outcomes. The time is now to be proactive in encouraging additional investments in our nation's most crucial infrastructure: the electric transmission system," Hoecker said. 

Hoecker's testimony also emphasized that transmission investment will contribute to the overall resilience of the electric system by bringing multiple resources and technologies to bear on threats to the power system, including extreme weather and proposals like a wildfire-resilient grid bill, cyber or physical attacks, or other events. Visit WIRES website for recently filed comments on the subject (supported by a Brattle Group study). 

"Transmission gives us the optionality to adapt to whatever the future holds, and a modern and resilient transmission system, informed by Texas reliability improvements, will be the most valuable energy asset we have," says Nina Plaushin, president of WIRES and vice president of federal affairs, regulatory and communications for ITC Holdings Corp. 

Hoecker closed his testimony by emphasizing that the "electrification" scenario that is being discussed across multiple industries demands action now in order to ensure policy and regulatory certainty that will support needed transmission investment. More studies need to be conducted to better understand and define how this delivery network must be configured and planned in anticipation of this potential transformation in how we use electrical energy. A full copy of the WIRES testimony can be found here.

 

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First Reactor Installed at the UK’s Latest Nuclear Power Station

Hinkley Point C Reactor Installation signals UK energy security, nuclear power expansion, and low-carbon baseload, featuring EPR technology in Somerset to cut emissions, support net-zero goals, and deliver reliable electricity for homes and businesses.

 

Key Points

First EPR unit fitted at Hinkley Point C, boosting low-carbon baseload, grid reliability, and UK energy security.

✅ Generates 3.2 GW across two EPRs for 7% of UK electricity.

✅ Provides low-carbon baseload to complement wind and solar.

✅ Creates jobs and strengthens supply chains during construction.

 

The United Kingdom has made a significant stride toward securing its energy future with the installation of the first reactor at its newest nuclear power station. This development marks an important milestone in the nation’s efforts to combat climate change, reduce carbon emissions, and ensure a stable and sustainable energy supply. As the world moves towards greener alternatives to fossil fuels, nuclear power remains a key part of the UK's green industrial revolution and low-carbon energy strategy.

The new power station, located at Hinkley Point C in Somerset, is set to be one of the most advanced nuclear facilities in the country. The installation of its reactor represents a crucial step in the construction of the plant, with earlier milestones like the reactor roof lifted into place underscoring steady progress, which is expected to provide reliable, low-carbon electricity for millions of homes and businesses across the UK. The completion of the first reactor is seen as a pivotal moment in the journey to bring the station online, with the second reactor expected to follow shortly after.

A Historic Milestone

Hinkley Point C will be the UK’s first nuclear power station built in over two decades. The plant, once fully operational, will play a key role in the country's energy transition. The reactors at Hinkley Point C are designed to be state-of-the-art, using advanced technology that is both safer and more efficient than older nuclear reactors. Each of the two reactors will have the capacity to generate 1.6 gigawatts of electricity, enough to power approximately six million homes. Together, they will contribute about 7% of the UK’s electricity needs, providing a steady, reliable source of energy even during periods of high demand.

The installation of the first reactor at Hinkley Point C is not just a technical achievement; it is also symbolic of the UK’s commitment to energy security and its goal to achieve net-zero carbon emissions by 2050, a target that industry leaders say multiple new stations will be needed to meet effectively. Nuclear power is a crucial part of this equation, as it provides a stable, baseload source of energy that does not rely on weather conditions, unlike wind or solar power.

Boosting the UK’s Energy Capacity

The addition of Hinkley Point C to the UK’s energy infrastructure is expected to significantly boost the country’s energy capacity and reduce its reliance on fossil fuels. The UK government has been focused on increasing the share of renewable energy in its mix, and nuclear power is seen as an essential complement to intermittent renewable sources, especially as wind and solar have surpassed nuclear in generation at times. Nuclear energy is considered a low-carbon, reliable energy source that can fill the gaps when renewable generation is insufficient, such as on cloudy or calm days when solar and wind energy output may be low.

With the aging of the UK’s existing nuclear fleet and the gradual phase-out of coal-fired power plants, Hinkley Point C will help ensure that the country does not face an energy shortage as it transitions to cleaner energy sources. The plant will help to bridge the gap between the current energy infrastructure and the future, enabling the UK to phase out coal while maintaining a steady, low-carbon energy supply.

Safety and Technological Innovation

The reactors at Hinkley Point C are being constructed using the latest in nuclear technology. They are based on the European Pressurized Reactor (EPR) design, which is known for its enhanced safety features and efficiency, and has been deployed in projects within China's nuclear program as well, making it a proven platform. These reactors are designed to withstand extreme conditions, including earthquakes and flooding, making them highly resilient. Additionally, the EPR technology ensures that the reactors have a low environmental impact, producing minimal waste and offering the potential for increased sustainability compared to older reactor designs.

One of the key innovations in the Hinkley Point C reactors is their advanced cooling system, which is designed to be more efficient and environmentally friendly than previous generations. This system ensures that the reactors operate at optimal temperatures while minimizing the environmental footprint of the plant.

Economic and Job Creation Benefits

The construction of Hinkley Point C has already provided a significant boost to the local economy. Thousands of jobs have been created, not only in the construction phase but also in the ongoing operation and maintenance of the facility. The plant is expected to create more than 25,000 jobs during its construction and around 900 permanent jobs once it is operational.

The project is also expected to have a positive impact on the wider UK economy. As a major infrastructure project, Hinkley Point C will provide long-term economic benefits, including boosting supply chains and providing opportunities for local businesses.

Challenges and the Road Ahead

Despite the progress, the construction of Hinkley Point C has not been without its challenges. The project has faced delays and cost overruns, with setbacks at Hinkley Point C documented by industry observers, and the total estimated cost now standing at around £22 billion. However, the successful installation of the first reactor is a step toward overcoming these hurdles and completing the project on schedule.

Looking ahead, Hinkley Point C’s successful operation could pave the way for future nuclear developments in the UK, including next-gen nuclear designs that aim to be smaller, cheaper, and safer. As the world grapples with the pressing need to reduce greenhouse gas emissions, nuclear energy may play an even more critical role in ensuring a clean, reliable energy future.

The installation of the first reactor at Hinkley Point C marks a crucial moment in the UK’s energy journey. As the country seeks to meet its carbon reduction targets and bolster its energy security, the new nuclear power station will be a cornerstone of its efforts. With its advanced technology, safety features, and potential to provide low-carbon energy for decades to come, Hinkley Point C offers a glimpse into the future of energy production in the UK and beyond.

 

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NDP takes aim at approval of SaskPower 8 per cent rate hike

SaskPower Rate Hike 2022-2023 signals higher electricity rates in Saskatchewan as natural gas costs surge; the Rate Review Panel approved increases, affecting residential utility bills amid affordability concerns and government energy policy shifts.

 

Key Points

An 8% SaskPower electricity rate increase split 4% in Sept 2022 and 4% in Apr 2023, driven by natural gas costs.

✅ 4% increase Sept 1, 2022; +4% on Apr 1, 2023

✅ Panel-approved amid natural gas price surge and higher fuel costs

✅ Avg residential bill up about $5 per step; affordability concerns

 

The NDP Opposition is condemning the provincial government’s decision to approve the Saskatchewan Rate Review Panel’s recommendation to increase SaskPower’s rates for the first time since 2018, despite a recent 10% rebate pledge by the Sask. Party.

The Crown electrical utility’s rates will increase four per cent this fall, and another four per cent in 2023, a trajectory comparable to BC Hydro increases over two years. According to a government news release issued Thursday, the new rates will result in an average increase of approximately $5 on residential customers’ bills starting on Sept. 1, 2022, and an additional $5 on April 1, 2023.

“The decision to increase rates is not taken lightly and came after a thorough review by the independent Saskatchewan Rate Review Panel,” Minister Responsible for SaskPower Don Morgan said in a news release, amid Nova Scotia’s 14% hike this year. “World events have caused a significant rise in the price of natural gas, and with 42 per cent of Saskatchewan’s electricity coming from natural gas-fueled facilities, SaskPower requires additional revenue to maintain reliable operations.”

But NDP SaskPower critic Aleana Young says the rate hike is coming just as businesses and industries are struggling in an “affordability crisis,” even as Manitoba Hydro scales back a planned increase next year.

She called the announcement of an eight per cent increase in power bills on a summer day before the long weekend “a cowardly move” by the premier and his cabinet, amid comparable changes such as Manitoba’s 2.5% annual hikes now proposed.

“Not to mention the Sask. Party plans to hike natural gas rates by 17% just days from now,” said Young in a news release issued Friday, as Manitoba rate hearings get underway nearby. “If Scott Moe thinks his choices — to not provide Saskatchewan families any affordability relief, to hike taxes and fees, then compound those costs with utility rate hikes — are defensible, he should have the courage to get out of his closed-door meetings and explain himself to the people of this province.”

The province noted natural gas is the largest generation source in SaskPower’s fleet. As federal regulations require the elimination of conventional coal generation in Canada by 2030, SaskPower’s reliance on natural gas generation is expected to grow, with experts in Alberta warning of soaring gas and power prices in the region. Fuel and Purchased Power expense increases are largely driven by increased natural gas prices, and SaskPower’s fuel and purchased power expense is expected to increase from $715 million in 2020-21 to $1.069 billion in 2023-24. This represents a 50 per cent increase in fuel and purchased power expense over three years.

“In the four years since our last increase SaskPower has worked to find internal efficiencies, but at this time we require additional funding to continue to provide reliable and sustainable power,” SaskPower president & CEO Rupen Pandya said in the release “We will continue to be transparent about our rate strategy and the need for regular, moderate increases.”

 

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