California green push to staunch job losses: study

Muskrat Falls rate mitigation progresses as Newfoundland and Labrador and Ottawa align under the updated Atlantic Accord, targeting affordable electricity rates through federal involvement, PUB input, and potential financing solutions with Nalcor, Emera, and lenders.

Key Points

An initiative by NL and Ottawa to keep electricity rates affordable via federal support, PUB input, and financing options.

✅ Federal-provincial talks under the updated Atlantic Accord

✅ PUB process integrated for independent oversight

✅ Possible roles for Nalcor, Emera, and project lenders

At the announcement of an updated Atlantic Accord between the provincial and federal governments, Newfoundland and Larbrador Premier Dwight Ball gave notice federal Finance Minister Bill Morneau will be in St. John’s to talk about the cost of Muskrat Falls and how Labrador power flows through Quebec to market.

“We look forward to welcoming Minister Morneau and his team to advance discussions on federal financing and rate mitigation,” read a statement from the premier’s office Tuesday, in response to questions about that coming meeting and federal-provincial work on rate mitigation.

At the announcement, Ball specifically said the plan is to “finalize federal involvement for making sure electricity rates remain affordable,” such as shielding ratepayers from overruns through federal-provincial measures, with Ball and MP Seamus O’Regan trumpeting the provincial-federal relationship.

The provincial and federal governments are not the only two parties involved in provincial power rates and handling of Muskrat Falls, even as electricity users have started paying for the project across Newfoundland and Labrador, but The Telegram is told details of meetings on rate mitigation are not being released, down to the list of attendees.

The premier’s office was asked specifically about the involvement of Nalcor Energy, including a recent financial update during the pandemic, Emera, Goldman, TD or any others involved in project financing. The response was that the plan is not to indicate what is being explored and who might be involved, until there is something more concrete to speak about.

The government’s plan is to have something to feed into the ongoing work of the Public Utilities Board, to develop a more complete response for rate mitigation, including lump-sum credits on electricity bills and other tools, for the PUB’s final report, due in 2020, even as regulators in Nova Scotia weigh a 14% rate hike in a separate proceeding.

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Atlantic Canada Hurricane Resilience focuses on climate change adaptation: grid hardening, burying lines, coastline resiliency to sea-level rise, mixed forests, and aggressive tree trimming to reduce outages from hurricane-force winds and post-tropical storms.

Key Points

A strategy to harden grids, protect coasts, and manage forests to limit hurricane damage across Atlantic Canada.

✅ Grid hardening and selective undergrounding to cut outage risk.

✅ Coastal defenses: seawalls, dikes, and shoreline vegetation upgrades.

✅ Mixed forests and proactive tree trimming to reduce windfall damage.

In an era when storms with hurricane-force winds are expected to keep battering Atlantic Canada, experts say the region should make major changes to electrical grids, power utilities and shoreline defences and even the types of trees being planted.

Work continues today to reconnect customers after post-tropical storm Dorian knocked out power to 80 per cent of homes and businesses in Nova Scotia. By early afternoon there were 56,000 customers without electricity in the province, compared with 400,000 at the storm's peak on the weekend, a reminder that major outages can linger long after severe weather.

Recent scientific literature says 35 hurricanes -- not including post-tropical storms like Dorian -- have made landfall in the region since 1850, an average of one every five years that underscores the value of interprovincial connections like the Maritime Link for reliability.

Heavy rains and strong winds batter Shelburne, N.S. on Saturday, Sept. 7, 2019 as Hurricane Dorian approaches, making storm safety practices crucial for residents. (Suzette Belliveau/ CTV Atlantic)

Anthony Taylor, a forest ecologist scientist with Natural Resources Canada, wrote in a recent peer-reviewed paper that climate change is expected to increase the frequency of severe hurricanes.

He says promoting more mixed forests with hardwoods would reduce the rate of destruction caused by the storms.

Erni Wiebe, former director of distribution at Manitoba Hydro, says the storms should cause Atlantic utilities to rethink their view that burying lines is too expensive and to contemplate other long-term solutions such as the Maritime Link that enhance grid resilience.

Blair Feltmate, head of the Intact Centre on Climate Change at the University of Waterloo, says Atlantic Canada should also develop standards for coastline resiliency due to predictions of rising sea levels combining with the storms, while considering how delivery rate changes influence funding timelines.

He says that would mean a more rapid refurbishing of sea walls and dike systems, along with more shoreline vegetation.

Feltmate also calls for an aggressive tree-trimming program to limit power outages that he says "will otherwise continue to plague the Maritimes," while addressing risks like copper theft through better security.

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FirstEnergy Nuclear Plant Closures threaten Ohio and Pennsylvania jobs, tax revenue, and grid stability, as Nuclear Matters and Brattle Group warn of higher carbon emissions and market pressures from PJM and cheap natural gas.

Key Points

Planned shutdowns of Davis-Besse, Perry, and Beaver Valley, with regional economic and carbon impacts.

✅ Over 3,000 direct jobs and local tax revenue at risk

✅ Emissions may rise until renewables scale, possibly into 2034

✅ Debate over subsidies, market design, and PJM capacity rules

A national nuclear lobby wants to remind people what's at stake for Ohio and Pennsylvania if FirstEnergy Solutions follows through with plans to shut down three nuclear plants over the next three years, including its Davis-Besse nuclear plant east of Toledo.

A report issued Monday by Nuclear Matters largely echoes concerns raised by FES, a subsidiary of FirstEnergy Corp., and other supporters of nuclear power about economic and environmental hardships and brownout risks that will likely result from the planned closures.

Along with Davis-Besse, Perry nuclear plant east of Cleveland and the twin-reactor Beaver Valley nuclear complex west of Pittsburgh are slated to close.

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"If these plants close, the livelihoods of thousands of Ohio and Pennsylvania residents will disappear. The over 3,000 highly skilled individuals directly employed by these sites will leave to seek employment at other facilities still operating around the country," Lonnie Stephenson, International Brotherhood of Electrical Workers president, said in a statement distributed by Nuclear Matters. Mr. Stephenson also serves on the Nuclear Matters advocacy council.

This new report and others like it are part of an extensive campaign by nuclear energy advocates to court state and federal legislators one more time for tens of millions of dollars of financial support or at least legislation that better suits the nuclear industry. Critics allege such pleas amount to a request for massive government bailouts, arguing that deregulated electricity markets should not subsidize nuclear.

The latest report was prepared for Nuclear Matters by the Brattle Group, a firm that specializes in analyzing economic, finance, and regulatory issues for corporations, law firms, and governments.

"These announced retirements create a real urgency to learn what would happen if these plants are lost," Dean Murphy, the Brattle report's lead author, said.

More than 3,000 jobs would be lost, as would millions of dollars in tax revenue. It also could take as long as 2034 for the region's climate-altering carbon emissions to be brought back down to existing levels, based on current growth projections for solar- and wind-powered projects, and initiatives such as ending coal by 2032 by some utilities, Mr. Murphy said.

His group's report only takes into account nuclear plant operations, though. Many of those who oppose nuclear power have long pointed out that mining uranium for nuclear plant fuel generates substantial emissions, as does the process of producing steel cladding for fuel bundles and the enrichment-production of that fuel. Still, nuclear has ranked among the better performers in reports that have taken such a broader look at overall emissions.

FES has accused the regional grid operator, PJM Interconnection, of creating market conditions that favor natural gas and, thus, make it almost impossible for nuclear to compete throughout its 13-state region, a debate intensified by proposed electricity pricing changes at the federal level.

PJM has strongly denied those accusations, and has said it anticipates no shortfalls in energy distribution if those nuclear plants close prematurely, even as a recent FERC decision on grid policy drew industry criticism.

FES, citing massive losses, has filed for Chapter 11 bankruptcy. The target dates for closures of the FES properties are May 31, 2020 for Davis-Besse; May 31, 2021 for Perry and Beaver Valley Unit 1, and Oct. 31, 2021 for Beaver Valley Unit 2.

In addition to the three FES sites, the report includes information about the Three Mile Island Unit 1 plant near Harrisburg, Pa., which Chicago-based Exelon Generation Corp. has previously announced will be shut down in 2019. That plant and others are experiencing similar difficulties the FES plants face by competing in a market radically changed by record-low natural gas prices.

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Clorox Enel 70 MW VPPA accelerates renewable energy, sourcing Texas solar from the Roadrunner project to support 100% renewable electricity, Scope 2 reductions, and grid decarbonization through a virtual power purchase agreement starting in 2021.

Key Points

A 12-year virtual power purchase agreement for 70 MW of Texas solar to advance Clorox's 100% renewable electricity goal.

✅ 12-year contract supporting 100% renewable electricity by 2021

✅ Supplies 70 MW from Enel's Roadrunner solar project in Texas

✅ Cuts Scope 2 emissions via grid-delivered virtual PPA

The Clorox Company and a wholly owned subsidiary of Enel Green Power North America announced today the signing of a 12-year, 70 megawatt (MW) virtual power purchase agreement (VPPA) for the purchase of renewable energy, aligned with carbon-free electricity investments across the power sector beginning in 2021. Representing about half of Clorox's 100% renewable electricity goal in its operations in the U.S. and Canada, this agreement is expected to help Clorox accelerate achieving its goal in 2021, four years ahead of the company's original plan.

"Climate change and rising greenhouse gas emissions pose a real threat to the health of our planet and ultimately the long-term well-being of people globally. That's why we've taken action for more than 10 years to measure and reduce the carbon footprint of our operations," said Benno Dorer, chair and CEO, The Clorox Company. "Our agreement with Enel helps to expand U.S. renewable energy infrastructure, reflecting our view that companies like Clorox play an important role in addressing global climate change, as landmark policies like the U.S. climate deal further accelerate the transition. We believe this agreement will significantly contribute toward Clorox achieving our goal of 100% renewable electricity in our operations in the U.S. and Canada in 2021, four years earlier than originally planned. Our commitment to climate stewardship is an important pillar of our new IGNITE strategy and part of our overall efforts to drive Good Growth – growth that's profitable, sustainable and responsible."

The 70MW VPPA between Clorox and Enel Green Power North America for the purchase of renewable energy delivered to the electricity grid is for the second phase of Enel's Roadrunner solar project to be built in Texas, and complement global clean energy collaborations such as Canada-Germany hydrogen cooperation announced recently. Roadrunner is a 497-direct current megawatt (MWdc) solar project that is being built in two phases. The first phase, currently under construction, comprises around 252 MWdc and is expected to be completed by the end of 2019, while the remaining 245 MWdc of capacity is expected to be completed by the end of 2020. Once fully operational, the solar plant could generate up to 1.2 terawatt-hours (TWh) of electricity annually, while avoiding an estimated 800,000 metric tons of carbon dioxide emissions per year.

Based on the U.S. Environmental Protection Agency Greenhouse Gas Equivalencies Calculator[i], this VPPA is estimated to avoid approximately 140,000 metric tons of CO2 emissions each year. This is equivalent to the annual impact that 165,000 acres of U.S. forest can have in removing CO2 from the atmosphere, and illustrates why cleaning up Canada's electricity is central to emissions reductions in the power sector, or the carbon impact of the electricity needed to power more than 24,000 U.S. homes annually.

"We are proud to support Clorox on their path towards 100% renewable electricity in its operations in the U.S. and Canada by helping them achieve about half their goal through this agreement," said Georgios Papadimitriou, head of Enel Green Power North America. "This agreement with Clorox reinforces the continued significance of renewable energy as a fundamental part of any company's sustainability strategy."

Schneider Electric Energy & Sustainability Services advised Clorox on this power purchase agreement and, amid heightened investor attention exemplified by the Duke Energy climate report, supported the company in its project selection, analysis, negotiations and deal execution.

Clorox Commits to Scope 1, 2 and 3 Science-Based Targets

For more than 10 years, Clorox has consistently achieved its goals to reduce greenhouse gas emissions in its operations. Clorox is focused on setting emissions reduction targets in line with climate science. As a participant in the Science Based Targets Initiative, Clorox has committed to setting and achieving science-based greenhouse gas emissions reduction targets in its operations (Scopes 1 and 2) and across its value chain (Scope 3), and consistent with national pathways such as Canada's net-zero 2050 target pursued by policymakers. The targets are considered "science-based" if they are in line with what the latest climate science says is necessary to meet the goals of the 2015 Paris Agreement – a global environmental accord to address climate change and its negative impacts.

Clorox's climate stewardship goals are part of its new integrated corporate strategy called IGNITE, which includes several other environmental, social and governance (ESG) goals and reflects lessons from Canada's electricity progress in scaling clean power. More comprehensive information about Clorox's IGNITE ESG goals can be found here. Information on Clorox's 2020 ESG strategy can be found in its fiscal year 2019 annual report.

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BC Hydro COVID-19 Relief Fund enables small businesses to waive electricity bills for commercial properties during the pandemic, offering credits, rate support, and applications for eligible customers forced to temporarily close.

Key Points

A program that lets eligible small businesses waive up to three months of BC Hydro bills during COVID-19 closures.

✅ Eligible small general service BC Hydro accounts

✅ Up to 3 months of waived electricity charges

✅ Must be temporarily closed due to the pandemic

Businesses are taking advantage of a BC Hydro relief fund that allows electricity bills for commercial properties to be waived during the COVID-19 pandemic.

More than 3,000 applications have already been filed since the program launched on Wednesday, allowing commercial properties forced to shutter during the crisis to waive the expense for up to three months, while Ontario rate reductions are taking effect for businesses under separate measures. 

“To be eligible for the COVID-19 Relief Fund, business customers must be on BC Hydro’s small general service rate and have temporarily closed or ceased operation due to the COVID-19 pandemic,” BC Hydro said in a statement. “BC Hydro estimates that around 40,000 small businesses in the province will be eligible for the program.”

The program builds off a similar initiative BC Hydro launched last week for residential customers who have lost employment or income because of COVID-19, and parallels Ontario's subsidized hydro plan introduced to support ratepayers. So far, 57,000 B.C. residents have applied for the relief fund, which amounts to an estimated $16 million in credits, amid scrutiny over deferred BC Hydro operating costs reported by the auditor general.

Electricity use across B.C. has plummeted since the outbreak began. 

According to BC Hydro, daily consumption has fallen 13% in the first two weeks of April, aligning with electricity demand down 10% reports, compared to the three-year average for the same time period.

Electricity use has fallen 30% for recreation facilities, 29% in the restaurant sector and 27% in hotels, while industry groups such as Canadian Manufacturers & Exporters have supported steps to reduce prices. 

For more information about the COVID-19 Relief Fund and advice on avoiding BC Hydro scam attempts, go to bchydro.com/covid19relief.

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COVID-19 Impact on U.S. Electricity Consumption shows commercial and industrial demand dropped as residential use rose, with flattened peak loads, weekday-weekend convergence, Texas hourly data, and energy demand as a real-time economic indicator.

Key Points

It reduced commercial and industrial demand while raising residential use, shifting peaks and weekday patterns.

✅ Commercial electricity down 12%; industrial down 14% in Q2 2020

✅ Residential use up 10% amid work-from-home and lockdowns

✅ Peaks flattened; weekday-weekend loads converged in Texas

This is an important turning point for the United States. We have a long road ahead. But one of the reasons I’m optimistic about Biden-Harris is that we will once again have an administration that believes in science.

To embrace this return to science, I want to write today about a fascinating new working paper by Tufts economist Steve Cicala.

Professor Cicala has been studying the effect of Covid on electricity consumption since back in March, when the Wall Street Journal picked up his work documenting an 18% decrease in electricity consumption in Italy.

The new work, focused on the United States, is particularly compelling because it uses data that allows him to distinguish between residential, commercial, and industrial sectors, against a backdrop of declining U.S. electricity sales over recent years.

Without further ado, here are four facts he uncovers about Covid and U.S. electricity demand during COVID-19 and consumption.

Fact #1: Firms Are Using Less
U.S. commercial electricity consumption fell 12% during the second quarter of 2020. U.S. industrial electricity consumption fell 14% over the same period.

This makes sense. The second quarter was by some measures, the worst quarter for the U.S. economy in over 145 years!

Economic activity shrank. Schools closed. Offices closed. Factories closed. Restaurants closed. Malls closed. Even health care offices closed as patients delayed going to the dentist and other routine care. All this means less heating and cooling, less lighting, less refrigeration, less power for computers and other office equipment, less everything.

The decrease in the industrial sector is a little more surprising. My impression had been that the industrial sector had not fallen as far as commercial, but amid broader disruptions in coal and nuclear power that strained parts of the energy economy, the patterns for both sectors are quite similar with the decline peaking in May and then partially rebounding by July. The paper also shows that areas with higher unemployment rates experienced larger declines in both sectors.

Fact #2: Households Are Using More
While firms are using less, households are using more. U.S. residential electricity consumption increased 10% during the second quarter of 2020. Consumption surged during March, April, and May, a reflection of the lockdown lifestyle many adopted, and then leveled off in June and July – with much less of the rebound observed on the commercial/industrial side.

This pattern makes sense, too. In Professor Cicala’s words, “people are spending an inordinate amount of time at home”. Many of us switched over to working from home almost immediately, and haven’t looked back. This means more air conditioning, more running the dishwasher, more CNN (especially last week), more Zoom, and so on.

The paper also examines the correlates of the decline. Areas in the U.S. where more people can work from home experienced larger increases. Unemployment rates, however, are almost completely uncorrelated with the increase.

Fact #3: Firms are Less Peaky
The paper next turns to a novel dataset from Texas, where Texas grid reliability is under active discussion, that makes it possible to measure hourly electricity consumption by sector.

As the figure above illustrates, the biggest declines in commercial/industrial electricity consumption have occurred Monday through Friday between 9AM and 5PM.

The dashed line shows the pattern during 2019. Notice the large spikes in electricity consumption during business hours. The solid line shows the pattern during 2020. Much smaller spikes during business hours.

Fact #4: Everyday is Like Sunday
Finally, we have what I would like to nominate as the “Energy Figure of the Year”.

Again, start with the pattern for 2019, reflected by the dashed line. Prior to Covid, Texas households used a lot more electricity on Saturdays and Sundays.

Then along comes Covid, and turned every day into the weekend. Residential electricity consumption in Texas during business hours Monday-Friday is up 16%(!).

In the pattern for 2020, it isn’t easy to distinguish weekends from weekdays. If you feel like weekdays and weekends are becoming a big blur – you are not alone.

Conclusion
Researchers are increasingly thinking about electricity consumption as a real-time indicator of economic activity, even as flat electricity demand complicates utility planning and investment. This is an intriguing idea, but Professor Cicala’s new paper shows that it is important to look sector-by-sector.

While commercial and industrial consumption indeed seem to measure the strength of an economy, residential consumption has been sharply countercylical – increasing exactly when people are not at work and not at school.

These large changes in behavior are specific to the pandemic. Still, with the increased blurring of home and non-home activities we may look back on 2020 as a key turning point in how we think about these three sectors of the economy.

More broadly, Professor Cicala’s paper highlights the value of social science research. We need facts, data, and yes, science, if we are to understand the economy and craft effective policies on energy insecurity and shut-offs as well.

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