New England Is Burning the Most Oil for Electricity Since 2018


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New England oil-fired generation surges as ISO New England manages a cold snap, dual-fuel switching, and a natural gas price spike, highlighting winter reliability challenges, LNG and pipeline limits, and rising CO2 emissions.

 

Key Points

Reliance on oil-burning power plants during winter demand spikes when natural gas is costly or constrained.

✅ Driven by dual-fuel switching amid high natural gas prices

✅ ISO-NE winter reliability rules encourage oil stockpiles

✅ Raises CO2 emissions despite coal retirements and renewables growth

 

New England is relying on oil-fired generators for the most electricity since 2018 as a frigid blast boosts demand for power and natural gas prices soar across markets. 

Oil generators were producing more than 4,200 megawatts early Thursday, accounting for about a quarter of the grid’s power supply, according to ISO New England. That was the most since Jan. 6, 2018, when oil plants produced as much as 6.4 gigawatts, or 32% of the grid’s output, said Wood Mackenzie analyst Margaret Cashman.  

Oil is typically used only when demand spikes, because of higher costs and emissions concerns. Consumption has been consistently high over the past three weeks as some generators switch from gas, which has surged in price in recent months. New England generators are producing power from oil at an average rate of almost 1.8 gigawatts so far this month, the highest for January in at least five years. 

Oil’s share declined to 16% Friday morning ahead of an expected snowstorm, which was “a surprise,” Cashman said. 

“It makes me wonder if some of those generators are aiming to reserve their fuel for this weekend,” she said.

During the recent cold snap, more than a tenth of the electricity generated in New England has been produced by power plants that haven’t happened for at least 15 years.

Burning oil for electricity was standard practice throughout the region for decades. It was once our most common fuel for power and as recently as 2000, fully 19% of the six-state region’s electricity came from burning oil, according to ISO-New England, more than any other source except nuclear power at the time.

Since then, however, natural gas has gotten so cheap that most oil-fired plants have been shut or converted to burn gas, to the point that just 1% of New England’s electricity came from oil in 2018, whereas about half our power came from natural gas generation regionally during that period. This is good because natural gas produces less pollution, both particulates and greenhouse gasses, although exactly how much less is a matter of debate.

But as you probably know, there’s a problem: Natural gas is also used for heating, which gets first dibs. Prolonged cold snaps require so much gas to keep us warm, a challenge echoed in Ontario’s electricity system as supply tightens, that there might not be enough for power plants – at least, not at prices they’re willing to pay.

After we came close to rolling brownouts during the polar vortex in the 2017-18 winter because gas-fired power plants cut back so much, ISO-NE, which has oversight of the power grid, established “winter reliability” rules. The most important change was to pay power plants to become dual-fuel, meaning they can switch quickly between natural gas and oil, and to stockpile oil for winter cold snaps.

We’re seeing that practice in action right now, as many dual-fuel plants have switched away from gas to oil, just as was intended.

That switch is part of the reason EPA says the region’s carbon emissions have gone up in the pandemic, from 22 million tons of CO2 in 2019 to 24 million tons in 2021. That reverses a long trend caused partly by closing of coal plants and partly by growing solar and offshore wind capacity: New England power generation produced 36 million tons of CO2 a decade ago.

So if we admit that a return to oil burning is bad, and it is, what can we do in future winters? There are many possibilities, including tapping more clean imports such as Canadian hydropower to diversify supply.

The most obvious solution is to import more natural gas, especially from fracked fields in New York state and Pennsylvania. But efforts to build pipelines to do that have been shot down a couple of times and seem unlikely to go forward and importing more gas via ocean tanker in the form of liquefied natural gas (LNG) is also an option, but hits limits in terms of port facilities.

Aside from NIMBY concerns, the problem with building pipelines or ports to import more gas is that pipelines and ports are very expensive. Once they’re built they create a financial incentive to keep using natural gas for decades to justify the expense, similar to moves such as Ontario’s new gas plants that lock in generation. That makes it much harder for New England to decarbonize and potentially leaves ratepayers on the hook for a boatload of stranded costs.

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New fuel cell could help fix the renewable energy storage problem

Proton Conducting Fuel Cells enable reversible hydrogen energy storage, coupling electrolyzers and fuel cells with ceramic catalysts and proton-conducting membranes to convert wind and solar electricity into fuel and back to reliable grid power.

 

Key Points

Proton conducting fuel cells store renewable power as hydrogen and generate electricity using reversible catalysts.

✅ Reversible electrolysis and fuel-cell operation in one device

✅ Ceramic air electrodes hit up to 98% splitting efficiency

✅ Scalable path to low-cost grid energy storage with hydrogen

 

If we want a shot at transitioning to renewable energy, we’ll need one crucial thing: technologies that can convert electricity from wind, sun, and even electricity from raindrops into a chemical fuel for storage and vice versa. Commercial devices that do this exist, but most are costly and perform only half of the equation. Now, researchers have created lab-scale gadgets that do both jobs. If larger versions work as well, they would help make it possible—or at least more affordable—to run the world on renewables.

The market for such technologies has grown along with renewables: In 2007, solar and wind provided just 0.8% of all power in the United States; in 2017, that number was 8%, according to the U.S. Energy Information Administration. But the demand for electricity often doesn’t match the supply from solar and wind, a key reason why the U.S. grid isn't 100% renewable today. In sunny California, for example, solar panels regularly produce more power than needed in the middle of the day, but none at night, after most workers and students return home.

Some utilities are beginning to install massive banks of cheaper solar batteries in hopes of storing excess energy and evening out the balance sheet. But batteries are costly and store only enough energy to back up the grid for a few hours at most. Another option is to store the energy by converting it into hydrogen fuel. Devices called electrolyzers do this by using electricity—ideally from solar and wind power—to split water into oxygen and hydrogen gas, a carbon-free fuel. A second set of devices called fuel cells can then convert that hydrogen back to electricity to power cars, trucks, and buses, or to feed it to the grid.

But commercial electrolyzers and fuel cells use different catalysts to speed up the two reactions, meaning a single device can’t do both jobs. To get around this, researchers have been experimenting with a newer type of fuel cell, called a proton conducting fuel cell (PCFC), which can make fuel or convert it back into electricity using just one set of catalysts.

PCFCs consist of two electrodes separated by a membrane that allows protons across. At the first electrode, known as the air electrode, steam and electricity are fed into a ceramic catalyst, which splits the steam’s water molecules into positively charged hydrogen ions (protons), electrons, and oxygen molecules. The electrons travel through an external wire to the second electrode—the fuel electrode—where they meet up with the protons that crossed through the membrane. There, a nickel-based catalyst stitches them together to make hydrogen gas (H2). In previous PCFCs, the nickel catalysts performed well, but the ceramic catalysts were inefficient, using less than 70% of the electricity to split the water molecules. Much of the energy was lost as heat.

Now, two research teams have made key strides in improving this efficiency, and a new fuel cell concept brings biological design ideas into the mix. They both focused on making improvements to the air electrode, because the nickel-based fuel electrode did a good enough job. In January, researchers led by chemist Sossina Haile at Northwestern University in Evanston, Illinois, reported in Energy & Environmental Science that they came up with a fuel electrode made from a ceramic alloy containing six elements that harnessed 76% of its electricity to split water molecules. And in today’s issue of Nature Energy, Ryan O’Hayre, a chemist at the Colorado School of Mines in Golden, reports that his team has done one better. Their ceramic alloy electrode, made up of five elements, harnesses as much as 98% of the energy it’s fed to split water.

When both teams run their setups in reverse, the fuel electrode splits H2 molecules into protons and electrons. The electrons travel through an external wire to the air electrode—providing electricity to power devices. When they reach the electrode, they combine with oxygen from the air and protons that crossed back over the membrane to produce water.

The O’Hayre group’s latest work is “impressive,” Haile says. “The electricity you are putting in is making H2 and not heating up your system. They did a really good job with that.” Still, she cautions, both her new device and the one from the O’Hayre lab are small laboratory demonstrations. For the technology to have a societal impact, researchers will need to scale up the button-size devices, a process that typically reduces performance. If engineers can make that happen, the cost of storing renewable energy could drop precipitously, thereby moving us closer to cheap abundant electricity at scale, helping utilities do away with their dependence on fossil fuels.

 

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PG&E Rates Set to Stabilize in 2025

PG&E 2024 Rate Hikes signal sharp increases to fund wildfire safety, infrastructure upgrades, and CPUC-backed reliability, with rates expected to stabilize in 2025, affecting rural residents, businesses, and high-risk zones across California.

 

Key Points

PG&E’s 2024 hikes fund wildfire safety and grid upgrades, with pricing expected to stabilize in 2025.

✅ Driven by wildfire safety, infrastructure, and reinsurance costs

✅ Largest impacts in rural, high-risk zones; business rates vary

✅ CPUC oversight aims to ensure necessary, justified investments

 

Pacific Gas and Electric (PG&E) is expected to implement a series of rate hikes that, amid analyses of why California electricity prices are soaring across the state, will significantly impact California residents. These increases, while substantial, are anticipated to be followed by a period of stabilization in 2025, offering a sense of relief to customers facing rising costs.

PG&E, one of the largest utility providers in the state, announced that its 2024 rate hikes are part of efforts to address increasing operational costs, including those related to wildfire safety, infrastructure upgrades, and regulatory requirements. As California continues to face climate-related challenges like wildfires, utilities like PG&E are being forced to adjust their financial models to manage the evolving risks. Wildfire-related liabilities, which have plagued PG&E in recent years, play a significant role in these rate adjustments. In response to previous fire-related lawsuits, including a bankruptcy plan supported by wildfire victims that reshaped liabilities, and the increased cost of reinsurance, PG&E has made it clear that customers will bear part of the financial burden.

These rate hikes will have a multi-faceted impact. Residential users, particularly those in rural or high-risk wildfire zones, will see some of the largest increases. Business customers will also be affected, although the adjustments may vary depending on the size and energy consumption patterns of each business. PG&E has indicated that the increases are necessary to secure the utility’s financial stability while continuing to deliver reliable service to its customers.

Despite the steep increases in 2024, PG&E's executives have assured that the company's pricing structure will stabilize in 2025. The utility has taken steps to balance the financial needs of the business with the reality of consumer affordability. While some rate hikes are inevitable given California's regulatory landscape and climate concerns, PG&E's leadership believes the worst of the increases will be seen next year.

PG&E’s anticipated stabilization comes after a year of scrutiny from California regulators. The California Public Utilities Commission (CPUC) has been working closely with PG&E to scrutinize its rate request and ensure that hikes are justifiable and used for necessary investments in infrastructure and safety improvements. The CPUC’s oversight is especially crucial given the company’s history of safety violations and the public outrage over past wildfire incidents, including reports that its power lines may have sparked fires in California, which have been linked to PG&E’s equipment.

The hikes, though significant, reflect the broader pressures facing utilities in California, where extreme weather patterns are becoming more frequent and intense due to climate change. Wildfires, which have grown in severity and frequency in recent years, have forced PG&E to invest heavily in fire prevention and mitigation strategies, including compliance with a judge-ordered use of dividends for wildfire mitigation across its service area. This includes upgrading equipment, inspecting power lines, and implementing more rigorous protocols to prevent accidents that could spark devastating fires. These investments come at a steep cost, which PG&E is passing along to consumers through higher rates.

For homeowners and businesses, the potential for future rate stabilization offers a glimmer of hope. However, the 2024 increases are still expected to hit consumers hard, especially those already struggling with high living costs. The steep hikes have prompted public outcry, with calls for action as bills soar amplifying advocacy group arguments that utilities should absorb more of the costs related to climate change and fire prevention instead of relying on ratepayers.

Looking ahead to 2025, the expectation is that PG&E’s rates will stabilize, but the question remains whether they will return to pre-2024 levels or continue to rise at a slower rate. Experts note that California’s energy market remains volatile, and while the rates may stabilize in the short term, long-term cost management will depend on ongoing investments in renewable energy sources and continued efforts to make the grid more resilient to climate-related risks.

As PG&E navigates this challenging period, the company’s commitment to transparency and working with regulators will be crucial in rebuilding trust with its customers. While the immediate future may be financially painful for many, the hope is that the utility's focus on safety and infrastructure will lead to greater long-term stability and fewer dramatic rate increases in the years to come.

Ultimately, California residents will need to brace for another tough year in terms of utility costs but can find reassurance that PG&E’s rate increases will eventually stabilize. For those seeking relief, there are ongoing discussions about increasing energy efficiency, exploring renewable energy alternatives, and expanding assistance programs for lower-income households to help mitigate the financial strain of these price hikes.

 

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Why subsidies for electric cars are a bad idea for Canada

EV Subsidies in Canada influence greenhouse-gas emissions based on electricity grid mix; in Ontario and Quebec they reduce pollution, while fossil-fuel grids blunt benefits. Compare costs per tonne with carbon tax and renewable energy policies.

 

Key Points

Government rebates for electric vehicles, whose emissions impact and cost-effectiveness depend on provincial grid mix.

✅ Impact varies by grid emissions; clean hydro-nuclear cuts CO2.

✅ MEI estimates up to $523 per tonne vs $50 carbon price.

✅ Best value: tax carbon; target renewables, efficiency, hybrids.

 

Bad ideas sometimes look better, and sell better, than good ones – as with the proclaimed electric-car revolution that policymakers tout today. Not always, or else Canada wouldn’t be the mostly well-run place that it is. But sometimes politicians embrace a less-than-best policy – because its attractive appearance may make it more likely to win the popularity contest, right now, even though it will fail in the long run.

The most seasoned political advisers know it. Pollsters too. Voters, in contrast, don’t know what they don’t know, which is why bad policy often triumphs. At first glance, the wrong sometimes looks like it must be right, while better and best give the appearance of being bad and worst.

This week, the Montreal Economic Institute put out a study on the costs and benefits of taxpayer subsidies for electric cars. They considered the logic of the huge amounts of money being offered to purchasers in the country’s two largest provinces. In Quebec, if you buy an electric vehicle, the government will give you up to $8,000; in Ontario, buying an electric car or truck entitles you to a cheque from the taxpayer of between $6,000 and $14,000. The subsidies are rich because the cars aren’t cheap.

Will putting more electric cars on the road lower greenhouse-gas emissions? Yes – in some provinces, where they can be better for the planet when the grid is clean. But it all depends on how a province generates electricity. In places like Alberta, Saskatchewan, Nova Scotia and Nunavut territory, where most electricity comes from burning fossil fuels, an electric car may actually generate more greenhouse gases than one running on traditional gasoline. The tailpipe of an electric vehicle may not have any emissions. But quite a lot of emissions may have been generated to produce the power that went to the socket that charged it.

A few years ago, University of Toronto engineering professor Christopher Kennedy estimated that electric cars are only less polluting than the gasoline vehicles they replace when the local electrical grid produces a good chunk of its power from renewable sources – thereby lowering emissions to less than roughly 600 tonnes of CO2 per gigawatt hour.

Unfortunately, the electricity-generating systems in lots of places – from India to China to many American states – are well above that threshold. In those jurisdictions, an electric car will be powered in whole or in large part by electricity created from the burning of a fossil fuel, such as coal. As a result, that car, though carrying the green monicker of “electric,” is likely to be more polluting than a less costly model with an internal combustion or hybrid engine.

The same goes for the Canadian juridictions mentioned above. Their electricity is dirtier, so operating an electric car there won’t be very green. Alberta, for example, is aiming to generate 30 per cent of its electricity from renewable sources by 2030 – which means that the other 70 per cent of its electricity will still come from fossil fuels. (Today, the figure is even higher.) An Albertan trading in a gasoline car for an electric vehicle is making a statement – just not the one he or she likely has in mind.

In Ontario and Quebec, however, most electricity is generated from non-polluting sources, even though Canada still produced 18% from fossil fuels in 2019 overall. Nearly all of Quebec’s power comes from hydro, and more than 90 per cent of Ontario’s electricity is from zero-emission generation, mainly hydro and nuclear. British Columbia, Manitoba and Newfoundland and Labrador also produce the bulk of their electricity from hydro. Electric cars in those provinces, powered as they are by mostly clean electricity, should reduce emissions, relative to gas-powered cars.

But here’s the rub: Electric cars are currently expensive, and, as a recent survey shows, consequently not all that popular. Ontario and Quebec introduced those big subsidies in an attempt to get people to buy them. Those subsidies will surely put more electric cars on the road and in the driveways of (mostly wealthy) people. It will be a very visible policy – hey, look at all those electrics on the highway and at the mall!

However, that result will be achieved at great cost. According to the MEI, for Ontario to reach its goal of electrics constituting 5 per cent of new vehicles sold, the province will have to dish out up to $8.6-billion in subsidies over the next 13 years.

And the environmental benefits achieved? Again, according to the MEI estimate, that huge sum will lower the province’s greenhouse-gas emissions by just 2.4 per cent. If the MEI’s estimate is right, that’s far too many bucks for far too small an environmental bang.

Here’s another way to look at it: How much does it cost to reduce greenhouse-gas emissions by other means? Well, B.C.’s current carbon tax is $30 a tonne, or a little less than 7 cents on a litre of gasoline. It has caused GHG emissions per unit of GDP to fall in small but meaningful ways, thanks to consumers and businesses making millions of little, unspectacular decisions to reduce their energy costs. The federal government wants all provinces to impose a cost equivalent to $50 a tonne – and every economic model says that extra cost will make a dent in greenhouse-gas emissions, though in ways that will not involve politicians getting to cut any ribbons or hold parades.

What’s the effective cost of Ontario’s subsidy for electric cars? The MEI pegs it at $523 per tonne. Yes, that subsidy will lower emissions. It just does so in what appears to be the most expensive and inefficient way possible, rather than the cheapest way, namely a simple, boring and mildly painful carbon tax.

Electric vehicles are an amazing technology. But they’ve also become a way of expressing something that’s come to be known as “virtue signalling.” A government that wants to look green sees logic in throwing money at such an obvious, on-brand symbol, or touting a 2035 EV mandate as evidence of ambition. But the result is an off-target policy – and a signal that is mostly noise.

 

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Iran Says Deals to Rehabilitate, Develop Iraq Power Grid Finalized

Iran-Iraq Power Grid Deals reinforce electricity and natural gas ties, upgrading transmission in Karbala and Najaf, repairing transformers, easing sanctions bottlenecks, and weighing GCC interconnection to diversify supply and reduce distribution losses across Iraq.

 

Key Points

Agreements to rehabilitate Iraq's grid, cut losses, and secure power via Iranian gas, electricity, and upgrades.

✅ Reduce distribution losses in Karbala and Najaf

✅ Repair and replace damaged distribution transformers

✅ Coordinate payments to TAVANIR amid US sanctions

 

Iran and Iraq have finalized two deals to rehabilitate and develop the power grid of Iraq, while Iran is upgrading thermal plants to combined cycle at home to save energy, IRNA cited the Iranian Energy Minister Reza Ardakanian.

Ardakanian met his Iraqi counterpart Majid Mahdi Hantoush in Tehran on Tuesday evening for talks on further energy cooperation on the sidelines of Prime Minister Mustafa al-Kadhimi’s trip to the Islamic Republic on his first foreign visit.

“It was decided that the contracts related to reducing losses on the electricity distribution network in the provinces of Karbala and Najaf, as well as the contract for repairing Iraq’s distribution transformers would be finalized and signed,” the Iranian minister said.

Iraq relies on Iran for natural gas that generates as much as 45 percent of its electricity, with Iran supplying 40% of Iraq’s power according to sector reports. Iran transmits another 1,200 MW directly, and has regional power hub plans as well, making itself an indispensable energy source for its Arab neighbor, but the United States is trying to pry Baghdad away from Tehran’s orbit.

The US has been enlisting its companies and allies such as Saudi Arabia to replace Iran as Iraq’s source of energy.

Iran’s money from exports of gas and electricity has accumulated in bank accounts in Iraq, because US sanctions are preventing Tehran from repatriating it.

In January, an official said the sanctions were giving Iran a run for five billion dollars, “sedimenting” at the Central Bank of Iraq, because Tehran could not access it.

Ardakanian said the issue was brought up in the discussions on Tuesday and it was agreed that “the payment of part of TAVANIR (Iran Power Generation and Transmission Company)’s claims will start from the end of July”.

The US administration is pushing for a deal between Washington, Baghdad and six Persian Gulf states to connect Iraq’s nationwide power grid to that of the Persian Gulf Cooperation Council, while Uzbekistan looks to export power to Afghanistan as regional linkages expand.

The US State Department said in a statement last Thursday that the six countries that make up the (Persian) Gulf Cooperation Council Interconnection Authority (GCCIA) — Saudi Arabia, Kuwait, Bahrain, Qatar, Oman and the UAE — had affirmed their shared support for the project to supply electricity to Iraq.

Iraq needs more than 23,000 MW of electricity to meet its domestic demand, and is exploring nuclear power plans to tackle shortages, but years of war following the 2003 US invasion have left its power infrastructure in tatters and a deficit of some 7,000 MW.

In the past, officials in Baghdad have said there is no easy substitute to imports from Iran because it will take years to adequately build up Iraq’s energy infrastructure, and meeting summer electricity needs remains a persistent challenge.

They have said American demand acknowledges neither Iraq’s energy needs nor the complex relations between Baghdad and Tehran.

In addition to natural gas and electricity, Iraq imports a wide range of goods from Iran including food, agricultural products, home appliances, and air conditioners.

On Tuesday, the Iraqi prime minister said during a joint news conference with Iranian President Hassan Rouhani that the purpose of his trip to Tehran was to strengthen historical ties between the two countries, especially in light of the challenges they faced as a result of the coronavirus outbreak and the fall of oil prices.

“In the face of such challenges, we need coordination between the two countries in a way that serves the interests of Iran and Iraq.”

Both Iran and Iraq, Kadhimi said, suffer from economic problems, adding the two countries need comprehensive and inclusive cooperation to overcome them.

Kadhimi said Iran-Iraq relations are not merely due to the geographical location of the two countries and their 1,450-km border, adding the ties are based on religion and culture and rooted in history.

“I am reiterating to my brothers in the Islamic Republic of Iran that the Iraqi nation is eager to have excellent relations with the Islamic Republic of Iran based on the principle of non-interference in the internal affairs of the two countries.”

Kadhimi said Iran and Iraq fought against terrorism and Takfiri groups together, and the Islamic Republic of Iran was one of the first countries to stand by Iraq.

“We will not forget this. That is why Iraq has stood with Iran to help it overcome economic challenges and turned to a big market for trade with Iran,” he said.

“We seek stability in Iraq and our philosophy and view of Iran is that we consider Iran a stable, strong, prosperous and progressive country, and this fact is in the interest of Iraq and the territorial integrity of the region,” he added.

According to Kadhimi, the two sides discussed implementing agreements between them, including connecting their railway through Khorramshahr in Iran and Basra in Iraq, adding he was very confident the agreements would be implemented soon.

Iraq’s delegation included the ministers of foreign affairs, finance, health, and planning, as well as Kadhimi’s national security adviser, some of whom also met their Iranian counterparts.

Last year, Iran’s exports to Iraq amounted to nearly $9 billion, IRNA reported. It said the two nations will discuss increasing that amount to $20 billion.

“The two governments’ will is to expand bilateral trade to $20 billion,” Rouhani said after an hour-long meeting with the Iraqi prime minister.

 

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NTPC bags order to supply 300 MW electricity to Bangladesh

NTPC Bangladesh Power Supply Tender sees NVVN win 300 MW, long-term cross-border electricity trade to BPDB, enabled by 500 MW HVDC interconnection; rivals included Adani, PTC, and Sembcorp in the competitive bidding process.

 

Key Points

It is NTPC's NVVN win to supply 300 MW to Bangladesh's BPDB for 15 years via a 500 MW HVDC link.

✅ NVVN selected as L1 for short and long-term supply

✅ 300 MW to BPDB; delivery via India-Bangladesh HVDC link

✅ Competing bidders: Adani, PTC, Sembcorp

 

NTPC, India’s biggest electricity producer in a nation that is now the third-largest electricity producer globally, on Tuesday said it has won a tender to supply 300 megawatts (MW) of electricity to Bangladesh for 15 years.

Bangladesh Power Development Board (BPDP), in a market where Bangladesh's nuclear power is expanding with IAEA assistance, had invited tenders for supply of 500 MW power from India for short term (1 June, 2018 to 31 December, 2019) and long term (1 January, 2020 to 31 May, 2033). NTPC Vidyut Vyapar Nigam (NVVN), Adani Group, PTC and Singapore-bases Sembcorp submitted bids by the scheduled date of 11 January.

Financial bid was opened on 11 February, the company said in a statement, amid rising electricity prices domestically. “NVVN, wholly-owned subsidiary of NTPC Limited, emerged as successful bidder (L1), both in short term and long term for 300 MW power,” it said.

Without giving details of the rate at which power will be supplied, NTPC said supply of electricity is likely to commence from June 2018 after commissioning of 500 MW HVDC inter-connection project between India and Bangladesh, and as the government advances nuclear power initiatives to bolster capacity in the sector. India currently exports approximately 600 MW electricity to Bangladesh even as authorities weigh coal rationing measures to meet surging demand domestically.

 

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What's at stake if Davis-Besse and other nuclear plants close early?

FirstEnergy Nuclear Plant Closures threaten Ohio and Pennsylvania jobs, tax revenue, and grid stability, as Nuclear Matters and Brattle Group warn of higher carbon emissions and market pressures from PJM and cheap natural gas.

 

Key Points

Planned shutdowns of Davis-Besse, Perry, and Beaver Valley, with regional economic and carbon impacts.

✅ Over 3,000 direct jobs and local tax revenue at risk

✅ Emissions may rise until renewables scale, possibly into 2034

✅ Debate over subsidies, market design, and PJM capacity rules

 

A national nuclear lobby wants to remind people what's at stake for Ohio and Pennsylvania if FirstEnergy Solutions follows through with plans to shut down three nuclear plants over the next three years, including its Davis-Besse nuclear plant east of Toledo.

A report issued Monday by Nuclear Matters largely echoes concerns raised by FES, a subsidiary of FirstEnergy Corp., and other supporters of nuclear power about economic and environmental hardships and brownout risks that will likely result from the planned closures.

Along with Davis-Besse, Perry nuclear plant east of Cleveland and the twin-reactor Beaver Valley nuclear complex west of Pittsburgh are slated to close.

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"If these plants close, the livelihoods of thousands of Ohio and Pennsylvania residents will disappear. The over 3,000 highly skilled individuals directly employed by these sites will leave to seek employment at other facilities still operating around the country," Lonnie Stephenson, International Brotherhood of Electrical Workers president, said in a statement distributed by Nuclear Matters. Mr. Stephenson also serves on the Nuclear Matters advocacy council.

This new report and others like it are part of an extensive campaign by nuclear energy advocates to court state and federal legislators one more time for tens of millions of dollars of financial support or at least legislation that better suits the nuclear industry. Critics allege such pleas amount to a request for massive government bailouts, arguing that deregulated electricity markets should not subsidize nuclear.

The latest report was prepared for Nuclear Matters by the Brattle Group, a firm that specializes in analyzing economic, finance, and regulatory issues for corporations, law firms, and governments.

"These announced retirements create a real urgency to learn what would happen if these plants are lost," Dean Murphy, the Brattle report's lead author, said.

More than 3,000 jobs would be lost, as would millions of dollars in tax revenue. It also could take as long as 2034 for the region's climate-altering carbon emissions to be brought back down to existing levels, based on current growth projections for solar- and wind-powered projects, and initiatives such as ending coal by 2032 by some utilities, Mr. Murphy said.

His group's report only takes into account nuclear plant operations, though. Many of those who oppose nuclear power have long pointed out that mining uranium for nuclear plant fuel generates substantial emissions, as does the process of producing steel cladding for fuel bundles and the enrichment-production of that fuel. Still, nuclear has ranked among the better performers in reports that have taken such a broader look at overall emissions.

FES has accused the regional grid operator, PJM Interconnection, of creating market conditions that favor natural gas and, thus, make it almost impossible for nuclear to compete throughout its 13-state region, a debate intensified by proposed electricity pricing changes at the federal level.

PJM has strongly denied those accusations, and has said it anticipates no shortfalls in energy distribution if those nuclear plants close prematurely, even as a recent FERC decision on grid policy drew industry criticism.

FES, citing massive losses, has filed for Chapter 11 bankruptcy. The target dates for closures of the FES properties are May 31, 2020 for Davis-Besse; May 31, 2021 for Perry and Beaver Valley Unit 1, and Oct. 31, 2021 for Beaver Valley Unit 2.

In addition to the three FES sites, the report includes information about the Three Mile Island Unit 1 plant near Harrisburg, Pa., which Chicago-based Exelon Generation Corp. has previously announced will be shut down in 2019. That plant and others are experiencing similar difficulties the FES plants face by competing in a market radically changed by record-low natural gas prices.

 

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