Ontario Power Generation's Commitment to Small Modular Reactors


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OPG Small Modular Reactors advance clean energy with advanced nuclear, baseload power, renewables integration, and grid reliability; factory built, scalable, and cost effective to support Ontario energy security and net zero goals.

 

Key Points

Factory built nuclear units delivering reliable, low carbon power to support Ontario's grid, renewables, climate goals.

✅ Factory built modules cut costs and shorten schedules

✅ Provides baseload power to balance wind and solar

✅ Enhances grid reliability with advanced safety and waste reduction

 

Ontario Power Generation (OPG) is at the forefront of Canada’s energy transformation, demonstrating a robust commitment to sustainable energy solutions. One of the most promising avenues under exploration is the development of Small Modular Reactors (SMRs), as OPG broke ground on the first SMR at Darlington to launch this next phase. These innovative technologies represent a significant leap forward in the quest for reliable, clean, and cost-effective energy generation, aligning with Ontario’s ambitious climate goals and energy security needs.

Understanding Small Modular Reactors

Small Modular Reactors are advanced nuclear power plants that are designed to be smaller in size and capacity compared to traditional nuclear reactors. Typically generating up to 300 megawatts of electricity, SMRs can be constructed in factories and transported to their installation sites, offering flexibility and scalability that larger reactors do not provide. This modular approach reduces construction time and costs, making them an appealing option for meeting energy demands.

One of the key advantages of SMRs is their ability to provide baseload power—energy that is consistently available—while simultaneously supporting intermittent renewable sources like wind and solar. As Ontario continues to increase its reliance on renewables, SMRs could play a crucial role in ensuring that the energy supply remains stable and secure.

OPG’s Initiative

In its commitment to advancing clean energy technologies, OPG has been a strong advocate for the adoption of SMRs. The province of Ontario has announced plans to develop three additional small modular reactors, part of its plans for four Darlington SMRs that would further enhance the region’s energy portfolio. This initiative aligns with both provincial and federal climate objectives, and reflects a collaborative provincial push on nuclear innovation to accelerate clean energy.

The deployment of SMRs in Ontario is particularly strategic, given the province’s existing nuclear infrastructure, including the continued operation of Pickering NGS that supports grid reliability. OPG operates a significant portion of Ontario’s nuclear fleet, and leveraging this existing expertise can facilitate the integration of SMRs into the energy mix. By building on established operational frameworks, OPG can ensure that new reactors are deployed safely and efficiently.

Economic and Environmental Benefits

The introduction of SMRs is expected to bring substantial economic benefits to Ontario. The construction and operation of these reactors will create jobs, including work associated with the Pickering B refurbishment across the province, stimulate local economies, and foster innovation in nuclear technology. Additionally, SMRs have the potential to attract investment from both domestic and international stakeholders, positioning Ontario as a leader in advanced nuclear technology.

From an environmental perspective, SMRs are designed with enhanced safety features and lower waste production compared to traditional reactors, complementing life-extension measures at Pickering that bolster system reliability. They can significantly contribute to Ontario’s goal of achieving net-zero emissions by 2050. By providing a reliable source of clean energy, SMRs will help mitigate the impacts of climate change while supporting the province's transition to a sustainable energy future.

Community Engagement and Collaboration

Recognizing the importance of community acceptance and stakeholder engagement, OPG is committed to an open dialogue with local communities and Indigenous groups. This collaboration is essential to addressing concerns and ensuring that the deployment of SMRs is aligned with the values and priorities of the residents of Ontario. By fostering a transparent process, OPG aims to build trust and support for this innovative energy solution.

Moreover, the development of SMRs will involve partnerships with various stakeholders, including government agencies, research institutions, and private industry, such as the OPG-TVA partnership to advance new nuclear technology. These collaborations will not only enhance the technical aspects of SMR deployment but also ensure that Ontario can capitalize on shared expertise and resources.

Looking Ahead

As Ontario Power Generation moves forward with plans for three additional Small Modular Reactors, the province stands at a critical juncture in its energy evolution. The integration of SMRs into Ontario’s energy landscape promises a sustainable, reliable, and economically viable solution to meet growing energy demands while addressing climate change challenges.

With the support of government initiatives, community collaboration, and continued innovation in nuclear technology, Ontario is poised to become a leader in the advancement of Small Modular Reactors. The successful implementation of these projects could serve as a model for other jurisdictions seeking to transition to cleaner energy sources, highlighting the role of nuclear power in a balanced and sustainable energy future.

In conclusion, OPG's commitment to developing Small Modular Reactors not only reinforces Ontario’s energy security but also demonstrates a proactive approach to addressing the pressing challenges of climate change and environmental sustainability. The future of energy in Ontario looks promising, driven by innovation and a commitment to clean energy solutions.

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Nord Stream: Norway and Denmark tighten energy infrastructure security after gas pipeline 'attack'

Nord Stream Pipeline Sabotage triggers Baltic Sea gas leaks as Norway and Denmark tighten energy infrastructure security, offshore surveillance, and exclusion zones, after drone sightings near platforms and explosions reported by experts.

 

Key Points

An alleged attack causing Baltic gas leaks and heightened energy security measures in Norway and Denmark.

✅ Norway boosts offshore and onshore site security

✅ Denmark enforces 5 nm exclusion zone near leaks

✅ Drones spotted; police probe sabotage and safety breaches

 

Norway and Denmark will increase security and surveillance around their energy infrastructure sites after the alleged sabotage of Russia's Nord Stream gas pipeline in the Baltic Sea, as the EU pursues a plan to dump Russian energy to safeguard supplies. 

Major leaks struck two underwater natural gas pipelines running from Russia to Germany, which has moved to a 200 billion-euro energy shield amid surging prices, with experts reporting that explosions rattled the Baltic Sea beforehand.

Norway -- an oil-rich nation and Europe's biggest supplier of gas -- will strengthen security at its land and offshore installations, even as it weighs curbing electricity exports to avoid shortages, the country's energy minister said.

The Scandinavian country's Petroleum Safety Authority also urged vigilance on Monday after unidentified drones were seen flying near Norway's offshore oil and gas platforms.

"The PSA has received a number of warnings/notifications from operator companies on the Norwegian Continental Shelf concerning the observation of unidentified drones/aircraft close to offshore facilities" the agency said in a statement.

"Cases where drones have infringed the safety zone around facilities are now being investigated by the Norwegian police."

Meanwhile Denmark will increase security across its energy sector after the Nord Stream incident, as wider market strains, including Germany's struggling local utilities, ripple across Europe, a spokesperson for gas transmission operator Energinet told Upstream.

The Danish Maritime Agency has also imposed an exclusion zone for five nautical miles around the leaks, warning ships of a danger they could lose buoyancy, and stating there is a risk of the escaping gas igniting "above the water and in the air," even as Europe weighs emergency electricity measures to limit prices.

Denmark's defence minister said there was no cause for security concerns in the Baltic Sea region.

"Russia has a significant military presence in the Baltic Sea region and we expect them to continue their sabre-rattling," Morten Bodskov said in a statement.

Video taken by a Danish military plane on Tuesday afternoon showed the extent of one of gas pipeline leaks, with the surface of the Baltic bubbling up as gas escapes, highlighting Europe's energy crisis for global audiences:

Meanwhile police in Sweden have opened a criminal investigation into "gross sabotage" of the Nord Stream 1 and Nord Stream 2 pipelines, and Sweden's crisis management unit was activated to monitor the situation. The unit brings together representatives from different government agencies. 

Swedish Foreign Minister Ann Linde had a call with her Danish counterpart Jeppe Kofod on Tuesday evening, and the pair also spoke with Norwegian Foreign Minister Anniken Huitfeldt on Wednesday, as the bloc debates gas price cap strategies to address the crisis, with Kofod saying there should be a "clear and unambiguous EU statement about the explosions in the Baltic Sea." 

"Focus now on uncovering exactly what has happened - and why. Any sabotage against European energy infrastructure will be met with a robust and coordinated response," said Kofod. 

 

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To Limit Climate Change, Scientists Try To Improve Solar And Wind Power

Wisconsin Solar and Wind Energy advances as rooftop solar, utility-scale farms, and NREL perovskite solar cells improve efficiency; wind turbines gain via wake modeling, yaw control, and grid-scale battery storage to cut carbon emissions.

 

Key Points

It is Wisconsin's growth in rooftop and utility-scale solar plus optimized wind turbines to cut carbon emissions.

✅ Perovskite solar cells promise higher efficiency, need longevity

✅ Wake modeling and yaw control optimize wind farm output

✅ Batteries and bids can offset reliance on natural gas

 

Solar energy in Wisconsin continued to grow in 2019, as more homeowners had rooftop panels installed and big utilities started building multi-panel solar farms.

Wind power is increasing more slowly in the state. However, renewable power developers are again coming forward with proposals for multiple turbines.

Nationally, researchers are working on ways to get even more energy from solar and wind, with the U.S. moving toward 30% electricity from wind and solar in coming years, as states like Wisconsin aim to reduce their carbon emissions over the next few decades.

One reason solar energy is growing in Wisconsin is due to the silicon panels becoming more efficient. But scientists haven't finished trying to improve panel efficiency. The National Renewable Energy Laboratory (NREL) in Golden, Col., is one of the research facilities experimenting with brushing a lab-made solution called perovskite onto a portion of a panel called a solar cell.

In a demonstration video supplied by NREL, senior scientist Maikel van Hest said that, in the lab anyway, the painted cell and its electrical connections called contacts, produce more energy:

"There you go! That's how you paint a perovskite solar cell. And you imagine that ultimately what you could do is you could see a company come in with a truck in front of your house and they would basically paint on the contacts first, dry those, and paint the perovskite over it. That you would have photovoltaic cells on the side of your house, put protective coating on it, and we're done."

Another NREL scientist, David Moore, says the new solar cells could be made faster and help meet what's expected to be a growing global demand for energy. However, Moore says the problem has been lack of stability.

"A solar cell with perovskites will last a couple years. We need to get that to 20-25 years, and that's the big forefront in perovskite research, is getting them to last longer," Moore told members of the Society of Environmental Journalists during a recent tour of NREL.

Another part of improving renewable energy is making wind turbines more productive. At NREL's Insight Center, a large screen showing energy model simulations dominates an otherwise darkened room. Visualization scientist Nicholas Brunhart-Lupo points to a display on the screen that shows how spinning turbines at one edge of a wind farm can cause an airflow called a wake, which curtails the power generation of other turbines.

"So what we find in these simulations is these four turbines back here, since they have this used air, this low-velocity wake being blown to their faces, they're only generating about 20% of the energy they should be generating," he explains.

Brunhart-Lupo says the simulations can help wind farm developers with placement of turbines as well as adjustments to the rotor and blades called the yaw system.

Continued progress with renewables may be vital to any state or national pledges to reduce use of fossil fuels and carbon emissions linked to climate change, including Biden's solar expansion plan as a potential pathway. Some scientists say to limit a rise in global temperature, there must be a big decline in emissions by 2050.

But even utilities that say they support use of more renewables, as why the grid isn't 100% renewable yet makes clear, aren't ready to let go of some energy sources. Jonathan Adelman of Xcel Energy, which serves part of Western Wisconsin, says Xcel is on track to close its last two coal-fired power plants in Minnesota. But he says the company will need more natural gas plants, even though they wouldn't run as often.

"It's not perfect. And it is in conflict with our ultimate goal of being carbon-free," says Adelman. "But if we want to facilitate the transition, we still need resources to help that happen."

Some in the solar industry would like utilities that say they need more natural gas plants to put out competitive bids to see what else might be possible. Solar advocates also note that in some states, energy regulators still favor the utilities.

Meanwhile, solar slowly marches ahead, including here in southeastern Wisconsin, as Germany's solar power boost underscores global momentum.

On the roof of a ranch-style home in River Hills, a work crew from the major solar firm Sunrun recently installed mounting brackets for solar panels.

Sunrun Public Policy Director Amy Heart says she supports research into more efficient renewables. But she says another innovation may have to come in the way regulators think.

"Instead of allowing and thinking about from the perspective of the utility builds the power plant, they replace one plant with another one, they invest in the infrastructure; is really thinking about how can these distributed solutions like rooftop solar, peer-to-peer energy sharing, and especially rooftop solar paired with batteries how can that actually reduce some of what the utility needs?

Large-scale energy storage batteries are already being used in some limited cases. But energy researchers continue to make improvements to them, too, with cheap solar batteries beginning to make widespread adoption more feasible as scientists race to reduce the expected additional harm of climate change.

 

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Niagara Falls Powerhouse Gets a Billion-Dollar Upgrade for the 21st Century

Sir Adam Beck I refurbishment boosts hydropower capacity in Niagara, upgrading turbines, generators, and controls for Ontario Power Generation. The billion-dollar project enhances grid reliability, clean energy output, and preserves heritage architecture.

 

Key Points

An OPG upgrade of the historic Niagara plant to replace equipment, add 150 MW, and extend clean power life.

✅ Adds at least 150 MW to Ontario's clean energy supply

✅ Replaces turbines, generators, transformers, and controls

✅ Creates hundreds of skilled construction and engineering jobs

 

Ontario's iconic Sir Adam Beck hydroelectric generating station in Niagara is set to undergo a massive, billion-dollar refurbishment. The project will significantly boost the power station's capacity and extend its lifespan, with efforts similar to revitalizing older dams seen across North America, ensuring a reliable supply of clean energy for decades to come.


A Century of Power Generation

The Sir Adam Beck generating stations have played a pivotal role in Ontario's power grid for over a century. The first generating station, Sir Adam Beck I, went online in 1922, followed by Sir Adam Beck II in 1954. A third station, the Sir Adam Beck Pump Generating Station, was added in 1957, highlighting the role of pumped storage in Ontario for grid flexibility, Collectively, they form one of the largest hydroelectric complexes in the world, harnessing the power of the Niagara River.


Preparing for Increased Demand

The planned refurbishment of Sir Adam Beck I is part of Ontario Power Generation's broader strategy, which includes the life extension at Pickering NGS among other initiatives, to meet the growing energy demands of the province. With the population expanding and a shift towards electrification, Ontario will need to increase its power generation capacity while also focusing on sustainable and clean sources of energy.


Billions to Secure Sustainable Energy

The project to upgrade Sir Adam Beck I carries a hefty price tag of over a billion dollars but is considered a vital investment in Ontario's energy infrastructure, and recent OPG financial results underscore the utility's capacity to manage long-term capital plans. The refurbishment will see the replacement of aging turbines, generators, and transformers, and a significant upgrade to the station's control systems. Following the refurbishment, the output of Sir Adam Beck I is expected to increase by at least 150 megawatts – enough to power thousands of homes and businesses.


Creating Green Jobs

In addition to securing the province's energy future, the upgrade presents significant economic benefits to the Niagara region. The project will create hundreds of well-paying construction and engineering jobs, similar to employment from the continued operation of Pickering Station across Ontario, during the several years it will take to implement the upgrades.


Commitment to Hydropower

Ontario Power Generation (OPG) has long touted the benefits of hydropower as a reliable, renewable, and affordable source of energy, even as an analysis of rising grid emissions underscores the importance of clean generation to meet demand. The Sir Adam Beck complex is a shining example and represents a significant asset in the fight against climate change while providing reliable power to Ontario's businesses and residents.


Balancing Energy Needs with Heritage Preservation

The refurbishment will also carefully integrate modern design with the station's heritage elements, paralleling decisions such as the refurbishment of Pickering B that weigh system needs and public trust. Sir Adam Beck I is a designated historic site, and the project aims to preserve the station's architectural significance while enhancing its energy generation capabilities.

 

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China aims to reduce coal power production

China Coal-Fired Power Consolidation targets capacity cuts through mergers, SASAC-led restructuring, debt reduction, asset optimization, and retiring inefficient plants across state-owned utilities to improve efficiency, stabilize liabilities, and align with energy transition policies.

 

Key Points

A SASAC-driven plan merging utility assets to cut coal capacity, reduce debt, and retire outdated, loss-making plants.

✅ Merge five central utilities' coal assets to streamline operations

✅ Target 25-33% capacity cuts and >50% loss reduction by 2021

✅ Prioritize debt-ridden regions: Gansu, Shaanxi, Xinjiang, Qinghai, Ningxia

 

China plans to slash coal-fired power capacity at its five biggest utilities by as much as a third in two years by merging their assets, amid broader power-sector strains that reverberate globally, according to a document seen by Reuters and four sources with knowledge of the matter.

The move to shed older and less-efficient capacity is being driven by pressure to cut heavy debt levels at the utilities. China, is, however, building more coal-fired power plants and approving dozens of new mines to bolster a slowing economy, even as recent power cuts highlight grid imbalances.

The five utilities, which are controlled by the central government, accounted for around 44% of China’s total coal-fired power capacity at the end of 2018, a share likely to be tested by rising electrification goals, with electricity to meet 60% by 2060 according to industry forecasts.

“(The utilities) will strive to reduce coal-fired power capacity by one quarter to one third ...cutting total losses by more than 50% from the current level to achieve a significant decline in debt-to-asset ratios by the end of 2021,” the document said.

The plan, initiated and overseen by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), follows heavy losses at some of the utilities, amid a pandemic-era demand drop that hit industrial consumption.

Some of their coal-fired power stations have filed for bankruptcy in recent years as Beijing promotes the use of renewable energy and advances its nuclear program while opening up the state-controlled power market.

The SASAC did not immediately respond to a fax seeking comment and the sources declined to be identified as they were not authorised to speak to the media.

The utilities - China Huaneng Group Co, China Datang Corp, China Huadian Corp, State Power Investment Corp and China Energy Group - did not respond to faxes requesting comment.

Together, they had 474 coal-fired power plants with combined power generation capacity of 520 gigawatts (GW) at the end of last year.

Their coal-fired power assets came to 1.5 trillion yuan ($213 billion) while total coal-fired power liabilities were 1.1 trillion yuan, the document said.

The document was seen by two people at two of the utilities and was also verified by a source at SASAC and a government researcher.

It was not clear when the document was published but it said the merging and elimination of outdated capacity would start from 2019 and be achieved within three years, aiming to improve the efficiency and operations at the companies, reflecting a broader electricity sector mystery that policymakers are trying to resolve.

Utilities with debt-ridden operations in the northwestern regions of Gansu, Shaanxi, Xinjiang, Qinghai and Ningxia would be the first to carry out the plan, it said, even as India ration coal supplies during demand surges.

The government researcher said the SASAC has been researching possible consolidation in the coal-fired power sector since 2017, but added: “It’s easier said than done.”

“No one is willing to hand in their high quality assets and there is no point in merging the bad assets,” the government researcher said.

 

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Biggest in Canada: Bruce Power doubles PPE donation

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

 

Key Points

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

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

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

✅ Funding testing research and supporting regional food banks

 

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

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

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

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

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

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

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

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

 

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Pennsylvania residents could see electricity prices rise as much as 50 percent this winter

Pennsylvania Electric Rate Increases hit Peco, PPL, and Pike County, driven by natural gas costs and wholesale power markets; default rate changes, price to compare shifts, and time-of-use plans affect residential bills.

 

Key Points

Electric default rates are rising across Pennsylvania as natural gas costs climb, affecting Peco, PPL, and Pike customers.

✅ PPL, Peco, and Pike raising default rates Dec. 1

✅ Natural gas costs driving wholesale power prices

✅ Consider standard offer, TOU rates, and efficiency

 

Energy costs for electric customers are going up by as much as 50% across Pennsylvania next week, the latest manifestation of US electricity price increases impacting gasoline, heating oil, propane, and natural gas.

Eight Pennsylvania electric utilities are set to increase their energy prices on Dec. 1, reflecting the higher cost to produce electricity. Peco Energy, which serves Philadelphia and its suburbs, will boost its energy charge by 6.4% on Dec. 1, from 6.6 cents per kilowatt hour to about 7 cents per kWh. Energy charges account for about half of a residential bill.

PPL Electric Utilities, the Allentown company that serves a large swath of Pennsylvania including parts of Bucks, Montgomery, and Chester Counties, will impose a 26% increase on residential energy costs on Dec. 1, from about 7.5 cents per kWh to 9.5 cents per kWh. That’s an increase of $40 a month for an electric heating customer who uses 2,000 kWh a month.

Pike County Light & Power, which serves about 4,800 customers in Northeast Pennsylvania, will increase energy charges by 50%, according to the Pennsylvania Public Utility Commission.

“All electric distribution companies face the same market forces as PPL Electric Utilities,” PPL said in a statement. Each Pennsylvania utility follows a different PUC-regulated plan for procuring energy from power generators, and those forces can include rising nuclear power costs in some regions, which explains why some customers are absorbing the hit sooner rather than later, it said.

There are ways customers can mitigate the impact. Utilities offer a host of programs and grants to support low-income customers, and some states are exploring income-based fixed charges to address affordability, and they encourage anyone struggling to pay their bills to call the utility for help. Customers can also control their costs by conserving energy. It may be time to put on a sweater and weatherize the house.

Peco recently introduced time-of-use rates — as seen when Ontario ended fixed pricing — that include steep discounts for customers who can shift electric usage to late night hours — that’s you, electric vehicle owners.

There’s also a clever opportunity available for many Pennsylvania customers called the “standard offer” that might save you some real money, but you need to act before the new charges take effect on Dec. 1 to lock in the best rates.

Why are the price hikes happening?
But first, how did we get here?

Energy charges are rising for a simple reason: Fuel prices for power generators are increasing, and that’s driven mostly by natural gas. It’s pushing up electricity prices in wholesale power markets and has lifted typical residential bills in recent years.

“It’s all market forces right now,” said Nils Hagen-Frederiksen, PUC spokesperson. Energy charges are strictly a pass-through cost for utilities. Utilities aren’t allowed to mark them up.

The increase in utility energy charges does not affect customers who buy their energy from competitive power suppliers in deregulated electricity markets. About 27% of Pennsylvania’s 5.9 million electric customers who shop for electricity from third-party suppliers either pay fixed rates, whose price remains stable, or are on a variable-rate plan tied to market prices. The variable-rate electric bills have probably already increased to reflect the higher cost of generating power.

Most New Jersey electric customers are shielded for now from rising energy costs. New Jersey sets annual energy prices for customers who don’t shop for power. Those rates go into effect on June 1 and stay in place for 12 months. The current energy market fluctuations will be reflected in new rates that take effect next summer, said Lauren Ugorji, a spokesperson for Public Service Electric & Gas Co., New Jersey’s largest utility.

For each utility, its own plan
Pennsylvania has a different system for setting utility energy charges, which are also known as the “default rate,” because that’s the price a customer gets by default if they don’t shop for power. The default rate is also the same thing as the “price to compare,” a term the PUC has adopted so consumers can make an apples-to-apples comparison between a utility’s energy charge and the price offered by a competitive supplier.

Each of the state’s 11 PUC-regulated electric utilities prepares its own “default service plan,” that governs the method by which they procure power on wholesale markets. Electric distribution companies like Peco are required to buy the lowest priced power. They typically buy power in blind auctions conducted by independent agents, so that there’s no favoritism for affiliated power generators

Some utilities adjust charges quarterly, and others do it semi-annually. “This means that each [utility’s] resulting price to compare will vary as the market changes, some taking longer to reflect price changes, both up and down,” PPL said in a statement. PPL conducted its semi-annual auction in October, when energy prices were rising sharply.

Most utilities buy power from suppliers under contracts of varying durations, both long-term and short-term. The contracts are staggered so market price fluctuations are smoothed out. One utility, Pike County Power & Light, buys all its power on the spot market, which explains why its energy charge will surge by 50% on Dec. 1. Pike County’s energy charge will also be quicker to decline when wholesale prices subside, as they are expected to next year.

Peco adjusts its energy charge quarterly, but it conducts power auctions semi-annually. It buys about 40% of its power in one-year contracts, and 60% in two-year contracts, and does not buy any power on spot markets, said Richard G. Webster Jr., Peco’s vice president of regulatory policy and strategy.

“At any given time, we’re replacing about a third of our supplied portfolio,” he said.

The utility’s energy charge affects only part of the monthly bill. For a Peco residential electric customer who uses 700 kWh per month, the Dec. 1 energy charge increase will boost monthly bills by $2.94 per month, or 2.9%. For an electric heating customer who uses about 2,000 kWh per month, the change will boost bills $8.40 a month, or about 3.5%, said Greg Smore, a Peco spokesperson.
 

 

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