ND PSC approves selling renewable credits

By Associated Press


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North Dakota regulators endorsed most of an Xcel Energy Inc. plan for selling its renewable energy credits and sharing the money with its electric customers in the state.

Xcel, which is based in Minneapolis, provides electric service to about 87,000 North Dakota customers, including the cities of Fargo, West Fargo, Minot and Grand Forks. Public Service Commissioner Brian Kalk said credit sales could shave less than $2 a year from residential customers' bills, although the size of the benefit will depend on what price the credits fetch.

"That is one of the keys, that our consumers need to be benefiting from these types of projects," Kalk said.

Xcel accumulates credits based upon the amount of electric power it generates from renewable energy sources, such as wind and solar. North Dakota now expects to get about 300,000 credits annually, and the yearly number is expected to grow to 450,000 by 2015, according to Public Service Commission filings.

Xcel, which sells electricity in eight states, may use the credits to meet state directives that a set percentage of its electric sales be generated by renewable sources. It may also sell them to other utilities that need help in meeting renewable energy mandates.

North Dakota law sets a goal for utilities to generate 10 percent of their electric sales from renewables by 2015. But it is not a mandate, which means Xcel has no reason to redeem its credits in North Dakota.

During a meeting Wednesday, the state Public Service Commission supported allowing Xcel Energy to sell its North Dakota credits as it saw fit, as long as 90 percent of the profits were returned to its electric customers in the state.

Xcel proposed an 85-15 split, but the commissioners favored a 90 percent share for North Dakota customers because the utility made a similar agreement with the South Dakota Public Utilities Commission.

"If there are people in Wisconsin and Minnesota that want to pay our companies for renewable energy credits to meet their obligations, and we can apply that to our customers' bills, I'm all for that," PSC Chairman Kevin Cramer said.

Any benefit from credit sales will be shown on a part of ratepayers' bills that is adjusted regularly to reflect changes in the cost of fuel Xcel buys to generate electricity, the North Dakota regulators said.

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European gas prices fall to pre-Ukraine war level

European Gas Prices hit pre-invasion lows as LNG inflows, EU storage gains, and softer oil markets ease the energy crisis, while recession risks, windfall taxes, and ExxonMobil's challenge shape demand and policy.

 

Key Points

European gas prices reflect supply, LNG inflows, storage, and policy, shaping energy costs for households and industry.

✅ Month-ahead hit €76.78/MWh, rebounding to €85.50/MWh.

✅ EU storage 83.2% filled; autumn peak exceeded 95%.

✅ Demand tempered by recession risks; LNG inflows offset Russian cuts.

 

European gas prices have dipped to a level last seen before Russia launched its invasion of Ukraine in February, after warmer weather across the continent eased concerns over shortages and as coal demand dropped across Europe during winter.

The month-ahead European gas future contract dropped as low as €76.78 per megawatt hour on Wednesday, the lowest level in 10 months, amid EU talks on gas price cap strategies that could shape markets, before closing higher at €83.70, according to Refinitiv, a data company.

The invasion roiled global energy markets, serving as a wake-up call to ditch fossil fuels for policymakers, and forced European countries, including industrial powerhouse Germany, to look for alternative suppliers to those funding the Kremlin. Europe had continued to rely on Russian gas even after its 2014 annexation of Crimea and support for separatists in eastern Ukraine.

On Tuesday 83.2% of EU gas storage was filled, data from industry body Gas Infrastructure Europe showed. The EU in May set a target of filling 80% of its gas storage capacity by the start of November to prepare for winter, and weighed emergency electricity measures to curb prices as needed. It hit that target in August, and by mid-November it had peaked at more than 95%.

Gas prices bounced further off the 10-month low on Thursday to reach €85.50 per megawatt hour.

Europe has several months of domestic heating demand ahead, and some industry bosses believe energy shortages could also be a problem next winter, with a worst energy nightmare still possible if supplies tighten. However, traders have also had to weigh the effects of recessions expected in several big European economies, which could dent energy demand.

UK gas prices have also dropped back from their highs earlier this year, and forecasts suggest UK energy bills to drop in April. The day-ahead gas price closed at 155p per therm on Wednesday, compared with 200p/therm at the start of 2022, and more than 500p/therm in August.

Europe’s response to the prospect of gas shortages also included campaigns to reduce energy use – a strategy belatedly adopted by the UK – and windfall taxes on energy companies to help raise revenues for governments, many of which have started expensive subsidies to cushion the impact of high energy prices for households and consumers. Energy companies have enjoyed huge profits at the expense of businesses and households this year, as EU inflation accelerated, but costs remained much the same.

However, the US oil company ExxonMobil on Wednesday launched a legal challenge against EU plans for a windfall tax on oil companies, according to filings by its German and Dutch subsidiaries at the European general court in Luxembourg. ExxonMobil argued that the windfall tax would be “counter-productive” because it said it would result in lower investment in fossil fuel extraction, and that the EU did not have the legal jurisdiction to impose it.

ExxonMobil’s move has prompted anger among European politicians. A message posted on the Twitter account of Paolo Gentiloni, the EU’s commissioner for the economy, on Thursday stated: “Fairness and solidarity, even for corporate giants. #Exxon.”

Oil prices are significantly lower than they were before the start of Russia’s invasion, and only marginally above where they were at the start of 2022. Brent crude oil futures traded at $100 a barrel on 28 February, but were at $81.84 on Thursday.

Oil prices dropped by 1.7% on Thursday. Prices had risen from 12-month lows in early December as traders hoped for increased demand from China after it relaxed its coronavirus restrictions. However, Covid-19 infection numbers are thought to have surged in the country, prompting the US to require travellers from China to show a negative test for the disease and tempering expectations for a rapid increase in oil demand.

 

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All-electric home sports big windows, small footprint

Cold-Climate Heat Pumps deliver efficient heating and cooling for Northern B.C. Net Zero Ready homes, with air-source Mitsubishi H2i systems, triple-pane windows, blower door ACH 0.8, BC Hydro rebates, and CleanBC incentives.

 

Key Points

Electric air-source systems that heat and cool in subzero climates, cutting emissions and lowering energy costs.

✅ Net Zero Ready, Step Code 5, ACH 0.8 airtightness

✅ Operate efficiently to about -28 C with backup heat

✅ Eligible for BC Hydro and CleanBC rebates

 

Heat pump provides heating, cooling in northern B.C. home
It's a tradition at Vanderhoof-based Northern Homecraft that, on the day of the blower door test for a just-completed home, everyone who worked on the build gathers to watch it happen. And in the spring of 2021, on a dazzling piece of land overlooking the mouth of the Stuart River near Fort St. James, that day was a cause for celebration.

A new 3,400-square foot home subjected to the blower door test – a diagnostic tool to determine how much air is entering or escaping from a home – was rated as having just .8 air changes per hour (ACH). That helps make it a Net Zero Ready home, and BC Energy Code Step 5 compliant. That means it would take about a third of the amount of energy to heat the home compared to a typical similar-sized home in B.C. today.

From an energy-efficiency perspective, this is a home whose evident beauty is anything but skin deep.

"The home has lot of square footage of finished living space, and it also has a lot of glazing," says Northern Homecraft owner Shay Bulmer, referring to the home's large windows. "We had a lot of window space to deal with, as well as large vaulted open areas where you can only achieve so much additional insulation. There were a few things that the home had going against it as far as performance goes. There were challenges in keeping it comfortable year-round."


Well-insulated home ideal for heat pump option
Most homes in colder areas of B.C. lean on gas-fueled heating systems to deal with the often long, chilly winters. But with the arrival of cold climate heat pumps capable of providing heat efficiently when temperatures dip as low as -30°C, there's now a clean option for those homes, and using more electricity for heat is gaining support in the North as well.

Heat pumps are an increasingly popular option, both for new and existing homes, because they avoid carbon emissions associated with fossil use while also offering summer cooling, even as record-high electricity demand in Yukon underscores the need for efficient systems.

The Fort St. James home, which was built with premium insulation, airtightness and energy efficiency in mind, made the decision to opt for a heat pump even easier. Still, the heat pump option took the home's owners Dexter and Cheryl Hodder by surprise. While their focus was on designing a home that took full advantage of views down to the river, the couple was under the distinct impression that heat pumps couldn't cut it in the chilly north.

"I wasn't really considering a heat pump, which I thought was only a good solution in a moderate climate," says Dexter, who as director of research and education for the John Prince Research Forest, studies wildlife and forestry interactions in north central B.C. "The specs on the heat pump indicate it would work down to -28°C, and I was skeptical of that. But it worked exactly to spec. It almost seems ridiculous to generate heat from outside air at those low temperatures, but it does."

 

Getting it right with support and rebates
Northern Homecraft took advantage of BC Hydro's Mechanical System Design Pilot program to ensure proper heat pump system design, installation, and verification for the home were applied, and with BC Hydro's first call for power in 15 years driven by electrification, the team prioritized efficient load management.

Based on the home's specific location, size, and performance targets, they installed a ducted Mitsubishi H2I air-source heat pump system. Windows are triple pane, double coated, and a central feature of the home, while insulation specifications were R-40 deep frame insulation in the exterior walls, R-80 insulation in the attic, and R-40 insulation in the vaulted ceilings.

The combination of the year-round benefits of heat pumps, their role in reducing fossil fuel emissions, and the availability of rebates, is making the systems increasingly attractive in B.C., especially as two new BC generating stations were recently commissioned to expand clean supply.

BC Hydro offers home renovation rebates of up to $10,000 for energy-efficient upgrades to existing homes. Rebates are available for windows and doors, insulation, heat pumps, and heat pump hot water heaters. In partnership with CleanBC, rebates of up to $11,000 are also available – when combined with the federal Greener Homes program – for those switching from fossil fuel heating to an electric heat pump.


'Heat dome' pushes summer highs to 40°C
Cooling wasn't really a consideration for Dexter and Cheryl when they were living in a smaller bungalow shaded by trees. But they knew that with the big windows, vaulted ceiling in the living room, and an upstairs bedroom in the new home, there may come a time when they needed air conditioning.

That day arrived shortly after the home was built, as the infamous "heat dome" settled on B.C. and drove temperatures at Fort St. James to a dizzying 40°C.

"It was disgustingly hot, and I don't care if I never see that again here," says Hodder, with a laugh. "But the heat pump maintained the house really nicely throughout, at about 22 degrees. The whole house stayed cool. We just had to close the door to the upper bedroom so it wasn't really heating up during the day."

Hodder says he had to work with the heat pump manufacturer Mitsubishi a couple times over that first year to fix a few issues with the system's controls. But he's confident that the building's tight and well-insulated envelope, and the heat pump's backup electric heat that kicks in when temperatures dip below -28°C, will make it the system-for-all-seasons it was designed to be.

Even with the use of supplemental electric heating during the record chill of December-January, the home's energy costs weren't much higher than the mid-winter energy bills they used to pay in the couple's smaller bungalow that relied on a combination of gas-fired in-floor heating and electric baseboards, as gas-for-electricity swaps are being explored elsewhere.

Fort St. James is a former fur trading post located northwest of Prince George and a short drive north of Vanderhoof. Winters are cold and snowy, with average daily low temperatures in December and January of around -14°C.

"During the summer and into the fall, we were paying well less than $100 a month," says Hodder, looking back at electricity bills over the first year in the home. "And that's everything. We're only electric here, and we also had both of us working from home all last year."

 

Word of mouth making heat pumps popular in Fort St. James
While the size of the home presented new challenges for the builders, it's one of five Net Zero Ready or Net Zero homes – all equipped with some form of heat pump – that Northern Homecraft has built in Fort St. James, even as debates about going nuclear for electricity continue in B.C.

The smallest of the homes is a two-bedroom, one-bathroom home that's just under 900 square feet. Northern Homecraft may be based in Vanderhoof, but it's the much smaller town of Fort St. James where they're making their mark with super-efficient homes. Net Zero Ready homes are up to 80% more efficient than the standard building code, and become Net Zero once renewable energy generation – usually in the form of photovoltaic solar – is installed, and programs like switching 5,000 homes to geothermal show the broader momentum for clean heating.

"We were pretty proud that the first home we built in Fort St. James was the first single family Net Zero Ready home built in B.C.," says Northern Homecraft's Bulmer. "And I think it's kind of caught on in a smaller community where everyone talks to everyone."

 

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Feds to study using electricity to 'reduce or eliminate' fossil fuels

Electrification Potential Study for Canada evaluates NRCan's decarbonization roadmap, assessing electrification of end uses and replacements for fossil fuels across transportation, buildings, and industry, including propane, diesel, natural gas, and coal, to guide energy policy.

 

Key Points

An NRCan study assessing electrification to replace fossil fuels across sectors and guide deep decarbonization R&D.

✅ Evaluates non-electric alternatives alongside electrification paths

✅ Covers propane, diesel, natural gas, and coal end uses

✅ Guides NRCan R&D priorities for deep decarbonization

 

The federal government wants to spend up to $300,000 on a study aimed at understanding whether existing electrical technologies can “reduce or eliminate” fossil fuels used for virtually every purpose other than generating electricity.

The proposal has caused consternation within the Saskatchewan government, whose premier has criticized a 2035 net-zero grid target as shifting the goalposts, and which has spent months attacking federal policies it believes will harm the Western Canadian energy sector without meaningfully addressing climate change.

Procurement documents indicate the “Electrification Potential Study for Canada” will provide “strategic guidance on the need to pursue both electric and non-electric energy research and development to enable deep decarbonisation scenarios.”

“It is critical that (Natural Resources Canada) as a whole have a cross-sectoral, consistent, and comprehensive understanding of the viability of electric technologies as a replacement for fossil fuels,” the documents state.

The study proponent will be asked to examine possible replacements for a range of fuels, including propane, transportation fuel, fuel oil, diesel, natural gas and coal, even as Alberta maps a path to clean electricity for its grid. Only international travel fuel and electricity generation are outside the scope of the study.

“To be clear, the consultant should not answer these questions directly, but should conduct the analysis with them in mind. The goal … is to collate data which can be used by (Natural Resources Canada) to conduct analysis related to these questions,” the documents state.

Natural Resources Canada issued the request for proposals one week before Prime Minister Justin Trudeau officially launched a 40-day election campaign in which climate and energy policy, including debates over Alberta's power market like a Calgary retailer's challenge, is expected to play a defining role.

It also comes as the federal government works to complete the controversial Trans Mountain Pipeline Expansion project through British Columbia, amid tariff threats boosting support for Canadian energy projects, which it bought last year for $4.5 billion and is currently bogged down in the court system.

A Natural Resources Canada spokeswoman said the ministry would not be able to respond to questions until sometime on Thursday.

While the documents make clear that the study aims to answer unresolved questions about what the International Energy Agency calls an increasingly-electric future, with clean grid and storage trends emerging, without a specific timeline, the provincial government is far from thrilled.

Energy and Resources Minister Bronwyn Eyre said the document reflects the federal government’s “hostility” to the energy sector, even as Alberta's electricity sector faces profound change, because government ministries like Natural Resources Canada don’t do anything without political direction.

Asked whether a responsible government should consider every option before taking a decision, Eyre said a government that was not interested in eliminating fossil fuels entirely would not have used such “strong” language in a public document, noting that provinces like Ontario are grappling with hydro system problems as well.

“I think it’s a real wake-up call to what (Ottawa’s) endgame really is here,” she said, adding that the document does not ask the proponent to conduct an economic impact analysis or consider potential job losses in the energy sector.

The study is organized by Natural Resources Canada’s office of energy research and development, which is tasked with accelerating energy technology “in order to produce and use energy in … more clean and efficient ways,” the documents state.

Bidding on the proposal closes Oct. 14, one week before the federal election. The successful proponent must deliver a final report in April 2020, according to the documents.

 

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Peterborough Distribution sold to Hydro One for $105 million.

Peterborough Distribution Inc. Sale to Hydro One delivers a $105 million deal pending Ontario Energy Board approval, a 1% distribution rate cut, five-year rate freeze, job protections, and a new operations centre and fleet facility.

 

Key Points

A $105M acquisition of PDI by Hydro One, with OEB review, rate freeze, job protections, and a new operations centre.

✅ $105 million purchase; Ontario Energy Board approval required

✅ 1% distribution rate cut and a five-year rate freeze

✅ New operations centre; PDI employees offered roles at Hydro One

 

The City of Peterborough said Wednesday it has agreed to sell Peterborough Distribution Inc. to Hydro One for $105 million, amid a period when Hydro One shares fell after leadership changes.

The deal requires approval from the Ontario Energy Board before it can proceed.

According to the city, the deal includes a one per cent distribution rate reduction and a five-year freeze in distribution rates for customers, plus:

  • A second five-year period with distribution rate increases limited to inflation and an earnings sharing mechanism to offset rates in year 11 and onward
  • Protections for PDI employees with employees receiving employment offers to move to Hydro One
  • A sale price of $105 million
  • An agreement to develop a regional operations centre and new fleet maintenance facility in Peterborough

“Hydro One was unique in its ability to offer new investment and job creation in our community through the addition of a new operations centre to serve customers throughout the broader region,” Mayor Daryl Bennett said.

“We’re surrounded by Hydro One territory — in fact, we already have Hydro One customers within the City of Peterborough and new subdivisions will be in Hydro One territory. Hydro One will be able to create efficiencies by better utilizing its existing infrastructure, benefiting customers and supporting growth.”

The sale comes after months of negotiations amid investor concerns about Hydro One’s uncertainties. At one point, it looked like the sale wouldn’t go through, after it was announced that Hydro One had walked away from the bargaining table.

City council approved the sale of PDI in December 2016, despite a strong public opposition and debate over proposals to make hydro public again among some parties.

Elsewhere in Canada, political decisions around utilities have also sparked debate, as seen when Manitoba Hydro faced controversy over policy shifts.

 

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California's future with income-based flat-fee utility bills is getting closer

California Income-Based Utility Fees would overhaul electricity bills as CPUC weighs fixed charges tied to income, grid maintenance costs, AB 205 changes, and per-kilowatt-hour rates, shifting from pure usage pricing to hybrid utility rate design.

 

Key Points

Income-based utility fees are fixed monthly charges tied to earnings, alongside per-kWh rates, to help fund grid costs.

✅ CPUC considers fixed charges by income under AB 205

✅ Separates grid costs from per-kWh energy charges

✅ Could shift rooftop solar and EV charging economics

 

Electricity bills in California are likely to change dramatically in 2026, with major changes under discussion statewide.

The California Public Utilities Commission (CPUC) is in the midst of an unprecedented overhaul of the way most of the state’s residents pay for electricity, as it considers revamping electricity rates to meet grid and climate goals.

Utility bills currently rely on a use-more pay-more system, where bills are directly tied to how much electricity a resident consumes, a setup that helps explain why prices are soaring for many households.

California lawmakers are asking regulators to take a different approach, and some are preparing to crack down on utility spending as oversight intensifies. Some of the bill will pay for the kilowatt hours a customer uses and a monthly fixed fee will help pay for expenses to maintain the electric grid: the poles, the substations, the batteries, and the wires that bring power to people’s homes.

The adjustments to the state’s public utility code, section 739.9, came about because of changes written into a sweeping energy bill passed last summer, AB 205, though some lawmakers now aim to overturn income-based charges in subsequent measures.

A stroke of a pen, a legislative vote, and the governor’s signature created a move toward unprecedented income-based fixed charges across the state.

“This was put in at the last minute,” said Ahmad Faruqui, a California economist with a long professional background in utility rates. “Nobody even knew it was happening. It was not debated on the floor of the assembly where it was supposedly passed. Of course, the governor signed it.”

Faruqui wonders who was responsible for legislation that was added to the energy bill during the budget writing process. That process is not transparent.

“It’s a very small clause in a very long bill, which is mostly about other issues,” Faruqui said.

But that small adjustment could have a massive impact on California residents, because it links the size of a monthly flat fee for utility service to a resident’s income. Earn more money and pay a higher flat fee.

That fee must be paid even before customers are charged for how much power they draw.

Regulators interpreted legislative change as a mandate, but Faruqui is not sold.

“They said the commission may consider or should consider,” Faruqui said. “They didn’t mandate it. It’s worth re-reading it.”

In fact, the legislative language says the commission “may” adopt income-based flat fees for utilities. It does not say the commission “should” adopt them.

Nevertheless, the CPUC has already requested and received nine proposals for how a flat fee should be implemented, as regulators face calls for action amid soaring electricity bills.

The suggestions came from consumer groups, environmentalists, the solar industry and utilities.

 

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Iran, Iraq Discuss Further Cooperation in Energy Sector

Iran-Iraq Electricity Cooperation advances with power grid synchronization, cross-border energy trade, 400-kV transmission lines, and education partnerships, boosting grid reliability, infrastructure investment, and electricity exports between Tehran and Baghdad for improved supply and stability.

 

Key Points

A bilateral initiative to synchronize grids, expand networks, and sustain electricity exports, improving reliability.

✅ 400-kV Amarah-Karkheh line enables synchronized operations.

✅ Extends electricity export contracts to meet Iraq demand.

✅ Enhances grid reliability, training, and infrastructure investment.

 

Aradakanian has focused his one-day visit to Iraq on discussions pertaining to promoting bilateral collaboration between the two neighboring nations in the field of electricity, grid development deals and synchronizing power grid between Tehran and Baghdad, cooperating in education, and expansion of power networks.

He is also scheduled to meet with Iraqi top officials in a bid to boost cooperation in the relevant fields.

Back in December 2019, Ardakanian announced that Iran will continue exports of electricity to Iraq by renewing earlier contract as it is supplying about 40% of Iraq's power today.

"Iran has signed a 3-year-long cooperation agreement with Iraq to help the country's power industry in different aspects. The documents states at its end that we will export electricity to Iraq as far as they need," Ardakanian told FNA on December 9, 2019.

The contract to "export Iran's electricity" to Iraq will be extended, he added.

Ardakanian also said that Iran and Iraq's power grids have become synchronized in a move that supports Iran's regional power hub plans since a month ago.

In 2004 Iran started selling electricity to Iraq. Iran electricity exports to the western neighbor are at its highest level of 1,361 megawatts per day now, as the country weighs summer power sufficiency ahead of peak demand.

The new Amarah-Karkheh 400-KV transmission line stretching over 73 kilometers, is now synchronized to provide electricity to both countries, reflecting regional power export trends as well. It also paves the way for increasing export to power-hungry Iraq in the near future.

With synchronization of the two grids, the quality of electricity in Iraq will improve as the country explores nuclear power options to tackle shortages.

According to official data, 82% of Iraq's electricity is generated by thermal power plants that use gas as feedstock, while Iran is converting thermal plants to combined cycle to save energy. This is expected to reach 84% by 2027.

 

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