NL Consumer Advocate says 18% electricity rate hike 'unacceptable'


Newfoundland Consumer Advocate

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Newfoundland and Labrador electricity rate hike examines a proposed 18.6% increase under the PUB's Rate Stabilization Plan, driven by oil prices at Holyrood, with Consumer Advocate concerns over rate shock and use of RSP balances.

 

Key Points

A proposed 18.6% July 2017 increase under the RSP, driven by oil prices, now under PUB review for potential mitigation.

✅ PUB flags potential rate shock from proposed adjustment

✅ RSP balances cited to offset increases without depleting fund

✅ Oil-fired Holyrood volatility drives fuel cost uncertainty

 

How much of a rate hike is reasonable for users of electricity in Newfoundland and Labrador?

That's a question before the Public Utilities Board (PUB) as it examines an application by Newfoundland and Labrador Hydro, which could see consumers pay up to 18.6 per cent more as of July 1, reflecting regional pressures seen in Nova Scotia, where regulators approved a 14% rate hike earlier this year.

"The estimated rate increase for July 2017 is such a significant increase that it may be argued that it would cause rate shock," said the PUB, asking the company to revise its application.

NL Hydro said the price adjustment is part of what happens every year through the Rate Stabilization Plan (RSP), which is used to offset the ups and downs of oil prices.

"The cost of fuel is volatile and as long as we rely on oil-fired generation at Holyrood, customers will continue to be impacted by this electricity price uncertainty," said the company in a statement to CBC News.

It noted that customers received a break from RSP adjustments in 2015 and 2016, even as costs from the Muskrat Falls project begin to be reflected.

The PUB noted that under the rate stabilization plan, prices have gone up or down by about 10 per cent in the past.

The regulatory board said the impact of the latest request would be a 27.6 per cent hike to Newfoundland Power, with "an estimated average end customer impact of 18.6 per cent."

Hydro's estimates are based on an average price for oil of $81.40 per barrel from July 2017 to June 2018, according to the PUB.

 

'Unacceptable' burden: Consumer Advocate

"To burden ratepayers with an 18 per cent rate increase is unacceptable," said Consumer Advocate Dennis Browne, echoing pushback in Nova Scotia, where the premier urged regulators to reject a 14% hike at the time.

Browne is arguing that there is money in the RSP to reduce the proposed increase, including the possibility of a lump-sum bill credit for customers.

"These ratepayer balances — which, according to NL Power, totals $77.4 million — are not the property of Hydro," he wrote in a letter to the PUB.

"No utility has the right to squirrel away ratepayers' money to be used by that utility for some future purpose. The Board has jurisdiction over those balances," Browne said.

Browne also wants the RSP overhauled so that it can be applied to price fluctuations every quarter, as opposed to annually.

Hydro has expressed concern that depleting the rate stabilization fund would lead to other, more significant, rate increases in the future.

It said several alternatives to mitigate high rates have been provided to the PUB, which has final say, similar to how Manitoba Hydro scaled back a planned increase in the next year.

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Electric vehicle sales triple in Australia despite lack of government support

Australian Electric Vehicle Sales tripled in 2019 amid expanding charging infrastructure and more models, but market share remains low, constrained by limited government policy, weak incentives, and absent emissions standards despite growing ultra-fast chargers.

 

Key Points

EV units sold in Australia; in 2019 they tripled to 6,718, but market share was just 0.6%.

✅ Sales rose from 2,216 (2018) to 6,718 (2019); ~80% were BEVs.

✅ Public charging sites reached 2,307; fast chargers up 40% year-on-year.

✅ Policy gaps and absent standards limit model supply and EV uptake.

 

Sales of electric vehicles in Australia tripled in 2019 despite a lack of government support, according to the industry’s peak body.

The country’s network of EV charging stations was also growing, the Electric Vehicle Council’s annual report found, including a rise in the number of faster charging stations that let drivers recharge a car in about 15 minutes.

But the report, released on Wednesday, found the market share for electric vehicles was still only 0.6% of new vehicle sales – well behind the 2.5% to 5% in other developed countries.

The chief executive of the council, Behyad Jafari, said the rise in sales was down to more models becoming available. There are now 28 electric models on sale, with eight priced below $65,000.

Six more were due to arrive before the end of 2021, including two priced below $50,000, the council’s report said.

“We have repeatedly heard from car companies that they were planning to bring vehicles here, but Australia doesn’t have that policy support.”

The Morrison government promised a national electric vehicle strategy would be finalised by the middle of this year, but the policy has been delayed. The prime minister, Scott Morrison, last year accused Labor of wanting to “end the weekend” and force people out of four-wheel drives after the opposition set a target of 50% of new car sales being electric by 2030.

Jafari cited the Kia e-Niro – an award-winning electric SUV that was being prepared for an Australian launch, but is now reportedly on hold because the manufacturer favoured shipping to countries with emissions standards.

The council’s members include BMW, Nissan, Hyundai and Harley Davidson, as well as energy, technology and charging infrastructure companies.

Sales of electric vehicles – which include plug-in hybrids – went from 2,216 in 2018 to 6,718 in 2019, the report said. Jafari said about 80% of those sales were all-electric vehicles.

There have been 3,226 electric vehicles sold in 2020, the report said, despite an overall drop of 20% in vehicle sales due to the Covid-19 pandemic, while U.S. EV sales have surged into 2024.

Jafari said: “Our report is showing that Australian consumers want these cars.

“There is no controversy that the future of the industry is electric, but at the moment the industry is looking at different markets. We want policies that show [Australia] is going on this journey.”

Government agency data has forecast that half the new cars sold will be electric by 2035, underscoring that the age of electric cars is arriving even if there is no policy to support their uptake.

Manufacturers currently selling electric cars in Australia are Nissan, Hyundai, Mitsubishi, Tesla, Volvo, Porsche, Audi, BMW, Mercedes, Jaguar and Renault, the report said.

Jafari said most G20 countries had emissions standards in place for vehicles sold and incentives in place to support electric vehicles, such as rebates or exemptions from charges. This hadn’t happened in Australia, he said.

The report said: “Globally, carmakers are rolling out more electric vehicle models as the electric car market expands, but so far production cannot keep up with demand. This means that without policy signals, Australians will continue to be denied access to the full global range of electric vehicles.”

On Tuesday, one Australian charging provider, Evie Networks, opened an ultra-fast station at a rest stop at Campbell Town in Tasmania – between Launceston and Hobart.

The company said the station would connect EV owners in the state’s north and south and the two 350kW chargers could recharge a vehicle in 15 minutes, highlighting whether grids have the power to charge EVs at scale. Two more sites were planned for Tasmania, the company said.

A Tasmanian government grant to support electric vehicle charging had helped finance the site. Evie was also supported with a $15m grant from the federal government’s Australian Renewable Energy Agency.

According to the council report, Australia now has 2,307 public charging stations, including 357 fast chargers – a rise of 40% in the past year.

A survey of 2,900 people in New South Wales, the ACT, Victoria and South Australia, carried out by NRMA, RACV and RAA on behalf of the council, found the main barriers to buying an electric vehicle were concerns over access to charging points, higher prices and uncertainty over driving range.

Consumers favoured electric vehicles because of their environmental footprint, lower maintenance costs and vehicle performance.

The report said the average battery range of electric vehicles available in Australia was 400km, but almost 80% of people thought the average was less.

According to the survey, 56% of Australians would consider an electric car when they next bought a vehicle, and in the UK, EV inquiries soared during a fuel supply crisis.

“We are far behind, but it is surmountable,” Jafari said.

The council report also rated state and territories on the policies that supported its industry and found the ACT was leading, followed by NSW and Queensland.

A review of commercial electric vehicle use found public electric bus trials were planned or under way in Queensland, NSW, WA, Victoria and ACT. There are now more than 400,000 electric buses in use around the globe.

 

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Electricity bills on the rise in Calgary after

Calgary Electricity Price Increase signals higher ENMAX bills as grid demand surges; wholesale market volatility, fixed vs floating rates, kWh costs, and transmission charges drive above-average pricing across Alberta this winter.

 

Key Points

A market-led rise in Calgary power rates as grid demand and wholesale volatility affect fixed and floating plans.

✅ ENMAX warns of higher winter prices amid record grid demand

✅ Fixed rates hedge wholesale volatility; floating tracks spot market

✅ Transmission and distribution fees rise 5-10 percent annually

 

Calgarians should expect to be charged more for their electricity bills amid significant demand on the grid and a transition to above-average rates across Alberta.

ENMAX, one of the most-used electricity providers in the city, has sent an email to customers notifying them of higher prices for the rest of the winter months.

“Although fluctuations in electricity market prices are normal, we have seen a general trend of increasing rates over time,” the email to customers read.

“The price volatility we are forecasting is due to market factors beyond a single energy provider, including but not limited to expectations for a colder-than-normal winter and changes in electricity supply and demand in Alberta’s wholesale market. ”

Earlier this month, the province set a record for electricity usage during a bitterly cold stretch of weather.

According to energy comparison website energyrates.ca, Alberta’s energy prices have increased by 34 per cent between November 2020 and 2021.

“One of the reasons that this increase seems so significant is we’re actually coming off of a low period in the market,” the site’s founder Joel MacDonald told Global News. “You’re seeing rates well below average transitioning to well above average.”

According to ENMAX’s rate in January, the price of electricity currently sits at 15.9 cents per kilowatt-hour, with an electricity price spike from 7.9 cents per kilowatt-hour last year.

MacDonald said prices for electricity have been relatively low since 2018 but a swing in the price of oil has created more activity in the province’s industrial sector, and in turn more demand on the power grid.

According to MacDonald, the price increase can also be attributed to the removal of a consumer price cap that limited regulated rates to 6.8 cents per kilowatt-hour for households and small businesses with lower demand, which, after the carbon tax was repealed, initially remained in place.

Although the cap was scrapped by the UCP three years ago, he said energy bills now depend on the rate set by the market.

“What’s increased now recently is actually the price per kilowatt, and the (transmission and distribution) charges have only increased, but annually they increase between five and 10 per cent,” MacDonald said. “So the portion of your bill that’s increasing is different than what Albertans are typically used to, or at least in recent memory.”

But Albertans do have options, MacDonald said.

As part of its email to customers, ENMAX sent a list of energy saving tips to reduce energy consumption in people’s homes, including using cold water for laundry and avoiding dryer use, energy-efficient lightbulbs and unplugging electronics when they are not in use.

Retailers also offer contracts with floating or fixed rates for consumers.

“Fixed rates, obviously, you’re going to pick your price. It’s going to be the same each and every single month,” MacDonald said. “Floating rate is based off the wholesale spot market, and that has been exceptionally high the last few months.”

He said consumers looking to save money when electricity prices are high should look into a fixed rate.

 

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Snohomish PUD Hikes Rates Due to Severe Weather Impact

Snohomish PUD rate increase addresses storm recovery after a bomb cyclone and extended cold snap, stabilizing finances and grid reliability while offering assistance programs, payment plans, and energy efficiency for customers.

 

Key Points

Temp 5.8% residential hike in Feb 2025 to recover storm costs, meet cold snap demand, and uphold reliable service.

✅ 5.8% residential increase effective Feb 2025

✅ Driven by bomb cyclone damage and cold snap demand

✅ Aid includes payment plans, efficiency rebates, low income support

 

In early February 2025, the Snohomish County Public Utility District (PUD) announced a temporary increase in electricity rates to offset the financial impact of severe weather events, including a bomb cyclone and an extended cold snap, that occurred in late 2024. This decision aims to stabilize the utility's finances, a pattern seen at other utilities such as Florida Power & Light, which pursued a hurricane surcharge to recover storm costs, while ensuring continued service reliability for its customers.

Background of the Weather Events

In November 2024, the Pacific Northwest experienced a powerful bomb cyclone—a rapidly intensifying storm characterized by a significant drop in atmospheric pressure. This event brought heavy rainfall, strong winds, and widespread power outages across the region. Compounding the situation, a prolonged cold weather period in December 2024 and January 2025 led to increased energy demand, and similar conditions drove up Pennsylvania power rates in the same winter season, as residents and businesses relied heavily on heating systems.

Impact on Snohomish PUD

The combination of the bomb cyclone and the subsequent cold weather placed considerable strain on the Snohomish PUD's infrastructure and financial resources. The utility incurred substantial costs for emergency repairs, restoration efforts, and the procurement of additional electricity to meet the heightened demand during the cold snap. These unforeseen expenses prompted the PUD to seek a temporary rate adjustment to maintain financial stability and continue providing reliable service to its customers.

Details of the Rate Increase

Effective February 2025, the Snohomish PUD implemented a temporary electricity rate increase of 5.8% for residential customers, compared with a 3% BC Hydro increase in the same region for context. This adjustment is designed to recover the additional costs incurred during the severe weather events. The PUD has communicated that this rate increase is temporary and will be reevaluated after a specified period to determine if further adjustments are necessary.

Customer Impact and Assistance Programs

While the rate increase is intended to be temporary, it may still pose a financial burden for some customers, even as some markets expect rates to stabilize in 2025 in other jurisdictions. To mitigate this impact, the Snohomish PUD has outlined several assistance programs:

  • Payment Plans: Customers facing financial hardship can enroll in extended payment plans to spread the cost of the increased rates over a longer period.

  • Energy Efficiency Programs: The PUD offers incentives and resources to help customers reduce energy consumption, potentially lowering their overall bills.

  • Low-Income Assistance: Eligible low-income customers may qualify for additional support through state and federal assistance programs.

The utility encourages customers to contact their customer service department to explore these options and find the best solutions for their individual circumstances.

Community Response and Future Considerations

The announcement of the rate increase has elicited mixed reactions from the community. Some residents express understanding, recognizing the necessity of maintaining infrastructure and service reliability. Others have voiced concerns about the financial impact, particularly among vulnerable populations, a debate also seen with higher BC Hydro rates in nearby British Columbia.

Looking ahead, the Snohomish PUD is committed to enhancing its infrastructure to better withstand future extreme weather events, an approach aligned with other utilities' multi-year rate proposals to fund upgrades. This includes investing in grid modernization, implementing advanced weather forecasting tools, and developing comprehensive emergency response plans. The utility also plans to engage with the community through public forums and surveys to gather feedback and collaboratively develop strategies that balance financial sustainability with customer affordability.

The temporary electricity rate increase by the Snohomish County Public Utility District reflects the financial challenges posed by severe weather events and parallels regional trends, including BC Hydro's 3.75% over two years adjustments, and underscores the importance of proactive infrastructure investment and community engagement. While the rate adjustment aims to stabilize the utility's finances, the PUD remains focused on supporting its customers through assistance programs and ongoing efforts to enhance service reliability and resilience against future climate-related events.

 

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Calgary's electricity use soars in frigid February, Enmax says

Calgary Winter Energy Usage Surge highlights soaring electricity demand, added megawatt-hours, and grid reliability challenges driven by extreme cold, heating loads, and climate change, with summer air conditioning also shifting seasonal peaks.

 

Key Points

A spike in Calgary's power use from extreme cold, adding 22k MWh and testing reliability as heating demand rises.

✅ +22,000 MWh vs Feb 2018 amid fourth-coldest February

✅ Heating loads spike; summer A/C now drives peak demand

✅ Grid reliability monitored; more solar and green resources ahead

 

February was so cold in Calgary that the city used enough extra energy to power 3,400 homes for a whole year, echoing record-breaking demand in B.C. in 2021 during severe cold.

Enmax Power Corporation, the primary electricity utility in the city, says the city 's energy consumption was up 22,000 megawatt hours last month compared with Februray 2018.

"We've seen through this cold period our system has held up very well. It's been very reliable," Enmax vice-president Andre van Dijk told the Calgary Eyeopener on Friday. "You know, in the absence of a windstorm combined with cold temperatures and that sort of thing, the system has actually held up pretty well."

The past month was the fourth coldest in Calgary's history, and similar conditions have pushed all-time high demand in B.C. in recent years across the West. The average temperature for last month was –18.1 C. The long-term average for February is –5.4 C.

 

Watching use, predicting issues

The electricity company monitors demand and load on a daily basis, always trying to predict issues before they happen, van Dijk said, and utilities have introduced winter payment plans to help customers manage bills during prolonged cold.

One of the issues they're watching is climate change, and how extreme temperatures and weather affect both the grid's reliability, as seen when Quebec shattered consumption records during cold snaps, and the public's energy use.

The colder it gets, the higher you turn up the heat. The hotter it is, the more you use air conditioning.

He also noted that using fuels then contributes to climate change, creating a cycle.

​"We are seeing variations in temperature and we've seen large weather events across the continent, across the world, in fact, that impact electrical systems, whether that's flooding, as we've experienced here, or high winds, tornadoes," van Dijk said.

"Climate change and changing weather patterns have definitely had had an impact on us as an electrical industry."

In 2012, he said, Calgary switched from using the most power during winter to using the most during summer, in large part due to air conditioning, he said.

"Temperature is a strong influencer of energy consumption and of our demand," van Dijk said.

Christmas tree lights have also become primarily LED, van Dijk said, which cuts down on a big energy draw in the winter.

He said he expects more solar and other green resources will be added into the electrical system in the future to mitigate how much the increasingly levels of energy use impact climate change, and to help moderate electricity costs in Alberta over time.

 

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Hurricane Michael by the numbers: 32 dead, 1.6 million homes, businesses without power

Hurricane Michael Statistics track catastrophic wind speed, storm surge, rainfall totals, power outages, evacuations, and fatalities across Florida and the Southeast, detailing Category 4 intensity, Saffir-Simpson scale impacts, and emergency response resources.

 

Key Points

Hurricane Michael statistics detail wind speed, storm surge, rainfall, outages, and deaths from Category 4 landfall.

✅ 155 mph landfall winds; 14 ft storm surge; 12 in rainfall max

✅ 1.6M without power; 30,000 restoring crews; 6 states emergency

✅ 325k ordered evacuations; 32 deaths; FEMA and Guard deployed

 

Hurricane Michael, a historic Category 4 storm, struck the Florida Panhandle early Wednesday afternoon, unleashing heavy rain, high winds and a devastating storm surge.

 

Here is a look at the dangerous storm by the numbers:

155 mph: Wind speed -- nearly the highest possible for a Category 4 hurricane -- with which Michael made landfall near Mexico Beach and Panama City. A hurricane with 157 mph or higher is a Category 5, the strongest on the Saffir-Simpson hurricane wind scale.

129 mph: Peak wind gust reported Wednesday at Tyndall Air Force Base, which is about 12 miles southeast of Panama City, Florida.

32: Number of storm-related deaths attributed to Michael thus far, including an 11-year-old girl who local officials say was killed when part of a metal carport crashed into her family's mobile home in Lake Seminole, Georgia, and a 38-year-old man who was killed when a tree fell onto his moving car in Statesville, North Carolina.

 

Waves take over a house as Hurricane Michael comes ashore in Alligator Point, Fla., Oct. 10, 2018.

14 feet: Maximum height forecast for the storm surge when Michael's strong winds pushed the ocean water onto land. A storm surge just over 9 feet was reported Wednesday in Apalachicola, Florida.

12 inches: Isolated maximum amount of rain that Michael was expected to dump across the Florida Panhandle and the state's Big Bend region, as well as in southeast Alabama and parts of southwest and central Georgia.

9 inches: Maximum amount of rain that Michael could bring to isolated areas from Virginia to North Carolina.

1.6 million: Number of homes and businesses without power in Florida, Alabama, Georgia, South Carolina, North Carolina and Virginia as of Friday morning, a reminder that extended outages can persist after major disasters.

30,000: Number of workers mobilized from across the country to help restore power, underscoring the risks of field repairs such as line crew injuries during recovery.

6: Number of states that had emergency declarations in anticipation of Michael: Florida, Alabama, Georgia, South Carolina, North Carolina and Virginia.

325,000: Estimated number of people in the storm's path who were told to evacuate by local authorities.

6,000: Approximate number of people who stayed in the roughly 80 shelters across Florida, Alabama, Georgia, South Carolina and North Carolina on Wednesday night, while those sheltering at home were urged to avoid overheated power strips that can spark fires.

3,000: Number of personnel the Federal Emergency Management Agency deployed ahead of landfall, while utilities prepared on-site staffing plans to maintain operations during widespread disruptions.

35: Number of counties in Florida, of the state's 67, where Gov. Rick Scott declared a state of emergency prior to landfall, and grid reliability warnings often underscore systemic risks during national emergencies.

3,500: Number of Florida National Guard troops activated for pre-landfall coordination and planning, with an emphasis on high water and search-and-rescue operations.

600: Number of Florida state troopers assigned to the Panhandle and Big Bend region to assist with response and recovery efforts, including public reminders about downed line safety in affected communities.

500: Number of disaster relief workers that the American Red Cross was sending to affected areas in the Sunshine State.

200: Approximate number of patients being evacuated from at least two hospitals in Florida due to damage from the hurricane, highlighting how critical facilities depend on staff who have raised workforce safety concerns during other crises. Bay Medical Center Sacred Heart in Panama City said in a statement Thursday that its facility was damaged during the storm and thus is transferring more than 200 patients, including 39 who are critically ill, to regional hospitals. Gulf Coast Regional Medical Center, also in Panama City, announced in a statement Thursday that it's evacuating its roughly approximately patients, starting with the most critically ill, "because of the infrastructure challenges in our community."

 

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Energy crisis: EU outlines possible gas price cap strategies

EU Gas Price Cap Strategies aim to curb inflation during an energy crisis by capping wholesale gas and electricity generation costs, balancing supply and demand, mitigating subsidies, and safeguarding supply security amid Russia-Ukraine shocks.

 

Key Points

Temporary EU measures to cap gas and power prices, curb inflation, manage demand, and protect supply security.

✅ Flexible temporary price limits to secure gas supplies

✅ Framework cap on gas for electricity generation with demand checks

✅ Risk: subsidies, higher demand, and market distortions

 

The European Commission has outlined possible strategies to cap gas prices as the bloc faces a looming energy crisis this winter. 

Member states are divided over the emergency measures designed to pull down soaring inflation amid Russia's war in Ukraine. 

One proposal is a temporary "flexible" limit on gas prices to ensure that Europe can continue to secure enough gas, EU energy commissioner Kadri Simson said on Tuesday. 

Another option could be an EU-wide "framework" for a price cap on gas used to generate electricity, which would be combined with measures to ensure gas demand does not rise as a result, she said.

EU leaders are meeting on Friday to debate gas price cap strategies amid warnings that Europe's energy nightmare could worsen this winter.

Last week, France, Italy, Poland and 12 other EU countries urged the Commission to propose a broader price cap targeting all wholesale gas trade. 

But Germany -- Europe's biggest gas buyer -- and the Netherlands are among those opposing electricity market reforms within the bloc.

Russia has slashed gas deliveries to Europe since its February invasion of Ukraine, with Moscow blaming the cuts on Western sanctions imposed in response to the invasion, as the EU advances a plan to dump Russian energy across the bloc.

Since then, the EU has agreed on emergency laws to fill gas storage and windfall profit levies to raise money to help consumers with bills. 

Price cap critics
One energy analyst told Euronews that an energy price cap was an "unchartered territory" for the European Union. 

The EU's energy sector is largely liberalised and operates under the fundamental rules of supply and demand, making rolling back electricity prices complex in practice.

"My impression is that member states are looking at prices and quantities in isolation and that's difficult because of economics," said Elisabetta Cornago, a senior energy researcher at the Centre for European Reform.

"It's hard to picture such a level of market intervention This is uncharted territory."

The energy price cap would "quickly start costing billions" because it would force governments to continually subsidise the difference between the real market price and the artificially capped price, another expert said. 

"If you are successful and prices are low and you still get gas, consumers will increase their demand: low price means high demand. Especially now that winter is coming," said Bram Claeys, a senior advisor at the Regulatory Assistance Project. 

 

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