Cameco takes hit as uranium sales fall

By Calgary Herald


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Lower earnings in uranium, fuel and electricity led to a 30 per cent drop in second quarter earnings for Cameco Corp.

The company reported net earnings of $150 million, or 44 cents per share, down from $205 million (58 cents per share) for the same period in 2007.

Earnings per share were higher than analysts expected, and Cameco's stock price recovered from a fall of 43 cents, to $33.32. Revenues were $620 million, down from $725 million in the 2007 quarter.

"Since Cameco's quarterly results vary significantly, comparing today's results to our record second quarter last year is not a good indicator of future performance," said Jerry Grandey, Cameco's president and CEO, in the second quarter report.

"We will continue to benefit from our uranium contracting strategy, which will provide upside benefit from rising market prices and protection should prices fall."

Lower uranium sales volumes offset higher realized selling prices, the company said. By comparison, uranium deliveries were unusually high in the second quarter of 2007, making up 35 per cent of last year's total.

The average realized price was up 27 per cent to $43.84 US per pound, from $30.87 US last year.

To the end of June, Cameco had mined 8.9 million pounds of uranium, down from 10.1 million pounds for the same six months of 2007. Cameco plans to mine 19.6 million pounds in 2008, down from a projected 20.6 million.

In a conference call with analysts and media, questions were wide-ranging, but many were asked about Cigar Lake. Cameco was forced to cease remediation work at that property recently when the mine shaft began to take on a substantial amount of water. The mine had originally flooded in 2006.

"While the event at Cigar Lake has set us back, we have made significant progress toward our vision to be a leading nuclear energy company in several other areas since the first quarter," Grandey said.

He also added that Cameco has completed the acquisition of the Kintyre deposit in Western Australia, which offers the potential for low-cost production and further diversifies the company's portfolio.

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Hydro-Québec will refund a total of $535 million to customers who were account holders in 2018 or 2019

Hydro-Québec Bill 34 Refund issues $535M customer credits tied to electricity rates, consumption-based rebates, and variance accounts, averaging $60 per account and 2.49% of 2018-2019 usage, via bill credits or mailed cheques.

 

Key Points

A $535M credit refunding 2.49% of 2018-2019 usage to Hydro-Québec customers via bill credits or cheques.

✅ Applies to 2018-2019 consumption; average refund about $60.

✅ Current customers get bill credits; former customers receive cheques.

✅ Refund equals 2.49% of usage from variance accounts under prior rates.

 

Following the adoption of Bill 34 in December 2019, a total amount of $535 million will be refunded to customers who were Hydro-Québec account holders in 2018 or 2019. This amount was accumulated in variance accounts required under the previous rate system between January 1, 2018, and December 31, 2019.

If you are still a Hydro-Québec customer, a credit will be applied to your bill in the coming weeks, and improving billing layout clarity is a focus in some provinces as well. The amount will be indicated on your bill.

An average refund amount of $60. The refund amount is calculated based on the quantity of electricity that each customer consumed in 2018 and 2019. The refund will correspond to 2,49% of each customer's consumption between January 1, 2018, and December 31, 2019, for an average of approximately $60, while Ontario hydro rates are set to increase on Nov. 1.

The following chart provides an overview of the refund amount based on the type of home. Naturally, the number of occupants, electricity use habits and features of the home, such as insulation and energy efficiency, may have a significant impact on the amount of the refund, and in other provinces, oversight debates continue following a BC Hydro fund surplus revelation.

What if you were an account holder in 2018 or 2019 but you are no longer a Hydro-Québec customer?
People who were account holders in 2018 or 2019, but who are no longer Hydro-Québec customers will receive their credit by cheque, a lump sum credit approach seen elsewhere.

To receive their cheque, these people must get in touch to update their address in one of the following ways:  

If they have a Hydro-Québec Customer Space and remember their access code, they can update their profile.

Anyone without a Customer Space or who doesn't remember their access code can fill out the Request for a credit form at the following address: www.hydroquebec.com/credit in which they can indicate the address where they wish to receive their cheque, where applicable.

Those who cannot send us their address online can call 514 385-7252 or 1 888 385-7252 to give it to a customer services representative, as utilities like Hydro One have moved to reconnect customers in some cases. Note that the process will take longer on the phone, especially if the call volume is high.

UPDATE: Hydro-Québec will be returning an additional $35 million to customers under the adoption of Bill 34, amid overcharging allegations reported elsewhere.

Energy Minister Jonatan Julien announced on Tuesday that the public utility will be refunding a total of $535 million to customers between January and April.

The legislation, which was passed in December, allows the Quebec government to take control of the rates charged for electricity in the province, including decisions on whether to seek a rate hike next year under the new framework.

 

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Tornadoes and More: What Spring Can Bring to the Power Grid

Spring Storm Grid Risks highlight tornado outbreaks, flooding, power outages, and transmission disruptions, with NOAA flood outlooks, coal and barge delays, vulnerable nuclear sites, and distribution line damage demanding resilience, reliability, and emergency preparedness.

 

Key Points

Spring Storm Grid Risks show how tornadoes and floods disrupt power systems, fuel transport, and plants guide resilience.

✅ Tornado outbreaks and derechos damage distribution and transmission

✅ Flooding drives outages via treefall, substation and plant inundation

✅ Fuel logistics disrupted: rail coal, river barges, road access

 

The storm and tornado outbreak that recently barreled through the US Midwest, South and Mid-Atlantic was a devastating reminder of how much danger spring can deliver, despite it being the “milder” season compared to summer and winter.  

Danger season is approaching, and the country is starting to see the impacts. 

The event killed at least 32 people across seven states. The National Weather Service is still tallying up the number of confirmed tornadoes, which has already passed 100. Communities coping with tragedy are assessing the damage, which so far includes at least 72 destroyed homes in one Tennessee county alone, and dozens more homes elsewhere. 

On Saturday, April 1–the day after the storm struck–there were 1.1 million US utility customers without power, even as EIA reported a January power generation surge earlier in the year. On Monday morning, April 3, there were still more than 80,000 customers in the dark, according to PowerOutage.us. The storm system brought disruptions to both distribution grids–those networks of local power lines you generally see running overhead to buildings–as well as the larger transmission grid in the Midwest, which is far less common than distribution-level issues. 

While we don’t yet have a lot of granular details about this latest storm’s grid impacts, recent shifts in demand like New York City's pandemic power patterns show how operating conditions evolve, and it’s worth going through what else the country might be in for this spring, as well as in future springs. Moreover, there are steps policymakers can take to prepare for these spring weather phenomena and bolster the reliability and resilience of the US power system. 

Heightened flood risk 
The National Oceanic Atmospheric Administration (NOAA) said in a recent outlook that about 44 percent of the United States is at risk of floods this spring, equating to about 146 million people. This includes most of the eastern half of the country, the federal agency said. 

The agency also sees “major” flood risk potential in some parts of the Upper Mississippi River Basin, and relatively higher risk in the Sierra Nevada region, due in part to a historic snowpack in California.  

Multiple components of the power system can be affected by spring floods. 

Power lines – Floods can saturate soil and make trees more likely to uproot and fall onto power lines. This has been contributing to power outages during California’s recent heavy storms–called atmospheric rivers–that started over the winter. In other regions, soil moisture has even been used as a predictor of where power outages will occur due to hurricanes, so that utility companies are better prepared to send line repair crews to the right areas. Hurricanes are primarily a summer and fall phenomenon, and summer also brings grid stress from air conditioning demand in many states, so for now, during spring, they are less of a concern.  

Fuel transport – Spring floods can hinder the transportation of fuels like coal. While it is a heavily polluting fossil fuel that is set to continue declining as a fuel source for US electricity generation, with the EIA summer outlook for wind and solar pointing to further shifts, coal still accounted for roughly 20 percent of the country’s generation in 2022.   

About 70 percent of US coal is transported at least part of the way by trains. The rail infrastructure to transport coal from the Powder River Basin in Montana and Wyoming–the country’s primary coal source–was proven to be vulnerable to extreme floods in the spring of 2011, and even more extreme floods in the spring of 2019. The 2019 floods’ disruptions of coal shipments to power plants via rail persisted for months and into the summertime, also affecting river shipments of coal by barge. In June 2019, hundreds of barges were stalled in the Mississippi River, through which millions of tons of the fossil fuel are normally transported. 

Power plants – Power plants themselves can also be at risk of flooding, since most of them are sited near a source of water that is used to create steam to spin the plants’ turbines, and conversely, low water levels can constrain hydropower as seen in Western Canada hydropower drought during recent reservoir shortfalls. Most US fossil fuel generating capacity from sources like methane gas, which recently set natural gas power records across the grid, and coal utilizes steam to generate electricity. 

However, much of the attention paid to the flood risk of power plant sites has centered on nuclear plants, a key source of low-carbon electricity discussed in IAEA low-carbon electricity lessons that also require a water source for the creation of steam, as well as for keeping the plant cool in an emergency. To name a notable flood example here in the United States–both visually and substantively–in 2011, the Fort Calhoun nuclear plant in Nebraska was completely surrounded by water due to late-spring flooding along the Missouri River. This sparked a lot of concerns because it was just a few months after the March 2011 meltdown of the Fukushima Daiichi nuclear plant in Japan. The public was thankfully not harmed by the Nebraska incident, but this was unfortunately not an isolated incident in terms of flood risks posed to the US nuclear power fleet. 

 

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FortisAlberta Takes Necessary Precautions to Provide Electricity Service for Alberta

FortisAlberta COVID-19 response delivers safe electricity distribution across Alberta, with remote monitoring, 24/7 support, outage alerts, dispersed crews, and business continuity measures to sustain essential services for customers and communities.

 

Key Points

Plan ensuring reliable electricity in Alberta through 24/7 support, remote monitoring, outage alerts, and dispersed crews.

✅ 24/7 customer support via 310-WIRE and mobile app

✅ Remote monitoring and rapid outage restoration

✅ Dispersed crews in 50 communities for faster response

 

As the COVID-19 pandemic continues to evolve in Alberta (and around the world), FortisAlberta is taking the necessary actions and precautions informed by utility disaster planning to protect the health and well-being of its employees and to provide electricity service to its customers. FortisAlberta serves more than half a million customers with the electricity they depend on to take care of their families and community members throughout our province.

"We recognize these are challenging times as while most Albertans are asked to stay home others continue to work in the community to provide essential services, including utility workers in Ontario demonstrating support efforts. As your electricity distribution provider, please be assured you can count on us to do what we do best – provide our customers with safe and reliable electricity service wherever and whenever they need it," says Michael Mosher, FortisAlberta President and CEO.

FortisAlberta is proud to be a part of the communities it serves and commits to keeping the lights on for its customers. The company is providing a full range of services for its customers and has instilled best practices within critical parts of its business. The company's control centre continues to remotely monitor, control, and restore, where possible, the delivery of power across the entire province, including during events such as an Alberta grid alert that stress the system. Early in March, FortisAlberta implemented its business continuity plan and the company remains fully accessible to customers 24/7 by phone at 310-WIRE (9473) or through its mobile app where customers can report outages online or view details of an outage. Customers can also sign up for outage alerts to their mobile phone and/or email address to let them know if an outage does occur.

FortisAlberta's power line employees are geographically dispersed across 50 different communities so they can quickly address any issues that may arise. The company has implemented work from home measures and isolation best practices, and is planning for potential on-site lockdowns where necessary to ensure no disruption to customers.

FortisAlberta will continue to remain in close communication with its stakeholders to provide updates to customers and with industry associations to share guidance specific to the electricity sector, including insights on the evolving U.S. grid response to COVID-19 from peer utilities. FortisAlberta will also continue to invest in and empower its communities by contributing to organizations that offer programs and services aligned with the greatest needs in the communities it serves.

With the Alberta Government's recent announcement to provide relief to eligible Albertans by deferring electricity and gas charges for up to 90 days, similar to some B.C. relief measures being implemented, FortisAlberta is committed to working with stakeholders and retail partners to ensure this option is available to customers quickly and efficiently, and to learn from initiatives like the Hydro One relief fund that support customers.

 

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BC Hydro completes major milestone on Site C transmission line work

Site C 500 kV transmission lines strengthen the BC Hydro grid, linking the new substation and Peace Canyon via a 75 kilometre right-of-way to deliver clean energy, with 400 towers built and both circuits energized.

 

Key Points

High-voltage lines connecting Site C substation to the BC Hydro grid, delivering clean energy via Peace Canyon.

✅ Two 75 km circuits between Site C and Peace Canyon

✅ Connect new 500 kV substation to BC Hydro grid

✅ Over 400 towers built along existing right-of-way

 

The second and final 500 kilovolt, 75 kilometre transmission line on the Site C project, which has faced stability questions in recent years, has been completed and energized.

With this milestone, the work to connect the new Site C substation to the BC Hydro grid, amid treaty rights litigation that has at times shaped schedules, is complete. Once the Site C project begins generating electricity, much like when the Maritime Link first power flowed between Newfoundland and Nova Scotia, the transmission lines will help deliver clean energy to the rest of the province.

The two 75 kilometre transmission lines run along an existing right-of-way between Site C and the Peace Canyon generating station, a route that has seen community concerns from some northerners. The project’s first 500 kilovolt, 75 kilometre transmission line – along with the Site C substation – were both completed and energized in the fall of 2020.

BC Hydro awarded the Site C transmission line construction contract to Allteck Line Contractors Inc. (now Allteck Limited Partnership) in 2018. Since construction started on this part of the project in summer 2018, crews have built more than 400 towers and strung lines, even as other interties like the Manitoba-Minnesota line have faced scheduling uncertainty, over a total of 150 kilometres.

The two transmission lines are a major component of the Site C project, comparable to initiatives such as the New England Clean Power Link in scale, which also consists of the new 500 kilovolt substation and expanding the existing Peace Canyon 500 kilovolt gas-insulated switchgear to incorporate the two new 500 kilovolt transmission line terminals.

Work to complete three other 500 kilovolt transmission lines that will span one kilometre between the Site C generating station and Site C substation, similar to milestones on the Maritime Link project, is still underway. This work is expected to be complete in 2023.

 

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New EPA power plant rules will put carbon capture to the test

CCUS in the U.S. Power Sector drives investments as DOE grants, 45Q tax credits, and EPA carbon rules spur carbon capture, geologic storage, and utilization, while debates persist over costs, transparency, reliability, and emissions safeguards.

 

Key Points

CCUS captures CO2 from power plants for storage or use, backed by 45Q tax credits, DOE funding, and EPA carbon rules.

✅ DOE grants and 45Q credits aim to de-risk project economics.

✅ EPA rules may require capture rates to meet emissions limits.

✅ Transparency and MRV guard against tax credit abuse.

 

New public and private funding, including DOE $110M for CCUS announced recently, and expected strong federal power plant emissions reduction standards have accelerated electricity sector investments in carbon capture, utilization and storage,’ or CCUS, projects but some worry it is good money thrown after bad.

CCUS separates carbon from a fossil fuel-burning power plant’s exhaust through carbon capture methods for geologic storage or use in industrial and other applications, according to the Department of Energy. Fossil fuel industry giants like Calpine and Chevron are looking to take advantage of new federal tax credits and grant funding for CCUS to manage potentially high costs in meeting power plant performance requirements, amid growing investor pressure for climate reporting, including new rules, expected from EPA soon, on reducing greenhouse gas emissions from existing power plants.

Power companies have “ambitious plans” to add CCUS to power plants, estimated to cause 25% of U.S. CO2 emissions. As a result, the power sector “needs CCUS in its toolkit,” said DOE Office of Fossil Energy and Carbon Management Assistant Secretary Brad Crabtree. Successful pilots and demonstrations “will add to investor confidence and lead to more deployment” to provide dispatchable clean energy, including emerging CO2-to-electricity approaches for power system reliability after 2030,| he added.

But environmentalists and others insist potentially cost-prohibitive CCUS infrastructure, including CO2 storage hub initiatives, must still prove itself effective under rigorous and transparent federal oversight.

“The vast majority of long-term U.S. power sector needs can be met without fossil generation, and better options are being deployed and in development,” Sierra Club Senior Advisor, Strategic Research and Development, Jeremy Fisher, said, pointing to carbon-free electricity investments gaining momentum in the market. CCUS “may be needed, but without better guardrails, power sector abuses of federal funding could lead to increased emissions and stranded fossil assets,” he added.

New DOE CCUS project grants, an increased $85 per metric ton, or tonne, federal 45Q tax credit, and the forthcoming EPA power plant carbon rules and the federal coal plan will do for CCUS what similar policies did for renewables, advocates and opponents agreed. But controversial past CCUS performance and tax credit abuses must be avoided with transparent reporting requirements for CO2 capture, opponents added.

 

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Warning: Manitoba Hydro can't service new 'energy intensive' customers

Manitoba Hydro capacity constraints challenge clean energy growth as industrial demand, hydrogen projects, EV batteries, and electrification strain the grid; limited surplus, renewables, storage, and transmission bottlenecks hinder new high-load connections.

 

Key Points

Limited surplus power blocks new energy-intensive loads until added generation and transmission expand Manitoba's grid.

✅ No firm commitments for new energy-intensive industrial customers

✅ Single large load could consume remaining surplus capacity

✅ New renewables need transmission; gas, nuclear face trade-offs

 

Manitoba Hydro lacks the capacity to provide electricity to any new "energy intensive" industrial customers, the Crown corporation warns in a confidential briefing note that undercuts the idea this province can lure large businesses with an ample supply of clean, green energy, as the need for new power generation looms for the utility.

On July 28, provincial economic development officials unveiled an "energy roadmap" that said Manitoba Hydro must double or triple its generating capacity, as electrical demand could double over the next two decades in order to meet industrial and consumer demand for electricity produced without burning fossil fuels.

Those officials said 18 potential new customers with high energy needs were looking at setting up operations in Manitoba — and warned the province must be careful to choose businesses that provide the greatest economic benefit as well as the lowest environmental impact.

In a briefing note dated Sept. 13, obtained by CBC News, Manitoba Hydro warns it doesn't have enough excess power to hook up any of these new heavy electricity-using customers to the provincial power grid.

There are actually 57 proposals to use large volumes of electricity, Hydro says in the note, including eight projects already in the detailed study phase and nine where the proponents are working on construction agreements.

"Manitoba Hydro is unable to offer firm commitments to prospective customers that may align with Manitoba's energy roadmap and/or provincial economic development objectives," Hydro warns in the note, explaining it is legally obliged to serve all existing customers who need more electricity.

"As such, Manitoba Hydro cannot reserve electric supply for particular projects."

Hydro says in the note its "near-term surplus electricity supply" is so limited amid a Western Canada drought that "a single energy-intensive connection may consume all remaining electrical capacity."

Adding more electrical generating capacity won't be easy, even with new turbine investments underway, and will not happen in time to meet demands from customers looking to set up shop in the province, Hydro warns.

The Crown corporation goes on to say it's grappling with numerous requests from existing and prospective energy-intensive customers, mainly for producing hydrogen, manufacturing electric vehicle batteries and switching from fossil fuels to electricity, such as to use electricity for heat in buildings.

In a statement, Hydro said it wants to ensure Manitobans know the corporation is not running out of power — just the ability to meet the needs of large new customers, and continues to provide clean energy to neighboring provinces today.

"The size of loads looking to come to Manitoba are significantly larger than we typically see, and until additional supply is available, that limits our ability to connect them," Hydro spokesperson Bruce Owen said in a statement.

Adding wind power or battery storage, for example, would require the construction of more transmission lines, and deals such as SaskPower's purchase depend on that interprovincial infrastructure as well.

Natural gas plants are relatively inexpensive to build but do not align with efforts to reduce carbon emissions. Nuclear power plants require at least a decade of lead time to build, and tend to generate local opposition.

Hydro has also ruled out building another hydroelectric dam on the Nelson River, where the Conawapa project was put on hold in 2014.

 

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