MCD to generate power from garbage

Hydro One Account Customization lets Ontario customers pick billing due dates, enable balanced billing, get early high usage notifications, monitor electricity consumption, and receive outage alerts, offering flexibility during COVID-19.

Key Points

A flexible toolkit to set due dates, balance bills, get usage alerts, and track electricity.

✅ Pick your billing due date for better cash flow

✅ Balanced billing smooths seasonal usage spikes

✅ Early high usage and outage alerts via text or email

Hydro One announced it is providing its customers with the flexibility to customize their account. Customers can choose their own billing due date, flatten usage spikes from temperature fluctuations through balanced billing and the Ultra-Low Overnight Price Plan, and monitor their electricity consumption by signing up for early high usage notifications.

Research shows that Ontario electricity customers want more choice and flexibility (CNW Group/Hydro One Inc.)
"Being in-tune with our customers' needs is more important than ever. As we continue to navigate the COVID-19 pandemic, customers tell us that choice and flexibility, alongside electricity relief, will help them during this difficult time," said Jason Fitzsimmons, Chief Corporate Affairs and Customer Care Officer, Hydro One. "As a customer-driven organization, we have an important responsibility to support customers with relief, flexibility and choice."

According to recent research conducted by Angus Reid, 78 per cent of Ontario electricity customers said balanced billing would help them better manage their finances, even as peak hydro rates remained unchanged for many self-isolating customers. Balanced billing flattens out the spikes in electricity usage that commonly occurs in the summer due to air conditioning use and in the winter due to heating.

The research also found that 72 per cent of customers would like to pick their own due date to better manage their finances. This feature is now included in Hydro One's new customization bundle, which will be shared with customers through an awareness campaign. Other customization tools include alerts when electricity usage falls outside of the customer's normal pattern, the ability to report outages online and the ability to receive text messages or emails when outages occur. Customers can visit www.HydroOne.com/Choice to learn more.

"Customers can pick and choose the tools that work best for them. We are now able to offer a suite of features built for any lifestyle as our employees support Ontario's COVID-19 response across the province," said Fitzsimmons.

In addition to these customization options, Hydro One has also developed a number of customer support measures during COVID-19, including a Pandemic Relief Fund to offer payment flexibility and financial assistance to customers. The company is also extending its ban on electricity disconnections to ensure that no customer is disconnected at a time when support is needed most. More information about Hydro One's Pandemic Relief Program can be found at www.HydroOne.com/PandemicRelief. Customers can continue to contact Hydro One to determine individual payment plans and determine financial assistance programs available to meet their needs, especially as disconnection pressures can arise for some households.

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ERCOT Winter Capacity RFP seeks up to 3,000 MW through generation and demand response to bolster Texas grid reliability during peak load, leveraging Reliability Must-Run, incentive factors, and EEA risk mitigation for the 2023-24 season.

Key Points

An ERCOT initiative to procure 3,000 MW of generation and demand response to reduce EEA risk and improve reliability.

✅ Targets 3,000 MW from generation and demand response

✅ Uses RMR-style contracts with flexible incentive factors

✅ Aims to lower EEA probability below 10% this winter

The Electric Reliability Council of Texas (ERCOT) issued a request for proposals to stakeholders to procure up to 3,000 MW of generation or demand response capacity to meet load and reserve requirements during the winter 2023-24 peak load season (Dec. 1, 2023, through Feb. 29, 2024), amid ongoing Texas power grid challenges across the region.

ERCOT cited “several factors, including significant peak load growth since last winter, recent and proposed retirements of dispatchable Generation Resources, and recent extreme winter weather events, including Winter Storm Elliott in December 2022, Winter Storm Uri in February 2021, and the 2018 and 2011 winter storms, each of which resulted in abnormally high demand during winter weather.” It now seeks additional capacity under its “authority to prevent an anticipated Emergency Condition,” reflecting nationwide blackout risks identified by grid experts.

In its notice regarding the RFP, ERCOT identified a number of mothballed and recently decommissioned generation resources that may be eligible to offer capacity under the RFP. It further stated that offers must comport with the format of its “Reliability Must-Run” agreement but could include a proposed “Incentive Factor” that reflects the revenues the unit owners determine would be necessary to bring the unit back to operation. It added that the Incentive Factor is not necessarily limited to 10%. Providers of eligible demand response can submit offers based on similar principles that are not necessarily constrained by cost. The notice identifies potential acceptable sources of demand response, describes certain parameters for the kinds of demand response that are permitted to respond to the RFP, and outlines the time periods during which ERCOT must be able to deploy the demand response resources to improve electricity reliability across the system.

To meet the Dec. 1, 2023, service start date, ERCOT developed an aggressive timeline to solicit and evaluate proposals through the RFP. Responses to the RFP are due Nov. 6, 2023. ERCOT’s schedule provides that it will notify market participants that obtain awards on Nov. 23, 2023. Expect contracts to be executed by Nov. 30, 2023.

Unlike Regional Transmission Organizations in the Northeastern United States, ERCOT does not have a capacity market. Instead, ERCOT relies on a high price cap of $5,000 per MWh for its energy market (decreased from the $9,000 per MWh cap in effect during Winter Storm Uri) and an Operating Reserve Demand Curve adder that pays additional funds to generators supplying power and ancillary services, an area recently scrutinized for improper payments when supply conditions are tight. In the wake of Winter Storm Uri, some calls were made to have ERCOT adopt a capacity market for reliability reasons, and a number of legal battles continue to play out in the wake of Winter Storm Uri. (See recent McGuireWoods legal alert “Winter Storm Uri Power Dispute Reaches the Supreme Court of Texas.”) Though a capacity market was not adopted, the Texas Legislature approved a $7.2 billion loan program, widely described as an electricity market bailout for generators, to build up to 10,000 MW of dispatchable generation. The legislature also approved a version of the Public Utility Commission of Texas’ proposal to establish a “Performance Credit Mechanism,” but with a cost cap of $1 billion.

The loss of life and economic impacts of Winter Storm Uri in 2021, along with the energy crunches and calls for conservation this past summer, are driving changes to ERCOT’s “energy-only” market, including electricity market reforms under consideration. Texas policymakers are providing multiple financial incentives to promote investment in dispatchable on-demand generation, and voters will consider funding to modernize generation measures this year to make the Texas grid more reliable and able to deal with power demand from a growing economy and increased demand for electricity driven by weather. In the meantime, ERCOT’s plan to procure 3,000 MW through this RFP process is a stopgap measure intended to bolster reliability for the upcoming winter season and lower the probability of load shed in the event of severe winter weather.

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Bruce Power PPE Donation supports Canada COVID-19 response, supplying 1.2 million masks, gloves, and gowns to Ontario hospitals, long-term care, and first responders, plus face shields, hand sanitizer, and funding for testing and food banks.

Key Points

Bruce Power PPE Donation is a broad COVID-19 aid delivering PPE, supplies, and funding across Ontario.

✅ 1.2 million masks, gloves, gowns to Ontario care providers

✅ 3-D printed face shields and 50,000 bottles of sanitizer

✅ Funding testing research and supporting regional food banks

The world’s largest nuclear plant, which recently marked an operating record during sustained operations, just made Canada’s largest donation of personal protective equipment (PPE).

Bruce Power is doubling its initial donation of 600,000 masks, gloves and gowns for front-line health workers, to 1.2 million pieces of PPE.

The company, which operates the Bruce Nuclear station near Kincardine, Ont., where a major reactor refurbishment is underway, plans to have the equipment in the hands of hospitals, long-term care homes and first responders by the end of April.

It’s not the only thing Bruce Power is doing to help out Ontario during the COVID-19 pandemic:

 Bruce Power has donated $300,000 to 37 food banks in Midwestern Ontario, highlighting the broader economic benefits of Canadian nuclear projects for communities.

•  They’re also working with NPX in Kincardine to make face shields with 3-D printers, leveraging local manufacturing contracts to accelerate production.
•  They’re teaming up with the Power Worker’s Union to fund testing research in Toronto.
•  They’re working with Three Sheets Brewing and Junction 56 Distillery to distribute 50,000 bottles of hand sanitizer to those that need it.

And that’s all on top of what they’ve been doing for years, producing Cobalt-60, a medical isotope to sterilize medical equipment, and, after a recent output upgrade at the site, producing about 30 per cent of Ontario’s electricity as the province advances the Pickering B refurbishment to bolster grid reliability.

Bruce Power has over 4,000 employees working out of their nuclear plant, on the shores of Lake Huron, as it explores the proposed Bruce C project for potential future capacity.

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Hydro One Leadership Shakeup unsettles investors as Ontario government ousts CEO and board, pressuring shares; analysts cite political and regulatory risk, stock volatility, trimmed price targets, and dividend stability at the regulated utility.

Key Points

An abrupt CEO exit and board overhaul at Hydro One, driving share declines and raising political and regulatory risk.

✅ Shares fall as CEO retires and board resigns under provincial pressure.

✅ Analysts cut price targets; warn of political, regulatory risks.

✅ New board to pick CEO; province consults on compensation.

Hydro One Ltd. shares slid Thursday with some analysts sounding warnings of greater uncertainty after the new Ontario government announced the retirement of the electrical utility's chief executive and the replacement of its board of directors.

 After sagging by almost eight per cent in early trading on the Toronto Stock Exchange, following news that Q2 profit plunged 23% amid weaker electricity revenue, shares of the company were later down four per cent, or 81 cents, at $19.36 as of 11:42 a.m. ET.

On Wednesday, after stock markets had closed for the day, Ontario Premier Doug Ford announced the immediate retirement of Hydro One CEO Mayo Schmidt. He leaves with a $400,000 payout in lieu of post-retirement benefits and allowances, Hydro One said.

Doug Ford's government forces out Hydro One '$6-million man'

During the recent provincial election campaign, Ford vowed to fire Schmidt, who earned $6.2 million last year and whose salary wouldn't be reduced despite calls to cut electricity costs.

Paul Dobson, Hydro One's chief financial officer, will serve as acting CEO until a new top executive is selected.

Ford also said the entire board of directors of the utility would resign. Hydro One said a new board — four members of which will be nominated by the province — will select the company's next CEO, and the province will be consulted on the next leader's compensation.

A new board is expected to be formed by mid-August.

The provincial government is the largest single investor in Hydro One, holding a 47 per cent stake. The company was partly privatized by the former Liberal government in 2015, while the NDP has proposed to make hydro public again in Ontario to change course.

Doug Ford promises to keep Pickering nuclear plant open until 2024

In response to the government's move to supplant the utility's board and CEO, some analysts cautioned investors about too many unknowns in the near-term outlook, citing raised political or regulatory risks.

Analyst Jeremy Rosenfield of iA Securities cut his rating on Hydro One shares to hold from buy, and reduced his 12-month price target for the stock to $24 from $26.

Rosenfield said the stock is still a defensive investment supported by stable earnings and cash flows, good earnings growth and healthy dividend.

However, he said in a research note that "the heightened potential for further political interference in the province's electricity market and regulated utility framework represent key risk factors that are likely to outweigh Hydro One's fundamentals over the near term."

Potential challenge to find new CEO

Laurentian Bank Securities analyst Mona Nazir said in a research note that the magnitude of change all at once was "surprising but not shocking."

She said the agreement that will see Hydro One consult with the provincial government on matters involving executive pay could have an impact on the hiring of a new CEO for the utility.

"Given the government's open and public criticism of the company and a potential ceiling on compensation, it may be challenging to attract top talent to the position," she wrote.

Laurentian cut its rating on the Hydro One to hold and reduced its price target to $21 from $24.

Analysts at CIBC World Markets said investors face an uncertain future, noting parallels with debates at Manitoba Hydro over political direction.

"In particular, we are are concerned about the government meddling in with [power] rates," wrote Robert Catellier and Archit Kshetrapal in a research note, adding they believe the new provincial government is aiming for a 12 per cent reduction in customers' power bills.

CIBC reduced its price target on Hydro One's shares to $20.50 from its previous target of $24.

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Ontario Electricity Export Retaliation signals tariff-fueled trade tensions as Doug Ford leverages cross-border energy flows to the U.S., risking grid reliability, higher power prices, and escalating a Canada-U.S. trade war over protectionist policies.

Key Points

A policy threat by Ontario to cut power exports to U.S. states in response to tariffs, leveraging grid dependence.

✅ Powers about 1.5M U.S. homes in NY, MI, and MN

✅ Risks price spikes, shortages, and legal challenges

✅ Part of Canada's CAD 30B retaliatory tariff package

In a move that underscores the escalating trade tensions between Canada and the United States, Ontario Premier Doug Ford has threatened to halt electricity exports to U.S. states in retaliation for the Trump administration's recent tariffs. This bold stance highlights Ontario's significant role in powering regions across the U.S. and serves as a warning about the potential consequences of trade disputes.

The Leverage of Ontario's Electricity

Ontario's electricity exports are not merely supplementary; they are essential to the energy supply of several U.S. states. The province provides power to approximately 1.5 million homes in states such as New York, Michigan, and Minnesota, even as it eyes energy independence through domestic initiatives. This substantial export positions Ontario as a key player in the regional energy market, giving the province considerable leverage in trade negotiations.

Premier Ford's Ultimatum

Responding to the Trump administration's imposition of a 25% tariff on Canadian imports, Premier Ford, following a Washington meeting, declared, "If they want to play tough, we can play tough." He further emphasized his readiness to act, stating, "I’ll cut them off with a smile on my face." This rhetoric underscores Ontario's willingness to use its energy exports as a bargaining chip in the trade dispute.

Economic and Political Ramifications

The potential cessation of electricity exports to the U.S. would have profound economic implications. U.S. states that rely on Ontario's power could face energy shortages, leading to increased prices, particularly New York energy prices, and potential disruptions. Such an action would not only strain the energy supply but also escalate political tensions, potentially affecting other areas of bilateral cooperation.

Canada's Retaliatory Measures

Ontario's threat is part of a broader Canadian strategy to counteract U.S. tariffs. Prime Minister Justin Trudeau has announced retaliatory tariffs on U.S. goods worth approximately CAD 30 billion, targeting products such as food, textiles, and furniture. These measures aim to pressure the U.S. administration into reconsidering its trade policies.

The Risk of Escalation

While leveraging energy exports provides Ontario with a potent tool, it also carries significant risks, as experts warn against cutting Quebec's energy exports amid tariff tensions. Such actions could lead to a full-blown trade war, with both countries imposing tariffs and export restrictions. The resulting economic fallout could affect various sectors, from manufacturing to agriculture, and lead to job losses and increased consumer prices.

International Trade Relations

The dispute also raises questions about the stability of international trade agreements and the rules governing cross-border energy transactions. Both Canada and the U.S. are signatories to various trade agreements that promote the free flow of goods and services, including energy. Actions like export bans could violate these agreements and lead to legal challenges.

Public Sentiment and Nationalism

The trade tensions have sparked a surge in Canadian nationalism, with public sentiment largely supporting tariffs on energy and minerals as retaliatory measures. This sentiment is evident in actions such as boycotting American products and expressing discontent at public events. However, while national pride is a unifying force, it does not mitigate the potential economic hardships that may result from prolonged trade disputes.

The Path Forward

Navigating this complex situation requires careful diplomacy and negotiation. Both Canada and the U.S. must weigh the benefits of trade against the potential costs of escalating tensions. Engaging in dialogue, seeking compromise, and adhering to international trade laws are essential steps to prevent further deterioration of relations and to ensure the stability of both economies.

Ontario's threat to cut off electricity exports to the U.S. serves as a stark reminder of the interconnectedness of global trade and the potential consequences of protectionist policies. While such measures can be effective in drawing attention to grievances, they also risk significant economic and political fallout. As the situation develops, it will be crucial to monitor the responses of both governments and the impact on industries and consumers alike, including growing support for Canadian energy projects among stakeholders.

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EIA U.S. Power Outlook 2023-2024 forecasts lower electricity demand, softer wholesale prices, and faster renewable growth from solar and wind, with steady natural gas, reduced coal generation, slight nuclear gains, and ERCOT market moderation.

Key Points

An EIA forecast of a 2023 demand dip, 2024 rebound, lower prices, and a higher renewable share in the U.S. power mix.

✅ Demand dips to 4,000 billion kWh in 2023; rebounds in 2024.

✅ ERCOT on-peak prices average about $35/MWh versus $80/MWh in 2022.

✅ Renewables grow to 24% share; coal falls to 17%; nuclear edges up.

U.S. power consumption is expected to slip about 1% in 2023 from the previous year as milder weather slows usage from the record high hit in 2022, consistent with recent U.S. consumption trends observed over the past several years, the U.S. Energy Information Administration (EIA) said in its Short-Term Energy Outlook (STEO).

EIA projected that electricity demand is on track to slide to 4,000 billion kilowatt-hours (kWh) in 2023 from a historic high of 4,048 billion kilowatt-hours (kWh) in 2022, reflecting patterns seen during COVID-19 demand shifts in prior years, before rising to 4,062 billion kWh in 2024 as economic growth ramps up.

Less demand coupled with more electricity generation from cheap renewable power sources and lower natural gas prices is forecast to slash wholesale power prices this year, the EIA said.

The on-peak wholesale price at the North hub in Texas’ ERCOT power market is expected to average about $35 per megawatt-hour (MWh) in 2023 compared with an average of nearly $80/MWh in 2022 after the 2022 price surge in power markets.

As capacity for renewables like solar and wind ramp up and as natural gas prices ease amid the broader energy crisis pressures, the EIA said it expects coal-fired power generation to be 17% less in the spring of 2023 than in the spring of 2022.

Coal will provide an average of 17% of total U.S. generation this year, down from 20% last year, as utilities shift investments toward electricity delivery and away from new power production, the EIA said.

The share of total generation supplied by natural gas is seen remaining at about the same this year at 39%. The nuclear share of generation is seen rising slightly to 20% this year from 19% in 2022. Generation from renewable energy sources grows the most in the forecast, increasing to 24% this year from a share of 22% last year, even as residential electricity bills rose in 2022 across the U.S.

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