Duke criticized for drought protocol

By Knight Ridder Tribune


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Catawba Riverkeeper Donna Lisenby gives two reasons why the severe drought all but crippled the Catawba River basin in 2007.

The first, naturally, is a shortage of rainfall. The second, she said, is the system in place to prevent such problems did not work. "The Low Inflow Protocol didn't really work," said Lisenby as part of her public presentation "How Low Can We Go? Enduring the Drought of 2007-2008" at a recent CovekeepersÂ’ meeting at Red Fez Club in Steele Creek.

Duke Energy introduced the system, known as the Low Inflow Protocol, of checks and responses for water storage throughout the Catawba basin as part of its federal hydroelectric relicensing effort for 2008. The system was used voluntarily in 2007 by municipalities drawing Catawba water, increasing from a drought watch to mandatory- use restrictions by fall.

Now, looking back on the first trial for the LIP system, Lisenby says it needs to be reevaluated as dry weather looms in 2008.

"That minimum lake level for Lake Wylie does not work," Lisenby said. "Even if it did work, it was too little, too late."

The LIP system sets minimum lake levels for each of the 11 reservoirs along the Catawba, including Lake Wylie. As Lake Wylie dipped within two inches of its minimum level in the fall, the local boating economy and lake structures were damaged, Lisenby said. Access areas were closed and the impact on wildlife may not be fully known until the drought ends, she added.

Duke, however, considers the LIP model a success in that even record high temperatures in the summer and record low rainfall for several months could not push lakes below minimum levels, which are set based on the highest water intake.

"Clearly, the Low Inflow Protocol has worked and continues to be effective as water remains available for vital public safety and health needs," said Marilyn Lineberger, Duke spokeswoman.

Lisenby presented statistics showing seven basin water users actually increased overall water consumption in May through September 2007 compared to the same time in 2006. "We used more water in 2007 with mandatory restrictions on water use," she said.

Charlotte Mecklenburg Utilities showed an increase of more than 700 million gallons take out in May and June 2007 during the drought-watch stage.

During Stage 1 restrictions in July, use was up 141 million gallons compared to July 2006. By Stage 2 restrictions in August, water use was up 724 million gallons from August 2006.

By September 2007, which introduced Stage 3 mandatory restrictions, use increased 235 million gallons from the previous year.

Lisenby added factors including area growth could have contributed to the increases. Duke did not want to discuss data from other utilities. However, Lineberger said, by working with 24 water providers, water use in 2007 was lower than it would have been without the LIP system.

"By following the Low Inflow Protocol, individuals, businesses, cities and towns have conserved water and bought more time until normal rainfall patterns can return to our region," she said. Lisenby also said the LIP system does not provide enough in terms of limiting water use by the region's largest water user - Duke.

The 18 power plants along the Catawba use significantly more water than residential or commercial customers, with some plants requiring up to 30 gallons of cooling water to produce one kilowatt hour of electricity. Recent studies from Georgia show similar power plants requiring homes, on average, to use 27,000 gallons of water a month just in electricity production.

"Duke reduced its hydroelectric generation by more than 60 percent in order to save water during this period of drought," Lineberger said. "It's important to note that the basin supports power plants that generate vital electricity for a million or more customers."

Lisenby and Lineberger agree power is necessary, but Lisenby says more can be done to recycle water used to cool power plants. The two also agree that regardless of how well the LIP performs, the continuing drought is the biggest factor for low water levels.

"The biggest reason we dropped so low is the weather," Lisenby said. "We just didn't have the rainfall."

Duke will wait until the drought ends before deciding whether to make changes to the LIP system, which could require a federal application if changes are needed with its hydroelectric license.

"Once the drought is over, lessons learned will be reviewed and recommendations made to Duke Energy for future improvements in the interest of continuously improving the Low Inflow Protocol," Lineberger said.

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A New Electric Boat Club Launches in Seattle

Aurelia Boat Club delivers electric boat membership in Seattle, featuring zero-emission propulsion, quiet cruising, sustainable recreation, and a managed fleet with maintenance, insurance, moorage, and charging handled for members seeking hassle-free, eco-friendly boating.

 

Key Points

Aurelia Boat Club is a Seattle membership offering all-electric boats, with maintenance, insurance, and moorage included.

✅ Unlimited access to an all-electric fleet

✅ Maintenance, insurance, moorage, and charging included

✅ Quiet, zero-emission cruising on Seattle waters

 

Seattle's maritime scene has welcomed a new player: Aurelia Boat Club. Founded by former Pure Watercraft employees, Aurelia is poised to redefine electric boating in the city, where initiatives like Washington State Ferries hybrid-electric upgrade are underway. The club's inception follows the unexpected closure of Pure Watercraft, a Seattle-based startup that aimed to revolutionize the pleasure boating industry before its financial troubles led to its downfall.

From Pure Watercraft to Aurelia Boat Club

Pure Watercraft, established in 2011, garnered attention for its innovative electric propulsion systems designed to replace traditional gas-powered motors in boats, while efforts to build the first commercial electric speedboats also advanced. The company attracted significant investment, including a notable partnership with General Motors in 2021, which acquired a 25% stake in Pure Watercraft. Despite these efforts, Pure Watercraft faced financial difficulties and entered receivership in 2024, leading to the liquidation of its assets. 

Amidst this transition, Danylo Kurgan and Mrugesh Desai saw an opportunity to continue the vision of electric boating. Kurgan, formerly a financial analyst at Pure Watercraft and involved in the company's boat club operations, teamed up with Desai, a technology executive and startup investor. Together, they acquired key assets from Pure Watercraft's receivership, including electric outboard motors, pontoon boats, inflatable crafts, battery systems, spare parts, and digital infrastructure. 

Aurelia Boat Club's Offerings

Aurelia Boat Club aims to provide a sustainable and accessible alternative to traditional gas-powered boat clubs in Seattle. Members can enjoy unlimited access to a fleet of all-electric boats without the responsibilities of ownership. The club's boats are equipped with electric motors, offering a quiet and environmentally friendly boating experience, similar to how electric ships are clearing the air on the B.C. coast. Additionally, Aurelia handles maintenance, repairs, insurance, and moorage, allowing members to focus solely on enjoying their time on the water. 

The Future of Electric Boating in Seattle

Aurelia Boat Club's launch signifies a growing interest in sustainable boating practices in Seattle. The club's founders are committed to scaling the business and expanding their fleet to meet the increasing demand for eco-friendly recreational activities, as projects like battery-electric high-speed ferries indicate. By leveraging the assets and knowledge gained from Pure Watercraft, Aurelia aims to continue the legacy of innovation in the electric boating industry.

As the boating community becomes more environmentally conscious, initiatives like Aurelia Boat Club play a crucial role in promoting sustainable practices, and examples such as Harbour Air's electric aircraft highlight the momentum. The club's success could serve as a model for other cities, demonstrating that with the right vision and resources, the transition to electric boating is not only feasible but also desirable.

While the closure of Pure Watercraft marked the end of one chapter, it also paved the way for new ventures like Aurelia Boat Club to carry forward the mission of transforming the boating industry, with regional moves like the Kootenay Lake electric-ready ferry and international innovations such as Berlin electric flying ferry showing what's possible. With a strong foundation and a clear vision, Aurelia is set to make significant waves in Seattle's electric boating scene.

 

 

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California Gets $500M to Upgrade Power Grid

California Grid Modernization Funding will upgrade transmission and distribution, boost grid resilience, enable renewable energy integration, expand energy storage, and deploy smart grid controls statewide with over $500 million in federal infrastructure investment.

 

Key Points

Federal support to harden California's grid, integrate renewables, add storage, and deploy smart upgrades for reliability.

✅ Strengthens transmission and distribution for wildfire and heat resilience

✅ Integrates solar and wind with storage and advanced grid controls

✅ Deploys smart meters, DER management, and modern cybersecurity

 

California has recently been awarded over $500 million in federal funds to significantly improve and modernize its power grid. This substantial investment marks a pivotal step in addressing the state’s ongoing energy challenges, enhancing grid resilience, and supporting its ambitious climate goals. The funding, announced by federal and state officials, is set to bolster California’s efforts to upgrade its electrical infrastructure, integrate renewable energy sources, and ensure a more reliable and sustainable energy system for its residents.

California's power grid has faced numerous challenges in recent years, including extreme weather events, high energy demand, and an increasing reliance on renewable energy sources. The state's electrical infrastructure has struggled to keep pace with these demands, leading to concerns about reliability, efficiency, and the capacity to handle new energy technologies. The recent federal funding is a critical component of a broader strategy to address these issues and prepare the grid for future demands.

The $500 million in federal funds is part of a larger initiative to support energy infrastructure projects across the United States, including a Washington state grant that strengthens regional infrastructure. The investment aims to modernize aging grid systems, improve energy efficiency, and enhance the integration of renewable energy sources. For California, this funding represents a significant opportunity to address several key areas of concern in its power grid.

One of the primary objectives of the funding is to enhance the resilience of the power grid. California has experienced a series of extreme weather events, including wildfires and heatwaves, driven in part by climate change impacts across the U.S., which have put considerable strain on the electrical infrastructure. The new investment will support projects designed to strengthen the grid’s ability to withstand and recover from these events. This includes upgrading infrastructure to make it more robust and less susceptible to damage from natural disasters.

Another key focus of the funding is the integration of renewable energy sources. California is a leader in the adoption of solar and wind energy, and the state has set ambitious goals for increasing its use of clean energy. However, integrating these variable energy sources into the grid presents technical challenges, including ensuring a stable and reliable power supply. The federal funds will be used to develop and deploy advanced technologies that can better manage and store renewable energy, such as battery storage systems, improving the overall efficiency and effectiveness of the grid.

In addition to resilience and renewable integration, the funding will also support efforts to modernize grid infrastructure. This includes upgrading transmission and distribution systems, implementing smarter electricity infrastructure and smart grid technologies, and enhancing grid management and control systems. These improvements are essential for creating a more flexible and responsive power grid that can meet the evolving needs of California’s energy landscape.

The investment in grid modernization also aligns with California’s broader climate goals. The state has set targets to reduce greenhouse gas emissions and increase the use of clean energy sources as it navigates keeping the lights on during its energy transition. By improving the power grid and supporting the integration of renewable energy, California is making progress toward achieving these goals while also creating jobs and stimulating economic growth.

The allocation of federal funds comes at a crucial time for California. The state has faced significant challenges in recent years, including power outages, energy reliability issues, and increasing energy costs that make repairing California's grid especially complex today. The new funding is expected to address many of these concerns by supporting critical infrastructure improvements and ensuring that the state’s power grid can meet current and future demands.

Federal and state officials have expressed strong support for the funding and its potential impact. The investment is seen as a major step forward in creating a more resilient and sustainable energy system for California. It is also expected to serve as a model for other states facing similar challenges in modernizing their power grids and integrating renewable energy sources.

The federal funding is part of a broader push to address infrastructure needs across the country. The Biden administration has prioritized investment in energy infrastructure, including a $34 million DOE initiative supporting grid improvements, as part of its broader agenda to combat climate change and build a more sustainable economy. The funding for California’s power grid is a reflection of this commitment and an example of how federal resources can support state and local efforts to improve infrastructure and address pressing energy challenges.

In summary, California’s receipt of over $500 million in federal funds represents a significant investment in the state’s power grid. The funding will support efforts to enhance grid resilience, integrate renewable energy sources, and modernize infrastructure. As California continues to face challenges related to extreme weather, energy reliability, and climate goals, this investment will play a crucial role in building a more reliable, efficient, and sustainable energy system. The initiative also highlights the importance of federal support in addressing infrastructure needs and advancing environmental and economic goals.

 

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Court reinstates constitutional challenge to Ontario's hefty ‘global adjustment’ electricity charge

Ontario Global Adjustment Charge faces constitutional scrutiny as a regulatory charge vs tax; Court of Appeal revives case over electricity pricing, feed-in tariff contracts, IESO policy, and hydro rate impacts on consumers and industry.

 

Key Points

A provincial electricity fee funding generator contracts, now central to a court fight over tax versus regulatory charge.

✅ Funds gap between market price and contracted generator rates

✅ At issue: regulatory charge vs tax under constitutional law

✅ Linked to feed-in tariff, IESO policy, and hydro rate hikes

 

Ontario’s court of appeal has decided that a constitutional challenge of a steep provincial electricity charge should get its day in court, overturning a lower-court judgment that had dismissed the legal bid.

Hamilton, Ont.-based National Steel Car Ltd. launched the challenge in 2017, saying Ontario’s so-called global adjustment charge was unconstitutional because it is a tax — not a valid regulatory charge — that was not passed by the legislature.

The global adjustment funds the difference between the province’s hourly electricity price and the price guaranteed under contracts to power generators. It is “the component that covers the cost of building new electricity infrastructure in the province, maintaining existing resources, as well as providing conservation and demand management programs,” the province’s Independent Electricity System Operator says.

However, the global adjustment now makes up most of the commodity portion of a household electricity bill, and its costs have ballooned, as regulators elsewhere consider a proposed 14% rate hike in Nova Scotia.

Ontario’s auditor general said in 2015 that global adjustment fees had increased from $650 million in 2006 to more than $7 billion in 2014. She added that consumers would pay $133 billion in global adjustment fees from 2015 to 2032, after having already paid $37 billion from 2006 to 2014.

National Steel Car, which manufactures steel rail cars and faces high electricity rates that hurt Ontario factories, said its global adjustment costs went from $207,260 in 2008 to almost $3.4 million in 2016, according to an Ontario Court of Appeal decision released on Wednesday.

The company claimed the global adjustment was a tax because one of its components funds electricity procurement contracts under a “feed-in tariff” program, or FIT, which National Steel Car called “the main culprit behind the dramatic price increases for electricity,” the decision said.

Ontario’s auditor general said the FIT program “paid excessive prices to renewable energy generators.” The program has been ended, but contracts awarded under it remain in place.


National Steel Car claimed the FIT program “was actually designed to accomplish social goals unrelated to the generation of electricity,” such as helping rural and indigenous communities, and was therefore a tax trying to help with policy goals.

“The appellant submits that the Policy Goals can be achieved by Ontario in several ways, just not through the electricity pricing formula,” the decision said.

National Steel Car also argued the global adjustment violated a provincial law that requires the government to hold a referendum for new taxes.

“The appellant’s principal claim is that the Global Adjustment was a ‘colourable attempt to disguise a tax as a regulatory charge with the purpose of funding the costs of the Policy Goals,’” the decision said. “The appellant pressed this argument before the motion judge and before this court. The motion judge did not directly or adequately address it.”

The Ontario government applied to have the challenge thrown out for having “no reasonable cause of action,” and a Superior Court judge did so in 2018, saying the global adjustment is not a tax.

National Steel Car appealed the decision, and the decision published Wednesday allowed the appeal, set aside the lower-court judgment, and will send the case back to Superior Court, where it could get a full hearing.

“The appellant’s claim is sufficiently plausible on the evidentiary record it put forward that the applications should not have been dismissed on a pleadings motion before the development of a full record,” wrote Justice Peter D. Lauwers. “It is not plain, obvious and beyond doubt that the Global Adjustment, and particularly the challenged component, is properly characterized as a valid regulatory charge and not as an impermissible tax.”

Jerome Morse of Morse Shannon LLP, one of National Steel Car’s lawyers, said the Ontario government would now have 60 days to decide whether to seek permission to appeal to the Supreme Court of Canada.

“What the court has basically said is, ‘this is a plausible argument, here are the reasons why it’s plausible, there was no answer to this,’” Morse told the Financial Post.

Ontario and the IESO had supported the lower-court decision, but there has been a change in government since the challenge was first launched, with Progressive Conservative Premier Doug Ford replacing the Liberals and Kathleen Wynne in power. The Liberals had launched a plan aimed at addressing hydro costs before losing in a 2018 election, the main thrust of which had been to refinance global adjustment costs.

Wednesday’s decision states that “Ontario’s counsel advised the court that the current Ontario government ‘does not agree with the former government’s electricity procurement policy (since-repealed).’

“The government’s view is that: ‘The solution does not lie with the courts, but instead in the political arena with political actors,’” it adds.

A spokesperson for Ontario Energy Minister Greg Rickford said in an email that they are reviewing the decision but “as this matter is in the appeal period, it would be inappropriate to comment.” 

Ontario had also requested to stay the matter so a regulator, the Ontario Energy Board, could weigh in, while the Nova Scotia regulator approved a 14% hike in a separate case.

“However, Ontario only sought this relief from the motion judge in the alternative, and given the motion judge’s ultimate decision, she did not rule on the stay,” Thursday’s decision said. “It would be premature for this court to rule on the issue, although it seems incongruous for Ontario to argue that the Superior Court is the convenient forum in which to seek to dismiss the applications as meritless, but that it is not the convenient forum for assessing the merits of the applications.”

National Steel Car’s challenge bears a resemblance to the constitutional challenges launched by Ontario and other provinces over the federal government’s carbon tax, but Justice Lauwers wrote “that the federal legislative scheme under consideration in those cases is distinctly different from the legislation at issue in this appeal.”

“Nothing in those decisions impacts this appeal,” the judge added.
 

 

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Restoring power to Florida will take 'weeks, not days' in some areas

Florida Hurricane Irma Power Outages strain the grid as utilities plan rebuilds; FPL and Duke Energy deploy crews to restore transmission lines, substations, and service amid flooding, storm surge, and widespread disruptions statewide.

 

Key Points

Large-scale post-storm power losses in Florida requiring grid rebuilds, thousands of crews, and phased restoration.

✅ Utilities prioritize plants, transmission, substations, then critical facilities

✅ 50,000-60,000 workers mobilized; bucket trucks wait for safe winds

✅ Remote rerouting and hardening aid faster restoration amid flooding

 

Parts of Florida could be without electricity for more than a week, as damage from Hurricane Irma will require a complete rebuild of portions of the electricity grid, utility executives said on Monday.

Irma has knocked out power to 6.5 million Florida electricity customers, or nearly two-thirds of the state, since making landfall this weekend. In major areas such as Miami-Dade, 74 percent of the county was without power, according to Florida's division of emergency management.

Getting that power back online may require the help of 50,000 to 60,000 workers from all over the United States and Canadian power crews as well, according to Southern Company CEO and Chairman Thomas Fanning. He is also co-chair of the Electricity Subsector Coordinating Council, which coordinates the utility industry and government response to disasters and cyberthreats.

While it is not uncommon for severe storms to down power lines and damage utility poles, Irma's heavy winds and rain batted some of the state's infrastructure to the ground, Fanning said.

"'Restore' may not capture the full sense of where we are. For the very hard impacted areas, I think you're in a 'rebuild' area," he told CNBC's "Squawk Box."

"That's a big deal. People need to understand this is going to take perhaps weeks, not days, in some areas," Fanning said.

Parts of northern Florida, including Jacksonville, experienced heavy flooding, which will temporarily prevent crews from accessing some areas.

Duke Energy, which serves 1.8 million customers in parts of central and northwestern Florida, is trying to restore service to 1.2 million residences and businesses.

Florida Power & Light Company, which provides power to an estimated 4.9 million accounts across the state, had about 3.5 million customers without electricity as of Monday afternoon, said Rob Gould, vice president and chief communications officer at FPL.

The initial damage assessments suggest power can be restored to parts of the state's east coast in just days, but some of the west coast will require rebuilding that could stretch out for weeks, Gould told CNBC's "Power Lunch."

"This is not a typical restoration that you're going to see. We actually for the first time in our company history have our entire 27,000-square-mile, 35-county territory under assault by Irma," he said.

FPL said it would first repair any damage to power plants, transmission lines and substations as part of its massive response to Irma, then prioritize critical facilities such as hospitals and water treatment plants. The electricity company would then turn its attention to areas that are home to supermarkets, gas stations and other community services.

Florida utilities invested billions into their systems after devastating hurricane seasons in 2004 and 2005 in order to make them more resilient and easier to restore after a storm. Irma, which ranked among the most powerful storms in the Atlantic, has nevertheless tested those systems.

The upgrades have allowed FPL to automatically reroute power and address about 1.5 million outages, Gould said. The company strategically placed 19,500 restoration workers before the storm hit, but it cannot use bucket trucks to fix power lines until winds die down, he said.

Some parts of Florida's distribution system — the lines that deliver electricity from power plants to businesses and residences — run underground. However, the state's long coastline and the associated danger of storm surge and seawater incursion make it impractical to run lines beneath the surface in some areas.

Duke Energy has equipped 28 percent of its system with smart grid technology to reroute power remotely, according to Harry Sideris, Duke's state president for Florida. He said the company would continue to build out that capability in the future.

Duke deployed more than 9,000 linesmen and support crew members to Irma-struck areas, but cannot yet say how long some customers will be without power.

Separately, Gulf Power crews reported restoring service to more than 32,000 customers.

"At this time we do not know the exact restoration times. However, we're looking at a week or longer from the first look at the widespread damage that we had," Sideris told CNBC's "Closing Bell."

FPL said on Monday it was doing final checks before bringing back nuclear reactors that were powered down as Hurricane Irma hit Florida.

"We are in the process now of doing final checks on a few of them; we will be bringing those up," FPL President and CEO Eric Silagy told reporters.

 

 

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Egypt's renewable energy to reach 6.6 GW by year-end

Egypt Renewable Energy Expansion targets solar and wind power projects to diversify the energy mix, adding 6.6 GW by 2020 and reaching 8,200 MW, with UK cooperation, grid upgrades, and investment in the electricity sector.

 

Key Points

A plan to boost solar and wind by 6.6 GW by 2020, reaching 8,200 MW and diversifying Egypt's energy mix.

✅ Adds 6.6 GW by 2020; targets 8,200 MW total capacity

✅ Focus on solar, wind, grid upgrades, and investment

✅ UK-Egypt cooperation in electricity sector projects

 

Egypt is planning to expand into renewable energy projects in a bid to increase its contribution to the energy mix, in step with global records being set in renewables, and amid Saudi Arabia’s 60 GW drive in the region, the country’s minister of electricity and renewable energy Mohamed Shaker said.

Renewable power is expected to add 6.6 gigawatts (GW) by the end of 2020, a scale comparable to Saudi wind expansion underway, with plans to reach 8,200 megawatts (MW) after the completion of the renewable energy projects currently under consideration, reflecting gains seen since IRENA’s 2016 record year for renewables, Shaker added in a statement on Tuesday, even as regional challenges persist.

This came during the minister’s video-conference meeting with the British ambassador to Egypt Geoffrey Adams to explore the potential means for cooperation between the two countries in the electricity sector, including lessons from the UK project backlog now affecting investments and from Ireland’s green-electricity goals being pursued.

 

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Closure of 3 Southern California power plants likely to be postponed

California Gas Plant Extensions keep Ormond Beach, AES Alamitos, and Huntington Beach on standby for grid reliability during heat waves, as regulators balance renewables, battery storage, and power, pending State Water Resources Control Board approval.

 

Key Points

State plan extending three coastal gas plants to 2026, adding capacity as California expands renewables and storage.

✅ Extends Ormond Beach, AES Alamitos, AES Huntington Beach

✅ Mitigates blackout risk during extreme heat and peak demand

✅ Pending State Water Resources Control Board approval

 

Temperatures in many California cities are cooling down this week, but a debate is simmering on how to generate enough electricity to power the state through extreme weather events while transitioning away from a reliance on fossil fuels as clean energy progress indicates statewide.

The California Energy Commission voted Wednesday to extend the life of three gas power plants along the state’s southern coast through 2026, even as natural-gas electricity records persist nationwide, postponing a shutoff deadline previously set for the end of this year. The vote would keep the decades-old facilities _ Ormond Beach Generating Station, AES Alamitos and AES Huntington Beach — open so they can run during emergencies.

The state is at a greater risk of blackouts during major events when many Californians simultaneously crank up their air conditioning, such as a blistering heat wave, illustrated by widespread utility shutoffs in recent years.

“We need to move faster in incorporating renewable energy. We need to move faster at incorporating battery storage. We need to build out chargers faster,” commissioner Patricia Monahan said amid an ongoing debate over the classification of nuclear power in California. “We’re working with all the energy institutions to do that, but we are not there yet.”

The plan, put together by the state’s Department of Water Resources, still needs final approval from the State Water Resources Control Board, which may vote on the issue next week. Democratic Gov. Gavin Newsom signed legislation last year creating an energy reserve the state could use as a last resort if there is likely to be an energy shortage, a challenge mirrored by Ontario electricity shortfall concerns elsewhere. The law allowed the Department of Water Resources to fund or secure power sources in those instances, after PG&E shutdown reasons drew attention to grid vulnerabilities.

The commission acknowledged it was a difficult decision. Environmentalists say the state needs to transition to more short- and long-term solutions that will help it move away from fossil fuels and to rely more on renewable energy sources like solar and wind, similar to Ontario's clean power push in recent years. They’re also concerned about the health impacts associated with pollution from gas plants.

 

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