New Hydro One CEO aims to repair relationship with Ontario government — and investors

ESCC COVID-19 Response coordinates utilities, public power, and cooperatives to protect the energy grid and electricity reliability, aligning with DOE, DHS, CDC, FERC, and NERC on continuity of operations, mutual assistance, and supply chain resilience.

Key Points

An industry government effort ensuring reliability, operations continuity and supply chain stability during COVID-19.

✅ Twice weekly ESCC calls align DOE, DHS, HHS, CDC, FERC, NERC priorities.

✅ Focus on control centers, generation, quarantine access, mutual aid.

✅ Resource Guide supports localized decisions and supply chain resilience.

The nation’s investor-owned electric companies, public power utilities, and electric cooperatives are working together to protect the energy grid as the U.S. grid addresses COVID-19 challenges and ensure continued access to safe and reliable electricity during the COVID-19 global health crisis.

The electric power industry has been planning for years, including extensive disaster planning across utilities, for an emergency like the COVID-19 pandemic, as well as countless other types of emergencies, and the industry is coordinating closely with government partners through the Electricity Subsector Coordinating Council (ESCC) to ensure that organizations have the resources they need to keep the lights on.

The ESCC is holding high-level coordination calls twice a week with senior leadership from the Departments of Energy, Homeland Security, and Health and Human Services, the Centers for Disease Control and Prevention, the Federal Energy Regulatory Commission, and the North American Electric Reliability Corporation. These calls help ensure that industry and government work together to resolve any challenges that arise during this health emergency and that electricity remains safe for customers.

“Electricity and the energy grid are indispensable to our society, and one of our greatest strengths as an industry is our ability to convene and adapt quickly to changing circumstances and challenging events,” said Edison Electric Institute President Tom Kuhn. “Our industry plans for all types of contingencies, with examples such as local response planning, and strong industry-government coordination and cross-sector collaboration are critical to our planning and response. We appreciate the ongoing leadership and support of our government partners as we all respond to COVID-19 and power through this crisis together.”

The ESCC quickly mobilized and established strategic working groups dedicated to identifying and solving for short-, medium-, and long-term issues facing the industry during the COVID-19 pandemic, with utilities implementing necessary precautions to maintain service across regions.

The five current areas of focus are:

1. Continuity of operations at control centers, including on-site staff lockdowns when needed
2. Continuity of operations at generation facilities
3. Access to, and operations in, restricted or quarantined areas
4. Protocols for mutual assistance
5. Supply chain challenges

“The electric power industry has taken steps to prepare for the evolving coronavirus challenges, while maintaining our commitment to the communities we serve, including customer relief efforts announced by some providers,” said National Rural Electric Cooperative Association CEO Jim Matheson. “We have a strong track record of preparing for many kinds of emergencies that could impact the ability to generate and deliver electricity. While planning for this situation is unique from other business continuity planning, we are taking actions to prepare to operate with a smaller workforce, potential disruptions in the supply chain, and limited support services for an extended period of time.”

The ESCC has developed a COVID-19 Resource Guide linked here and available at electricitysubsector.org. This document was designed to support electric power industry leaders in making informed localized decisions in response to this evolving health crisis. The guide will evolve as additional recommended practices are identified and as more is learned about appropriate mitigation strategies.

“The American Public Power Association (APPA) continues to work with our communityowned public power members and our industry and government partners to gather and share upto-date information, best practices, and guidance to support them in safely maintaining operational integrity,” said APPA CEO Joy Ditto.

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US Electricity Demand Outlook examines EIA forecasts, GDP decoupling, energy efficiency, electrification, electric vehicles, grid load growth, and weather variability to frame long term demand trends and utility planning scenarios.

Key Points

An analysis of EIA projections showing demand decoupling from GDP, with EV adoption and efficiency shaping future grid load.

✅ EIA lowers load growth; demand decouples from GDP.

✅ Efficiency and sector shifts depress kWh sales.

✅ EV adoption could revive load and capacity needs.

Electricity producers and distributors are in an unusual business. The product they provide is available to all customers instantaneously, literally at the flip of a switch. But the large amount of equipment, both hardware and software to do this takes years to design, site and install.

From a long range planning perspective, just as important as a good engineering design is an accurate sales projections. For the US electric utility industry the most authoritative electricity demand projec-tions come from the Department of Energy’s Energy Information Administration (EIA). EIA's compre-hensive reports combine econometric analysis with judgment calls on social and economic trends like the adoption rate of new technologies that could affect future electricity demand, things like LED light-ing and battery powered cars, and the rise of renewables overtaking coal in generation.

Before the Great Recession almost a decade ago, the EIA projected annual growth in US electricity production at roughly 1.5 percent per year. After the Great Recession began, the EIA lowered its projections of US electricity consumption growth to below 1 percent. Actual growth has been closer to zero. While the EIA did not antici-pate the last recession or its aftermath, we cannot fault them on that.

After the event, though, the EIA also trimmed its estimates of economic growth. For the 2015-2030 period it now predicts 2.1 percent economic and 0.3 percent electricity growth, down from previously projections of 2.7 percent and 1.3 percent respectively. (See Figures 1 and 2.)

Table 1. EIA electric generation projections by year of forecast (kWh billions)

Table 2. EIA forecast of GDP by year of forecast (billion 2009 $)

Back in 2007, the EIA figured that every one percent increase in economic activity required a 0.48 percent in-crease in electric generation to support it. By 2017, the EIA calculated that a 1 percent growth in economic activity now only required a 0.14 percent increase in electric output. What accounts for such a downgrade or disconnect between electricity usage and economic growth? And what factors might turn the numbers 
around?

First, the US economy lost energy intensive heavy industry like smelting, steel mills and refineries; patterns in China's electricity sector highlight how industrial shifts can reshape power demand. A more service oriented economy (think health care) relies more heavily on the movement of data or information and uses far less power than a manufacturing-oriented economy.

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Second, internet shopping has hurt so-called "brick and mortar" retailers. Despite the departure of heavy industry, in years past a burgeoning US commercial sector increased its demand and usage of electricity to offset the industrial decline. But not anymore. Energy efficiency measures as well as per-haps greater concern about global warming and greenhouse gas emissions and have cut into electricity sales. “Do more with less” has the right ring to it.

But there may be other components to the ongoing decline in electricity usage. Academic studies show that electricity usage seems to increase with income along an S curve, and flattens out after a certain income level. That is, if you earn $1 billion per year you do not (or cannot) use ten times a much electricity as someone earning only $100 million.

But people at typical, middle income levels increase or decrease electricity usage when incomes rise or fall. The squeeze on middle income families was discussed often in the late presidential campaign. In recent decades an increasing percentage of income has gone to a small percentage of the population at the top of the income scale. This trend probably accounts for some weakness in residential sales. This suggests that government policy addressing income inequality would also boost electricity sales.

Population growth affects demand for electricity as well as the economy as a whole. The EIA has made few changes in its projections, showing 0.7 percent per year population growth in 2015- 2030 in both the 2007 and 2017 forecasts. Recent studies, however, have shown a drop in the birth rate to record lows. More troubling, from a national health perspective is that the average age of death may have stopped rising. Those two factors point to lower population growth, especially if the government also restricts immi-gration. Thus, the US may be approaching a period of rather modest population growth.

All of the above factors point to minimal sales growth for electricity producers in the US--perhaps even lower than the seemingly conservative EIA estimates. But the cloud on the horizon has a silver lining in the shape of an electric car. Both the United Kingdom and France have set dates to end of production of automobiles with internal combustion engines. Several European car makers have declared that 20 percent of their output will be electric vehicles by the early 2020s. If we adopt automobiles powered by electricity and not gasoline or diesel, electricity sales would increase by one third. For the power indus-try, electric vehicles represent the next big thing.

We don’t pretend to know how electric car sales will progress. But assume vehicle turnover rates re-main at the current 7 percent per year and electric cars account for 5 percent of sales in the first five years (as op-posed to 1 percent now), 20 percent in the next five years and 50 percent in the third five year period. Wildly optimistic assumptions? Maybe. By 2030, electric cars would constitute 28 percent of the vehicle fleet. They would add about 10 percent to kilowatt hour sales by that date, assuming that battery efficiencies do not improved by then. Those added sales would require increased electric generation output, with low-emissions sources expected to cover almost all the growth globally. They would also raise long term growth rates for 2015-2030 from the present 0.3 percent to 1.0 percent. The slow upturn in demand should give the electric companies time to gear up so to speak.

In the meantime, weather will continue to play a big role in electricity consumption. Record heat-induced demand peaks are being set here in the US even as surging global demand puts power systems under strain worldwide.

Can we discern a pattern in weather conditions 15 years out? Maybe we can, but that is one topic we don’t expect a government agency to tackle in public right now. Meantime, weather will affect sales more than anything else and we cannot predict the weather. Or can we?

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EU Clean Energy Transition underscores the shift from fossil fuels to renewable energy, decarbonization, and hydrogen, as soaring gas prices and electricity volatility spur resilience, storage, and joint procurement across the single market.

Key Points

EU Clean Energy Transition shifts from fossil fuels to renewables, enhancing resilience and reducing price volatility.

✅ Cuts reliance on Russian gas and fossil imports

✅ Scales renewables, hydrogen, and energy storage

✅ Stabilizes electricity prices via market resilience

Soaring energy prices, described as Europe's energy nightmare, are a stark reminder of how dependent Europe is on fossil fuels and should serve to accelerate the shift towards renewable forms of energy.

"This experience today of the rising energy prices is a clear wake up call... that we should accelerate the transition to clean energy, wean ourselves off the fossil fuel dependency," a senior EU official told reporters as the European Commission unveiled a series of emergency electricity measures aimed at tackling the crisis.

The European Union is facing a sharp spike in energy prices, driven by increased global demand as the world recovers from the pandemic and lower-than-expected natural gas deliveries from Russia. Wholesale electricity prices have increased by 200% compared to the 2019 average, underscoring why rolling back electricity prices is tougher than it appears, according to the European Commission.

"Winter is coming and for many electricity costs are larger than they have been for a decade," Energy Commissioner Kadri Simson told reporters on Wednesday.

80 million European households struggle to stay warm
Wholesale gas prices — which have surged to record highs in France, Spain, Germany and Italy, amid reports of Germany's local utilities crying for help — are expected to remain high through the winter.

Prices are expected to fall in the spring, but remain higher than the average of past years, according to the Commission. Most EU countries rely on gas-fired power stations to meet electricity demand, and about 40% of that gas comes from Russia, with the EU outlining a plan to dump Russian energy to reduce this reliance, according to Eurostat.

Simson said that the Commission's initial assessment indicates that Russia's Gazprom has been fulfilling its long-term contracts "while providing little or no additional supply."
Kremlin spokesman Dmitry Peskov told journalists on Wednesday that Russia has increased gas supplies to Europe to the maximum possible level under existing contracts, but could not exceed those thresholds. "We can say that Russia is flawlessly fulfilling all contractual obligations," he said.

Measures EU states can take to help consumers and businesses cope with soaring electricity costs include emergency income support to households to help them pay their energy bills, alongside potential gas price cap strategies, state aid for companies, and targeted tax reductions. Member states can also temporarily delay bill payments and put in place processes to ensure that no one is disconnected from the grid.

Green energy the solution
The Commission also published a series of longer term measures the bloc should consider to reduce its dependence on fossil fuels and tackle energy price volatility, despite opposition from nine countries to electricity market reforms.

"Our immediate priority is to protect Europe's consumers, especially the most vulnerable," Simson said. "Second, we want to make our energy system better prepared and more resilient, so we don't have to face a similar situation in the future," she added.

Energy crisis could force more UK factories to close
This would require speeding up the green energy transition rather than slowing it down, Simson said. "We are not facing an energy price surge because of our climate policy or because renewable energy is expensive. We are facing it because the fossil fuel prices are spiking," she continued.

"The only long term remedy against demand shocks and price volatility is a transition to a green energy system."

Simson said she will propose to EU leaders a package of measures to decarbonize Europe's gas and hydrogen markets by 2050. Other measures to improve energy market stability could include increasing gas storage capacity and buying gas jointly at an EU level.

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Ontario Energy Storage Procurement accelerates grid flexibility as IESO seeks lithium batteries, pumped storage, compressed air, and flywheels to balance renewables, support EV charging, and complement gas peakers during Pickering refits and rising electricity demand.

Key Points

Ontario's plan to procure 2,500 MW of storage to firm renewables, aid EV charging, and add flexible grid capacity.

✅ 2,500 MW storage plus 1,500 MW gas for 2025-2027 reliability

✅ Mix: lithium batteries, pumped storage, compressed air, flywheels

✅ Enables VPPs via EVs, demand response, and hybrid solar-storage

Ontario is staring down an electricity supply crunch and amid a rush to secure more power, it is plunging into the world of energy storage — a relatively unknown solution for the grid that experts say could also change energy use at home.

Beyond the sprawling nuclear plants and waterfalls that generate most of the province’s electricity sit the batteries, the underground caverns storing compressed air to generate electricity, and the spinning flywheels waiting to store energy at times of low demand and inject it back into the system when needed.

The province’s energy needs are quickly rising, with the proliferation of electric vehicles and growing Canada-U.S. collaboration on EV adoption, and increasing manufacturing demand for electricity on the horizon just as a large nuclear plant that supplies 14 per cent of Ontario’s electricity is set to be retired and other units are being refurbished.

The government is seeking to extend the life of the Pickering Nuclear Generating Station, planning an import agreement for power with Quebec, rolling out conservation programs, and — controversially — relying on more natural gas to fill the looming gap between demand and supply, amid Northern Ontario sustainability debates.

Officials with the Independent Electricity System Operator say a key advantage of natural gas generation is that it can quickly ramp up and down to meet changes in demand. Energy storage can provide that same flexibility, those in the industry say.

Energy Minister Todd Smith has directed the IESO to secure 1,500 megawatts of new natural gas capacity between 2025 and 2027, along with 2,500 megawatts of clean technology such as energy storage that can be deployed quickly, which together would be enough to power the city of Toronto.

It’s a far cry from the 54 megawatts of energy storage in use in Ontario’s grid right now.

Smith said in an interview that it’s the largest active procurement for energy storage in North America.

“The one thing that we want to ensure that we do is continue to add clean generation as much as possible, and affordable and clean generation that’s reliable,” he said.

Rupp Carriveau, director of the Environmental Energy Institute at the University of Windsor, said the timing is good.

“The space is there, the technology is there, and the willingness among private industry to respond is all there,” he said. “I know of a lot of companies that have been rubbing their hands together, looking at this potential to construct storage capacity.”

Justin Rangooni, the executive director of Energy Storage Canada, said because of the relatively tight timelines, the 2,500 megawatts is likely to be mostly lithium batteries. But there are many other ways to store energy, other than a simple battery.

“As we get to future procurements and as years pass, you’ll start to see possibly pump storage, compressed air, thermal storage, different battery chemistry,” he said.

Pump storage involves using electricity during off-peak periods to pump water into a reservoir and slowly releasing it to run a turbine and generate electricity when it’s needed. Compressed air works similarly, and old salt caverns in Goderich, Ont., are being used to store the compressed air.

In thermal storage, electricity is used to heat water when demand is low and when it’s needed, water stored in tanks can be used as heat or hot water.

Flywheels are large spinning tops that can store kinetic energy, which can be used to power a turbine and produce electricity. A flywheel facility in Minto, Ont., also installed solar panels on its roof and became the first solar storage hybrid facility in Ontario, said a top IESO official.

Katherine Sparkes, the IESO’s director of innovation, research and development, said it’s exciting, from a grid perspective.

“As we kind of look to the future and we think about gas phase out and electrification, one of the big challenges that all power systems across North America and around the world are looking at is: how do you accommodate increasing amounts of variable, renewable resources and just make better use of your grid assets,” she said.

“Hybrids, storage generation pairings, gives you that opportunity to deal with the variability of renewables, so to store electricity when the sun isn’t shining, or the wind isn’t blowing, and use it when you need it to.”

The small amount of storage already in the system provides more fine tuning of the electricity system, whereas 2,500 megawatts will be a more “foundational” part of the toolkit, said Sparkes.

But what’s currently on the grid is far from the only storage in the province. Many commercial and industrial consumers, such as large manufacturing facilities or downtown office buildings, are using storage to manage their electricity usage, relying on battery energy when prices are high.

The IESO sees that as an opportunity and has changed market rules to allow those customers to sell electricity back to the grid when needed.

As well, the IESO has its eye on the thousands of mobile batteries in electric vehicles, a trend seen in California, that shuttle people around the province every day but sit unused for much of the time.

“If we can enable those batteries to work together in aggregation, or work with other types of technologies like solar or smart building systems in a configuration, like a group of technologies, that becomes a virtual power plant,” Sparkes said.

Peak Power, a company that seeks to “make power plants obsolete,” is running a pilot project with electric vehicles in three downtown Toronto office buildings in which the car batteries can provide electricity to reduce the facility’s overall demand during peak periods using vehicle-to-building charging with bidirectional chargers.

In that model, one vehicle can earn $8,000 per year, said cofounder and chief operating officer Matthew Sachs.

“Battery energy storage will change the energy industry in the same way and for the same reasons that refrigeration changed the milk industry,” he said.

“As you had refrigeration, you could store your commodity and that changed the distribution channels of it. So I believe that energy storage is going to radically change the distribution channels of energy.”

If every home has a solar panel, an electric vehicle and a residential battery, it becomes a generating station, a decentralization that’s not only more environmentally friendly, but also relies less on “monopolized utilities,” Sachs said.

In the next decade, energy demand from electric vehicles is projected to skyrocket, making vehicle-to-grid integration increasingly relevant, and Sachs said the grid can’t grow enough to accommodate a peak demand of hundreds of thousands of vehicles being plugged in to charge at the end of the workday commute. Authorities need to be looking at more incentives such as time-of-use pricing and price signals to ensure the demand is evened out, he said.

“It’s a big risk as much as it’s a big opportunity,” he said. “If we do it wrong, it will cost us billions to fix. If we do it right, it can save us billions.”

Jack Gibbons, the chair of the Ontario Clean Air Alliance, said the provincial and federal governments need to fund and install bidirectional chargers in order to fully take advantage of electric vehicles.

“This is a huge missed opportunity,” he said.

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Texas Electricity Complaints surged to a three-year high, highlighting Public Utility Commission data on billing disputes, meter problems, and service issues in the competitive retail electricity market and consumer protection process.

Key Points

Consumer filings to Texas PUC about billing, service, and meters, with 2018 reaching a three-year high.

✅ 5,371 complaints/inquiries in FY2018; 43.8% involved billing disputes.

✅ Service issues 15.8% and meters 12.6%; PUC publishes complaint stats.

✅ Advocates urge monitoring to keep deregulated retail market healthy.

The number of electricity service-related complaints and inquiries filed with the state’s Public Utility Commission reached a three-year high this past fiscal year, an advocacy group said Tuesday.

According to the Texas Coalition for Affordable Power, a nonprofit that advocates for low electricity prices, Texans filed 5,371 complaints or inquiries with the commission between September 2017 and August of this year. That’s up from the 4,175 complaints or inquiries filed during the same period in 2017 and the 4,835 filed in 2016. The complaints and inquiries included concerns with billing, meters and service.

“This stark uptick in complaints is disappointing — especially after several years of generally improving numbers,” Jay Doegey, the coalition's executive director, said in a written statement. “In percentage terms, the year-to-year rise in complaints is the greatest in a decade. Clearly, many Texans remain frustrated with aspects of their electric service.”

The utility commission did not immediately respond to a request for comment.

While complaints and inquiries increased in 2018, the number of complaints and inquiries has generally decreased since 2009, when Texans filed 15,956 with the commission. That could be because there have been lower residential electricity prices and because Texans have become more familiar with the state’s competitive retail electricity system over the last decade, the coalition's report said.

And complaints from 2018 are well below 2003 levels, when the number of complaints and inquiries soared to more than 17,000, a year after Texas deregulated most of its electricity market structure at the time.

But Jake Dyer, a policy analyst at the coalition, said his group is closely watching the uptick in complaints this year as the Texas power grid faces recurring strains.

“We are invested in making sure the competition works,” Dyer said. “When you see an uptick like this, you should watch very closely to make sure the market remains healthy and to make sure there is not something else going on.”

However, Dyer said that it is too early to know what that something else that is going on might be.

According to the report, concerns about billing made up most of the complaints and inquiries filed this year at 43.8 percent. That’s up from 42.5 percent in fiscal year 2017. Concerns about the provision of electrical service and about electrical meters also ranked high, constituting 15.8 percent and 12.6 percent of the complaints and inquiries, respectively.

The Public Utility Commission publishes customer complaint statistics on its website. The Texas Coalition for Affordable Power takes into account both complaints and inquiries filed with the commission for its report in order “to gauge general consumer sentiment and to maintain a uniform methodology across the study period.”

Texans can file an official complaint with the the commission's Customer Protection Division. Under the complaint process, the complaint is sent to the electric company, which has 21 days to respond.

Some providers outside the competitive market, such as electric cooperatives, drew praise for performance during the 2021 winter storm.

Following the 2021 winter storm, Texas lawmakers proposed an electricity market bailout to stabilize costs and reliability.

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Australia electricity grid transition is accelerating as renewables, wind, solar, and storage drive decentralised generation, emissions cuts, and NEM trade shifts, with South Australia becoming a net exporter post-Hazelwood closure and rooftop solar surging.

Key Points

Australia electricity shift to renewables, distributed generation and storage, cutting emissions, reshaping NEM flows.

✅ South Australia now exports power post-Hazelwood closure

✅ Rooftop solar is the fastest-growing NEM generation source

✅ Gas peaking and storage investments balance variable renewables

The politics may not change much, but Australia’s electricity grid is changing before our very eyes – slowly and inevitably becoming more renewable, more decentralised, and in step with Australia's energy transition that is challenging the pre-conceptions of many in the industry.

The latest national emissions audit from The Australia Institute, which includes an update on key electricity trends in the national electricity market, notes some interesting developments over the last three months.

The most surprising of those developments may be the South Australia achievement, which shows that since the closure of the Hazelwood brown coal generator in Victoria in March 2017, and as renewables outpacing brown coal in other markets, South Australia has become a net exporter of electricity, in net annualised terms.

Hugh Saddler, lead author of the study, notes that this is a big change for South Australia, which in 1999 and 2000, when it had only gas and local coal, used to import 30% of its electricity demand.

#google#

The fact that wholesale prices in South Australia were higher in other states – then, as they are now – has nothing to with wind and solar, but the fact that it has no low-cost conventional source and a peaky demand profile (then and now).

“The difference today is that the state is now taking advantage of its abundant resources of wind and solar radiation, and the new technologies which have made them the lowest cost sources of new generation, to supply much of its electricity requirements,” Saddler writes.

Other things to note about the flows between states is that Victoria was about equal on imports and exports with its three neighbouring states, despite the closure of Hazelwood. NSW continues to import around 10% of its needs from cheaper providers in Queensland.

Gas-fired generation had increased in the last year or two in South Australia as a result of the Northern closure, but is still below the levels of a decade ago.

But because it is expensive, this is likely to spur more investment in storage.

As for rooftop solar, Saddler notes that the share of residential solar in the grid is still relatively small but, despite excess solar risks flagged by distributors, it is the most steadily growing generation source in the NEM.

That line is expected to grow steadily. By 2040, or perhaps 2050, the share of distributed generation, which includes rooftop solar, battery storage and demand management, is expected to reach nearly half of all Australia’s grid demand.

Saddler, says, however, that the increase in large-scale solar over the last few months is a significant milestone in Australia’s transition towards clean electricity generation, mirroring trends in India's on-grid solar development seen in recent years. (See very top graph).

“Firstly, they are a concrete demonstration that the construction cost advantage, which wind enjoyed over solar until a year or two ago, is gone.

“From now on we can expect new capacity to be a mix of both technologies. Indeed, the Clean Energy Regulator states that it expects solar to account for half of all (new renewable) capacity by 2020, and the US is moving toward 30% from wind and solar as well.”

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