Minnesota Power Reaches Five-Year Contract

Hydro One Pandemic Relief Fund offers COVID-19 financial assistance, payment flexibility, and Winter Relief to Ontario electricity customers facing hardship, with disconnection protection and customer support to help manage bills during the health crisis.

Key Points

COVID-19 aid offering bill credits, payment flexibility, and disconnection protection for electricity customers.

✅ Financial assistance and bill credits for hardship cases

✅ Flexible payment plans and extended Winter Relief

✅ No-disconnect policy and dedicated customer support hours

We are pleased to announce a Pandemic Relief Fund to assist customers affected by the novel coronavirus (COVID-19). As part of our commitment to customers, we will offer financial assistance as well as increased payment flexibility to customers experiencing hardship. The fund is designed to support customers impacted by these events and those that may experience further impacts.

In addition to this, we've also extended our Winter Relief program, aligning with our ban on disconnections policy so no customer experiencing any hardship has to worry about potential disconnection.

We recognize that this is a difficult time for everyone and we want our customers to know that we’re here to support them. We hope this fund and the added measures, such as extended off-peak rates that help provide our customers peace of mind so they can concentrate on what matters most — keeping their loved ones safe.

If you are concerned about paying your bill, are experiencing hardship or have been impacted by the pandemic, including electricity relief announced by the province, we want to help you. Call us to discuss the fund and see what options are available for you.

CUSTOMER CONTACT CENTRE HOURS
Call us at 1-888-664-9376

Monday to Friday from 7:30 a.m. to 8:00 p.m.

Saturdays from 9:00 a.m. to 3:00 p.m.

KEEPING ONTARIANS AND OUR ELECTRICITY SYSTEM SAFE
We recognize the critical role we play in powering communities across the province and our support for the Province of Ontario during COVID-19. This is a responsibility to employees, customers, businesses and the people of Ontario that we take very seriously.

Since the novel coronavirus (COVID-19) outbreak began, Hydro One’s Pandemic Team along with our leadership, have been actively monitoring the issues to ensure we can continue to deliver the service Ontarians depend on while keeping our employees, customers and the public safe, even as there has been no cut in peak hydro rates yet for self-isolating customers across Ontario. While the risk in Ontario remains low, we believe we can best protect our people and our operations by taking proactive measures.

As information continues to evolve, our leadership team along with the Pandemic Planning Team and our Emergency Operations Centre are committed to maintaining business continuity while minimizing risk to employees and communities.

Over the days and weeks to come, we will work with the sector and government, which is preparing to extend disconnect moratoriums across the province, to enhance safety protocols and champion the needs of electricity customers in Ontario.
 

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UK Market Stability Outlook remains febrile as the Bank of England, Treasury, and OBR forecasts shape fiscal policy, interest rates, gilt yields, inflation, energy bills, and pound sterling, with Oct. 31 guidance to reassure investors.

Key Points

A view of investor confidence as BOE policy, fiscal plans, and energy aid shape inflation and interest rates.

✅ Markets await Oct. 31 fiscal statement and OBR projections

✅ Energy support design drives inflation and disposable income

✅ Pound weakness adds imported inflation; rates seen up 75 bps

Bank of England Deputy Governor Dave Ramsden said financial markets are still unsettled about the outlook for the UK and that a Treasury statement due on Oct. 31 may provide some reassurance.

Speaking to the Treasury Committee in Parliament, Ramsden said officials in government and the central bank are dealing with huge economic shocks, notably the surge in energy prices that came with Russia’s attack on Ukraine. Investors are reassessing where interest rates and the fiscal stance are headed.

“Markets remain quite febrile,” Ramsden told members of Parliament in London on Monday. “Things have not settled down yet.”

He described the events following Prime Minister Liz Truss’s ill-fated fiscal statement on Sept. 23, which set out a series of tax cuts funded by borrowing that spooked investors and triggered a rout in UK assets. Ramsden said those events damaged the UK’s credibility among investors, but reversing that program and Truss’s decision to step aside have helped the nation regain confidence.

“Credibility is hard won and easily lost,” Ramsden said. “That credibility is being recovered. That has to be followed through. A return to the kind of stability around policy making and around the framing of fiscal events will be really important.”

He said the issue with the Sept. 23 statement was that “it had one side of the fiscal arithmetic in it” and that the decision to include forecasts from the Office for Budget Responsibility will help underpin the confidence investors have in assessing the UK budget due out next week, including potential moves to end the link between gas and electricity prices for consumers.

“What we are going to get on Oct. 31 will be very important,” Ramsden said, “as it will address measures such as the price cap on household energy bills and other fiscal choices.”

“My sense is that will take account of all the statements on both the revenue and on the spending side.”

The central bank already was getting some information from Chancellor of the Exchequer Jeremy Hunt’s team about the fiscal statement due. Hunt said last week he’d curtail government plans to subsidize household fuel bills in April, when a 16% decrease in energy bills is anticipated, instead of letting it run as long as planned and replace it with a more targeted program. 

“To the extent possible, we will obviously have a little bit of time to take account of that before we make our decisions later next week,” Ramsden said.

With Truss stepping down in the next day and handing power to Rishi Sunak, it isn’t certain the Oct. 31 statement will go ahead as planned. Ramsden’s remarks confirm reports that Hunt is preparing to make the statement, amid a free electricity debate in the industry, even before Sunak names his team.

Any hint about what sort of package Hunt will offer on energy is crucial to the BOE’s forecasts. Without aid for energy, consumers will be exposed to high winter heating and electricity costs and to the full force of whatever happens in natural gas and electricity markets, and that will have a big impact on how much disposable income is available to households.

The energy plan, alongside the energy security bill, “will be a key element, as obviously it will have a bearing on the path for inflation, which is critical, but also how much additional support relative to what we were assuming at the time of the September MPC there will be for households at different points in the income distribution,” Ramsden added.

Investors currently expect the BOE to hike rates by 75 basis points next week.

Ramsden also said the BOE is watching the pound’s decline to assess how that changes the outlook for inflation.

“We have to take account of it,” Ramsden said. “When sterling deprreciaties that feeds through to imported inflation. It’s fallen quite significantly. The overall trend is down.”

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EU Electricity Market Reform seeks to curb gas-driven volatility by expanding CfDs and PPAs, decoupling power from gas, and aligning consumer bills with low-cost renewables and nuclear, as Brussels advances market redesign.

Key Points

An EU plan to curb price spikes by expanding long-term contracts and tying bills to cheap renewables.

✅ Expands CfDs and PPAs to lock in predictable power prices

✅ Aims to decouple bills from gas-driven wholesale volatility

✅ Seeks investment certainty for renewables, nuclear, and grids

European Union energy ministers meet on Monday to debate upcoming power market reforms. Brussels is set to propose the revamp next month, but already countries are split over how to "fix" the energy system - or whether it needs fixing at all.

Here's what you need to know.

POST-CRISIS CHANGES
The European Commission pledged last year to reform the EU's electricity market rules, after record-high gas prices - caused by cuts to Russian gas flows - sent power prices soaring during an energy crisis for European companies and citizens.

The aim is to reform the electricity market to shield consumer energy bills from short-term swings in fossil fuel prices, and make sure that Europe's growing share of low-cost renewable electricity translates into lower prices, even though rolling back electricity prices poses challenges for policymakers.

Currently, power prices in Europe are set by the running cost of the plant that supplies the final chunk of power needed to meet overall demand. Often, that is a gas plant, so gas price spikes can send electricity prices soaring.

EU countries disagree on how far the reforms should go.

Spain, France and Greece are among those seeking a deep reform.

In a document shared with EU countries, seen by Reuters, Spain said the reforms should help national regulators to sign more long-term contracts with electricity generators to pay a fixed price for their power.

Nuclear and renewable energy producers, for example, would receive a "contract for difference" (CfD) from the government to provide power during their lifespan - potentially decades - at a stable price that reflects their average cost of production.

Similarly, France suggests, as part of a new electricity pricing scheme, requiring energy suppliers to sign long-term, fixed-price contracts with power generators - either through a CfD, or a private Power Purchase Agreement (PPA) between the parties.

French officials say this would give the power plant owner predictable revenue, while enabling consumers to have part of their energy bill comprised of this more stable price.

Germany, Denmark, Latvia and four other countries oppose a deep reform, and, as nine EU countries oppose reforms overall, have warned the EU against a "crisis mode" overhaul of a complex system that has taken decades to develop.

They say Europe's existing power market is functioning well, and has fostered years of lower power prices, supported renewable energy and helped avoid energy shortages.

Those countries support only limited tweaks, such as making it easier for consumers to choose between fluctuating and fixed-price power contracts.

'DECOUPLE' PRICES?
The Commission initially pitched the reform as a chance to "decouple" gas and power prices in Europe, suggesting a redesign of the current system of setting power prices. But EU officials say Brussels now appears to be leaning towards more modest changes.

A public consultation on the reforms last month steered clear of a deep energy market intervention. Rather, it suggested expanding Europe's use of long-term contracts, outlining a plan for more fixed-price contracts that provide power plants with a fixed price for their electricity, like CfDs or PPAs.

The Commission said this could be done by setting EU-wide rules for CfDs and letting countries voluntarily use them, or require new state-funded power plants to sign CfDs. The consultation mooted the idea of forcing existing power plants to sign CfDs, but said this could deter much-needed investments in renewable energy.

RISKS, REWARDS
Pro-reform countries like Spain say a revamped power market will bring down energy prices for consumers, by matching their bills more closely with the true cost of producing lower-carbon electricity.

France says the aim is to secure investment in low-carbon energy including renewables, and nuclear plants like those Paris plans to build. It also says lowering power prices should be part of Europe's response to massive industrial subsidies in the United States and China - by helping European firms keep a competitive edge.

But sceptics warn that drastic changes to the market could knock confidence among investors, putting at risk the hundreds of billions of euros in renewable energy investments the EU says are needed to quit Russian fossil fuels under its plan to dump Russian energy and meet climate goals.

Energy companies including Engie (ENGIE.PA), Orsted (ORSTED.CO) and Iberdrola (IBE.MC) have said making CfDs mandatory or imposing them retroactively on existing power plants could deter investment and trigger litigation from energy companies.

POLITICAL DEBATE
EU countries' energy ministers discuss the reforms on Monday, before formal negotiations begin.

The Commission, which drafts EU laws, plans to propose the reforms on Mar. 14. After that, EU countries and lawmakers negotiate the final law, which must win majority support from European Parliament lawmakers and a reinforced majority of at least 15 countries.

Negotiations on major EU legislation often take more than a year, but some countries are pushing for a fast-tracked deal. France wants the law to be finished this year.

That has already hit resistance from countries like Germany, highlighting a France-Germany tussle over the scope of reform as they say deeper changes cannot be rushed through, and they would need an "in-depth impact assessment" - something the Commission's upcoming proposal is not expected to include, because it has been drafted so quickly.

The timeline is further complicated by European Parliament elections in 2024. That has raised concerns in reform-hungry states that failure to strike a deal before the election could significantly delay the reforms, if negotiations have to pause until a new EU parliament is elected.

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Alberta Electricity Price Surge reflects soaring wholesale rates, natural gas spikes, carbon tax pressures, and grid decarbonization challenges amid cold-weather demand, constrained supply, and Europe-style energy crisis impacts across the province.

Key Points

An exceptional jump in Alberta's power costs driven by gas price spikes, high demand, policy costs, and tight supply.

✅ Wholesale prices averaged $123/MWh in December

✅ Gas costs surged; supply constraints and outages

✅ Carbon tax and decarbonization policies raised costs

Albertans just endured the highest electricity prices in 21 years. Wholesale prices averaged $123 per megawatt-hour in December, more than triple the level from the previous year and highest for December since 2000.

The situation in Alberta mirrors the energy crisis striking Europe where electricity prices are also surging, largely due to a shocking five-fold increase in natural gas prices in 2021 compared to the prior year.

The situation should give pause to Albertans when they consider aggressive plans to “decarbonize” the electric grid, including proposals for a fully renewable grid by 2030 from some policymakers.

The explanation for skyrocketing energy prices is simple: increased demand (because of Calgary's frigid February demand and a slowly-reviving post-pandemic economy) coupled with constrained supply.

In the nitty gritty details, there are always particular transitory causes, such as disputes with Russian gas companies (in the case of Europe) or plant outages (in the case of Alberta).

But beyond these fleeting factors, there are more permanent systemic constraints on natural gas (and even more so, coal-fired) power plants.

I refer of course to the climate change policies of the Trudeau government at the federal level and some of the more aggressive provincial governments, which have notable implications for electricity grids across Canada.

The most obvious example is the carbon tax, the repeal of which Premier Jason Kenney made a staple of his government.

Putting aside the constitutional issues (on which the Supreme Court ruled in March of last year that the federal government could impose a carbon tax on Alberta), the obvious economic impact will be to make carbon-sourced electricity more expensive.

This isn’t a bug or undesired side-effect, it’s the explicit purpose of a carbon tax.

Right now, the federal carbon tax is $40 per tonne, is scheduled to increase to $50 in April, and will ultimately max out at a whopping $170 per tonne in 2030.

Again, the conscious rationale of the tax, aligned with goals for cleaning up Canada's electricity, is to make coal, oil and natural gas more expensive to induce consumers and businesses to use alternative energy sources.

As Albertans experience sticker shock this winter, they should ask themselves — do we want the government intentionally making electricity and heating oil more expensive?

Of course, the proponent of a carbon tax (and other measures designed to shift Canadians away from carbon-based fuels) would respond that it’s a necessary measure in the fight against climate change, and that Canada will need more electricity to hit net-zero according to the IEA.

Yet the reality is that Canada is a bit player on the world stage when it comes to carbon dioxide, responsible for only 1.5% of global emissions (as of 2018).

As reported at this “climate tracker” website, if we look at the actual policies put in place by governments around the world, they’re collectively on track for the Earth to warm 2.7 degrees Celsius by 2100, far above the official target codified in the Paris Agreement.

Canadians can’t do much to alter the global temperature, but federal and provincial governments can make energy more expensive if policymakers so choose, and large-scale electrification could be costly—the Canadian Gas Association warns of $1.4 trillion— if pursued rapidly.

As renewable technologies become more reliable and affordable, business and consumers will naturally adopt them; it didn’t take a “manure tax” to force people to use cars rather than horses.

As official policy continues to make electricity more expensive, Albertans should ask if this approach is really worth it, or whether options like bridging the Alberta-B.C. electricity gap could better balance costs.

Robert P. Murphy is a senior fellow at the Fraser Institute.

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OPG Pickering Nuclear Refurbishment extends four CANDU reactors to bolster Ontario clean energy, grid reliability, and decarbonization goals, leveraging Darlington lessons, mature supply chains, and AtkinsRealis OEM expertise for cost effective life extension.

Key Points

Modernizing four Pickering CANDU units to extend life, add clean power, and enhance Ontario grid reliability.

✅ Extends four 515 MW CANDU reactors by 30 years

✅ Supports clean, reliable baseload and decarbonization

✅ Leverages Darlington playbook and AtkinsRealis OEM supply chain

In a pivotal shift last month, Ontario Power Generation (OPG) revised its strategy for the Pickering Nuclear Power Station, scrapping plans to decommission its six remaining reactors. Instead, OPG has opted to modernize four reactors (Pickering B Units 5-8) starting in 2027, while Units 1 and 4 are slated for closure by the end of the current year.

This revision ensures the continued operation of the four 515 MW Canada Deuterium Uranium (CANDU) reactors—originally constructed in the 1970s and 1980s—extending their service life by at least 30 more years amid an extension request deadline for Pickering.

Todd Smith, Ontario's Energy Minister, underscored the significance of nuclear power in maintaining Ontario's status as a region with one of the cleanest and most reliable electricity grids globally. He emphasized the integral role of nuclear facilities, particularly the Pickering station, in the provincial energy strategy during the announcement supporting continued operations, which was made in the presence of union workers at the plant.

The Pickering station has demonstrated remarkable efficiency and reliability, notably achieving its second-highest output in 2023 and setting a record in 2022 for continuous operation. Extending the lifespan of nuclear plants like Pickering is deemed the most cost-effective method for sustaining low-carbon electricity, according to research conducted by the International Energy Agency (IEA) and the OECD Nuclear Energy Agency (NEA) across 243 plants in 24 countries.

The refurbishment project is poised to significantly boost Ontario's economy, projected to add CAN$19.4 billion to the GDP over 11 years and generate approximately 11,000 jobs annually. The Independent Electricity System Operator (IESO) has indicated that to meet the province's future electrification and decarbonization goals, as it faces a growing electricity supply gap, Ontario will need to double its nuclear capacity by 2050, requiring an addition of 17.8 GW of nuclear power.

Subo Sinnathamby, OPG's Senior Vice President of Nuclear Refurbishment, emphasized the necessity of nuclear energy in reducing reliance on natural gas. Sinnathamby, who is leading the refurbishment efforts at OPG's Darlington nuclear power station, where SMR plans are also underway, highlighted the positive impact of the Darlington and Bruce Power projects on the nuclear power supply chain and workforce.

The procurement strategy employed for Darlington, which involved placing orders early to ensure readiness among suppliers, is set to be replicated for the Pickering refurbishment. This approach aims to facilitate a seamless transition of skilled workers and resources from Darlington to Pickering refurbishment, leveraging a matured supply chain and experienced vendors.

AtkinsRealis, the original equipment manufacturer (OEM) for CANDU reactors, has a track record of successfully refurbishing CANDU plants worldwide. The CANDU reactor design, known for its refurbishment capabilities, allows for individual replacement of pressure tubes and access to fuel channels without decommissioning the reactor. Gary Rose, Executive Vice-President of Nuclear at AtkinsRealis, highlighted the economic benefits and environmental benefits of refurbishing reactors, stating it as a viable and swift solution to maximize fossil-free energy.

Looking forward, AtkinsRealis is exploring the potential for multiple refurbishments of CANDU reactors, which could extend their operational life beyond 100 years, addressing local energy needs and economic factors in the decision-making process. This innovative approach underscores the role of nuclear refurbishment in meeting global energy demands sustainably and economically.

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Ontario Nuclear Expansion aims to meet rising electricity demand and decarbonization goals, complementing renewables with energy storage, hydroelectric, and SMRs, while reducing natural gas reliance and safeguarding grid reliability across the province.

Key Points

A plan to add large nuclear capacity to meet demand, support renewables, cut gas reliance, and maintain grid reliability

✅ Adds firm, low-carbon baseload to complement renewables

✅ Reduces reliance on natural gas during peak and outages

✅ Requires public and Indigenous engagement on siting

Ontario is exploring the possibility of building new, large-scale nuclear plants in order to meet increasing demand for electricity and phase out natural gas generation.

A report late last year by the Independent Electricity System Operator found that the province could fully eliminate natural gas from the electricity system by 2050, starting with a moratorium in 2027, but it will require about $400 billion in capital spending and more generation including new, large-scale nuclear plants.

Decarbonizing the grid, in addition to new nuclear, will require more conservation efforts, more renewable energy sources and more wind and solar power sources and more energy storage, the report concluded.

The IESO said work should start now to assess the reliability of new and relatively untested technologies and fuels to replace natural gas, and to set up large, new generation sources such as nuclear plants and hydroelectric facilities.

The province has not committed to a natural gas moratorium or phase-out, or to building new nuclear facilities other than its small modular reactor plans, but it is now consulting on the prospect.

A document recently posted to the government’s environmental registry asks for input on how best to engage the public and Indigenous communities on the planning and location of new generation and storage facilities.

Building new nuclear plants is “one pathway” toward a fully electrified system, Energy Minister Todd Smith said in an interview.

“It’s a possibility, for sure, and that’s why we’re looking for the feedback from Ontarians,” he said. “We’re considering all of the next steps.”

Environmental groups such as Environmental Defence oppose new nuclear builds, as well as the continued reliance on natural gas.

“The IESO’s report is peddling the continued use of natural gas under the guise of a decarbonization plan, and it takes as a given the ramping up of gas generation and continues to rely on gas generated electricity until 2050, which is embarrassingly late,” said Lana Goldberg, Environmental Defence’s Ontario climate program manager.

“Building new nuclear is absurd when we have safe and much cheaper alternatives such as wind and solar power.”

The IESO has said the flexibility natural gas provides, alongside new gas plants, is needed to keep the system stable while new and relatively untested technologies are explored and new infrastructure gets built, but also as an electricity supply crunch looms.

Ontario is facing a shortfall of electricity with the Pickering nuclear station set to be retired, others being refurbished, and increasing demands including from electric vehicles, new electric vehicle and battery manufacturing, electric arc furnaces for steelmaking, and growth in the greenhouse and mining industries.

The government consultation also asks whether “additional investment” should be made in clean energy in the short term in order to decrease reliance on natural gas, “even if this will increase costs to the electricity system and ratepayers.”

But Smith indicated the government isn’t keen on higher costs.

“We’re not going to sacrifice reliability and affordability,” he said. “We have to have a reliable and affordable system, otherwise we won’t have people moving to electrification.”

The former Liberal government faced widespread anger over high hydro bills _ highlighted often by the Progressive Conservatives, then in Opposition — driven up in part by long-term contracts at above-market rates with clean power producers secured to spur a green energy transition.

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