State ulilities buy more renewable power

PG&E Drum Fire Cause identified as a power line failure in Santa Barbara County, with arcing electricity igniting vegetation near Buellton on Drum Canyon Road; 696 acres burned as investigators and CPUC review PG&E safety.

Key Points

A failed PG&E power line sparked the 696-acre Drum Fire near Buellton; the utility is conducting its own probe.

✅ Power line failed between poles, arcing ignited vegetation.

✅ 696 acres burned; no structures damaged or injuries.

✅ PG&E filed CPUC incident report; ongoing investigation.

A downed Pacific Gas and Electric Co. power line was the cause of the Drum fire that broke out June 14 on Drum Canyon Road northwest of Buellton, a reminder that a transformer explosion can also spark multiple fires, the Santa Barbara County Fire Department announced Thursday.

The fire broke out about 12:50 p.m. north of Highway 246 and burned about 696 acres of wildland before firefighters brought it under control, although no structures were damaged or mass outages like the Los Angeles power outage occurred, according to an incident summary.

A team of investigators pinpointed the official cause as a power line that failed between two utility poles and fell to the ground, and as downed line safety tips emphasize, arcing electricity ignited the surrounding vegetation, said County Fire Department spokesman Capt. Daniel Bertucelli.

In response, a PG&E spokesman said the utility is conducting its own investigation and does not have access to whatever data investigators used, and, as the ATCO regulatory penalty illustrates, such matters can draw significant oversight, but he noted the company filed an electric incident report on the wire with the California Public Utilities Commission on June 14.

"We are grateful to the first responders who fought the 2020 Drum fire in Santa Barbara County and helped make sure that there were no injuries or fatalities, outcomes not always seen in copper theft incidents, and no reports of structures damaged or burned," PG&E spokesman Mark Mesesan said.

"While we are continuing to conduct our own investigation into the events that led to the Drum fire, and as the Site C watchdog inquiry shows, oversight bodies can seek more transparency, PG&E does not have access to the Santa Barbara County Fire Department's report."

He said PG&E remains focused on reducing wildfire risk across its service area while limiting the scope and duration of public safety power shutoffs, including strategies like line-burying decisions adopted by other utilities, and that the safety of customers and communities it serves are its most important responsibility.

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Nithi Mountain Wind Project delivers 200 MW of renewable wind power in British Columbia under a BC Hydro electricity purchase deal, producing 600 GWh yearly, led by Stellat'en First Nation and Innergex.

Key Points

A 200 MW wind farm in British Columbia producing 600 GWh yearly, co-owned by Stellat'en First Nation and Innergex.

✅ 30-year BC Hydro take-or-pay PPA, CPI-indexed

✅ 200 MW capacity, ~600 GWh per year for ~60,000 homes

✅ 51% Stellat'en First Nation; operations targeted for 2030

In December 2024, a significant development unfolded in British Columbia's renewable energy sector, where the clean-energy regulatory process continues to evolve, as Stellat'en First Nation and Innergex Renewable Energy Inc. announced the signing of a 30-year electricity purchase agreement with BC Hydro. This agreement pertains to the Nithi Mountain Wind Project, a 200 MW initiative poised to enhance the province's clean energy capacity.

Project Overview

The Nithi Mountain Wind Project is a collaborative venture between Stellat'en First Nation, which holds a 51% stake, and Innergex Renewable Energy Inc., which holds a 49% stake. Located in the Bulkley-Nechako region of British Columbia, the project is expected to generate approximately 600 GWh of renewable electricity annually, comparable to other large-scale projects like the 280 MW wind farm in Alberta now online, sufficient to power around 60,000 homes. The wind farm is scheduled to commence commercial operations in 2030.

Economic and Community Impact

This partnership is anticipated to create approximately 150 job opportunities during the development, construction, and operational phases, thereby supporting local economic growth and workforce development, and aligns with recent federal green electricity procurement efforts that signal broader market support. The long-term electricity purchase agreement with BC Hydro is structured as a 30-year take-or-pay contract, indexed to a predefined percentage of the Consumer Price Index (CPI), ensuring financial stability and protection against inflation.

Environmental and Cultural Considerations

The Nithi Mountain Wind Project is being developed in close collaboration with First Nations in the area, guided by collaborative land-use planning. The project integrates cultural preservation, environmental stewardship, and economic empowerment for Indigenous communities in the Bulkley-Nechako region, while other solutions such as tidal energy for remote communities are also advancing across Canada. The project is committed to minimizing environmental impact by avoiding sensitive cultural and ecological resources and integrating sustainability at every stage, with remediation practices to restore the land, preserve cultural values, and enhance biodiversity and wildlife habitats if decommissioned.

Broader Implications

This agreement underscores a growing trend of collaboration between Indigenous communities, exemplified by the Ermineskin First Nation project emerging nationwide, and renewable energy developers in Canada. Such partnerships are instrumental in advancing sustainable energy projects that respect Indigenous rights and contribute to the nation's clean energy objectives, as renewable power developers find that diversified energy sources strengthen project outcomes. The Nithi Mountain Wind Project exemplifies how integrating traditional knowledge with modern renewable energy technologies can lead to mutually beneficial outcomes for both Indigenous communities and the broader society.

In summary, the Nithi Mountain Wind Project represents a significant step forward in British Columbia's renewable energy landscape, highlighting the importance of collaboration between Indigenous communities and renewable energy developers. The project promises substantial economic, environmental, and cultural benefits, setting a precedent for future partnerships in the clean energy sector, as large-scale storage acquisitions like Centrica's battery project illustrate complementary pathways to unlock wind potential.

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NDC Renewable Energy Ambition drives COP25 calls to align with the Paris Agreement, as IRENA urges 2030 targets toward 7.7 TW, accelerating decarbonization, energy transition, socio-economic benefits, and scalable renewables in Nationally Determined Contributions.

Key Points

Raised 2030 renewable targets in NDCs to meet Paris goals, reaching 7.7 TW efficiently and speeding decarbonization.

✅ Double current NDC renewables to align with 7.7 TW by 2030

✅ Cost effective pathway with jobs, growth, welfare gains

✅ Accelerates decarbonization and energy access per UN goals

We need an oracle to get us out of this debacle. The UN climate group has met for the 25th time. Will anything ever change?

Countries are being urged to significantly raise renewable energy ambition and adopt targets to transform the global energy system in the next round of Nationally Determined Contributions (NDCs), according to a new IRENA report by the International Renewable Energy Agency (IRENA) that will be released at the UN Climate Change Conference (COP25) in Madrid.

The report will show that renewable energy ambition within NDCs would have to more than double by 2030 to put the world in line with the Paris Agreement goals, cost-effectively reaching 7.7 terawatts (TW) of globally installed capacity by then. Today’s renewable energy pledges under the NDCs are falling short of this, targeting only 3.2 TW, even as over 30% of global electricity is already generated from renewables.

The reportNDCs in 2020: Advancing Renewables in the Power Sector and Beyondwill be released at IRENA’s official side event on enhancing NDCs and raising ambition on 11 December 2019.It will state that with over 2.3 TW installed renewable capacity today, following a record year for renewables in 2016, almost half of the additional renewable energy capacity foreseen by current NDCs has already been installed.

The analysis will also highlight that delivering on increased renewable energy ambition can be achieved in a cost-effective way and with considerable socio-economic benefits across the world.

“Increasing renewable energy targets is absolutely necessary,” said IRENA’s Director-General Francesco La Camera. “Much more is possible. There is a decisive opportunity for policy makers to step up climate action, including a fossil fuel lockdown, by raising ambition on renewables, which are the only immediate solution to meet rising energy demand whilst decarbonizing the economy and building resilience.

“IRENA’s analysis shows that a pathway to a decarbonised economy is technologically possible and socially and economically beneficial,” continued Mr. La Camera.

“Renewables are good for growth, good for job creation and deliver significant welfare benefits. With renewables, we can also expand energy access and help eradicate energy poverty by ensuring clean, affordable and sustainable electricity for all in line with the UN Sustainable Development Agenda 2030.

IRENA will promote knowledge exchange, strengthen partnerships and work with all stakeholders to catalyse action on the ground. We are engaging with countries and regions worldwide, from Ireland's green electricity push to other markets, to facilitate renewable energy projects and raise their ambitions”.

NDCs must become a driving force for an accelerated global energy transformation toward 100% renewable energy globally. The current pledges reflect neither the past decade’s rapid growth nor the ongoing market trends for renewables. Through a higher renewable energy ambition, NDCs could serve to advance multiple climate and development objectives.

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Smart Meter Texas real-time pricing faces rollback as utilities limit on-demand reads, impacting demand response, home area networks, ERCOT wholesale tracking, and thermostat automation, reducing efficiency gains promised through deregulation and smart meter investments.

Key Points

A plan linking smart meters to ERCOT prices, enabling near real-time usage alignment and automated demand response.

✅ Twice-hourly reads miss 15-minute ERCOT price spikes.

✅ Less than 1% of 7.3M meters use HAN real-time features.

✅ Limits hinder automation for HVAC, EV charging, and pool pumps.

Utilities made a promise several years ago when they built Smart Meter Texas that they’d come up with a way for consumers to monitor their electricity use in real time. But now they’re backing out of the deal with the approval of state regulators, leaving in the lurch retail power companies that are building their business model on the promise of real time pricing and denying consumers another option for managing their electricity costs.

Texas utilities collected higher rates to finance the building of a statewide smart meter network that would allow customers to track their electricity use and the quickly changing prices on wholesale power markets almost as they happened. Some retailers are building electricity plans around this promise, providing customers with in-home devices that would eventually track pricing minute-by-minute and allow them to automatically turn down or shut off air conditioners, pool pumps and energy sucking appliances when prices spiked on hot summer afternoons and turn them back on when they prices fell again.

The idea is to help save consumers money by allowing them to shift their electricity consumption to periods when power is cheaper, typically nights and weekends, even as utility revenue in a free-power era remains a debated topic.

“We’re throwing away a large part of (what) ratepayers paid for,” said John Werner, CEO of GridPlus Texas, one of the companies offering consumers a real-time pricing plan that is scheduled to begin testing next month. “They made the smart meters dumb meters.”

When Smart Meter Texas was launched a decade ago by a consortium of the state’s biggest utilities, it was considered an important part of deregulation. The competitive market for electricity held the promise that consumers would eventually have the technology to control their electricity use through a home area network and cut their power bills.

Regulators and legislators also were enticed by the possibility of making the electric system more efficient and relieving pressure on the power grid as consumers responded to high prices and cut consumption when temperatures soared, with ongoing discussions about Texas grid reliability informing policy choices.

One study found that smart meters coupled with smart real time consumption monitors could reduce electricity use between 3 percent and 5 percent, according to Call Me Power, a website sponsored by the European electricity price shopping service Selectra.

But utilities complained that the home area network devices were expensive to install and not used very often, and, with flat electricity demand weighing on growth, they questioned further investment. CenterPoint manager Esther Floyd Kent filed an affidavit with the commission in May that it costs the utility about $30,000 annually to support the network devices, plus maintenance.

Over a six-year period, CenterPoint paid $124,500, or about $20,000 a year, to maintain the system. As of April, there were only 4,067 network devices in CenterPoint’s service area, meaning the utility pays about $30.70 each year to maintain each device.

Centerpoint last year generated $9.6 billion in revenues and earned a $1.8 billion profit, according to its financial filings. CenterPoint officials did not respond to requests for comment.

Other utilities that are part of the Smart Meter consortium also complained to the Public Utility Commission that, up to now, the system hasn’t developed. All told, Texas has 7.3 million meters connected to Smart Meter Texas, but less than 1 percent are using the networking functions to track real-time prices and consumption, according to the testimony of Donny R. Helm, director of technology strategy and architecture for the state’s largest utility Oncor Electric Delivery Co. in Dallas.

The isssue was resolved recently through a settlement agreement that limits on-demand readings to twice an hour that Smart Meter Texas must provide customers. The price of power changes every 15 minutes, so a twice an hour reading may miss some price spikes.

The Public Utility Commission signed off on the deal, and so did several other groups including several retail electricity providers and the Office of Public Utility Counsel which represents residential customers and small businesses.

Michele Gregg, spokeswoman for the Public Utility Counsel, testified in December that the consumer advocate supported the change because widespread use of the networks never materialized. Catherine Webking, an Austin lawyer who represents the Texas Energy Association for Marketers, a group of retail electric providers, said she believes the deal was a reasonable resolution of providing the benefits of Smart Meter Texas while not incurring too much cost.

But Griddy, an electricity provider that offers customers the opportunity to pay wholesale power prices, which also issued a plea to customers during a price surge, said the state hasn’t given the smart-meter networks a chance and could miss out on its potential. Griddy was counting on the continued adoption of real time pricing as the next step for customers wanting to control their electricity costs.

Right now, Griddy sends out price alerts from the grid operator Electric Reliability Council of Texas so businesses like hotels can run washers and dryers when electricity prices are cheapest. But the company was counting on a smart-meter program that would allow customers to track wholesale prices and manage consumption themselves, making Griddy’s offerings attractive to more people.

Wholesale prices are generally cheaper than retail prices, but they can fluctuate widely, especially when the Texas power grid faces another crisis during extreme weather. Last year, wholesale prices averaged less than 3 cents per kilowatt hour, much lower than than retail rates that now are running above 11 cents, but they can spike at times of high demand to as much as $9 a kilowatt hour.

What customers want is to be able to use energy when it’s cheapest, said Greg Craig, Griddy’s CEO, and they want to do it automatically. They want to be able to program their thermostat so that if the price rises they can shut off their air conditioning and if the price falls, they can charge their electric-powered vehicle.

Griddy customers may still save money even without real time data, he said. But they won’t be able to see their usage in real time or see how much they’re spending.

“The big utilities have big investments in the existing way and going to real time and more transparency isn’t really in their best interest,” said Craig.

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Ontario IESO Accounting Dispute highlights tensions over public sector accounting standards, auditor general oversight, electricity market transparency, KPMG advice, rate-regulated accounting, and an alleged $1.3B deficit understatement affecting Hydro bills and provincial finances.

Key Points

A PSAS clash between Ontario's auditor general and the IESO, alleging a $1.3B deficit impact and transparency failures.

✅ Auditor alleges deficit understated by $1.3B

✅ Dispute over PSAS vs US-style accounting

✅ KPMG support, transparency and co-operation questioned

The bad blood between the Ontario government and auditor general bubbled to the surface once again Monday, with the Liberal energy minister downplaying a dispute between the auditor and the Crown corporation that manages the province's electricity market, even as the government pursued legislation to lower electricity rates in the province.

Glenn Thibeault said concerns raised by auditor general Bonnie Lysyk during testimony before a legislative committee last week aren't new and the practices being used by the Independent Electricity System Operator are commonly endorsed by major auditing firms.

"(Lysyk) doesn't like the rate-regulated accounting. We've always said we've relied on the other experts within the field as well, plus the provincial controller," Thibeault said.

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"We believe that we are following public sector accounting standards."

Thibeault said that Ontario Power Generation, Hydro One and many other provinces and U.S. states use the same accounting practices.

"We go with what we're being told by those who are in the field, like KPMG, like E&Y," he said.

But a statement from Lysyk's office Monday disputed Thibeault's assessment.

"The minister said the practices being used by the IESO are common in other jurisdictions," the statement said.

"In fact, the situation with the IESO is different because none of the six other jurisdictions with entities similar to the IESOuse Canadian Public Sector Accounting Standards. Five of them are in the United States and use U.S. accounting standards."

Lysyk said last week that the IESO is using "bogus" accounting practices and her office launched a special audit of the agency late last year after the agency changed their accounting to be more in line with U.S. accounting, following reports of a phantom demand problem that cost customers millions.

Lysyk said the accounting changes made by the IESO impact the province's deficit, understating it by $1.3 billion as of the end of 2017, adding that IESO "stalled" her office when it asked for information and was not co-operative during the audit.

Lysyk's full audit of the IESO is expected to be released in the coming weeks and is among several accounting disputes her office has been engaged in with the Liberal government over the past few years.

Last fall, she accused the government of purposely obscuring the true financial impact of its 25% hydro rate cut by keeping billions in debt used to finance that plan off the province's books. Lysyk had said she would audit the IESO because of its role in the hydro plan's complex accounting scheme.

"Management of the IESO and the board would not co-operate with us, in the sense that they continually say they're co-operating, but they stalled on giving us information," she said last week.

Terry Young, a vice-president with the IESO, said the agency has fully co-operated with the auditor general. The IESO opened up its office to seven staff members from the auditor's office while they did their work.

"We recognize the work that she's doing and to that end we've tried to fully co-operate," he said. "We've given her all of the information that we can."

Young said the change in accounting standards is about ensuring greater transparency in transactions in the energy marketplace.

"It's consistent with many other independent electricity system operators are doing," he said.

Lysyk also criticized IESO's accounting firm, KPMG, for agreeing with the IESO on the accounting standards. She was critical of the firm billing taxpayers for nearly $600,000 work with the IESO in 2017, compared to their normal yearly audit fee of $86,500.

KPMG spokeswoman Lisa Papas said the accounting issues that IESO addressed during 2017 were complex, contributing to the higher fees.

The accounting practices the auditor is questioning are a "difference of professional judgement," she said.

"The standards for public sector organizations such as IESO are principles-based standards and, accordingly, require the exercise of considerable professional judgement," she said in a statement.

"In many cases, there is more than one acceptable approach that is compliant with the applicable standards."

Progressive Conservative energy critic Todd Smith said the government isn't being transparent with the auditor general or taxpayers, aligning with calls for cleaning up Ontario's hydro mess in the sector.

"Obviously, they have some kind of dispute but the auditor's office is saying that the numbers that the government is putting out there are bogus.

Those are her words," he said. "We've always said that we believe the auditor general's are the true numbers for the
province of Ontario."

NDP energy critic Peter Tabuns said the Liberal government has decided to "play with accounting rules" to make its books look better ahead of the spring election, despite warnings that electricity prices could soar if costs are pushed into the future.

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Electrification Potential Study for Canada evaluates NRCan's decarbonization roadmap, assessing electrification of end uses and replacements for fossil fuels across transportation, buildings, and industry, including propane, diesel, natural gas, and coal, to guide energy policy.

Key Points

An NRCan study assessing electrification to replace fossil fuels across sectors and guide deep decarbonization R&D.

✅ Evaluates non-electric alternatives alongside electrification paths

✅ Covers propane, diesel, natural gas, and coal end uses

✅ Guides NRCan R&D priorities for deep decarbonization

The federal government wants to spend up to $300,000 on a study aimed at understanding whether existing electrical technologies can “reduce or eliminate” fossil fuels used for virtually every purpose other than generating electricity.

The proposal has caused consternation within the Saskatchewan government, whose premier has criticized a 2035 net-zero grid target as shifting the goalposts, and which has spent months attacking federal policies it believes will harm the Western Canadian energy sector without meaningfully addressing climate change.

Procurement documents indicate the “Electrification Potential Study for Canada” will provide “strategic guidance on the need to pursue both electric and non-electric energy research and development to enable deep decarbonisation scenarios.”

“It is critical that (Natural Resources Canada) as a whole have a cross-sectoral, consistent, and comprehensive understanding of the viability of electric technologies as a replacement for fossil fuels,” the documents state.

The study proponent will be asked to examine possible replacements for a range of fuels, including propane, transportation fuel, fuel oil, diesel, natural gas and coal, even as Alberta maps a path to clean electricity for its grid. Only international travel fuel and electricity generation are outside the scope of the study.

“To be clear, the consultant should not answer these questions directly, but should conduct the analysis with them in mind. The goal … is to collate data which can be used by (Natural Resources Canada) to conduct analysis related to these questions,” the documents state.

Natural Resources Canada issued the request for proposals one week before Prime Minister Justin Trudeau officially launched a 40-day election campaign in which climate and energy policy, including debates over Alberta's power market like a Calgary retailer's challenge, is expected to play a defining role.

It also comes as the federal government works to complete the controversial Trans Mountain Pipeline Expansion project through British Columbia, amid tariff threats boosting support for Canadian energy projects, which it bought last year for $4.5 billion and is currently bogged down in the court system.

A Natural Resources Canada spokeswoman said the ministry would not be able to respond to questions until sometime on Thursday.

While the documents make clear that the study aims to answer unresolved questions about what the International Energy Agency calls an increasingly-electric future, with clean grid and storage trends emerging, without a specific timeline, the provincial government is far from thrilled.

Energy and Resources Minister Bronwyn Eyre said the document reflects the federal government’s “hostility” to the energy sector, even as Alberta's electricity sector faces profound change, because government ministries like Natural Resources Canada don’t do anything without political direction.

Asked whether a responsible government should consider every option before taking a decision, Eyre said a government that was not interested in eliminating fossil fuels entirely would not have used such “strong” language in a public document, noting that provinces like Ontario are grappling with hydro system problems as well.

“I think it’s a real wake-up call to what (Ottawa’s) endgame really is here,” she said, adding that the document does not ask the proponent to conduct an economic impact analysis or consider potential job losses in the energy sector.

The study is organized by Natural Resources Canada’s office of energy research and development, which is tasked with accelerating energy technology “in order to produce and use energy in … more clean and efficient ways,” the documents state.

Bidding on the proposal closes Oct. 14, one week before the federal election. The successful proponent must deliver a final report in April 2020, according to the documents.

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