Utility towers protested in Santa Clarita

By LA Daily News


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From his home in the Belcaro senior housing development, Brian Smith can see the 200-foot-plus steel tower from his backyard, from inside his home and outside his garage.

"I feel like I am living in an industrial center, not a suburban, residential environment," said Smith, 64.

Smith is one of more than 100 seniors who are fighting with Southern California Edison to have the towers removed and replaced with smaller, less obtrusive poles.

The structures are far larger, they say, than what they expected Edison would build when state officials first approved the project.

But it's a request Edison says it can't fill because the smaller tubular steel poles just aren't feasible in the area.

More than 100 residents staged a rally inside their gated community to protest the towers.

Santa Clarita Mayor Bob Kellar and Los Angeles County Supervisor Michael Antonovich fired off a letter to Edison's chairman and chief executive officer, Alan J. Fohrer, asking that the towers be removed.

"The lattice steel towers create significant visual blight and are in direct contrast to commitments made by (Edison) to the residents of the Santa Clarita Valley," according to the letter.

But Southern California Edison spokesman Steve Conroy said no such commitments were made to the Santa Clarita community.

The poles were an option, he said, but they won't work.

"The steel tubular poles were not technically feasible in order to complete this project to meet reliability and engineering design criteria associated with a project of this scale," Conroy said.

The project — called the Antelope-Pardee Transmission Line Project — will eventually transmit power generated by wind and solar projects from Tehachapi to the Inland Empire.

When the California Public Utilities Commission approved the project in 2007, it specified that Edison would use the poles in Santa Clarita, unless the company could show it wasn't feasible, said Andrew Kotch, a commission spokesman.

Last January, Edison submitted a report to the commission declaring that the poles weren't feasible and the commission allowed the towers to be used in Santa Clarita, Kotch said.

Hunt Braly, an attorney for the Belcaro residents, says the commission's staff approved the towers with no peer review and no independent engineering study.

Plus, the citizens, who had relied on the belief that poles would be used, were not notified, Braly said. In an April letter from Edison notifying residents about impending construction, there was no mention of the type of structures that would be built, he said.

"They don't know until the monstrosities begin to be built, which is about a month ago," Braly said.

Belcaro homeowners talk about little else, said 72-year-old resident Maynard Davis.

Davis says he can see several towers from his home.

"It has taken over our lives here," he said. "Absolutely."

He and his wife Judy moved from Burbank about four years ago and invested their life savings into their Santa Clarita home, in the hopes of leaving a nest egg for their children and grandchildren. Now, he says, no one will buy his home.

"That's our legacy," Davis said. "And, it's gone."

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A Texas-Sized Gas-for-Electricity Swap

Texas Heat Pump Electrification replaces natural gas furnaces with electric heating across ERCOT, cutting carbon emissions, lowering utility bills, shifting summer peaks to winter, and aligning higher loads with strong seasonal wind power generation.

 

Key Points

Statewide shift from gas furnaces to heat pumps in Texas, reducing emissions and bills while moving grid peak to winter.

✅ Up to $452 annual utility savings per household

✅ CO2 cuts up to 13.8 million metric tons in scenarios

✅ Winter peak rises, summer peak falls; wind aligns with load

 

What would happen if you converted all the single-family homes in Texas from natural gas to electric heating?

According to a paper from Pecan Street, an Austin-based energy research organization, the transition would reduce climate-warming pollution, save Texas households up to $452 annually on their utility bills, and flip the state from a summer-peaking to a winter-peaking system. And that winter peak would be “nothing the grid couldn’t evolve to handle,” according to co-author Joshua Rhodes, a view echoed by analyses outlining Texas grid reliability improvements statewide today.

The report stems from the reality that buildings must be part of any comprehensive climate action plan.

“If we do want to decarbonize, eventually we do have to move into that space. It may not be the lowest-hanging fruit, but eventually we will have to get there,” said Rhodes.

Rhodes is a founding partner of the consultancy IdeaSmiths and an analyst at Vibrant Clean Energy. Pecan Street commissioned the study, which is distilled from a larger original analysis by IdeaSmiths, at the request of the nonprofit Environmental Defense Fund.

In an interview, Rhodes said, “The goal and motivation were to put bounding on some of the claims that have been made about electrification: that if we electrify a lot of different end uses or sectors of the economy...power demand of the grid would double.”

Rhodes and co-author Philip R. White used an analysis tool from the National Renewable Energy Laboratory called ResStock to determine the impact of replacing natural-gas furnaces with electric heat pumps in homes across the ERCOT service territory, which encompasses 90 percent of Texas’ electricity load.

Rhodes and White ran 80,000 simulations in order to determine how heat pumps would perform in Texas homes and how the pumps would impact the ERCOT grid.

The researchers modeled the use of “standard efficiency” (ducted, SEER 14, 8.2 HSPF air-source heat pump) and “superior efficiency” (ductless, SEER 29.3, 14 HSPF mini-split heat pump) heat pump models against two weather data sets — a typical meteorological year, and 2011, which had extreme weather in both the winter and summer and highlighted blackout risks during severe heat for many regions.

Emissions were calculated using Texas’ power sector data from 2017. For energy cost calculations, IdeaSmiths used 10.93 cents per kilowatt-hour for electricity and 8.4 cents per therm for natural gas.

Nothing the grid can't handle
Rhodes and White modeled six scenarios. All the scenarios resulted in annual household utility bill savings — including the two in which annual electricity demand increased — ranging from $57.82 for the standard efficiency heat pump and typical meteorological year to $451.90 for the high-efficiency heat pump and 2011 extreme weather year.

“For the average home, it was cheaper to switch. It made economic sense today to switch to a relatively high-efficiency heat pump,” said Rhodes. “Electricity bills would go up, but gas bills can go down.”

All the scenarios found carbon savings too, with CO2 reductions ranging from 2.6 million metric tons with a standard efficiency heat pump and typical meteorological year to 13.8 million metric tons with the high-efficiency heat pump in 2011-year weather.

Peak electricity demand in Texas would shift from summer to winter. Because heat pumps provide both high-efficiency space heating and cooling, in the scenario with “superior efficiency” heat pumps, the summer peak drops by nearly 24 percent to 54 gigawatts compared to ERCOT’s 71-gigawatt 2016 summer peak, even as recurring strains on the Texas power grid during extreme conditions persist.

The winter peak would increase compared to ERCOT’s 66-gigawatt 2018 winter peak, up by 22.73 percent to 81 gigawatts with standard efficiency heat pumps and up by 10.6 percent to 73 gigawatts with high-efficiency heat pumps.

“The grid could evolve to handle this. This is not a wholesale rethinking of how the grid would have to operate,” said Rhodes.

He added, “There would be some operational changes if we went to a winter-peaking grid. There would be implications for when power plants and transmission lines schedule their downtime for maintenance. But this is not beyond the realm of reality.”

And because Texas’ wind power generation is higher in winter, a winter peak would better match the expected higher load from all-electric heating to the availability of zero-carbon electricity.

 

A conservative estimate
The study presented what are likely conservative estimates of the potential for heat pumps to reduce carbon pollution and lower peak electricity demand, especially when paired with efficiency and demand response strategies that can flatten demand.

Electric heat pumps will become cleaner as more zero-carbon wind and solar power are added to the ERCOT grid, as utilities such as Tucson Electric Power phase out coal. By the end of 2018, 30 percent of the energy used on the ERCOT grid was from carbon-free sources.

According to the U.S. Energy Information Administration, three in five Texas households already use electricity as their primary source of heat, much of it electric-resistance heating. Rhodes and White did not model the energy use and peak demand impacts of replacing that electric-resistance heating with much more energy efficient heat pumps.

“Most of the electric-resistance heating in Texas is located in the very far south, where they don’t have much heating at all,” Rhodes said. “You would see savings in terms of the bills there because these heat pumps definitely operate more efficiently than electric-resistance heating for most of the time.”

Rhodes and White also highlighted areas for future research. For one, their study did not factor in the upfront cost to homeowners of installing heat pumps.

“More study is needed,” they write in the Pecan Street paper, “to determine the feasibility of various ‘replacement’ scenarios and how and to what degree the upgrade costs would be shared by others.”

Research from the Rocky Mountain Institute has found that electrification of both space and water heating is cheaper for homeowners over the life of the appliances in most new construction, when transitioning from propane or heating oil, when a gas furnace and air conditioner are replaced at the same time, and when rooftop solar is coupled with electrification, aligning with broader utility trends toward electrification.

More work is also needed to assess the best way to jump-start the market for high-efficiency all-electric heating. Rhodes believes getting installers on board is key.

“Whenever a homeowner’s making a decision, if their system goes out, they lean heavily on what the HVAC company suggests or tells them because the average homeowner doesn’t know much about their systems,” he said.

More work is also needed to assess the best way to jump-start the market for high-efficiency all-electric heating, and how utility strategies such as smart home network programs affect adoption too. Rhodes believes getting installers on board is key.

 

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Electricity is civilization": Winter looms over Ukraine battlefront

Ukraine Power Grid Restoration accelerates across liberated Kharkiv, restoring electricity, heat, and water amid missile and drone strikes, demining operations, blackouts, and winterization efforts, showcasing resilience, emergency repairs, and critical infrastructure recovery.

 

Key Points

Ukraine's rapid push to repair war-damaged grids, restore heat and water, and stabilize key services before winter.

✅ Priority repairs restore electricity and water in liberated Kharkiv.

✅ Crews de-mine lines and work under shelling, drones, and missiles.

✅ Winterization adds generators, mobile stoves, and large firewood supplies.

 

On the freshly liberated battlefields of northeast Ukraine, a pile of smashed glass windows outside one Soviet-era block of apartments attests to the violence of six months of Russian occupation, and of Ukraine’s sweeping recent military advances.

Indoors, in cramped apartments, residents lived in the dark for weeks on end.

Now, with a hard winter looming, they marvel at the speed and urgency with which Ukrainian officials have restored another key ingredient to their survival: electric power, a critical effort to keep the lights on this winter across communities.

Among those things governments strive to provide are security, opportunity, and minimal comfort. With winter approaching, and Russia targeting Ukraine’s infrastructure, add to that list heat and light, even as Russia hammers power plants nationwide. It’s requiring a concerted effort.

“Thank God it works! Electricity is civilization – it is everything,” says Antonina Krasnokutska, a retired medical worker, looking affectionately at the lightbulb that came on the day before, and now burns again in her tiny spotless kitchen.

“Without electricity there is no TV, no news, no clothes washing, no charging the phone,” says Ms. Krasnokutska, her gray hair pulled back and a small crucifix around her neck.

“Before, it was like living in the Stone Age,” says her grown son, Serhii Krasnokutskyi, who is more than a head taller. “As soon as it got dark, everyone would go to sleep.”

He shows a picture on his phone from a few days earlier, of a tangle of phone and computer charging cables – including his – plugged in at a local shop with a generator.

“We are very grateful for the people who repaired this electricity, even with shelling continuing,” he says. “They have a very complicated job.”

Indeed, although a lack of power might have been a novel inconvenience during the warm summer season, it increasingly has become a matter of great urgency for Ukrainian citizens and officials.

Coping through Ukraine’s winter with dignity and any degree of security will require courage and perseverance, as the severity and suffering that the season can bring here are being weaponized by Russia, as it seeks to compensate for a string of battlefield losses.

In recent days, Russian attacks have specifically targeted Ukraine’s electrical and other civilian infrastructure – all with the apparent aim of making this winter as hard as possible for Ukrainians, even as Moscow employs other measures to spread the hardship across Europe, while Ukraine helps Spain amid blackouts through grid support.

Ukrainian President Volodymyr Zelenskyy said Monday that Russian barrages across the country with missiles and Iran-supplied kamikaze drones had destroyed 30% of Ukraine’s power stations in the previous eight days, including strikes on western Ukraine that caused outages. Thousands of towns have been left without electricity.

Kharkiv’s challenges
Emblematic of the national challenge is the one facing officials in the northeast Kharkiv region, where Ukraine recaptured more than 3,000 square miles in a September counteroffensive. Ukrainian forces are still making gains on that front, as well as in the south toward Kherson, where Wednesday Russia started evacuating civilians from the first major city it occupied, after launching its three-pronged invasion last February.

Across the Kharkiv region, Ukrainians are stockpiling as much wood, fuel, and food as possible while they still can, and adopting new energy solutions as they prepare, from sources as diverse as the floorboards of destroyed schools and the pine forests in Izium, which are pockmarked with abandoned Russian trenches adjacent to a mass burial site.

“Of course, we have this race against time,” says Serhii Mahdysyuk, the Kharkiv regional director in charge of housing, services, fuel, and energy. “Unfortunately, we probably stand in front of the biggest challenge in Ukraine.”

That is not only because of the scale of liberated territory, he says, but also because the Kharkiv region shares a long border with Russia, as well as with the Russian-controlled areas of the eastern Donbas.

“It’s a great mixture of all threats, and we are sure that shelling and bombings will continue, but we are ready for this,” says Mr. Mahdysyuk. “We know our weak spots that Russia can destroy, but we are prepared for what to do in these situations.”

Ukraine’s battlefield gains have meant a surging need to pick up the pieces after Russian occupation, even as electricity reserves are holding if no new strikes occur, to ensure habitable conditions as more and more surviving residents require services, and as others return to scenes of devastation.

Restoring electricity is the top priority, amid shifting international assistance such as the end of U.S. grid support, because that often restarts running water, too, says Mr. Mahdysyuk. But before that, the area beneath broken power lines must be de-mined.

Indeed, members of an electricity team reconnecting cables on the outskirts of Balakliia – one of the first towns to see power restored, at the end of September – say they lost two fellow workers in the previous two weeks. One died after stepping on an anti-personnel mine, another when his vehicle hit an anti-tank device.

Ukrainian electricity workers restore power lines damaged during six months of Russian military occupation in Balakliia, Ukraine, Sept. 29, 2022. Ukrainians in liberated territory say the restoration of the electrical grid, and with it often the water supply, is a return to civilization.
“For now, our biggest problem is mines,” says the team leader, who gave the name Andrii. “It’s fine within the cities, but in the fields it’s a disaster because it’s very difficult to see them. There is a lot of [them] around here – it will take years and years to get rid of.”

Yet officials only have a few weeks to execute plans to provide for hundreds of thousands of residents in this region, in their various states of need and distress. Some 50 field kitchens capable of feeding 200 to 300 people each have been ordered. Another 1,000 mobile stoves are on their way.

And authorities will provide nearly 200,000 cubic yards of firewood for those who have no access to it, and may have no other means of keeping warm – or where shelling continues to disrupt repairs, says Mr. Mahdysyuk.

“The level of opportunity and resources we have is not the same as the level of destruction,” he says. People in districts and buildings too destroyed to have services restored soon, such as in Saltivka in Kharkiv city, may be moved.

 

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Iran turning thermal power plants to combined cycle to save energy

Iran Combined-Cycle Power Plants drive energy efficiency, cut greenhouse gases, and expand megawatt capacity by converting thermal units; MAPNA-led upgrades boost grid reliability, reduce fuel use, and accelerate electricity generation growth nationwide.

 

Key Points

Upgraded thermal plants that reuse waste heat to boost efficiency, cut emissions, and add capacity to Iran's grid.

✅ 27 thermal plants converted; 160 more viable units identified

✅ Adds 12,600 MW capacity via heat recovery steam generators

✅ Combined-cycle share: 31.2% of 80.509 GW capacity

 

Iran has turned six percent of its thermal power plans into combined cycle plants in order to reduce greenhouse gases and save energy, with potential to lift thermal plants' PLF under rising demand, IRNA reported, quoting an energy official.

According to the MAPNA Group’s Managing Director Abbas Aliabadi, so far 27 thermal power plants have been converted to combined-cycle ones, aligning with Iran’s push to transmit power to Europe as a regional hub.

“The conversion of a thermal power plant to a combined cycle one takes about one to two years, however, it is possible for us to convert all the country’s thermal power plants into combined cycle plants over a five-year period.

Currently, a total of 478 thermal power plants are operating throughout Iran, of which 160 units could be turned into combined cycle plants. In doing so, 12,600 megawatts will be added to the country’s power capacity, supporting ongoing exports such as supplying a large share of Iraq's electricity under existing arrangements.

Related cross-border work includes deals to rehabilitate Iraq's power grid that support future exchanges.

As reported by IRNA on Wednesday, Iran’s Nominal electricity generation capacity has reached 80,509 megawatts (80.509 gigawatts), and it is deepening energy cooperation with Iraq to bolster regional reliability. The country increased its electricity generation capacity by 500 megawatts (MW) compared to the last year (ended on March 20).

Currently, with a total generation capacity of 25,083 MW (31.2 percent) combined cycle power plants account for the biggest share in the country’s total power generation capacity followed by gas power plants generating 29.9 percent, amid global trends where renewables are set to eclipse coal and regional moves such as Israel's coal reduction signal accelerating shifts. EF/MA

 

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Here's what we know about the mistaken Pickering nuclear alert one week later

Pickering Nuclear Alert Error prompts Ontario investigation into the Alert Ready emergency alert system, Pelmorex safeguards, and public response at Pickering Nuclear Generating Station, including potassium iodide orders and geo-targeted notification issues.

 

Key Points

A mistaken Ontario emergency alert about the Pickering plant, now under probe for human error and system safeguards.

✅ Investigation led by Emergency Management Ontario

✅ Alert Ready and Pelmorex safeguards under review

✅ KI pill demand surged; geo-targeting questioned

 

A number of questions still remain a week after an emergency alert was mistakenly sent out to people across Ontario warning of an unspecified incident at the Pickering Nuclear Generating Station. 

The province’s solicitor general has stepped in and says an investigation into the incident should be completed fairly quickly according to the minister.

However, the nuclear scare has still left residents on edge with tens of thousands of people ordering potassium iodide, or KI, pills that protect the body from radioactive elements in the days following the incident.

Here’s what we know and still don’t know about the mistaken Pickering nuclear plant alert:

Who sent the alert?

According to the Alert Ready Emergency Alert System website, the agency works with several federal, provincial and territorial emergency management officials, Environment and Climate Change Canada and Pelmorex, a broadcasting industry and wireless service provider, to send the alerts.

Martin Belanger, the director of public alerting for Pelmorex, a company that operates the alert system, said there are a number of safeguards built in, including having two separate platforms for training and live alerts.

"The software has some steps and some features built in to minimize that risk and to make sure that users will be able to know whether or not they're sending an alert through the... training platform or whether they're accessing the live system in the case of a real emergency," he said.

Only authorized users have access to the system and the province manages that, Belanger said. Once in the live system, features make the user aware of which platform they are using, with various prompts and messages requiring the user's confirmation. There is a final step that also requires the user to confirm their intent of issuing an alert to cellphones, radio and TVs, Belanger said.

Last Sunday, a follow-up alert was sent to cellphones nearly two hours after the original notification, and during separate service disruptions such as a power outage in London residents also sought timely information.

What has the investigation revealed?

It’s still unclear as to how exactly the alert was sent in error, but Solicitor General Sylvia Jones has tapped the Chief of Emergency Management Ontario to investigate.

"It's very important for me, for the people of Ontario, to know exactly what happened on Sunday morning," Jones said.

Jones said initial observations suggest human error was responsible for the alert that was sent out during routine tests of the emergency alert.

“I want to know what happened and equally important, I want some recommendations on insurances and changes we can make to the system to make sure it doesn't happen again,” Jones said.

Jones said she expects the results of the probe to be made public.

Can you unsubscribe from emergency alerts?

It’s not possible to opt out of receiving the alerts, according to the Alert Ready Emergency Alert System website, and Ontario utilities warn about scams to help customers distinguish official notices.

“Given the importance of warning Canadians of imminent threats to the safety of life and property, the CRTC requires wireless service providers to distribute alerts on all compatible wireless devices connected to an LTE network in the target area,” the website reads.

The agency explains that unlike radio and TV broadcasting, the wireless public alerting system is geo-targeted and is specific to the a “limited area of coverage”, and examples like an Alberta grid alert have highlighted how jurisdictions tailor notices for their systems.

“As a result, if an emergency alert reaches your wireless device, you are located in an area where there is an imminent danger.”

The Pickering alert, however, was received by people from as far as Ottawa to Windsor.

Is the Pickering Nuclear Generating Station closing?

The Pickering nuclear plant has been operating since 1971, and had been scheduled to be decommissioned this year, but the former Liberal government -- and the current Progressive Conservative government -- committed to keeping it open until 2024. Decommissioning is now set to start in 2028.

It operates six CANDU reactors, and in contingency planning operators have considered locking down key staff to maintain reliability, generates 14 per cent of Ontario's electricity and is responsible for 4,500 jobs across the region, according to OPG, while utilities such as Hydro One's relief programs have supported customers during broader crises.

What should I do if I receive an emergency alert?

Alert Ready says that if you received an alert on your wireless device it’s important to take action “safely”.

“Stop what you are doing when it is safe to do so and read the emergency alert,” the agency says on their website.

“Alerting authorities will include within the emergency alert the information you need and guidance for any action you are required to take, and insights from U.S. grid pandemic response underscore how critical infrastructure plans intersect with public safety.”

“This could include but is not limited to: limit unnecessary travel, evacuate the areas, seek shelter, etc.”

The wording of last Sunday's alert caused much initial confusion, warning residents within 10 kilometres of the plant of "an incident," though there was no "abnormal" release of radioactivity and residents didn't need to take protective steps, but emergency crews were responding.

“In the event of a real emergency, the wording would be different,” Jones said.

 

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Russian Strikes Threaten Ukraine's Power Grid

Ukraine Power Grid Attacks intensify as missile and drone strikes hit substations and power plants, causing blackouts, humanitarian crises, strained hospitals, and emergency repairs, with winter energy shortages and civilian infrastructure damage worsening nationwide.

 

Key Points

Strikes on energy infrastructure causing blackouts, service disruption, and heightened humanitarian risk in winter.

✅ Missile and drone strikes cripple plants, substations, and lines

✅ Blackouts disrupt water, heating, hospitals, and critical services

✅ Emergency repairs, generators, and aid mitigate winter shortages

 

Ukraine's energy infrastructure remains a primary target in Russia's ongoing invasion, with a recent wave of missile strikes causing power outages in western regions and disrupting critical services across the country. These attacks have devastating humanitarian consequences, leaving millions of Ukrainians without heat, water, and electricity as winter approaches.


Systematic Targeting of Energy Infrastructure

Russia's strategy of deliberately targeting Ukraine's power grid marks a significant escalation, directly affecting the lives of civilians. Power plants, substations, and transmission lines have been hit with missiles and drones, with the latest strikes in late April causing blackouts in cities across Ukraine, including the capital, Kyiv, as the country fights to keep the lights on amid relentless bombardment.


Humanitarian Catastrophe Looms

The damage to Ukraine's electrical system hinders essential services like water supply, sewage treatment, and heating. Hospitals and other critical facilities struggle to operate without reliable power. With winter around the corner, the ongoing attacks threaten a humanitarian catastrophe even as authorities outline plans to keep the lights on this winter for vulnerable communities.


Ukrainian Resolve Remains Unbroken

Despite the devastation, Ukrainian engineers and workers race against time to repair damaged infrastructure and restore power as quickly as possible, while communities adopt new energy solutions to overcome blackouts to maintain essential services. The nation's energy workers have been hailed as heroes for their tireless efforts to keep the lights on amidst relentless attacks. Officials have urged civilians to reduce energy consumption whenever possible to alleviate strain on the fragile grid.


International Condemnation and Support

The systematic attacks on Ukraine's power grid have been widely condemned by the international community.  Western nations have accused Russia of war crimes, highlighting the deliberate targeting of civilian infrastructure. Aid organizations and countries are coordinating efforts to provide emergency power supplies, including generators and transformers, to help Ukraine mitigate the immediate crisis, even as the U.S. ended support for grid restoration in a recent policy shift.


Implications Beyond Ukraine

The humanitarian crisis unfolding in Ukraine due to power grid attacks carries implications far beyond its borders. The disruption of energy supplies could lead to further instability in neighbouring countries dependent on Ukraine's power exports, although officials say electricity reserves are sufficient to prevent scheduled outages if attacks subside. Additionally, a surge in Ukrainian refugees fleeing the deteriorating conditions could put a strain on resources within the European Union.


War Crimes Allegations

International human rights organizations are documenting evidence of Russia's deliberate attacks on Ukraine's civilian infrastructure. Human Rights Watch (HRW) has stated that Russia's targeting of power stations could violate the laws of war and amount to war crimes. This documentation will be crucial for holding Russia accountable for its actions in the future.


Uncertain Future for Ukraine's Power Supply

The long-term consequences of Russia's sustained attacks on Ukraine's power grid remain uncertain. While Ukrainian workers demonstrate incredible resilience, the sheer scale of repeated damage may eventually overwhelm their ability to keep pace with repairs, and, as winter looms over the battlefront, electricity is civilization for frontline communities. Rebuilding destroyed infrastructure could take years and cost billions, a daunting task for a nation already ravaged by war.

 

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Electricity users in Newfoundland have started paying for Muskrat Falls

Muskrat Falls rate mitigation offsets Newfoundland Power's rate stabilization decrease as NL Hydro begins cost recovery; Public Utilities Board approval enables collections while Labrador-Island Link nears commissioning, stabilizing electricity rates despite megaproject delays, overruns.

 

Key Points

Muskrat Falls rate mitigation is NL Hydro's cost recovery via power rates to stabilize bills as commissioning nears.

✅ Offsets 6.4% decrease with a 6.1% rate increase

✅ About 6% now funds NL Hydro's rate mitigation

✅ Collections begin as Labrador-Island Link nears commissioning

 

With their July electricity bill, Newfoundland Power customers have begun paying for Muskrat Falls, though a lump-sum credit was also announced to offset costs and bills haven't significantly increased — yet.

In a July newsletter, Newfoundland Power said electricity bills were set to decrease by 6.4 per cent as part of the annual rate stabilization adjustment, which reflects the cost of electricity generation.

Instead, that decrease has been offset by a 6.1 increase in electricity rates so Newfoundland and Labrador Hydro can begin recovering the cost of Muskrat Falls, with a $5.2-billion federal package also underpinning the project, the $13-billion hydroelectric megaproject that is billions over budget and years behind schedule.

That means for residential customers, electricity rates will decrease to 12.346 cents per kilowatt, though the basic customer charge will go up slightly from $15.81 to $15.83. According to an N.L. Hydro spokesperson, about six per cent of electricity bills will now go toward what it calls a "rate mitigation fund." 

N.L. Hydro claims victory in Muskrat Falls arbitration dispute with Astaldi
Software troubles blamed for $260M Muskrat Falls cost increase, with N.L. power rates stable for now
The spokesperson said N.L. Hydro is expecting the rate increase to result in $43 million this year, according to a recent financial update from the energy corporation — a tiny fraction of the project's cost. 

N.L. Hydro asked the Public Utilities Board to approve the rate increase, a process similar to Nova Scotia's recent 14% approval by its regulator, in May. In a letter, Energy, Industry and Technology Minister Andrew Parsons supported the increase, though he asked N.L. Hydro to keep electricity rates "as close to current levels as possible. 

Province modifies order in council
Muskrat Falls is not yet fully online — largely due to software problems with the Labrador-Island Link transmission line — and an order in council dictated that ratepayers on the island of Newfoundland would not begin paying for the project until the project was fully commissioned. 

The provincial government modified that order in council so N.L. Hydro can begin collecting costs associated with Muskrat Falls once the project is "nearing" commissioning.

In June, N.L. Hydro said the project was expected to finally be completed by the end of the year.

In an interview with CBC News, Progressive Conservative interim leader David Brazil said the decision to begin recovering the cost of Muskrat Falls from consumers should have been delayed.

"There was an opportunity here for people to get some reprieve when it came to their electricity bills and this administration chose not to do that, not to help the people while they're struggling," he said.

In a statement, Parsons said reducing the rate was not an option, and would have resulted in increased borrowing costs for Muskrat Falls.

"Reducing the rate for one year to have it increase significantly the following year is not consistent with rate mitigation and also places an increased financial burden on taxpayers one year from now," Parsons said.

Decision 'reasonable': Consumer advocate
Brazil said his party didn't know the payments from Muskrat Falls would start in July, and criticized the government for not being more transparent.

A person wearing a blue shirt and black blazer stands outside on a lawn.
N.L. consumer advocate Dennis Browne says it makes sense to begin recouping the cost of Muskrat Falls. (Garrett Barry/CBC)
Newfoundland and Labrador consumer advocate Dennis Browne said the decision to begin collecting costs from consumers was "reasonable."

"We're into a financial hole due to Muskrat Falls, and what has happened is in order to stabilize rates, we have gone into rate stabilization efforts," he said.

In February, the provincial and federal governments signed a complex agreement to shield ratepayers aimed at softening the worst of the financial impact from Muskrat Falls. Browne noted even with the agreement, the provincial government will have to pay hundreds of millions in order to stabilize electricity rates.

"Muskrat Falls would cost us $0.23 a kilowatt, and that is out of the range of affordability for most people, and that's why we're into rate mitigation," he said. "This was part of a rate mitigation effort, and I accepted it as part of that."

 

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