Progress Energy CEO McGehee dies

By Knight Ridder Tribune


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Robert B. McGehee, chairman and chief executive officer of Progress Energy, died after suffering a stroke recently in London.

McGehee, 64, became CEO of the Raleigh-based electric utility in March 2004. The company's board plans to meet to discuss its executive succession plan. In September, the board approved the plan in anticipation of McGehee's retirement, which was expected as early as next spring.

"Bob McGehee's life and his tenure as our company's CEO and chairman have been cut painfully short, but the list of his contributions to Progress Energy, its customers, employees and shareholders was long and outstanding," said interim board chairman John Mullin III in a written statement. "Bob was a rare person who combined vision and strength of character with a humble and generous spirit."

McGehee fell ill while traveling with other Progress Energy executives to meet with investors.

He underwent surgery at Charing Cross Hospital, a leading neurosurgery center. Progress Energy is one of the area's largest private employers, with about 3,000 workers in Wake County and 10,600 companywide.

Bill Johnson, 53, the company's chief operating officer and second in command, has taken on CEO duties. Johnson has worked for the utility since 1992 in a number of positions. He was formerly a utilities lawyer and partner at Hunton & Williams in Raleigh.

The executive committee of the company's board appointed Mullin as chairman. Mullin, 65, is chairman of Ridgeway Farm, a timber management company in Brookneal, Va., and a former managing director of investment banking firm Dillon, Read & Co.

McGehee, a Navy veteran and native of Mississippi, joined the company in 1997 as senior vice president and general counsel. He was promoted to president and chief operating officer in 2002 and became CEO in March 2004 and chairman in May 2004.

Before he joined Progress, McGehee was board chairman of a Mississippi law firm that worked with electric utilities, including Entergy and Carolina Power & Light, the predecessor of Progress Energy. In the Navy, McGehee was a lieutenant on a nuclear submarine. He is survived by his wife, Jolene; his father; one brother; four children; and two grandchildren.

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Is this the start of an aviation revolution?

Harbour Air Electric Seaplanes pioneer sustainable aviation with battery-electric propulsion, zero-emission operations, and retrofitted de Havilland Beavers using magniX motors for regional commuter routes, cutting fuel burn, maintenance, and carbon footprints across British Columbia.

 

Key Points

Retrofitted floatplanes using magniX battery-electric motors to provide zero-emission, short-haul regional flights.

✅ Battery-electric magniX motors retrofit de Havilland DHC-2 Beavers

✅ Zero-emission, low-noise operations on short regional routes

✅ Lower maintenance and operating costs vs combustion engines

 

Aviation is one of the fastest rising sources of carbon emissions from transport, but can a small Canadian airline show the industry a way of flying that is better for the planet?

As air journeys go, it was just a short hop into the early morning sky before the de Havilland seaplane splashed back down on the Fraser River in Richmond, British Columbia. Four minutes earlier it had taken off from the same patch of water. But despite its brief duration, the flight may have marked the start of an aviation revolution.

Those keen of hearing at the riverside on that cold December morning might have been able to pick up something different amid the rumble of the propellers and whoosh of water as the six-passenger de Havilland DHC-2 Beaver took off and landed. What was missing was the throaty growl of the aircraft’s nine-cylinder radial engine.

In its place was an all-electric propulsion engine built by the technology firm magniX that had been installed in the aircraft over the course of several months. The four-minute test flight (the plane was restricted to flying in clear skies, so with fog and rain closing in the team opted for a short trip) was the first time an all-electric commercial passenger aircraft had taken to the skies.

The retrofitted de Havilland DHC-2 Beaver took off from the Fraser River in the early morning light for a four minute test flight (Credit: Diane Selkirk)

“It was the first shot of the electric aviation revolution,” says Roei Ganzarski, chief executive of magniX, which worked with Canadian airline Harbour Air Seaplanes to convert one of the aircraft in their fleet of seaplanes so it could run on battery power rather than fossil fuels.

For Greg McDougall, founder of Harbour Air and pilot during the test flight, it marked the culmination of years of trying to put the environment at the forefront of its operations, backed by research investment across the program.

Harbour Air, which has a fleet of some 40 commuter floatplanes serving the coastal regions around Vancouver, Victoria and Seattle, was the first airline in North America to become carbon-neutral through offsets in 2007. A one-acre green roof on their new Victoria airline terminal followed. Then in 2017, 50 solar panels and four beehives housing 10,000 honeybees were added, but for McDougall, a Tesla owner with an interest in disruptive technology, the big goal was to electrify the fleet, with 2023 electric passenger flights as an early target for service.

McDougall searched for alternative motor options for a couple of years and had put the plan on the backburner when Ganzarski first approached him in February 2019. “He said, ‘We’ve got a motor we want to get certified and we want to fly it before the end of the year,’” McDougall recalls.

The two companies found their environmental values and teams were a good match and quickly formed a partnership. Eleven months later, the modest Canadian airline got what McDougall refers to as their “e-plane” off the ground, pulling ahead of other electric flight projects, including those by big-name companies Airbus, Boeing and Rolls-Royce, and startups such as Eviation that later stumbled.

The test flight was followed years of work by Greg McDougall to make his airline more environmentally friendly (Credit: Diane Selkirk)

The project came together in record time considering how risk-adverse the aviation industry is, says McDougall. “Someone had to take the lead,” he says. “The reason I live in British Columbia is because of the outdoors: protecting it is in our DNA. When it came to getting the benefits from electric flight it made sense for us to step in and pioneer the next step.”

As the threat posed by the climate crisis deepens, there has been renewed interest in developing electric passenger aircraft as a way of reducing emissions
Electric flight has been around since the 1970s, but it’s remained limited to light-weight experimental planes flying short distances and solar-powered aircraft with enormous wingspans yet incapable of carrying passengers. But as the threat posed by the climate crisis deepens, there has been renewed interest in developing electric passenger aircraft as a way of reducing emissions and airline operating costs, aligning with broader Canada-U.S. collaboration on electrification across transport.

Currently there are about 170 electric aircraft projects underway internationally –up by 50% since April 2018, according to the consulting firm Roland Berger. Many of the projects are futuristic designs aimed at developing urban air taxis, private planes or aircraft for package delivery. But major firms such as Airbus have also announced plans to electrify their own aircraft. It plans to send its E-Fan X hybrid prototype of a commercial passenger jet on its maiden flight by 2021. But only one of the aircraft’s four jet engines will be replaced with a 2MW electric motor powered by an onboard battery.

This makes Harbour Air something of an outlier. As a coastal commuter airline, it operates smaller floatplanes that tend to make short trips up and down the coastline of British Columbia and Washington State, which means its aircraft can regularly recharge their batteries after a point-to-point electric flight along these routes. The company sees itself in a position to retrofit its entire fleet of floatplanes and make air travel in the region as green as possible.

This could bring some advantages. The efficiency of a typical combustion engine for a plane like this is fairly low – a large proportion of the energy from the fuel is lost as waste heat as it turns the propeller that drives the aircraft forward. Electrical motors have fewer moving parts, meaning there’s less maintenance and less maintenance cost, and comparable benefits are emerging for electric ships operating on the B.C. coast as well.

Electrical motors have fewer moving parts, meaning there’s less maintenance and less maintenance cost
Erika Holtz, Harbour Air’s engineering and quality manager, sees the move to electric as the next major aviation advancement, but warns that one stumbling block has been the perception of safety. “Mechanical systems are much better known and trusted,” she says. In contrast people see electrical systems as a bit unknown – think of your home computer. “Turning it off and on again isn’t an option in aviation,” she adds.

But it’s the possibility of spurring lasting change in aviation that’s made working on the Harbour Air/magniX project so exciting for Holtz. Aviation technology has stagnated over the past decades, she says. “Although there have been incremental improvements in certain technologies, there hasn't been a major development change in aviation in 50 years.”

 

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Canadian Gov't and PEI invest in new transmission line to support wind energy production

Skinners Pond Transmission Line expands PEI's renewable energy grid, enabling wind power integration, grid reliability, and capacity for the planned 40 MW windfarm, funded through the Green Infrastructure Stream to support sustainable economic growth.

 

Key Points

A 106-km grid project enabling PEI wind power, increasing capacity and reliability, linking Skinners Pond to Sherbrooke.

✅ 106-km line connects Skinners Pond to Sherbrooke substation

✅ Integrates 40 MW windfarm capacity by 2025

✅ Funded by Canada and PEI via Green Infrastructure Stream

 

The health and well-being of Canadians are the top priorities of the Governments of Canada and Prince Edward Island. But the COVID-19 pandemic has affected more than Canadians' personal health. It is having a profound effect on the economy.

That is why governments have been taking decisive action together to support families, businesses and communities, and continue to look ahead to planning for our electricity future and see what more can be done.

Today, Bobby Morrissey, Member of Parliament for Egmont, on behalf of the Honourable Catherine McKenna, Minister of Infrastructure and Communities, the Honourable Dennis King, Premier of Prince Edward Island, the Honourable Dennis King, Premier of Prince Edward Island, and the Honourable Steven Myers, Prince Edward Island Minister of Transportation, Infrastructure and Energy, announced funding to build a new transmission line from Sherbrooke to Skinners Pond, as part of broader Canadian collaboration on clean energy, with several premiers nuclear reactor technology to support future needs as well.

The new 106-kilometre transmission line and its related equipment will support future wind energy generation projects in western Prince Edward Island, complementing the Eastern Kings wind farm expansion already advancing. Once completed, the transmission line will increase the province's capacity to manage the anticipated 40 megawatts from the future Skinner's Pond Windfarm planned for 2025 and provide connectivity to the Sherbrooke substation to the northeast of Summerside.

The Government of Canada is investing $21.25 million and the Government of Prince Edward Island is providing $22.75 million in this project, reflecting broader investments in new turbines across Canada, through the Green Infrastructure Stream (GIS) of the Investing in Canada infrastructure program.

This projects is one in a series of important project announcements that will be made across the province over the coming weeks. The Governments of Canada and Prince Edward Island are working cooperatively to support jobs, improve communities and build confidence, while safely and sustainably restoring economic growth, as Nova Scotia increases wind and solar projects across the region.

"Investing in renewable energy infrastructure is essential to building healthy, inclusive, and resilient communities. The new Skinners Pond transmission line will support Prince Edward Island's production of green energy, focusing on wind resources rather than expanded biomass use in the mix. Projects like this also support economic growth and help us build a greener future for the next generation of Islanders."

Bobby Morrissey, Member of Parliament for Egmont, on behalf of the Honourable Catherine McKenna, Minister of Infrastructure and Communities

"We live on an Island that has tremendous potential in further developing renewable energy. We have an opportunity to become more sustainable and be innovative in our approach, and learn from regions where provinces like Manitoba have clean energy to help neighbouring provinces through interties. The strategic investment we are making today in the Skinner's Pond transmission line will allow Prince Edward Island to further harness the natural power of wind to create clean, locally produced and locally used energy that will benefit of all Islanders."

 

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Looming Coal and Nuclear Plant Closures Put ‘Just Transition’ Concept to the Test

Just Transition for Coal and Nuclear Workers explains policy frameworks, compensation packages, retraining, and community support during decarbonization, plant closures, and energy shifts across Europe and the U.S., including Diablo Canyon and Uniper strategies.

 

Key Points

A policy approach to protect and retrain legacy power workers as coal and nuclear plants retire during decarbonization.

✅ Germany and Spain fund closures with compensation and retraining.

✅ U.S. lacks federal support; Diablo Canyon is a notable exception.

✅ Firms like Uniper convert coal sites to gas and clean energy roles.

 

The coronavirus pandemic has not changed the grim reality facing workers at coal and nuclear power plants in the U.S. and Europe. How those workers will fare in the years ahead will vary greatly based on where they live and the prevailing political winds.

In Europe, the retirement of aging plants is increasingly seen as a matter of national concern. Germany this year agreed to a €40 billion ($45 billion) compensation package for workers affected by the country's planned phaseout of coal generation by 2038, amid its broader exit from nuclear power as part of its energy transition. Last month the Spanish authorities agreed on a just transition plan affecting 2,300 workers across 12 thermal power plants that are due to close this year.

In contrast, there is no federal support plan for such workers in the U.S., said Tim Judson, executive director at the Maryland-based Nuclear Information and Resource Service, which lobbies for an end to nuclear and fossil-fuel power.

For all of President Donald Trump’s professed love of blue-collar workers in sectors such as coal, “where there are economic transitions going on, we’re terrible at supporting workers and communities,” Judson said of the U.S. Even at the state level, support for such workers is "almost nonexistent,” he said, “although there are a lot of efforts going on right now to start putting in place just transition programs, especially for the energy sector.”

One example that stands out in the U.S. is the support package secured for workers at utility PG&E's Diablo Canyon Power Plant, California's last operating nuclear power plant that is scheduled for permanent closure in 2025. “There was a settlement between the utility, environmental groups and labor unions to phase out that plant that included a very robust just transition package for the workers and the local community,” Judson said.

Are there enough clean energy jobs to replace those being lost?
Governments are more likely to step in with "just transition" plans where they have been responsible for plant closures in the first place. This is the case for California, Germany and Spain, all moving aggressively to decarbonize their energy sectors and pursue net-zero emissions policy goals.

Some companies are beginning to take a more proactive approach to helping their workers with the transition. German energy giant Uniper, for example, is working with authorities to save jobs by seeking to turn coal plants into lower-emissions gas-fired units.

Germany’s coal phaseout will force Uniper to shut down 1.5 gigawatts of hard-coal capacity by 2022, but the company has said it is looking at "forward-looking" options for its plants that "will be geared toward tomorrow's energy world and offer long-term employment prospects."

Christine Bossak, Uniper’s manager of external communications, told GTM this approach would be adopted in all the countries where Uniper operates coal plants.

Job losses are usually inevitable when a plant is closed, Bossak acknowledged. “But the extent of the reduction depends on the alternative possibilities that can be created at the site or other locations. We will take care of every single employee, should he or she be affected by a closure. We work with the works council and our local partners to find sustainable solutions.”

Diana Junquera Curiel, energy industry director for the global union federation IndustriALL, said such corporate commitments looked good on paper — but the level of practical support depends on the prevailing political sentiment in a country, as seen in Germany's nuclear debate over climate strategy.

Even in Spain, where the closure of coal plants was being discussed 15 years ago, a final agreement had to be rushed through at the last minute upon the arrival of a socialist government, Junquera Curiel said. An earlier right-wing administration had sat on the plan for eight years, she added.

The hope is that heel-dragging over just transition programs will diminish as the scale of legacy plant closures grows.

Nuclear industry facing a similar challenge as coal
One reason why government support is so important is there's no guarantee a burgeoning clean energy economy will be able to absorb all the workers losing legacy generation jobs. Although the construction of renewable energy projects requires large crews, it often takes no more than a handful of people to operate and maintain a wind or solar plant once it's up and running, Junquera Curiel observed.

Meanwhile, the job losses are unlikely to slow. In Europe, Austria and Sweden both closed their last coal-fired units recently, even as Europe loses nuclear capacity in key markets.

In the U.S., the Energy Information Administration's base-case prediction is that coal's share of power generation will fall from 24 percent in 2019 to 13 percent in 2050, while nuclear's will fall from 20 percent to 12 percent over that time horizon. The EIA has long underestimated the growth trajectory of renewables in the mix; only in 2020 did it concede that renewables will eventually overtake natural gas as the country's largest source of power.

The Institute for Energy Economics and Financial Analysis has predicted that even a coronavirus-inspired halt to renewables is unlikely to stop a calamitous drop in coal’s contribution to U.S. generation.

The nuclear sector faces a similar challenge as coal, albeit over a longer timeline. Last year saw the nuclear industry starting to lose capacity worldwide in what could be the beginning of a terminal decline, highlighted by Germany's shutdown of its last three reactors in 2023. Last week, the Indian Point Energy Center closed permanently after nearly half a century of cranking out power for New York City.*

“Amid ongoing debates over whether to keep struggling reactors online in certain markets, the industry position would be that governments should support continued operation of existing reactors and new build as part of an overall policy to transition to a sustainable clean energy system,” said Jonathan Cobb, senior communication manager at the World Nuclear Association.

If this doesn’t happen, plant workers will be hoping they can at least get a Diablo Canyon treatment. Based on the progress of just transition plans so far, that may depend on how they vote just as much as who they work for.

 

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Ford's Washington Meeting: Energy Tariffs and Trade Tensions with U.S

Ontario-U.S. Energy Tariff Dispute highlights cross-border trade tensions, retaliatory tariffs, export surcharges, and White House negotiations as Doug Ford meets U.S. officials to de-escalate pressure over steel, aluminum, and energy supplies.

 

Key Points

A trade standoff over energy exports and tariffs, sparked by Ontario's surcharge and U.S. duties on steel and aluminum.

✅ 25% Ontario energy surcharge paused before White House talks

✅ U.S. steel and aluminum tariffs reduced from 50% to 25%

✅ Potential energy supply cutoff remains leverage in negotiations

 

Ontario Premier Doug Ford's recent high-stakes diplomatic trip to Washington, D.C., underscores the delicate trade tensions between Canada and the United States, particularly concerning energy exports and Canada's electricity exports across the border. Ford's potential use of tariffs or even halting U.S. energy supplies, amid Ontario's energy independence considerations, remains a powerful leverage tool, one that could either de-escalate or intensify the ongoing trade conflict between the two neighboring nations.

The meeting in Washington follows a turbulent series of events that began with Ontario's imposition of a 25% surcharge on energy exports to the U.S. This move came in retaliation to what Ontario perceived as unfair treatment in trade agreements, a step that aligned with Canadian support for tariffs at the time. In response, U.S. President Donald Trump's administration threatened its own set of tariffs, specifically targeting Canadian steel and aluminum, which further escalated tensions. U.S. officials labeled Ford's threat to cut off U.S. electricity exports and energy supplies as "egregious and insulting," warning of significant economic retaliation.

However, shortly after these heated exchanges, Trump’s commerce secretary, Howard Lutnick, extended an invitation to Ford for a direct meeting at the White House. Ford described this gesture as an "olive branch," signaling a potential de-escalation of the dispute. In the lead-up to this diplomatic encounter, Ford agreed to pause the energy surcharge, allowing the meeting to proceed, amid concerns tariffs could spike NY energy prices, without further escalating the crisis. Trump's administration responded by lowering its proposed 50% tariff on Canadian steel and aluminum to a more manageable 25%.

The outcome of the meeting, which is set to address these critical issues, could have lasting implications for trade relations between Canada and the U.S. If Ford and Lutnick can reach an agreement, the potential for tariff imposition on energy exports, though experts advise against cutting Quebec's energy exports due to broader risks, could be resolved. However, if the talks fail, it is likely that both countries could face further retaliatory measures, compounding the economic strain on both sides.

As Canada and the U.S. continue to navigate these complex issues, where support for Canadian energy projects has risen, the outcome of Ford's meeting with Lutnick will be closely watched, as it could either defuse the tensions or set the stage for a prolonged trade battle.

 

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UK must start construction of large-scale storage or fail to meet net zero targets.

UK Hydrogen Storage Caverns enable long-duration, low-carbon electricity balancing, storing surplus wind and solar power as green hydrogen in salt formations to enhance grid reliability, energy security, and net zero resilience by 2035 and 2050.

 

Key Points

They are salt caverns storing green hydrogen to balance wind and solar, stabilizing a low-carbon UK grid.

✅ Stores surplus wind and solar as green hydrogen in salt caverns

✅ Enables long-duration, low-carbon grid balancing and security

✅ Complements wind and solar; reduces dependence on flexible CCS

 

The U.K. government must kick-start the construction of large-scale hydrogen storage facilities if it is to meet its pledge that all electricity will come from low-carbon electricity sources by 2035 and reach legally binding net zero targets by 2050, according to a report by the Royal Society.

The report, "Large-scale electricity storage," published Sep. 8, examines a wide variety of ways to store surplus wind and solar generated electricity—including green hydrogen, advanced compressed air energy storage (ACAES), ammonia, and heat—which will be needed when Great Britain's electricity generation is dominated by volatile wind and solar power.

It concludes that large scale electricity storage is essential to mitigate variations in wind and sunshine, particularly long-term variations in the wind, and to keep the nation's lights on. Storing most of the surplus as hydrogen, in salt caverns, would be the cheapest way of doing this.

The report, based on 37 years of weather data, finds that in 2050 up to 100 Terawatt-hours (TWh) of storage will be needed, which would have to be capable of meeting around a quarter of the U.K.'s current annual electricity demand. This would be equivalent to more than 5,000 Dinorwig pumped hydroelectric dams. Storage on this scale, which would require up to 90 clusters of 10 caverns, is not possible with batteries or pumped hydro.

Storage requirements on this scale are not currently foreseen by the government, and the U.K.'s energy transition faces supply delays. Work on constructing these caverns should begin immediately if the government is to have any chance of meeting its net zero targets, the report states.

Sir Chris Llewellyn Smith FRS, lead author of the report, said, "The need for long-term storage has been seriously underestimated. Demand for electricity is expected to double by 2050 with the electrification of heat, transport, and industrial processing, as well as increases in the use of air conditioning, economic growth, and changes in population.

"It will mainly be met by wind and solar generation. They are the cheapest forms of low-carbon electricity generation, but are volatile—wind varies on a decadal timescale, so will have to be complemented by large scale supply from energy storage or other sources."

The only other large-scale low-carbon sources are nuclear power, gas with carbon capture and storage (CCS), and bioenergy without or with CCS (BECCS). While nuclear and gas with CCS are expected to play a role, they are expensive, especially if operated flexibly.

Sir Peter Bruce, vice president of the Royal Society, said, "Ensuring our future electricity supply remains reliable and resilient will be crucial for our future prosperity and well-being. An electricity system with significant wind and solar generation is likely to offer the lowest cost electricity but it is essential to have large-scale energy stores that can be accessed quickly to ensure Great Britain's energy security and sovereignty."

Combining hydrogen with ACAES, or other forms of storage that are more efficient than hydrogen, could lower the average cost of electricity overall, and would lower the required level of wind power and solar supply.

There are currently three hydrogen storage caverns in the U.K., which have been in use since 1972, and the British Geological Survey has identified the geology for ample storage capacity in Cheshire, Wessex and East Yorkshire. Appropriate, novel business models and market structures will be needed to encourage construction of the large number of additional caverns that will be needed, the report says.

Sir Chris observes that, although nuclear, hydro and other sources are likely to play a role, Britain could in principle be powered solely by wind power and solar, supported by hydrogen, and some small-scale storage provided, for example, by batteries, that can respond rapidly and to stabilize the grid. While the cost of electricity would be higher than in the last decade, we anticipate it would be much lower than in 2022, he adds.

 

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Electricity Regulation With Equity & Justice For All

Energy equity in utility regulation prioritizes fair rates, clean energy access, and DERs, addressing fixed charges and energy burdens on low-income households through stakeholder engagement and public utility commission reforms.

 

Key Points

Fairly allocates clean energy benefits and rate burdens, ensuring access and protections for low-income households.

✅ Reduces fixed charges that burden low-income households

✅ Funds community participation in utility proceedings

✅ Prioritizes DERs, energy efficiency, and solar in impacted areas

 

By Kiran Julin

Pouring over the line items on your monthly electricity bill may not sound like an enticing way to spend an afternoon, but the way electricity bills are structured has a significant impact on equitable energy access and distribution. For example, fixed fees can have a disproportionate impact on low-income households. And combined with other factors, low-income households and households of color are far more likely to report losing home heating service, with evidence from pandemic power shut-offs highlighting these disparities, according to recent federal data.

Advancing Equity in Utility Regulation, a new report published by the U.S. Department of Energy’s (DOE’s) Lawrence Berkeley National Laboratory (Berkeley Lab), makes a unifying case that utilities, regulators, and stakeholders need to prioritize energy equity in the deployment of clean energy technologies and resources, aligning with a people-and-planet electricity future envisioned by advocacy groups. Equity in this context is the fair distribution of the benefits and burdens of energy production and consumption. The report outlines systemic changes needed to advance equity in electric utility regulation by providing perspectives from four organizations — Portland General Electric, a utility company; the National Consumer Law Center, a consumer advocacy organization; and the Partnership for Southern Equity and the Center for Biological Diversity, social justice and environmental organizations.
 
“While government and ratepayer-funded energy efficiency programs have made strides towards equity by enabling low-income households to access energy-efficiency measures, that has not yet extended in a major way to other clean-energy technologies,” said Lisa Schwartz, a manager and strategic advisor at Berkeley Lab and technical editor of the report. “States and utilities can take the lead to make sure the clean-energy transition does not leave behind low-income households and communities of color. Decarbonization and energy equity goals are not mutually exclusive, and in fact, they need to go hand-in-hand.”

Energy bills and electricity rates are governed by state laws and utility regulators, whose mission is to ensure that utility services are reliable, safe, and fairly priced. Public utility commissions also are increasingly recognizing equity as an important goal, tool, and metric, and some customers face major changes to electric bills as reforms advance. While states can use existing authorities to advance equity in their decision-making, several, including Illinois, Maine, Oregon, and Washington, have enacted legislation over the last couple of years to more explicitly require utility regulators to consider equity.

“The infrastructure investments that utility companies make today, and regulator decisions about what goes into electricity bills, including new rate design steps that shape customer costs, will have significant impacts for decades to come,” Schwartz said.

Solutions recommended in the report include considering energy justice goals when determining the “public interest” in regulatory decisions, allocating funding for energy justice organizations to participate in utility proceedings, supporting utility programs that increase deployment of energy efficiency and solar for low-income households, and accounting for energy inequities and access in designing electricity rates, while examining future utility revenue models as technologies evolve.

The report is part of the Future of Electric Utility Regulation series that started in 2015, led by Berkeley Lab and funded by DOE, to encourage informed discussion and debate on utility trends and tackling the toughest issues related to state electric utility regulation. An advisory group of utilities, public utility commissioners, consumer advocates, environmental and social justice organizations, and other experts provides guidance.

 

Taking stock of past and current energy inequities

One focus of the report is electricity bills. In addition to charges based on usage, electricity bills usually also have a fixed basic customer charge, which is the minimum amount a household has to pay every month to access electricity. The fixed charge varies widely, from $5 to more than $20. In recent years, utility companies have sought sizable increases in this charge to cover more costs, amid rising electricity prices in some markets.

This fixed charge means that no matter what a household does to use energy more efficiently or to conserve energy, there is always a minimum cost. Moreover, low-income households often live in older, poorly insulated housing. Current levels of public and utility funding for energy-efficiency programs fall far short of the need. The combined result is that the energy burden – or percent of income needed to keep the lights on and their homes at a healthy temperature – is far greater for lower-income households.

“While all households require basic lighting, heating, cooling, and refrigeration, low-income households must devote a greater proportion of income to maintain basic service,” explained John Howat and Jenifer Bosco from the National Consumer Law Center and co-authors of Berkeley Lab’s report. Their analysis of data from the most recent U.S. Energy Information Administration’s Residential Energy Consumption Survey shows households with income less than $20,000 reported losing home heating service at a pace more than five times higher than households with income over $80,000. Households of color were far more likely than those with a white householder to report loss of heating service. In addition, low-income households and households of color are more likely to have to choose between paying their energy bill or paying for other necessities, such as healthcare or food.

Based on the most recent data (2015) from the U.S. Energy Information Administration (EIA), households with income less than $20,000 reported losing home heating service at a rate more than five times higher than households with income over $80,000. Households of color were far more likely than those with a white householder to report loss of heating service. Click on chart for larger view. (Credit: John Howat/National Consumer Law Center, using EIA data)

Moreover, while many of the infrastructure investment decisions that utilities make, such as whether and where to build a new power plant, often have long-term environmental and health consequences, impacted communities often are not at the table. “Despite bearing an inequitable proportion of the negative impacts of environmental injustices related to fossil fuel-based energy production and climate change, marginalized communities remain virtually unrepresented in the energy planning and decision-making processes that drive energy production, distribution, and regulation,” wrote Chandra Farley, CEO of ReSolve and a co-author of the report.


Engaging impacted communities
Each of the perspectives in the report identify a need for meaningful engagement of underrepresented and disadvantaged communities in energy planning and utility decision-making. “Connecting the dots between energy, racial injustice, economic disinvestment, health disparities, and other associated equity challenges becomes a clarion call for communities that are being completely left out of the clean energy economy,” wrote Farley, who previously served as the Just Energy Director at Partnership for Southern Equity. “We must prioritize the voices and lived experiences of residents if we are to have more equity in utility regulation and equitably transform the energy sector.”

In another essay in the report, Nidhi Thaker and Jake Wise from Portland General Electric identify the importance of collaborating directly with the communities they serve. In 2021, the Oregon Legislature passed Oregon HB 2475, which allows the Oregon Public Utility Commission to allocate ratepayer funding for organizations representing people most affected by a high energy burden, enabling them to participate in utility regulatory processes.

The report explains why energy equity requires correcting inequities resulting from past and present failures as well as rethinking how we achieve future energy and decarbonization goals. “Equity in energy requires adopting an expansive definition of the ‘public interest’ that encompasses energy, climate, and environmental justice. Energy equity also means prioritizing the deployment of distributed energy resources and clean energy technologies in areas that have been hit first and worst by the existing fossil fuel economy,” wrote Jean Su, energy justice director and senior attorney at the Center for Biological Diversity.

This report was supported by DOE’s Grid Modernization Laboratory Consortium, with funding from the Office of Energy Efficiency and Renewable Energy and the Office of Electricity.

 

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