NS Power prepares for rate hike

By CBC.ca


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Nova Scotia Power is preparing to request its seventh power rate increase in a decade, company representatives said.

The utility is projecting electricity costs to increase 20 per cent by 2015. That includes an average residential rate increase of nine per cent next year, four per cent in 2013, two per cent in 2014 and five per cent in 2015.

Nova Scotia Power has not yet filed its application with the Nova Scotia Utility and Review Board, company representatives said at a briefing for stakeholders and members of the media.

Rene Gallant, the general manager of regulatory affairs with the utility, said the main reason ratepayers may have to pay more next year is to cover renewable projects that are currently on the grid but are not yet paid for.

"We've invested about $1 billion in the last three years in Nova Scotia. We've been building wind farms, we've been investing in our plants and our equipment, putting equipment on the plants to keep our emissions down and meet the province's standards," Gallant told reporters after the news conference.

He added that the $1 billion has not yet been included in the utility's rates.

"At some point, like your Visa card, you have to start paying back those amounts that you've borrowed. So that's a key driver of why we're thinking we'll need to change rates," said Gallant.

Nova Scotia Power said it will need $90 million from ratepayers next year — $4.9 million of which is to increase dividends to its shareholders.

Although the utility is coming off a year of record profits, Gallant said the company needs to give shareholders more money to stay competitive.

"They don't have to invest in our company, they can invest in any number of utilities and if the rate of return is not competitive with those other utilities, they'll go somewhere else," he said.

Don Regan, who represents the Municipal Electric Utilities Co-operative, said developments like the proposed Lower Churchill hydroelectric megaproject will also mean higher rates in the future.

"There are capital plans the company has, such as the undersea cable from Newfoundland, which aren't in the numbers we saw today or in the years we saw today," Regan told CBC News.

"We're appreciative of the company laying out the future as they have here today — something they haven't done much in the past — and we're not surprised by what they've brought forward, but it does give us the opportunity to work together to mitigate these effects."

Gallant said the utility hopes there will be rate stability in several years when it completes a transition to renewable energy, an issue that Nova Scotia's NDP government has been pressing since it came to power.

Last year, the provincial government announced plans for 40 per cent of all electricity to come from renewable sources by 2020. It had already set a goal of 25 per cent by 2015.

Premier Darrell Dexter said Nova Scotia Power's plans to ask for a rate increase has not shaken his belief in the renewable energy plan.

"We're obviously very concerned with anything that affects people in the province. It is a difficult time for people trying to make ends meet," Dexter said.

"Obviously this is disappointing. We'll be at the hearing, of course, to ask questions and see that they are able to justify the increased costs."

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Maritime Link sends first electricity between Newfoundland, Nova Scotia

Maritime Link HVDC Transmission connects Newfoundland and Nova Scotia to the North American grid, enabling renewable energy imports, subsea cable interconnection, Muskrat Falls hydro power delivery, and lower carbon emissions across Atlantic Canada.

 

Key Points

A 500 MW HVDC intertie linking Newfoundland and Nova Scotia to deliver Muskrat Falls hydro power.

✅ 500 MW capacity using twin 170 km subsea HVDC cables

✅ Interconnects Newfoundland and Nova Scotia to the North American grid

✅ Enables Muskrat Falls hydro imports, cutting CO2 and costs

 

For the first time, electricity has been sent between Newfoundland and Nova Scotia through the new Maritime Link.

The 500-megawatt transmission line — which connects Newfoundland to the North American energy grid for the first time and echoes projects like the New England Clean Power Link underway — was tested Friday.

"This changes not only the energy options for Newfoundland and Labrador but also for Nova Scotia and Atlantic Canada," said Rick Janega, the CEO of Emera Newfoundland and Labrador, which owns the link.

"It's an historic event in our eyes, one that transforms the electricity system in our region forever."

 

'On time and on budget'

It will eventually carry power from the Muskrat Falls hydro project in Labrador, where construction is running two years behind schedule and $4 billion over budget, a context in which the Manitoba Hydro line to Minnesota has also faced delay, to Nova Scotia consumers. It was supposed to start producing power later this year, but the new deadline is 2020 at the earliest.

The project includes two 170-kilometre subsea cables across the Cabot Strait between Cape Ray in southwestern Newfoundland and Point Aconi in Cape Breton.

The two cables, each the width of a two-litre pop bottle, can carry 250 megawatts of high voltage direct current, and rest on the ocean floor at depths up to 470 metres.

This reel of cable arrived in St. John's back in April aboard the Norwegian vessel Nexans Skagerrak, after the first power cable reached Nova Scotia earlier in the project. (Submitted by Emera NL)

The Maritime Link also includes almost 50 kilometres of overland transmission in Nova Scotia and more than 300 kilometres of overland transmission in Newfoundland, paralleling milestones on Site C transmission work in British Columbia.

The link won't go into commercial operation until January 1.

Janega said the $1.6-billion project is on time and on budget.

"We're very pleased to be in a position to be able to say that after seven years of working on this. It's quite an accomplishment," he said.

This Norwegian vessel was used to transport the 5,500 tonne subsea cable. (Submitted by Emera NL)

Once in service, the link will improve electrical interconnections between the Atlantic provinces, aligning with climate adaptation guidance for Canadian utilities.

"For Nova Scotia it will allow it to achieve its 40 per cent renewable energy target in 2020. For Newfoundland it will allow them to shut off the Holyrood generating station, in fact using the Maritime Link in advance of the balance of the project coming into service," Janega said.

Karen Hutt, president and CEO of Nova Scotia Power, which is owned by Emera Inc., calls it a great day for Nova Scotia.

"When it goes into operation in January, the Maritime Link will benefit Nova Scotia Power customers by creating a more stable and secure system, helping reduce carbon emissions, and enabling NSP to purchase power from new sources," Hutt said in a statement.

 

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Energy-insecure households in the U.S. pay 27% more for electricity than others

Community Solar for Low-Income Homes expands energy equity by delivering renewable energy access, predictable bill savings, and tax credit benefits to renters and energy-insecure households, accelerating distributed generation and storage adoption nationwide.

 

Key Points

A program model enabling renters and LMI households to subscribe to off-site solar and save on utility bills.

✅ Earn bill credits from shared solar generation.

✅ Expands access for renters and LMI subscribers.

✅ Often paired with storage and IRA tax credit adders.

 

On a square-foot basis, the issue of inequality is made worse by higher costs for energy usage in the nation. Efforts like community solar programs such as Maryland community solar are underway to boost low-income participation in the cost benefits of renewable energy.

The Energy Information Administration (EIA) shows that households that are considered energy insecure, or those that have the inability to adequately meet basic household energy costs, are paying more for electricity than their wealthier counterparts. 

On average in the United States in 2020, households were billed about $1.04 per square foot for all energy sources. For homes that did not report energy insecurity, that average was $0.98 per square foot, while homes with energy insecurity issues paid an average of $1.24 per square foot for energy. This means that U.S. residents that need the most support on their energy bills are stuck with costs 27% higher than their neighbors on square-foot-basis.

EIA said energy-insecure households have reduced or forgone basic necessities to pay energy bills, kept their houses at unsafe temperatures because of energy cost concerns, or been unable to repair heating or cooling equipment because of cost.

In 2020, households with income less than $10,000 a year were billed an average of $1.31 per square foot for energy, while households making $100,000 or more were billed an average of $0.96 per square foot, said EIA. Renters paid considerably more ($1.28 per square foot) than owners ($0.98 per square foot). There were also considerable differences between regions, with New England solar growth sparking grid upgrade debates, ethnic groups and races, and insulation levels, as seen below.

The energy transition toward renewables like solar has offered price stability, amid record solar and storage growth nationwide, but thus far energy-insecure communities have relatively been left behind. A recent Berkeley Lab report, Residential Solar-Adopter Income and Demographic Trends, indicates that even though the rate of solar adoption among low-income residents is increasing (from 5% in 2010 to 11% in 2021), that segment of energy consumers remains under-represented among solar adopters, relative to its share of the population.


Community solar efforts

As such, the United States is targeting communities most impacted by energy costs that have not benefitted from the transition, highlighting “Energy Communities” that are eligible for an additional 10% tax credit through funds made possible by the Inflation Reduction Act.

Additionally, a push for community solar development is taking place nationwide to extend access to affordable solar energy to renters and other residents that aren’t able to leverage finances to invest in predictable, low-cost residential solar systems. The Biden Administration set a goal this year to sign up 5 million community solar households, achieving $1 billion in bill savings by 2025. The community solar model only represents about 8% of the total distributed solar capacity in the nation. This target would entail a jump from 3 GW installed capacity to 20 GW by the target year. The Department of Energy estimates community solar subscribers save an average of 20% on their bills.

California this year passed AB 2316, the Community Renewable Energy Act takes aim at four acute problems in the state’s power market: reliability amid rising outage risks, rates, climate and equity. The law creates a community renewable energy program, including community solar-plus-storage, supported by cheaper batteries, to overcome access barriers for nearly half of Californians who rent or have low incomes. Community solar typically involves customers subscribing to an off-site solar facility, receiving a utility bill credit for the power it generates.

“Community renewable energy is a proven powerful tool to help close California’s clean energy gap, bringing much needed relief to millions struggling with high housing costs and utility debt,” said Alexis Sutterman, energy equity program manager at the California Environmental Justice Alliance.

The program has energy equity baked into its structure, working to make sure Californians of all income levels participate in the benefits of the energy transition. Not only does it open solar access to renters, the law ensures that at least 51% of subscribers are low-income customers, which is expected to make projects eligible for a 10% tax credit adder under the IRA.

“The money’s on the table now,” said Jeff Cramer, president and chief executive of the Coalition for Community Solar Access. “While there are groups pushing for solar access for all, and states with strong legislation, there are other pockets of interest in surprising places in the United States. For example, Louisiana has no policy for community solar or support for low-income residents going solar but the city of New Orleans has its own utility commission with a community solar program. In Nebraska, forward-looking co-operatives have created community solar projects.

Community solar markets are active in 22 states, with more expected to come online in the future as states pursue 100% clean energy targets across the country. However, the market is expected to require strong community outreach efforts to foster trust and gain subscribers.

“There is a distrust of community solar initially in LMI communities as many have been burned before by retail energy false promises,” said Eric LaMora, executive director, community solar, Nautilus Solar on a panel at the Solar Energy Industries Association Finance, Tax, and Buyers seminar. “People are suspicious but there really are no hooks with community solar.”

LMI residents are leery to provide tax records or much documents at all in order to sign up for community solar, LaMora said. “We were surprised to see less of a default rate with LMI residents. We attribute this to the fact that they see significant savings on their electric bill, making it easier to pay each month,” he said.

 

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Ontario to Provide New and Expanded Energy-Efficiency Programs

Ontario CDM Programs expand energy efficiency, demand response, and DER incentives via IESO's Save on Energy, cutting peak demand, lowering bills, and supporting electrification, retrofits, and LED lighting to meet Ontario's growing electricity needs.

 

Key Points

Ontario CDM Programs are IESO incentives that cut peak demand and energy use via demand response, retrofits and DERs.

✅ Delivered by IESO's Save on Energy to reduce peak demand

✅ Incentives for demand response, retrofits, LEDs, and DER solutions

✅ Help homes, businesses, and greenhouses lower bills and emissions

 

Ontario will be making available four new and expanded energy-efficiency programs, also known as Conservation and Demand Management (CDM) programs, to ensure a reliable, affordable, and clean electricity system, including ultra-low overnight pricing options to power the province, drive electrification and support strong economic growth. As there will be a need for additional electricity capacity in Ontario beginning in 2025, and continuing through the decade, CDM programs are among the fastest and most cost-effective ways of meeting electricity system needs.

 

Conservation and Demand Management

The Ontario government launched the 2021-2024 CDM Framework on January 1, 2021. The framework focuses on cost-effectively meeting the needs of Ontario’s electricity system, including by focusing on the achievement of provincial peak demand reductions and initiatives such as extended off-peak electricity rates, as well as on targeted approaches to address regional and/or local electricity system needs.

CDM programs are delivered by the Independent Electricity System Operator (IESO), which implemented staff lockdown measures during COVID-19, through the Save on Energy brand. These programs address electricity system needs and help consumers reduce their electricity consumption to lower their bills. CDM programs and incentives are available for homeowners, small businesses, large businesses, and contractors, and First Nations communities.

 

New and Expanded Programs

The four new and expanded CDM programs will include:

A new Residential Demand Response Program for homes with existing central air conditioning and smart thermostats to help deliver peak demand reductions. Households who meet the criteria could voluntarily enroll in this program and, alongside protections like disconnection moratoriums for residential customers, be paid an incentive in return for the IESO being able to reduce their cooling load on a select number of summer afternoons to reduce peak demand. There are an estimated 600,000 smart thermostats installed in Ontario.
Targeted support for greenhouses in Southwest Ontario, including incentives to install LED lighting, non-lighting measures or behind-the-meter distributed energy resources (DER), such as combined solar generation and battery storage.
Enhancements to the Save On Energy Retrofit Program for business, municipalities, institutional and industrial consumers to include custom energy-efficiency projects. Examples of potential projects could include chiller and other HVAC upgrades for a local arena, building automation and air handling systems for a hospital, or building envelope upgrades for a local business.
Enhancements to the Local Initiatives Program to reduce barriers to participation and to add flexibility for incentives for DER solutions.
It is the government’s intention that the new and expanded CDM programs will be available to eligible electricity customers beginning in Spring 2023.

The IESO estimates that the new program offers will deliver total provincial peak electricity demand savings of 285 megawatts (MW) and annual energy savings of 1.1 terawatt hours (TWh) by 2025, reflecting pandemic-era electricity usage shifts across Ontario. Savings will persist beyond 2025 with a total reduction in system costs by approximately $650 million over the lifetime of the measures, and will support economic recovery, as seen with electricity relief during COVID-19 measures, decarbonization and energy cost management for homes and businesses.

These enhancements will have a particular impact in Southwest Ontario, with regional peak demand savings of 225 MW, helping to alleviate electricity system constraints in the region and foster economic development, supported by stable electricity pricing for industrial and commercial companies in Ontario.

The overall savings from this CDM programming will result in an estimated three million tonnes of greenhouse gas emissions reductions over the lifetime of the energy-efficiency measures to help achieve Ontario’s climate targets and protect the environment for the future.

The IESO will be updating the CDM Framework Program Plan, which provides a detailed breakdown of program budgets and energy savings and peak demand targets expected to be achieved.

 

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DOE Announces $28M Award for Wind Energy

DOE Wind Energy Funding backs 13 R&D projects advancing offshore wind, distributed energy, and utility-scale turbines, including microgrids, battery storage, nacelle and blade testing, tall towers, and rural grid integration across the United States.

 

Key Points

DOE Wind Energy Funding is a $28M R&D effort in offshore, distributed, and utility-scale wind to lower cost and risk.

✅ $6M for rural microgrids, storage, and grid integration.

✅ $7M for offshore R&D, nacelle and long-blade testing.

✅ Up to $10M demos; $5M for tall tower technology.

 

The U.S. Department of Energy announced that in order to advance wind energy in the U.S., 13 projects have been selected to receive $28 million. Project topics focus on technology development while covering distributed, offshore wind growth and utility-scale wind found on land.

The selections were announced by the DOE’s Assistant Secretary for the Office of Energy Efficiency and Renewable Energy, Daniel R. Simmons, at the American Wind Energy Association Offshore Windpower Conference in Boston, as New York's offshore project momentum grows nationwide.

 

Wind Project Awards

According to the DOE, four Wind Innovations for Rural Economic Development projects will receive a total of $6 million to go toward supporting rural utilities via facilitating research drawing on U.K. wind lessons for deployment that will allow wind projects to integrate with other distributed energy resources.

These endeavors include:

Bergey WindPower (Norman, Oklahoma) working on developing a standardized distributed wind/battery/generator micro-grid system for rural utilities;

Electric Power Research Institute (Palo Alto, California) working on developing modeling and operations for wind energy and battery storage technologies, as large-scale projects in New York progress, that can both help boost wind energy and facilitate rural grid stability;

Iowa State University (Ames, Iowa) working on optimization models and control algorithms to help rural utilities balance wind and other energy resources; and

The National Rural Electric Cooperative Association (Arlington, Virginia) providing the development of standardized wind engineering options to help rural-area adoption of wind.

Another six projects are to receive a total of $7 million to facilitate research and development in offshore wind, as New York site investigations advance, with these projects including:

Clemson University (North Charleston, South Carolina) improving offshore-scale wind turbine nacelle testing via a “hardware-in-the-loop capability enabling concurrent mechanical, electrical and controller testing on the 7.5-megawatt dynamometer at its Wind Turbine Drivetrain Testing Facility to accelerate 1 GW on the grid progress”; and

The Massachusetts Clean Energy Center (Boston) upgrading its Wind Technology Testing Center to facilitate structural testing of 85- to 120-meter-long (roughly 278- to 393-foot-long) blades, as BOEM lease requests expand, among other projects.

Additionally, two offshore wind technology demonstration projects will receive up to $10 million for developing initiatives connected to reducing wind energy risk and cost. One last project will also be granted $5 million for the development of tall tower technology that can help overcome restrictions associated with transportation.

“These projects will be instrumental in driving down technology costs and increasing consumer options for wind across the United States as part of our comprehensive energy portfolio,” said Simmons.

 

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How Energy Use Has Evolved Throughout U.S. History

U.S. Energy Transition traces the shift from coal and oil to natural gas, nuclear power, and renewables like wind and solar, driven by efficiency, grid modernization, climate goals, and economic innovation.

 

Key Points

The U.S. Energy Transition is the shift from fossil fuels to cleaner power, driven by tech, policy, and markets.

✅ Shift from coal and oil to gas, nuclear, wind, and solar

✅ Enabled by grid modernization, storage, and efficiency

✅ Aims to cut emissions while ensuring reliability and affordability

 

The evolution of energy use in the United States is a dynamic narrative that reflects technological advancements, economic shifts, environmental awareness, and societal changes over time. From the nation's early reliance on wood and coal to the modern era dominated by oil, natural gas, and renewable sources, the story of energy consumption in the U.S. is a testament to innovation and adaptation.

Early Energy Sources: Wood and Coal

In the early days of U.S. history, energy needs were primarily met through renewable resources such as wood for heating and cooking. As industrialization took hold in the 19th century, coal emerged as a dominant energy source, fueling steam engines and powering factories, railways, and urban growth. The widespread availability of coal spurred economic development and shaped the nation's infrastructure.

The Rise of Petroleum and Natural Gas

The discovery and commercialization of petroleum in the late 19th century transformed the energy landscape once again. Oil quickly became a cornerstone of the U.S. economy, powering transportation, industry, and residential heating, and informing debates about U.S. energy security in policy circles. Concurrently, natural gas emerged as a significant energy source, particularly for heating and electricity generation, as pipelines expanded across the country.

Electricity Revolution

The 20th century witnessed a revolution in electricity generation and consumption, and understanding where electricity comes from helps contextualize how systems evolved. The development of hydroelectric power, spurred by projects like the Hoover Dam and Tennessee Valley Authority, provided clean and renewable energy to millions of Americans. The widespread electrification of rural areas and the proliferation of appliances in homes and businesses transformed daily life and spurred economic growth.

Nuclear Power and Energy Diversification

In the mid-20th century, nuclear power emerged as a promising alternative to fossil fuels, promising abundant energy with minimal greenhouse gas emissions. Despite concerns about safety and waste disposal, nuclear power plants became a significant part of the U.S. energy mix, providing a stable base load of electricity, even as the aging U.S. power grid complicates integration of variable renewables.

Renewable Energy Revolution

In recent decades, the U.S. has seen a growing emphasis on renewable energy sources such as wind, solar, and geothermal power, yet market shocks and high fuel prices alone have not guaranteed a rapid green revolution, prompting broader policy and investment responses. Advances in technology, declining costs, and environmental concerns have driven investments in clean energy infrastructure and policies promoting renewable energy adoption. States like California and Texas lead the nation in wind and solar energy production, demonstrating the feasibility and benefits of transitioning to sustainable energy sources.

Energy Efficiency and Conservation

Alongside shifts in energy sources, improvements in energy efficiency and conservation have played a crucial role in reducing per capita energy consumption and greenhouse gas emissions. Energy-efficient appliances, building codes, and transportation innovations have helped mitigate the environmental impact of energy use while reducing costs for consumers and businesses, and weather and economic factors also influence demand; for example, U.S. power demand fell in 2023 on milder weather, underscoring the interplay between efficiency and usage.

Challenges and Opportunities

Looking ahead, the U.S. faces both challenges and opportunities in its energy future, as recent energy crisis effects ripple across electricity, gas, and EVs alike. Addressing climate change requires further investments in renewable energy, grid modernization, and energy storage technologies. Balancing energy security, affordability, and environmental sustainability remains a complex task that requires collaboration between government, industry, and society.

Conclusion

The evolution of energy use throughout U.S. history reflects a continuous quest for innovation, economic growth, and environmental stewardship. From wood and coal to nuclear power and renewables, each era has brought new challenges and opportunities in meeting the nation's energy needs. As the U.S. transitions towards a cleaner and more sustainable energy future, leveraging technological advancements and embracing policy solutions, amid debates over U.S. energy dominance, will be essential in shaping the next chapter of America's energy story.

 

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Cape Town to Build Own Power Plants, Buy Additional Electricity

Cape Town Renewable Energy Plan targets 450+ MW via solar, wind, and battery storage, cutting Eskom reliance, lowering greenhouse gas emissions, stabilizing electricity prices, and boosting grid resilience through municipal procurement, PPAs, and city-owned plants.

 

Key Points

A municipal plan to procure over 450 MW, cut Eskom reliance, stabilize prices, and reduce Cape Town emissions.

✅ Up to 150 MW from private plants within the city

✅ 300 MW to be purchased from outside Cape Town later

✅ City financing 100-200 MW of its own generation

 

Cape Town is seeking to secure more than 450 megawatts of power from renewable sources to cut reliance on state power utility Eskom Holdings SOC Ltd., where wind procurement cuts were considered during lockdown, and reduce greenhouse gas emissions.

South Africa’s second-biggest city is looking at a range of options, including geothermal exploration in comparable markets, and expects the bulk of the electricity to be generated from solar plants, Kadri Nassiep, the city’s executive director of energy and climate change, said in an interview.

On July 14 the city of 4.6 million people released a request for information to seek funding to build its own plants. This month or next it will seek proposals for the provision of as much as 150 megawatts from privately owned plants, largely solar additions, to be built and operated within the city, he said. As much as 300 megawatts may also be purchased at a later stage from plants outside of Cape Town, according to Nassiep.

The city could secure finance to build 100 to 200 megawatts of its own generation capacity, Nassiep said. “We realized that it is important for the city to be more in control around the pricing of the power,” he added.

Power Outages

Cape Town’s foray into the securing of power from sources other than Eskom comes after more than a decade of intermittent electricity outages, while elsewhere in Africa coal projects face scrutiny from lenders, because the utility can’t meet national demand. The government last year said municipalities could find alternative suppliers.

Earlier this month Ethekwini, the municipal area that includes the city of Durban, issued a request for information for the provision of 400 megawatts of power, similar to BC Hydro’s call for power driven by EV uptake.

The City of Johannesburg will in September seek information and proposals for the construction of a 150-megawatt solar plant, reflecting moves like Ontario’s new wind and solar procurements to tackle supply gaps, 50 megawatts of rooftop solar panels and the refurbishment of an idle gas-fired plant that could generate 20 megawatts, it said in June. It will also seek information for the installation of 100 megawatts of battery storage.

Cape Town, which uses a peak of 1,800 megawatts of electricity in winter, hopes to start generating some of its own power next year, aligning with SaskPower’s 2030 renewables plan seen in Canada, according to a statement that accompanied its request for financing proposals.
 

 

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