UBS raises its price forecasts for coal

By Marketwire


CSA Z462 Arc Flash Training - Electrical Safety Essentials

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 6 hours Instructor-led
  • Group Training Available
Regular Price:
$249
Coupon Price:
$199
Reserve Your Seat Today
UBS raised its price forecasts for coal used in power plants and steel mills in 2008 and 2009 because of expanding Asian demand and constrained supply.

Coking coal used to make steel will average $145 a metric ton next year, compared with $130 forecast on Oct. 8, the bank said in a recent report. The 2009 forecast was raised to $135, from $115. Thermal coal will average $90 a ton next year and $105 in 2009, up from previous predictions of $70 and $75.

UBS, based out of Zurich, Switzerland, is one of the largest global asset managers and the market leader in retail and commercial banking.

"Long-term growth trends in Asia, particularly China and India, will keep coal suppliers struggling to meet demand," the analysts, led by Shneur Gershuni, said in the report.

"Non-traditional sources of supply, including North America, are increasingly being sought by anxious Asian consumers."

Thermal coal has jumped to a record this year because of port and rail bottlenecks and after China increased imports of the fuel.

Global steel production will exceed one billion tons for a fourth consecutive year in 2007, the International Iron & Steel Institute predicted this month.

China increased coal imports 44 percent to 42.34 million tons in the first 10 months of this year, Chinese customs said Nov. 15. Exports dropped 17.6 percent to 43.26 million tons in the same period.

Thermal coal prices under annual supply contracts may rise to $90 a ton in the fiscal year starting April 1, 2008, from $56 this year, Goldman Sachs JBWere said in their report. The firm previously estimated prices would rise to $75 next year.

Credit Suisse raised its 2008 price forecast for thermal coal by $10 a ton to $80 a ton last week, and JPMorgan Chase increased its estimate in 2008 to $70 from $60, in an Oct. 25 report.

The United States "is likely to be a marginal supplier for the seaborne thermal coal market" as inadequate transportation and loading facilities limit shipments from Australia and South Africa while a prolonged wet season curbed Indonesian production growth, the report said.

Rio Tinto said that it had declared force majeure and may not meet orders to export coal from its mines in Queensland, Australia, because of congestion at the Dalrymple Bay Port.

Force majeure is a legal clause allowing a company to cancel contractual obligations due to circumstances beyond its control.

The clause will apply to sales in the first quarter of 2008.

"At seaborne prices north of $90 a ton, the shippers in the western United States would be incentivized to provide thermal coal to the hungry Asian market," UBS said in the report.

The United States produced 945 million tons of coal in 2006, second only to China, according to data from the International Energy Agency.

Related News

Alberta Electricity market needs competition

Alberta Electricity Market faces energy-only vs capacity debate as transmission, distribution, and administration fees surge; rural rates rise amid a regulated duopoly of investor-owned utilities, prompting calls for competition, innovation, and lower bills.

 

Key Points

Alberta's electricity market is an energy-only system with rising delivery charges and limited rural competition.

✅ Energy-only design; capacity market scrapped

✅ Delivery charges outpace energy on monthly bills

✅ Rural duopoly limits competition and raises rates

 

Last week, Alberta’s new Energy Minister Sonya Savage announced the government, through its new electricity rules, would be scrapping plans to shift Alberta’s electricity to a capacity market and would instead be “restoring certainty in the electricity system.”


The proposed transition from energy only to a capacity market is a contentious subject as a market reshuffle unfolds across the province that many Albertans probably don’t know much about. Our electricity market is not a particularly glamorous subject. It’s complicated and confusing and what matters most to ordinary Albertans is how it affects their monthly bills.


What they may not realize is that the cost of their actual electricity used is often just a small fraction of their bill amid rising electricity prices across the province. The majority on an average electricity bill is actually the cost of delivering that electricity from the generator to your house. Charges for transmission, distribution and franchise and administration fees are quickly pushing many Alberta households to the limit with soaring bills.


According to data from Alberta’s Utilities Consumer Advocate (UCA), and alongside policy changes, in 2004 the average monthly transmission costs for residential regulated-rate customers was below $2. In 2018 that cost was averaging nearly $27 a month. The increase is equally dramatic in distribution rates which have more than doubled across the province and range wildly, averaging from as low as $10 a month in 2004 to over $80 a month for some residential regulated-rate customers in 2018.


Where you live determines who delivers your electricity. In Alberta’s biggest cities and a handful of others the distribution systems are municipally owned and operated. Outside those select municipalities most of Alberta’s electricity is delivered by two private companies which operate as a regulated duopoly. In fact, two investor-owned utilities deliver power to over 95 per cent of rural Alberta and they continue to increase their share by purchasing the few rural electricity co-ops that remained their only competition in the market. The cost of buying out their competition is then passed on to the customers, driving rates even higher.


As the CEO of Alberta’s largest remaining electricity co-op, I know very well that as the price of materials, equipment and skilled labour increase, the cost of operating follows. If it costs more to build and maintain an electricity distribution system there will inevitably be a cost increase passed on to the consumer. The question Albertans should be asking is how much is too much and where is all that money going with these private- investor-owned utilities, as the sector faces profound change under provincial leadership?


The reforms to Alberta’s electricity system brought in by Premier Klein in the late 1900s and early 2000s contributed to a surge in investment in the sector and led to an explosion of competition in both electricity generation and retail. 


More players entered the field which put downward pressure on electricity rates, encouraged innovation and gave consumers a competitive choice, even as a Calgary electricity retailer urged the government to scrap the overhaul. But the legislation and regulations that govern rural electricity distribution in Alberta continue to facilitate and even encourage the concentration of ownership among two players which is certainly not in the interests of rural Albertans.


It is also not in the spirit of the United Conservative Party platform commitment to a “market-based” system. A market-based system suggests more competition. Instead, what we have is something approaching a monopoly for many Albertans. The UCP promised a review of the transition to a capacity market that would determine which market would be best for Alberta, and through proposed electricity market changes has decided that we will remain an energy-only market.
Consumers in rural Alberta need electricity to produce the goods that power our biggest industries. Instead of regulating and approving continued rate increases from private multinational corporations, we need to drive competition and innovation that can push rates down and encourage growth and investment in rural-based industries and communities.

 

Related News

View more

Longer, more frequent outages afflict the U.S. power grid as states fail to prepare for climate change

Power Grid Climate Resilience demands storm hardening, underground power lines, microgrids, batteries, and renewable energy as regulators and utilities confront climate change, sea level rise, and extreme weather to reduce outages and protect vulnerable communities.

 

Key Points

It is the grid capacity to resist and recover from climate hazards using buried lines, microgrids, and batteries.

✅ Underground lines reduce wind outages and wildfire ignition risk.

✅ Microgrids with solar and batteries sustain critical services.

✅ Regulators balance cost, resilience, equity, and reliability.

 

Every time a storm lashes the Carolina coast, the power lines on Tonye Gray’s street go down, cutting her lights and air conditioning. After Hurricane Florence in 2018, Gray went three days with no way to refrigerate medicine for her multiple sclerosis or pump the floodwater out of her basement.

What you need to know about the U.N. climate summit — and why it matters
“Florence was hell,” said Gray, 61, a marketing account manager and Wilmington native who finds herself increasingly frustrated by the city’s vulnerability.

“We’ve had storms long enough in Wilmington and this particular area that all power lines should have been underground by now. We know we’re going to get hit.”

Across the nation, severe weather fueled by climate change is pushing aging electrical systems past their limits, often with deadly results. Last year, amid increasing nationwide blackouts, the average American home endured more than eight hours without power, according to the U.S. Energy Information Administration — more than double the outage time five years ago.

This year alone, a wave of abnormally severe winter storms caused a disastrous power failure in Texas, leaving millions of homes in the dark, sometimes for days, and at least 200 dead. Power outages caused by Hurricane Ida contributed to at least 14 deaths in Louisiana, as some of the poorest parts of the state suffered through weeks of 90-degree heat without air conditioning.

As storms grow fiercer and more frequent, environmental groups are pushing states to completely reimagine the electrical grid, incorporating more grid-scale batteries, renewable energy sources and localized systems known as “microgrids,” which they say could reduce the incidence of wide-scale outages. Utility companies have proposed their own storm-proofing measures, including burying power lines underground.

But state regulators largely have rejected these ideas, citing pressure to keep energy rates affordable. Of $15.7 billion in grid improvements under consideration last year, regulators approved only $3.4 billion, according to a national survey by the NC Clean Energy Technology Center — about one-fifth, highlighting persistent vulnerabilities in the grid nationwide.

After a weather disaster, “everybody’s standing around saying, ‘Why didn’t you spend more to keep the lights on?’ ” Ted Thomas, chairman of the Arkansas Public Service Commission, said in an interview with The Washington Post. “But when you try to spend more when the system is working, it’s a tough sell.”

A major impediment is the failure by state regulators and the utility industry to consider the consequences of a more volatile climate — and to come up with better tools to prepare for it. For example, a Berkeley Lab study last year of outages caused by major weather events in six states found that neither state officials nor utility executives attempted to calculate the social and economic costs of longer and more frequent outages, such as food spoilage, business closures, supply chain disruptions and medical problems.

“There is no question that climatic changes are happening that directly affect the operation of the power grid,” said Justin Gundlach, a senior attorney at the Institute for Policy Integrity, a think tank at New York University Law School. “What you still haven’t seen … is a [state] commission saying: 'Isn’t climate the through line in all of this? Let’s examine it in an open-ended way. Let’s figure out where the information takes us and make some decisions.’ ”

In interviews, several state commissioners acknowledged that failure.

“Our electric grid was not built to handle the storms that are coming this next century,” said Tremaine L. Phillips, a commissioner on the Michigan Public Service Commission, which in August held an emergency meeting to discuss the problem of power outages. “We need to come up with a broader set of metrics in order to better understand the success of future improvements.”

Five disasters in four years
The need is especially urgent in North Carolina, where experts warn Atlantic grids and coastlines need a rethink as the state has declared a federal disaster from a hurricane or tropical storm five times in the past four years. Among them was Hurricane Florence, which brought torrential rain, catastrophic flooding and the state’s worst outage in over a decade in September 2018.

More than 1 million residents were left disconnected from refrigerators, air conditioners, ventilators and other essential machines, some for up to two weeks. Elderly residents dependent on oxygen were evacuated from nursing homes. Relief teams flew medical supplies to hospitals cut off by flooded roads. Desperate people facing closed stores and rotting food looted a Wilmington Family Dollar.

“I have PTSD from Hurricane Florence, not because of the actual storm but the aftermath,” said Evelyn Bryant, a community organizer who took part in the Wilmington response.

The storm reignited debate over a $13 billion proposal by Duke Energy, one of the largest power companies in the nation, to reinforce the state’s power grid. A few months earlier, the state had rejected Duke’s request for full repayment of those costs, determining that protecting the grid against weather is a normal part of doing business and not eligible for the type of reimbursement the company had sought.

After Florence, Duke offered a smaller, $2.5 billion plan, along with the argument that severe weather events are one of seven “megatrends” (including cyberthreats and population growth) that require greater investment, according to a PowerPoint presentation included in testimony to the state. The company owns the two largest utilities in North Carolina, Duke Energy Carolinas and Duke Energy Progress.

Vote Solar, a nonprofit climate advocacy group, objected to Duke’s plan, saying the utility had failed to study the risks of climate impacts. Duke’s flood maps, for example, had not been updated to reflect the latest projections for sea level rise, they said. In testimony, Vote Solar claimed Duke was using environmental trends to justify investments “it had already decided to pursue.”

The United States is one of the few countries where regulated utilities are usually guaranteed a rate of return on capital investments, even as studies show the U.S. experiences more blackouts than much of the developed world. That business model incentivizes spending regardless of how well it solves problems for customers and inspires skepticism. Ric O’Connell, executive director of GridLab, a nonprofit group that assists state and regional policymakers on electrical grid issues, said utilities in many states “are waving their hands and saying hurricanes” to justify spending that would do little to improve climate resilience.

In North Carolina, hurricanes convinced Republicans that climate change is real

Duke Energy spokesman Jeff Brooks acknowledged that the company had not conducted a climate risk study but pointed out that this type of analysis is still relatively new for the industry. He said Duke’s grid improvement plan “inherently was designed to think about future needs,” including reinforced substations with walls that rise several feet above the previous high watermark for flooding, and partly relied on federal flood maps to determine which stations are at most risk.

Brooks said Duke is not using weather events to justify routine projects, noting that the company had spent more than a year meeting with community stakeholders and using their feedback to make significant changes to its grid improvement plan.

This year, the North Carolina Utilities Commission finally approved a set of grid improvements that will cost customers $1.2 billion. But the commission reserved the right to deny Duke reimbursement of those costs if it cannot prove they are prudent and reasonable. The commission’s general counsel, Sam Watson, declined to discuss the decision, saying the commission can comment on specific cases only in public orders.

The utility is now burying power lines in “several neighborhoods across the state” that are most vulnerable to wide-scale outages, Brooks said. It is also fitting aboveground power lines with “self-healing” technology, a network of sensors that diverts electricity away from equipment failures to minimize the number of customers affected by an outage.

As part of a settlement with Vote Solar, Duke Energy last year agreed to work with state officials and local leaders to further evaluate the potential impacts of climate change, a process that Brooks said is expected to take two to three years.

High costs create hurdles
The debate in North Carolina is being echoed in states across the nation, where burying power lines has emerged as one of the most common proposals for insulating the grid from high winds, fires and flooding. But opponents have balked at the cost, which can run in the millions of dollars per mile.

In California, for example, Pacific Gas & Electric wants to bury 10,000 miles of power lines, both to make the grid more resilient and to reduce the risk of sparking wildfires. Its power equipment has contributed to multiple deadly wildfires in the past decade, including the 2018 Camp Fire that killed at least 85 people.

PG&E’s proposal has drawn scorn from critics, including San Jose Mayor Sam Liccardo, who say it would be too slow and expensive. But Patricia Poppe, the company’s CEO, told reporters that doing nothing would cost California even more in lost lives and property while struggling to keep the lights on during wildfires. The plan has yet to be submitted to the state, but Terrie Prosper, a spokeswoman for the California Public Utilities Commission, said the commission has supported underground lines as a wildfire mitigation strategy.

Another oft-floated solution is microgrids, small electrical systems that provide power to a single neighborhood, university or medical center. Most of the time, they are connected to a larger utility system. But in the event of an outage, microgrids can operate on their own, with the aid of solar energy stored in batteries.

In Florida, regulators recently approved a four-year microgrid pilot project, but the technology remains expensive and unproven. In Maryland, regulators in 2016 rejected a plan to spend about $16 million for two microgrids in Baltimore, in part because the local utility made no attempt to quantify “the tangible benefits to its customer base.”

Amid shut-off woes, a beacon of energy

In Texas, where officials have largely abandoned state regulation in favor of the free market, the results have been no more encouraging. Without requirements, as exist elsewhere, for building extra capacity for times of high demand or stress, the state was ill-equipped to handle an abnormal deep freeze in February that knocked out power to 4 million customers for days.

Since then, Berkshire Hathaway Energy and Starwood Energy Group each proposed spending $8 billion to build new power plants to provide backup capacity, with guaranteed returns on the investment of 9 percent, but the Texas legislature has not acted on either plan.

New York is one of the few states where regulators have assessed the risks of climate change and pushed utilities to invest in solutions. After 800,000 New Yorkers lost power for 10 days in 2012 in the wake of Hurricane Sandy, state regulators ordered utility giant Con Edison to evaluate the state’s vulnerability to weather events.

The resulting report, which estimated climate risks could cost the company as much as $5.2 billion by 2050, gave ConEd data to inform its investments in storm hardening measures, including new storm walls and submersible equipment in areas at risk of flooding.

Meanwhile, the New York Public Service Commission has aggressively enforced requirements that utility companies keep the lights on during big storms, fining utility providers nearly $190 million for violations including inadequate staffing during Tropical Storm Isaias in 2020.

“At the end of the day, we do not want New Yorkers to be at the mercy of outdated infrastructure,” said Rory M. Christian, who last month was appointed chair of the New York commission.

The price of inaction
In North Carolina, as Duke Energy slowly works to harden the grid, some are pursuing other means of fostering climate-resilient communities.

Beth Schrader, the recovery and resilience director for New Hanover County, which includes Wilmington, said some of the people who went the longest without power after Florence had no vehicles, no access to nearby grocery stores and no means of getting to relief centers set up around the city.

For example, Quanesha Mullins, a 37-year-old mother of three, went eight days without power in her housing project on Wilmington’s east side. Her family got by on food from the Red Cross and walked a mile to charge their phones at McDonald’s. With no air conditioning, they slept with the windows open in a neighborhood with a history of violent crime.

Schrader is working with researchers at the University of North Carolina in Charlotte to estimate the cost of helping people like Mullins. The researchers estimate that it would have cost about $572,000 to provide shelter, meals and emergency food stamp benefits to 100 families for two weeks, said Robert Cox, an engineering professor who researches power systems at UNC-Charlotte.

Such calculations could help spur local governments to do more to help vulnerable communities, for example by providing “resilience outposts” with backup power generators, heating or cooling rooms, Internet access and other resources, Schrader said. But they also are intended to show the costs of failing to shore up the grid.

“The regulators need to be moved along,” Cox said.

In the meantime, Tonye Gray finds herself worrying about what happens when the next storm hits. While Duke Energy says it is burying power lines in the most outage-prone areas, she has yet to see its yellow-vested crews turn up in her neighborhood.

“We feel,” she said, “that we’re at the end of the line.”

 

Related News

View more

Nearly 600 Hong Kong families still without electricity after power supply cut by Typhoon Mangkhut

Hong Kong Typhoon Mangkhut Power Outages strain households with blackouts, electricity disruption, and humid heat, impacting Tin Ping Estate in Sheung Shui and outlying islands; contractor-led restoration faces fines for delays and infrastructure repairs.

 

Key Points

They are blackout events after Typhoon Mangkhut, bringing heat stress, food spoilage, and delayed power restoration.

✅ 16 floors in Tin Ping Estate lost power after meter room blast.

✅ Contractor faces HK$100,000 daily fines for late restoration.

✅ Kat O and Ap Chau families remain off-grid in humid heat.

 

Nearly 600 Hong Kong families are still sweltering under the summer heat and facing dark nights without electricity after Typhoon Mangkhut cut off power supply to areas, echoing mass power outages seen elsewhere.

At Sheung Shui’s Tin Ping Estate in the New Territories, 384 families were still without power, a situation similar to the LA-area blackout that left many without service. They were told on Tuesday that a contractor would rectify the situation by Friday, or be fined HK$100,000 for each day of delay.

In remote areas such as outlying islets Kat O and Ap Chau, there were some 200 families still without electricity, similar to Tennessee storm outages affecting rural communities.

The power outage at Tin Ping Estate affected 16 floors – from the 11th to 26th – in Tin Cheung House after a blast from the meter room on the 15th floor was heard at about 5pm on Sunday, and authorities urged residents to follow storm electrical safety tips during repairs.

“I was sitting on the sofa when I heard a loud bang,” said Lee Sau-king, 61, whose flat was next to the meter room. “I was so scared that my hands kept trembling.”

While the block’s common areas and lifts were not affected, flats on the 16 floors encountered blackouts.

As her fridge was out of power, Lee had to throw away all the food she had stocked up for the typhoon. With the freezer not functioning, her stored dried seafood became soaked and she had to dry them outside the window when the storm passed.

Daily maximum temperatures rose back to 30 degrees Celsius after the typhoon, and nights became unbearably humid, as utilities worldwide pursue utility climate adaptation to maintain reliability. “It’s too hot here. I can’t sleep at all,” Lee said.

 

Related News

View more

Clorox accelerates goal of achieving 100% renewable electricity in the U.S. and Canada to 2021

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

 

Key Points

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

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

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

✅ Cuts Scope 2 emissions via grid-delivered virtual PPA

 

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

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

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

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

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

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

 

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

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

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

 

Related News

View more

Biggest in Canada: Bruce Power doubles PPE donation

Bruce Power PPE Donation supports Canada COVID-19 response, supplying 1.2 million masks, gloves, and gowns to Ontario hospitals, long-term care, and first responders, plus face shields, hand sanitizer, and funding for testing and food banks.

 

Key Points

Bruce Power PPE Donation is a broad COVID-19 aid delivering PPE, supplies, and funding across Ontario.

✅ 1.2 million masks, gloves, gowns to Ontario care providers

✅ 3-D printed face shields and 50,000 bottles of sanitizer

✅ Funding testing research and supporting regional food banks

 

The world’s largest nuclear plant, which recently marked an operating record during sustained operations, just made Canada’s largest donation of personal protective equipment (PPE).

Bruce Power is doubling its initial donation of 600,000 masks, gloves and gowns for front-line health workers, to 1.2 million pieces of PPE.

The company, which operates the Bruce Nuclear station near Kincardine, Ont., where a major reactor refurbishment is underway, plans to have the equipment in the hands of hospitals, long-term care homes and first responders by the end of April.

It’s not the only thing Bruce Power is doing to help out Ontario during the COVID-19 pandemic:

 Bruce Power has donated $300,000 to 37 food banks in Midwestern Ontario, highlighting the broader economic benefits of Canadian nuclear projects for communities.

  •  They’re also working with NPX in Kincardine to make face shields with 3-D printers, leveraging local manufacturing contracts to accelerate production.
  •  They’re teaming up with the Power Worker’s Union to fund testing research in Toronto.
  •  They’re working with Three Sheets Brewing and Junction 56 Distillery to distribute 50,000 bottles of hand sanitizer to those that need it.

And that’s all on top of what they’ve been doing for years, producing Cobalt-60, a medical isotope to sterilize medical equipment, and, after a recent output upgrade at the site, producing about 30 per cent of Ontario’s electricity as the province advances the Pickering B refurbishment to bolster grid reliability.

Bruce Power has over 4,000 employees working out of their nuclear plant, on the shores of Lake Huron, as it explores the proposed Bruce C project for potential future capacity.

 

Related News

View more

Hydro One stock has too much political risk to recommend, Industrial Alliance says

Hydro One Avista merger faces regulatory scrutiny in Washington, Oregon, and Idaho, as political risk outweighs defensive utilities fundamentals like stable cash flow, rate base growth, EPS outlook, and a near 5% dividend yield.

 

Key Points

A planned Hydro One-Avista acquisition awaiting key state approvals amid elevated political and regulatory risk.

✅ Hold rating, $24 price target, 28.1% implied return

✅ EPS forecast: $1.27 in 2018; $1.38 in 2019

✅ Defensive utility: stable cash flow, 4-6% rate base growth

 

A seemingly positive development for Hydro One is overshadowed by ongoing political and regulatory risk, as seen after the CEO and board ouster, Industrial Alliance Securities analyst Jeremy Rosenfield says.

On October 4, staff from the Washington Utilities and Transportation Commission filed updated testimony in support of the merger of Hydro One and natural gas distributor Avista, which had previously received U.S. antitrust clearance from federal authorities.

The merger, which was announced in July of 2017 has received the green light from federal and key states, with Washington, Oregon and Idaho being exceptions, though the companies would later seek reconsideration from U.S. regulators in the process.

But Rosenfield says even though decisions from Oregon and Idaho are expected by December, there are still too many unknowns about Hydro One to recommend investors jump into the stock.

 

Hydro One stock defensive but risky

“We continue to view Hydro One as a fundamentally defensive investment, underpinned by (1) stable earnings and cash flows from its regulated utility businesses (2) healthy organic rate base and earning growth (4-6%/year through 2022) and (3) an attractive dividend (~5% yield, 70-80% target payout),” the analyst says. “In the meantime, and ahead of key regulatory approvals in the AVA transaction, we continue to see heightened political/regulatory risk as an overhand on the stock, outweighing Hydro One’s fundamentals in the near term.”

In a research update to clients today, Rosenfield maintained his “Hold” rating and one year price target of $24.00 on Hydro One, implying a return of 28.1 per cent at the time of publication.

Rosenfield thinks Hydro One will generate EPS of $1.27 per share in fiscal 2018, even though its Q2 profit plunged 23% as electricity revenue fell. He expects that number will improve to EPS of $1.38 a share the following year.

 

Related News

View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Download the 2025 Electrical Training Catalog

Explore 50+ live, expert-led electrical training courses –

  • Interactive
  • Flexible
  • CEU-cerified