Yemen Signs Deal to Build Nuclear Power Plants

By Associated Press


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The Yemeni government signed an agreement with a U.S. energy company to build nuclear power plants over the next 10 years to generate electricity, official said.

Yemen's plan to build plants to generate 5,000 megawatts of energy follows similar announcements made by other Arab Gulf and Middle East countries to develop peaceful nuclear energy programs.

"The energy issue is a very important issue, and it is the main force that drives our developments," said Prime Minister Ali Mohammed Mujur at a ceremony after the signing of the agreement with Houston-based Powered Corporation.

Yemen, one of the poorest countries in Arab world, is looking to build nuclear plants to generate electricity and to desalinate sea water in order to meet the needs of its urban population and boost the country's industrial development, government officials said.

The Gulf Arab country hopes to diversify and expand its energy resources due to declining oil production. Yemen produces 330,000 barrels a day, down from 480,000 barrels few years ago.

"We are going for a build, own and operate model," said Mustafa Yahia Bahran, Electricity and Energy Minister, referring to a plan that has the company that builds the plants also owning and operating them. The projects will abide by international regulations in compliance with guidelines set by the U.N. nuclear watchdog, officials said.

Bahran said the project will also attract foreign investment and bring Yemen closer to meeting the requirements needed for a full membership in the Gulf Cooperation Council.

The association of energy-rich Arab states in the Persian Gulf includes Saudi Arabia, Kuwait, the United Arab Emirates, Bahrain, Qatar and Oman.

The GCC as well as Jordan, Egypt and Turkey in recent months have announced that they were interested in developing peaceful nuclear programs.

Iran's progress in building its nuclear facilities has sparked a rush among Arab countries to look at programs of their own, raising the possibility of a dangerous proliferation of nuclear technology in the volatile region.

The United States accuses Iran of secretly trying to develop nuclear weapons. Iran denies the claims and says its program is for peaceful purposes including developing electricity.

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Flowing with current, Frisco, Colorado wants 100% clean electricity

Frisco 100% Renewable Electricity Goal outlines decarbonization via Xcel Energy, wind, solar, and battery storage, enabling beneficial electrification and a smarter grid for 100% municipal power by 2025 and community-wide clean electricity by 2035.

 

Key Points

Frisco targets 100% renewable electricity: municipal by 2025, community by 2035, via Xcel decarbonization.

✅ Municipal operations to reach 100% renewable electricity by 2025

✅ Community-wide electricity to be 100% carbon-free by 2035

✅ Partnerships: Xcel Energy, wind, solar, storage, grid markets

 

Frisco has now set a goal of 100-per-cent renewable energy, joining communities on the road to 100% renewables across the country. But unlike some other resolutions adopted in the last decade, this one isn't purely aspirational. It's swimming with a strong current.

With the resolution adopted last week by the town council, Frisco joins 10 other Colorado towns and cities, plus Pueblo and Summit counties, a trend reflected in tracking progress on clean energy targets reports nationwide, in adopting 100-per-cent goals.

The goal is to get the municipality's electricity to 100-per-cent by 2025 and the community altogether by 2035, a timeline aligned with scenarios showing zero-emissions electricity by 2035 is possible in North America.

Decarbonizing electricity will be far easier than transportation, and transportation far easier than buildings. Many see carbon-free electricity as being crucial to both, a concept called "beneficial electrification," and point to ways to meet decarbonization goals that leverage electrified end uses.

Electricity for Frisco comes from Xcel Energy, an investor-owned utility that is making giant steps toward decarbonizing its power supply.

Xcel first announced plans to close its work-horse power plants early to take advantage of now-cheap wind and solar resources plus what will be the largest battery storage project east of the Rocky Mountains. All this will be accomplished by 2026 and will put Xcel at 55 per cent renewable generation in Colorado.

In December, a week after Frisco launched the process that produced the resolution, Xcel announced further steps, an 80 percent reduction in carbon dioxide emissions by 2030 as compared to 2050 levels. By 2050, the company vows to be 100 per cent "carbon-free" energy by 2050.

Frisco's non-binding goals were triggered by Fran Long, who is retired and living in Frisco. For eight years, though, he worked for Xcel in helping shape its response to the declining prices of renewables. In his retirement, he has also helped put together the aspirational goal adopted by Breckenridge for 100-per-cent renewables.

A task force that Long led identified a three-pronged approach. First, the city government must lead by example. The resolution calls for the town to spend $25,000 to $50,000 annually during the next several years to improve energy efficiency in its municipal facilities. Then, through an Xcel program called Renewable Connect, it can pay an added cost to allow it to say it uses 100-per-cent electricity from renewable sources.

Beyond that, Frisco wants to work with high-end businesses to encourage buying output from solar gardens or other devices that will allow them to proclaim 100-per-cent renewable energy. The task force also recommends a marketing program directed to homes and smaller businesses.

Goals of 100-per-cent renewable electricity are problematic, given why the grid isn't 100% renewable today for technical and economic reasons. Aspen Electric, which provides electricity for about two-thirds of the town, by 2015 had secured enough wind and hydro, mostly from distant locations, to allow it to proclaim 100 per cent renewables.

In fact, some of those electrons in Aspen almost certainly originate in coal or gas plants. That doesn't make Aspen's claim wrong. But the fact remains that nobody has figured out how, at least at affordable cost, to deliver 100-per-cent clean energy on a broad basis.

Xcel Energy, which supplies more than 60 per cent of electricity in Colorado, one of six states in which it operates, has a taller challenge. But it is a very different utility than it was in 2004, when it spent heavily in advertising to oppose a mandate that it would have to achieve 10 per cent of its electricity from renewable sources by 2020.

Once it lost the election, though, Xcel set out to comply. Integrating renewables proved far more easily than was feared. It has more than doubled the original mandate for 2020. Wind delivers 82 per cent of that generation, with another 18 per cent coming from community, rooftop, and utility-scale solar.

The company has become steadily more proficient at juggling different intermittent power supplies while ensuring lights and computers remain on. This is partly the result of practice but also of relatively minor technological wrinkles, such as improved weather forecasting, according to an Energy News Network story published in March.

For example, a Boulder company, Global Weather corporation, projects wind—and hence electrical production—from turbines for 10 days ahead. It updates its forecasts every 15 minutes.

Forecasts have become so good, said John T. Welch, director of power operations for Xcel in Colorado, that the utility uses 95 per cent to 98 per cent of the electricity generated by turbines. This has allowed the company to use its coal and natural gas plants less.M

Moreover, prices of wind and then solar declined slowly at first and then dramatically.

Xcel is now comfortable that existing technology will allow it to push from 55 per cent renewables in 2026 to an 80 per cent carbon reduction goal by 2030.

But when announcing their goal of emissions-free energy by mid-century in December, the company's Minneapolis-based chief executive, Ben Fowke, and Alice Jackson, the chief executive of the company's Colorado subsidiary, freely admitted they had no idea how they will achieve it. "I have a lot of confidence they will be developed," Fowke said of new technologies.

Everything is on the table, they said, including nuclear. But also including fossil fuels, if the carbon dioxide can be sequestered. So far, such technology has proven prohibitively expensive despite billions of dollars in federal support for research and deployment. They suggested it might involve new technology.

Xcel's Welch told Energy News Network that he believes solar must play a larger role, and he believes solar forecasting must improve.

Storage technology must also improve as batteries are transforming solar economics across markets. Batteries, such as produced by Tesla at its Gigafactory near Reno, can store electricity for hours, maybe even a few days. But batteries that can store large amounts of electricity for months will be needed in Colorado. Wind is plentiful in spring but not so much in summer, when air conditioners crank up.

Increased sharing of cheap renewable generation among utilities will also allow deeper penetration of carbon-free energy, a dynamic consistent with studies finding wind and solar could meet 80% of demand with improved transmission. Western US states and Canadian provinces are all on one grid, but the different parts are Balkanized. In other words, California is largely its own energy balancing authority, ensuring electricity supplies match electricity demands. Ditto for Colorado. The Pacific Northwest has its own balancing authority.

If they were all orchestrated as one in an expanded energy market across the West, however, electricity supplies and demands could more easily be matched. California's surplus of solar on summer afternoons, for example, might be moved to Colorado.

Colorado legislators in early May adopted a bill that requires the state's Public Utilities Commission to begin study by late this year of an energy imbalance market or regional transmission organization.

 

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Electric Cooperatives, The Lone Shining Utility Star Of The Texas 2021 Winter Storm

Texas Electric Cooperatives outperformed during Winter Storm Uri, with higher customer satisfaction, equitable rolling blackouts, and stronger grid reliability compared to deregulated markets, according to ERCOT-area survey data of regulated utilities and commercial providers.

 

Key Points

Member-owned utilities in Texas delivering power, noted for reliability and fair outages during Winter Storm Uri.

✅ Member-owned, regulated utilities serving local communities

✅ Rated higher for blackout management and communication

✅ Operate outside deregulated markets; align incentives with users

 

Winter Storm Uri began to hit parts of Texas on February 13, 2021 and its onslaught left close to 4.5 million Texas homes and businesses without power, and many faced power and water disruptions at its peak. By some accounts, the preliminary number of deaths attributed to the storm is nearly 200, and the economic toll for the Lone Star State is estimated to be as high as $295 billion. 

The more than two-thirds of Texans who lost power during this devastating storm were notably more negative than positive in their evaluation of the performance of their local electric utility, mirrored by a rise in electricity complaints statewide, with one exception. That exception are the members of the more than 60 electric cooperatives operating within the Texas Interconnection electrical grid, which, in sharp contrast to the customers of the commercial utilities that provide power to the majority of Texans, gave their local utility a positive evaluation related to its performance during the storm.

In order to study Winter Storm Uri’s impact on Texas, the Hobby School of Public Affairs at the University of Houston conducted an online survey during the first half of March of residents 18 and older who live in the 213 counties (91.5% of the state population) served by the Texas power grid, which is managed by the Electric Reliability Council of Texas (ERCOT). 

Three-quarters of the survey population (75%) live in areas with a deregulated utility market, where a specified transmission and delivery utility by region is responsible for delivering the electricity (purchased from one of a myriad of private companies by the consumer) to homes and businesses. The four main utility providers are Oncor, CenterPoint CNP -2.2%, American Electric Power (AEP) North, and American Electric Power (AEP) Central. 

The other 25% of the survey population live in areas with regulated markets, where a single company is responsible for both delivering the electricity to homes and businesses and serves as the only source from which electricity is purchased. Municipal-owned and operated utilities (e.g., Austin Energy, Bryan Texas Utilities, Burnet Electric Department, Denton Municipal Electric, New Braunfels Utilities, San Antonio’s CPS Energy CMS -2.1%) serve 73% of the regulated market. Electric cooperatives (e.g., Bluebonnet Electric Cooperative, Central Texas Electric Cooperative, Guadalupe Valley Cooperative, Lamb County Electric Cooperative, Pedernales Electricity Cooperative, Wood County Electric Cooperative) serve one-fifth of this market (21%), with private companies accounting for 6% of the regulated market.

The overall distribution of the survey population by electric utility providers is: Oncor (38%), CenterPoint (21%), municipal-owned utilities (18%), AEP Central & AEP North combined (12%), electric cooperatives (6%), other providers in the deregulated market (4%) and other providers in the regulated market (1%). 

There were no noteworthy differences among the 31% of Texans who did not lose power during the winter storm in regard to their evaluations of their local electricity provider or their belief that the power cuts in their locale were carried out in an equitable manner.  

However, among the 69% of Texans who lost power, those served by electric cooperatives in the regulated market and those served by private electric utilities in the deregulated market differed notably regarding their evaluation of the performance of their local electric utility, both in regard to their management of the rolling blackouts, amid debates over market reforms to avoid blackouts, and to their overall performance during the winter storm. Those Texans who lost power and are served by electric cooperatives in a regulated market had a significantly more positive evaluation of the performance of their local electric utility than did those Texans who lost power and are served by a private company in a deregulated electricity market. 

For example, only 24% of Texans served by electric cooperatives had a negative evaluation of their local electric utility’s overall performance during the winter storm, compared to 55%, 56% and 61% of those served by AEP, Oncor and CenterPoint respectively. A slightly smaller proportion of Texans served by electric cooperatives (22%) had a negative evaluation of their local electric utility’s performance managing the rolling blackouts during the winter storm, compared to 58%, 61% and 71% of Texans served by Oncor, AEP and CenterPoint, respectively.

Texans served by electric cooperatives in regulated markets were more likely to agree that the power cuts in their local area were carried out in an equitable manner compared to Texans served by commercial electricity utilities in deregulated markets. More than half (52%) of those served by an electric cooperative agreed that power cuts during the winter storm in their area were carried out in an equitable manner, compared to only 26%, 23% and 23% of those served by Oncor, AEP and CenterPoint respectively

The survey data did not allow us to provide a conclusive explanation as to why the performance during the winter storm by electric cooperatives (and to a much lesser extent municipal utilities) in the regulated markets was viewed more favorably by their customers than was the performance of the private companies in the deregulated markets viewed by their customers. Yet here are three, far from exhaustive, possible explanations.

First, electric cooperatives might have performed better (based on objective empirical metrics) during the winter storm, perhaps because they are more committed to their customers, who are effectively their bosses. .  

Second, members of electric cooperatives may believe their electric utility prioritizes their interests more than do customers of commercial electric utilities and therefore, even if equal empirical performance were the case, are more likely to rate their electric utility in a positive manner than are customers of commercial utilities.  

Third, regulated electric utilities where a single entity is responsible for the commercialization, transmission and distribution of electricity might be better able to respond to the type of challenges presented by the February 2021 winter storm than are deregulated electric utilities where one entity is responsible for commercialization and another is responsible for transmission and distribution, aligning with calls to improve electricity reliability across Texas.

Other explanations for these findings may exist, which in addition to the three posited above, await future empirical verification via new and more comprehensive studies designed specifically to study electric cooperatives, large commercial utilities, and the incentives that these entities face under the regulatory system governing production, commercialization and distribution of electricity, including rulings that some plants are exempt from providing electricity in emergencies under state law. 

Still, opinion about electricity providers during Winter Storm Uri is clear: Texans served by regulated electricity markets, especially by electric cooperatives, were much more satisfied with their providers’ performance than were those in deregulated markets. Throughout its history, Texas has staunchly supported the free market. Could Winter Storm Uri change this propensity, or will attempts to regulate electricity lessen as the memories of the storm’s havoc fades? With a hotter summer predicted to be on the horizon in 2021 and growing awareness of severe heat blackout risks, we may soon get an answer.   

 

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BC’s Electric Highway

British Columbia Electric Highway connects urban hubs and remote communities with 1,400+ EV charging stations, fast chargers, renewable energy, and clean transportation infrastructure, easing range anxiety and supporting climate goals across the province.

 

Key Points

A province-wide EV charging network for low-carbon travel with fast chargers in urban, rural and remote areas.

✅ 1,400+ stations across urban, rural, and remote B.C.

✅ Fast-charging, renewable-powered sites cut range anxiety

✅ Supports climate goals and boosts local economies

 

British Columbia has taken a significant step toward sustainable transportation with the completion of its Electric Highway, a comprehensive network of electric vehicle (EV) charging stations strategically placed across the province. This ambitious project not only supports the growing number of EV owners as the province expands EV charging across communities but also plays a crucial role in the province’s efforts to combat climate change and promote clean energy.

The Electric Highway spans from the southern reaches of the province to its northern edges, connecting key urban centers and remote communities alike. With over 1,400 charging stations installed at various locations, the network is designed to accommodate the diverse needs of EV drivers, ensuring they can travel confidently without the fear of running out of charge, with B.C. Hydro expansion in southern B.C. further bolstering coverage.

One of the standout features of the Electric Highway is its accessibility. Charging stations are located not only in urban areas but also in rural and remote regions, allowing residents in those communities to embrace electric vehicles, supported by EV charger rebates available provincewide.

The completion of the Electric Highway comes at a time when EV adoption is on the rise. As more consumers recognize the benefits of electric vehicles—including lower operating costs, reduced greenhouse gas emissions, and decreased dependence on fossil fuels—alongside rebates for home and workplace charging that reduce barriers—demand for charging infrastructure has surged. The Electric Highway provides the essential support needed to facilitate this shift, enabling residents and visitors to travel long distances with ease.

Moreover, the Electric Highway aligns with British Columbia’s climate goals. The province has set ambitious targets to reduce greenhouse gas emissions and transition to a low-carbon economy. By promoting electric vehicles and investing in charging infrastructure, British Columbia aims to lower emissions from the transportation sector, which is one of the largest contributors to climate change, with related efforts including electric ferries that complement road decarbonization. The completion of this highway is a significant milestone in the province’s journey toward a greener future.

The project has also garnered attention for its innovative approach to energy sourcing. Many of the charging stations are powered by renewable energy, further reducing their carbon footprint. This commitment to sustainability not only enhances the environmental benefits of electric vehicles but also reinforces British Columbia’s reputation as a leader in clean energy initiatives, including the $900 million hydrogen project advancing alternative fuels.

In addition to its environmental advantages, the Electric Highway has the potential to boost the local economy. As EV travel becomes more commonplace, businesses along the route can capitalize on increased foot traffic from travelers seeking charging options. This economic uplift is especially important for small towns and rural areas, where tourism and local commerce can thrive with the right infrastructure in place.

Furthermore, the completion of the Electric Highway is expected to catalyze further innovation in the EV sector. As charging technology continues to evolve, the province is poised to be at the forefront of advancements that enhance the EV driving experience. Initiatives such as ultra-fast charging and smart charging solutions could soon become the norm, making electric travel even more convenient.

The provincial government is also focusing on public awareness campaigns to educate residents about the benefits of electric vehicles and how to use the new charging infrastructure. By fostering a greater understanding of EV technology and its advantages, the government hopes to inspire more people to make the switch from gasoline-powered vehicles to electric ones.

In conclusion, the completion of the Electric Highway marks a transformative moment for British Columbia and its commitment to sustainable transportation. By providing a reliable network of charging stations, the province is making electric vehicle travel a reality for everyone, promoting environmental responsibility while supporting local economies. As more British Columbians embrace electric mobility, the Electric Highway stands as a testament to the province’s dedication to creating a cleaner, greener future for generations to come. With this essential infrastructure in place, British Columbia is paving the way for a new era of transportation that prioritizes sustainability and accessibility.

 

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Enbridge Insists Storage Hub Lives On After Capital Power Pullout

Enbridge Alberta CCS Project targets carbon capture and storage in Alberta, capturing emissions from industrial emitters to advance net-zero goals, leveraging carbon pricing, regulatory support, and a hub model despite a key partner's exit.

 

Key Points

A proposed Alberta carbon capture hub by Enbridge to store industrial emissions and support net-zero targets.

✅ Seeks emitters across power, oil and gas, and heavy industry

✅ Backed by carbon pricing, regulation, and net-zero mandates

✅ Faces high capex, storage risk, and anchor-tenant uncertainty

 

Enbridge Inc., a Canadian energy giant, is digging its heels in on its proposed carbon capture and storage (CCS) project in Alberta. This comes despite the recent withdrawal of Capital Power, a major potential emitter that was expected to utilize the CCS technology. Enbridge maintains the project remains viable, but questions linger about its future viability without a cornerstone anchor.

The CCS project, envisioned as a major carbon capture hub in Alberta, aimed to capture emissions from industrial facilities and permanently store them underground. This technology has the potential to play a significant role in reducing greenhouse gas emissions and mitigating the effects of climate change, alongside grid solutions like bridging the Alberta-B.C. electricity gap that can complement decarbonization efforts.

Capital Power's decision to shelve its $2.4 billion Genesee Generating Station project, which was designed to integrate with the CCS hub, threw a wrench into Enbridge's plans. The Genesee project was expected to be a key source of emissions for capture and storage, and its status is being weighed as Ottawa advances the federal coal plan to phase out unabated coal.

Enbridge, however, remains optimistic. The company cites ongoing discussions with other potential emitters interested in utilizing the CCS technology, amid new funding signals such as the U.S. DOE's $110M for CCUS that highlight momentum. They believe the project holds significant value despite Capital Power's departure.

"We are confident in the long-term viability of the project and continue to actively engage with potential customers," said Enbridge spokesperson Rachel Giroux. "Carbon capture and storage is a critical technology for achieving net-zero emissions, and we believe there is a strong business case for our CCS project."

Enbridge's confidence hinges on several factors. Firstly, they believe there is a growing appetite for CCS technology amongst industrial facilities facing increasing pressure to reduce their carbon footprint. Regulations and carbon pricing mechanisms, including new U.S. EPA power plant rules that test CCS readiness, could further incentivize companies to adopt CCS solutions.

Secondly, Enbridge highlights the potential for capturing emissions from not just power plants but also from other industrial sectors like oil and gas production and clean hydrogen projects in Canada, where reforming processes can generate CO2. This broader application could significantly increase the captured carbon volume and strengthen the project's economic viability.

However, skepticism remains. Critics point to the high upfront costs associated with CCS development and the nascent stage of the technology. They argue that without a guaranteed stream of captured emissions, the project might not be financially sound. Additionally, the long-term safety and effectiveness of large-scale carbon storage solutions remain under scrutiny.

The success of Enbridge's CCS project hinges on attracting new emitters. Replacing Capital Power's contribution will be a significant challenge. Enbridge will need to demonstrate the project's economic viability and navigate the complex regulatory landscape surrounding CCS technology.

The Alberta government's position on CCS is crucial. While the government has expressed support for the technology, the level of financial and regulatory incentives offered will significantly impact investor confidence, especially as the IEA net-zero outlook underscores Canada's need for much more electricity. A clear and stable policy framework will be essential for attracting emitters to the project.

The future of Enbridge's CCS project remains uncertain. Capital Power's withdrawal is a setback, but Enbridge's continued commitment suggests they believe the technology holds promise. Whether they can find enough emitters to justify the project's development will be a critical test. The outcome will have significant implications for the future of CCS technology in Alberta and Canada's broader efforts to achieve net-zero emissions, including Canada-Germany clean energy cooperation that seeks to scale low-carbon fuels.

 

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Hydro One launches Ultra-Low Overnight Electricity Price Plan

Ultra-Low Overnight Price Plan delivers flexible electricity pricing from Hydro One and the Ontario Energy Board, with TOU, tiered options, off-peak EV charging savings, balanced billing, and an online calculator to optimize bills.

 

Key Points

An Ontario pricing option with ultra-low night rates, helping Hydro One customers save by shifting usage to off-peak.

✅ Four periods with ultra-low overnight rate for EV charging

✅ Compare TOU vs tiered with Hydro One's online calculator

✅ Balanced billing and due date choice support budget control

 

Hydro One has announced that customers have even more choice and flexibility when it comes to how they are billed for electricity with the company's launch of the Ontario Energy Board's new Ultra-Low Overnight Electricity Price Plan for customers. A new survey of Ontario customers, conducted by Innovative Research Group, shows that 74 per cent of Ontarians find having choice between electricity pricing plans useful.

"As their trusted energy advisor, we want our customers to know we have the insights and tools to help them make the right choice when it comes to their electricity plans," said Teri French, Executive Vice President, Safety, Operations and Customer Experience. "We know that choice and flexibility are important to our customers, and we are proud to now offer them a third option so they can select the plan that best fits their lifestyle."

The same survey revealed that fewer than half of Ontarians are familiar with either tiered or the new ultra-low overnight price plans. To better support its customers Hydro One is providing an online calculator to help them choose which pricing plan best suits their lifestyle. The company also offers additional flexibility and assistance in managing household budgets by providing customers with the ability to choose their billing due date and flatten usage spikes from temperature fluctuations through balanced billing.

During the pandemic, Ontario introduced electricity relief to support families, small businesses and farms, complementing these customer options.

"By offering families and small businesses more choice, we are putting them back in control of their energy bills," said Todd Smith, Minister of Energy. "Starting today Hydro One customers have a new option - the Ultra-Low Electricity Price Plan - which could help them save money each year, while making our province's grid more efficient."

Electricity price plan options

  • New Ultra-Low Overnight price plan (ULO): Designed for customers who use more electricity at night, such as those who charge their electric vehicle, this new price plan can help customers keep costs down and take control of their electricity bill by shifting usage to the ultra-low overnight price period and related off-peak electricity rates when province-wide electricity demand is lower.
  • This plan has four price periods that are the same in the summer as they are in the winter and includes an ultra-low overnight rate.
  • Time-of-Use price plan (TOU): TOU provides customers with more control over their electricity bill by adjusting their usage habits with time-of-use rates used in other jurisdictions as well.
  • In this plan, electricity prices change throughout each weekday, when demand is on-peak, and peak hydro rates can affect overall costs.
  • Tiered price plan (RPP): Tiered pricing provides customers with the flexibility to use electricity at any time of day at the same low price up until the threshold is exceeded during the month, after that usage is charged at a higher price.
  • For residential customers, the winter period (November 1 – April 30) threshold is 1,000 kWh per month and the summer period (May 1 – October 31) threshold is 600 kWh per month. 
  • For small business customers, the threshold is 750 kWh throughout the year, while broader stable electricity pricing supports industrial and commercial companies.

 

 

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New Texas will bill electric vehicle drivers an extra $200 a year

Texas EV Registration Fee adds a $200 annual charge under Senate Bill 505, offsetting lost gasoline tax revenue to the State Highway Fund, impacting electric vehicle owners at registration and renewals across Texas.

 

Key Points

A $200 yearly charge on electric vehicles to replace lost gasoline tax revenue and support Texas Highway Fund road work.

✅ $200 due at registration or renewal; $400 upfront on new EVs.

✅ Enacted by Senate Bill 505 to offset lost gasoline tax revenue.

✅ Advocates propose mileage-based fees; limited $2,500 rebates exist.

 

Plano resident Tony Federico bought his Tesla five years ago in part because he hated spending lots of money on gas, and Supercharger billing changes have also influenced charging expenses. But that financial calculus will change slightly on Sept. 1, when Texas will start charging electric vehicle drivers an additional fee of $200 each year.

“It just seems like it’s arbitrary, with no real logic behind it,” said Federico, 51, who works in information technology. “But I’m going to have to pay it.”

Earlier this year, state lawmakers passed Senate Bill 505, which requires electric vehicle owners to pay the fee when they register a vehicle or renew their registration, even as fights for control over charging continue among utilities, automakers and retailers. It’s being imposed because lawmakers said EV drivers weren’t paying their fair share into a fund that helps cover road construction and repairs across Texas.

The cost will be especially high for those who purchase a new electric vehicle and have to pay two years of registration, or $400, up front.

Texas agencies estimated in a 2020 report that the state lost an average of $200 per year in federal and state gasoline tax dollars when an electric vehicle replaced a gas-fueled one. The agencies called the fee “the most straightforward” remedy.

Gasoline taxes go to the State Highway Fund, which the Texas Department of Transportation calls its “primary funding source.” Electric vehicle drivers don’t pay those taxes, though, because they don’t use gasoline.

Still, EV drivers do use the roads. And while electric vehicles make up a tiny portion of cars in Texas for now, that fraction is expected to increase, raising concerns about state power grids in the years ahead.

Many environmental and consumer advocates agreed with lawmakers that EV drivers should pay into the highway fund but argued over how much, and debates over fairer vehicle taxes are surfacing abroad as well.

Some thought the state should set the fee lower to cover only the lost state tax dollars, rather than both the state and federal money, because federal officials may devise their own scheme. Others argued the state should charge nothing because EVs help reduce greenhouse gas emissions that drive climate change and can offer budget benefits for many owners.

“We urgently need to get more electric vehicles on the road,” said Luke Metzger, executive director of Environment Texas. “Any increased fee could create an additional barrier for Texans, and particularly more moderate- to low-income Texans, to make that transition.”

Tom “Smitty” Smith, the executive director of the Texas Electric Transportation Resources Alliance, advocated for a fee based on how many miles a person drove their electric car, which would better mirror how the gas taxes are assessed.

Texas has a limited incentive that could offset the cost: It offers rebates of up to $2,500 for up to 2,000 new hydrogen fuel cell, electric or hybrid vehicles every two years. Adrian Shelley, Public Citizen’s Texas office director, recommended that the state expand the rebates, noting that state-level EV benefits can be significant.

In the Houston area, dealer Steven Wolf isn’t worried about the fee deterring potential customers from buying the electric Ford F-150 Lightning and Mustang Mach-E vehicles he sells. Electric cars are already more expensive than comparable gasoline-fueled cars, and charging networks compete for drivers, he said.

 

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