Bill would halt new coal-fired plants

Commercial Electric Tariffs explain utility rate structures, peak demand charges, kWh vs kW pricing, time-of-use periods, voltage, delivery, capacity ratchets, and riders, guiding facility managers in tariff analysis for accurate energy savings.

Key Points

Commercial electric tariffs define utility pricing for energy, demand, delivery, time-of-use periods, riders, and ratchet charges.

✅ Separate kWh charges from kW peak demand fees.

✅ Verify time-of-use windows and demand interval length.

✅ Review riders, capacity ratchets, and minimum demand clauses.

Especially during these tough economic times, as major changes to electric bills are debated in some states, facility executives who don’t understand how their power is priced have been disappointed when their energy projects failed to produce expected dollar savings. Here’s how not to be one of them.

Your electric rate is spelled out in a document called a “tariff” that can be downloaded from your utility’s web page. A tariff should clearly spell out the costs for each component that is part of your rate, reflecting cost allocation practices in your region. Don’t be surprised to learn that it contains a bunch of them. Unlike residential electric rates, commercial electric bills are not based solely on the quantity of kilowatt-hours (kWh) consumed in a billing period (in the United States, that’s a month). Instead, different rates may apply to how your power is supplied, how it is delivered via electricity delivery charges, when it was consumed, its voltage, how fast it was used (in kW), and other factors.

If a tariff’s lingo and word structure are too opaque, spend some time with a utility account rep to translate it. Many state utility commissions also have customer advocates that may assist as they explore new utility rate designs that affect customers. Alternatively, for a fee, facility managers can privately chat with an energy consultant.

Common mistakes

Many facility managers try to estimate savings based on an averaged electric rate, i.e., annual electric spend divided by annual kWh. However, in markets where electricity demand is flat, such a number may obscure the fastest rising cost component: monthly peak demand charges, measured in dollars per kW (or kilo-volt-amperes, kVA).

This charge is like a monthly speeding ticket, based solely on the highest speed you drove during that time. In some areas, peak demand charges now account for 30 to 60 percent of a facility’s annual electric spend. When projecting energy cost savings, failing to separately account for kW peak demand and kWh consumption may result in erroneous results, and a lot of questions from the C-suite.

How peak demand charges are calculated varies among utilities. Some base it on the highest average speed of use across one hour in a month, while others may use the highest average speed during a 15- or 30-minute period. Others may average several of the highest speeds within a defined time period (for example, 8 a.m. to 6 p.m. on weekdays). It is whatever your tariff says it is.

Because some power-consuming (or producing) devices, including those tied to smart home electricity networks, vary in their operation or abilities, they may save money on a few — but not all — of those rate components. If an equipment vendor calculates savings from its product by using an average electric rate, take pause. Tell the vendor to return after the proposal has been redone using tariff-based numbers.

When a vendor is the only person calculating potential savings from using a product, there’s also a built-in conflict of interest: The person profiting from an equipment sale should not also be the one calculating its expected financial return. Before signing any energy project contracts, it’s essential that someone independent of the deal reviews projected savings. That person (typically an energy or engineering consultant) should be quite familiar with your facility’s electric tariff, including any special provisions, riders, discounts, etc., that may pertain. When this doesn’t happen, savings often don’t occur as planned. 

For example, some utilities add another form of demand charge, based on the highest kW in a year. It has various names: capacity, contract demand, or the generic term “ratchet charge.” Some utilities also have a minimum ratchet charge which may be based on a percent of a facility’s annual kW peak. It ensures collection of sufficient utility revenue to cover the cost of installed transmission and distribution even when a customer significantly cuts its peak demand.

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British Columbia electricity rate increase will raise BC Hydro bills 3.75% over 2025-2026 to fund infrastructure, Site C, and clean energy, balancing affordability, reliability, and energy security while keeping prices below the North American average.

Key Points

BC will raise BC Hydro rates 3.75% in 2025-2026, about $3.75/month, to fund grid upgrades, Site C, and clean energy.

✅ 3.75% over 2025-2026; about $3.75/month on $100 average bill

✅ Funds Site C, grid maintenance, and clean energy capacity

✅ Keeps BC Hydro rates below North American averages

British Columbia's electricity rates will experience a 3.75% increase over the next two years, following an earlier 3% rate increase approval that set the stage, as confirmed by the provincial government on March 17, 2025. The announcement was made by Minister of Energy and Climate Solutions, Adrian Dix, who emphasized the decision's necessity for maintaining BC Hydro’s infrastructure while balancing affordability for residents.

For most households, the increase will amount to an additional $3.75 per month, based on an average BC Hydro bill of $100, though some coverage framed an earlier phase as a BC Hydro $2/month proposal that later evolved. While this may seem modest, the increase reflects a broader strategy to stabilize the utility's rates amidst economic challenges and ensure long-term energy security for the province.

Reasons Behind the Rate Hike

The rate increase comes during a period of rising costs in both global markets and local economies. According to Dix, the economic uncertainty stemming from trade dynamics and inflation has forced the government to act. Despite these pressures, and after a prior B.C. rate freeze to moderate impacts, the increase remains below cumulative inflation over the last several years, a move designed to shield consumers from the full force of these economic changes.

Dix also noted that, when adjusted for inflation, electricity rates in British Columbia in 2025 are effectively at the same price they were four decades ago. This stability, he argued, underscores the provincial government’s commitment to keeping rates as low as possible for residents, even as operating costs rise.

“We must take urgent action to protect British Columbians from the uncertainty posed by rising costs while building a strong, resilient electricity system for the long-term benefit of B.C.’s energy independence,” Dix said. He also highlighted the government's approach to minimizing the financial burden on consumers by keeping electricity costs well below the North American average.

Infrastructure and Maintenance Costs

The primary justification for the rate increase is to allow BC Hydro to continue its critical infrastructure development, including the Site C hydroelectric project, which is expected to become operational in the coming years. The increased costs of maintaining and upgrading the province's electricity grid also contribute to the need for higher rates.

The Site C project, a massive hydroelectric dam under construction on the Peace River, is expected to provide a substantial increase in clean, renewable energy capacity. However, such large-scale projects require significant investment and maintenance, both of which have contributed to the increased operating costs for BC Hydro.

A Strategic Move for Rate Stability

The provincial government has been clear that the rate increase will allow for a continuation of infrastructure development while keeping the rates manageable for consumers. The 3.75% increase will be spread across two years, with the first hike scheduled for April 1, 2025, reflecting the typical April rate changes BC Hydro implements, and the second for April 1, 2026.

Dix confirmed that the rate hike would still keep electricity costs among the lowest in North America, noting that British Columbians pay about half of what residents in Alberta pay for electricity. This is part of a broader effort by the provincial government to provide stable energy pricing while bolstering the transition to clean energy solutions, such as the Site C project and other renewable energy initiatives.

Addressing Public Concerns

Although the government has framed the increase as a necessary measure to ensure the province's long-term energy independence and reliability, the rate hikes are likely to face scrutiny from residents, particularly those already struggling with the rising cost of living, even as provinces like Ontario face their own Ontario hydro rate increase pressures this fall.

Public reactions to utility rate increases are often contentious, as residents feel the pressure of rising prices across various sectors, from housing to healthcare. However, the government has promised that the new rates will remain manageable, especially considering the relatively low rate increases compared to inflation and other regions where Manitoba Hydro scaled back a planned increase to temper impacts.

Furthermore, the increase comes as part of a broader strategy that aims to keep the overall impact on consumers as low as possible. Minister Dix emphasized that these rate increases were intended to ensure the continued reliability of BC Hydro’s services, without overwhelming ratepayers.

Long-Term Goals

Looking ahead, the province's strategy centers on not only maintaining affordable electricity rates but also reinforcing the importance of renewable energy, while some jurisdictions consider a 2.5% annual increase plan over multiple years to stabilize their grids. As climate change becomes an increasingly pressing issue, BC’s investments in clean energy projects like Site C aim to provide sustainable power for generations to come.

The government’s long-term vision involves building a resilient, energy-independent province that can weather future economic and environmental challenges. In this context, the rate increases are framed not just as a response to immediate inflationary pressures but as a necessary step in preparing BC’s energy infrastructure for the future.

The 3.75% rate increase set for 2025 and 2026 represents a balancing act between managing the financial health of BC Hydro and protecting consumers from higher costs. While the increase will have a modest effect on household bills, the long-term goal is to build a more robust and sustainable electricity system for British Columbia’s future. Through investments in clean energy and strategic infrastructure development, the province aims to keep electricity rates competitive while positioning itself as a leader in energy independence and climate action.

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New York faces soaring energy bills as utilities seek record rate hikes, aging grid infrastructure demands upgrades, and federal renewable policies shift. Consumers struggle with affordability, late payments, and rising costs of delivery and energy supply across the state.

Why is New York Facing Soaring Energy Bills?

New York faces soaring energy bills because utilities are raising rates to cover the costs of grid upgrades, inflation, and policy-driven changes in energy supply.

✅ Utilities seek double-digit rate hikes across the state

✅ Aging infrastructure and storm repairs increase delivery costs

✅ Federal policies and gas dependence push energy prices higher

New Yorkers are bracing for another wave of energy bill increases as utilities seek record-high rate hikes and policy changes ripple through the state’s power system. Electric bills in New York are the highest they’ve been in over a decade, and more than a million households are now at least two months behind on payments, a sign of pandemic energy insecurity that continues to strain budgets, owing utilities nearly $2 billion.

Record numbers of households have had their electricity or gas shut off this year — more than 61,000 in May alone — despite pandemic shut-off suspensions that had offered temporary relief, the highest the Public Utility Law Project (PULP) has ever recorded. “This August was the group’s busiest month ever,” said Laurie Wheelock, PULP’s executive director, citing a surge in calls to its hotline. “The top concern on people’s minds: rate hikes.”

Utilities across the state are pushing for significant price increases, citing aging infrastructure, the need for climate adaptation, and higher operating costs, as California regulators face calls for action amid rising bills. “We used to see single-digit rate hikes and now we see double-digit rate hikes,” said Jessica Azulay, executive director of the Alliance for a Green Economy. “That’s a new normal that is unacceptable.”

Several utilities have requested delivery rate increases of 25 percent or more, with some proposals as high as 39 percent. Upstate utilities NYSEG and RG&E are seeking to raise electric and gas bills by about $33 a month, although regulators are unlikely to approve the full amount.

The companies argue the hikes are needed “to pay for rebuilding an aging grid and expanding its capacity to meet residents’ and businesses’ service demands,” including storm repairs. They also claim the plan would create more than 1,000 jobs.

James Denn, a spokesperson for the Public Service Commission (PSC), said much of the cost pressure stems from “inflation, higher interest rates, supply chain disruptions, the global push to upgrade electrical infrastructure, and, most recently, the rising risk and uncertainty from tariffs,” trends reflected in U.S. electricity price data over the past two years.

While some have blamed New York’s clean-energy transition, a PSC report found that state climate policies account for only 5 to 9.5 percent of the average household’s electric bill, or approximately $10 to $12 per month. The bulk of the increases still come from traditional spending on infrastructure, storm resilience, and system expansion.

On the supply side, costs are rising too. President Donald Trump’s recent policies have threatened renewable-energy investment nationwide, even as states’ renewable ambitions carry significant costs, potentially adding to New York’s woes. His July “megabill” phases out a 30 percent federal tax credit for solar and wind unless projects begin construction by mid-2026. Industry experts warn that the changes could make renewables “more expensive to build” and “increase reliance on gas.”

“It just means more expensive power,” said Marguerite Wells of the Alliance for Clean Energy New York.

The state estimates Trump’s policy shifts could cost New York $60 billion in lost renewable investment. With fewer clean-energy projects moving forward, gas — which already supplies roughly half of the state’s electricity — will remain the dominant source, tying energy prices to volatile global markets and the kinds of price drivers seen in California in recent years.

Governor Kathy Hochul has called affordability “our greatest short-term challenge,” while consumer advocates are demanding reforms to reduce utility profits and overhaul “rate design,” and to strengthen protections such as the emergency disconnection moratorium that applies during declared emergencies.

“There is definitely a groundswell of concern,” Wheelock said. “We go to meetings and we’re getting questions about rate design, like, ‘What is the revenue decoupling mechanism?’ Never had that question before.”

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Hornsea One Offshore Wind Farm delivers first power to the UK grid, scaling renewable energy with 1.2GW capacity, giant offshore turbines, and Yorkshire coast infrastructure to replace delayed nuclear and cut fossil fuel emissions.

Key Points

Hornsea One Offshore Wind Farm is a 1.2GW UK project delivering offshore renewable power to about 1 million homes.

✅ 174 turbines over 407 km2; Siemens Gamesa supply chain in the UK

✅ 1.2GW capacity can power ~1m homes; phases scale with 10MW+ turbines

✅ Supports UK grid, replaces delayed nuclear, cuts fossil generation

An offshore windfarm on the Yorkshire coast that will dwarf the world’s largest when completed is to supply its first power to the UK electricity grid this week, mirroring advances in tidal electricity projects delivering to the grid as well.

The Danish developer Ørsted, which has installed the first of 174 turbines at Hornsea One, said it was ready to step up its plans and fill the gap left by failed nuclear power schemes.

The size of the project takes the burgeoning offshore wind power sector to a new scale, on a par with conventional fossil fuel-fired power stations.

Hornsea One will cover 407 square kilometres, five times the size of the nearby city of Hull. At 1.2GW of capacity it will power 1m homes, making it about twice as powerful as today’s biggest offshore windfarm once it is completed in the second half of this year.

“The ability to generate clean electricity offshore at this scale is a globally significant milestone at a time when urgent action needs to be taken to tackle climate change,” said Matthew Wright, UK managing director of Ørsted, the world’s biggest offshore windfarm builder.

The power station is only the first of four planned in the area, with a green light and subsidies already awarded to a second stage due for completion in the early 2020s, and interest from Japanese utilities underscoring growing investor appetite.

The first two phases will use 7MW turbines, which are taller than London’s Gherkin building.

But the latter stages of the Hornsea development could use even more powerful, 10MW-plus turbines. Bigger turbines will capture more of the energy from the wind and should lower costs by reducing the number of foundations and amount of cabling firms need to put into the water, with developers noting that offshore wind can compete with gas in the U.S. as costs fall.

Henrik Poulsen, Ørsted’s chief executive, said he was in close dialogue with major manufacturers to use the new generation of turbines, some of which are expected to approach the height of the Shard in London, the tallest building in the EU.

The UK has a great wind resource and shallow enough seabed to exploit it, and could even “power most of Europe if it [the UK] went to the extreme with offshore”, he said.

Offshore windfarms could help ministers fill the low carbon power gap created by Hitachi and Toshiba scrapping nuclear plants, the executive suggested. “If nuclear should play less of a role than expected, I believe offshore wind can step up,” he said.

New nuclear projects in Europe had been “dramatically delayed and over budget”, he added, in comparison to “the strong track record for delivering offshore [wind]”.

The UK and Germany installed 85% of new offshore wind power capacity in the EU last year, according to industry data, with wind leading power across several markets. The average power rating of the turbines is getting bigger too, up 15% in 2018.

The turbines for Hornsea One are built and shipped from Siemens Gamesa’s factory in Hull, part of a web of UK-based suppliers that has sprung up around the growing sector, such as Prysmian UK's land cables supporting grid connections.

Around half of the project’s transition pieces, the yellow part of the structure that connects the foundation to the tower, are made in Teeside. Many of the towers themselves are made by a firm in Campbeltown in the Scottish highlands. Altogether, about half of the components for the project are made in the UK.

Ørsted is not yet ready to bid for a share of a £60m pot of further offshore windfarm subsidies, to be auctioned by the government this summer, but expects the price to reach even more competitive levels than those seen in 2017.

Like other international energy companies, Ørsted has put in place contingency planning in event of a no-deal Brexit – but the hope is that will not come to pass. “We want a Brexit deal that will facilitate an orderly transition out of the union,” said Poulsen.

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British Columbia Bomb Cyclone disrupts coastal travel with severe wind gusts, heavy rainfall, widespread power outages, ferry cancellations, flooding, and landslides across Vancouver Island, straining emergency services and transport networks during the early holiday season.

Key Points

A rapidly intensifying storm hitting B.C.'s coast, causing damaging winds, heavy rain, power outages, and ferry delays.

✅ Wind gusts over 100 km/h and well above normal rainfall

✅ Power outages, flooded roads, and downed trees across the coast

✅ Ferry cancellations isolating communities and delaying supplies

A powerful storm, dubbed a "bomb cyclone," recently struck the British Columbia coast, wreaking havoc across the region. This intense weather system led to widespread disruptions, including power outages affecting tens of thousands of residents and the cancellation of ferry services, crucial for travel between coastal communities. The bomb cyclone is characterized by a rapid drop in pressure, resulting in extremely strong winds and heavy rainfall. These conditions caused significant damage, particularly along the coast and on Vancouver Island, where flooding and landslides led to fallen trees blocking roads, further complicating recovery efforts.

The storm's ferocity was especially felt in coastal areas, where wind gusts reached over 100 km/h, and rainfall totals were well above normal. The Vancouver region, already susceptible to storms during the winter months, faced dangerous conditions as power lines were downed, and transportation networks struggled to stay operational. Emergency services were stretched thin, responding to multiple weather-related incidents, including fallen trees, damaged infrastructure, and local flooding.

The ferry cancellations further isolated communities, especially those dependent on these services for essential supplies and travel. With many ferry routes out of service, residents had to rely on alternative transportation methods, which were often limited. The storm's timing, close to the start of the holiday season, also created additional challenges for those trying to make travel arrangements for family visits and other festive activities.

As cleanup efforts got underway, authorities warned that recovery would take time, particularly due to the volume of downed trees and debris. Crews worked to restore power and clear roads, while local governments urged people to stay indoors and avoid unnecessary travel, and BC Hydro's winter payment plan provided billing relief during outages. For those without power, the storm brought cold temperatures, and record electricity demand in 2021 showed how cold snaps strain the grid, making it crucial for families to find warmth and supplies.

In the aftermath of the bomb cyclone, experts highlighted the increasing frequency of such extreme weather events, driven in part by climate change and prolonged drought across the province. With the potential for more intense storms in the future, the region must be better prepared for these rapid weather shifts. Authorities are now focused on bolstering infrastructure to withstand such events, as all-time high demand has strained the grid recently, and improving early warning systems to give communities more time to prepare.

In the coming weeks, as British Columbia continues to recover, lessons learned from this storm will inform future responses to similar weather systems. For now, residents are advised to remain vigilant and prepared for any additional weather challenges, with recent blizzard and extreme cold in Alberta illustrating how conditions can deteriorate quickly.

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Hydro One Q2 Earnings surge on a one-time gain from a court ruling on a deferred tax asset, lifting profit, revenue, and adjusted EPS at Ontario's largest utility regulated by the Ontario Energy Board.

Key Points

Hydro One Q2 earnings jumped on an $867M court gain, with revenue at $1.67B and adjusted EPS improving to $0.39.

✅ One-time gain: $867M from tax appeal ruling.

✅ Revenue: $1.67B vs $1.41B last year.

✅ Adjusted EPS: $0.39 vs $0.26.

Hydro One Ltd., following the Peterborough Distribution sale transaction closing, reported a second-quarter profit of $1.1 billion, boosted by a one-time gain related to a court decision.

The power utility says it saw a one-time gain of $867 million in the quarter due to an Ontario court ruling on a deferred tax asset appeal that set aside an Ontario Energy Board decision earlier.

Hydro One says the profit amounted to $1.84 per share for the quarter ended June 30, amid investor concerns about uncertainties, up from $155 million or 26 cents per share a year earlier.

Shares also moved lower after the Ontario government announced leadership changes, as seen when Hydro One shares fell on the news in prior trading.

On an adjusted basis, it says it earned 39 cents per share for the quarter, despite earlier profit plunge headlines, up from an adjusted profit of 26 cents per share in the same quarter last year.

Revenue totalled $1.67 billion, up from $1.41 billion in the second quarter of 2019, while other Canadian utilities like Manitoba Hydro face heavy debt burdens.

Hydro One is Ontario’s largest electricity transmission and distribution provider, and its CEO compensation has drawn scrutiny in the province.

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