Alberta approves new federal emission rules

By Globe and Mail


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Alberta Premier Ed Stelmach gave a passing grade to Ottawa's new plan to impose stricter emission limits on coal-fired electricity and oil sands projects, leading critics to question just how aggressive the plan actually is.

Environment Minister John Baird released proposed regulations that target Alberta's coal-based electricity system and its booming oil sands development, saying both industries will have to slash greenhouse gas emissions for projects that become operational after 2011.

Mr. Baird warned that U.S. governments - both federal and state levels - are increasingly concerned about buying fuel produced from the oil sands because of its contribution to climate change.

The minister noted that U.S. President George W. Bush recently signed legislation that could prevent the U.S. government and the Defence Department from buying from the oil sands, while states like California are making similar threats.

"The bottom line is the oil sands is an important national resource but we've got to expand it in an environmentally friendly way," he said.

The cornerstone of the federal announcement was a new emphasis on carbon capture and storage technology, in which major industries capture carbon dioxide exhaust and store it underground.

Mr. Baird said all new coal-fired power plants and oil sands projects that come on stream in 2012 or later must virtually eliminate emissions through carbon capture and storage or a combination of other abatement technology and carbon credits by 2018. "We hope to have in place a mass-scale carbon capture and storage system before - well before - 2020," he told reporters in Ottawa yesterday. "We think it's tremendously important."

In Edmonton, Mr. Stelmach said he was pleased that Ottawa was "following Alberta's lead" on regulating greenhouse gas emissions, saying there was ample flexibility in the approach and deadlines.

The Alberta Premier - who has been widely criticized for setting unaggressive emission targets - said he remained concerned that the federal plan could negatively affect the oil and gas sector.

Liberal environment critic David McGuinty said Mr. Stelmach's endorsement spoke volumes about the plan, which the Harper government has portrayed as a get-tough approach. "From a Canadian common sense perspective, people would go: 'Wait a second here. The jurisdiction with the most to lose is seizing upon this announcement and saying it's all good? Something's not right here,' " he said.

As crude oil prices were topping a record $108 (US) a barrel yesterday, the Liberal MP said existing oil sands operations should not be exempt from the plan.

Most environmentalists panned the announcement, saying loopholes make the targets less aggressive than they sound.

"Canada's ambition is a very, very long way from the message that is coming clearly from the scientific climate community about what needs to be done," said Matthew Bramley, a researcher at the Calgary-based Pembina Institute, a non-profit environmental think tank.

He said the target of reducing greenhouse gas emissions to 20 per cent below 2006 levels by 2020 is significantly above the level of the Kyoto Protocol, under which the former Liberal government committed to reducing emissions to 6 per cent below 1990 levels by 2012.

Mr. Bramley noted that British Columbia has prohibited the construction of new coal-fired power plants, while the federal plan allows them until 2012, and even then, gives utilities another six years to implement emission-reduction plans.

He added that oil companies are in the midst of a massive development, and many of the projects are slated to be completed before 2012. Those will face only modest emission targets, he said.

Stephen Hazell, the executive director of the Sierra Club of Canada, praised yesterday's announcement for setting an "ambitious" timeline for adopting new technology. Mr. Hazell said the plan is an improvement over the version released last year, which simply required new facilities to improve their emissions per barrel of oil by 2 per cent a year.

"It's good that it looks like they are going to demand that tar sands operations drastically reduce their greenhouse gases," he said. "Under the previous framework, the oil sands industry was totally off the hook."

Oil industry executives supported in principle the adoption of carbon capture and storage, and many companies are designing their plants to accommodate the technology. But Charlie Fisher, chief executive of Nexen Inc., said government money will be required.

Stephen Kaufman, a Suncor Energy Inc. executive who chaired an industry task force on carbon capture, said the federal plan would impose an undue burden on the industry.

"We think it is quite important for companies to have the flexibility to choose the technology that is right for them, and keeps them competitive on an international basis," Mr. Kaufman said.

Don Lowry, chief executive of Edmonton-based EPCOR Utilities Ltd., said his company is keen to proceed with carbon capture technology, but he questioned whether Alberta electricity users will support the enormous cost.

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Can COVID-19 accelerate funding for access to electricity?

Africa Energy Access Funding faces disbursement bottlenecks as SDG 7 goals demand investment in decentralized solar, minigrids, and rural electrification; COVID-19 pressures donors, requiring faster approvals, standardized documentation, and stronger project preparation and due diligence.

 

Key Points

Financing to expand Africa's electrification, advancing SDG 7 via disbursement to decentralized solar and minigrids.

✅ Accelerates investment for SDG 7 and rural electrification

✅ Prioritizes decentralized solar, minigrids, and utilities

✅ Speeds approvals, standard docs, and project preparation

 

The time frame from final funding approval to disbursement can be the most painful part of any financing process, and the access-to-electricity sector is not spared.

Amid the global spread of the coronavirus over the last few weeks, there have been several funding pledges to promote access to electricity in Africa. In March, the African Development Bank and other partners committed $160 million for the Facility for Energy Inclusion to boost electricity connectivity in Africa through small-scale solar systems and minigrids. Similarly, the Export-Import Bank of the United States allocated $91.5 million for rural electrification in Senegal.

Rockefeller chief wants to redefine 'energy poverty'

Rajiv Shah, president of The Rockefeller Foundation, believes that SDG 7 on energy access lacks ambition. He hopes to drive an effort to redefine it.

Currently, funding is not being adequately deployed to help achieve universal access to energy. The International Energy Agency’s “Africa Energy Outlook 2019” report estimated that an almost fourfold increase in current annual access-to-electricity investments — approximately $120 billion a year over the next 20 years — is required to provide universal access to electricity for the 530 million people in Africa that still lack it.

While decentralized renewable energy across communities, particularly solar, has been instrumental in serving the hardest-to-reach populations, tracking done by Sustainable Energy for All — in the 20 countries with about 80% of those living without access to sustainable energy — suggests that decentralized solar received only 1.2% of the total electricity funding.

The spread of COVID-19 is contributing significantly to Africa’s electricity challenges across the region, creating a surge in the demand for energy from the very important health facilities, an exponential increase in daytime demand as a result of most people staying and working indoors, and a rise from some food processing companies that have scaled up their business operations to help safeguard food security, among others. Thankfully — and rightly so — access-to-electricity providers are increasingly being recognized as “essential service” providers amid the lockdowns across cities.

To start tackling Africa’s electricity challenges more effectively, “funding-ready” energy providers must be able to access and fulfill the required conditions to draw down on the already pledged funding. What qualifies as “funding readiness” is open to argument, but having a clear, commercially viable business and revenue model that is suitable for the target market is imperative.

Developing the skills required to navigate the due-diligence process and put together relevant project documents is critical and sometimes challenging for companies without prior experience. Typically, the final form of all project-related agreements is a prerequisite for the final funding approval.

In addition, having the right internal structures in place — for example, controls to prevent revenue leakage, an experienced management team, a credible board of directors, and meeting relevant regulatory requirements such as obtaining permits and licenses — are also important indicators of funding readiness.

1. Support for project preparation. Programs — such as the Private Financing Advisory Network and GET.invest’s COVID-19 window — that provide business coaching to energy project developers are key to helping surmount these hurdles and to increasing the chances of these projects securing funding or investment. Donor funding and technical-assistance facilities should target such programs.

2. Project development funds. Equity for project development is crucial but difficult to attract. Special funds to meet this need are essential, such as the $760,000 for the development of small-scale renewable energy projects across sub-Saharan Africa recently approved by the African Development Bank-managed Sustainable Energy Fund for Africa.

3. Standardized investment documentation. Even when funding-ready energy project developers have secured investors, delays in fulfilling the typical preconditions to draw down funds have been a major concern. This is a good time for investors to strengthen their technical assistance by supporting the standardization of approval documents and funding agreements across the energy sector to fast-track the disbursement of funds.

4. Bundled investment approvals and more frequent approval sessions. While we implement mechanisms to hasten the drawdown of already pledged funding, there is no better time to accelerate decision-making for new access-to-electricity funding to ensure we are better prepared to weather the next storm. Donors and investors should review their processes to be more flexible and allow for more frequent meetings of investment committees and boards to approve transactions. Transaction reviews and approvals can also be conducted for bundled projects to reduce transaction costs.

5. Strengthened local capacity. African countries must also commit to strengthening the local manufacturing and technical capacity for access-to-electricity components through fiscal incentives such as extended tax holidays, value-added-tax exemptions, accelerated capital allowances, and increased investment allowances.

The ongoing pandemic and resulting impacts due to lack of electricity have further shown the need to increase the pace of implementation of access-to-electricity projects. We know that some of the required capital exists, and much more is needed to achieve Sustainable Development Goal 7 — about access to affordable and clean energy for all — by 2030.

It is time to accelerate our support for access-to-electricity companies and equip them to draw down on pledged funding, while calling on donors and investors to speed up their funding processes to ensure the electricity gets to those most in need.

 

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Russia suspected as hackers breach systems at power plants across US

US Power Grid Cyberattacks target utilities and nuclear plants, probing SCADA, ICS, and business networks at sites like Wolf Creek; suspected Russian actors, malware, and spear-phishing trigger DHS and FBI alerts on critical infrastructure resilience.

 

Key Points

Intrusions on energy networks probing ICS and SCADA, seeking persistence and elevating risks to critical infrastructure.

✅ Wolf Creek nuclear plant targeted; no operational systems breached

✅ Attackers leveraged stolen credentials, malware, and spear-phishing

✅ DHS and FBI issued alerts; utilities enhance cyber resilience

 

Hackers working for a foreign government recently breached at least a dozen US power plants, including the Wolf Creek nuclear facility in Kansas, according to current and former US officials, sparking concerns the attackers were searching for vulnerabilities in the electrical grid.

The rivals could be positioning themselves to eventually disrupt the nation’s power supply, warned the officials, who noted that a general alert, prompting a renewed focus on protecting the U.S. power grid, was distributed to utilities a week ago. Adding to those concerns, hackers recently infiltrated an unidentified company that makes control systems for equipment used in the power industry, an attack that officials believe may be related.

The chief suspect is Russia, according to three people familiar with the continuing effort to eject the hackers from the computer networks. One of those networks belongs to an ageing nuclear generating facility known as Wolf Creek -- owned by Westar Energy Inc, Great Plains Energy Inc, and Kansas Electric Power Cooperative Inc -- on a lake shore near Burlington, Kansas.

The possibility of a Russia connection is particularly worrying, former and current official s say, because Russian hackers have previously taken down parts of the electrical grid in Ukraine and appear to be testing increasingly advanced tools, including cyber weapons to disrupt power grids, to disrupt power supplies.

The hacks come as international tensions have flared over US intelligence agencies’ conclusion that Russia tried to influence the 2016 presidential election, and amid U.S. government condemnation of Russian power-grid hacking in recent advisories. The US, which has several continuing investigations into Russia’s activities, is known to possess digital weapons capable of disrupting the electricity grids of rival nations.

“We don’t pay attention to such anonymous fakes,” Kremlin spokesman Dmitry Peskov said, in response to a request to comment on alleged Russian involvement.

It was unclear whether President Donald Trump was planning to address the cyber attacks at his meeting on Friday with Russian President Vladimir Putin. In an earlier speech in Warsaw, Trump called out Russia’s “destabilising activities” and urged the country to join “the community of responsible nations.”

The Department of Homeland Security and Federal Bureau of Investigation said they are aware of a potential intrusion in the energy sector. The alert issued to utilities cited activities by hackers since May.

“There is no indication of a threat to public safety, as any potential impact appears to be limited to administrative and business networks,” the government agencies said in a joint statement.

The Department of Energy also said the impact appears limited to administrative and business networks and said it was working with utilities and grid operators to enhance security and resilience.

“Regardless of whether malicious actors attempt to exploit business networks or operational systems, we take any reports of malicious cyber activity potentially targeting our nation’s energy infrastructure seriously and respond accordingly,” the department said in an emailed statement.

Representatives of the National Security Council, the Director of National Intelligence and the Nuclear Regulatory Commission declined to comment. While Bloomberg News was waiting for responses from the government, the New York Times reported that hacks were targeting nuclear power stations.

The North American Electric Reliability Corp, a nonprofit that works to ensure the reliability of the continent’s power system, said it was aware of the incident and was exchanging information with the industry through a secure portal.

“At this time, there has been no bulk power system impact in North America,” the corporation said in an emailed statement.

In addition, the operational controls at Wolf Creek were not pierced, according to government officials, even as attackers accessed utility control rooms elsewhere in the U.S., according to separate reports. “There was absolutely no operational impact to Wolf Creek,” Jenny Hageman, a spokeswoman for the nuclear plant, said in a statement to Bloomberg News.

“The reason that is true is because the operational computer systems are completely separate from the corporate network.”

Determining who is behind an attack can be tricky. Government officials look at the sophistication of the tools, among other key markers, when gauging whether a foreign government is sponsoring cyber activities.

Several private security firms, including Symantec researchers, are studying data on the attacks, but none has linked the work to a particular hacking team or country.

“We don’t tie this to any known group at this point,” said Sean McBride, a lead analyst for FireEye Inc, a global cyber security firm. “It’s not to say it’s not related, but we don’t have the evidence at this point.”

US intelligence officials have long been concerned about the security of the country’s electrical grid. The recent attack, striking almost simultaneously at multiple locations, is testing the government’s ability to coordinate an effective response among several private utilities, state and local officials, and industry regulators.

Specialised teams from Homeland Security and the FBI have been scrambled to help extricate the hackers from the power stations, in some cases without informing local and state officials. Meanwhile, the US National Security Agency is working to confirm the identity of the hackers, who are said to be using computer servers in Germany, Italy, Malaysia and Turkey to cover their tracks.

Many of the power plants are conventional, but the targeting of a nuclear facility adds to the pressure. While the core of a nuclear generator is heavily protected, a sudden shutdown of the turbine can trigger safety systems. These safety devices are designed to disperse excess heat while the nuclear reaction is halted, but the safety systems themselves may be vulnerable to attack.

Homeland Security and the FBI sent out a general warning about the cyber attack to utilities and related parties on June 28, though it contained few details or the number of plants affected. The government said it was most concerned about the “persistence” of the attacks on choke points of the US power supply. That language suggests hackers are trying to establish backdoors on the plants’ systems for later use, according to a former senior DHS official who asked not to be identified.

Those backdoors can be used to insert software specifically designed to penetrate a facility’s operational controls and disrupt critical systems, according to Galina Antova, co-founder of Claroty, a New York firm that specialises in securing industrial control systems.

“We’re moving to a point where a major attack like this is very, very possible,” Antova said. “Once you’re into the control systems -- and you can get into the control systems by hacking into the plant’s regular computer network -- then the basic security mechanisms you’d expect are simply not there.”

The situation is a little different at nuclear facilities. Backup power supplies and other safeguards at nuclear sites are meant to ensure that “you can’t really cause a nuclear plant to melt down just by taking out the secondary systems that are connected to the grid,” Edwin Lyman, a nuclear expert with the Union of Concerned Scientists, said in a phone interview.

The operating systems at nuclear plants also tend to be legacy controls built decades ago and don’t have digital control systems that can be exploited by hackers. Wolf Creek, for example, began operations in 1985. “They’re relatively impervious to that kind of attack,” Lyman said.

The alert sent out last week inadvertently identified Wolf Creek as one of the victims of the attack. An analysis of one of the tools used by the hackers had the stolen credentials of a plant employee, a senior engineer. A US official acknowledged the error was not caught until after the alert was distributed.

According to a security researcher who has seen the report, the malware that activated the engineer’s username and password was designed to be used once the hackers were already inside the plant’s computer systems.

The tool tries to connect to non-public computers, and may have been intended to identify systems related to Wolf Creek’s generation plant, a part of the facility typically more modern than the nuclear reactor control room, according to a security expert who asked to note be identified because the alert is not public.

Even if there is no indication that the hackers gained access to those control systems, the design of the malware suggests they may have at least been looking for ways to do so, the expert said.

Stan Luke, the mayor of Burlington, the largest community near Wolf Creek, which is surrounded by corn fields and cattle pastures, said he learned about a cyber threat at the plant only recently, and then only through golfing buddies.

With a population of just 2,700, Burlington boasts a community pool with three water slides and a high school football stadium that would be the envy of any junior college. Luke said those amenities lead back to the tax dollars poured into the community by Wolf Creek, Coffey County’s largest employer with some 1,000 workers, 600 of whom live in the county.

E&E News first reported on digital attacks targeting US nuclear plants, adding it was code-named Nuclear 17. A senior US official told Bloomberg that there was a bigger breach of conventional plants, which could affect multiple regions.

Industry experts and US officials say the attack is being taken seriously, in part because of recent events in Ukraine. Antova said that the Ukrainian power grid has been disrupted at least twice, first in 2015, and then in a more automated attack last year, suggesting the hackers are testing methods.

Scott Aaronson, executive director for security and business continuity at the Edison Electric Institute, an industry trade group, said utilities, grid operators and federal officials were already dissecting the attack on Ukraine’s electric sector to apply lessons in North America before the US government issued the latest warning to “energy and critical manufacturing sectors”. The current threat is unrelated to recently publicised ransomware incidents or the CrashOverride malware, Mr Aaronson said in an emailed statement.

Neither attack in Ukraine caused long-term damage. But with each escalation, the hackers may be gauging the world’s willingness to push back.

“If you think about a typical war, some of the acts that have been taken against critical infrastructure in Ukraine and even in the US, those would be considered crossing red lines,” Antova said.

 

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Philippines Ranks Highest in Coal-Generated Power Dependency

Philippines coal dependency underscores energy transition challenges, climate change risks, and air pollution, as rising electricity demand, fossil fuels, and emissions shape policy shifts toward renewable energy, grid reliability, and sustainable development.

 

Key Points

It is rising reliance on coal for power, driven by demand and cost, with climate, air pollution, and policy risks.

✅ Driven by rising demand, affordability, and grid reliability.

✅ Worsens emissions, air pollution, and public health burdens.

✅ Policy shifts aim at renewable energy, efficiency, and standards.

 

In a striking development, the Philippines has surpassed China and Indonesia to become the nation most dependent on coal-generated power in recent years. This shift highlights significant implications for the country's energy strategy, environmental policies, and its commitment to sustainable development, and comes as global power demand continues to surge worldwide.

Rising Dependency on Coal

The Philippines' increasing reliance on coal-generated power is driven by several factors, including rapid economic growth, rising electricity demand, and regional uncertainties in China's electricity sector that influence fuel markets, and the perceived affordability and reliability of coal as an energy source. Coal has historically been a key component of the Philippines' energy mix, providing a stable supply of electricity to support industrialization and urbanization efforts.

Environmental and Health Impacts

Despite its economic benefits, coal-generated power comes with significant environmental and health costs, especially as soaring electricity and coal use amplifies exposure to pollution. Coal combustion releases greenhouse gases such as carbon dioxide, contributing to global warming and climate change. Additionally, coal-fired power plants emit pollutants such as sulfur dioxide, nitrogen oxides, and particulate matter, which pose health risks to nearby communities and degrade air quality.

Policy and Regulatory Landscape

The Philippines' energy policies have evolved to address the challenges posed by coal dependency while promoting sustainable alternatives. The government has introduced initiatives to encourage renewable energy development, improve energy efficiency, and, alongside stricter emissions standards on coal-fired power plants, is evaluating nuclear power for inclusion in the energy mix to meet future demand. However, balancing economic growth with environmental protection remains a complex and ongoing challenge.

International and Domestic Pressures

Internationally, there is growing pressure on countries to reduce reliance on fossil fuels and transition towards cleaner energy sources as part of global climate commitments under the Paris Agreement, illustrated by the United Kingdom's plan to end coal power within its grid. The Philippines' status as the most coal-dependent nation underscores the urgency for policymakers to accelerate the shift towards renewable energy and reduce carbon emissions to mitigate climate impacts.

Challenges and Opportunities

Transitioning away from coal-generated power presents both challenges and opportunities for the Philippines. Challenges include overcoming entrenched interests in the coal industry, addressing energy security concerns, and navigating the economic implications of energy transition, particularly as clean energy investment in developing nations has recently declined, adding financial headwinds. However, embracing renewable energy offers opportunities to diversify the energy mix, reduce dependence on imported fuels, create green jobs, and improve energy access in remote areas.

Community and Stakeholder Engagement

Engaging communities and stakeholders is crucial in shaping the Philippines' energy transition strategy. Local residents, environmental advocates, industry leaders, and policymakers play essential roles in fostering dialogue, raising awareness about the benefits of renewable energy, and advocating for policies that promote sustainable development and protect public health.

Future Outlook

The Philippines' path towards reducing coal dependency and advancing renewable energy is critical to achieving long-term sustainability and resilience against climate change impacts. By investing in renewable energy infrastructure, enhancing energy efficiency measures, and fostering innovation in clean technologies, as renewables poised to eclipse coal indicate broader momentum, the country can mitigate environmental risks, improve energy security, and contribute to global efforts to combat climate change.

Conclusion

As the Philippines surpasses China and Indonesia in coal-generated power dependency, the nation faces pivotal decisions regarding its energy future. Balancing economic growth with environmental stewardship requires strategic investments in renewable energy, robust policy frameworks, and proactive engagement with stakeholders to achieve a sustainable and resilient energy system. By prioritizing clean energy solutions, the Philippines can pave the way towards a greener and more sustainable future for generations to come.

 

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Nova Scotia Premier calls on regulators to reject 14% electricity rate hike agreement

Nova Scotia Power Rate Increase Settlement faces UARB scrutiny as regulators weigh electricity rates, fuel costs, storm rider provisions, Bill 212 limits, and Muskrat Falls impacts on ratepayers and affordability for residential and industrial customers.

 

Key Points

A deal proposing 13.8% electricity hikes for 2023-2024, before the UARB, covering fuel costs, a storm rider, and Bill 212.

✅ UARB review may set different rates than the settlement

✅ Fuel cost prepayment and hedging incentives questioned

✅ Storm rider shifts climate risk onto ratepayers

 

Nova Scotia Premier Tim Houston is calling on provincial regulators to reject a settlement agreement between Nova Scotia Power and customer groups that would see electricity rates rise by nearly 14% electricity rate hike over the next two years.

"It is our shared responsibility to protect ratepayers and I can't state strongly enough how concerned I am that the agreement before you does not do that," Houston wrote in a letter to the Nova Scotia Utility and Review Board late Monday.

Houston urged the three-member panel to "set the agreement aside and reach its own conclusion on the aforementioned application."

"I do not believe, based on what I know, that the proposed agreement is in the best interest of ratepayers," he said.

The letter does not spell out what his Progressive Conservative government would do if the board accepts the settlement reached last week between Nova Scotia Power and lawyers representing residential, small business and large industrial customer classes.

Other groups also endorsed the deal, although Nova Scotia Power's biggest customer — Port Hawkesbury Paper — did not sign on.

'We're protecting the ratepayers'
Natural Resources Minister Tory Rushton said the province was not part of the negotiations leading up to the settlement.

"As a government or department we had no intel on those conversations that were taking place," he said Tuesday. "So, we saw the information the same as the public did late last week, and right now we're protecting the ratepayers of Nova Scotia, even though the province cannot order Nova Scotia Power to lower rates under current law. We want to make sure that that voice is still heard at the UARB level."

Rushton said he didn't want to presuppose what the UARB will say.

"But I think the premier's been very loud and clear and I believe I have been, too. The ratepayers are at the top of our mind. We have different tools at our [disposal] and we'll certainly do what we can and need to [do] to protect those ratepayers."


The settlement agreement
If approved by regulators, rates would rise by 6.9 per cent in 2023 and 6.9 per cent in 2024 — almost the same amount on the table when hearings before the review board ended in September.

The Houston government later intervened with legislation, known as Bill 212, that capped rates to cover non-fuel costs by 1.8 per cent. It did not cap rates to cover fuel costs or energy efficiency programs.

In a statement announcing the agreement, Nova Scotia Power president Peter Gregg claimed the settlement adhered "to the direction provided by the provincial government through Bill 212."

Consumer advocate Bill Mahody, representing residential customers, told CBC News the proposed 13.8 per cent increase was "a reasonable rate increase given the revenue requirement that was testified to at the hearing."

Settlement 'remarkably' similar to NSP application
The premier disagrees, noting that the settlement and rate application that triggered the rate cap are "remarkably consistent."

He objects to the increased amount of fuel costs rolled into rates next year before the annual true up of actual fuel costs, which are automatically passed on to ratepayers.

"If Nova Scotia Power is effectively paid in advance, what motive do they have to hedge and mitigate the adjustment eventually required," Houston asked in his letter.

He also objected to the inclusion of a storm rider in rates to cover extreme weather, which he said pushed the risk of climate change on to ratepayers.

Premier second-guesses Muskrat Falls approval
Houston also second-guessed the board for approving Nova Scotia Power's participation in the Muskrat Falls hydro project in Labrador.

"The fact that Nova Scotians have paid over $500 million for this project with minimal benefit, and no one has been held accountable, is wrong," he said. "It was this board of the day that approved the contracts and entered the final project into rates."

Ratepayers are committed to paying $1.7 billion for the Maritime Link to bring the green source of electricity into the province, while rate mitigation talks in Newfoundland lack public details for their customers.

Although the Maritime Link was built on time and on budget by an affiliated company, only a fraction of Muskrat Falls hydro has been delivered because of ongoing problems in Newfoundland, including an 18% electricity rate hike deemed unacceptable by the province's consumer advocate.

"I find it remarkable that those contracts did not include different risk sharing mechanisms; they should have had provisions for issues in oversight of project management. Nevertheless, it was approved, and is causing significant harm to ratepayers in the form of increased rates."

Houston notes that because of non-delivery from Muskrat Falls, Nova Scotia Power has been forced to buy much more expensive coal to burn to generate electricity.


Opposition reaction
Opposition parties in Nova Scotia reacted to Houston's letter.

NDP Leader Claudia Chender dismissed it as bluster.

"It exposes his Bill 212 as not really helping Nova Scotians in the way that he said it would," she said. "Nothing in the settlement agreement contravenes that bill. But it seems that he's upset that he's been found out. And so here we are with another intervention in an independent regulatory body."

Liberal Leader Zach Churchill said the government should intervene to help ratepayers directly.

"We just think that it makes more sense to do that directly by supporting ratepayers through heating assistance, lump-sum electricity credits, rebate programs and expanding the eligibility for that or to provide funding directly to ratepayers instead of intervening in the energy market in this way," he said.

The premier's office said that no one was available when asked about an interview on Tuesday.

"The letter speaks for itself," the office responded.

Nova Scotia Power issued a statement Tuesday. It did not directly address Houston's claims.

"The settlement agreement is now with the NS Utility and Review Board," the utility said.

"The UARB process is designed to ensure customers are represented with strong advocates and independent oversight. The UARB will determine whether the settlement results in just and reasonable rates and is in the public interest."

 

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Quebec's electricity ambitions reopen old wounds in Newfoundland and Labrador

Quebec Churchill Falls power deal renewal spotlights Hydro-Que9bec's Labrador hydroelectricity, Churchill River contract extension, Gull Island prospects, and Innu Nation rights, as demand from EV battery manufacturing and the green economy outpaces provincial supply.

 

Key Points

Extending Quebec's low-price Churchill Falls contract to secure Labrador hydro and address Innu Nation rights.

✅ 1969 contract delivers ~30 TWh at very low fixed price.

✅ Newfoundland seeks higher rates, equity, and consultation.

✅ Innu Nation demands benefits, consent, and land remediation.

 

As Quebec prepares to ramp up electricity production to meet its ambitious economic goals, the government is trying to extend a power deal that has caused decades of resentment in Newfoundland and Labrador.

Around 15 per cent of Quebec's electricity comes from the Churchill Falls dam in Labrador, through a deal set to expire in 2041 that is widely seen as unfair. Quebec Premier François Legault not only wants to extend the agreement, he wants another dam on the Churchill River and, for now, has closed the door on nuclear power as an option to help make his province what he has called a "world leader for the green economy."

But renewing that contract "won't be easy," Normand Mousseau, scientific director of the Trottier Energy Institute at Polytechnique Montréal, said in a recent interview. Extending the Churchill Falls deal is not essential to meet Quebec's energy plans, but without it, Mousseau said, "we would have some problems."

The Legault government is enticing global companies, such as manufacturers of electric vehicle batteries, to set up shop in the province and access its hydroelectricity. But demand for Quebec's power has exceeded its supply, and Ontario has chosen not to renew a power-purchase deal with Quebec, limiting the government's vision.

Last month, Quebec's hydro utility released its strategic plan calling for a production increase of 60 terawatt hours by 2035, which represents the installed capacity of three of Hydro-Québec's largest facilities. Churchill Falls produces roughly 30 terawatt hours, and Quebec would need to replace that power if it can't strike a deal to extend the contract, Mousseau said.

If Quebec wants to keep buying power from Churchill Falls, the government is going to have to pay more, said Mousseau, who is also a physics professor at Université de Montréal. "We're paying one-fifth of a cent a kilowatt hour — that's not much," he said.

Under the 1969 contract, Quebec assumed most of the financial risk of building the Churchill Falls dam in exchange for the right to buy power at a fixed price. The deal has generated more than $28 billion for Hydro-Québec; it has returned $2 billion to Newfoundland and Labrador.

That lopsided deal has stoked anti-Quebec sentiment in Newfoundland and Labrador and contributed to nationalist politics, including threats of separation from Canada around a decade and a half ago, when Danny Williams was premier, said Jerry Bannister, a history professor at Dalhousie University.

"We tend to forget what it was like during the Williams era — he hauled down the Canadian flag," Bannister said. "There was a type of angry, combative nationalism which defined energy development. And particularly Muskrat Falls, it was payback, it was revenge."

Power from the Muskrat Falls generating station, also on the Churchill River, would be sold to Nova Scotia instead of Quebec. But that project has suffered technical problems and cost overruns since, and as of June 29, the price of Muskrat Falls had reached $13.5 billion; the province had estimated the total cost would be $7.4 billion when it sanctioned the project in 2012.

Anti-Quebec feelings may have subsided, but Bannister said the Churchill Falls deal continues to influence Newfoundland politics.

In September, Premier Andrew Furey said Legault would have to show him the money(opens in a new tab) to extend th Legault's office said Tuesday that discussions are ongoing, while the Newfoundland and Labrador government said in an emailed statement Thursday that it wants to maximize the value of its "assets and future opportunities" along the Churchill River.

Whatever negotiations are happening, Grand Chief Simon Pokue of the Innu Nation of Labrador(opens in a new tab) said he has been left out of them.

Churchill Falls flooded 6,500 square kilometres of traditional Innu land, Pokue said, adding that in response, the Innu Nation filed a $4 billion lawsuit against Hydro-Québec in 2020, which is ongoing.

"A lot of damage has been done to our lands, our land is flooded and we'll never see it again," Pokue said in a recent interview. "Nobody will ever repair that."

As well, a portion of Muskrat Falls profits was supposed to go to the Innu Nation, but the cost overruns and a refinancing deal between the federal government and Newfoundland and Labrador have limited whatever money they will see.

If Legault wants another dam on the Churchill River, at Gull Island, the Innu Nation needs to be paid the kind of money it was expecting from Muskrat Falls, he said.

"You did it once, but you're not going to do it again," Pokue said. "It's not going to start until we are consulted and involved."

Meanwhile, Quebec may face competition for Churchill Falls power, Mousseau said, with at least one Labrador mining company expressing interest in buying a significant portion of its output — though he added that the dam's capacity could be increased. The low price paid by Quebec has meant there has been little incentive to upgrade the plant's turbines.

As demand for electricity rises across the country, Mousseau said he thinks it would be better for provinces to work together, sharing expertise and costs, for example through NB Power deals to import more Quebec electricity as they look across provincial borders to find the best locations for projects, rather than acting as rivals.

"We need to talk and work with other provinces, and some propose an independent planning body to guide this, but for this you need to build confidence, and there's no confidence from the Newfoundland side with respect to Quebec," he said. "So that's a challenge: how do you work on this relationship that has been broken for 50 years?"e contract, but the two premiers have said little since.

 

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West Coast consumers won't benefit if Trump privatizes the electrical grid

BPA Privatization would sell the Bonneville Power Administration's transmission lines, raising FERC-regulated grid rates for ratepayers, impacting hydropower and the California-Oregon Intertie under the Trump 2018 budget proposal in the Pacific Northwest region.

 

Key Points

Selling Bonneville's transmission grid to private owners, raising rates and returns, shifting costs to ratepayers.

✅ Trump 2018 budget targets BPA transmission assets for sale.

✅ Higher capital costs, taxes, and profit would raise transmission rates.

✅ California-Oregon Intertie and hydropower flows face price impacts.

 

President Trump's 2018 budget proposal is so chock-full of noxious elements — replacing food stamps with "food boxes," drastically cutting Medicaid and Medicare, for a start — that it's unsurprising that one of its most misguided pieces has slipped under the radar.

That's the proposal to privatize the government-owned Bonneville Power Administration, which owns about three-quarters of the high-voltage electric transmission lines in a region that includes California, Washington state and Oregon, serving more than 13.5 million customers. By one authoritative estimate, any such sale would drive up the cost of transmission by 26%-44%.

The $5.2-billon price cited by the Trump administration, moreover, is nearly 20% below the actual value of the Bonneville grid — meaning that a private buyer would pocket an immediate windfall of $1.2 billion, at the expense of federal taxpayers and Bonneville customers.

Trump's plan for Portland, Ore.-based Bonneville is part of a larger proposal to sell off other government-owned electricity bodies, including the Colorado-based Western Area Power Administration and the Oklahoma-based Southwestern Power Administration. But Bonneville is by far the largest of the three, accounting for nearly 90% of the total $5.8 billion the budget anticipates collecting from the sales. The proposal is also part of the administration's

Both plans are said to be politically dead-on-arrival in Washington. But they offer a window into the thinking in the Trump White House.

"The word 'muddle' comes to mind," says Robert McCullough, a respected Portland energy consultant, referring to the justification for the privatization sale included in the Trump budget.

The White House suggests that selling the Bonneville grid would result in lower costs. But that narrative, McCullough wrote in a blistering assessment of the proposal, "displays a severe lack of understanding about the process of setting transmission rates."

McCullough's assessment is an update of a similar analysis he performed when the privatization scheme was first raised by the Trump administration last year. In that analysis issued in June, McCullough said the proposal "raises the question of why these valuable assets would be sold at a discount — and who would get the benefit of the discounted price."

The implications of a sale could be dire for Californians. Bonneville is the majority owner of the California-Oregon Intertie, an electrical transmission system that carries power, including Columbia River-generated hydropower and other clean-energy generation in British Columbia that supports the regional exchange, south to California in the summer and excess California generation to the Pacific Northwest in the winter.

But the idea has drawn fire throughout the region. When it was first broached last year, the Public Power Council, an association of utilities in the Northwest, assailed it as an apparent "transfer of value from the people of the Northwest to the U.S. Treasury," drawing parallels to Manitoba Hydro governance issues elsewhere.

The region's political leaders had especially harsh words for the idea this time around. "Oregonians raised hell last year when Trump tried to raise power bills for Pacific Northwesterners by selling off Bonneville Power, and yet his administration is back at it again," Sen. Ron Wyden (D-Ore.) said after the idea reappeared. "Our investment shouldn't be put up for sale to free up money for runaway military spending or tax cuts for billionaires." Sen. Maria Cantwell (D-Wash.) promised in a statement to work to "stop this bad idea in its tracks."

The notion of privatizing Bonneville predates the Trump administration; it was raised by Bill Clinton and again by George W. Bush, who thought the public would gain if the administration could sell its power at market rates. Both initiatives failed.

The same free-enterprise ideology underlies the Trump proposal. Privatizing the transmission lines "encourages a more efficient allocation of economic resources and mitigates unnecessary risk to taxpayers," the budget asserts. "Ownership of transmission assets is best carried out by the private sector where there are appropriate market and regulatory incentives."

But that's based on a misunderstanding of how transmission rates are set, McCullough says. Transmission is essentially a monopoly enterprise, with rates overseen by the Federal Energy Regulatory Commission based on the grid's costs, and with federal scrutiny of public utilities such as the TVA underscoring that oversight. There's very little in the way of market "incentives" involved in transmission, since no one has come forward to build a competing grid.

Those include the owners' cost of capital — which would be much higher for a private owner than a government agency, McCullough observes, as Hydro One investor uncertainty demonstrates in practice. A private owner, unlike the government-owned Bonneville, also would owe federal income taxes, which would be passed on to consumers.

Then there's the profit motive. Bonneville "currently sells and delivers its power at cost," McCullough wrote last year. "Under a private regime, an investor-owned utility would likely charge a higher rate of return, a pattern seen when UK network profits drew regulatory rebukes."

None of these considerations appears to have been factored into the White House budget proposal. "Either there's an unsophisticated person at the Office of Management and Budget thinking up these numbers himself," McCullough told me, "or there would seem to be ongoing negotiations with an unidentified third party." No such buyer has emerged in the past, however.

What's left is a blind faith in the magic of the market, compounded by ignorance about how the transmission market operates. Put it together, and there's reason to wonder if Trump is even serious about this plan.

 

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