Ontario, Quebec cosy up to one another

By rabble.ca


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Premiers Jean Charest and Dalton McGuinty emerged from an historic Quebec-Ontario joint cabinet meeting in Quebec City to announce a regional climate agreement, and other projects for joint co-operation.

As Jack Layton was quick to point out, the two governments moved to fill the leadership vacuum created when the Harper government decided to break Canada's international commitments on environmental protection, and adopt a "go slow" approach to global warming.

Notably, Ontario and Quebec adopted the "cap-and-trade" approach to reducing green house gas emissions, which has long been promoted by the federal NDP leader. The Quebec-Ontario decision to move ahead on cap-and-trade was taken as the U.S. Senate began its first debate on how that country should move to adopt this mechanism, which is already in place in Europe.

Central Canada has formed a new political alliance. On the surface the reasons are straightforward. Quebec and Ontario face similar problems and can work together on solutions. Ontario wants to withdraw its coal fired electricity facilities from production because they produce high levels of green house gases. At the joint press conference Quebec announced it wants Ontario to have access to its clean hydro-electricity, and the two governments agreed to move to establish the necessary power grid. Charest talked about selling to the neighbours as being good politics.

Federal government Environment Minister, John Baird, immediately denounced the Charest-McGuinty joint cabinet meeting, and its follow-up joint press conference as a photo-op. The good neighbour approach upsets the federal Conservative government, which has been following a divide and conquer political strategy in its pursuit of a majority government.

The Conservatives have chosen to attack the McGuinty Liberal government in the hopes the electorate will blame the provincial government for bad economic times in Ontario, while courting the Charest Liberals who have been following the neo-conservative market friendly policies favoured by the Harper government.

However McGuinty, despite constant attacks by the former provincial Conservatives, like Baird who sit on the Harper front bench, was able to win re-election, and is growing in political strength. Charest and his Liberal party, with a minority government, has been forced to abandon its ideological approach, and is experiencing a surprising popularity as a result. Meanwhile Charest's still very neo-conservative cousin, and rival for Harper's attention, Mario Dumont and his Action démocratique du Québec, is rapidly losing support.

Charest wants to beat the Parti Québécois, and judges that being able to play the good neighbour card with Ontario takes him where the sovereignists cannot go. For McGuinty, an alliance with Quebec on climate change puts Harper on the defensive on an issue where he is most out of step with Canadians.

The Canadian manufacturing heartland of Ontario and Quebec is in the throes of a serious economic slump: factories are being shut, and workers laid off. Even if it costs real money, both provincial governments recognize something must be done to address global warming. Both Charest and McGuinty recognize the need for an industrial strategy, and financial commitments from Ottawa, even if the Harper government refuses to go beyond tax cuts.

Confidence expressed by the federal Conservatives in the free trade agreement with the U.S. (which is 20 years old) as securing Canada's future sounds increasingly false as the slumping U.S. dollar creates economic reverses in Canada. Passport requirements for U.S. nationals returning from Canada, imposed by the Bush administration drastically slow down cross-border tourism, an important source of revenue for small business and the large central Canadian hospitality industry.

While the federal finance minister denies Canada faces a recession, it is rising prices for oil, gas and agricultural products that is driving Canadian growth. In the meantime, Ontario and Quebec have two-thirds of the Canadian population, no oil or gas production, and in northern regions industry is hurt badly because of falling prices for forestry products.

The divide and conquer strategy was used successfully by Brian Mulroney in the 1988 free trade election campaign. He attacked Ontario's Liberal government for wanting to deny the other provinces the prosperity the Auto Pact had brought to it. By aligning himself with Quebec, and reaching out to other jurisdictions ready to act on climate change, the McGuinty government has mounted a strong defence to the Harper version of divide and conquer, which is predicated on isolating Ontario, particularly urban Ontario.

While it is true the oil and gas producing provinces benefit from the very price hikes that are hurting Ontario and Quebec, it is false to assume that one group of Canadians gains precisely what the other loses. On global warming Harper has asked why Canada should move faster than other countries. Charest and McGuinty have responded. This is an issue that affects everyone, oil producer or not, and other Canadian governments need to take leadership, when the federal government is not willing to act.

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Washington AG Leads Legal Challenge Against Trump’s Energy Emergency

Washington-Led Lawsuit Against Energy Emergency challenges President Trump's executive order, citing state rights, environmental reviews, permitting, and federal overreach; coalition argues record energy output undermines emergency claims in Seattle federal court.

 

Key Points

Multistate suit to void Trump's energy emergency, alleging federal overreach and weakened environmental safeguards.

✅ Challenges executive order's legal basis and scope

✅ Claims expedited permitting skirts environmental reviews

✅ Seeks to halt emergency permits for non-emergencies

 

In a significant legal move, Washington State Attorney General Nick Brown has spearheaded a coalition of 15 states in filing a lawsuit against President Donald Trump's executive order declaring a national energy emergency. The lawsuit, filed in federal court in Seattle on May 9, 2025, challenges the legality of the emergency declaration, which aims to expedite permitting processes for fossil fuel projects in pursuit of an energy dominance vision by bypassing key environmental reviews.

Background of the Energy Emergency Declaration

President Trump's executive order, issued on January 20, 2025, asserts that the United States faces an inadequate and unreliable energy grid, particularly affecting the Northeast and West Coast regions. The order directs federal agencies, including the Army Corps of Engineers and the Department of the Interior, to utilize "any lawful emergency authorities" to facilitate the development of domestic energy resources, with a focus on oil, gas, and coal projects. This includes expediting reviews under the Clean Water Act, Endangered Species Act, the National Environmental Policy Act, and the National Historic Preservation Act, potentially reducing public input and environmental oversight.

Legal Grounds for the Lawsuit

The coalition of states, led by Washington and California, argues that the emergency declaration is an overreach of presidential authority, echoing disputes over the Affordable Clean Energy rule in federal courts. They contend that U.S. energy production is already at record levels, and the declaration undermines state rights and environmental protections. The lawsuit seeks to have the executive order declared unlawful and to halt the issuance of emergency permits for non-emergency projects. 

Implications for Environmental Protections

Critics of the energy emergency declaration express concern that it could lead to significant environmental degradation. By expediting permitting processes, including geothermal permitting, and reducing public participation, the order may allow projects to proceed without adequate consideration of their impact on water quality, wildlife habitats, and cultural resources. Environmental advocates argue that such actions could set a dangerous precedent, enabling future administrations to bypass essential environmental safeguards under the guise of national emergencies, even as the EPA advances new pollution limits for coal and gas plants to address the climate crisis.

Political and Legal Reactions

The Trump administration defends the executive order, asserting that the president has the authority to declare national emergencies and that the energy emergency is necessary to address perceived deficiencies in the nation's energy infrastructure and potential electricity pricing changes debated by industry groups. However, legal experts suggest that the broad application of emergency powers in this context may face challenges in court. The outcome of the lawsuit could have significant implications for the balance of power between state and federal authorities, as well as the future of environmental regulations in the United States.

The legal challenge led by Washington State Attorney General Nick Brown represents a critical juncture in the ongoing debate over energy policy and environmental protection. As the lawsuit progresses through the courts, it will likely serve as a bellwether for future conflicts between state and federal governments regarding the scope of executive authority and the preservation of environmental standards, amid ongoing efforts to expand uranium and nuclear energy programs nationwide. The outcome may set a precedent for how national emergencies are declared and managed, particularly concerning their impact on state governance and environmental laws.

 

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Electric Cooperatives, The Lone Shining Utility Star Of The Texas 2021 Winter Storm

Texas Electric Cooperatives outperformed during Winter Storm Uri, with higher customer satisfaction, equitable rolling blackouts, and stronger grid reliability compared to deregulated markets, according to ERCOT-area survey data of regulated utilities and commercial providers.

 

Key Points

Member-owned utilities in Texas delivering power, noted for reliability and fair outages during Winter Storm Uri.

✅ Member-owned, regulated utilities serving local communities

✅ Rated higher for blackout management and communication

✅ Operate outside deregulated markets; align incentives with users

 

Winter Storm Uri began to hit parts of Texas on February 13, 2021 and its onslaught left close to 4.5 million Texas homes and businesses without power, and many faced power and water disruptions at its peak. By some accounts, the preliminary number of deaths attributed to the storm is nearly 200, and the economic toll for the Lone Star State is estimated to be as high as $295 billion. 

The more than two-thirds of Texans who lost power during this devastating storm were notably more negative than positive in their evaluation of the performance of their local electric utility, mirrored by a rise in electricity complaints statewide, with one exception. That exception are the members of the more than 60 electric cooperatives operating within the Texas Interconnection electrical grid, which, in sharp contrast to the customers of the commercial utilities that provide power to the majority of Texans, gave their local utility a positive evaluation related to its performance during the storm.

In order to study Winter Storm Uri’s impact on Texas, the Hobby School of Public Affairs at the University of Houston conducted an online survey during the first half of March of residents 18 and older who live in the 213 counties (91.5% of the state population) served by the Texas power grid, which is managed by the Electric Reliability Council of Texas (ERCOT). 

Three-quarters of the survey population (75%) live in areas with a deregulated utility market, where a specified transmission and delivery utility by region is responsible for delivering the electricity (purchased from one of a myriad of private companies by the consumer) to homes and businesses. The four main utility providers are Oncor, CenterPoint CNP -2.2%, American Electric Power (AEP) North, and American Electric Power (AEP) Central. 

The other 25% of the survey population live in areas with regulated markets, where a single company is responsible for both delivering the electricity to homes and businesses and serves as the only source from which electricity is purchased. Municipal-owned and operated utilities (e.g., Austin Energy, Bryan Texas Utilities, Burnet Electric Department, Denton Municipal Electric, New Braunfels Utilities, San Antonio’s CPS Energy CMS -2.1%) serve 73% of the regulated market. Electric cooperatives (e.g., Bluebonnet Electric Cooperative, Central Texas Electric Cooperative, Guadalupe Valley Cooperative, Lamb County Electric Cooperative, Pedernales Electricity Cooperative, Wood County Electric Cooperative) serve one-fifth of this market (21%), with private companies accounting for 6% of the regulated market.

The overall distribution of the survey population by electric utility providers is: Oncor (38%), CenterPoint (21%), municipal-owned utilities (18%), AEP Central & AEP North combined (12%), electric cooperatives (6%), other providers in the deregulated market (4%) and other providers in the regulated market (1%). 

There were no noteworthy differences among the 31% of Texans who did not lose power during the winter storm in regard to their evaluations of their local electricity provider or their belief that the power cuts in their locale were carried out in an equitable manner.  

However, among the 69% of Texans who lost power, those served by electric cooperatives in the regulated market and those served by private electric utilities in the deregulated market differed notably regarding their evaluation of the performance of their local electric utility, both in regard to their management of the rolling blackouts, amid debates over market reforms to avoid blackouts, and to their overall performance during the winter storm. Those Texans who lost power and are served by electric cooperatives in a regulated market had a significantly more positive evaluation of the performance of their local electric utility than did those Texans who lost power and are served by a private company in a deregulated electricity market. 

For example, only 24% of Texans served by electric cooperatives had a negative evaluation of their local electric utility’s overall performance during the winter storm, compared to 55%, 56% and 61% of those served by AEP, Oncor and CenterPoint respectively. A slightly smaller proportion of Texans served by electric cooperatives (22%) had a negative evaluation of their local electric utility’s performance managing the rolling blackouts during the winter storm, compared to 58%, 61% and 71% of Texans served by Oncor, AEP and CenterPoint, respectively.

Texans served by electric cooperatives in regulated markets were more likely to agree that the power cuts in their local area were carried out in an equitable manner compared to Texans served by commercial electricity utilities in deregulated markets. More than half (52%) of those served by an electric cooperative agreed that power cuts during the winter storm in their area were carried out in an equitable manner, compared to only 26%, 23% and 23% of those served by Oncor, AEP and CenterPoint respectively

The survey data did not allow us to provide a conclusive explanation as to why the performance during the winter storm by electric cooperatives (and to a much lesser extent municipal utilities) in the regulated markets was viewed more favorably by their customers than was the performance of the private companies in the deregulated markets viewed by their customers. Yet here are three, far from exhaustive, possible explanations.

First, electric cooperatives might have performed better (based on objective empirical metrics) during the winter storm, perhaps because they are more committed to their customers, who are effectively their bosses. .  

Second, members of electric cooperatives may believe their electric utility prioritizes their interests more than do customers of commercial electric utilities and therefore, even if equal empirical performance were the case, are more likely to rate their electric utility in a positive manner than are customers of commercial utilities.  

Third, regulated electric utilities where a single entity is responsible for the commercialization, transmission and distribution of electricity might be better able to respond to the type of challenges presented by the February 2021 winter storm than are deregulated electric utilities where one entity is responsible for commercialization and another is responsible for transmission and distribution, aligning with calls to improve electricity reliability across Texas.

Other explanations for these findings may exist, which in addition to the three posited above, await future empirical verification via new and more comprehensive studies designed specifically to study electric cooperatives, large commercial utilities, and the incentives that these entities face under the regulatory system governing production, commercialization and distribution of electricity, including rulings that some plants are exempt from providing electricity in emergencies under state law. 

Still, opinion about electricity providers during Winter Storm Uri is clear: Texans served by regulated electricity markets, especially by electric cooperatives, were much more satisfied with their providers’ performance than were those in deregulated markets. Throughout its history, Texas has staunchly supported the free market. Could Winter Storm Uri change this propensity, or will attempts to regulate electricity lessen as the memories of the storm’s havoc fades? With a hotter summer predicted to be on the horizon in 2021 and growing awareness of severe heat blackout risks, we may soon get an answer.   

 

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Global CO2 emissions 'flatlined' in 2019, says IEA

2019 Global CO2 Emissions stayed flat, IEA reports, as renewable energy growth, wind and solar deployment, nuclear output, and coal-to-gas switching in advanced economies offset increases elsewhere, supporting climate goals and clean energy transitions.

 

Key Points

33 gigatonnes, unchanged YoY, as advanced economies cut power emissions via renewables, gas, and nuclear.

✅ IEA reports emissions flat at 33 Gt despite 2.9% GDP growth

✅ Advanced economies cut power-sector CO2 via wind, solar, gas

✅ Nuclear restarts and mild weather aided reductions

 

Despite widespread expectations of another increase, global energy-related CO2 emissions stopped growing in 2019, according to International Energy Agency (IEA) data released today. After two years of growth, global emissions were unchanged at 33 gigatonnes in 2019, a notable marker in the global energy transition narrative even as the world economy expanded by 2.9%.

This was primarily due to declining emissions from electricity generation in advanced economies, thanks to the expanding role of renewable sources (mainly wind and solar across many markets), fuel switching from coal to natural gas, and higher nuclear power generation, the Paris-based organisation says in the report.

"We now need to work hard to make sure that 2019 is remembered as a definitive peak in global emissions, not just another pause in growth," said Fatih Birol, the IEA's executive director. "We have the energy technologies to do this, and we have to make use of them all."

Higher nuclear power generation in advanced economies, particularly in Japan and South Korea, avoided over 50 Mt of CO2 emissions. Other factors included milder weather in several countries, and slower economic growth in some emerging markets. In China, emissions rose but were tempered by slower economic growth and higher output from low-carbon sources of electricity. Renewables continued to expand in China, and 2019 was also the first full year of operation for seven large-scale nuclear reactors in the country.

A significant decrease in emissions in advanced economies in 2019 offset continued growth elsewhere. The USA recorded the largest emissions decline on a country basis, with a fall of 140 million tonnes, or 2.9%. US emissions are now down by almost 1 gigatonne from their peak in 2000. Emissions in the European Union fell by 160 million tonnes, or 5%, in 2019 driven by reductions in the power sector as electricity producers move away from coal in the generation mix. Japan’s emissions fell by 45 million tonnes, or around 4%, the fastest pace of decline since 2009, as output from recently restarted nuclear reactors increased.

Emissions in the rest of the world grew by close to 400 million tonnes in 2019, with almost 80% of the increase coming from countries in Asia where coal-fired power generation continued to rise, and in Australia emissions rose 2% due to electricity and transport. Coal-fired power generation in advanced economies declined by nearly 15%, reflecting a sharp fall in coal-fired electricity across multiple markets, as a result of growth in renewables, coal-to-gas switching, a rise in nuclear power and weaker electricity demand.

The IEA will publish a World Energy Outlook Special Report in June that will map out how to cut global energy-related carbon emissions by one-third by 2030 and put the world on track for longer-term climate goals, a pathway that, in Canada, will require more electricity to hit net-zero. It will also hold an IEA Clean Energy Transitions Summit in Paris on 9 July, bringing together key government ministers, CEOs, investors and other major stakeholders.

Birol will discuss the results published today tomorrow at an IEA Speaker Series event at its headquarters with energy and climate ministers from Poland, which hosted COP24 in Katowice; Spain, which hosted COP25 in Madrid; and the UK, which will host COP26 in Glasgow this year, as greenhouse gas concentrations continue to break records worldwide.

 

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Power outage update: 252,596 remain without electricity Wednesday

North Carolina Power Outages continue after Hurricane Florence, with Wilmington and Eastern Carolina facing flooding, storm damage, and limited access as Duke Energy crews and mutual aid work on restoration across affected counties.

 

Key Points

Outages after Hurricane Florence, with Wilmington and Eastern Carolina hardest hit as crews restore service amid floods.

✅ Over 250,000 outages statewide as of early Wednesday

✅ Wilmington cut off by flooding, hindering utility access

✅ Duke Energy and EMC crews conduct phased restoration

 

Power is slowly being restored to Eastern Carolina residents after Hurricane Florence made landfall near Wilmington on Friday, September 15, a scenario echoed by storm-related outages in Tennessee in recent days.

On Monday, more than half a million people remained without power across the state, a situation comparable to post-typhoon electricity losses in Hong Kong reported elsewhere.

As of Wednesday morning at 1am, the Dept. of Public Safety reports 252,596 total power outages in North Carolina, and utilities continue warning about copper theft hazards during restoration.

More than half of those customers are in Eastern Carolina.

More than 32,000 customers are without power in Carteret County and roughly 21,000 are without power in Onslow County.

In Craven County, roughly 15,000 people remain without power Wednesday morning.

Many of the state's outages are effecting the Wilmington area, where Florence made landfall and widespread flooding is still cutting off the city from outside resources, similar to how a fire-triggered outage in Los Angeles disrupted service regionally.

Heavy rain, strong winds and now flooded roadways have hindered power crews, challenges that utility climate adaptation aims to address while many of them have out-of-state or out-of-town help working to restore power to so many people.

Here's a breakdown of current outages by utility company:

DUKE ENERGY PROGRESS - 

  • 1,350 in Beaufort Co. 
  • 10,706 in Carteret Co. 
  • 2,716 in Pamlico Co. 
  • 7,422 in Craven Co. 
  • 1,687 in Jones Co. 
  • 13,319 in Onslow Co. 
  • 7,452 in Pender Co. 
  • 48,281 in New Hanover Co. 
  • 5,257 in Duplin Co. 
  • 488 in Lenoir Co. 
  • 1,231 in Pitt Co.

 

JONES-ONSLOW EMC - 10,964 total 

  • 7,699 in Onslow Co. 
  • 2,366 in Pender Co. 
  • 816 in Jones Co.

TIDELAND EMC - 

  • 174 in Beaufort Co.
  • 1,521 in Craven Co.
  • 1,693 in Pamlico Co.

CARTERET-CRAVEN ELECTRIC CO OP- 

  • 21,974 in Carteret Co. 
  • 6,553 in Craven Co.
  • 216 in Jones Co.

 

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Solar Plus Battery Storage Cheaper Than Conventional Power in Germany

Germany Solar-Plus-Storage Cost Parity signals grid parity as solar power with battery storage undercuts conventional electricity. Falling LCOE, policy incentives, and economies of scale accelerate the energy transition and decarbonization across Germany's power market.

 

Key Points

The point at which solar power with battery storage is cheaper than conventional grid electricity across Germany.

✅ Lower LCOE from tech advances and economies of scale

✅ EEG incentives and streamlined installs cut total costs

✅ Enhances energy security, reduces fossil fuel dependence

 

Germany, a global leader in renewable energy adoption, with clean energy supplying about half of its electricity in recent years, has reached a significant milestone: the cost of solar power combined with battery storage has now fallen below that of conventional electricity sources. This development marks a transformative shift in the energy landscape, showcasing the increasing affordability and competitiveness of renewable energy technologies and reinforcing Germany’s position as a pioneer in the transition to sustainable energy.

The decline in costs for solar power paired with battery storage represents a breakthrough in Germany’s energy sector, especially amid the recent solar power boost during the energy crisis, where the transition from traditional fossil fuels to cleaner alternatives has been a central focus. Historically, conventional power sources such as coal, natural gas, and nuclear energy have dominated electricity markets due to their established infrastructure and relatively stable pricing. However, the rapid advancements in solar technology and energy storage solutions are altering this dynamic, making renewable energy not only environmentally preferable but also economically advantageous.

Several factors contribute to the cost reduction of solar power with battery storage:

  1. Technological Advancements: The technology behind solar panels and battery storage systems has evolved significantly over recent years. Solar panel efficiency has improved, allowing for greater energy generation from smaller installations. Similarly, cheaper batteries have advanced, with reductions in cost and increases in energy density and lifespan. These improvements mean that solar installations can produce more electricity and store it more effectively, enhancing their economic viability.

  2. Economies of Scale: As demand for solar and battery storage systems has grown, manufacturers have scaled up production, leading to economies of scale. This scaling has driven down the cost of both solar panels and batteries, making them more affordable for consumers. As the market for these technologies expands, prices are expected to continue decreasing, further enhancing their competitiveness.

  3. Government Incentives and Policies: Germany’s commitment to renewable energy has been supported by robust government policies and incentives. The country’s Renewable Energy Sources Act (EEG) and other supportive measures, alongside efforts to remove barriers to PV in Berlin that could accelerate adoption, have provided financial incentives for the adoption of solar power and battery storage. These policies have encouraged investment in renewable technologies and facilitated their integration into the energy market, contributing to the overall reduction in costs.

  4. Falling Installation Costs: The cost of installing solar power systems and battery storage has decreased as the industry has matured. Advances in installation techniques, increased competition among service providers, and streamlined permitting processes have all contributed to lower installation costs. This reduction in upfront expenses has made solar with battery storage more accessible and financially attractive to both residential and commercial consumers.

The economic benefits of solar power with battery storage becoming cheaper than conventional power are substantial. For consumers, this shift translates into lower electricity bills and reduced reliance on fossil fuels. Solar installations with battery storage allow households and businesses to generate their own electricity, store it for use during times of low sunlight, and even sell excess power back to the grid, reflecting how solar is reshaping electricity prices in Northern Europe as markets adapt. This self-sufficiency reduces exposure to fluctuating energy prices and enhances energy security.

For the broader energy market, the decreasing cost of solar power with battery storage challenges the dominance of conventional power sources. As renewable energy becomes more cost-effective, it creates pressure on traditional energy providers to adapt and invest in cleaner technologies, including responses to instances of negative electricity prices during renewable surpluses. This shift can accelerate the transition to a low-carbon energy system and contribute to the reduction of greenhouse gas emissions.

Germany’s achievement also has implications for global energy markets. The country’s success in making solar with battery storage cheaper than conventional power serves as a model for other nations pursuing similar energy transitions. As the cost of renewable technologies continues to decline, other countries can leverage these advancements to enhance their own energy systems, reduce carbon emissions, and achieve energy independence amid over 30% of global electricity now from renewables trends worldwide.

The impact of this development extends beyond economics. It represents a significant step forward in addressing climate change and promoting sustainability. By reducing the cost of renewable energy technologies, Germany is accelerating the shift towards a cleaner and more resilient energy system. This progress aligns with the country’s ambitious climate goals and reinforces its role as a leader in global efforts to combat climate change.

Looking ahead, several challenges remain. The integration of renewable energy into existing energy infrastructure, grid stability, and the management of energy storage are all areas that require continued innovation and investment. However, the decreasing cost of solar power with battery storage provides a strong foundation for addressing these challenges and advancing the transition to a sustainable energy future.

In conclusion, the fact that solar power with battery storage in Germany has become cheaper than conventional power is a groundbreaking development with wide-ranging implications. It underscores the technological advancements, economic benefits, and environmental gains associated with renewable energy technologies. As Germany continues to lead the way in clean energy adoption, this achievement highlights the potential for renewable energy to drive global change and reshape the future of energy.

 

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Planning for our electricity future should be led by an independent body

Nova Scotia Integrated Resource Plan evaluates NSPI supply options, UARB oversight, Muskrat Falls imports, coal retirements, wind and biomass expansion, transmission upgrades, storage, and least-cost pathways to decarbonize the grid for ratepayers.

 

Key Points

A 25-year roadmap assessing supply, imports, costs, and emissions to guide least-cost decarbonization for Nova Scotia.

✅ Compares wind, biomass, gas, imports, and storage costs

✅ Addresses coal retirements, emissions caps, and reliability

✅ Recommends transmission upgrades and Muskrat Falls utilization

 

Maintaining a viable electricity network requires good long-term planning and, as a recent grid operations report notes, ongoing operational improvements. The existing stock of generating assets can become obsolete through aging, changes in fuel prices or environmental considerations. Future changes in demand must be anticipated.

Periodically, an integrated resource plan is created to predict how all this will add up during the ensuing 25 years. That process is currently underway and is led by Nova Scotia Power Inc. (NSPI) and will be submitted for approval to the Utilities and Review Board (UARB).

Coal-fired plants are still the largest single source of electricity in Nova Scotia. They need to be replaced with more environmentally friendly sources when they reach the end of their useful lives. Other sources include wind, hydroelectricity from rivers, biomass, as seen in increased biomass use by NS Power, natural gas and imports from other jurisdictions.

Imports are used sparingly today but will be an important source when the electricity from Muskrat Falls comes on stream. That project has big capacity. It can produce all the power needed in Newfoundland and Labrador (NL), where Quebec's power ambitions influence regional flows, plus the amount already committed to Nova Scotia, and still have a lot left over.

Some sources of electricity are more valuable than others. The daily amount of power from wind and solar cannot be controlled. Fuel-based sources and hydro can.

Utilities make their profits by providing the capital necessary to build infrastructure. Most of the money is borrowed but a portion, typically 30 per cent, usually comes from NSPI or a sister company. On that they receive a rate of return of nine per cent. Nova Scotia can borrow money today at less than two per cent.

The largest single investment of that type is the $1.577-billion Maritime Link connecting power from Newfoundland to Nova Scotia. It continues through to the New Brunswick border to facilitate exports to the United States. NSPI’s sister company, NSP Maritime Link Inc. (NSPML), is making nine per cent on $473 million of the cost.

There is little unexploited hydro capacity in Nova Scotia and there will not be any new coal-fired plants. Large-scale solar is not competitive in Nova Scotia’s climate. Nova Scotia’s needs would not accommodate the amount of nuclear capacity needed to be cost-effective, even as New Brunswick explores small reactors in its strategy.

So the candidates for future generating resources are wind, natural gas, biomass (though biomass criticism remains) and imports from other jurisdictions. Tidal is a promising opportunity but is still searching for a commercially viable technology. 

NSPI is commendably transparent about its process (irp.nspower.ca). At this stage there is little indication of the conclusions they are reaching but that will presumably appear in due course.

The mountains of detail might obscure the fact that NSPI is not an unbiased arbiter of choices for the future.

It is reported that they want to prematurely close the Trenton 5 coal plant in 2023-25. It is valued at $88.5 million. If it is closed early, ratepayers will still have to pay off the remaining value even though the plant will be idle. NSPI wants to plan a decommissioning of five of its other seven plants. There is a federal emissions constraint but retiring coal plants earlier than needed will cost ratepayers a lot.

Whenever those plants are closed, there will be a need for new sources of power. NSPI is proposing to plan for new investments in new transmission infrastructure to facilitate imports. Other possibilities would be additional wind farms, consistent with the shift to more wind and solar projects, thermal plants that burn natural gas or biomass, or storage for excess wind power that arrives before it can be used. The investment in storage could be anywhere from $20 million to $200 million.

These will add to the asset burden funded by ratepayers, even as industrial customers seek discounts while still paying for shuttered coal infrastructure.

External sources of new power will not provide NSPI the same opportunity: wind power by independent producers might be less expensive because they are willing to settle for less than nine per cent or because they are more efficient. Buying more power from Muskrat Falls will use transmission infrastructure we are already paying for. If a successful tidal technology is found, it will not be owned by NSPI or a sister company, which are no longer trying to perfect the technology.

This is not to suggest that NSPI would misrepresent the alternatives. But they can tilt the discussion in their favour. How tough will they be negotiating for additional Muskrat Falls power when it hurts their profits? Arguing for premature coal retirement on environmental grounds is fair game but whether the cost should be accepted is a political choice. 

NSPI is in a conflict of interest. We need a different process. An independent body should author the integrated resource plan. They should be fully informed about NSPI’s views.

They should communicate directly with Newfoundland and Labrador for Muskrat power, with independent wind producers, and with tidal power companies. The UARB cannot do any of these things.

The resulting plan should undergo the same UARB review that NSPI’s version would. This enhances the likelihood that Nova Scotians will get the least-cost alternative.

 

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