Duke Energy, Progress Energy complete merger

By Duke Energy


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Duke Energy Corporation recently confirmed the closing of its previously announced merger with Progress Energy Inc., effective July 2, 2012.

The new company will be known as Duke Energy and will remain headquartered in Charlotte, with substantial operations in Raleigh, N.C.

In accordance with the terms of the merger agreement, Progress Energy Inc. has become a wholly owned direct subsidiary of Duke Energy, creating the country's largest electric utility as measured by enterprise value, market capitalization, generation assets, customers and numerous other criteria.

Duke Energy also recently announced the newly constituted board of directors has appointed Jim Rogers as president and chief executive officer of the combined company, effective immediately. Rogers will also maintain his responsibilities as chairman of the companyÂ’s board. Bill Johnson has resigned as president and chief executive officer of the combined company, by mutual agreement.

"The new Duke Energy will be better able to serve our 7.1 million customersÂ’ energy needs in a safe, reliable, affordable and increasingly clean manner," said Rogers, chairman, president and chief executive officer of Duke Energy. "As a combined organization, we will work to deliver benefits to our customers, create value for our shareholders, and enhance the career opportunities of our employees."

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Annual U.S. coal-fired electricity generation will increase for the first time since 2014

U.S. coal-fired generation 2021 rose as higher natural gas prices, stable coal costs, and a recovering power sector shifted the generation mix; capacity factors rebounded despite low coal stocks and ongoing plant retirements.

 

Key Points

Coal output rose 22% on high gas prices and higher capacity factors; a 5% decline is expected in 2022.

✅ Natural gas delivered cost averaged $4.93/MMBtu, more than double 2020

✅ Coal capacity factor rose to ~51% from 40% in 2020

✅ 2022 coal generation forecast to fall about 5%

 

We expect 22% more U.S. coal-fired generation in 2021 than in 2020, according to our latest Short-Term Energy Outlook (STEO). The U.S. electric power sector has been generating more electricity from coal-fired power plants this year as a result of significantly higher natural gas prices and relatively stable coal prices, even as non-fossil sources reached 40% of total generation. This year, 2021, will yield the first year-over-year increase in coal generation in the United States since 2014, highlighted by a January power generation jump earlier in the year.

Coal and natural gas have been the two largest sources of electricity generation in the United States. In many areas of the country, these two fuels compete to supply electricity based on their relative costs and sensitivity to policies and gas prices as well. U.S. natural gas prices have been more volatile than coal prices, so the cost of natural gas often determines the relative share of generation provided by natural gas and coal.

Because natural gas-fired power plants convert fuel to electricity more efficiently than coal-fired plants, record natural gas generation has at times underscored that advantage, and natural gas-fired generation can have an economic advantage even if natural gas prices are slightly higher than coal prices. Between 2015 and 2020, the cost of natural gas delivered to electric generators remained relatively low and stable. This year, however, natural gas prices have been much higher than in recent years. The year-to-date delivered cost of natural gas to U.S. power plants has averaged $4.93 per million British thermal units (Btu), more than double last year’s price.

The overall decline in electricity demand in 2020 and record-low natural gas prices led coal plants to significantly reduce the percentage of time that they generated power. In 2020, the utilization rate (known as the capacity factor) of U.S. coal-fired generators averaged 40%. Before 2010, coal capacity factors routinely averaged 70% or more. This year’s higher natural gas prices have increased the average coal capacity factor to about 51%, which is almost the 2018 average, a year when wind and solar reached 10% nationally.

Although rising natural gas prices have resulted in more U.S. coal-fired generation than last year, this increase in coal generation will most likely not continue as solar and wind expand in the generation mix. The electric power sector has retired about 30% of its generating capacity at coal plants since 2010, and no new coal-fired capacity has come online in the United States since 2013. In addition, coal stocks at U.S. power plants are relatively low, and production at operating coal mines has not been increasing as rapidly as the recent increase in coal demand. For 2022, we forecast that U.S. coal-fired generation will decline about 5% in response to continuing retirements of generating capacity at coal power plants and slightly lower natural gas prices.

 

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Hydro One announces pandemic relief fund for Hydro One customers

Hydro One Pandemic Relief Fund offers COVID-19 financial assistance, payment flexibility, and Winter Relief to Ontario electricity customers facing hardship, with disconnection protection and customer support to help manage bills during the health crisis.

 

Key Points

COVID-19 aid offering bill credits, payment flexibility, and disconnection protection for electricity customers.

✅ Financial assistance and bill credits for hardship cases

✅ Flexible payment plans and extended Winter Relief

✅ No-disconnect policy and dedicated customer support hours

 

We are pleased to announce a Pandemic Relief Fund to assist customers affected by the novel coronavirus (COVID-19). As part of our commitment to customers, we will offer financial assistance as well as increased payment flexibility to customers experiencing hardship. The fund is designed to support customers impacted by these events and those that may experience further impacts.

In addition to this, we've also extended our Winter Relief program, aligning with our ban on disconnections policy so no customer experiencing any hardship has to worry about potential disconnection.

We recognize that this is a difficult time for everyone and we want our customers to know that we’re here to support them. We hope this fund and the added measures, such as extended off-peak rates that help provide our customers peace of mind so they can concentrate on what matters most — keeping their loved ones safe.

If you are concerned about paying your bill, are experiencing hardship or have been impacted by the pandemic, including electricity relief announced by the province, we want to help you. Call us to discuss the fund and see what options are available for you.


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KEEPING ONTARIANS AND OUR ELECTRICITY SYSTEM SAFE
We recognize the critical role we play in powering communities across the province and our support for the Province of Ontario during COVID-19. This is a responsibility to employees, customers, businesses and the people of Ontario that we take very seriously.

Since the novel coronavirus (COVID-19) outbreak began, Hydro One’s Pandemic Team along with our leadership, have been actively monitoring the issues to ensure we can continue to deliver the service Ontarians depend on while keeping our employees, customers and the public safe, even as there has been no cut in peak hydro rates yet for self-isolating customers across Ontario. While the risk in Ontario remains low, we believe we can best protect our people and our operations by taking proactive measures.

As information continues to evolve, our leadership team along with the Pandemic Planning Team and our Emergency Operations Centre are committed to maintaining business continuity while minimizing risk to employees and communities.

Over the days and weeks to come, we will work with the sector and government, which is preparing to extend disconnect moratoriums across the province, to enhance safety protocols and champion the needs of electricity customers in Ontario.
 

 

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First Reactor Installed at the UK’s Latest Nuclear Power Station

Hinkley Point C Reactor Installation signals UK energy security, nuclear power expansion, and low-carbon baseload, featuring EPR technology in Somerset to cut emissions, support net-zero goals, and deliver reliable electricity for homes and businesses.

 

Key Points

First EPR unit fitted at Hinkley Point C, boosting low-carbon baseload, grid reliability, and UK energy security.

✅ Generates 3.2 GW across two EPRs for 7% of UK electricity.

✅ Provides low-carbon baseload to complement wind and solar.

✅ Creates jobs and strengthens supply chains during construction.

 

The United Kingdom has made a significant stride toward securing its energy future with the installation of the first reactor at its newest nuclear power station. This development marks an important milestone in the nation’s efforts to combat climate change, reduce carbon emissions, and ensure a stable and sustainable energy supply. As the world moves towards greener alternatives to fossil fuels, nuclear power remains a key part of the UK's green industrial revolution and low-carbon energy strategy.

The new power station, located at Hinkley Point C in Somerset, is set to be one of the most advanced nuclear facilities in the country. The installation of its reactor represents a crucial step in the construction of the plant, with earlier milestones like the reactor roof lifted into place underscoring steady progress, which is expected to provide reliable, low-carbon electricity for millions of homes and businesses across the UK. The completion of the first reactor is seen as a pivotal moment in the journey to bring the station online, with the second reactor expected to follow shortly after.

A Historic Milestone

Hinkley Point C will be the UK’s first nuclear power station built in over two decades. The plant, once fully operational, will play a key role in the country's energy transition. The reactors at Hinkley Point C are designed to be state-of-the-art, using advanced technology that is both safer and more efficient than older nuclear reactors. Each of the two reactors will have the capacity to generate 1.6 gigawatts of electricity, enough to power approximately six million homes. Together, they will contribute about 7% of the UK’s electricity needs, providing a steady, reliable source of energy even during periods of high demand.

The installation of the first reactor at Hinkley Point C is not just a technical achievement; it is also symbolic of the UK’s commitment to energy security and its goal to achieve net-zero carbon emissions by 2050, a target that industry leaders say multiple new stations will be needed to meet effectively. Nuclear power is a crucial part of this equation, as it provides a stable, baseload source of energy that does not rely on weather conditions, unlike wind or solar power.

Boosting the UK’s Energy Capacity

The addition of Hinkley Point C to the UK’s energy infrastructure is expected to significantly boost the country’s energy capacity and reduce its reliance on fossil fuels. The UK government has been focused on increasing the share of renewable energy in its mix, and nuclear power is seen as an essential complement to intermittent renewable sources, especially as wind and solar have surpassed nuclear in generation at times. Nuclear energy is considered a low-carbon, reliable energy source that can fill the gaps when renewable generation is insufficient, such as on cloudy or calm days when solar and wind energy output may be low.

With the aging of the UK’s existing nuclear fleet and the gradual phase-out of coal-fired power plants, Hinkley Point C will help ensure that the country does not face an energy shortage as it transitions to cleaner energy sources. The plant will help to bridge the gap between the current energy infrastructure and the future, enabling the UK to phase out coal while maintaining a steady, low-carbon energy supply.

Safety and Technological Innovation

The reactors at Hinkley Point C are being constructed using the latest in nuclear technology. They are based on the European Pressurized Reactor (EPR) design, which is known for its enhanced safety features and efficiency, and has been deployed in projects within China's nuclear program as well, making it a proven platform. These reactors are designed to withstand extreme conditions, including earthquakes and flooding, making them highly resilient. Additionally, the EPR technology ensures that the reactors have a low environmental impact, producing minimal waste and offering the potential for increased sustainability compared to older reactor designs.

One of the key innovations in the Hinkley Point C reactors is their advanced cooling system, which is designed to be more efficient and environmentally friendly than previous generations. This system ensures that the reactors operate at optimal temperatures while minimizing the environmental footprint of the plant.

Economic and Job Creation Benefits

The construction of Hinkley Point C has already provided a significant boost to the local economy. Thousands of jobs have been created, not only in the construction phase but also in the ongoing operation and maintenance of the facility. The plant is expected to create more than 25,000 jobs during its construction and around 900 permanent jobs once it is operational.

The project is also expected to have a positive impact on the wider UK economy. As a major infrastructure project, Hinkley Point C will provide long-term economic benefits, including boosting supply chains and providing opportunities for local businesses.

Challenges and the Road Ahead

Despite the progress, the construction of Hinkley Point C has not been without its challenges. The project has faced delays and cost overruns, with setbacks at Hinkley Point C documented by industry observers, and the total estimated cost now standing at around £22 billion. However, the successful installation of the first reactor is a step toward overcoming these hurdles and completing the project on schedule.

Looking ahead, Hinkley Point C’s successful operation could pave the way for future nuclear developments in the UK, including next-gen nuclear designs that aim to be smaller, cheaper, and safer. As the world grapples with the pressing need to reduce greenhouse gas emissions, nuclear energy may play an even more critical role in ensuring a clean, reliable energy future.

The installation of the first reactor at Hinkley Point C marks a crucial moment in the UK’s energy journey. As the country seeks to meet its carbon reduction targets and bolster its energy security, the new nuclear power station will be a cornerstone of its efforts. With its advanced technology, safety features, and potential to provide low-carbon energy for decades to come, Hinkley Point C offers a glimpse into the future of energy production in the UK and beyond.

 

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National Grid and SSE to use electrical transformers to heat homes

Grid Transformer Waste Heat Recovery turns substations into neighborhood boilers, supplying district heating via heat networks, helping National Grid and SSE cut emissions, boost energy efficiency, and advance low carbon, net zero decarbonization.

 

Key Points

Grid Transformer Waste Heat Recovery captures substation heat for district heating, cutting emissions and gas use.

✅ Captures waste heat from National Grid transformers

✅ Feeds SSE district heat networks for nearby homes

✅ Cuts carbon, improves efficiency, aligns with net zero

 

Thousands of homes could soon be warmed by the heat from giant electricity grid transformers for the first time as part of new plans to harness “waste heat” and cut carbon emissions from home heating.

Trials are due to begin on how to capture the heat generated by transmission network transformers, owned by National Grid, to provide home heating for households connected to district heating networks operated by SSE.

Currently, hot air is vented from the giant substations to help cool the transformers that help to control the electricity running through National Grid’s high-voltage transmission lines.

However, if the trial succeeds, about 1,300 National Grid substations could soon act as neighbourhood “boilers”, piping water heated by the substations into nearby heating networks, and on into the thousands of homes that use SSE’s services.

“Electric power transformers generate huge amounts of heat as a byproduct when electricity flows through them. At the moment, this heat is just vented directly into the atmosphere and wasted,” said Nathan Sanders, the managing director of SSE Energy Solutions.

“This groundbreaking project aims to capture that waste heat and effectively turn transformers into community ‘boilers’ that serve local heat networks with a low- or even zero-carbon alternative to fossil-fuel-powered heat sources such as gas boilers, a shift akin to a gas-for-electricity swap in heating markets,” Sanders added.

Alexander Yanushkevich, National Grid’s innovation manager, said the scheme was “essential to achieve net zero” and a “great example of how, taking a whole-system approach, including power-to-gas in Europe precedents, the UK can lead the way in helping accelerate decarbonisation”.

The energy companies believe the scheme could initially reduce heat network carbon emissions by more than 40% compared with fossil gas systems. Once the UK’s electricity system is zero carbon, and with recent milestones where wind was the main source of UK electricity on the grid, the heating solution could play a big role in helping the UK meet its climate targets.

The first trials have begun at National Grid’s specially designed testing site at Deeside in Wales to establish how the waste heat could be used in district heating networks. Once complete, the intellectual property will be shared with smaller regional electricity network owners, which may choose to roll out schemes in their areas.

Tim O’Reilly, the head of strategy at National Grid, said: “We have 1,300 transmission transformers, but there’s no reason why you couldn’t apply this technology to smaller electricity network transformers, too, echoing moves to use more electricity for heat in colder regions.”

Once the trials are complete, National Grid and SSE will have a better idea of how many homes could be warmed using the heat generated by electricity network substations, O’Reilly said, and how the heat can be used in ways that complement virtual power plants for grid resilience.

“The heavier the [electricity] load, which typically reaches a peak at around teatime, the more heat energy the transformer will be able to produce, aligning with times when wind leads the power mix nationally. So it fits quite nicely to when people require heat in the evenings,” he added.

Other projects designed to capture waste heat to use in district heating schemes include trapping the heat generated on the Northern line of London’s tube network to warm homes in Islington, and harnessing the geothermal heat from disused mines for district heating networks in Durham.

Only between 2% and 3% of the UK is connected to a district heating network, but more networks are expected to emerge in the years ahead as the UK tries to reduce the carbon emissions from homes, alongside its nuclear power plans in the wider energy strategy.

 

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Biden calls for 100 percent clean electricity by 2035. Here’s how far we have to go.

Biden Clean Energy Plan 2035 accelerates carbon-free electricity with renewables, nuclear, hydropower, and biomass, invests $2T in EVs, grid and energy efficiency, and tightens fuel economy standards beyond the Clean Power Plan.

 

Key Points

A $2T U.S. climate plan for carbon-free power by 2035, boosting renewables, nuclear, EVs, efficiency, and grid upgrades.

✅ Targets a zero-carbon electric grid nationwide by 2035

✅ Includes renewables, nuclear, hydropower, and biomass in standard

✅ Funds EVs, grid modernization, weatherization, and fuel economy rules

 

This month the Democratic presumptive presidential nominee, Joe Biden, outlined an ambitious plan, including Biden’s solar plan to expand clean energy, for tackling climate change that shows how far the party has shifted on the issue since it controlled the White House.

President Barack Obama’s Clean Power Plan had called for the electricity sector to cut its carbon pollution 32 percent by 2030, and did not lay out a trajectory for phasing out oil, coal or natural gas production.

This year, Democratic 2020 hopefuls such as Sen. Bernie Sanders (I-Vt.) went much further, suggesting the United States should derive all of its electricity from renewable sources by 2030, moving to 100% renewables as part of a $16.3 trillion plan to wean the nation away from fossil fuels. Many other congressional Democrats have embraced the Green New Deal — the nonbinding resolution calling for a carbon-free power sector by 2030 and more energy efficient buildings and vehicles, along with a massive investment in electric vehicles and high-speed rail.

Last year, 38 percent of U.S. electricity generated came from clean sources, according to a Washington Post analysis of data from the U.S. Energy Information Administration, and in April renewables hit a record 28% nationwide.

Biden’s new plan, which carries a price tag of $2 trillion, would eliminate carbon emissions from the electric sector by 2035, impose stricter gas mileage standards, fund investments to weatherize millions of homes and commercial buildings, and upgrade the nation’s transportation system. To reach its 2035 carbon-free electricity goal, the campaign includes wind, solar and several forms of energy, acknowledging why the grid isn’t yet 100% renewable while balancing reliability, that are not always counted in state renewable portfolio standards, such as nuclear, hydropower and biomass.

“A great appeal of the Biden proposal is that it is much closer to targeting carbon directly, which is the ultimate enemy, and plays fewer favorites with particular technologies,” said Michael Greenstone, who directs the University of Chicago’s Energy Policy Institute. “This will reduce the costs to consumers and give more carbon bang for the buck.”

But some environmentalists, such as Friends of the Earth President Erich Pica, question the idea of including more controversial carbon-free technologies. “There is no role for nuclear in a least-cost, low carbon world. Including these dinosaurs in a clean energy standard is going to incentivize industry efforts to keep aging, dangerous facilities online,” Pica said in an email.

Hydropower, which relies on a system of moving water that constantly recharges, is defined as renewable by the Environmental Protection Agency. Biomass is often considered as carbon neutral because even though it releases carbon dioxide when it is burned, the plants capture nearly the same amount of CO2 while growing.


Both forms of energy have come under fire for their environmental impacts, however. Damming streams and rivers can destroy fish habitat and make it more difficult for them to spawn, and it also seems unlikely that hydropower will expand its current 6 percent share of the nation’s electrical grid.

Many experts argue that classifying biomass energy as carbon neutral provides an incentive to cut down trees that would otherwise remain standing and sequester carbon. “If burning this wood were good for the climate, then we should not recycle paper, we should burn it,” noted Tim Searchinger, a research scholar at the Princeton School of Public and International Affairs.

Illinois lead the nation in the amount of electricity generated from nuclear power

More than half of the country — 30 states, Washington, and three territories — have adopted a renewable portfolio standard (RPS), according to the National Conference of State Legislatures, and seven states and one territory have set renewable energy goals. While 14 states, along with the District, Puerto Rico and the Virgin Islands, have established requirements of 50 percent or more carbon-free electricity, nearly as many have set theirs at 15 percent or less.

Maine Gov. Janet Mills (D), who has called for 100% renewable electricity in the state, has pushed clean electricity aggressively since taking office in 2019, lifting a wind energy moratorium imposed by her predecessor and signing bills aimed at expanding the state’s carbon-free energy sources. Biomass accounts for a quarter of the state’s electricity, more than any other state.

New York has one of the country’s most ambitious climate targets, which it scaled up last year. It aims to obtain 70 percent of its power from renewable sources within a decade, a period when renewables surpassed coal in U.S. generation, and eliminate carbon altogether by 2040, even as the state is in the process of shutting down a major nuclear plant near New York City, Indian Point, which is slated to cease operating on April 30, 2021.

... while other states are weakening theirs

Last year, Ohio weakened its renewable energy standard from a target of 12.5 percent in 2027 to 8.5 percent by 2026, even as renewables topped coal nationwide for the first time in over a century, without setting any future goals, and jettisoned its energy efficiency standard. West Virginia — which established modest renewable requirements in 2009 — repealed them altogether in 2015, the year they were set to take effect.

 

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The Impact of AI on Corporate Electricity Bills

AI Energy Consumption strains corporate electricity bills as data centers and HPC workloads run nonstop, driving carbon emissions. Efficiency upgrades, renewable energy, and algorithm optimization help control costs and enhance sustainability across industries.

 

Key Points

AI Energy Consumption is the power used by AI compute and data centers, impacting costs and sustainability.

✅ Optimize cooling, hardware, and workloads to cut kWh per inference

✅ Integrate on-site solar, wind, or PPAs to offset data center power

✅ Tune models and algorithms to reduce compute and latency

 

Artificial Intelligence (AI) is revolutionizing industries with its promise of increased efficiency and productivity. However, as businesses integrate AI technologies into their operations, there's a significant and often overlooked impact: the strain on corporate electricity bills.

AI's Growing Energy Demand

The adoption of AI entails the deployment of high-performance computing systems, data centers, and sophisticated algorithms that require substantial energy consumption. These systems operate around the clock, processing massive amounts of data and performing complex computations, and, much like the impact on utilities seen with major EV rollouts, contributing to a notable increase in electricity usage for businesses.

Industries Affected

Various sectors, including finance, healthcare, manufacturing, and technology, rely on AI-driven applications for tasks ranging from data analysis and predictive modeling to customer service automation and supply chain optimization, while manufacturing is influenced by ongoing electric motor market growth that increases electrified processes.

Cost Implications

The rise in electricity consumption due to AI deployments translates into higher operational costs for businesses. Corporate entities must budget accordingly for increased electricity bills, which can impact profit margins and financial planning, especially in regions experiencing electricity price volatility in Europe amid market reforms. Managing these costs effectively becomes crucial to maintaining competitiveness and sustainability in the marketplace.

Sustainability Challenges

The environmental impact of heightened electricity consumption cannot be overlooked. Increased energy demand from AI technologies contributes to carbon emissions and environmental footprints, alongside rising e-mobility demand forecasts that pressure grids, posing challenges for businesses striving to meet sustainability goals and regulatory requirements.

Mitigation Strategies

To address the escalating electricity bills associated with AI, businesses are exploring various mitigation strategies:

  1. Energy Efficiency Measures: Implementing energy-efficient practices, such as optimizing data center cooling systems, upgrading to energy-efficient hardware, and adopting smart energy management solutions, can help reduce electricity consumption.

  2. Renewable Energy Integration: Investing in renewable energy sources like solar or wind power and energy storage solutions to enhance flexibility can offset electricity costs and align with corporate sustainability initiatives.

  3. Algorithm Optimization: Fine-tuning AI algorithms to improve computational efficiency and reduce processing times can lower energy demands without compromising performance.

  4. Cost-Benefit Analysis: Conducting thorough cost-benefit analyses of AI deployments to assess energy consumption against operational benefits and potential rate impacts, informed by cases where EV adoption can benefit customers in broader electricity markets, helps businesses make informed decisions and prioritize energy-saving initiatives.

Future Outlook

As AI continues to evolve and permeate more aspects of business operations, the demand for electricity will likely intensify and may coincide with broader EV demand projections that increase grid loads. Balancing the benefits of AI-driven innovation with the challenges of increased energy consumption requires proactive energy management strategies and investments in sustainable technologies.

Conclusion

The integration of AI technologies presents significant opportunities for businesses to enhance productivity and competitiveness. However, the corresponding surge in electricity bills underscores the importance of proactive energy management and sustainability practices. By adopting energy-efficient measures, leveraging renewable energy sources, and optimizing AI deployments, businesses can mitigate cost impacts, reduce environmental footprints, and foster long-term operational resilience in an increasingly AI-driven economy.

 

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