Appalachian Power rate increase approved

By Roanoke Times


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The Virginia State Corporation Commission announced that it has approved for Appalachian Power Co. an increase of 19.3 percent in the base rate that the electric utility charges customers.

However, the utility calculates that the actual base rate increase for an average residential customer will be about 17 percent.

Thus, a customer who uses 1,000 kilowatt hours of electricity pays about $77.42 per month now and will pay about $90.58 a month with a 17 percent increase.

John Shepelwich, a spokesman for Appalachian, said the utility could not reach SCC officials for confirmation but believes the announced increase of 19.3 percent does not consider revenue that the utility is receiving from a fuel factor rate increase in September.

Instead, Shepelwich said, the 19.3 percent increase reflects the $208 million in new annual revenues Appalachian sought when it first applied in May for a rate increase. In October, the utility agreed to a base rate settlement designed to increase revenues by $168 million.

SCC spokesman Andy Farmer, reached after work, said he did not have case details at hand and could not comment.

Meanwhile, the good news for customers is that the approved increase is less than the interim increase of about 22 percent Appalachian started charging customers October 28 and less than the 24 percent it initially sought in May. And customers will receive in a few months credits on their bills reflecting the difference between the 22 percent and 17 percent increases.

Irene Leech is a professor of consumer affairs at Virginia Tech and president of the Virginia Citizens Consumer Council. She said Appalachian has been due a rate increase for some time and understands that its customers have long benefited from comparatively cheap electricity.

Still, she said, an increase of 17 percent or more is going to hurt households already struggling with increasing costs for basic necessities.

"Admittedly, rates have been low, but it's really tough for people when all of this comes down right at the holidays," Leech said. "And, all of a sudden, it's turned cold."

Last month, Mary Martin of Martinsville told SCC commissioners how a significant rate increase would intensify the burdens already affecting households in Henry County and Martinsville, communities hard hit by manufacturing layoffs.

Martin said she was deeply disappointed by the SCC's order.

"It's going to place an enormous burden on everyone in Henry County," Martin said.

People will be unable to pay their bills and will lose their power, she said.

"That's the cold reality of it," Martin said.

Todd Burns, an Appalachian spokesman, said shut-offs of customers' electricity have increased this year, a trend he believes is related to the slowing economy. But he said disconnecting a customer's power is a last resort.

Utility officials have said they know it's a bad time to increase customers' electric bills.

Shepelwich said that the company is grateful for the increase.

"We're pleased. We think it will get us back into a healthier financial position," he said.

SCC regulations allow the utility to recover costs for mandated environmental improvements and other measures. Appalachian has said it is in a precarious financial condition in Virginia and needed to increase revenues.

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Customers on the hook for $5.5 billion in deferred BC Hydro operating costs: report

BC Hydro Deferred Regulatory Assets detail $5.5 billion in costs under rate-regulated accounting, to be recovered from ratepayers, highlighting B.C. Utilities Commission oversight, audit scrutiny, financial reporting impacts, and public utility governance.

 

Key Points

BC Hydro defers costs as regulatory assets to recover from ratepayers, influencing rates and financial reporting.

✅ $5.5B in deferred costs recorded as net regulatory assets

✅ Rate impacts tied to B.C. Utilities Commission oversight

✅ Auditor General to assess accounting and governance

 

Auditor General Carol Bellringer says BC Hydro has deferred $5.5 billion in expenses that it plans to recover from ratepayers in the future, as rates to rise by 3.75% over two years.

Bellringer focuses on the deferred expenses in a report on the public utility's use of rate-regulated accounting to control electricity rates for customers.

"As of March 31, 2018, BC Hydro reported a total net regulatory asset of $5.455 billion, which is what ratepayers owe," says the report. "BC Hydro expects to recover this from ratepayers in the future. For BC Hydro, this is an asset. For ratepayers, this is a debt."

She says rate-regulated accounting is used widely across North America, but cautions that Hydro has largely overridden the role of the independent B.C. Utilities Commission to regulate rates.

"We think it's important for the people of B.C. and our members of the legislative assembly to better understand rate-regulated accounting in order to appreciate the impact it has on the bottom line for BC Hydro, for government as a whole, for ratepayers and for taxpayers, especially following a three per cent rate increase in April 2018," Bellringer said in a conference call with reporters.

Last June, the B.C. government launched a two-phase review of BC Hydro to find cost savings and look at the direction of the Crown utility, amid calls for change from advocates.

The review came shortly after a planned government rate freeze was overturned by the utilities commission, which resulted in a three per cent rate increase in April 2018.

A statement by BC Hydro and the government says a key objective of the review due this month is to enhance the regulatory oversight of the commission.

Bellringer's office will become BC Hydro's auditor next year — and will be assessing the impact of regulation on the utility's financial reporting.

"It is a complex area and confidence in the regulatory system is critical to protect the public interest," wrote Bellringer.

 

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Alberta Carbon tax is gone, but consumer price cap on electricity will remain

Alberta Electricity Rate Cap stays despite carbon tax repeal, keeping the Regulated Rate Option at 6.8 cents/kWh. Levy funds cover market gaps as the UCP reviews NDP policies to maintain affordable utility bills.

 

Key Points

Program capping RRO power at 6.8 cents/kWh, using levy funds to offset market prices while the UCP reviews policy.

✅ RRO cap fixed at 6.8 cents/kWh for eligible customers

✅ Levy funds pay generators when market prices exceed the cap

✅ UCP reviewing NDP policies to ensure affordable rates

 

Alberta's carbon tax has been cancelled, but a consumer price cap on electricity — which the levy pays for — is staying in place for now.

June electricity rates are due out on Monday, about four days after the new UCP government did away with the carbon charge on natural gas and vehicle fuel.

Part of the levy's revenue was earmarked by the previous NDP government to keep power prices at or below 6.8 cents per kilowatt hour under new electricity rules set by the province.

"The Regulated Rate Option cap of 6.8 cents/kWh was implemented by the previous government and currently remains in effect. We are reviewing all policies put in place by the former government and will make decisions that ensure more affordable electricity rates for job-creators and Albertans," said a spokesperson for Alberta's energy ministry in an emailed statement.

Albertans with regulated rate contracts and all City of Medicine Hat utility customers only pay that amount or less, though some Alberta ratepayers have faced deferral-related arrears.

If the actual market price rises above that, the difference is paid to generators directly from levy funds, a buffer that matters as experts warn prices are set to soar later this year.

The government has paid more than $55 million to utilities over the past year ending in March 2019, due to that electricity price cap being in place.

Alberta Energy says the price gap program will continue, at least for the time being, amid electricity policy changes being considered.

 

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Canada's Ambitious Electric Vehicle Goals

Canada 2035 Gasoline Car Ban accelerates EV adoption, zero-emission transport, and climate action, with charging infrastructure, rebates, and industry investment supporting net-zero goals while addressing affordability, range anxiety, and consumer acceptance nationwide.

 

Key Points

A federal policy to end new gas car sales by 2035, boosting EV adoption, emissions goals, and charging infrastructure.

✅ Ends new gas car and light-truck sales by 2035

✅ Expands charging infrastructure and grid readiness

✅ Incentives, rebates, and industry investment drive adoption

 

Canada has set its sights on a bold and transformative goal: to ban the sale of new gasoline-powered passenger cars and light-duty trucks by the year 2035. This ambitious target, announced by the federal government, underscores Canada's commitment to combating climate change and accelerating the adoption of electric vehicles (EVs) nationwide, supported by forthcoming EV sales regulations from Ottawa.

The Federal Initiative

Under the leadership of Prime Minister Justin Trudeau, Canada aims to significantly reduce greenhouse gas emissions from the transportation sector, which accounts for a substantial portion of the country's carbon footprint. The initiative aligns with Canada's broader climate objectives, including achieving net-zero emissions by 2050.

Driving Forces Behind the Decision

The decision to phase out internal combustion engine vehicles reflects growing recognition of the urgency to transition towards cleaner transportation alternatives, even as 2019 electricity from fossil fuels still powered a notable share of Canada's grid. Minister of Environment and Climate Change Jonathan Wilkinson emphasizes the environmental benefits of electric vehicles, citing their potential to lower emissions and improve air quality in urban centers across the country.

Challenges and Opportunities

While the move towards electric vehicles presents promising opportunities for reducing emissions, it also poses challenges. Key considerations include infrastructure development, affordability, and consumer acceptance of EV technology, amid EV shortages and wait times that can influence buying decisions. Addressing these hurdles will require coordinated efforts from government, industry stakeholders, and consumers alike.

Industry Response

The automotive industry plays a crucial role in realizing Canada's EV ambitions. Automakers are increasingly investing in electric vehicle production and innovation to meet evolving consumer demand and regulatory requirements, including cross-border Canada-U.S. collaboration on supply chains. The transition offers opportunities for job creation, technological advancement, and economic growth in the clean energy sector.

Provincial Perspectives

Provinces across Canada are pivotal in facilitating the transition to electric vehicles. Some provinces have already implemented incentives such as rebates for EV purchases, charging infrastructure investments, and policy frameworks to support emissions reduction targets, even as Quebec's EV dominance push faces scrutiny from experts. Collaborative efforts between federal and provincial governments are essential in ensuring a cohesive approach to achieving national EV goals.

Consumer Considerations

For consumers, the shift towards electric vehicles represents a paradigm shift in transportation choices. Factors such as range anxiety, charging infrastructure availability, and upfront costs, with one EV cost survey citing price as the main barrier, remain considerations for prospective buyers. Government incentives and subsidies aim to alleviate some of these concerns and promote widespread EV adoption.

Looking Ahead

As Canada navigates towards a future without gasoline-powered vehicles, stakeholders must work together to overcome challenges and capitalize on opportunities presented by the electric vehicle revolution, even as critics of the 2035 mandate question its feasibility. Continued investments in infrastructure, innovation, and consumer education will be critical in paving the way for a sustainable and prosperous automotive industry.

Conclusion

Canada's commitment to phasing out gasoline-powered vehicles by 2035 marks a pivotal moment in the country's climate action agenda. By embracing electric vehicles, Canada aims to lead by example in combatting climate change, fostering innovation, and building a greener future for generations to come. The success of this ambitious initiative hinges on collective efforts to transform the automotive landscape and accelerate towards a sustainable transportation future.

 

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Tracking Progress on 100% Clean Energy Targets

100% Clean Energy Targets drive renewable electricity, decarbonization, and cost savings through state policies, CCAs, RECs, and mandates, with timelines and interim goals that boost jobs, resilience, and public health across cities, counties, and utilities.

 

Key Points

Policies for cities and states to reach 100% clean power by set dates, using mandates, RECs, and interim goals.

✅ Define eligible clean vs renewable resources

✅ Mandate vs goal framework with enforcement

✅ Timelines with interim targets and escape clauses

 

“An enormous amount of authority still rests with the states for determining your energy future. So we can build these policies that will become a postcard from the future for the rest of the country,” said David Hochschild, chair of the California Energy Commission, speaking last week at a UCLA summit on state and local progress toward 100 percent clean energy.

According to a new report from the UCLA Luskin Center for Innovation, 13 states, districts and territories, as well as more than 200 cities and counties, with standout clean energy purchases by Southeast cities helping drive momentum, have committed to a 100 percent clean electricity target — and dozens of cities have already hit it.

This means that one of every three Americans, or roughly 111 million U.S. residents representing 34 percent of the population, live in a community that has committed to or has already achieved 100 percent clean electricity, including communities like Frisco, Colorado that have set ambitious targets.

“We’re going to look back on this moment as the moment when local action and state commitments began to push the entire nation toward this goal,” said J.R. DeShazo, director of the UCLA Luskin Center for Innovation.

Not all 100 percent targets are alike, however. The report notes that these targets vary based on 1) what resources are eligible, 2) how binding the 100 percent target is, and 3) how and when the target will be achieved.

These distinctions will carry a lot of weight as the policy discussion shifts from setting goals to actually meeting targets. They also have implications for communities in terms of health benefits, cost savings and employment opportunities.

 

100% targets come in different forms

One key attribute is whether a target is based on "renewable" or "clean" energy resources. Some 100 percent targets, like Hawaii’s and Rhode Island’s 2030 plan, are focused exclusively on renewable energy, or sources that cannot be depleted, such as wind, solar and geothermal. But most jurisdictions use the broader term “clean energy,” which can also include resources like large hydroelectric generation and nuclear power.

States also vary in their treatment of renewable energy certificates, used to track and assign ownership to renewable energy generation and use. Unbundled RECs allow for the environmental attributes of the renewable energy resource to be purchased separately from the physical electricity delivery.

The binding nature of these targets is also noteworthy. Seven states, as well as Puerto Rico and the District of Columbia, have passed 100 percent clean energy transition laws. Of the jurisdictions that have passed 100 percent legislation, all but one specifies that the target is a “mandate,” according to the report. Nevada is the only state to call the target a “goal.”

Governors in four other states have signed executive orders with 100 percent clean energy goals.

Target timelines also vary. Washington, D.C. has set the most ambitious target date, with a mandate to achieve 100 percent renewable electricity by 2032. Other states and cities have set deadline years between 2040 and 2050. All "100 percent" state laws, and some city and county policies, also include interim targets to keep clean energy deployment on track.

In addition, some locations have included some form of escape clause. For instance, Salt Lake City, which last month passed a resolution establishing a goal of powering the county with 100 percent clean electricity by 2030, included “exit strategies” in its policy in order to encourage stakeholder buy-in, said Mayor Jackie Biskupski, speaking last week at the UCLA summit.

“We don’t think they’ll get used, but they’re there,” she said.

Other locales, meanwhile, have decided to go well beyond 100 percent clean electricity. The State of California and 44 cities have set even more challenging targets to also transition their entire transportation, heating and cooling sectors to 100 percent clean energy sources, and proposals like requiring solar panels on new buildings underscore how policy can accelerate progress across sectors.

Businesses are simultaneously electing to adopt more clean and renewable energy. Six utilities across the United States have set their own 100 percent clean or carbon-free electricity targets. UCLA researchers did not include populations served by these utilities in their analysis of locations with state and city 100 percent clean commitments.

 

“We cannot wait”

All state and local policies that require a certain share of electricity to come from renewable energy resources have contributed to more efficient project development and financing mechanisms, which have supported continued technology cost declines and contributed to a near doubling of renewable energy generation since 2008.

Many communities are switching to clean energy in order to save money, now that the cost calculation is increasingly in favor of renewables over fossil fuels, as more jurisdictions get on the road to 100% renewables worldwide. Additional benefits include local job creation, cleaner air and electricity system resilience due to greater reliance on local energy resources.

Another major motivator is climate change. The electricity sector is responsible for 28 percent of U.S. greenhouse gas emissions, second only to transportation. Decarbonizing the grid also helps to clean up the transportation sector as more vehicles move to electricity as their fuel source.

“The now-constant threat of wildfires, droughts, severe storms and habitat loss driven by climate change signals a crisis we can no longer ignore,” said Carla Peterman, senior vice president of regulatory affairs at investor-owned utility Southern California Edison. “We cannot wait and we should not wait when there are viable solutions to pursue now.”

Prior to joining SCE on October 1, Peterman served as a member of the California Public Utilities Commission, which implements and administers renewable portfolio standard (RPS) compliance rules for California’s retail sellers of electricity. California’s target requires 60 percent of the state’s electricity to come from renewable energy resources by 2030, and all the state's electricity to come from carbon-free resources by 2045.  

 

How CCAs are driving renewable energy deployment

One way California communities are working to meet the state’s ambitious targets is through community-choice aggregation, especially after California's near-100% renewable milestone underscored what's possible, via which cities and counties can take control of their energy procurement decisions to suit their preferences. Investor-owned utilities no longer purchase energy for these jurisdictions, but they continue to operate the transmission and distribution grid for all electricity users.                           

A second paper released by the Luskin Center for Innovation in recent days examines how community-choice aggregators are affecting levels of renewable energy deployment in California and contributing to the state’s 100 percent target.

The paper finds that 19 CCAs have launched in California since 2010, growing to include more than 160 towns, cities and counties. Of those communities, 64 have a 100 percent renewable or clean energy policy as their default energy program.

Because of these policies, the UCLA paper finds that “CCAs have had both direct and indirect effects that have led to increases in the clean energy sold in excess of the state’s RPS.”

From 2011 to 2018, CCAs directly procured 24 terawatt-hours of RPS-eligible electricity, 11 TWh of which have been voluntary or in excess of RPS compliance, according to the paper.

The formation of CCAs has also had an indirect effect on investor-owned utilities. As customers have left investor-owned utilities to join CCAs, the utilities have been left holding contracts for more renewable energy than they need to comply with California’s clean energy targets, amid rising solar and wind curtailments that complicate procurement decisions. UCLA researchers estimate that this indirect effect of CCA formation has left IOUs holding 13 terawatt-hours in excess of RPS requirements.

The paper concludes that CCAs have helped to accelerate California’s ability to meet state renewable energy targets over the past decade. However, the future contributions of CCAs to the RPS are more uncertain as communities make new power-purchasing decisions and utilities seek to reduce their excess renewable energy contracts.

“CCAs offer a way for communities to put their desire for clean energy into action. They're growing fast in California, one of only eight states where this kind of mechanism is allowed," said UCLA's Kelly Trumbull, an author of the report. "State and federal policies could be reformed to better enable communities to meet local demand for renewable energy.”

 

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BC Hydro suspends new crypto mining connections due to extreme electricity use

BC Hydro Cryptocurrency Mining Suspension pauses new grid connections for Bitcoin data centers, preserving electricity for EVs, heat pumps, and industry electrification, as Site C capacity and megawatt demand trigger provincial energy policy review.

 

Key Points

An 18-month pause on new crypto-mining grid hookups to preserve electricity for EVs, heat pumps, and electrification.

✅ 18-month moratorium on new BC Hydro crypto connections

✅ Preserves capacity for EVs, heat pumps, and industry

✅ 21 pending mines sought 1,403 MW; Site C adds 1,100 MW

 

New cryptocurrency mining businesses in British Columbia are now temporarily banned from being hooked up to BC Hydro’s electrical grid.

The 18-month suspension on new electricity-connection requests is intended to provide the electrical utility and provincial government with the time needed, a move similar to N.B. Power's pause during a crypto review, to create a permanent framework for any future additional cryptocurrency mining operations.

Currently, BC Hydro already provides electricity to seven cryptocurrency mining operations, and six more are in advanced stages of being connected to the grid, with a combined total power consumption of 273 megawatts. These existing operations, unlike the Siwash Creek project now in limbo, will not be affected by the temporary ban.

The electrical utility’s suspension comes at a time when there are 21 applications to open cryptocurrency mining businesses in BC, even as electricity imports supplement the grid during peaks, which would have a combined total power consumption of 1,403 megawatts — equivalent to the electricity needed for 570,000 homes or 2.3 million battery-electric vehicles annually.

In fact, the 21 cryptocurrency mining businesses would completely wipe out the new electrical capacity gained by building the $16 billion Site C hydroelectric dam, alongside two newly commissioned stations that add supply, which has an output capacity of 1,100 megawatts or enough power for the equivalent of 450,000 homes. Site C is expected to be operational by 2025.

Cryptocurrency mining, such as Bitcoin, use a very substantial amount of electricity to operate high-powered computers around the clock, which perform complex cryptographic and math problems to verify transactions. High electricity needs are the result of not only to run the racks of computers, but to provide extreme cooling given the significant heat produced.

“We are suspending electricity connection requests from cryptocurrency mining operators to preserve our electricity supply for people who are switching to electric vehicles, amid BC Hydro's first call for power in 15 years, and heat pumps, and for businesses and industries that are undertaking electrification projects that reduce carbon emissions and generate jobs and economic opportunities,” said Josie Osborne, the BC minister of energy, mines and low carbon innovation, adding that cryptocurrency mining creates very few jobs for the local economy.

Such businesses are attracted to BC due to the availability of its clean, plentiful, and cheap hydroelectricity, which LNG companies continue to seek for their operations as well.

If left unchecked, the provincial government suggests BC Hydro’s long-term electrical capacity could be wiped out by cryptocurrency mining operations, even as debates over going nuclear persist among residents across the province.

 

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Proposed underground power line could bring Iowa wind turbine electricity to Chicago

SOO Green Underground Transmission Line proposes an HVDC corridor buried along Canadian Pacific railroad rights-of-way to deliver Iowa wind energy to Chicago, enhance grid interconnection, and reduce landowner disruption from new overhead lines.

 

Key Points

A proposed HVDC project burying lines along a railroad to move Iowa wind power to Chicago and link two grids.

✅ HVDC link from Mason City, IA, to Plano, IL

✅ Buried in Canadian Pacific railroad right-of-way

✅ Connects MISO and PJM grids for renewable exchange

 

The company behind a proposed underground transmission line that would carry electricity generated mostly by wind turbines in Iowa to the Chicago area said Monday that the $2.5 billion project could be operational in 2024 if regulators approve it, reflecting federal transmission funding trends seen recently.

Direct Connect Development Co. said it has lined up three major investors to back the project. It plans to bury the transmission line in land that runs along existing Canadian Pacific railroad tracks, hopefully reducing the disruption to landowners. It's not unusual for pipelines or fiber optic lines to be buried along railroad tracks in the land the railroad controls.

CEO Trey Ward said he "believes that the SOO Green project will set the standard regarding how transmission lines are developed and constructed in the U.S."

A similar proposal from a different company for an overhead transmission line was withdrawn in 2016 after landowners raised concerns, even as projects like the Great Northern Transmission Line advanced in the region. That $2 billion Rock Island Clean Line was supposed to run from northwest Iowa into Illinois.

The new proposed line, which was first announced in 2017, would run from Mason City, Iowa, to Plano, Ill., a trend echoed by Canadian hydropower to New York projects. The investors announced Monday were Copenhagen Infrastructure Partners, Jingoli Power and Siemens Financial Services.

The underground line would also connect two different regional power operating grids, as seen with U.S.-Canada cross-border transmission approvals in recent years, which would allow the transfer of renewable energy back and forth between customers and producers in the two regions.

More than 36 percent of Iowa's electricity comes from wind turbines across the state.

Jingoli Power CEO Karl Miller said the line would improve the reliability of regional power operators and benefit utilities and corporate customers in Chicago, even amid debates such as Hydro-Quebec line opposition in the Northeast.

 

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