Daniels urged to oppose coal plant

By Evansville Courier & Press


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A coalition of environmental and consumer groups urged Gov. Mitch Daniels to oppose a proposed $2 billion coal gasification plant, arguing that it would worsen air pollution and saddle Duke Energy customers with a big rate increase.

In their letter to Daniels, the groups asked the governor to withdraw his support for the Southwestern Indiana project and to endorse a state energy policy that includes support for energy efficiency initiatives and renewable energy technology.

Duke Energy's planned 630-megawatt plant would replace an aging traditional coal-fired plant at Edwards-port, Ind., that generates about 130 megawatts.

The letter, signed by members of 13 Indiana and national groups, including Valley Watch, the Hoosier Chapter of the Sierra Club, the Citizens Action Coalition and Greenpeace USA, contends the project would worsen air pollution even though it has been touted as "clean coal."

Rather than building the plant, the letter said, Duke Energy could create more jobs and improve air quality by diverting the money it plans to spend on the coal plant to energy efficiency and renewable energy technologies.

Grant Smith, the executive director of the consumer watchdog group Citizens Action Coalition, said the plant would lead to a rate increase of 15 percent to 20 percent for Duke Energy customers in Indiana.

Daniels was unavailable for comment, but the governor's office spokesman Brad Rateike referred reporters to comments a top Daniels adviser made last week during the sole public hearing on the plant before the Indiana Utility Regulatory Commission, which is considering whether to approve the Duke project.

John Clark, director of the state Office of Energy and Defense Development, told the IURC the plant is "vital" to Daniels' strategic energy plan and would help meet some of the state's future energy needs.

Clark said Purdue University's State Utility Forecasting Group predicts Indiana will need more than 10,600 additional megawatts of electricity by 2023.

The proposed Duke Energy plant would use new technologies to turn high-sulfur coal from the region's mines into synthetic natural gas and generate electric power using combustion and steam turbines.

Opponents say the plant will increase emissions of a variety of pollutants and would emit a projected 3.5 million tons of additional carbon dioxide per year.

"There is nothing clean about coal, and we cannot fight global warming by burning more of it," Evansville-based environmentalist John Blair of Valley Watch said in a news release.

The coal gasification process, which involves turning coal into a watery slurry that's then heated to extract the gas, includes equipment to remove nitrogen oxide and sulfur dioxide as well as mercury emissions.

Duke Energy spokeswoman Angeline Protogere said the plant is projected to cost about $1.98 billion, and, if approved, is expected to boost Duke Energy ratepayers' rates an average of about 16 percent by about 2012.

She said that could rise higher, however, if the utility installs equipment to remove some of the plant's carbon dioxide emissions.

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Why Canada's Energy Security Hinges on Renewables

Renewable Energy Security strengthens affordability and grid reliability through electrification, wind, and solar, reducing fossil fuel volatility exposed by the Ukraine crisis, aligning with IEA guidance and the Paris Agreement to deliver resilient, low-cost power.

 

Key Points

Renewable energy security is reliable, affordable power from electrification, wind and solar, cutting fossil fuel risk.

✅ Wind and solar now outcompete gas for new power capacity.

✅ Diversifies supply and reduces fossil price volatility.

✅ Requires grid flexibility, storage, and demand response.

 

Oil, gas, and coal have been the central pillar of the global energy system throughout the 20th century. And for decades, these fossil fuels have been closely associated with energy security.  

The perception of energy security, however, is rapidly changing. Renewables form an increasing share of energy sectors worldwide as countries look to deliver on the Paris Agreement and mitigate the effects of climate change, with IEA clean energy investment now significantly outpacing fossil fuels. Moreover, Russia’s invasion of Ukraine has demonstrated how relying on fossil fuels for power, heating, and transport has left many countries vulnerable or energy insecure.  

The International Energy Agency (IEA) defines energy security as “the uninterrupted availability of energy sources at an affordable price” (IEA, 2019a). This definition hardly describes today’s global energy situation, with the cancellation of natural gas deliveries and skyrocketing prices for oil and gas products, and with supply chain challenges in clean energy that also require attention. These circumstances have cascading effects on electricity prices in countries like the United Kingdom that rely heavily on natural gas to produce electricity. In Europe, energy insecurity has been even further amplified since the Russian corporation Gazprom recently cut off gas supplies to several countries.  

As a result, energy security has gained new urgency in Canada and worldwide, creating opportunities in the global electricity market for Canada. Recent events provide a stark reminder of the volatility and potential vulnerability of global fossil fuel markets and supply chains. Even in Canada, as one of the largest producers of oil and gas in the world, the price of fuels depends on global and regional market forces rather than government policy or market design. Thus, the average monthly price for gasoline in Canada hit a record high of CAD 2.07 per litre in May 2022 (Figure 1), and natural gas prices surged to a record CAD 7.54 per MMBtu in May 2022 (Figure 2).  

Energy price increases of this magnitude are more than enough to strain Canadian household budgets. But on top of that, oil and gas prices have accelerated inflation more broadly as it has become more expensive to produce, transport, and store goods, including food and other basic commodities (Global News, 2022).  

 

Renewable Energy Is More Affordable 

In contrast to oil and gas, renewable energy can reliably deliver affordable energy, as shown by falling wholesale electricity prices in markets with growing clean power. This is a unique and positive aspect of today’s energy crisis compared to historical crises: options for electrification and renewable-based electricity systems are both available and cost-effective.  

For new power capacity, wind and solar are now cheaper than any other source, and wind power is making gains as a competitive source in Canada. According to Equinor (2022), wind and solar were already cheaper than gas-based power in 2020. This means that renewable energy was already the cheaper option for new power before the recent natural gas price spikes. As illustrated in Figure 3, the cost of new renewable energy has dropped so dramatically that, for many countries, it is cheaper to install new solar or wind infrastructure than to keep operating existing fossil fuel-based power plants (International Renewable Energy Agency, 2021). This means that replacing fossil-based electricity generation with renewables would save money and reduce emissions. Wind and solar prices are expected to continue their downward trends as more countries increase deployment and learn how to best integrate these sources into the grid. 

 

Renewable Energy Is Reliable 

To deliver on the uninterrupted availability side of the energy security equation, renewable power must remain reliable even as more variable energy sources, like wind and solar, are added to the system, and regional leaders such as the Prairie provinces will help anchor this transition. For Canada and other countries to achieve high energy security through electrification, grid system operations must be able to support this, and pathways to zero-emissions electricity by 2035 are feasible.  

 

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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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Ontario Government Consults On Changes To Industrial Electricity Pricing And Programs

Ontario electricity pricing consultations will gather business input on OEB rate design, Industrial Conservation Initiative, dynamic pricing, global adjustment, and system costs through online feedback and sector-specific in-person sessions province-wide.

 

Key Points

Consultations gathering business input on rates, programs, and OEB policy to improve fairness and reduce system costs.

✅ Consults on ICI, GA, dynamic pricing structures

✅ Seeks views on OEB C&I rate design changes

✅ In-person sessions across key industrial sectors

 

The Ontario government has announced plans to hold consultations to seek input from businesses about industrial electricity pricing and programs. This will be done through Ontario's online consultations directory and though in-person sector-specific consultation sessions across the province. The in-person sessions will be held in all areas of Ontario, and will target "key industries," including automotive and the build-out of electric vehicle charging stations infrastructure, forestry, mining, agriculture, steel, manufacturing and chemicals.

On April 1, 2019, the Ontario government published a consultation notice for this process, confirming that it is looking for input on "electricity rate design, existing tax-based incentives, reducing system costs and regulatory and delivery costs," including related proposals such as the hydrogen rate reduction proposal under discussion. The consultation process includes a list of nine questions for respondents (and presumably participants in the in-person sessions) to address. These include questions about:

The benefits of the Industrial Conservation Initiative (described below), including how it could be changed to improve fairness and industrial competitiveness, and how it could complement programs like the Hydrogen Innovation Fund that support industrial innovation.

Dynamic pricing structures that allow for lower rates in return for responding to price signals versus a flat rate structure that potentially costs more, but is more stable and predictable, as Ontario's energy storage expansion accelerates.

Interest in an all-in commodity contract with an electricity retailer, even if it involves a risk premium.

Interested parties are invited to submit their comments before May 31, 2019.

The government's consultation announcement follows recent developments in the Ontario Energy Board's (OEB) review of electricity ratemaking for commercial and industrial customers, and intertie projects such as the Lake Erie Connector that could affect market dynamics.

In December 2018, the OEB published a paper from its Market Surveillance Panel (MSP) examining the Industrial Conservation Initiative (ICI), and potential alternative approaches. The ICI is a program that allows qualifying large industrial customers to base their global adjustment (GA) payments on their consumption during five peak demand hours in a year. Customers who find ways to reduce consumption at those times, perhaps through DERs and enabling energy storage options, will reduce their electricity costs. This shifts GA costs to other customers. The MSP found that the ICI does not fairly allocate costs to those who cause them and/or benefit from them, and recommends that a better approach should be developed.

In February 2019, the OEB released its Staff Report to the Board on Rate Design for Commercial and Industrial Electricity Customers, setting out recommendations for new rate designs for electricity commercial and industrial (C&I) rate classes as Ontario increasingly turns to battery storage to meet rising demand. As described in an earlier post, the Staff Report includes recommendations to: (i) establish a fixed distribution charge for commercial customers with demands under 10 kW; (ii) implement a demand charge (rather than the current volumetric charge) for C&I customers with demands between 10kW and 50kW; and (iii) introduce a "capacity reserve charge" for customers with load displacement generation to replace stand-by charges and provide for recognition of the benefits of this generation on the system. The OEB held a stakeholder information session in mid-March on this initiative, and interested parties are now filing submissions in response to the Staff Report.

Whether and how the OEB's processes will fit together with the government's consultation process remains to be seen.

 

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Changes Coming For Ontario Electricity Consumers

Ontario Electricity Billing Changes include OEB-backed shifts to time-of-use or tiered pricing, landlord blanket elections, LDC implementation guidance, a customer choice webpage with a bill calculator, and ENDM rate mitigation messaging.

 

Key Points

They are OEB measures enabling TOU-to-tiered switching, landlord elections, LDC guidance, and ENDM bill messages.

✅ Option to switch from TOU to tiered pricing

✅ Landlord blanket elections on tenant turnover

✅ ENDM-led bill info and rate mitigation messaging

 

By David Stevens, Aird & Berlis LLP

Electricity consumers in Ontario may see a couple of electricity rate changes in their bills in the coming months.

First, as we have already discussed, as of November 1, 2020, regulated price plan customers will have the option to switch to "tiered pricing" instead of time-of-use (TOU) pricing structures. Those who switch to "tiered pricing" will see changes in their electricity bills.

The Ontario Energy Board (OEB) has now issued final amendments to the Standard Supply Service Code to support the customer election process necessary to switch from TOU pricing to tiered pricing. The main change from what was already published in previous OEB notices is that landlords will be permitted to make a "blanket election" between TOU pricing and tiered pricing that will apply each time a tenant's account reverts back to the landlord on turnover of the rental unit. In its most recent notice, the OEB acknowledges that implementing the new customer billing option as of Nov. 1 (less than two months from now) will be challenging and directs Local Distribution Companies (LDCs) who cannot meet this date to be immediately in touch with the OEB. Finally, the OEB indicates that there will be a dedicated "customer choice webpage for consumers, including a bill calculator" in place by early October.

Second, as of January 1, 2021 low-volume consumers will see additional messaging on their bills to inform them of available rate mitigation programs.

A recent proposal posted on Ontario's Regulatory Registry indicates that the Ministry of Energy, Northern Development and Mines (ENDM) proposes that LDCs and Utility Sub-Meter Providers will be required to include a new on-bill message for low-volume consumers that "will direct customers to ENDM's new web page for further information about how the province provides financial support to electricity consumers." This new requirement is planned to be in place as of January 1, 2021. In conjunction with this requirement, the ENDM plans to launch a new web page that will provide "up-to-date information about electricity bills," including information about rate mitigation programs available to consumers. Parties are invited to submit comments on the ENDM proposal by October 5, 2020.

 

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Nuclear helps Belgium increase electricity exports in 2019

Belgium Energy Mix 2019 shows strong nuclear output, rising offshore wind, net electricity exports, and robust interconnections, per Elia, as the nuclear phaseout drives 3.9GW new capacity needs after improved reactor availability.

 

Key Points

High nuclear share, offshore wind, net exports, interconnections; 3.9GW capacity needed amid nuclear phaseout.

✅ Nuclear supplied 48.8% of generation in 2019.

✅ Net exporter: 1.8 TWh, aided by interconnections.

✅ Elia projects 3.9GW new capacity for phaseout.

 

Belgium's electricity transmission system operator, Elia, said that the major trends in 2019 were a steady increase in (mainly offshore) renewable power generation, illustrated by EU wind and solar records across the bloc, better availability of nuclear-generating facilities and an increase in electricity exports.

In 2019, 48.8% of the power generated in Belgium came from nuclear plants. This was in line with the total for 2017 (50%) and significantly more than in 2018 (31.2%) when several reactors were unavailable amid stunted hydro and nuclear output in Europe as well.

Belgium exported more electricity in 2019, as neighbors like Germany saw renewables overtake coal and nuclear generation, with net exports of 1.8TWh (2.1% of the energy mix), in contrast to 2018 when Belgium imported 17.5TWh (20%).

Elia said this “should be viewed in its wider context, of declining nuclear capacity in Europe and regional market shifts, against the backdrop of an increasingly Europeanised market, and can be explained primarily by the good availability of Belgium's generating facilities (especially its nuclear power stations).”

The development of interconnections was also a key factor in the circulation of these electricity flows, as seen with Irish grid price spikes highlighting regional stress, Elia noted.

“Belgium had not been a net exporter of electricity for almost 10 years, the last time being in 2009 and 2010, when total net exports represented 2.8% and 0.2% respectively of Belgium’s energy mix,” it said.

Belgian has seven nuclear reactors – three at Tihange near Liege and four at Doel near Antwerp – and, regionally, nuclear-powered France faces outage risks that influence cross-border reliability.

In 2003, Belgium decided to phase out nuclear power and passed a law to that effect, with neighbors like Germany navigating a balancing act during their energy transition, which was reaffirmed in 2015 and 2018.

A commission appointed to assess the impact of the nuclear phaseout is scheduled to be completed in 2025 but has yet to report any findings.

Elia estimates that some 3.9GW of new power generating capacity will be needed to compensate for Belgium's nuclear phaseout.

 

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Snohomish PUD Hikes Rates Due to Severe Weather Impact

Snohomish PUD rate increase addresses storm recovery after a bomb cyclone and extended cold snap, stabilizing finances and grid reliability while offering assistance programs, payment plans, and energy efficiency for customers.

 

Key Points

Temp 5.8% residential hike in Feb 2025 to recover storm costs, meet cold snap demand, and uphold reliable service.

✅ 5.8% residential increase effective Feb 2025

✅ Driven by bomb cyclone damage and cold snap demand

✅ Aid includes payment plans, efficiency rebates, low income support

 

In early February 2025, the Snohomish County Public Utility District (PUD) announced a temporary increase in electricity rates to offset the financial impact of severe weather events, including a bomb cyclone and an extended cold snap, that occurred in late 2024. This decision aims to stabilize the utility's finances, a pattern seen at other utilities such as Florida Power & Light, which pursued a hurricane surcharge to recover storm costs, while ensuring continued service reliability for its customers.

Background of the Weather Events

In November 2024, the Pacific Northwest experienced a powerful bomb cyclone—a rapidly intensifying storm characterized by a significant drop in atmospheric pressure. This event brought heavy rainfall, strong winds, and widespread power outages across the region. Compounding the situation, a prolonged cold weather period in December 2024 and January 2025 led to increased energy demand, and similar conditions drove up Pennsylvania power rates in the same winter season, as residents and businesses relied heavily on heating systems.

Impact on Snohomish PUD

The combination of the bomb cyclone and the subsequent cold weather placed considerable strain on the Snohomish PUD's infrastructure and financial resources. The utility incurred substantial costs for emergency repairs, restoration efforts, and the procurement of additional electricity to meet the heightened demand during the cold snap. These unforeseen expenses prompted the PUD to seek a temporary rate adjustment to maintain financial stability and continue providing reliable service to its customers.

Details of the Rate Increase

Effective February 2025, the Snohomish PUD implemented a temporary electricity rate increase of 5.8% for residential customers, compared with a 3% BC Hydro increase in the same region for context. This adjustment is designed to recover the additional costs incurred during the severe weather events. The PUD has communicated that this rate increase is temporary and will be reevaluated after a specified period to determine if further adjustments are necessary.

Customer Impact and Assistance Programs

While the rate increase is intended to be temporary, it may still pose a financial burden for some customers, even as some markets expect rates to stabilize in 2025 in other jurisdictions. To mitigate this impact, the Snohomish PUD has outlined several assistance programs:

  • Payment Plans: Customers facing financial hardship can enroll in extended payment plans to spread the cost of the increased rates over a longer period.

  • Energy Efficiency Programs: The PUD offers incentives and resources to help customers reduce energy consumption, potentially lowering their overall bills.

  • Low-Income Assistance: Eligible low-income customers may qualify for additional support through state and federal assistance programs.

The utility encourages customers to contact their customer service department to explore these options and find the best solutions for their individual circumstances.

Community Response and Future Considerations

The announcement of the rate increase has elicited mixed reactions from the community. Some residents express understanding, recognizing the necessity of maintaining infrastructure and service reliability. Others have voiced concerns about the financial impact, particularly among vulnerable populations, a debate also seen with higher BC Hydro rates in nearby British Columbia.

Looking ahead, the Snohomish PUD is committed to enhancing its infrastructure to better withstand future extreme weather events, an approach aligned with other utilities' multi-year rate proposals to fund upgrades. This includes investing in grid modernization, implementing advanced weather forecasting tools, and developing comprehensive emergency response plans. The utility also plans to engage with the community through public forums and surveys to gather feedback and collaboratively develop strategies that balance financial sustainability with customer affordability.

The temporary electricity rate increase by the Snohomish County Public Utility District reflects the financial challenges posed by severe weather events and parallels regional trends, including BC Hydro's 3.75% over two years adjustments, and underscores the importance of proactive infrastructure investment and community engagement. While the rate adjustment aims to stabilize the utility's finances, the PUD remains focused on supporting its customers through assistance programs and ongoing efforts to enhance service reliability and resilience against future climate-related events.

 

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