Ontario to raise power rates by $2 monthly

By Toronto Star


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The Ontario Energy Board is raising basic electricity prices by more than 10 per cent – to 5.6 cents per kilowatt-hour for use of up to 1,000 kWh a month and 6.5 cents per kWh above that.

The board says the impact will be $2.40 per month on a residence consuming 1,000 kWh monthly, compared with the summer price.

However, compared with last winter's rate, the increase would be $6 a month or 12 per cent. For power use above the 1,000-kilowatt per hour level, the increase is 10.2 per cent.

The rate, reset at the start of each May and November, was previously five cents per kilowatt-hour up to the lower summer threshold of 600 kWh, and 5.9 cents per kWh for consumption above that level. Those basic prices had been unchanged since last November, when they were trimmed slightly.

The board said today that the price increase – shown on the "electricity" line of consumers' utility bills – is caused by several factors, including new higher-cost renewable and natural gas generation projects coming into service, and an expected rise in the cost of electricity from nuclear and large hydro plants.

The provincial regulator also cites the expense of conservation initiatives, and the impact of the provincial government's directive to cut carbon dioxide emissions from coal-fired generation by a further one-third by 2011.

"These upward price pressures are partially offset by a forecast of lower electricity market prices primarily due to a decline in expected natural gas prices," the board said.

Natural gas generates about 10 per cent of Ontario's electricity. The rest comes from Canada's extensive network of nuclear plants, which produce more than half the province's electricity needs, as well as coal, hydroelectric, wind and alternative energy sources.

Ontario has three currently operating nuclear plants – Pickering and Darlington east of Toronto and Bruce on the shores of Lake Erie – and plans a major expansion of the system over the next two decades.

The provincial regulated price plan for electricity is designed to have consumers pay the costs of supplying electricity while smoothing out price variations. It does not apply to consumers buying their power under contracts with third-party retailers.

And for the small number of Ontario households connected through smart meters and paying time-of-use rates, the peak price per kilowatt-hour declines to 8.8 cents from 9.3 cents and the mid-peak price is trimmed to 7.2 cents from 7.3 cents, but the off-peak price rises to 4.0 cents from 2.7 cents.

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Energy storage poised to tackle grid challenges from rising EVs as mobile chargers bring new flexibility

EV Charging Grid Readiness addresses how rising EV adoption, larger batteries, and fast charging affect electric utilities, using vehicle-to-grid, energy storage, mobile and temporary chargers, and smart charging to mitigate distribution stress.

 

Key Points

Planning and tech to manage EV load growth with V2G, storage and smart charging to avoid overloads on distribution grids.

✅ Lithium-ion costs may drop 60%, enabling new charger models

✅ Mobile and temporary chargers buffer local distribution peaks

✅ Smart charging and V2G defer transformer and feeder upgrades

 

The impacts of COVID-19 likely mean flat electric vehicle (EV) sales this year, but a trio of new reports say the long-term outlook is for strong growth — which means the electric grid and especially state power grids will need to respond.

As EV adoption grows, newer vehicles will put greater stress on the electric grid due to their larger batteries and capacity for faster charging, according to Rhombus Energy Solutions, while a DOE lab finds US electricity demand could rise 38% as EV adoption scales. A new white paper from the company predicts the cost of lithium-ion batteries will drop by 60% over the next decade, helping enable a new set of charging solutions.

Meanwhile, mobile and temporary EV charging will grow from 0.5% to 2% of the charging market by 2030, according to new Guidehouse research. The overall charging market is expected to reach reach almost $16 billion in revenues in 2020 and more than $60 billion by 2030. ​A third report finds long-range EVs are growing their share of the market as well, and charging them could cause stress to electric distribution systems. 

"One can expect that the number of EVs in fleets will grow very rapidly over the next ten years," according to Rhombus' report. But that means many fleet staging areas will have trouble securing sufficient charging capacity as electric truck fleets scale up.

"Given the amount of time it takes to add new megawatt-level power feeds in most cities (think years), fleet EVs will run into a significant 'power crisis' by 2030," according to Rhombus.

"Grid power availability will become a significant problem for fleets as they increase the number of electric vehicles they operate," Rhombus CEO Rick Sander said in a statement. "Integrating energy storage with vehicle-to-grid capable chargers and smart [energy management system] solutions as seen in California grid stability efforts is a quick and effective mitigation strategy for this issue."

Along with energy storage, Guidehouse says a new, more flexible approach to charger deployment enabled by grid coordination strategies will help meet demand. That means chargers deployed by a van or other mobile stations, and "temporary" chargers that can help fleets expand capacity. 

According to Guidehouse, the temporary units "are well positioned to de-risk large investments in stationary charging infrastructure" while also providing charge point networks and service providers "with new capabilities to flexibly supply predictable changes in EV transportation behaviors and demand surges."

"Mobile charging is a bit of a new area in the EV charging scene. It primarily leverages batteries to make chargers mobile, but it doesn't necessarily have to," Guidehouse Senior Research Analyst Scott Shepard told Utility Dive. 

"The biggest opportunity is with the temporary charging format," said Shepard. "The bigger units are meant to be located at a certain site for a period of time. Those units are interesting because they create a little more scale-ability for sites and a little risk mitigation when it comes to investing in a site."

"Utilities could use temporary chargers as a way to provide more resilient service, using these chargers in line with on-site generation," Shepard said.

Increasing rates of EV adoption, combined with advances in battery size and charging rates, "will impact electric utility distribution infrastructure at a higher rate than previously projected," according to new analysis from FleetCarma.

The charging company conducted a study of over 3,900 EVs, illustrating the rapid change in vehicle capabilities in just the last five years. According to FleetCarma, today's EVs use twice as much energy and draw it at twice the power level. The long-range EV has increased as a proportion of new electric vehicle sales from 14% in 2014 to 66% in 2019 in the United States, it found.

Long-range EVs "are very different from older electric vehicles: they are driven more, they consume more energy, they draw power at a higher level and they are less predictable," according to FleetCarma.

Guidehouse analysts say grid modernization efforts and energy storage can help smooth the impacts of charging larger vehicles. 

Mobile and temporary charging solutions can act as a "buffer" to the distribution grid, according to Guidehouse's report, allowing utilities to avoid or defer some transmission and distribution upgrade costs that could be required due to stress on the grid from newer vehicles.

"At a high level, there's enough power and energy to supply EVs with proper management in place," said Shepard. "And in a lot of different locations, those charging deployments will be built in a way that protects the grid. Public fast charging, large commercial sites, they're going to have the right infrastructure embedded."

"But for certain areas of the grid where there is low visibility, there is the potential for grid disruption and questions about whether the UK grid can cope with EV demand," said Shepard. "This has been on the mind of utilities but never realized: overwhelming residential transformers."

As EVs with higher charging and energy capacities are connected to the grid, Shepard said, "you are going to start to see some of those residential systems come under pressure, and probably see increased incidences of having to upgrade transformers." Some residential upgrades can be deferred through smarter charging programs, he added.

 

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UK EV Drivers Demand Fairer Vehicle Taxes

UK EV Per-Mile Taxes are reshaping road pricing and vehicle taxation for electric cars, raising fairness concerns, climate policy questions, and funding needs for infrastructure and charging networks across the country.

 

Key Points

They are per-mile road charges on EVs to fund infrastructure, raising fairness, emissions, and vehicle taxation concerns.

✅ Propose tax relief or credits for EV owners

✅ Consider emission-based road user charging

✅ Invest in charging networks and road infrastructure

 

As the UK continues its push towards a greener future with increased adoption of electric vehicles (EVs) and surging EV interest during supply disruptions, a growing number of electric car drivers are voicing their frustration over the current tax system. The debate centers around the per-mile vehicle taxes that are being proposed and implemented, which many argue are unfairly burdensome on EV owners. This issue has sparked a broader campaign advocating for a more equitable approach to vehicle taxation, one that reflects the evolving landscape of transportation and environmental policy.

Rising Costs for Electric Car Owners

Electric vehicles have been hailed as a crucial component in the UK’s strategy to reduce carbon emissions and combat climate change. Government incentives, such as grants for EV purchases and tax breaks, have been instrumental in encouraging the shift from petrol and diesel cars to cleaner alternatives, even as affordability concerns persist among many UK consumers. However, as the number of electric vehicles on the road grows, the financial dynamics of vehicle taxation are coming under scrutiny.

One of the key issues is the introduction and increase of per-mile vehicle taxes. While these taxes are designed to account for road usage and infrastructure costs, they have been met with resistance from EV drivers who argue that they are being disproportionately affected. Unlike traditional combustion engine vehicles, electric cars typically have lower running costs compared to petrol or diesel models and, in many cases, benefit from lower or zero emissions. Yet, the current tax system does not always reflect these advantages.

The Taxation Debate

The crux of the debate lies in how vehicle taxes are structured and implemented. Per-mile taxes are intended to ensure that all road users contribute fairly to the maintenance of transport infrastructure. However, the implementation of such taxes has raised concerns about fairness and affordability, particularly for those who have invested heavily in electric vehicles.

Critics argue that per-mile taxes do not adequately take into account the environmental benefits of driving an electric car, noting that the net impact depends on the electricity generation mix in each market. While EV owners are contributing to a cleaner environment by reducing emissions, they are also facing higher taxes that could undermine the financial benefits of their greener choice. This has led to calls for a reassessment of the tax system to ensure that it aligns with the UK’s climate goals and provides a fair deal for electric vehicle drivers.

Campaigns for Fairer Taxation

In response to these concerns, several advocacy groups and individual EV owners have launched campaigns calling for a more balanced approach to vehicle taxation. These campaigns emphasize the need for a system that supports the transition to electric vehicles and recognizes their role in reducing environmental impact, drawing on ambitious EV targets abroad as useful benchmarks.

Key proposals from these campaigns include:

  1. Tax Relief for EV Owners: Advocates suggest providing targeted tax relief for electric vehicle owners to offset the costs of per-mile taxes. This could include subsidies or tax credits that acknowledge the environmental benefits of EVs and help to make up for higher road usage fees.

  2. Emission-Based Taxation: An alternative approach is to design vehicle taxes based on emissions rather than mileage. This system would ensure that those driving high-emission vehicles contribute more to road maintenance, while EV owners, who are already reducing emissions, are not penalized.

  3. Infrastructure Investments: Campaigners also call for increased investments in infrastructure that supports electric vehicles, such as charging networks and proper grid management practices that balance load. This would help to address concerns about the adequacy of current road maintenance and support the growing number of EVs on the road.

Government Response and Future Directions

The UK government faces the challenge of balancing revenue needs with environmental goals. While there is recognition of the need to update the tax system in light of increasing EV adoption, there is also a focus on ensuring that any changes are equitable and do not disincentivize the shift towards cleaner vehicles, while considering whether the UK grid can handle additional EV demand reliably.

Discussions are ongoing about how to best implement changes that address the concerns of electric vehicle owners while ensuring that the transportation infrastructure remains adequately funded. The outcome of these discussions will be critical in shaping the future of vehicle taxation in the UK and supporting the country’s broader environmental objectives.

Conclusion

As electric vehicle adoption continues to rise in the UK, the debate over vehicle taxation becomes increasingly important. The campaign for fairer per-mile taxes highlights the need for a tax system that supports the transition to cleaner transportation while also being fair to those who have made environmentally conscious choices. Balancing these factors will be key to achieving the UK’s climate goals and ensuring that all road users contribute equitably to the maintenance of transport infrastructure. The ongoing dialogue and policy adjustments will play a crucial role in shaping a sustainable and just future for transportation in the UK.

 

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Summerland solar power project will provide electricity

Summerland Solar+Storage Project brings renewable energy to a municipal utility with photovoltaic panels and battery storage, generating 1,200 megawatts from 3,200 panels on Cartwright Mountain to boost grid resilience and local clean power.

 

Key Points

A municipal solar PV and battery system enabling Summerland Power to self-generate electricity on Cartwright Mountain.

✅ 3,200 panels, 20-year batteries, 35-year panel lifespan

✅ Estimated $7M cost, $6M in grants, utility reserve funding

✅ Site near grid lines; 2-year timeline with 18-month lead

 

A proposed solar energy project, to be constructed on municipally-owned property on Cartwright Mountain, will allow Summerland Power to produce some of its own electricity, similar to how Summerside's wind power supplies a large share locally.

On Monday evening, municipal staff described the Solar+Storage project, aligning with insights from renewable power developers that combining resources yields better projects.

The project will include around 3,200 solar panels and storage batteries, giving Summerland Power the ability to generate 1,200 megawatts of electrical power.

This is the amount of energy used by 100 homes over the course of a year.

The solar panels have an estimated life expectancy of 35 years, while the batteries have a life expectancy of 20 years.

“It’s a really big step for a small utility like ours,” said Tami Rothery, sustainability/alternative energy coordinator for Summerland. “We’re looking forward to moving towards a bright, sunny energy future.”

She said the price of solar panels has been dropping, with lower-cost solar contracts reported in Alberta, and the quality and efficiency of the panels has increased in recent years.

The total cost of the project is around $7 million, with $6 million to come from grant funding and the remainder to come from the municipality’s electrical utility reserve fund, while policy changes such as Nova Scotia's solar charge delay illustrate evolving market conditions.

The site, a former public works yard and storage area, was selected from 108 parcels of land considered by the municipality.

She said the site, vacant since the 1970s, is close to main electrical lines and will not be highly visible once the panels are in place, much like unobtrusive rooftop solar arrays in urban settings.

Access to the site is restricted, resulting in natural security to the solar installation.

Jeremy Storvold, general manager of Summerland’s electrical utility, said the site is 2.5 kilometres from the Prairie Valley electrical substation and close to the existing public works yard.

However, some in the audience on Monday questioned the location of the proposed solar installation, suggesting the site would be better suited for affordable housing in the community.

The timeline for the project calls for roughly two years before the work will be completed, since there is an 18-month lead time in order to receive good quality solar panels, reflecting the surge in Alberta's solar growth that is straining supply chains.

 

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Electrifying: New cement makes concrete generate electricity

Cement-Based Conductive Composite transforms concrete into power by energy harvesting via triboelectric nanogenerator action, carbon fibers, and built-in capacitors, enabling net-zero buildings and self-sensing structural health monitoring from footsteps, wind, rain, and waves.

 

Key Points

A carbon fiber cement that harvests and stores energy as electricity, enabling net-zero, self-sensing concrete.

✅ Uses carbon fibers to create a conductive concrete matrix

✅ Acts as a triboelectric nanogenerator and capacitor

✅ Enables net-zero, self-sensing structural health monitoring

 

Engineers from South Korea have invented a cement-based composite that can be used in concrete to make structures that generate and store electricity through exposure to external mechanical energy sources like footsteps, wind, rain and waves, and even self-powering roads concepts.

By turning structures into power sources, the cement will crack the problem of the built environment consuming 40% of the world’s energy, complementing vehicle-to-building energy strategies across the sector, they believe.

Building users need not worry about getting electrocuted. Tests showed that a 1% volume of conductive carbon fibres in a cement mixture was enough to give the cement the desired electrical properties without compromising structural performance, complementing grid-scale vanadium flow batteries in the broader storage landscape, and the current generated was far lower than the maximum allowable level for the human body.

Researchers in mechanical and civil engineering from from Incheon National University, Kyung Hee University and Korea University developed a cement-based conductive composite (CBC) with carbon fibres that can also act as a triboelectric nanogenerator (TENG), a type of mechanical energy harvester.

They designed a lab-scale structure and a CBC-based capacitor using the developed material to test its energy harvesting and storage capabilities, similar in ambition to gravity storage approaches being scaled.

“We wanted to develop a structural energy material that could be used to build net-zero energy structures that use and produce their own electricity,” said Seung-Jung Lee, a professor in Incheon National University’s Department of Civil and Environmental Engineering, noting parallels with low-income housing microgrids in urban settings.

“Since cement is an indispensable construction material, we decided to use it with conductive fillers as the core conductive element for our CBC-TENG system,” he added.

The results of their research were published this month in the journal Nano Energy.

Apart from energy storage and harvesting, the material could also be used to design self-sensing systems that monitor the structural health and predict the remaining service life of concrete structures without any external power, which is valuable in industrial settings where hydrogen-powered port equipment is being deployed.

“Our ultimate goal was to develop materials that made the lives of people better and did not need any extra energy to save the planet. And we expect that the findings from this study can be used to expand the applicability of CBC as an all-in-one energy material for net-zero energy structures,” said Prof. Lee, pointing to emerging circular battery recycling pathways for net-zero supply chains.

Publicising the research, Incheon National University quipped: “Seems like a jolting start to a brighter and greener tomorrow!”

 

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As California enters a brave new energy world, can it keep the lights on?

California Grid Transition drives decarbonization with renewable energy, EV charging, microgrids, and energy storage, while tackling wildfire risk, aging infrastructure, and cybersecurity threats to build grid resilience and reliability across a rapidly electrifying economy.

 

Key Points

California Grid Transition is the statewide shift to renewables, storage, EVs, and resilient, secure infrastructure.

✅ Integrates solar, wind, storage, and demand response at scale

✅ Expands microgrids and DERs to enhance reliability and resilience

✅ Addresses wildfire, aging assets, and cybersecurity risks

 

Gretchen Bakke thinks a lot about power—the kind that sizzles through a complex grid of electrical stations, poles, lines and transformers, keeping the lights on for tens of millions of Californians who mostly take it for granted.

They shouldn’t, says Bakke, who grew up in a rural California town regularly darkened by outages. A cultural anthropologist who studies the consequences of institutional failures, she says it’s unclear whether the state’s aging electricity network and its managers can handle what’s about to hit it, as U.S. blackout risks continue to mount.

California is casting off fossil fuels to become something that doesn’t yet exist: a fully electrified state of 40 million people. Policies are in place requiring a rush of energy from renewable sources such as the sun and wind and calling for millions of electric cars that will need charging—changes that will tax a system already fragile, unstable and increasingly vulnerable to outside forces.

“There is so much happening, so fast—the grid and nearly everything about energy is in real transition, and there’s so much at stake,” said Bakke, who explores these issues in a book titled simply, “The Grid.”

The state’s task grew more complicated with this week’s announcement that Pacific Gas and Electric, which provides electricity for more than 5 million customer accounts, intends to file for bankruptcy in the face of potentially crippling liabilities from wildfires. But the reshaping of California’s energy future goes far beyond the woes of a single company.

The 19th-century model of one-way power delivery from utility companies to customers is being reimagined. Major utilities—and the grid itself—are being disrupted by rooftops paved with solar panels and the rise of self-sufficient neighborhood mini-grids. Whole cities and counties are abandoning big utilities and buying power from wholesalers and others of their choosing.

With California at the forefront of a new energy landscape, officials are racing to design a future that will not just reshape power production and delivery but also dictate how we get around and how our goods are made. They’re debating how to manage grid defectors, weighing the feasibility of an energy network that would expand to connect and serve much of the West and pondering how to appropriately regulate small power producers.

“We are in the depths of the conversation,” said Michael Picker, president of the state Public Utilities Commission, who cautions that even as the system is being rebooted, like repairing a car while driving in practice, there’s no real plan for making it all work.

Such transformation is exceedingly risky and potentially costly. California still bears the scars of having dropped its regulatory reins some 20 years ago, leaving power companies to bilk the state of billions of dollars it has yet to completely recover. And utility companies will undoubtedly pass on to their customers the costs of grid upgrades to defend against natural and man-made threats.

Some weaknesses are well known—rodents and tree limbs, for example, are common culprits in power outages, even as longer, more frequent outages afflict other parts of the U.S. A gnawing squirrel squeezed into a transformer on Thanksgiving Day three years ago, shutting off power to parts of Los Angeles International Airport. The airport plans to spend $120 million to upgrade its power plant.

But the harsh effects of climate change expose new vulnerabilities. Rising seas imperil coastal power plants. Electricity infrastructure is both threatened by and implicated in wildfires. Picker estimates that utility operations are related to one in 10 wildland fires in California, which can be sparked by aging equipment and winds that send tree branches crashing into power lines, showering flammable landscapes with sparks.

California utilities have been ordered to make their lines and equipment more fire-resistant as they’re increasingly held accountable for blazes they cause. Pacific Gas and Electric reported problems with some of its equipment at a starting point of California’s deadliest wildfire, which killed at least 86 people in November in the town of Paradise. The cause of the fire is under investigation.

New and complex cyber threats are more difficult to anticipate and even more dangerous. Computer hackers, operating a world away, can—and have—shut down electricity systems, toggling power on and off at will, and even hijacked the computers of special teams dispatched to restore control.

Thomas Fanning, CEO of Southern Co., one of the country’s largest utilities, recently disclosed that his teams have fended off multiple attempts to hack a nuclear power plant the firm operates. He called grid hacking “the most important under-reported war in American history.”

However, if you’ve got what seems like an insoluble problem requiring a to-the-studs teardown and innovative rebuild, California is a good place to start. After all, the first electricity grid was built in San Francisco in 1879, three years before Thomas Edison’s power station in New York City. (Edison’s plant burned to the ground a decade later.)

California’s energy-efficiency regulations have helped reduce statewide energy use, which peaked a decade ago and is on the decline, somewhat easing pressure on the grid. The major utilities are ahead of schedule in meeting their obligation to obtain power from renewable sources.

California’s universities are teaming with national research labs to develop cutting-edge solutions for storing energy produced by clean sources. California is fortunate in the diversity of its energy choices: hydroelectric dams in the north, large-scale solar operations in the Mojave Desert to the east, sprawling windmill farms in mountain passes and heat bubbling in the Geysers, the world’s largest geothermal field north of San Francisco. A single nuclear-power plant clings to the coast near San Luis Obispo, but it will be shuttered in 2025.

But more renewable energy, accessible at the whims of weather, can throw the grid off balance. Renewables lack the characteristic that power planners most prize: dispatchability, ready when called on and turned off when not immediately needed. Wind and sun don’t behave that way; their power is often available in great hunks—or not at all, as when clouds cover solar panels or winds drop.

In the case of solar power, it is plentiful in the middle of the day, at a time of low demand. There’s so much in California that most days the state pays its neighbors to siphon some off,  lest the excess impede the grid’s constant need for balance—for a supply that consistently equals demand.

So getting to California’s new goals of operating on 100 percent clean energy by 2045 and having 5 million electric vehicles within 12 years will require a shift in how power is acquired and managed. Consumers will rely more heavily on battery storage, whose efficiency must improve to meet that demand.

 

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What Will Drive Utility Revenue When Electricity Is Free?

AI-Powered Utility Customer Experience enables transparency, real-time pricing, smart thermostats, demand response, and billing optimization, helping utilities integrate distributed energy resources, battery storage, and microgrids while boosting customer satisfaction and reducing costs.

 

Key Points

An approach where utilities use AI and real-time data to personalize service, optimize billing, and cut energy costs.

✅ Real-time pricing aligns retail and wholesale market signals

✅ Device control via smart thermostats and home energy management

✅ Analytics reveal appliance-level usage and personalized savings

 

The latest electric utility customer satisfaction survey results from the American Customer Satisfaction Index (ACSI) Energy Utilities report reveal that nearly every investor-owned utility saw customer satisfaction go down from 2018 to 2019. Residential customers are sending a clear message in the report: They want more transparency and control over energy usage, billing and ways to reduce costs.

With both customer satisfaction and utility revenues on the decline, utilities are facing daunting challenges to their traditional business models amid flat electricity demand across many markets today. That said, it is the utilities that see these changing times as an opportunity to evolve that will become the energy leaders of tomorrow, where the customer relationship is no longer defined by sales volume but instead by a utility company's ability to optimize service and deliver meaningful customer solutions.

We have seen how the proliferation of centralized and distributed renewables on the grid has already dramatically changed the cost profile of traditional generation and variability of wholesale energy prices. This signals the real cost drivers in the future will come from optimizing energy service with things like batteries, microgrids and peer-to-peer trading networks. In the foreseeable future, flat electricity rates may be the norm, or electricity might even become entirely free as services become the primary source of utility revenue.

The key to this future is technological innovation that allows utilities to better understand a customer’s unique needs and priorities and then deliver personalized, well-timed solutions that make customers feel valued and appreciated as their utility helps them save and alleviates their greatest pain points.

I predict utilities that adopt new technologies focused on customer experience, aligned with key utility trends shaping the sector, and deliver continual service improvements and optimization will earn the most satisfied, most loyal customers.

To illustrate this, look at how fixed pricing today is applied for most residential customers. Unless you live in one of the states with deregulated utilities where most customers are free to choose a service provider in a competitive marketplace, as consumers in power markets increasingly reshape offerings, fixed-rate tariffs or time-of-use tariffs might be the only rate structures you have ever known, though new utility rate designs are being tested nationwide today. These tariffs are often market distortions, bearing little relation to the real-time price that the utility pays on the wholesale market.

It can be easy enough to compare the rate you pay as a consumer and the market rate that utilities pay. The California ISO has a public dashboard -- as do other grid operators -- that shows the real-time marginal cost of energy. On a recent Friday, for example, a buyer in San Francisco could go to the real-time market and procure electricity at a rate of around 9.5 cents per kilowatt-hour (kWh), yet a residential customer can pay the utility PG&E between 22 cents and 49 cents per kWh amid major changes to electric bills being debated, depending on usage.

The problem is that utility customers do not usually see this data or know how to interpret it in a way that helps add value to their service or drive down the cost.

This is a scenario ripe for innovation. Artificial intelligence (AI) technologies are beginning to be applied to give customers the transparency and control over the energy they desire, and a new type of utility is emerging using real-time pricing signals from wholesale markets to give households hassle-free energy savings. Evolve Energy in Texas is developing a utility service model, even as Texas utilities revisit smart home network strategies, that delivers electricity to consumers at real-time market prices and connects to smart thermostats and other connected devices in the home for simple monitoring and control -- all managed via an intuitive consumer app.

My company, Bidgely, partners with utilities and energy retailers all over the world to apply artificial intelligence and machine learning algorithms to customer data in order to bring transparency to their electricity bills, showing exactly where the customers’ money is going down to the appliance and offering personalized, actionable advice on how to save.

Another example is from energy management company Keewi. Its wireless outlet adaptors are revealing real-time energy usage information to Texas A&M dorm residents as well as providing students the ability to conserve energy through controlling items in their rooms from their smartphones.

These are but a few examples of innovations among many in play that answer the consumer demand for increased transparency and control over energy usage.

Electric service providers will be closely watching how consumers respond to AI-driven innovation, including providers in traditionally regulated markets that are exploring equitable regulation approaches now, to stay aligned with policy and customer expectations. While regulated utilities have no reason to fear that their customers might sign up with a competitor, they understand that the revenues from electricity sales are going down and the deployment of distributed energy resources is going up. Both trends were reflected in a March report from Bloomberg New Energy Finance (via ThinkProgress) that claimed unsubsidized storage projects co-located with solar or wind are starting to compete with coal and gas for dispatchable power. Change is coming to regulated markets, and some of that change can be attributed to customer dissatisfaction with utility service.

Like so many industries before, the utility-customer relationship is on track to become less about measuring unit sales and more about driving revenue through services and delivering the best customer value. Loyal customers are most likely to listen and follow through on the utility’s advice and to trust the utility for a wide range of energy-related products and services. Utilities that make customer experience the highest priority today will emerge tomorrow as the leaders of a new energy service era.

 

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