Deregulation will lead to savings, says official

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Concerned that deregulation will lead to higher municipal electricity costs, Orillia council recently passed a motion asking the province to extend the fixed-price system, scheduled to end April 1.

But the province's Independent Electricity System Operator (IESO) has calculated that cities can cut their electricity bills by almost one-fifth by shifting consumption to night time, when power on the market is cheaper.

"The hourly price is uniquely suited to municipal usage," said IESO spokesperson Lisa Pearson.

Electricity rates were regulated for the MUSH sector (municipalities, universities, schools and hospitals) after the market opened five years ago. Prices shot up and down with extreme volatility.

"The intent was to provide some stability to the public sector," said Pearson. "It gave them time to get used to the hourly pricing model."

Many cities have already partially opted out of the fixed-price program to take advantage of cheaper night-time power on the market. By shopping around for electricity, the City of Hamilton saved $1 million in less than a year.

Many municipalities, including Orillia, have already opted to power streetlights with power purchased at night on the spot market.

Since streetlights account for 14 per cent, on average, of a city's electricity consumption, the savings are significant.

The fixed price for electricity is 5.9 cents per kilowatt hour.

The market price, though potentially twice that level during daytime peak periods, falls to 3.8 cents per kilowatt hour at night.

Another way to cut costs is to operate sewage and water treatment plants at night, said Pearson.

These operations account for 30 per cent of a city's electric bill, so, again, the potential to cut costs is significant, she noted.

Energy specialists with the IESO have been meeting with municipalities to get a sense of their typical power use.

They were surprised to find almost half the municipalities have already started buying some power directly off the spot market, recognizing the financial advantages.

By reducing consumption during peak hours and encouraging energy efficiency and conservation, the need to build costly new generating facilities is reduced, said Pearson.

"We're an advocate of anything we can do to smooth out peaks."

Power consumption in the prov- ince peaked at 27,000 megawatts in the summer of 2006. Since then, the peak has been below 25,000 for all but 52 hours.

Shaving the peak further will allow existing generating capacity to do the job that much longer.

Pearson said the Orillia resolution, introduced by Coun. Maurice McMillan, an advocate of public power, overlooks the advantages of the spot market to cities that can be flexible.

IESO representatives would be happy to make a deputation to Orillia council explaining how municipalities can take advantage of deregulation, said Pearson.

"It's new. It's something they have to wrap their brains around."

McMillan, however, continues to be wary of deregulation, warning prices may begin climbing as generation shortages occur because of shutdowns.

With private companies and former public utilities now producing and selling power for profit, the price will be higher than in a system producing power at cost, McMillan said.

But Pearson said the open market is more stable than when it opened, setting the table for better energy management.

"We continue to believe in competition in the market," she said.

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Ukraine Prepares for Winter Amid Energy Challenges

Ukraine Winter Energy Resilience focuses on energy security, grid repairs, renewable power, EU support, heating reliability, electricity imports, and conservation measures to stabilize infrastructure and protect households amid conflict and severe cold.

 

Key Points

A strategy to secure heat and power via repairs, renewables, imports, and conservation during wartime winter.

✅ Grid repairs and hardening of power plants and transmission lines

✅ Diversified supply: renewables, electricity imports, fuel reserves

✅ Public conservation to cut peak demand and safeguard essential services

 

As winter approaches, Ukraine is bracing for a challenging season, especially in the energy sector amid global energy instability and price pressures, which has been heavily impacted by the ongoing conflict with Russia. With the weather forecast predicting colder temperatures, the Ukrainian government is ramping up efforts to secure energy supplies and bolster infrastructure, aiming to ensure that citizens have access to heating and electricity during the harsh months ahead.

The Energy Landscape in Ukraine

The conflict has severely disrupted Ukraine’s energy infrastructure, leading to widespread damage and inefficiencies. Key facilities, including power plants and transmission lines, have been targeted amid energy ceasefire violations reported by both sides, resulting in significant energy shortages. As a response, the government has implemented a series of measures aimed at stabilizing the energy sector, ensuring that the nation can withstand the winter months.

One of the primary strategies has been the repair and reinforcement of energy infrastructure. Officials have prioritized critical facilities that are essential for electricity generation and distribution. Emergency repairs and upgrades are being carried out to restore functionality and improve resilience against potential attacks.

In addition to repairing existing infrastructure, Ukraine is actively seeking to diversify its energy sources. This includes increasing reliance on renewable energy, such as wind and solar, which can be less susceptible to disruption. The shift toward renewables not only enhances energy security and supports moving away from fossil fuels in line with Ukraine's long-term environmental goals.

International Support and Collaboration

Ukraine's challenges have not gone unnoticed on the international stage. Countries and organizations around the world have pledged energy security support to help Ukraine fortify its energy sector. This assistance includes financial aid, technical expertise, and the provision of materials needed for infrastructure repairs.

The European Union, in particular, has been a key ally, providing both immediate and long-term support to Ukraine's energy efforts. The EU's commitment to helping Ukraine transition to a more sustainable energy model, including steps toward ENTSO-E synchronization to bolster grid stability, is reflected in various initiatives aimed at increasing energy efficiency and integrating renewable sources.

Furthermore, international organizations have mobilized resources to assist in the restoration of damaged infrastructure. This collaboration not only enhances Ukraine's energy capabilities but also strengthens ties with global partners, fostering a sense of solidarity amidst the ongoing conflict.

Preparing for Winter Challenges

As temperatures drop, the demand for heating will surge, putting additional pressure on an already strained energy system. To address this, the Ukrainian government is urging citizens to prepare for potential shortages. Officials are promoting energy conservation measures, encouraging households to reduce consumption and use energy more efficiently.

Public awareness campaigns are being launched to educate citizens about the importance of energy saving and the steps they can take to minimize their energy use and prevent outages during peak demand. These initiatives aim to foster a collective sense of responsibility as the nation braces for the winter ahead.

In addition to conservation efforts, the government is exploring alternative energy supplies. This includes negotiating with neighboring countries for electricity imports and enhancing domestic production where feasible. By securing a diverse range of energy sources, Ukraine aims to mitigate the risk of shortages and ensure that essential services remain operational.

The Role of Resilience and Innovation

Despite the challenges, the resilience of the Ukrainian people and their commitment to overcoming adversity shine through. Communities are coming together to support one another, sharing resources and information to help navigate the difficulties of winter.

Innovative solutions are also emerging as part of the response to the energy crisis. Local initiatives aimed at promoting energy efficiency and the use of alternative energy sources are gaining traction. From community-led solar projects to energy-efficient building practices, Ukrainians are finding ways to adapt and thrive even in the face of uncertainty.

Looking Ahead

As Ukraine prepares for the winter months, the focus remains on ensuring energy security and maintaining the functionality of critical infrastructure. While challenges loom, the collective efforts of the government, international partners, and citizens demonstrate a strong commitment to resilience and adaptation.

In conclusion, the upcoming winter presents significant challenges for Ukraine's energy sector, yet the nation's determination to secure its energy future remains unwavering. With ongoing repairs, international support, and community innovation, Ukraine is working diligently to navigate the complexities of this winter, aiming to emerge stronger and more resilient in the face of adversity. The resilience shown today will be crucial as the country continues to confront the ongoing impacts of conflict and seeks to build a sustainable future.

 

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APS asks customers to conserve energy after recent blackouts in California

Arizona Energy Conservation Alert urges APS and TEP customers to curb usage during a heatwave, preventing rolling blackouts, easing peak demand, and supporting grid reliability by raising thermostats, delaying appliances, and pausing pool pumps.

 

Key Points

A utility request during extreme heat to cut demand and protect grid reliability, helping prevent outages.

✅ Raise thermostats to 80 F or higher during peak hours

✅ Delay washers, dryers, dishwashers until after 8 p.m.

✅ Pause pool pumps; switch off nonessential lights and devices

 

After excessive heat forced rolling blackouts for thousands of people across California Friday and Saturday, Arizona Public Service Electric is asking customers to conserve energy this afternoon and evening.

“Given the extended heat wave in the western United States and climate-related grid risks that utilities are monitoring, APS is asking customers to conserve energy due to extreme energy demand that is driving usage higher throughout the region with today’s high temperatures,” APS said in a statement.

Tucson Electric Power has made a similar request of customers in its coverage area.


APS is asking customers to conserve energy in the following ways Tuesday until 8 p.m.:

  • Raise thermostat settings to no lower than 80 degrees.
  • Turn off extra lights and avoid use of discretionary major appliances such as clothes washers, dryers and dishwashers.
  • Avoid operation of pool pumps.

The request from APS also came just hours after Arizona Corporation Commission Chairman Bob Burns sent a letter to electric utilities under the commission's umbrella, like APS, to see if they are in good shape or anticipate any problems given looming shortages in California. He requested the companies respond by noon Friday.


"The whole plan is to take a look at the system early in the Summer," Burns said. "Early May we look at the system, make sure we're ready and able to serve the public throughout the entire heat cycle."

Burns told ABC15 the Summer Preparedness workshop with utilities took place in May and the regulated utilities reported they were well equipped to meet the anticipated peaks of the Summer, even as supply-chain pressures mount across the industry. Tuesday's letter to the electric companies seeks to see if they are still able to "adequately, safely and reliably" serve customers through the heatwave, or if what happened in California could take place here.

"With the activities that are occurring over in California, including tight grid conditions that have repeatedly tested operators, we just want to double check," Burns said.

An APS representative told ABC15 they have adequate supply and reserve and don't anticipate any problems.

However, the rolling blackouts in California also caught the attention of Commissioner Lea Marquez Peterson. She is calling on the chairman to hold an emergency meeting amid wildfire concerns across California and the region.

"The risk to Arizonans and the fact that energy could be interrupted, that we had some kind of rolling blackout like California would have, would be really a public health issue," Peterson said. "It could be life and death in some cases for vulnerable populations."

 

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Purdue: As Ransomware Attacks Increase, New Algorithm May Help Prevent Power Blackouts

Infrastructure Security Algorithm prioritizes cyber defense for power grids and critical infrastructure, mitigating ransomware, blackout risks, and cascading failures by guiding utilities, regulators, and cyber insurers on optimal security investment allocation.

 

Key Points

An algorithm that optimizes security spending to cut ransomware and blackout risks across critical infrastructure.

✅ Guides utilities on optimal security allocation

✅ Uses incentives to correct human risk biases

✅ Prioritizes assets to prevent cascading outages

 

Millions of people could suddenly lose electricity if a ransomware attack just slightly tweaked energy flow onto the U.S. power grid, as past US utility intrusions have shown.

No single power utility company has enough resources to protect the entire grid, but maybe all 3,000 of the grid's utilities could fill in the most crucial security gaps if there were a map showing where to prioritize their security investments.

Purdue University researchers have developed an algorithm to create that map. Using this tool, regulatory authorities or cyber insurance companies could establish a framework for protecting the U.S. power grid that guides the security investments of power utility companies to parts of the grid at greatest risk of causing a blackout if hacked.

Power grids are a type of critical infrastructure, which is any network - whether physical like water systems or virtual like health care record keeping - considered essential to a country's function and safety. The biggest ransomware attacks in history have happened in the past year, affecting most sectors of critical infrastructure in the U.S. such as grain distribution systems in the food and agriculture sector and the Colonial Pipeline, which carries fuel throughout the East Coast, prompting increased military preparation for grid hacks in the U.S.

With this trend in mind, Purdue researchers evaluated the algorithm in the context of various types of critical infrastructure in addition to the power sector, including electricity-sector IoT devices that interface with grid operations. The goal is that the algorithm would help secure any large and complex infrastructure system against cyberattacks.

"Multiple companies own different parts of infrastructure. When ransomware hits, it affects lots of different pieces of technology owned by different providers, so that's what makes ransomware a problem at the state, national and even global level," said Saurabh Bagchi, a professor in the Elmore Family School of Electrical and Computer Engineering and Center for Education and Research in Information Assurance and Security at Purdue. "When you are investing security money on large-scale infrastructures, bad investment decisions can mean your power grid goes out, or your telecommunications network goes out for a few days."

Protecting infrastructure from hacks by improving security investment decisions

The researchers tested the algorithm in simulations of previously reported hacks to four infrastructure systems: a smart grid, industrial control system, e-commerce platform and web-based telecommunications network. They found that use of this algorithm results in the most optimal allocation of security investments for reducing the impact of a cyberattack.

The team's findings appear in a paper presented at this year's IEEE Symposium on Security and Privacy, the premier conference in the area of computer security. The team comprises Purdue professors Shreyas Sundaram and Timothy Cason and former PhD students Mustafa Abdallah and Daniel Woods.

"No one has an infinite security budget. You must decide how much to invest in each of your assets so that you gain a bump in the security of the overall system," Bagchi said.

The power grid, for example, is so interconnected that the security decisions of one power utility company can greatly impact the operations of other electrical plants. If the computers controlling one area's generators don't have adequate security protection, as seen when Russian hackers accessed control rooms at U.S. utilities, then a hack to those computers would disrupt energy flow to another area's generators, forcing them to shut down.

Since not all of the grid's utilities have the same security budget, it can be hard to ensure that critical points of entry to the grid's controls get the most investment in security protection.

The algorithm that Purdue researchers developed would incentivize each security decision maker to allocate security investments in a way that limits the cumulative damage a ransomware attack could cause. An attack on a single generator, for instance, would have less impact than an attack on the controls for a network of generators, which sophisticated grid-disruption malware can target at scale, rather than for the protection of a single generator.

Building an algorithm that considers the effects of human behavior

Bagchi's research shows how to increase cybersecurity in ways that address the interconnected nature of critical infrastructure but don't require an overhaul of the entire infrastructure system to be implemented.

As director of Purdue's Center for Resilient Infrastructures, Systems, and Processes, Bagchi has worked with the U.S. Department of Defense, Northrop Grumman Corp., Intel Corp., Adobe Inc., Google LLC and IBM Corp. on adopting solutions from his research. Bagchi's work has revealed the advantages of establishing an automatic response to attacks, and analyses like Symantec's Dragonfly report highlight energy-sector risks, leading to key innovations against ransomware threats, such as more effective ways to make decisions about backing up data.

There's a compelling reason why incentivizing good security decisions would work, Bagchi said. He and his team designed the algorithm based on findings from the field of behavioral economics, which studies how people make decisions with money.

"Before our work, not much computer security research had been done on how behaviors and biases affect the best defense mechanisms in a system. That's partly because humans are terrible at evaluating risk and an algorithm doesn't have any human biases," Bagchi said. "But for any system of reasonable complexity, decisions about security investments are almost always made with humans in the loop. For our algorithm, we explicitly consider the fact that different participants in an infrastructure system have different biases."

To develop the algorithm, Bagchi's team started by playing a game. They ran a series of experiments analyzing how groups of students chose to protect fake assets with fake investments. As in past studies in behavioral economics, they found that most study participants guessed poorly which assets were the most valuable and should be protected from security attacks. Most study participants also tended to spread out their investments instead of allocating them to one asset even when they were told which asset is the most vulnerable to an attack.

Using these findings, the researchers designed an algorithm that could work two ways: Either security decision makers pay a tax or fine when they make decisions that are less than optimal for the overall security of the system, or security decision makers receive a payment for investing in the most optimal manner.

"Right now, fines are levied as a reactive measure if there is a security incident. Fines or taxes don't have any relationship to the security investments or data of the different operators in critical infrastructure," Bagchi said.

In the researchers' simulations of real-world infrastructure systems, the algorithm successfully minimized the likelihood of losing assets to an attack that would decrease the overall security of the infrastructure system.

Bagchi's research group is working to make the algorithm more scalable and able to adapt to an attacker who may make multiple attempts to hack into a system. The researchers' work on the algorithm is funded by the National Science Foundation, the Wabash Heartland Innovation Network and the Army Research Lab.

Cybersecurity is an area of focus through Purdue's Next Moves, a set of initiatives that works to address some of the greatest technology challenges facing the U.S. Purdue's cybersecurity experts offer insights and assistance to improve the protection of power plants, electrical grids and other critical infrastructure.

 

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UK's Energy Transition Stalled by Supply Delays

UK Clean Energy Supply Chain Delays are slowing decarbonization as transformer lead times, grid infrastructure bottlenecks, and battery storage contractors raise costs and risk 2030 targets despite manufacturing expansions by Siemens Energy and GE Vernova.

 

Key Points

Labor and equipment bottlenecks delay transformers and grid upgrades, risking the UK's 2030 clean power target.

✅ Transformer lead times doubled or tripled, raising project costs

✅ Grid infrastructure and battery storage contractors in short supply

✅ Firms expand capacity cautiously amid uncertain demand signals

 

The United Kingdom's ambitious plans to transition to clean energy are encountering significant obstacles due to prolonged delays in obtaining essential equipment such as transformers and other electrical components. These supply chain challenges are impeding the nation's progress toward decarbonizing its power sector by 2030, even as wind leads the power mix in key periods.

Supply Chain Challenges

The global surge in demand for renewable energy infrastructure, including large-scale storage solutions, has led to extended lead times for critical components. For example, Statera Energy's storage plant in Thurrock experienced a 16-month delay for transformers from Siemens Energy. Such delays threaten the UK's goal to decarbonize power supplies by 2030.

Economic Implications

These supply chain constraints have doubled or tripled lead times over the past decade, resulting in increased costs and straining the energy transition as wind became the main source of UK electricity in a recent milestone. Despite efforts to expand manufacturing capacity by companies like GE Vernova, Hitachi Energy, and Siemens Energy, the sector remains cautious about overinvesting without predictable demand, and setbacks at Hinkley Point C have reinforced concerns about delivery risks.

Workforce and Manufacturing Capacity

Additionally, there is a limited number of companies capable of constructing and maintaining battery sites, adding to the challenges. These issues underscore the necessity for new factories and a trained workforce to support the electrification plans and meet the 2030 targets.

Government Initiatives

In response to these challenges, the UK government is exploring various strategies to bolster domestic manufacturing capabilities and streamline supply chains while supporting grid reform efforts underway to improve system resilience. Investments in infrastructure and workforce development are being considered to mitigate the impact of global supply chain disruptions and advance the UK's green industrial revolution for next-generation reactors.

The UK's energy transition is at a critical juncture, with supply chain delays posing substantial risks to achieving decarbonization goals, including the planned end of coal power after 142 years for the UK. Addressing these challenges will require coordinated efforts between the government, industry stakeholders, and international partners to ensure a sustainable and timely shift to clean energy.

 

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Changes Coming For Ontario Electricity Consumers

Ontario Electricity Billing Changes include OEB-backed shifts to time-of-use or tiered pricing, landlord blanket elections, LDC implementation guidance, a customer choice webpage with a bill calculator, and ENDM rate mitigation messaging.

 

Key Points

They are OEB measures enabling TOU-to-tiered switching, landlord elections, LDC guidance, and ENDM bill messages.

✅ Option to switch from TOU to tiered pricing

✅ Landlord blanket elections on tenant turnover

✅ ENDM-led bill info and rate mitigation messaging

 

By David Stevens, Aird & Berlis LLP

Electricity consumers in Ontario may see a couple of electricity rate changes in their bills in the coming months.

First, as we have already discussed, as of November 1, 2020, regulated price plan customers will have the option to switch to "tiered pricing" instead of time-of-use (TOU) pricing structures. Those who switch to "tiered pricing" will see changes in their electricity bills.

The Ontario Energy Board (OEB) has now issued final amendments to the Standard Supply Service Code to support the customer election process necessary to switch from TOU pricing to tiered pricing. The main change from what was already published in previous OEB notices is that landlords will be permitted to make a "blanket election" between TOU pricing and tiered pricing that will apply each time a tenant's account reverts back to the landlord on turnover of the rental unit. In its most recent notice, the OEB acknowledges that implementing the new customer billing option as of Nov. 1 (less than two months from now) will be challenging and directs Local Distribution Companies (LDCs) who cannot meet this date to be immediately in touch with the OEB. Finally, the OEB indicates that there will be a dedicated "customer choice webpage for consumers, including a bill calculator" in place by early October.

Second, as of January 1, 2021 low-volume consumers will see additional messaging on their bills to inform them of available rate mitigation programs.

A recent proposal posted on Ontario's Regulatory Registry indicates that the Ministry of Energy, Northern Development and Mines (ENDM) proposes that LDCs and Utility Sub-Meter Providers will be required to include a new on-bill message for low-volume consumers that "will direct customers to ENDM's new web page for further information about how the province provides financial support to electricity consumers." This new requirement is planned to be in place as of January 1, 2021. In conjunction with this requirement, the ENDM plans to launch a new web page that will provide "up-to-date information about electricity bills," including information about rate mitigation programs available to consumers. Parties are invited to submit comments on the ENDM proposal by October 5, 2020.

 

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US Dept. of Energy awards Washington state $23.4 million to strengthen infrastructure

Washington Grid Resilience Grant funds DOE-backed modernization to harden Washington's electric grid against extreme weather, advancing clean energy, affordable and reliable electricity, and community resilience under the Bipartisan Infrastructure Law via projects and utility partnerships.

 

Key Points

A $23.4M DOE grant to modernize Washington's grid, boost weather resilience, and deliver clean, reliable power.

✅ Targets outages, reliability, and community resilience statewide.

✅ Prioritizes disadvantaged areas and quality clean energy jobs.

✅ Backed by Bipartisan Infrastructure Law and DOE funding.

 

Washington state has received a $23.4 million Grid Resilience State and Tribal Formula Grant from the U.S. Department of Energy (DOE) to modernize the electric grid through smarter electricity infrastructure and reduce impacts due to extreme weather and natural disasters. Grid Resilience State and Tribal Formula Grants aim to ensure the reliability of power sector infrastructure so that communities have access to affordable, reliable, clean electricity.

“Electricity is an essential lifeline for communities. Improving our systems by reducing disruptive events is key as we cross the finish line of a 100% clean electricity grid and ensure equitable benefits from the clean energy economy reach every community,” said Gov. Jay Inslee.

The federal funding for energy resilience will enhance and expand ongoing current grid modernization and resilience efforts throughout the state. For example, working directly with rural and typical end-of-the-line customers to develop resilience plans and collaborating with communities and utilities, including smart city efforts in Spokane as examples, on building resilient and renewable infrastructure for essential services.

“This is a significant opportunity to supplement our state investments in building a robust, resilient electric grid that supports our long-term vision for clean, affordable and reliable electricity – the foundation for economic growth and job creation that strengthens our communities and keeps Washington globally competitive. It shows once again that we are maximizing the federal funding being made available by the Biden-Harris Administration to invest in the country’s infrastructure,” said Washington State Department of Commerce Director Mike Fong.

Across the border, British Columbia's clean energy shift adds regional momentum for resilient, low-carbon power.

Goals include:

Reducing the frequency, duration and impact of outages as climate change impacts on the grid intensify while enhancing resiliency in historically disadvantaged communities.
Strengthening prosperity by expanding well-paying, safe clean energy jobs accessible to all workers and ensuring investments have a positive effect on quality job creation and equitable economic development.

Building a community of practice and maximizing project scalability by identifying pathways for scaling innovations such as integrating solar into the grid across programs.

“The Grid Resilience Formula Grants will enable communities in Washington to protect households and businesses from blackouts or power shutdowns during extreme weather,” said Maria Robinson, Director, Grid Deployment Office, U.S. Department of Energy. “Projects selected through this program will benefit communities by creating good-paying jobs to deliver clean, affordable, and reliable energy across the country.”

DOE has also announced $34 million for grid improvements to bolster reliability nationwide.

“An innovative, reliable, and efficient power grid is vital to Washington’s continued economic growth and for community resilience especially in disadvantaged areas,” said U.S. Rep. Strickland, Co-Lead of the bipartisan Grid Innovation Caucus. “The funding announced today will invest in our energy grid, support good-paying jobs, and means a cleaner, more energy-efficient future.”

Funded through the Bipartisan Infrastructure Law and administered by DOE’s Grid Deployment Office, with related efforts such as California grid upgrades advancing nationwide, the Grid Resilience State and Tribal Formula Grants distribute funding to states, territories, and federally recognized Indian Tribes, over five years based on a formula that includes factors such as population size, land area, probability and severity of disruptive events, and a locality’s historical expenditures on mitigation efforts. Priority will be given to projects that generate the greatest community benefit providing clean, affordable, and reliable energy.

 

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