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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Tesla (TSLA) Wants to Become an Electricity Retailer

Tesla Energy Ventures Texas enters the deregulated market as a retail electricity provider, leveraging ERCOT, battery storage, solar, and grid software to enable virtual power plants and customer energy trading with Powerwall and Megapack assets.

 

Key Points

Tesla Energy Ventures Texas is Tesla's retail power unit selling grid and battery energy and enabling solar exports.

✅ ERCOT retail provider; sells grid and battery-stored power

✅ Uses Powerwall/Megapack; supports virtual power plants

✅ Targets Tesla owners; enables solar export and trading

 

Last week, Tesla Energy Ventures, a new subsidiary of electric car maker Tesla Inc. (TSLA), filed an application to become a retail electricity provider in the state of Texas. According to reports, the company plans to sell electricity drawn from the grid to customers and from its battery storage products. Its grid transaction software may also enable customers for its solar panels to sell excess electricity back to the smart grid in Texas.1

For those who have been following Tesla's fortunes in the electric car industry, the Palo Alto, California-based company's filing may seem baffling. But the move dovetails with Tesla's overall ambitions for its renewable energy business, as utilities face federal scrutiny of climate goals and electricity rates.

Why Does Tesla Want to Become an Electricity Provider?
The simple answer to that question is that Tesla already manufactures devices that produce and store power. Examples of such devices are its electric cars, which come equipped with lithium ion batteries, and its suite of battery storage products for homes and enterprises. Selling power generated from these devices to consumers or to the grid is a logical next step.


Tesla's move will benefit its operations. The filing states that it plans to build a massive battery storage plant near its manufacturing facility in Austin. The plant will provide the company with a ready and cheap source of power to make its cars.

Tesla's filing should also be analyzed in the context of the Texas grid. The state's electricity market is fully deregulated, unlike regions debating grid privatization approaches, and generated about a quarter of its overall power from wind and solar in 2020.2 The Biden administration's aggressive push toward clean energy is only expected to increase that share.

After a February fiasco in the state grid resulted in a shutdown of renewable energy sources and skyrocketing natural gas prices, Texas committed to boosting the role of battery storage in its grid. The Electricity Reliability Council of Texas (ERCOT), the state's grid operator, has said it plans to install 3,008 MW of battery storage by the end of 2022, a steep increase from the 225 MW generated at the end of 2020.3 ERCOT's proposed increase in installation represents a massive market for Tesla's battery unit.

Tesla already has considerable experience in this arena. It has built battery storage plants in California and Australia and is building a massive battery storage unit in Houston, according to a June Bloomberg report.4 The unit is expected to service wholesale power producers. Besides this, the company plans to "drum up" business among existing customers for its batteries through an app and a website that will allow them to buy and sell power among themselves, a model also being explored by Octopus Energy in international talks.

Tesla Energy Ventures: A Future Profit Center?
Tesla's foray into becoming a retail electricity provider could boost the top line for its energy services business, even as issues like power theft in India highlight retail market challenges. In its last reported quarter, the company stated that its energy generation and storage business brought in $810 million in revenues.

Analysts have forecast a positive future for its battery storage business. Alex Potter from research firm Piper Sandler wrote last year that battery storage could bring in more than $200 billion per year in revenue and grow up to a third of the company's overall business.5

Immediately after the news was released, Morningstar analyst Travis Miller wrote that Tesla does not represent an immediate threat to other major players in Texas's retail market, where providers face strict notice obligations illustrated when NT Power was penalized for delayed disconnection notices, such as NRG Energy, Inc. (NRG) and Vistra Corp. (VST). According to him, the company will initially target its own customers to "complement" its offerings in electric cars, battery, charging, and solar panels.6

Further down the line, however, Tesla's brand name and resources may work to its advantage. "Tesla's brand name recognition gives it an advantage in a hypercompetitive market," Miller wrote, adding that the car company's entry confirmed the firm's view that consumer technology or telecom companies will try to enter retail energy markets, where policy shifts like Ontario rate reductions can shape customer expectations.

 

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5 ways Texas can improve electricity reliability and save our economy

Texas Power Grid Reliability faces ERCOT blackouts and winter storm risks; solutions span weatherization, natural gas coordination, PUC-ERCOT reform, capacity market signals, demand response, grid batteries, and geothermal to maintain resilient electricity supply.

 

Key Points

Texas Power Grid Reliability is ERCOT's ability to keep electricity flowing during extreme weather and demand spikes.

✅ Weatherize power plants and gas supply to prevent freeze-offs

✅ Merge PUC and Railroad Commission for end-to-end oversight

✅ Pay for firm capacity, demand response, and grid storage

 

The blackouts in February shined a light on the fragile infrastructure that supports modern life. More and more, every task in life requires electricity, and no one is in charge of making sure Texans have enough.

Of the 4.5 million Texans who lost power last winter, many of them also lost heat and at least 100 froze to death. Wi-Fi stopped working and phones soon lost their charges, making it harder for people to get help, find someplace warm to go or to check in on loved ones.

In some places pipes froze, and people couldn’t get water to drink or flush after power and water failures disrupted systems, and low water pressure left some health care facilities unable to properly care for patients. Many folks looking for gasoline were out of luck; pumps run on electricity.

But rather than scouting for ways to use less electricity, we keep plugging in more things. Automatic faucets and toilets, security systems and locks. Now we want to plug in our cars, so that if the grid goes down, we have to hope our Teslas have enough juice to get to Oklahoma.

The February freeze illuminated two problems with electricity sufficiency. First, power plants had mechanical failures, triggering outages for days. But also, Texans demanded a lot more electricity than usual as heaters kicked on because of the cold. The ugly truth is, the Texas power grid probably couldn’t have generated enough electricity to meet demand, even if the plants kept whirring. And that is what should chill us now.

The stories of the people who died because the electricity went out during the freeze are difficult to read. A paletero and cotton-candy vendor well known in Old East Dallas, Leobardo Torres Sánchez, was found dead in his armchair, bundled in quilts beside two heaters that had no power.

Arnulfo Escalante Lopez, 41, and Jose Anguiano Torres, 28, died from carbon monoxide poisoning after using a gas-powered generator to heat their apartment in Garland.

Pramod Bhattarai, 23, a college student from Nepal, died from carbon monoxide after using a charcoal grill to heat his home in Houston, according to news reports. And Loan Le, 75; Olivia Nguyen, 11; Edison Nguyen, 8; and Colette Nguyen, 5, died in Sugar Land after losing control of a fire they started in the fireplace to keep warm.

A 65-year-old San Antonio man with esophageal cancer died after power outages cut off supply from his oxygen machine. And local Abilene media reported that a man died in a local hospital when a loss of water pressure prevented staff from treating him.

Gloria Jones of Hillsboro, 87, was living by herself, healthy and social. According to the Houston Chronicle, as the cold weather descended, she told her friends and family she was fine. But when her children checked on her after she didn’t answer her phone, they found her on the floor beside her bed. Hospital workers tried to warm her, but they soon pronounced her dead.

Officials said in July that 210 people died because of the freezing weather, including those who died in car crashes and other weather-related causes, but that figure will be updated. The Department of State Health Services said most of those deaths were due to hypothermia.


Policy recommendation: Weatherize power plants and fuel suppliers

Texas could have avoided those deaths if power plants had worked properly. It’s mechanically possible to generate electricity in freezing temperatures; the Swedes and Finns have electricity in winter. But preparing equipment for the winter costs money, and now that the Public Utility Commission set new requirements for plant owners to weatherize equipment, we expect better reliability.

The PUC officials certainly expect better performance. Chairman Peter Lake earlier this month promised: “We go into this winter knowing that because of all these efforts the lights will stay on.”

Yet, there’s no matching requirement to weatherize key fuel supplies for natural gas-fired power plants. While the PUC and the Electric Reliability Council of Texas were busy this year coming up with standards and enforcement processes, the Texas Railroad Commission, which regulates oil and gas production, was not.

The Railroad Commission is working to ensure that natural gas producers who supply power plants have filed the proper paperwork so that they do not lose electricity in a blackout, rendering them unable to provide vital fuel. But weatherization regulations will not happen for some months, not in time for this winter.


Policy recommendation: Combine the state’s Public Utility Commission and Railroad Commission into one energy agency

Electricity and natural gas regulators came to realize the importance of natural gas suppliers communicating their electricity needs with the PUC to avoid getting cut off when the fuel is needed the most. Not last year; they realized this ten years ago, when the same thing happened and triggered a day of rolling outages.

Why did it take a decade for the companies regulated by one agency to get their paperwork in order with a separate agency? It makes more sense for a single agency to regulate the entire energy process, from wellhead to lightbulb. (Or well-to-wheel, as cars increasingly need electricity, too.)

Over the years, various legislative sunset commissions have recommended combining the agencies, with different governance suggestions, none of which passed the Legislature. We urge lawmakers in 2023 to take up the idea in earnest, hammer out the governance details, and make sure the resulting agency has the heft and resources to regulate energy in a way that keeps the industry healthy and holds it accountable.


Policy recommendation: Incentivize building more power plants

Regardless, if energy companies in February had operated their equipment exactly right, the lights likely would have still gone out. Perhaps for a shorter period, perhaps in a more shared way, allowing people to keep homes above freezing and phones charged between rolling blackouts. But Texas was heading for trouble.

Before the winter freeze, ERCOT anticipated Texas would have 74,000 MW of power generation capacity for the winter of 2021. That’s less than the usual summer fleet as some plants go down for maintenance in the winter, but sufficient to meet their wildest predictions of winter electricity demand. The power generation on hand for the winter would have met the historic record winter demand, at 65,918 MW. Even in ERCOT’s planning scenario with extreme generator failures, the grid had enough capacity.

But during the second week of February, as weather forecasts became more dire, grid operators began rapidly hiking their estimates of electricity demand. On Valentine’s Day, ERCOT estimated demand would rise to 75,573 MW in the coming week.

Clearly that is more demand than all of Texas’ winter power generation fleet of 74,000 MW could handle. Demand never reached that level because ERCOT turned off service to millions of customers when power plants failed.

This raises questions about whether the Texas grid has enough power plants to remain resilient as climate change brings more frequent bouts of extreme weather and blackout risks across the U.S. Or if we have enough power to grow, as more people and companies, more homes and businesses and manufacturing plants, move to Texas.

What a shame if the Texas Miracle, our robust and growing economy, died because we ran out of electricity.

This is no exaggeration. In November, ERCOT released its seasonal assessment of whether Texas will have enough electricity resources for the coming winter. If weather is normal, yes, Texas will be in good shape. But if extreme weather again pushes Texas to use an inordinate amount of electricity for heat, and if wind and solar output are low, there won’t be enough. In that scenario, even if power plants mostly continue to operate properly, we should brace for outages.

Further, there are few investors planning to build more power plants in Texas, other than solar and wind. Renewable plants have many good qualities, but reliability isn’t one of them. Some investors are building grid-scale batteries, a technology that promises to add reliability to the grid.

How come power plant developers aren’t building more generators, especially with flat electricity demand in many markets today?


Policy recommendation: Incentivize reliability

The Texas electrical grid, independent of the rest of the U.S., operates as a competitive market. No regulator plans a power plant; investors choose to build plants based on expectations of profit.

How it works is, power generators offer their electricity into the market at the price of their choosing. ERCOT accepts the lowest bids first, working up to higher bids as demand for power increases in the course of a day.

The idea is that Texans always get the lowest possible price, and if prices rise high, investors will build more power plants. Basic supply and demand. When the market was first set up, this worked pretty well, because the big, reliable baseload generators, the coal and nuclear industries, were the cheapest to operate and bid their power at prices that kept them online all the time. The more agile natural gas-fired plants ramped up and down to meet demand minute-by-minute, at higher prices.

Renewable energy disrupts the market in ways that are great, generating cheap, clean power that has forced some high-polluting coal plants to mothball. But the disruption also undermines reliability. Wind and solar plants are the cheapest and quickest power generation to build and they have the lowest operating cost, allowing them to bid very low prices into the power market. Wind tends to blow hardest in West Texas at night, so the abundance of wind turbines has pushed many of those old baseload plants out of the market.

That’s how markets work, and we’re not crying for coal plant operators. But ERCOT has to figure out how to operate the market differently to keep the lights on.

The PUC announced a slew of electricity market reforms last week to address this very problem, including new to market pricing and an emergency reliability service for ERCOT to contract for more back-up power. These changes cost money, but failing to make any changes could cost more lives.

Texas became the No. 1 wind state thanks in part to a smart renewable energy credit system that created financial incentives to erect wind turbines. But those credits mean that sometimes at night, wind generators bid electricity into the market at negative prices, because they will make money off of the renewable energy credits.

It’s time for the Legislature to review the credit program to determine if it’s still needed, of a similar program could be added to incentivize reliability. The market-based program worked better than anyone could have expected to produce clean energy. Why not use this approach to create what we need now: clean and reliable energy?

We were pleased that PUC commissioners discussed last week an idea that would create a market for reliable power generation capacity by adding requirements that power market participants meet a standard of reliability guarantees.

A market for reliable electricity capacity will cost more, and we hope regulators keep the requirements as modest as possible. Renewable requirements were modest, but turned out to be powerful in a competitive market.

We expect a reliability program to be flexible enough that entrepreneurs can participate with new technology, such as batteries or geothermal energy or something that hasn’t been invented yet, rather than just old reliable fossil fuels.

We also welcome the PUC’s review of pricing rules for the market. Commissioners intend for a new pricing formula to offer early price signals of pending scarcity, to allow time for industrial customers to reduce consumption or suppliers to ramp up. This is intriguing, but we hope the final implementation keeps market interventions at a minimum.

We witnessed in February a scenario in which extremely high prices on the power market did nothing to attract more electricity into the market. Power plants broke down; there was no way to generate more power, no matter how high market prices went. So the PUC was silly to intervene in the market and keep prices artificially high; the outcome was billions of dollars of debt and a proposed electricity market bailout that electricity customers will end up paying.

Nor did this PUC pricing intervention prompt power generation developers to say: “I tell you what, let’s build more plants in Texas.” In the next few years, ERCOT can expect more solar power generation to come online, but little else.

Natural gas plant operators have told the PUC that market price signals show that a new plant wouldn’t be profitable. Natural gas plants are cheaper and faster to build than nuclear reactors; if those developers cannot figure out how to make money, then the prospect of a new nuclear reactor in Texas is a fantasy, even setting aside the environmental and political opposition.


Policy proposal: Use less energy

Politicians like to imagine that technology will solve our energy problem. But the quickest, cheapest, cleanest solution to all of our energy problems is to use less. Investing some federal infrastructure money to make homes more energy efficient would cut energy use, and could help homes retain heat in an emergency.

The PUC’s plan to offer more incentives for major power users to reduce demand in a grid emergency is a good idea. Bravo – next let’s take this benefit to the masses.

Upgrading building codes to require efficiency for office buildings and apartments can help, and might have prevented the frozen pipes in so many multifamily housing units that left people without water.

When North Texas power-line utility Oncor invested in smart grid technology in past decades, part of the promise was to help users reduce demand when electricity prices rise or in emergencies. A review and upgrade of the smart technology could allow more customers to benefit from discounts in exchange for turning things off when electricity supply is tight.

Problem is, we seem to be going in the opposite direction as consumers. Forget turning off the TV and unplugging the coffee machine as we leave the house each morning; now everything is always-on and always connected to Wi-Fi. Our appliances, electronics and the services that operate them can text us when anything interesting happens, like the laundry finishes or somebody opens the patio door or the first season of Murder She Wrote is available for streaming.

As Texans plug in electric vehicles, we will need even more power generation capacity. Researchers at the University of Texas at Austin estimated that if every Texan switched to an electric vehicle, demand for electricity would rise about 30%.

Texans will need to think realistically and rationally about where that electricity is going to come from. Before we march toward a utopian vision of an all-electric world, we need to make sure we have enough electricity.

Getting this right is a matter of life and death for each of one us and for Texas.

 

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Iran turning thermal power plants to combined cycle to save energy

Iran Combined-Cycle Power Plants drive energy efficiency, cut greenhouse gases, and expand megawatt capacity by converting thermal units; MAPNA-led upgrades boost grid reliability, reduce fuel use, and accelerate electricity generation growth nationwide.

 

Key Points

Upgraded thermal plants that reuse waste heat to boost efficiency, cut emissions, and add capacity to Iran's grid.

✅ 27 thermal plants converted; 160 more viable units identified

✅ Adds 12,600 MW capacity via heat recovery steam generators

✅ Combined-cycle share: 31.2% of 80.509 GW capacity

 

Iran has turned six percent of its thermal power plans into combined cycle plants in order to reduce greenhouse gases and save energy, with potential to lift thermal plants' PLF under rising demand, IRNA reported, quoting an energy official.

According to the MAPNA Group’s Managing Director Abbas Aliabadi, so far 27 thermal power plants have been converted to combined-cycle ones, aligning with Iran’s push to transmit power to Europe as a regional hub.

“The conversion of a thermal power plant to a combined cycle one takes about one to two years, however, it is possible for us to convert all the country’s thermal power plants into combined cycle plants over a five-year period.

Currently, a total of 478 thermal power plants are operating throughout Iran, of which 160 units could be turned into combined cycle plants. In doing so, 12,600 megawatts will be added to the country’s power capacity, supporting ongoing exports such as supplying a large share of Iraq's electricity under existing arrangements.

Related cross-border work includes deals to rehabilitate Iraq's power grid that support future exchanges.

As reported by IRNA on Wednesday, Iran’s Nominal electricity generation capacity has reached 80,509 megawatts (80.509 gigawatts), and it is deepening energy cooperation with Iraq to bolster regional reliability. The country increased its electricity generation capacity by 500 megawatts (MW) compared to the last year (ended on March 20).

Currently, with a total generation capacity of 25,083 MW (31.2 percent) combined cycle power plants account for the biggest share in the country’s total power generation capacity followed by gas power plants generating 29.9 percent, amid global trends where renewables are set to eclipse coal and regional moves such as Israel's coal reduction signal accelerating shifts. EF/MA

 

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Electrifying Manitoba: How hydro power 'absolutely revolutionized' the province

Manitoba Electrification History charts arc lights, hydroelectric dams, Winnipeg utilities, transmission lines, rural electrification, and Manitoba Hydro to today's wind, solar, and EV transition across the provincial power grid, driving modernization and reliability.

 

Key Points

Manitoba's power evolution from arc lights to hydro and rural electrification, advancing wind and solar on a modern grid.

✅ 1873 Winnipeg arc light predates Edison and Bell.

✅ 1919 Act built transmission lines, rural electrification.

✅ Hydroelectric dams reshaped lands and affected First Nations.

 

The first electric light in Manitoba was turned on in Winnipeg in 1873, but it was a century ago this year that the switch was flipped on a decision that would bring power to the fingertips of people across the province.

On March 12, 1873, Robert Davis — who owned the Davis House hotel on Main Street, about a block from Portage Avenue — used an electric arc light to illuminate the front of his building, according to A History of Electric Power in Manitoba, published by Manitoba Hydro.

That type of light used an an inert gas in a glass container to create an electric arc between two metal electrodes.

"The lamp in front of the Davis Hotel is quite an institution," a Manitoba Free Press report from the day said. "It looks well and guides the weary traveller to a haven of rest, billiards and hot drinks."

A ladder crew from the Winnipeg Electric Street Railway Company working on an electric trolley line in 1905. (I.F. Allen/Manitoba Hydro archives)

The event took place six years before Thomas Edison's first incandescent lamp was invented and three years before the first complete sentence was spoken over the telephone by Alexander Graham Bell.

"Electrification probably had a bigger influence on the lives of Manitobans than virtually anything else," said Gordon Goldsborough, head researcher with the Manitoba Historical Society.

"It's one of the most significant changes in the lives of Manitobans ever, because basically it transformed so many aspects of their lives. It wasn't just one thing — it touched pretty much every aspect of life."

 

Winnipeg gets its 1st street lamps

In the pioneer days of lighting and street railway transportation in Winnipeg, multiple companies formed in an effort to take advantage of the new utility: Winnipeg Gas Company, Winnipeg General Power Company, Manitoba Electric and Gas Light Company, and The North West Electric Light and Power Company.

In October 1882, the first four street lamps, using electric arc lights, were turned on along Main Street from Broadway to the CPR crossing over the Assiniboine River.

They were installed privately by P.V. Carroll, who came from New York to establish the Manitoba Electric Light & Power Company and try to win a contract for illuminating the rest of the city's streets.

He didn't get it. Newspaper reports from the time noted many outages and other problems and general disappointment in the quality of the light.

Instead, the North West Electric Light and Power Company won that contract and in June 1883 it lit up the streets.

Workers erect a wooden hydro pole beside the Belmont Hotel in 1936. Belmont is a small community southeast of Brandon. (Manitoba Hydro archives)

Over the years, other companies would bring power to the city as it became more reliable, including the Winnipeg Electric Street Railway Company (WERCo), which built the streetcar system and sold electric heat, light and power.

But it was the Brandon Electric Light Company that first tapped into a new source of power — hydro. In 1900, a dam was built across the Minnedosa River (now known as the Little Saskatchewan River) in western Manitoba, and the province's first hydroelectric generating station was created.

The first transmission line was also built, connecting the station with Brandon.

By 1906, WERCo had taken over the Winnipeg General Power Company and the Manitoba Electric and Gas Light Company, and changed its name to the Winnipeg Electric Railway Company. Later, it became the Winnipeg Electric Company, or WECo.

It also took a cue from Brandon, building a hydroelectric plant to provide more power. The Pinawa dam site operated until 1951 and is now a provincial park.

The Minnedosa River plant was the first hydroelectric generating station in Manitoba. (Manitoba Hydro archives)

The City of Winnipeg Hydroelectric System was also formed in 1906 as a public utility to combat the growing power monopoly held by WECo, and to get cheaper power. The city had been buying its supply from the private company "and the City of Winnipeg didn't quite like that price," said Bruce Owen, spokesman for Manitoba Hydro.

So the city funded and built its own dam and generating station site on the Winnipeg River in Pointe du Bois — about 125 kilometres northeast of Winnipeg — which is still in operation today.

"All of a sudden, not only did we have street lights … businesses had lights, power was supplied to homes, people no longer had to cook on wood stoves or walk around with kerosene lanterns. This city took off," said Owen.

"It helped industry grow in the city of Winnipeg. Within a few short years, a second plant had to be built, at Slave Falls."

 

Lighting up rural Manitoba

While the province's two biggest cities enjoyed the luxury of electricity and the conveniences it brought, the patchwork of power suppliers had also created a jumble of contracts with differing rates and terms, spurring periodic calls for a western Canadian electricity grid to improve coordination.

Meanwhile, most of rural Manitoba remained in the dark.

The Pinawa Dam was built by the Winnipeg Electric Street Railway Company in 1906 and operated until 1951. (Manitoba Hydro archives)

The Pinawa Dam site now, looking like some old Roman ruins. (Darren Bernhardt/CBC)

That began to change in 1919 when the Manitoba government passed the Electric Power Transmission Act, with the aim of supplying rural Manitoba with electrical power. The act enabled the construction of transmission lines to carry electricity from the Winnipeg River generating stations to communities all over southern Manitoba.

It also created the Manitoba Power Commission, predecessor to today's Manitoba Hydro, to purchase power from the City of Winnipeg — and later WECo — to supply to those other communities.

The first transmission line, a 97-kilometre link between Winnipeg and Portage la Prairie, opened in late 1919, and modern interprovincial projects like Manitoba-Saskatchewan power line funding continue that legacy today. The power came from Pointe du Bois to a Winnipeg converter station that still stands at the corner of Stafford Street and Scotland Avenue, then went on to Portage la Prairie.

"That's the remarkable thing that started in 1919," said Goldsborough.

Every year after that, the list of towns connected to the power grid became longer "and gradually, over the early 20th century, the province became electrified," Goldsborough said.

"You'd see these maps that would spider out across the province showing the [lines] that connected each of these communities — a precursor to ideas like macrogrids — to each other, and it was really quite remarkable."

By 1928, 33 towns were connected to the Manitoba Power Commission grid. That rose to 44 by 1930 and 140 by 1939, according to the Manitoba Historical Society.

 

Power on the farm

Still, one group who could greatly use electricity for their operations — farmers — were still using lanterns, steam and coal for light, heat and power.

"The power that came to the [nearest] town didn't extend to them," said Goldsborough.

It was during the Second World War, as manual labour was hard to come by on farms, that the Manitoba Power Commission recognized the gap in its grid.

It met with farmers to explain the benefits electricity could bring and surveyed their interest. When the war ended in 1945, the farm electrification process got underway.

Employees, their spouses, and children pose for a photo outside of Great Falls generating station in 1923. (Manitoba Hydro archives)

Farmers were taught wiring techniques and about the use of motors for farm equipment, as well as about electric appliances and other devices to ease the burden of domestic life.

"The electrification of the 1940s and '50s absolutely revolutionized rural life," said Goldsborough.

"Farmers had to provide water for all those animals and in a lot of cases [prior to electrification] they would just use a hand pump, or sometimes they'd have a windmill. But these were devices that weren't especially reliable and they weren't high capacity."

Electric motors changed everything, from pumping water to handling grain, while electric heat provided comfort to both people and animals.

Workers build a hydro transmission line tower in an undated photo from Manitoba Hydro. (Manitoba Hydro archives)

"Now you could have heat lamps for your baby chickens. They would lose a lot of chickens normally, because they would simply be too cold," Goldsborough said.

Keeping things warm was important, but so too was refrigeration. In addition to being able to store meat in summer, it was "something to prolong the life of dairy products, eggs, anything," said Manitoba Hydro's Owen.

"It's all the things we take for granted — a flick of a switch to turn the lights on instead of walking around with a lantern, being able to have maybe a bit longer day to do routine work because you have light."

Agriculture was the backbone of the province but it was limited without electricity, said Owen.

Connecting it to the grid "brought it into the modern age and truly kick-started it to make it a viable part of our economy," he said. "And we still see that today."

In 1954, when the farm electrification program ended, Manitoba was the most wired of the western provinces, with 75 per cent of farms and 100,000 customers connected.

The success of the farm electrification program, combined with the post-war boom, brought new challenges, as the existing power generation could not support the new demand.

The three largest players — City Hydro, WECo and the Manitoba Power Commission, along with the provincial government  — created the Manitoba Hydro-Electric Board in 1949 to co-ordinate generation and distribution of power.

A float in a Second World War victory parade represents a hydroelectric dam and the electricity it generates to power cities. (Manitoba Hydro archives)

More hydroelectric generating stations were built and more reorganizations took place. WECo was absorbed by the board and its assets split into separate companies — Greater Winnipeg Gas and Greater Winnipeg Transit.

Its electricity distribution properties were sold to City Hydro, which became the sole distributor in central Winnipeg. The Manitoba Power Commission became sole distributor of electricity in the suburbs and the rest of Manitoba.

 

Impacts on First Nations

Even as the lives of many people in the province were made easier by the supply of electricity, many others suffered from negative impacts in the rush of progress.

Many First Nations were displaced by hydro dams, which flooded their ancestral lands and destroyed their traditional ways of life.

"And we hear stories about the potential abuses that occurred," said Goldsborough. "So you know, there are there pluses but there are definitely minuses."

In the late 1950s, the Manitoba Power Commission continued to grow and expand its reach, this time moving into the north by buying up private utilities in The Pas and Cranberry Portage.

In 1961, the provincial government merged the commission with the Manitoba Hydro-Electric Board to create Manitoba Hydro.

In 1973, 100 years after the first light went on at that Main Street hotel, the last of the independent power utilities in the province — the Northern Manitoba Power Company Ltd. — was taken over by Hydro.

Winnipeg Hydro, previously called City Hydro, joined the fold in 2002.

Today, Manitoba Hydro operates 15 generating stations and serves 580,262 electric power customers in the province, as well as 281,990 natural gas customers.

 

New era

And now, as happened in 1919, a new era in electricity distribution is emerging as alternative sources of power — wind and solar — grow in popularity, and as communities like Fort Frances explore integrated microgrids for resilience.

"There's a bit of a clean energy shift happening," said Owen, adding use of biomass energy — energy production from plant or animal material — is also expanding.

"And there's a technological change going on and that's the electrification of vehicles. There are only really several hundred [electric vehicles] in Manitoba on the streets right now. But we know at some point, with affordability and reliability, there'll be a switch over and the gas-powered internal combustion engine will start to disappear."

'We're just a little behind here': Manitoba electric vehicle owners call for more charging stations

That means electrical utilities around the world are re-examining their capabilities, as climate change increasingly stresses grids, said Owen.

"It's coming [and we need to know], are we in a position to meet it? What will be the demands on the system on a path to a net-zero grid by 2050 nationwide?" he said.

"It may not come in my lifetime, but it is coming."

 

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Should California Fund Biofuels or Electric Vehicles?

California Biofuels vs EV Subsidies examines tradeoffs in decarbonization, greenhouse gas reductions, clean energy deployment, charging infrastructure, energy security, lifecycle emissions, and transportation sector policy to meet climate goals and accelerate sustainable mobility.

 

Key Points

Policy tradeoffs weighing biofuels and EVs to cut GHGs, boost energy security, and advance clean transportation.

✅ Near-term blending cuts emissions from existing fleets

✅ EVs scale with a cleaner grid and charging buildout

✅ Lifecycle impacts and costs guide optimal subsidy mix

 

California is at the forefront of the transition to a greener economy, driven by its ambitious goals to reduce greenhouse gas emissions and combat climate change. As part of its strategy, the state is grappling with the question of whether it should subsidize out-of-state biofuels or in-state electric vehicles (EVs) to meet these goals. Both options come with their own sets of benefits and challenges, and the decision carries significant implications for the state’s environmental, economic, and energy landscapes.

The Case for Biofuels

Biofuels have long been promoted as a cleaner alternative to traditional fossil fuels like gasoline and diesel. They are made from organic materials such as agricultural crops, algae, and waste, which means they can potentially reduce carbon emissions in comparison to petroleum-based fuels. In the context of California, biofuels—particularly ethanol and biodiesel—are viewed as a way to decarbonize the transportation sector, which is one of the state’s largest sources of greenhouse gas emissions.

Subsidizing out-of-state biofuels can help California reduce its reliance on imported oil while promoting the development of biofuel industries in other states. This approach may have immediate benefits, as biofuels are widely available and can be blended with conventional fuels to lower carbon emissions right away. It also allows the state to diversify its energy sources, improving energy security by reducing dependency on oil imports.

Moreover, biofuels can be produced in many regions across the United States, including rural areas. By subsidizing out-of-state biofuels, California could foster economic development in these regions, creating jobs and stimulating agricultural innovation. This approach could also support farmers who grow the feedstock for biofuel production, boosting the agricultural economy in the U.S.

However, there are drawbacks. The environmental benefits of biofuels are often debated. Critics argue that the production of biofuels—particularly those made from food crops like corn—can contribute to deforestation, water pollution, and increased food prices. Additionally, biofuels are not a silver bullet in the fight against climate change, as their production and combustion still release greenhouse gases. When considering whether to subsidize biofuels, California must also account for the full lifecycle emissions associated with their production and use.

The Case for Electric Vehicles

In contrast to biofuels, electric vehicles (EVs) offer a more direct pathway to reducing emissions from transportation. EVs are powered by electricity, and when coupled with renewable energy sources like solar or wind power, they can provide a nearly zero-emission solution for personal and commercial transportation. California has already invested heavily in EV infrastructure, including expanding its network of charging stations and exploring how EVs can support grid stability through vehicle-to-grid approaches, and offering incentives for consumers to purchase EVs.

Subsidizing in-state EVs could stimulate job creation and innovation within California's thriving clean-tech industry, with other states such as New Mexico projecting substantial economic gains from transportation electrification, and the state has already become a hub for electric vehicle manufacturers, including Tesla, Rivian, and several battery manufacturers. Supporting the EV industry could further strengthen California’s position as a global leader in green technology, attracting investment and fostering growth in related sectors such as battery manufacturing, renewable energy, and smart grid technology.

Additionally, the environmental benefits of EVs are substantial. As the electric grid becomes cleaner with an increasing share of renewable energy, EVs will become even greener, with lower lifecycle emissions than biofuels. By prioritizing EVs, California could further reduce its carbon footprint while also achieving its long-term climate goals, including reaching carbon neutrality by 2045.

However, there are challenges. EV adoption in California remains a significant undertaking, requiring major investments in infrastructure as they challenge state power grids in the near term, technology, and consumer incentives. The cost of EVs, although decreasing, still remains a barrier for many consumers. Additionally, there are concerns about the environmental impact of lithium mining, which is essential for EV batteries. While renewable energy is expanding, California’s grid is still reliant on fossil fuels to some degree, and in other jurisdictions such as Canada's 2019 electricity mix fossil generation remains significant, meaning that the full emissions benefit of EVs is not realized until the grid is entirely powered by clean energy.

A Balancing Act

The debate between subsidizing out-of-state biofuels and in-state electric vehicles is ultimately a question of how best to allocate California’s resources to meet its climate and economic goals. Biofuels may offer a quicker fix for reducing emissions from existing vehicles, but their long-term benefits are more limited compared to the transformative potential of electric vehicles, even as some analysts warn of policy pitfalls that could complicate the transition.

However, biofuels still have a role to play in decarbonizing hard-to-abate sectors like aviation and heavy-duty transportation, where electrification may not be as feasible in the near future. Thus, a mixed strategy that includes both subsidies for EVs and biofuels may be the most effective approach.

Ultimately, California’s decision will likely depend on a combination of factors, including technological advancements, 2021 electricity lessons, and the pace of renewable energy deployment, and the state’s ability to balance short-term needs with long-term environmental goals. The road ahead is not easy, but California's leadership in clean energy will be crucial in shaping the nation’s response to climate change.

 

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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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