Electric Utilities Plot Bullish Course for EV Charging Infrastructure

North Seattle Power Outage disrupts 13,000 in Ballard, Northgate, and Lake City as Seattle City Light crews repair equipment failures. Aging infrastructure, smart grid upgrades, microgrids, and emergency preparedness highlight resilience and reliability challenges.

Key Points

A major outage affecting 13,000 in North Seattle from equipment failures and aging grid, prompting repairs and planning.

✅ 13,000 customers in Ballard, Northgate, Lake City affected

✅ Cause: equipment failures and aging infrastructure

✅ Crews, smart grid upgrades, and preparedness improve resilience

On a recent Wednesday morning, a significant power outage struck a large area of North Seattle, affecting approximately 13,000 residents and businesses. This incident not only disrupted daily routines, as seen in a recent London outage, but also raised questions about infrastructure reliability and emergency preparedness in urban settings.

Overview of the Outage

The outage began around 9 a.m., with initial reports indicating that neighborhoods including Ballard, Northgate, and parts of Lake City were impacted. Utility company Seattle City Light quickly dispatched crews to identify the cause of the outage and restore power as soon as possible. By noon, the utility reported that repairs were underway, with crews working diligently to restore service to those affected.

Such outages can occur for various reasons, including severe weather, such as windstorm-related failures, equipment failure, or accidents involving utility poles. In this instance, the utility confirmed that a series of equipment failures contributed to the widespread disruption. The situation was exacerbated by the age of some infrastructure in the area, highlighting ongoing concerns about the need for modernization and upgrades.

Community Impact

The power outage caused significant disruptions for residents and local businesses. Many households faced challenges as their morning routines were interrupted—everything from preparing breakfast to working from home became more complicated without electricity. Schools in the affected areas also faced challenges, as some had to adjust their schedules and operations.

Local businesses, particularly those dependent on refrigeration and electronic payment systems, felt the immediate impact. Restaurants struggled to serve customers without power, while grocery stores dealt with potential food spoilage, leading to concerns about lost inventory and revenue. The outage underscored the vulnerability of businesses to infrastructure failures, as recent Toronto outages have shown, prompting discussions about contingency plans and backup systems.

Emergency Response

Seattle City Light’s swift response was crucial in minimizing the outage's impact. Utility crews worked through the day to restore power, and the company provided regular updates to the community, keeping residents informed about progress and estimated restoration times. This transparent communication was essential in alleviating some of the frustration among those affected, and contrasts with extended outages in Houston that heightened public concern.

Furthermore, the outage served as a reminder of the importance of emergency preparedness for both individuals and local governments, and of utility disaster planning that supports resilience. Many residents were left unprepared for an extended outage, prompting discussions about personal emergency kits, alternative power sources, and community resources available during such incidents. Local officials encouraged residents to stay informed about power outages and to have a plan in place for emergencies.

Broader Implications for Infrastructure

This incident highlights the broader challenges facing urban infrastructure. Many cities, including Seattle, are grappling with aging power grids that struggle to keep up with modern demands, and power failures can disrupt transit systems like the London Underground during peak hours. Experts suggest that regular assessments and updates to infrastructure are critical to ensuring reliability and resilience against both natural and human-made disruptions.

In response to increasing frequency and severity of power outages, including widespread windstorm outages in Quebec, there is a growing call for investment in modern technologies and infrastructure. Smart grid technology, for instance, can enhance monitoring and maintenance, allowing utilities to respond more effectively to outages. Additionally, renewable energy sources and microgrid systems could offer more resilience and reduce reliance on centralized power sources.

The recent power outage in North Seattle was a significant event that affected thousands of residents and businesses. While the immediate response by Seattle City Light was commendable, the incident raised important questions about infrastructure reliability and emergency preparedness. As cities continue to grow and evolve, the need for modernized power systems and improved contingency planning will be crucial to ensuring that communities can withstand future disruptions.

As residents reflect on this experience, it serves as a reminder of the interconnectedness of urban living and the critical importance of reliable infrastructure in maintaining daily life. With proactive measures, cities can work towards minimizing the impact of such outages and building a more resilient future for their communities.

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Ontario-Quebec Electricity Deal explores hydro imports, terawatt hours, electricity costs, greenhouse gas cuts, and baseload impacts, amid debates on Pickering nuclear operations and competitive procurement in Ontario's long-term energy planning.

Key Points

A proposed hydro import deal from Quebec, balancing costs, emissions, and reliability for Ontario electricity customers.

✅ Draft 20-year, 8 TWh offer reported by La Presse disputed

✅ Ontario seeks lower costs and GHG cuts versus alternatives

✅ Not a baseload replacement; Pickering closure not planned

Ontario is negotiating a possible energy swap agreement to buy electricity from Quebec, but the government is disputing a published report that it is preparing to sign a deal for enough electricity to power a city the size of Ottawa.

La Presse reported Tuesday that it obtained a copy of a draft, 20-year deal that says Ontario would buy eight terawatt hours a year from Quebec – about 6 per cent of Ontario’s consumption – whether the electricity is consumed or not.

Ontario Energy Minister Glenn Thibeault’s office said the province is in discussions to build on an agreement signed last year for Ontario to import up to two terawatt hours of electricity a year from Quebec.

But his office released a letter dated late last month to his Quebec counterpart, in which Mr. Thibeault said the offer extended in June was unacceptable because it would increase the average residential electricity bill by $30 a year.

“I am hopeful that your continued support and efforts will help to further discussions between our jurisdictions that could lead to an agreement that is in the best interest of both Ontario and Quebec,” Mr. Thibeault wrote July 27 to Pierre Arcand.

Ontario would prepare a “term sheet” for the next stage of discussions ahead of the two ministers meeting at the Energy and Mines Ministers Conference later this month in New Brunswick, Mr. Thibeault wrote.

Any future agreements with Quebec will have to provide a reduction in Ontario electricity rates compared with other alternatives and demonstrate measurable reductions in greenhouse gas emissions, he wrote.

Progressive Conservative Leader Patrick Brown said Ontario doesn’t need eight terawatt hours of additional power and suggested it means the Liberal government is considering closing power facilities such as the Pickering nuclear plant early.

A senior Energy Ministry official said that is not on the table. The government has said it intends to keep operating two units at Pickering until 2022, and the other four units until 2024.

Even if the Quebec offer had been accepted, the energy official said, that power wouldn’t have replaced any of Ontario’s baseload power because it couldn’t have been counted on 24 hours a day, 365 days a year.

The Society of Energy Professionals said Mr. Thibeault was right to reject the deal, but called on him to release the Long-Term Energy Plan – which was supposed to be out this spring – before continuing negotiations.

Some commentators have argued for broader reforms to address Ontario's hydro system challenges, urging policymakers to review all options as negotiations proceed.

The Ontario Energy Association said the reported deal would run counter to the government’s stated energy objectives amid concerns over electricity prices in the province.

“Ontarians will not get the benefit of competition to ensure it is the best of all possible options for the province, and companies who have invested in Ontario and have employees here will not get the opportunity to provide alternatives,” president and chief executive Vince Brescia said in a statement. “Competitive processes should be used for any new significant system capacity in Ontario.”

The Association of Power Producers of Ontario said it is concerned the government is even considering deals that would “threaten to undercut a competitive marketplace and long-term planning.”

“Ontario already has a surplus of energy, so it’s very difficult to see how this deal or any other sole-source deal with Quebec could benefit the province and its ratepayers,” association president and CEO David Butters said in a statement.

The Ontario Waterpower Association also said such a deal with Quebec would “present a significant challenge to continued investment in waterpower in Ontario.”

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Hong Kong Electricity Tariff Increase reflects a projected 1-2% rise as HK Electric and CLP Power shift to cleaner fuel and natural gas, expand gas-fired units and LNG terminals, and adjust the fuel clause charge.

Key Points

An expected 1-2% 2018 rise from cleaner fuel, natural gas projects, asset growth, and shrinking fuel cost surpluses.

✅ Expected 1-2% rise amid cleaner fuel and gas shift

✅ Fuel clause charge and asset expansion pressure prices

✅ HK Electric and CLP Power urged to use surpluses prudently

Hong Kong customers have been asked to expect higher electricity bills next year, as seen with BC Hydro rate increases in Canada, with a member of a government panel on energy policy anticipating an increase in tariffs of one or two per cent.

The environment minister, Wong Kam-sing, also hinted they should be prepared to dig deeper into their pockets for electricity, as debates over California electric bills illustrate, in the wake of power companies needing to use more expensive but cleaner fuel to generate power in the future.

HK Electric supplies power to Hong Kong Island, Lamma Island and Ap Lei Chau. Photo: David Wong

The city’s two power companies, HK Electric and CLP Power, are to brief lawmakers on their respective annual tariff adjustments for 2018, amid Ontario electricity price pressures drawing international attention, at a Legislative Council economic development panel meeting on Tuesday.

HK Electric supplies electricity to Hong Kong Island and neighbouring Lamma Island and Ap Lei Chau, while CLP Power serves Kowloon and the New Territories, including Lantau Island.

Wong said on Monday: “We have to appreciate that when we use cleaner fuel, there is a need for electricity tariffs to keep pace. I believe it is the hope of mainstream society to see a low-carbon and healthier environment.”

Secretary for the Environment Wong Kam-sing believes most people desire a low-carbon environment. Photo: Sam Tsang

But he declined to comment on how much the tariffs might rise.

World Green Organisation chief executive William Yu Yuen-ping, also a member of the Energy Advisory Committee, urged the companies to better use their “overflowing” surpluses in their fuel cost recovery accounts.

Tariffs are comprised of two components: a basic amount reflecting a company’s operating costs and investments, and the fuel clause charge, which is based on what the company projects it will pay for fuel for the year.

William Yu of World Green Organisation says the companies should use their surpluses more carefully. Photo: May Tse

Critics have claimed the local power suppliers routinely overestimate their fuel costs and amass huge surpluses.

In recent years, the two managed to freeze or cut their tariffs thanks to savings from lower fuel costs. Last year, HK Electric offered special rebates to its customers, which saw its tariff drop by 17.2 per cent. CLP Power froze its own charge for 2017.

Yu said the two companies should use the surpluses “more carefully” to stabilise tariffs.

Rise after fall in Hong Kong electricity use linked to subsidies

“We estimate a big share of the surplus has been used up and so the honeymoon period is over.”

Based on his group’s research, Yu believed the tariffs would increase by one or two per cent.

Economist and fellow committee member Billy Mak Sui-choi said the expansion of the power companies’ fixed asset bases, such as building new gas-fired units and offshore liquefied natural gas terminals, a pattern reflected in Nova Scotia's 14% rate hike recently approved by regulators, would also cause tariffs to rise.

To fight climate change and improve air quality, the government has pledged to cut carbon intensity by between 50 and 60 per cent by 2020. Officials set a target of boosting the use of natural gas for electricity generation to half the total fuel mix from 2020.

Both power companies are privately owned and monitored by the government through a mutually agreed scheme of control agreements, akin to oversight seen under the UK energy price cap in other jurisdictions. These require the firms to seek government approval for their development plans, including their projected basic tariff levels.

At present, the permitted rate of return on their net fixed assets is 9.99 per cent. The deals are due to expire late next year.

Earlier this year, officials reached a deal with the two companies on the post-2018 scheme, settling on a 15-year term. The new agreements slash their permitted rate of return to 8 per cent.

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Vancouver October 2024 Windstorm brought extreme weather to British Columbia, causing power outages, storm damage, and downed lines as BC Hydro crews led emergency response and restoration, highlighting climate change resilience and community preparedness.

Key Points

A severe storm with 100 km/h gusts that caused outages and damage in Vancouver, prompting wide power restoration.

✅ 100 km/h gusts toppled trees and downed power lines

✅ Over 200,000 BC Hydro customers lost electricity

✅ Crews and communities coordinated emergency response

In October 2024, a powerful windstorm swept through the Vancouver area, resulting in widespread power outages and disruption across the region. The storm, characterized by fierce winds and heavy rainfall, reflected conditions seen when strong winds in the Miami Valley knocked out power earlier this year, and was part of a larger weather pattern that affected much of British Columbia. Residents braced for the impacts, with local authorities and utility companies preparing for the worst.

The Storm's Impact

The windstorm hit Vancouver with wind gusts exceeding 100 km/h, toppling trees, and downing power lines. As the storm progressed, reports of damaged properties and fallen trees began to flood in. Many neighborhoods experienced significant power outages, mirroring widespread outages in Quebec earlier in the season, with thousands of residents left without electricity for extended periods. The areas hardest hit included the West End, Kitsilano, and parts of the North Shore, where the impact of the storm was particularly severe.

Utility companies, including BC Hydro operations, mobilized their crews quickly in response to the storm's aftermath. Emergency response teams worked tirelessly to restore power, often facing challenging conditions. The restoration efforts were complicated by the sheer number of outages reported—over 200,000 customers were affected at the height of the storm. Crews encountered not only downed lines but also hazardous conditions as they navigated through debris-laden streets.

Community Response and Resilience

In the wake of the storm, the community showcased remarkable resilience. Local residents rallied together to assist one another, sharing resources and providing support to those most affected. Many community centers opened their doors as emergency shelters, offering warmth and safety to those without power, a step also taken when a London power outage disrupted mornings for thousands across the city.

Authorities also emphasized the importance of preparedness in such situations. They urged residents to have emergency kits ready, including food, water, and essential supplies, noting that nearby areas like North Seattle can face sudden outages with little warning. Local officials highlighted the value of staying informed through weather updates and alerts, allowing residents to make informed decisions during extreme weather events.

The Role of Climate Change

The October windstorm serves as a stark reminder of the increasing frequency and intensity of extreme weather events, a trend often linked to climate change. Experts have noted that rising global temperatures are contributing to more severe weather patterns, including stronger storms and increased Toronto flooding events. As cities like Vancouver face the reality of climate change, discussions about infrastructure resilience and adaptation strategies have gained urgency.

City planners and environmental advocates are pushing for initiatives that enhance the city's ability to withstand extreme weather. This includes improving stormwater management systems, increasing green spaces to absorb rainfall, and investing in renewable energy sources. By addressing these challenges proactively, Vancouver aims to mitigate the impacts of future storms and protect its residents.

Moving Forward

As recovery efforts continue, the focus now shifts to restoring normalcy and preparing for future weather events. Residents are encouraged to report any ongoing outages or hazards to local authorities and to stay updated through reliable news sources. BC Hydro and other utility companies are committed to transparency, providing regular updates on power restoration efforts, even as outages can persist for days as seen in Toronto after a spring storm.

The October 2024 windstorm will be remembered not only for its immediate impacts but also as a catalyst for discussions on resilience and community preparedness. As Vancouver looks ahead, the lessons learned from this storm will shape strategies for better handling extreme weather, ensuring that the city is equipped to face the challenges posed by a changing climate.

In conclusion, while the windstorm caused significant disruption and hardship for many, it also highlighted the strength of community spirit and the importance of proactive planning in the face of climate challenges. Vancouver's response and recovery will be crucial in building a more resilient future for all its residents.

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Philippines Renewable Energy Mini-Grids address rising electricity demand, rolling blackouts, off-grid electrification, and decentralized power in an archipelago, leveraging solar, wind, and hybrid systems to close the generation capacity gap and expand household access.

Key Points

Decentralized solar, wind, and hybrid systems powering off-grid areas to relieve shortages and expand access.

✅ Targets 2.3M unelectrified homes with reliable clean power

✅ Mitigates rolling blackouts via modular mini-grid deployments

✅ Supports energy access, resilience, and grid decentralization

The reason why IRENA made its study in the Philippines is because of the country’s demand for electricity is on a steady rise while the generating capacity lags behind. To provide households the electricity, the government is constrained to implement rolling blackouts in some regions. By 2030, the demand for electricity is projected to reach 30 million kilowatts as compared to 17 million kilowatts which is its current generating capacity.

One of the country’s biggest conglomerations, San Miguel Corporation is accountable for almost 20% of power output. It has power plants that has a 900,000-kW generation capacity. Another corporation in the energy sector, Aboitiz Power, has augmented its facilities as well to keep up with the demand. As a matter fact, even foreign players such as Tokyo Electric Power and Marubeni, as a result of the gradual privatization of the power industry which started in 2001, have built power plants in the country, a challenge mirrored in other regions where electricity for all demands greater investment, yet the power supply remains short.

And so, the IRENA came up with the study entitled “Accelerating the Deployment of Renewable Energy Mini-Grids for Off-Grid Electrification – A Study on the Philippines” to provide a clearer picture of what the current state of the crisis is and lay out possible solutions. It showed that as of 2016, a record year for renewables worldwide, the Philippines has approximately 2.3 million households without electricity. With only 89.6 percent of household electrification, that leaves about 2.36 million homes either with limited power of four to six hours each day or totally without electricity.

By the end of 2017, the Philippine government will have provided 90% of Philippine households with electricity. It is worth mentioning that in 2014, the National Capital Region together with two other regions had received 90 percent electrification. However, some areas are still unable to access power that’s within or above the national average. IRENA’s study has become a source of valuable information and analysis to the Philippines’ power systems and identified ways on how to surmount the challenges involving power systems decentralization, with renewable energy funding supporting those mini-grids which are either powered in parts or in full by renewable energy resources. This, however, does not discount the fact that providing electricity in every household still is an on-going struggle. Considering that the Philippines is an archipelago, providing enough, dependable, and clean modern energy to the entire country, including the remote and isolated islands is difficult. The onset of renewable energy is a viable and cost-effective option to support the implementation of mini-grids, as shown by Ireland's green electricity targets rising rapidly.

 

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Noncarbon Electricity Investment Strategy helps utilities hedge policy uncertainty, carbon tax risks, and emissions limits by scaling wind, solar, and CCS, avoiding stranded assets while balancing costs, reliability, and climate policy over decades.

Key Points

A strategy for utilities to invest 20-30 percent of capacity in low carbon sources to hedge emissions and carbon risks.

✅ Hedges future carbon tax and emissions limits

✅ Targets 20-30 percent of new generation from clean sources

✅ Reduces stranded asset risk and builds renewables capacity

When utility executives make decisions about building new power plants, a lot rides on their choices. Depending on their size and type, new generating facilities cost hundreds of millions or even billions of dollars. They typically will run for 40 or more years — 10 U.S. presidential terms. Much can change during that time.

Today one of the biggest dilemmas that regulators and electricity industry planners face is predicting how strict future limits on greenhouse gas emissions will be. Future policies will affect the profitability of today’s investments. For example, if the United States adopts a carbon tax 10 years from now, it could make power plants that burn fossil fuels less profitable, or even insolvent.

These investment choices also affect consumers. In South Carolina, utilities were allowed to charge their customers higher rates to cover construction costs for two new nuclear reactors, which have now been abandoned because of construction delays and weak electricity demand. Looking forward, if utilities are reliant on coal plants instead of solar and wind, it will be much harder and more expensive for them to meet future emissions targets, even as New Zealand's electrification push accelerates abroad. They will pass the costs of complying with these targets on to customers in the form of higher electricity prices.

With so much uncertainty about future policy, how much should we be investing in noncarbon electricity generation in the next decade? In a recent study, we proposed optimal near-term electricity investment strategies to hedge against risks and manage inherent uncertainties about the future.

We found that for a broad range of assumptions, 20 to 30 percent of new generation in the coming decade should be from noncarbon sources such as wind and solar energy across markets. For most U.S. electricity providers, this strategy would mean increasing their investments in noncarbon power sources, regardless of the current administration’s position on climate change.

Many noncarbon electricity sources — including wind, solar, nuclear power and coal or natural gas with carbon capture and storage — are more expensive than conventional coal and natural gas plants. Even wind power, which is often mentioned as competitive, is actually more costly when accounting for costs such as backup generation and energy storage to ensure that power is available when wind output is low.

Over the past decade, federal tax incentives and state policies designed to promote clean electricity sources spurred many utilities to invest in noncarbon sources. Now the Trump administration is shifting federal policy back toward promoting fossil fuels. But it can still make economic sense for power companies to invest in more expensive noncarbon technologies if we consider the potential impact of future policies.

How much should companies invest to hedge against the possibility of future greenhouse gas limits? On one hand, if they invest too much in noncarbon generation and the federal government adopts only weak climate policies throughout the investment period, utilities will overspend on expensive energy sources.

On the other hand, if they invest too little in noncarbon generation and future administrations adopt stringent emissions targets, utilities will have to replace high-carbon energy sources with cleaner substitutes, which could be extremely costly.

Economic modeling with uncertainty

We conducted a quantitative analysis to determine how to balance these two concerns and find an optimal investment strategy given uncertainty about future emissions limits. This is a core choice that power companies have to make when they decide what kinds of plants to build.

First we developed a computational model that represents the sectors of the U.S. economy, including electric power. Then we embedded it within a computer program that evaluates decisions in the electric power sector under policy uncertainty.

The model explores different electric power investment decisions under a wide range of future emissions limits with different probabilities of being implemented. For each decision/policy combination, it computes and compares economy-wide costs over two investment periods extending from 2015 to 2030.

We looked at costs across the economy because emissions policies impose costs on consumers and producers as well as power companies. For example, they may lead to higher electricity, fuel or product prices. By seeking to minimize economy-wide costs, our model identifies the investment decision that produces the greatest overall benefits to society.

More investments in clean generation make economic sense

We found that for a broad range of assumptions, the optimal investment strategy for the coming decade is for 20 to 30 percent of new generation to be from noncarbon sources. Our model identified this as the best level because it best positions the United States to meet a wide range of possible future policies at a low cost to the economy.

From 2005-2015, we calculated that about 19 percent of the new generation that came online was from noncarbon sources. Our findings indicate that power companies should put a larger share of their money into noncarbon investments in the coming decade.

While increasing noncarbon investments from a 19 percent share to a 20 to 30 percent share of new generation may seem like a modest change, it actually requires a considerable increase in noncarbon investment dollars. This is especially true since power companies will need to replace dozens of aging coal-fired power plants that are expected to be retired.

In general, society will bear greater costs if power companies underinvest in noncarbon technologies than if they overinvest. If utilities build too much noncarbon generation but end up not needing it to meet emissions limits, they can and will still use it fully. Sunshine and wind are free, so generators can produce electricity from these sources with low operating costs.

In contrast, if the United States adopts strict emissions limits within a decade or two, they could prevent carbon-intensive generation built today from being used. Those plants would become “stranded assets” — investments that are obsolete far earlier than expected, and are a drain on the economy.

Investing early in noncarbon technologies has another benefit: It helps develop the capacity and infrastructure needed to quickly expand noncarbon generation. This would allow energy companies to comply with future emissions policies at lower costs.

Seeing beyond one president

The Trump administration is working to roll back Obama-era climate policies such as the Clean Power Plan, and to implement policies that favor fossil generation. But these initiatives should alter the optimal strategy that we have proposed for power companies only if corporate leaders expect Trump’s policies to persist over the 40 years or more that these new generating plants can be expected to run.

Energy executives would need to be extremely confident that, despite investor pressure from shareholders, the United States will adopt only weak climate policies, or none at all, into future decades in order to see cutting investments in noncarbon generation as an optimal near-term strategy. Instead, they may well expect that the United States will eventually rejoin worldwide efforts to slow the pace of climate change and adopt strict emissions limits.

In that case, they should allocate their investments so that at least 20 to 30 percent of new generation over the next decade comes from noncarbon sources. Sustaining and increasing noncarbon investments in the coming decade is not just good for the environment — it’s also a smart business strategy that is good for the economy.

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