PUC commissioners visit Comanche plant

By Knight Ridder Tribune


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Many of the people who played a role in hammering out a compromise between environmental groups and Xcel Energy had a chance to see the results of their labor, touring the Comanche Station power plant where work is under way on a 750-megawatt generator.

When the new unit is finished, Comanche will be Xcel's largest Colorado plant. The three members of Colorado's Public Utilities Commission - Ron Binz, Polly Page and Carl Miller - and more than 30 staff members from the PUC and the Office of Consumer Counsel traveled to Pueblo to tour the plant.

The group was about 45 minutes late because of a flat tire and at the beginning of a presentation by Xcel officials, Binz jokingly told the power company executives, "If you think you're having a bad day, how would you like to be the bus company, regulated by the PUC, that was supposed to get us here?"

In 2004, the PUC approved an agreement between Xcel and a number of groups including the Sierra Club and Better Pueblo, that provided for more strict pollution controls on the entire Pueblo plant along with efforts to mitigate other air quality issues in the area.

In return for Xcel's promises to improve the two existing 350-megawatt units here, the groups agreed not to fight approval by the PUC or the Colorado Department of Public Health and Environment, which had to issue an air permit.

The state officials saw at close hand the equipment being installed that will reduce sulfur dioxide and nitrogen oxide emissions at the plant to levels lower than they are now, even with the third unit running. New processes in the bag houses where exhaust is filtered also will reduce mercury emissions.

Tim Farmer, Comanche 3 project director, said that the new unit should be running by fall 2009.

The $1.3 billion project has provided hundreds of jobs for skilled union workers with $250 million of the total cost going to pay wages. Farmer said that employment should peak in February and March at 1,400 workers and then start to decline.

Bechtel is starting to recruit a similar work force for the mustard agent destruction program at the Pueblo Chemical Depot, but Farmer said that the Comanche work should be finishing up as Bechtel's project starts to grow. It hasn't been easy to find workers, he said. Pipefitters and boilermakers were in short supply, and 10-hour days Monday through Friday are the norm as the company tries to make do with overtime.

Farmer said workers are not asked to do longer shifts for safety reasons. Work is being done on all elements of the new unit, the boiler, turbine building and cooling towers, while other crews are retrofitting units 1 and 2 with the new pollution control equipment. Commodity prices also have gone up since work began, especially copper and aluminum, but much of what was needed was purchased early, he said.

The new plant will add about 40 jobs to Comanche's 137-person work force, and plant manager Frank Arellano said many have been brought in so they would be ready to go when the unit is finished.

The new generator will be more effective than the two already in operation, using supercritical water that can drive turbines at much greater efficiencies. The coal used will be ground to a finer powder to make it burn better.

Xcel, Farmer said, also is working to recycle the water it uses to cool its system. The company had to increase its contract with the Pueblo Board of Water Works to handle the needs of the third unit, but it also is installing new systems to reuse water that is now discharged into the St. Charles River.

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Sask. sets new record for power demand

SaskPower Summer Power Demand Record hits 3,520 MW as heat waves drive electricity consumption; grid capacity, renewables expansion, and energy efficiency tips highlight efforts to curb greenhouse gas emissions while meeting Saskatchewan's growing load.

 

Key Points

The latest summer peak load in Saskatchewan: 3,520 MW, driven by heat, with plans to expand capacity and lower emissions.

✅ New peak surpasses last August by 50 MW to 3,520 MW.

✅ Capacity target: 7,000 MW by 2030 with more renewables.

✅ Tips: AC settings, close blinds, delay heat-producing chores.

 

As the mercury continues to climb in Saskatchewan, where Alberta's summer electricity record offers a regional comparison, SaskPower says the province has set a new summer power demand record.

The Crown says the new record is 3,520 megawatts. It’s an increase of 50 megawatts over the previous record, or enough electricity for 50,000 homes.

“We’ve seen both summer and winter records set every year for a good while now. And if last summer is any indication, we could very well see another record before temperatures cool off heading into the fall,” said SaskPower Vice President of Transmission and Industrial Services Kory Hayko in a written release. “It’s not impossible we’ll break this record again in the coming days. It’s SaskPower’s responsibility to ensure that Saskatchewan people and businesses have the power they need to thrive. That’s what drives our investment of $1 billion every year, as outlined in our annual report, to modernize and grow the province’s electrical system.”

The previous summer consumption record of 3,740 megawatts was set last August, and similar extremes in the Yukon electricity demand highlight broader demand pressures this year. The winter demand record remains higher at 3,792 megawatts, set on Dec. 29, 2017.

SaskPower says it plans to expand its generation capacity from 4,500 megawatts now to 7,000 megawatts in 2030, with a focus on decreasing greenhouse gas emissions and doubling renewable electricity by 2030 as part of its strategy.

To reduce power bills, the Crown suggests turning down or programming air conditioning when residents aren’t home, inspecting the air conditioner to make sure it is operating efficiently, keeping blinds closed to keep out direct sunlight, delaying chores that produce heat and making sure electronics are turned off when people leave the room.

The new record beats the previous summer peak of 3,470 MW, set last August after also being broken twice in July. The winter demand record is still higher at 3,792 MW, which was set on December 29, 2017. To meet growing power demand, and amid projections that Manitoba's electrical demand could double in the next 20 years, SaskPower is expanding its generation capacity from approximately 4,500 MW now to 7,000 MW by 2030 while also reducing greenhouse gas emissions by 40 per cent from 2005 levels. To accomplish this, we will be significantly increasing the amount of renewables on our system.

Cooling and heating represents approximately a quarter of residential power bills. To reduce consumption and power bills during heat waves, SaskPower’s customers can:

Turn down or program the air conditioning when no one is home (for every degree that air conditioning is lowered for an eight-hour period, customers can save up to two per cent on their power costs);

Consider having their air conditioning unit inspected to make sure it is operating efficiently;

Keep the heat out by closing blinds and drapes, especially those with direct sunlight;

Delay chores that produce heat and moisture, like dishwashing and laundering, until the cooler parts of the day or evening; and

As with any time of the year, make sure lights, televisions and other electronics are turned off when no one's in the room. For example, a modern gaming console can use as much power as a refrigerator.

 

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Ontario introduces new fixed COVID-19 hydro rate

Ontario Electricity COVID-19 Recovery Rate sets a fixed price of 12.8 cents/kWh, replacing time-of-use billing and aligning costs across off-peak, mid-peak, and on-peak periods per Ontario Energy Board guidance through Oct. 31.

 

Key Points

A flat 12.8 cents/kWh electricity price in Ontario that temporarily replaces time-of-use rates from June 1 to Oct. 31.

✅ Fixed 12.8 cents/kWh, all hours, June 1 to Oct. 31

✅ Higher than off-peak 10.1, lower than mid/on-peak

✅ Based on Ontario Energy Board average cost

 

Ontario residents will now have to pay a fixed electricity price that is higher than the off-peak hydro rate many in the province have been allowed to pay so far due to the pandemic. 

The announcement, which was made in a news release on Saturday, comes after the Ontario government suspended the normal “time-of-use” billing system on March 24 and as electricity rates are about to change across Ontario. 

The government moved all customers onto the lowest winter rate in response to the pandemic as emergency measures meant more people would be at home during the middle of the day when electricity costs are the highest. 

Now, the government has introduced a new “COVID-19 recovery rate” of 12.8 cents per kilowatt hour at all times of the day. The fixed price will be in place from June 1 to Oct. 31. 

The fixed price is higher than the winter off-peak price, which stood at 10.1 per kilowatt hour. However, it is lower than the mid-peak rate of 14.4 per kilowatt hour and the high-peak rate of 20.8 per kilowatt hour, even though typical bills may rise as fixed pricing ends for many households. 

“Since March 24, 2020, we have invested just over $175 million to deliver emergency rate relief to residential, farm and small business electricity consumers by suspending time-of-use electricity pricing,” Greg Rickford, the minister of energy, northern development and mines, said in a news release. 

“This investment was made to protect the people of Ontario from a marked increase in electricity rates as they did their part by staying home to prevent the further spread of the virus.”

Rickford said that the COVID-19 recovery rate is based on the average cost of electricity set by the Ontario Energy Board. 

“This fixed rate will continue to suspend time-of-use prices in a fiscally responsible manner,” he said. "Consumers will have greater flexibility to use electricity when they need it without paying on-peak and mid-peak prices, and some may benefit from ultra-low electricity rates under new time-of-use options."

 

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EU draft shows plan for more fixed-price electricity contracts

EU Electricity Market Reform advances two-way CfDs, PPAs, and fixed-price tariffs to cut volatility, support renewables and nuclear, stabilize investor revenues, and protect consumers from price spikes across wholesale power markets.

 

Key Points

An EU plan expanding two-way CfDs, PPAs, and fixed-price contracts to curb price swings and support low-carbon power.

✅ Two-way CfDs return excess revenues to consumers

✅ Boosts PPAs and fixed-price retail options

✅ Targets renewables, nuclear; limits fossil exposure

 

The European Union wants to expand the use of contracts that pay power plants a fixed price for electricity, a draft proposal showed, as part of an electricity market revamp to shield European consumers from big price swings.

The European Commission pledged last year to reform the EU's electricity market rules, after record-high gas prices, caused by cuts to Russian flows, sent power prices soaring, prompting debates over gas price cap strategies in response.

A draft of the EU executive's proposal, seen by Reuters on Tuesday and due to be published on Mar. 16, steered clear of the deep redesign of the electricity market that some member states have called for, even as nine EU countries opposed sweeping reforms as a fix earlier in the crisis, suggesting instead limited changes to nudge countries towards more predictable, fixed-price power contracts.

If EU countries want to support new investments in wind, solar, geothermal, hydropower and nuclear electricity, for example - a point over which France and Germany have wrestled - they should use a two-way contract for difference (CfD) or an equivalent contract, the draft said.

The aim is to provide a stable revenue stream to investors, and help make consumers' energy bills less volatile, even though rolling back electricity prices is tougher than it appears. Restricting this support to renewable and low-carbon electricity also aims to speed up Europe's shift away from fossil fuels.

Two-way CfDs offer generators a fixed "strike price" for their electricity, regardless of the price in short-term energy markets. If the market price is above the CfD strike price, then the extra revenue the generator receives should be handed out to final electricity consumers, the draft EU document said.

Countries should also make it easier for power buyers to sign power purchase agreements (PPA) - another type of long-term contract to directly buy electricity from a generator.

Governments should also make sure consumers have access to fixed-price electricity contracts - echoing France's new electricity pricing scheme to reassure Brussels - giving them the option to avoid a contract that would expose them to volatile prices swings in energy markets, the draft said.

If European energy prices were to spike to extreme levels again, the Commission suggested allowing national governments to temporarily intervene to fix prices while weighing emergency measures to limit prices where needed, and offer consumers and small businesses a share of their electricity at a lower price.

 

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As New Zealand gets serious about climate change, can electricity replace fossil fuels in time?

New Zealand Energy Transition will electrify transport and industry with renewables, grid-scale solar, wind farms, geothermal, batteries, demand response, pumped hydro, and transmission upgrades to manage dry-year risk and winter peak loads.

 

Key Points

A shift to renewables and smart demand to decarbonise transport and industry while ensuring reliable, affordable power.

✅ Electrifies transport and industrial heat with renewables

✅ Uses demand response, batteries, and pumped hydro for resilience

✅ Targets 99%+ renewable supply, managing dry-year and peak loads

 

As fossil fuels are phased out over the coming decades, the Climate Change Commission (CCC) suggests electricity will take up much of the slack, aligning with the vision of a sustainable electric planet powering our vehicle fleet and replacing coal and gas in industrial processes.

But can the electricity system really provide for this increased load where and when it is needed? The answer is “yes”, with some caveats.

Our research examines climate change impacts on the New Zealand energy system. It shows we’ll need to pay close attention to demand as well as supply. And we’ll have to factor in the impacts of climate change when we plan for growth in the energy sector.

 

Demand for electricity to grow
While electricity use has not increased in NZ in the past decade, many agencies project steeply rising demand in coming years. This is partly due to both increasing population and gross domestic product, but mostly due to the anticipated electrification of transport and industry, which could result in a doubling of demand by mid-century.

It’s hard to get a sense of the scale of the new generation required, but if wind was the sole technology employed to meet demand by 2050, between 10 and 60 new wind farms would be needed nationwide.

Of course, we won’t only build wind farms, as renewables are coming on strong and grid-scale solar, rooftop solar, new geothermal, some new small hydro plant and possibly tidal and wave power will all have a part to play.

 

Managing the demand
As well as providing more electricity supply, demand management and batteries will also be important. Our modelling shows peak demand (which usually occurs when everyone turns on their heaters and ovens at 6pm in winter) could be up to 40% higher by 2050 than it is now.

But meeting this daily period of high demand could see expensive plant sitting idle for much of the time (with the last 25% of generation capacity only used about 10% of the time).

This is particularly a problem in a renewable electricity system when the hydro lakes are dry, as hydro is one of the few renewable electricity sources that can be stored during the day (as water behind the dam) and used over the evening peak (by generating with that stored water).

Demand response will therefore be needed. For example, this might involve an industrial plant turning off when there is too much load on the electricity grid.

 

But by 2050, a significant number of households will also need smart appliances and meters that automatically use cheaper electricity at non-peak times. For example, washing machines and electric car chargers could run automatically at 2am, rather than 6pm when demand is high.

Our modelling shows a well set up demand response system could mitigate dry-year risk (when hydro lakes are low on water) in coming decades, where currently gas and coal generation is often used.

Instead of (or as well as) having demand response and battery systems to combat dry-year risk, a pumped storage system could be built. This is where water is pumped uphill when hydro lake inflows are plentiful, and used to generate electricity during dry periods.

The NZ Battery project is currently considering the potential for this in New Zealand, and debates such as whether we would use Site C's electricity offer relevant lessons.

 

Almost (but not quite) 100% renewable
Dry-year risk would be greatly reduced and there would be “greater greenhouse gas emissions savings” if the Interim Climate Change Committee’s (ICCC) 2019 recommendation to aim for 99% renewable electricity was adopted, rather than aiming for 100%.

A small amount of gas-peaking plant would therefore be retained. The ICCC said going from 99% to 100% renewable electricity by overbuilding would only avoid a very small amount of carbon emissions, at a very high cost.

Our modelling supports this view. The CCC’s draft advice on the issue also makes the point that, although 100% renewable electricity is the “desired end point”, timing is important to enable a smooth transition.

Despite these views, Energy Minister Megan Woods has said the government will be keeping the target of a 100% renewable electricity sector by 2030.

 

Impacts of climate change
In future, the electricity system will have to respond to changing climate patterns as well, becoming resilient to climate risks over time.

The National Institute of Water and Atmospheric Research predicts winds will increase in the South Island and decrease in the far north in coming decades.

Inflows to the biggest hydro lakes will get wetter (more rain in their headwaters), and their seasonality will change due to changes in the amount of snow in these catchments.

Our modelling shows the electricity system can adapt to those changing conditions. One good news story (unless you’re a skier) is that warmer temperatures will mean less snow storage at lower elevations, and therefore higher lake inflows in the big hydro catchments in winter, leading to a better match between times of high electricity demand and higher inflows.

 

The price is right
The modelling also shows the cost of generating electricity is not likely to increase, because the price of building new sources of renewable energy continues to fall globally.

Because the cost of building new renewables is now cheaper than non-renewables (such as coal-fired plants), investing in carbon-free electricity is increasingly compelling, and renewables are more likely to be built to meet new demand in the near term.

While New Zealand’s electricity system can enable the rapid decarbonisation of (at least) our transport and industrial heat sectors, international efforts like cleaning up Canada's electricity underline the need for certainty so the electricity industry can start building to meet demand everywhere.

Bipartisan cooperation at government level will be important to encourage significant investment in generation and transmission projects with long lead times and life expectancies, as analyses of climate policy and grid implications underscore in comparable markets.

Infrastructure and markets are needed to support demand response uptake, as well as certainty around the Tiwai exit in 2024 and whether pumped storage is likely to be built.

Our electricity system can support the rapid decarbonisation needed if New Zealand is to do its fair share globally to tackle climate change.

But sound planning, firm decisions and a supportive and relatively stable regulatory framework are all required before shovels can hit the ground.

 

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Analysis: Out in the cold: how Japan's electricity grid came close to blackouts

Japan Electricity Crunch exposes vulnerabilities in a liberalised power market as LNG shortages, JEPX price spikes, snow-hit solar, and weak hedging strain energy security and retail providers amid cold snap demand and limited reserve capacity.

 

Key Points

A winter demand shock and LNG shortfalls sent JEPX to records, exposing gaps in hedging, data, and energy security.

✅ JEPX wholesale prices spiked to an all-time high

✅ LNG inventories and procurement proved insufficient

✅ Snow disabled solar; new entrants lacked hedging

 

Japan's worst electricity crunch since the aftermath of the Fukushima crisis has exposed vulnerabilities in the country's recently liberalised power market, although some of the problems appear self-inflicted.

Power prices in Japan hit record highs last month, mirroring UK peak power prices during tight conditions, as a cold snap across northeast Asia prompted a scramble for supplies of liquefied natural gas (LNG), a major fuel for the country's power plants. Power companies urged customers to ration electricity to prevent blackouts, although no outages occurred.

The crisis highlighted how many providers were unprepared for such high demand. Experts say LNG stocks were not topped up ahead of winter and snow disabled solar power farms, while China's power woes strained solar supply chains.

The hundreds of small power companies that sprang up after the market was opened in 2016 have struggled the most, saying the government does not disclose the market data they need to operate. The companies do not have their own generators, instead buying electricity on the wholesale market.

Prices on the Japan Electric Power Exchange (JEPX) hit a record high of 251 yen ($2.39) per kilowatt hour in January, equating to $2,390 per megawatt hour of electricity, above record European price surges seen recently and the highest on record anywhere in the world. One megawatt hour is roughly what an average home in the U.S. would consume over 35 days.

But the vast majority of the new, smaller companies are locked into low, fixed rates they set to lure customers from bigger players, crushing them financially during a price spike like the one in January.

More than 50 small power providers wrote on Jan. 18 to Japan's industry minister, Hiroshi Kajiyama, who oversees the power sector, asking for more accessible data on supply and demand, reserve capacity and fuel inventories.

"By organising and disclosing this information, retail electricity providers will be able to bid at more appropriate prices," said the companies, led by Looop Co.

They also called on Kajiyama to require transmission and distribution companies to pass on some of the unexpected profits from price spikes to smaller operators.

The industry ministry said it had started releasing more timely market data, and is reviewing the cause of the crunch and considering changes, echoing calls by Fatih Birol to keep electricity options open amid uncertainty.

Japan reworked its power markets after the Fukushima nuclear disaster in 2011, liberalizing the sector in 2016 while pushing for more renewables.

But Japan is still heavily reliant on LNG and coal, and only four of 33 nuclear reactors are operating. The power crisis has led to growing calls to restart more reactors.

Kazuno Power, a small retail provider controlled by a municipality of the same name in northern Japan, where abundant renewable energy is locally produced, buys electricity from hydropower stations and JEPX.

During the crunch, the company had to pay nearly 10 times the usual price, Kazuno Power president Takao Takeda said in an interview. Like most other new providers, it could not pass on the costs, lost money, and folded. The local utility has taken over its customers.

"There is a contradiction in the current system," Takeda said. "We are encouraged to locally produce power for local consumption as well as use more renewable energy, but prices for these power supplies are linked to wholesale prices, which depend on the overall power supply."

The big utilities, which receive most of their LNG on long-term contracts, blamed the power shortfall on a tight spot market and glitches at generation units.

"We were not able to buy as much supply as we wanted from the spot market because of higher demand from South Korea and China, where power cuts have tightened supply," Kazuhiro Ikebe, the head of the country's electricity federation, said recently.

Ikebe is also president of Kyushu Electric Power, which supplies the southern island of Kyushu.

Utilities took extreme measures - from burning polluting fuel oil in coal plants to scavenging the dregs from empty LNG tankers - to keep the grid from breaking down.

"There is too much dependence on JEPX for procurement," said Bob Takai, the local head of European Energy Exchange, where electricity pricing reforms are being discussed, and which started offering Japan power futures last year. He added that new entrants were not hedging against sharp price moves.

Three people, who requested anonymity because of the sensitivity of the matter, were more blunt. One called the utilities arrogant in assuming they could find LNG cargoes in a pinch. Prices were already rising as China snapped up supplies, the sources noted.

"You had volatility caused by people saying 'Oh, well, demand is going to be weak because of coronavirus impacts' and then saying 'we can rely more on solar than in the past,' but solar got snowed out," said a senior executive from one generator. "We have a problem of who is charge of energy security in Japan."

Inventories of LNG, generally about two weeks worth of supplies, were also not topped up enough to prepare for winter, a market analyst said.

The fallout from the crunch has become more apparent in recent days, with new power companies like Rakuten Inc suspending new sales and Tokyo Gas, along with traditional electricity utilities, issuing profit downgrades or withdrawing their forecasts.

Although prices have fallen sharply as temperatures warmed up slightly and more generation units have come back online, the power generator executive said, "we are not out of the woods yet."
 

 

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Edmonton's 1st electric bus hits city streets

Edmonton Electric Buses usher in zero-emission public transit with Proterra battery-electric vehicles, 350 km range, quiet rides, winter-ready performance, and overhead depot chargers, as ETS rolls out Canada's largest electric fleet across city routes.

 

Key Points

Battery-electric ETS vehicles from Proterra deliver zero-emission service, 350 km range, and winter-capable operation.

✅ Up to 350 km per charge; overhead depot fast chargers

✅ Quiet, smooth rides; zero tailpipe emissions

✅ Winter-tested performance across ETS routes

 

Your next trip on Edmonton transit could be a historical one as the city’s first battery-electric bus is now on city streets, marking a milestone for Edmonton Transit Service, and neighboring St. Albert has also introduced electric buses as part of regional goals.

“Transit has been around since 1908 in Edmonton. We had some really small buses, we had some trolley buses several years later. It’s a special day in history today,” Ryan Birch, acting director of transit operations, said. “It’s a fresh experience… quiet, smooth riding. It’s going to be absolutely wonderful.”

In a news release, Mayor Don Iveson called it the largest purchase of electric buses in Canadian history, while North America's largest electric bus fleet operates in Toronto today, and Metro Vancouver has buses on the road as well this year.

“Electric buses are a major component of the future of public transit in our city and across Canada.”

As of Tuesday, 21 of the 40 electric buses had arrived in the city, and the Toronto Transit Commission has introduced battery-electric buses in Toronto as well this year.

“We’re going to start rolling these out with four or five buses per day until we’ve got all the buses in stock rolled out. On Wednesday we will have three or four buses out,” Birch said.

The remaining 19 are scheduled to arrive in the fall.

The City of Edmonton ordered the battery-electric buses from Proterra, an electric bus supplier, while Montreal's STM has begun rolling out electric buses of its own recently.

The fleet can travel up to 350 kilometres on a single charge and the batteries work in all weather conditions, including Edmonton’s harsh winters, and electric school buses in B.C. have also taken to the roads in cold climates recently.

In 2015, ETS winter tested a few electric buses to see if the technology would be suitable for the city’s climate and geography amid barriers to wider adoption that many agencies consider.

“These buses are designed to handle most of our routes,” Birch said. “We are confident they will be able to stand up to what we expect of them.”

ETS is the first transit agency in North America to have overhead chargers installed inside transit facilities, which helps to save floor space.

 

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