Call centre embraces solar option

By Globe and Mail


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LoyaltyOne had a dilemma when planning its new Mississauga call centre.

The company had committed $2-million to install an 800-panel solar power system, Canada's largest. But how could the company possibly show it off as an environmental showpiece when the panels would be located on the roof where most people will never see them?

Interior designers suggested incorporating the system's inverter panel - where the direct current (DC) generated by solar panels is converted into alternating current (AC) - as a design feature on one of the walls in the staff lounge.

Next to the pinball machines, pool table and team-building video games, employees will be able to see how sunshine is converted into electricity.

"When we started this process, we wanted to have an environmental landmark, to create something that our employees could learn from," explains Debbie Baxter, vice-president corporate sustainability and facilities for LoyaltyOne, the Toronto company that manages the Air Miles loyalty card program.

This month, 500 call-centre staff will move into 50,000 square feet of leased space in the new building, which was built to Leadership in Energy and Environmental Design (LEED) core and shell silver standards, while the interior will qualify for LEED gold, Ms. Baxter says. The building is managed by Bentall LP, and owned by British Columbia Investment Management Corp., that province's public-sector pension fund manager.

By the end of this year, 40 per cent of LoyaltyOne staff will be working in green office space, bringing the company a step closer to its mandate of leasing space only in buildings that are either LEED silver-certified or that meet similar environmental standards, Ms. Baxter says. Construction recently began on LoyaltyOne's new 8,500-square-foot Calgary office, which is designed to LEED silver, she says.

The Mississauga call centre features 800 photovoltaic panels as part of a solar power system capable of generating 165 kilowatts, making it the largest in Canada followed by the Horse Palace building on Toronto's Exhibition Place grounds at 100 kilowatts.

The renewable energy generated at the building will be fed into the provincial power grid, Ms. Baxter explains, and the building will draw from the grid. LoyaltyOne is in the process of applying to the feed-in tariff program under the Ontario government's Green Energy Act. Essentially the company would enter a 20-year agreement to sell its power to the Ontario Power Authority for just over 80 cents a kilowatt hour, Ms. Baxter says.

When tax incentives are included, it will likely take about 10 years for LoyaltyOne to break even on the solar power system investment, she says.

Aside from the main building rooftop panels, there is a solar installation in the outside parking area that generates electricity and heats water for low-flow showers, energy-efficient dishwashers and regular tap usage, says Fidel Reijerse, president of Resco Energy Inc., which designed and built the system and acted as general contractor for the solar project.

Because the project was so ambitious, the work was portioned out to several subcontractors. This included electrical, structural steel, and solar-specific installation companies, Mr. Reijerse says.

"No single provider is really prepared for a project of this size," Ms. Baxter adds. "From an installation standpoint, the majority of work has been happening in smaller projects and residential solar installations. When we tendered the project... we decided to spread the work over different trades and encourage them to grow a little bit because of the [under-developed] state of our solar implementation industry."

LoyaltyOne is spending $10-million to outfit the interior of the building, which features a massive open-concept ground floor with groupings of low-walled cubicles for call-centre workers. Two staff gathering areas are defined by unique curtains made from thousands of interconnected, wallet-sized Air Miles loyalty cards. "It serves to segregate the space so that people can use it as a meeting area," Ms. Baxter explains.

A design feature that Ms. Baxter describes as a "21st century forest," is the grouping of vertical support columns. Painted natural shades of blue, green and orange, the columns help to define the wide-open spaces and, functionally, hide cables and wires.

Additional environmental initiatives include a waste management program, the use of recycled content and low-emission materials in construction and interior finishings such as carpets, and the assignment of preferential parking spaces to staff who drive fuel efficient, low-emission vehicles. About 15 per cent of call-centre staff will participate in a work-from-home program.

While the building's large perimeter windows allow lots of natural daylight, solar tube skylights installed throughout the space augment energy-efficient light fixtures. The interiors of these vertical tubes feature a series of surfaces that refract and reflect solar light into the workspace.

Mr. Reijerse says that because large tenants like LoyaltyOne have high environmental expectations for their leased spaces, they are helping to establish the viability of large rooftop solar power systems.

"Tenants have been the leaders up until this point - they've really made demands on their landlords. But I think that's starting to change as more landlords recognize that in order to be competitive and attract top-tier clients they need to look at these types of amenity components," says Mr. Reijerse, whose company has created on-site energy generation systems for Campbell Soup's Toronto plant and the Mountain Equipment Co-op store in Burlington, Ont.

Stuart Wanlin, executive vice-president of Bentall LP in Toronto, says landlords, particularly in the institutional sector, have always tried to keep operating costs down by improving building efficiencies. Still, he expects Ontario's feed-in tariff program to be the catalyst for more solar roof projects.

"I know we have a couple of pilot projects for other clients and we're trying to get more solar installations on top of rooftops that our clients own," Mr. Wanlin says.

Another company, Pizza Pizza Ltd., has moved its head office to a 40-year-old Toronto building that it purchased, renovated and fitted with wind turbines and solar panels.

Altogether, 24 kilowatts will be generated and all of the energy will be used to help power the pizza chain's corporate office, call centre and warehouse, construction manager Stephen Poole says. The initiative will reduce the electrical load for the 138,000-square-foot building in the Etobicoke neighbourhood by 10 to 15 per cent.

The building was renovated to increase the amount of natural light in the office area. Additional environmental initiatives include the installation of a high-efficiency snow- and ice-melting system at the front entrance that reduces the need for salting in the winter.

Because Pizza Pizza has a mandate to reduce waste and use recycled materials in its retail operations, it was a "natural step for us to show everyone that we are trying to do our best for the environment," by renovating an existing building and powering it with renewable energy, says Pat Finelli, chief marketing officer for Pizza Pizza.

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British carbon tax leads to 93% drop in coal-fired electricity

Carbon Price Support, the UK carbon tax on power, slashed coal generation, cut CO2 emissions, boosted gas and imports via interconnectors, and signaled effective electricity market decarbonization across Great Britain and the EU.

 

Key Points

A UK power-sector carbon tax that drove coal off the grid, cut emissions, and shifted generation toward gas and imports.

✅ Coal generation fell from 40% to 3% in six years

✅ Rate rose to £18/tCO2 in 2015, boosting the coal-to-gas switch

✅ Added ~£39 to 2018 bills; imports via interconnectors eased prices

 

A tax on carbon dioxide emissions in Great Britain, introduced in 2013, has led to the proportion of electricity generated from coal falling from 40% to 3% over six years, a trend mirrored by global coal decline in power generation, according to research led by UCL.

British electricity generated from coal fell from 13.1 TWh (terawatt hours) in 2013 to 0.97 TWh in September 2019, and was replaced by other less emission-heavy forms of generation such as gas, as producers move away from coal in many markets. The decline in coal generation accelerated substantially after the tax was increased in 2015.

In the report, 'The Value of International Electricity Trading', researchers from UCL and the University of Cambridge also showed that the tax—called Carbon Price Support—added on average £39 to British household electricity bills, within the broader context of UK net zero policies shaping the energy transition, collecting around £740m for the Treasury, in 2018.

Academics researched how the tax affected electricity flows to connected countries and interconnector (the large cables connecting the countries) revenue between 2015—when the tax was increased to £18 per tonne of carbon dioxide—and 2018. Following this increase, the share of coal-fired electricity generation fell from 28% in 2015 to 5% in 2018, reaching 3% by September 2019. Increased electricity imports from the continent, alongside the EU electricity demand outlook across member states, reduced the price impact in the UK, and meant that some of the cost was paid through a slight increase in continental electricity prices (mainly in France and the Netherlands).

Project lead Dr. Giorgio Castagneto Gissey (Bartlett Institute for Sustainable Resources, UCL) said: "Should EU countries also adopt a high carbon tax we would likely see huge carbon emission reductions throughout the Continent, as we've seen in Great Britain over the last few years."

Lead author, Professor David Newbery (University of Cambridge), said: "The Carbon Price Support provides a clear signal to our neighbours of its efficacy at reducing CO2 emissions."

The Carbon Price Support was introduced in England, Scotland and Wales at a rate of £4.94 per tonne of carbon dioxide-equivalent and is now capped at £18 until 2021.The tax is one part of the Total Carbon Price, which also includes the price of EU Emissions Trading System permits and reflects global CO2 emissions trends shaping policy design.

Report co-author Bowei Guo (University of Cambridge) said: "The Carbon Price Support has been instrumental in driving coal off the grid, but we show how it also creates distortions to cross-border trade, making a case for EU-wide adoption."

Professor Michael Grubb (Bartlett Institute for Sustainable Resources, UCL) said: "Great Britain's electricity transition is a monumental achievement of global interest, and has also demonstrated the power of an effective carbon price in lowering dependence on electricity generated from coal."

The overall report on electricity trading also covers the value of EU interconnectors to Great Britain, measures the efficiency of cross-border electricity trading and considers the value of post-Brexit decoupling from EU electricity markets, setting these findings against the global energy transition underway.

Published today, the report annex focusing on the Carbon Price Support was produced by UCL to focus on the impact of the tax on British energy bills, with comparisons to Canadian climate policy debates informing grid impacts.

 

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Jordan approves MOU to implement Jordan-Saudi Arabia electricity linkage

Jordan-Saudi Electricity Linkage Project connects NEPCO and Saudi National Electricity Company to launch feasibility studies, advancing cross-border grid interconnection, Arab electricity linkage goals, and enhancing power reliability, stability, and energy security in both countries.

 

Key Points

A bilateral grid interconnection by NEPCO and Saudi Electricity Co. to improve reliability and stability.

✅ Enables joint technical and financial feasibility studies

✅ Improves cross-border grid reliability and stability

✅ Part of Arab electricity linkage; supports energy security

 

The Jordanian Cabinet on has approved the memorandum of understanding to implement the electricity linkage project between Jordan and Saudi Arabia, echoing regional steps such as Lebanon's electricity sector reform to modernize power governance.

The memo will be signed between the National Electric Power Company(NEPCO) and the Saudi National Electricity Company, mirroring cross-border efforts like CEA-Mexico electricity cooperation to strengthen regional interconnections.

The agreement will enable the two sides to initiate technical and financial feasibility studies for the project, which aims to enhance the stability and reliability of electricity networks in both countries, aligning with measures to secure power such as Ireland's electricity supply plan pursued internationally.

The initial feasibility studies, which came as part of the comprehensive Arab electricity linkage issued by the Arab League in 2014, had shown the possibility of implementing the Jordanian-Saudi linkage, as electricity markets evolve in places like Alberta electricity market changes toward new designs.

Regional developments, including a Lebanon electricity goodwill gesture that sowed discord, underscore the complexities of power-sector reform.

Also on Wednesday, the Government approved the third amendment to the grant agreement provided by the EU for a programme of financial inclusion through improving the governance and the spread of micro-financing in Jordan.

Jordan and the EU signed the grant agreement on December 14, 2014 to support the general budget.

The Cabinet also approved the recommendations of the ministerial team tasked with overseeing the annual and financial plans of public credit funds in the Kingdom.

The recommendations included establishing a guidance office to introduce the governmental lending programmes and windows within Iradah centres affiliated with the Planning and International Cooperation Ministry.

The Council of Ministers decided to oblige the government institutions to execute all of their correspondences to the Jordan Customs Department (JCD) electronically.

The decision also includes cancelling the provision of 55 JCD services by conventional paper works and to be provided only online.

The council also approved the outcomes of the study to restructure the governmental body.

The outcomes proposed activating the Higher Health Council, cancelling the independence of the Vocational and Technical Employment Training Fund transferring its functions to the Employment and Development Fund, and activating the National ICT Centre.

The government has cancelled the National Fund to Support Sports and the Scientific Support Fund.

 

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Lebanon Cabinet approves watershed electricity sector reform

Lebanon Electricity Sector Reform aims to overhaul tariffs, modernize the grid, cut fuel oil subsidies, unlock donor loans, and deliver 24-hour power, restructuring EDL governance, boosting generation capacity, and reducing the budget deficit.

 

Key Points

A plan to restructure EDL, adjust tariffs, add capacity, and cut subsidies to deliver 24-hour power and reduce deficits.

✅ New tariffs and phased cost recovery

✅ Added generation capacity and grid modernization

✅ Governance reform of EDL and loss reduction

 

Lebanon’s Cabinet has approved a much-anticipated plan to restructure the country’s dysfunctional electricity sector, as Beirut power challenges continue to underscore chronic gaps, which hasn’t been developed since the time of the country’s civil war, decades ago.

The Lebanese depend on a network of private generator providers and decrepit power plants that rely on expensive fuel oil, while Israeli power supply competition seeks to lower consumer prices in a nearby market. Subsidies to the state electricity company cost nearly $2 billion a year.

For years, reform of the electricity sector, echoed by EU electricity market revamp, has been a major demand of Lebanon’s population of over 5 million. But frequent political stalemates, corruption and infighting among politicians, entrenched since the civil war that began in 1975, often derailed reforms.

International donors have called for reforms, including in the electricity sector, to unlock $11 billion in soft loans and grants pledged last year, as regional initiatives like the Jordan-Saudi electricity linkage move ahead to strengthen interconnections. Prime Minister Saad Hariri said Monday that the new plan will eventually provide 24-hour electricity.

Energy Minister Nada Boustani said that if there were no obstacles, residents could start feeling the difference next year, as an electricity market overhaul advances alongside the plan.

The plan, which is expected to get parliament approval, will reform the state electricity company, introduce new pricing policies, with international examples like France's electricity pricing scheme, and boost power production.

“This plan will also reduce the budget deficit,” Hariri told reporters. “This is positive and all international ratings companies will see … that Lebanon is taking real steps to reform in this sector.”

Lebanon’s soaring debt prompted rating agencies to downgrade the country’s credit ratings in January over concerns the government may not be able to pay its debts. Unemployment is believed to be at 36 per cent and more than 1 million Syrian refugees have overwhelmed the already aging infrastructure, while policy debates like Alberta electricity market changes illustrate different approaches to balancing cost and reliability.

Boustani told the Al-Manar TV that the electricity sector should be spared political bickering and populist approaches.

 

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Expanding EV Charging Infrastructure in Calgary's Apartments and Condos

Calgary EV Charging for Apartments and Condos streamlines permitting for multi-unit dwellings, guiding condo boards and property managers to install EV charging stations, expand infrastructure, and advance sustainability with cleaner air and lower emissions.

 

Key Points

A Calgary program simplifying permits and guidance to add EV charging stations in multi-unit residential buildings.

✅ Streamlined permitting for condo boards and property managers

✅ Technical assistance to install EV charging stations

✅ Boosts property value and reduces emissions citywide

 

As the demand for electric vehicles (EVs) continues to rise, and as national EV targets gain traction, Calgary is taking significant strides to enhance its charging infrastructure, particularly in apartment and condominium complexes. A recent initiative has been introduced to facilitate the installation of EV charging stations in these residential buildings, addressing a critical barrier for potential EV owners living in multi-unit dwellings.

The Growing EV Market

Electric vehicles are no longer a niche market; they have become a mainstream option for many consumers. As of late 2023, EV sales have surged, with projections indicating that the trend will only continue. However, a significant challenge remains for those who live in apartments and condos, where high-rise charging can be a mixed experience and the lack of accessible charging stations persists. Unlike homeowners with garages, residents of multi-unit dwellings often rely on public charging infrastructure, which can be inconvenient and limiting.

The New Initiative

In response to this growing concern, the City of Calgary has launched a new initiative aimed at easing the process of installing EV chargers in apartment and condo buildings. This program is designed to streamline the permitting process, reduce red tape, and provide clear guidelines for property managers and condo boards, similar to strata installation rules adopted in other jurisdictions to ease installations.

The initiative includes various measures, such as providing technical assistance and resources to building owners and managers. By simplifying the installation process, the city hopes to encourage more residential complexes to adopt EV charging stations. The initiative also emphasizes practical support, such as providing technical assistance, including condo retrofit guidance, and resources to building owners and managers. This is a significant step towards creating an eco-friendly urban environment and meeting the growing demand for sustainable transportation options.

Benefits of the Initiative

The benefits of this initiative are manifold. Firstly, it supports Calgary's broader climate goals by promoting electric vehicle adoption. As more residents gain access to charging stations, the city can expect a corresponding reduction in greenhouse gas emissions, contributing to cleaner air and a healthier urban environment.

Additionally, providing charging infrastructure can enhance property values. Buildings equipped with EV chargers become more attractive to potential tenants and buyers who prioritize sustainability. As the market for electric vehicles expands, properties that offer charging facilities are likely to see increased demand, making them a sound investment for landlords and developers.

Overcoming Challenges

While this initiative marks a positive step forward, there are still challenges to address. Property managers and condo boards may face initial resistance from residents who are uncertain about the costs associated with installing and maintaining EV chargers, though rebates for home and workplace charging can offset upfront expenses and ease adoption. Clear communication about the long-term benefits, including potential energy savings and the value of sustainable living, will be essential in overcoming these hurdles.

Furthermore, the city will need to ensure that the installation of EV chargers is done in a way that is equitable and inclusive. This means considering the needs of all residents, including those who may not own an electric vehicle but would benefit from a greener community.

Looking Ahead

As Calgary moves forward with this initiative, it sets a precedent for other cities, as seen in Vancouver's EV-ready policy, facing similar challenges in promoting electric vehicle adoption. By prioritizing charging infrastructure in multi-unit residential buildings, Calgary is taking important steps towards a more sustainable future.

In conclusion, the push for EV charging stations in apartments and condos is a critical move for Calgary. It reflects a growing recognition of the role that urban planning and infrastructure play in supporting the transition to electric vehicles, which complements corridor networks like the BC Electric Highway for intercity travel. With the right support and resources, Calgary can pave the way for a greener, more sustainable urban landscape that benefits all its residents. As the city embraces this change, it will undoubtedly contribute to a broader shift towards sustainable living, ultimately helping to combat climate change and improve the quality of life for all Calgarians.

 

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Reconciliation and a Clean Electricity Standard

Clean Electricity Standard (CES) sets utility emissions targets, uses tradable credits, and advances decarbonization via technology-agnostic benchmarks, carbon capture, renewable portfolio standards, upstream methane accounting, and cap-and-trade alternatives in reconciliation policy.

 

Key Points

CES sets utility emissions targets using tradable credits and benchmarks to drive power-sector decarbonization.

✅ Annual clean energy targets phased to 2050

✅ Tradable credits for compliance across utilities

✅ Includes upstream methane and lifecycle emissions

 

The Biden Administration and Democratic members of Congress have supported including a clean electricity standard (CES) in the upcoming reconciliation bill. A CES is an alternative to pricing carbon dioxide through a tax or cap-and-trade program and focuses on reducing greenhouse gas emissions produced during electricity generation by establishing targets, while early assessments show mixed results so far. In principle, it is a technology-agnostic approach. In practice, however, it pushes particular technologies out of the market.

The details of the CES are still being developed, but recent legislation may provide insight into how the CES could operate. In May, Senator Tina Smith and Representative Ben Ray Luján introduced the Clean Energy Standard Act of 2019 (CESA), while Minnesota's 100% carbon-free mandate offers a state-level parallel, and in January 2020, the House Energy and Commerce Committee released a discussion draft of the Climate Leadership and Environmental Action for our Nation’s (CLEAN) Future Act. Both bills increase the clean energy target annually until 2050 in order to phase out emissions. Both bills also create a credit system where clean sources of electricity as determined by a benchmark, carbon dioxide emitted per kilowatt-hour, receive credits. These credits may be transferred, sold, and auctioned so utilities that fail to meet targets can procure credits from others, as large energy customers push to accelerate clean energy globally.

The bills’ benchmarks vary, and while the CLEAN Future Act allows natural gas-fired generators to receive partial credits, CESA does not. Under both bills, these generators would be expected to install carbon capture technology to continue meeting increasing targets for clean electricity generation. Both bills go beyond considering the emissions resulting from generation and include upstream emissions for natural gas-fired generators. Natural gas, a greenhouse gas, that is leaked upstream of a generator during transportation is to be included among its emissions. The CLEAN Future Act also calls for newly constructed hydropower generators to account for the emissions associated with the facility’s construction despite producing clean electricity. These additional provisions demonstrate not only the CES’s inability to fully address the issue of emissions but also the slippery slope of expanding the program to include other markets, echoing cost and reliability concerns as California exports its energy policies across the West.

A majority of states have adopted clean energy, electricity, or renewable portfolio standards, with some considering revamping electricity rates to clean the grid, leaving legislators with plenty of examples to consider. As they weigh their options, legislators should consider if they are effectively addressing the problem at hand, economy-wide emissions reductions, and at what cost, drawing on examples like New Mexico's 100% clean electricity bill to inform trade-offs.

 

 

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Electricity Shut-Offs in a Pandemic: How COVID-19 Leads to Energy Insecurity, Burdensome Bills

COVID-19 Energy Burden drives higher electricity bills as income falls, intensifying energy poverty, utility shut-offs, and affordability risks for low-income households; policy moratoriums, bill relief, and efficiency upgrades are vital responses.

 

Key Points

The COVID-19 energy burden is the rising share of income spent on energy as bills increase and earnings decline.

✅ Rising home demand and lost wages increase energy cost share.

✅ Mandated shut-off moratoriums and reconnections protect health.

✅ Fund assistance, efficiency, and solar for LMI households.

 

I have asthma. It’s a private piece of medical information that I don’t normally share with people, but it makes the potential risks associated with exposure to the coronavirus all the more dangerous for me. But I’m not alone. 107 million people in the U.S. have pre-existing medical conditions like asthma and heart disease; the same pre-existing conditions that elevate their risk of facing a life-threatening situation were we to contract COVID-19. There are, however, tens of millions more house-bound Americans with a condition that is likely to be exacerbated by COVID-19: The energy burden.

The energy burden is a different kind of pre-existing condition:
In the last four weeks, 22 million people filed for unemployment. Millions of people will not have steady income (or the healthcare tied to it) to pay rent and utility bills for the foreseeable future which means that thousands, possibly millions of home-bound Americans will struggle to pay for energy.

Your energy burden is the amount of your monthly income that goes to paying for energy, like your monthly electric bill. So, when household energy use increases or income decreases, your energy burden rises. The energy burden is not a symptom of the pandemic and the economic downturn; it is more like a pre-existing condition for many Americans.

Before the coronavirus outbreak, I shared a few maps that showed how expensive electricity is for some. The energy burden in most pronounced in places already struggling economically, like in Appalachia, where residents in some counties must put more than 30 percent of their income toward their electric bills, and in the Midwest where states such as Michigan have some families spending more than 1/5 of their income on energy bills. The tragic facts are that US families living below the poverty line are far more likely to also be suffering from their energy burden.

But like other pre-existing conditions, the impacts of the coronavirus pandemic are exacerbating the underlying problems afflicting communities across the country.

Critical responses to minimize the spread of COVID-19 are social distancing, washing hands frequently, covering our faces with masks and staying at home. More time at home for most will drive up energy bills, and not by a little. Estimates on how much electricity demand during COVID-19 will increase vary but I’ve seen estimates as high as a 20% increase on average. For some families that’s a bag of groceries or a refill on prescription medication.

What happens when the power gets turned off?
Under normal conditions, if you cannot pay your electric bill your electricity can get turned off. This can have devastating consequences. Most states have protections for health and medical reasons and some states have protections during extreme heat or cold weather. But enforcement of those protections can vary by utility service area and place unnecessary burdens on the customer.

UCS
Only Florida has no protections of any kind against utility shut-offs when health or medical reasons would merit protection against it. However, when it comes to protection against extreme heat, only a few states have mandatory protections based on temperature thresholds.

The NAACP has also pointed out that utilities have unceremoniously disconnected the power of millions of people, disproportionally African-American and Latinx households.

April tends to be a mild month for most of the country, but the South already had its first heat wave at the end of March. If this pandemic lasts into the summer, utility disconnects could become deadly, and efforts to prevent summer power outages will be even more critical to public health. In the summer, during extreme summer heat families can’t turn off the A/C and go to the movies if we are following public health measures and sheltering in place. Lots of families that don’t have or can’t afford to run A/C would otherwise gather at local community pools, beaches, or in cooling centers, but with parks, pools and community groups closed to prevent the virus’s spread, what will happen to these families in July or August?

But we won’t have to wait till the summer to see how families will be hard hit by falling behind on bills and losing power. Here are a few ways electricity disconnection policies cause people harm during the pandemic:

Loss of electricity during the COVID-19 pandemic means families will lose their ability to refrigerate essential food supplies.
Child abuse guidance discusses how unsanitary household conditions are a contributing factor to child protective services involvement. Unsanitary household conditions can include, for example, rotting food (which might happen if electricity is cut off).

HUD’s handbook on federally subsidized housing includes a chapter on termination, which says that lease agreements can be terminated for repeated minor infractions including failing to pay utilities.
Airway machines used to treat respiratory ailments—pre-existing conditions in this pandemic—will not work. Our elderly neighbors in particular might rely on medicine that requires refrigeration or medical equipment that requires electricity. They too have fallen victim to utility shut-offs even during the pandemic.

Empowering solutions are available today

Decisionmakers seeking solutions can look to implement utility shut off moratoriums as a good start. Good news is that many utilities have voluntarily taken action to that effect, and New Jersey and New York have suspended shut-offs, one of the best trackers on who is taking what action has been assembled by Energy Policy Institute.

But voluntary actions do not always provide comprehensive protection, and they certainly have not been universally adopted across the country. Some utilities are waiving fees as relief measures, and some moratoriums only apply to customers directly affected by COVID-19, which will place additional onerous red tape on households that are stricken and perhaps unable to access testing. Others might only be an extension of standard medical shut off protections. Moratoriums put in place by voluntary action can also be revoked or lifted by voluntary action, which does not provide any sense of certainty to people struggling to make ends meet.

This is why the US needs mandatory moratoriums on all utility disconnections. These normally would be rendered at the state level, either by a regulatory commission, legislative act, or even an emergency executive order. But the inconsistent leadership among states in response to the COVID-19 crisis suggests that Congressional action is needed to ensure that all vulnerable utility customers are protected. That’s exactly what a coalition of organizations, including UCS, is calling for in future federal aid legislation. UCS has called for a national moratorium on utility shut-offs.

And let’s be clear, preventing new shut-offs isn’t enough. Cutting power off at residence during a pandemic is not good public policy. People who are without electricity should have it restored so residents can safely shelter in place and help flatten the curve. So far, only Colorado and Wisconsin’s leadership has taken this option.

Addressing the root causes of energy poverty
Preventing shut-offs is a good first step, but the increased bill charges will nevertheless place greater economic pressure on an incalculable number of families. Addressing the root of the problem (energy affordability) must be prioritized when we begin to recover from the health and economic ramifications of the COVID-19 pandemic.

One way policymakers can do that is to forgive outstanding balances on utility bills, perhaps with an eligibility cap based on income. Additional funds could be made available to those who are still struggling to pay their bills via capping bills, waiving late payment fees, automating payment plans or other protective measures that rightfully place consumers (particularly vulnerable consumers) at the center of any energy-related COVID-19 response. Low-and-moderate-income energy efficiency and solar programs should be funded as much as practically possible.

New infrastructure, particularly new construction that is slated for public housing, subsidized housing, or housing specifically marketed for low- and moderate-income families, should include smart thermostats, better insulation, and energy-efficient appliances.

Implementing these solutions may seem daunting, let us not forget that one of the best ways to ease people’s energy burden is to keep a utility’s overall energy costs low. That means state utility commissions must be vigilant in utility rate cases and fuel recovery cost dockets to protect people facing unfathomable economic pressures. Unscrupulous utilities have been known to hide unnecessary costs in our energy bills. Commissions and their staff are overwhelmed at this time, but they should be applying extra scrutiny during proceedings when utilities are recovering costs associated with delivering energy.

What might a utility try to get past the commission?
Well, residential demand is up, so for many people, bills will increase. However, wholesale electricity rates are low right now, in some cases at all-time lows. Why? Because industrial and commercial demand reductions (from social distancing at home) have more than offset residential demand increases. Overall US electricity demand is flat or declining, and supply/demand economics predicts that when demand decreases, prices decrease.

At the same time, natural gas prices have set record lows each month of this year and that’s a trend that is expected to hold true for a while.

Low demand plus low gas prices mean wholesale market prices are incredibly low. Utilities should be taking advantage of low market prices to ensure that they deliver electricity to customers at as low a cost as possible. Utilities must also NOT over-run coal plants uneconomically or lean on aging capacity despite disruptions in coal and nuclear that can invite brownouts because that will not only needlessly cost customers more, but it will also increase air pollution which will exacerbate respiratory issues and susceptibility to COVID-19, according to a recent study published by Harvard.

 

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