TVA to give contractors $42M in bonuses, fees

By Associated Press


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The Tennessee Valley Authority agreed to pay $42 million in bonuses and other fees to two contractors for work on restarting a reactor at the Browns Ferry nuclear power plant despite the project running $90 million over budget.

TVA officials said the utility's directors agreed last week to pay Bechtel Power Corp. and Stone and Webster Construction Inc. $15.5 million each plus another $11.3 million in fees to settle a legal dispute.

Louise Gorenflo, a leader of an anti-nuclear power group called the Bellefonte Efficiency and Sustainability Team, told the Chattanooga Times Free Press that paying bonuses on a project that ran over budget raises questions.

"It really doesn't make sense for TVA to be paying out bonuses when it doesn't look like they gave TVA quality work," Gorenflo said.

The contractors initially sought an additional $76 million in performance bonuses. TVA had said the contractors were due only $24 million.

TVA Senior Vice President Ashok Bhatnagar said last week that the $42 million "is a fair settlement."

The decision comes at a time when TVA electric rates are set to increase by 20 percent. TVA officials have said the hike that takes effect Oct. 1 is due to higher fuel costs and a drought that makes it difficult to produce cheap hydroelectric power.

The Unit 1 reactor was repaired on time and restarted in May 2007, but the project cost exceeded TVA's original forecast by $90 million. It had been shut down in 1985 for safety reasons.

Based in Knoxville, the federally operated utility supplies electricity to about 8.8 million consumers in Tennessee, Kentucky, Alabama, Mississippi, Georgia, North Carolina and Virginia.

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Germany - A needed nuclear option for climate change

Germany Nuclear Debate Amid Energy Crisis highlights nuclear power vs coal and natural gas, renewables and hydropower limits, carbon emissions, energy security, and baseload reliability during Russia-related supply shocks and winter demand.

 

Key Points

Germany Nuclear Debate Amid Energy Crisis weighs reactor extensions vs coal revival to bolster security, curb emissions.

✅ Coal plants restarted; nuclear shutdown stays on schedule.

✅ Energy security prioritized amid Russian gas supply cuts.

✅ Emissions likely rise despite renewables expansion.

 

Peel away the politics and the passion, the doomsaying and the denialism, and climate change largely boils down to this: energy. To avoid the chances of catastrophic climate change while ensuring the world can continue to grow — especially for poor people who live in chronically energy-starved areas — we’ll need to produce ever more energy from sources that emit little or no greenhouse gases.

It’s that simple — and, of course, that complicated.

Zero-carbon sources of renewable energy like wind and solar have seen tremendous increases in capacity and equally impressive decreases in price in recent years, while the decades-old technology of hydropower is still what the International Energy Agency calls the “forgotten giant of low-carbon electricity.”

And then there’s nuclear power. Viewed strictly through the lens of climate change, nuclear power can claim to be a green dream, even as Europe is losing nuclear power just when it really needs energy most.

Unlike coal or natural gas, nuclear plants do not produce direct carbon dioxide emissions when they generate electricity, and over the past 50 years they’ve reduced CO2 emissions by nearly 60 gigatonnes. Unlike solar or wind, nuclear plants aren’t intermittent, and they require significantly less land area per megawatt produced. Unlike hydropower — which has reached its natural limits in many developed countries, including the US — nuclear plants don’t require environmentally intensive dams.

As accidents at Chernobyl and Fukushima have shown, when nuclear power goes wrong, it can go really wrong. But newer plant designs reduce the risk of such catastrophes, which themselves tend to garner far more attention than the steady stream of deaths from climate change and air pollution linked to the normal operation of conventional power plants.

So you might imagine that those who see climate change as an unparalleled existential threat would cheer the development of new nuclear plants and support the extension of nuclear power already in service.

In practice, however, that’s often not the case, as recent events in Germany underline.

When is a Green not green?
The Russian war in Ukraine has made a mess of global energy markets, but perhaps no country has proven more vulnerable than Germany, reigniting debate over a possible resurgence of nuclear energy in Germany among policymakers.

At the start of the year, Russian exports supplied more than half of Germany’s natural gas, along with significant portions of its oil and coal imports. Since the war began, Russia has severely curtailed the flow of gas to Germany, putting the country in a state of acute energy crisis, with fears growing as next winter looms.

With little natural gas supplies of the country’s own, and its heavily supported renewable sector unable to fully make up the shortfall, German leaders faced a dilemma. To maintain enough gas reserves to get the country through the winter, they could try to put off the closure of Germany’s last three remaining nuclear reactors temporarily, which were scheduled to shutter by the end of 2022 as part of Germany’s post-Fukushima turn against nuclear power, and even restart already closed reactors.

Or they could try to reactivate mothballed coal-fired power plants, and make up some of the electricity deficit with Germany’s still-ample coal reserves.

Based on carbon emissions alone, you’d presumably go for the nuclear option. Coal is by far the dirtiest of fossil fuels, responsible for a fifth of all global greenhouse gas emissions — more than any other single source — as well as a soup of conventional air pollutants. Nuclear power produces none of these.

German legislators saw it differently. Last week, the country’s parliament, with the backing of members of the Green Party in the coalition government, passed emergency legislation to reopen coal-powered plants, as well as further measures to boost the production of renewable energy. There would be no effort to restart closed nuclear power plants, or even consider a U-turn on the nuclear phaseout for the last active reactors.

“The gas storage tanks must be full by winter,” Robert Habeck, Germany’s economy minister and a member of the Green Party, said in June, echoing arguments that nuclear would do little to solve the gas issue for the coming winter.

Partially as a result of that prioritization, Germany — which has already seen carbon emissions rise over the past two years, missing its ambitious emissions targets — will emit even more carbon in 2022.

To be fair, restarting closed nuclear power plants is a far more complex undertaking than lighting up old coal plants. Plant operators had only bought enough uranium to make it to the end of 2022, so nuclear fuel supplies are set to run out regardless.

But that’s also the point. Germany, which views itself as a global leader on climate, is grasping at the most carbon-intensive fuel source in part because it made the decision in 2011 to fully turn its back on nuclear for good at the time, enshrining what had been a planned phase-out into law.

 

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Ontario rolls out ultra-low electricity rates

Ontario Ultra-Low Overnight Electricity Rate lets eligible customers opt in to 2.4 cents per kWh time-of-use pricing, set by the Ontario Energy Board, as utilities roll out the plan between May 1 and Nov. 1.

 

Key Points

An OEB-set overnight TOU price of 2.4 cents per kWh for eligible Ontarians, rolling out in phases via local utilities.

✅ 8 of 61 utilities offering rate at May 1 launch

✅ About 20% of 5M customers eligible at rollout

✅ Enova Power delays amid merger integration work

 

A million households can opt into a new ultra-low overnight electricity rate offered by the Ministry of Energy, as province-wide rate changes begin, but that's just a fraction of customers in Ontario.

Only eight of the 61 provincial power utilities will offer the new rate on the May 1 launch date, following the earlier fixed COVID-19 hydro rate period. The rest have up to six months to get on board.

That means it will be available to 20 percent of the province's five million electricity consumers, the Ministry of Energy confirmed to CBC News.

The Ford government's new overnight pricing was pitched as a money saver for Ontarians, amid the earlier COVID-19 recovery rate that could raise bills, undercutting its existing overnight rate from 7.4 to 2.4 cents per kilowatt hour. Both rates are set by the Ontario Energy Board (OEB).

"We wanted to roll it out to as many people as possible," Kitchener-Conestoga PC MPP Mike Harris Jr. told CBC News. "These companies were ready to go, and we're going to continue to work with our local providers to make sure that everybody can meet that Nov. 1 deadline."

Enova Power — which serves Kitchener, Waterloo, Woolwich, Wellesley and Wilmot — won't offer the reduced overnight rate until the fall, after typical bills rose when fixed pricing ended province-wide.

Enova merger stalls adoption

The power company is the product of the recently merged Kitchener-Wilmot Hydro and Waterloo North Hydro.

The Sept. 1 merger is a major reason Enova Power isn't offering the ultra-low rate alongside the first wave of power companies, said Jeff Quint, innovation and communications manager.

"With mergers, a lot of work goes into them. We have to evaluate, merge and integrate several systems and processes," said Quint.

"We believe that we probably would have been able to make the May 1 timeline otherwise."

The ministry said retroactive pricing wouldn't be available, unlike the off-peak price freeze earlier in the pandemic, and Harris said he doesn't expect the province will issue any rebates to customers of companies that introduce the rates later than May 1.

"These organizations were able to look at rolling things out sooner. But, obviously — if you look at Toronto Hydro, London, Centre Wellington, Hearst, Renfrew — there's a dynamic range of large and smaller-scale providers there. I'm very hopeful the Region of Waterloo folks will be able to work to try and get this done as soon as we can," Harris said.

 

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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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Two huge wind farms boost investment in America’s heartland

MidAmerican Energy Wind XI expands Iowa wind power with the Beaver Creek and Prairie farms, 169 turbines and 338 MW, delivering renewable energy, grid reliability, rural jobs, and long-term tax revenue through major investment.

 

Key Points

MidAmerican Energy Wind XI is a $3.6B Iowa wind buildout adding 2,000 MW to enhance reliability, jobs, and tax revenue.

✅ 169 turbines at Beaver Creek and Prairie deliver 338 MW.

✅ Wind supplies 36.6 percent of Iowa electricity generation.

✅ Projects forecast $62.4M in property taxes over 20 years.

 

Power company MidAmerican Energy recently announced the beginning of operations at two huge wind farms in the US state of Iowa.

The two projects, called Beaver Creek and Prairie, total 169 turbines and have a combined capacity of 338 megawatts (MW), enough to meet the annual electricity needs of 140,000 homes in the state.

“We’re committed to providing reliable service and outstanding value to our customers, and wind energy accomplishes both,” said Mike Fehr, vice president of resource development at MidAmerican. “Wind energy is good for our customers, and it’s an abundant, renewable resource that also energizes the economy.”

The wind farms form part of MidAmerican Energy’s major Wind XI project, which will see an extra 2,000MW of wind power built, and $3.6 billion invested amid notable wind farm acquisitions shaping the market by the end of 2019. The company estimates it is the largest economic development project in Iowa’s history.

Iowa is something of a hidden powerhouse in American wind energy. The technology provides an astonishing 36.6 percent of the state’s entire electricity generation and plays a growing role in the U.S. electricity mix according to the American Wind Energy Association (AWEA). It also has the second largest amount of installed capacity in the nation at 6917MW; Texas is first with over 21,000MW.

Along with capital investment, wind power brings significant job opportunities and tax revenues for the state. An estimated 9,000 jobs are supported by the industry, something a U.S. wind jobs forecast stated could grow to over 15,000 within a couple of years.

MidAmerican Energy is also keen to stress the economic benefits of its new giant projects, claiming that they will bring in $62.4 million of property tax revenue over their 20-year lifetime.

Tom Kiernan, AWEA’s CEO, revealed last year that, as the most-used source of renewable electricity in the U.S., wind energy is providing more than five states in the American Midwest with over 20 percent of electricity generation, “a testament to American leadership and innovation”.

“For these states, and across America, wind is welcome because it means jobs, investment, and a better tomorrow for rural communities”, he added.

 

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Britain Prepares for High Winter Heating and Electricity Costs

UK Energy Price Cap drives household electricity bills and gas prices, as Ofgem adjusts unit rates amid natural gas shortages, Russia-Ukraine disruptions, inflation, recession risks, and limited storage; government support offers only short-term relief.

 

Key Points

The UK Energy Price Cap limits per-unit gas and electricity charges set by suppliers and adjusted by Ofgem.

✅ Reflects wholesale natural gas costs; varies quarterly

✅ Protects consumers from sudden electricity and heating bill spikes

✅ Does not cap total annual spend; usage still determines bills

 

The government organization that controls the cost of energy in Great Britain recently increased what is known as a price cap on household energy bills. The price cap is the highest amount that gas suppliers can charge for a unit of energy.

The new, higher cost has people concerned that they may not be able to pay for their gas and electricity this winter. Some might pay as much as $4,188 for energy next year. Earlier this year, the price cap was at $2,320, and a 16% decrease in bills is anticipated in April.

Why such a change?

Oil and gas prices around the world have been increasing since 2021 as economies started up again after the coronavirus pandemic. More business activities required more fuel.

Then, Russia invaded Ukraine in late February, creating a new energy crisis. Russia limited the amount of natural gas it sent to European countries that needed it to power factories, produce electricity and keep homes warm.

Some energy companies are charging more because they are worried that Russia might completely stop sending gas to European countries. And in Britain, prices are up because the country does not produce much gas or have a good way to store it. As a result, Britain must purchase gas often in a market where prices are high, and ministers have discussed ending the gas-electricity price link to ease bills.

Citibank, a U.S. financial company, believes the higher energy prices will cause inflation in Britain to reach 18 percent in 2023, while EU energy inflation has also been driven higher by energy costs this year. And the Bank of England says an economic slowdown known as a recession will start later this year.

Public health and private aid organizations worry that high energy prices will cause a “catastrophe” as Britons choose between keeping their homes warm and eating enough food.

What can government do?

As prices rise, the British government plans to give people between $450 and $1,400 to help pay for energy costs, while some British MPs push to further restrict the price charged for gas and electricity. But the help is seen by many as not enough.

If the government approves more money for fuel, it will probably not come until September, as the energy security bill moves toward becoming law. That is the time the Conservative Party will select a new leader to replace Prime Minister Boris Johnson.

The Labour Party says the government should increase the amount it provides for people to pay for fuel by raising taxes on energy companies. However, the two politicians who are trying to become the next Prime Minister do not seem to support that idea.

Giovanna Speciale leads an organization called the Southeast London Community Energy group. It helps people pay their bills. She said the money will help but it is only a short-term solution to a bigger problem with Britain’s energy system. Because the system is privately run, she said, “there’s very little that the government can do to intervene in this.”

Other European countries are seeing higher energy costs, but not as high, and at the EU level, gas price cap strategies have been outlined to tackle volatility. In France, gas prices are capped at 2021 levels. In Germany, prices are up by 38 percent since last year. However, the government is reducing some taxes, which will make it easier for the average person to buy gas. In Italy, prices are going up, but the government recently approved over $8 billion to help people pay their energy bills.
 

 

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FERC needs to review capacity market performance, GAO recommends

FERC Capacity Markets face scrutiny as GAO flags inconsistent data on resource adequacy and costs, urging performance goals, risk assessment, and better metrics across PJM, ISO-NE, NYISO, and MISO amid cost-recovery proposals.

 

Key Points

FERC capacity markets aim for resource adequacy, but GAO finds weak data and urges goals and performance reviews.

✅ GAO cites inconsistent data on resource adequacy and costs

✅ Calls for performance goals, metrics, and risk assessment

✅ Applies to PJM, ISO-NE, NYISO; MISO market is voluntary

 

Capacity markets may or may not be functioning properly, but FERC can't adequately make that determination, according to the GAO report.

"Available information on the level of resource adequacy ... and related costs in regions with and without capacity markets is not comprehensive or consistent," the report found. "Moreover, consistent data on historical trends in resource adequacy and related costs are not available for regions without capacity markets."

The review concluded that FERC collects some useful information in regions with and without capacity markets, but GAO said it "identified problems with data quality, such as inconsistent data."

GAO included three recommendations, including calling for FERC to take steps to improve the quality of data collected, and regularly assess the overall performance of capacity markets by developing goals for those assessments.

"FERC should develop and document an approach to regularly identify, assess, and respond to risks that capacity markets face," the report also recommended. The commission "has not established performance goals for capacity markets, measured progress against those goals, or used performance information to make changes to capacity markets as needed."

The recommendation comes as the agency is grappling with a controversial proposal to assure cost-recovery for struggling coal and nuclear plants in the power markets. So far, the proposal would only apply to power markets with capacity markets, including PJM Interconnection, the New England ISO, the New York ISO and possibly MISO. However MISO only has a voluntary capacity market, making it unclear how the proposed rule would be applied there. 

 

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