3 Strong Energy Investments to Make Right Now

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Three strong energy investments to make right now, according to energy investment strategist and author of Power Plug-In: Global Investments for Our Energy Future, Gordon Ettie are in:

1. Electricity through a power utility that produces electricity for over 1,000,000 customers that does not rely in a major way on coal for their energy source and is well managed with a good earnings track record

2. Oil through oil companies with good management and a track record as well as oil services companies with a global presence

3. Natural gas through strong companies focused on new technology in extracting natural gas from shale rock formations.

Based on over two years of research Power Plug-In offers compelling global solutions for energy investors by taking a broad look at all energy sources and then providing a detailed analysis of investment strategies both long and short term in each.

Three strong energy investments right now, according to energy investment strategist and author, Gordon Ettie are in: coal, through global coal suppliers to India or China oil through oil companies with good management and a track records as well as oil services companies with a global presence and natural gas through strong companies focused on new technology in extracting natural gas from shale rock formations.

“While there are many investment opportunities, both short and long term in the energy field, I feel that these three showcase the kind of thinking and research successful energy investors need to do in order to minimize their risk and maximize their returns” explains Ettie.

Based on over two years of research Power Plug-In offers compelling global solutions for energy investors by taking a broad look at all energy sources and then providing a detailed analysis of investment strategies both long and short term in each. Some of the recommendations which emerged are:

Electricity

Electricity through a power utility that produces electricity for over 1,000,000 customers that does not rely in a major way on coal for their energy source and is well managed with a good earnings track record. Although you should always keep informed an investment in an electrical utility is for the long term. In the future in the developed countries there will be less demand for electricity due to more efficient use but there will be cost reductions so profitability should improve for an electrical utility. However in the developing countries demand for electricity will increase and technology for generating electricity will improve which should result in improving profits.

Oil

A good investment opportunity for long term is in oil. Investment could be in a major global company with good management and a good track record. Also an investment in a good oil services company with a global presence may be worthwhile. There also might be more investment in this fuel area in the United States.

Natural Gas

The application of new technology has unlocked a vast reserve of natural gas in shale rock formations. A good investment would be in a strong company that is focused on this area.

“My purpose in writing Power Plug-In: Global Investments for Our Energy Future was to offer my own personal experience and success with strong investment analysis backed up by solid research in the many energy sources, both national and global, from coal to wind and just about everything in between and then explores the investment potential of each one,” explains Ettie. “While there are many investment guides and energy textbooks in the marketplace, Power Plug-In is the first one-source information and investment guide for both individual and organizational investors.”

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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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IEA: Electricity investment surpasses oil and gas for the first time

Electricity Investment Surpasses Oil and Gas 2016, driven by renewable energy, power grids, and energy efficiency, as IEA reports lower oil and gas spending, rising solar and wind capacity, and declining coal power plant approvals.

 

Key Points

A 2016 milestone where electricity topped global energy investment, led by renewables, grids, and efficiency, per the IEA.

✅ IEA: electricity investment hit $718b; oil and gas fell to $650b.

✅ Renewables led with $297b; solar and wind unit costs declined.

✅ Coal plant approvals plunged; networks and storage spending rose.

 

Investments in electricity surpassed those in oil and gas for the first time ever in 2016 on a spending splurge on renewable energy and power grids as the fall in crude prices led to deep cuts, the International Energy Agency (IEA) said.

Total energy investment fell for the second straight year by 12 per cent to US$1.7 trillion compared with 2015, the IEA said. Oil and gas investments plunged 26 per cent to US$650 billion, down by over a quarter in 2016, and electricity generation slipped 5 per cent.

"This decline (in energy investment) is attributed to two reasons," IEA chief economist Laszlo Varro told journalists.

"The reaction of the oil and gas industry to the prolonged period of low oil prices which was a period of harsh investment cuts; and technological progress which is reducing investment costs in both renewable power and in oil and gas," he said.

Oil and gas investment is expected to rebound modestly by 3 per cent in 2017, driven by a 53 per cent upswing in U.S. shale, and spending in Russia and the Middle East, the IEA said in a report.

"The rapid ramp up of U.S. shale activities has triggered an increase of U.S. shale costs of 16 per cent in 2017 after having almost halved from 2014-16," the report said.

The global electricity sector, however, was the largest recipient of energy investment in 2016 for the first time ever, overtaking oil, gas and coal combined, the report said.

"Robust investments in renewable energy and increased spending in electricity networks, which supports the outlook that low-emissions sources will cover most demand growth, made electricity the biggest area of capital investments," Varro said.

Electricity investment worldwide was US$718 billion, lifted by higher spending in power grids which offset the fall in power generation investments.

"Investment in new renewables-based power capacity, at US$297 billion, remained the largest area of electricity spending, despite falling back by 3 per cent as clean energy investment in developing nations slipped, the report said."

Although renewables investments was 3 per cent lower than five years ago, capacity additions were 50 per cent higher and expected output from this capacity about 35 per cent higher, thanks to the fall in unit costs and technology improvements in solar PV and wind generation, the IEA said.

 

COAL INVESTMENT IS COMING TO AN END

Investments in coal-fired electricity plants fell sharply. Sanctioning of new coal power plants fell to the lowest level in nearly 15 years, reflecting concerns about local air pollution, and emergence of overcapacity and competition from renewables, with renewables poised to eclipse coal in global power generation, notably in China. Coal investments, however, grew in India.

"Coal investment is coming to an end. At the very least, it is coming to a pause," Varro said.

The IEA report said energy efficiency investments continued to expand in 2016, reaching US$231 billion, with most of it going to the building sector globally.

Electric vehicles sales rose 38 per cent in 2016 to 750,000 vehicles at $6 billion, and represented 10 per cent of all transport efficiency spending. Some US$6 billion was spent globally on electronic vehicle charging stations, the IEA said.

Spending on electricity networks and storage continued the steady rise of the past five years, as surging electricity demand puts power systems under strain, reaching an all-time high of US$277 billion in 2016, with 30 per cent of the expansion driven by China’s spending in its distribution system, the report said.

China led the world in energy investments with 21 per cent of global total share, the report said, driven by low-carbon electricity supply and networks projects.

Although oil and gas investments fell in the United States in 2016, its total energy investments rose 16 per cent, even as Americans use less electricity in recent years, on the back of spending in renewables projects, the IEA report said.

 

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Electricity subsidies to pulp and paper mills to continue, despite NB Power's rising debt

NB Power Pulp and Paper Subsidies lower electricity rates for six New Brunswick mills using firm power benchmarks and interruptible discounts, while government mandates, utility debt, ratepayer impacts, and competitiveness pressures shape provincial energy policy.

 

Key Points

Provincial mandates that buy down firm electricity rates for six mills to a national average, despite NB Power's debt.

✅ Mandated buy-down to match national firm electricity rates

✅ Ignores large non-firm interruptible power discounts

✅ Raises equity concerns amid NB Power debt and rate pressure

 

An effort to fix NB Power's struggling finances that is supposed to involve a look at "all options" will not include a review of the policy that requires the utility to subsidize electricity prices for six New Brunswick pulp and paper mills, according to the Department of Natural Resources and Energy Development.

The program is meant "to enable New Brunswick's pulp and paper companies have access to competitive priced electricity,"  said the department's communications officer Nick Brown in an email Monday 

"Keeping our large industries competitive with other Canadian jurisdictions, amid Nova Scotia rate hike opposition debates elsewhere, is important," he wrote, knocking down the idea the subsidy program might be scrutinized for shortcomings like other NB Power expenses.

Figures released last week show NB Power paid out $9.7 million in rate subsidies to the mills under the program in the fiscal year ended in March 2021, even though the utility was losing $4 million for the year and falling deeper into debt, amid separate concerns about old meter issues affecting households.

Subsidies went to three mills owned by J.D. Irving Ltd. including two in Saint John and one in Lake Utopia, two owned by the AV group in Nackawic and Atholville and the Twin Rivers pulp mill in Edmundston.

The New Brunswick government has made NB Power subsidize pulp and paper mills like Twin Rivers Paper Company since 2012, and is requiring the program to continue despite financial problems at the utility. (CBC)
It was NB Power's second year in a row of financial losses, while it is supposed to pay down $500 million of its $4.9 billion debt load in the next five years to prepare for the refurbishment of the Mactaquac dam, a burden comparable to customers in Newfoundland paying for Muskrat Falls elsewhere under separate policies, under a directive issued by the province

NB Power president Keith Cronkhite said he was "very disappointed" with debt increasing last year instead of  falling and senior vice president and chief financial officer Darren Murphy said everything would be under the microscope this year to turn the utility's finances around.  

"We need to do better," said Murphy on Thursday

"We need to step back and make sure we're considering all options, including approaches like Newfoundland's ratepayer shield agreement on megaproject overruns, to achieve that objective because the objective is quickly closing in on us."

However, reviewing the subsidy program for the six pulp and paper mills is apparently off limits.

The subsidy program requires NB Power to buy down the cost of "firm" electricity bought by pulp and paper mills to a national average that is calculated by the Department of Natural Resources and Energy Development.

Last year the province declared the price mills in New Brunswick pay to be an average of  7.536 cents per kilowatt hour (kwh).  It is higher than rates in five other provinces that have mills, which the province points to as justification for the subsidies, even as Nova Scotia's 14% rate hike approval highlights broader upward pressure, although the true significance of that difference is not entirely clear.

In British Columbia, the large forest products company Paper Excellence operates five pulp and paper mills which are charged 17.2 per cent less for firm electricity than the six mills in New Brunswick.

The Paper Excellence Paper Mill in Port Alberni, B.C. pays lower electricity prices than mills in New Brunswick, a benefit largely offset by higher property taxes. It's a factor New Brunswick does not count in calculating subsidies NB Power must pay. (Paper Excellence)
However, local property taxes on the five BC mills are a combined $7.8 million higher than the six New Brunswick plants, negating much of that difference.

The province's subsidy formula does not account for differences like that or for the fact New Brunswick mills buy a high percentage of their electricity at cheap non-firm prices.

Not counting the subsidies, NB Power already sells high volumes of what it calls interruptible and surplus power to industry at deep discounts on the understanding it can be cut off and redeployed elsewhere on short notice when needed.

Actual interruptions in service are rare.  Last year there were none, but NB Power sold 837 million kilowatt hours of the discounted power to industry at an average price of 4.9 cents per kwh.   

NB Power does not disclose how much of the $22 million or more in savings went to the six mills, but the price was 35 per cent below NB Power's posted rate for the plants and rivaled firm prices big mills receive anywhere in Canada, including Quebec.

Asked why the subsidy program ignores large amounts of discounted interruptible power used by New Brunswick mills in making comparisons between provinces, Brown said regulations governing the program require a comparison of firm prices only.

"The New Brunswick average rate is based on NB Power's published large industrial rate for firm energy, as required by the Electricity from Renewable Resources regulation," he wrote.

The subsidy program itself was imposed on NB Power by the province in 2012 to aid companies suffering after years of poor markets for forest products following the 2008 financial collapse and recession.  

Providing subsidies has cost NB Power $100 million so far and has continued even as markets for pulp products improved significantly and NB Power's own finances worsened.

Report warned against subsidies
NB Power has never directly criticized the program, but in a matter currently in front the of the New Brunswick Energy and Utilities Board looking at how NB Power might restructure its rates, including proposals such as seasonal rates that could prompt backlash, an independent consultant hired by the utility suggested rate subsidies to large export oriented manufacturing facilities, like pulp and paper mills, is generally a poor idea.

"We do not recommend offering subsidies to exporters," says the report by Christensen Associates Energy Consulting of Madison, Wis.

"There are two serious economic problems with subsidizing exports. The first is that the benefits may be less than the costs. The second problem is that subsidies tend to last forever, even if the circumstances that initially justified the subsidies have disappeared."

The Christensen report did not directly assess the merits of the current subsidy for pulp and paper mills but it addressed the issue because it said in the design of new rates "one NB Power business customer has raised the possibility that their electricity-intensive business ought to be granted subsidies because of the potential to generate extra benefits for the Province through increases in their exports"

That, said Christensen, rarely benefits the public.

"The direct costs of the subsidies are the subsidies themselves, a part of which ends up in the pockets of out-of-province consumers of the exported goods," said the report.  

"But there are also indirect costs due to the fact that the subsidies are financed through higher electricity prices, which means that other electricity customers have less money to spend on services provided by local businesses, thus putting a drag on the local economy."

The province does not agree.

Asked whether it has any studies or cost-benefit reviews that show the subsidy program is a net benefit to New Brunswick, the department cited none but maintained it is an important initiative, even as elsewhere governments have offered electricity bill credit relief to ratepayers.

"The program was designed to give large industrial businesses the ability to compete on a level energy field," wrote Brown.
 

 

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Vancouver's Reversal on Gas Appliances

Vancouver Natural Gas Ban Reversal spotlights energy policy, electrification tradeoffs, heat pumps, emissions, grid reliability, and affordability, reshaping building codes and decarbonization pathways while inviting stakeholders to weigh practical constraints and climate goals.

 

Key Points

Vancouver ending its ban on natural gas in new homes to balance climate goals with reliability, costs, and technology.

✅ Balances emissions goals with reliability and affordability

✅ Impacts builders, homeowners, and energy infrastructure

✅ Spurs debate on electrification, heat pumps, and grid capacity

 

In a significant policy shift, Vancouver has decided to lift its ban on natural gas appliances in new homes, a move that marks a pivotal moment in the city's energy policy and environmental strategy. This decision, announced recently and following the city's Clean Energy Champion recognition for Bloedel upgrades, has sparked a broader conversation about the future of energy systems and the balance between environmental goals and practical energy needs. Stewart Muir, CEO of Resource Works, argues that this reversal should catalyze a necessary dialogue on energy choices, highlighting both the benefits and challenges of such a policy change.

Vancouver's original ban on natural gas appliances was part of a broader initiative aimed at reducing greenhouse gas emissions and promoting sustainability, including progress toward phasing out fossil fuels where feasible over time. The city had adopted stringent regulations to encourage the use of electric heat pumps and other low-carbon technologies in new residential buildings. This move was aligned with Vancouver’s ambitious climate goals, which include achieving carbon neutrality by 2050 and significantly cutting down on fossil fuel use.

However, the recent decision to reverse the ban reflects a growing recognition of the complexities involved in transitioning to entirely new energy systems. The city's administration acknowledged that while electric alternatives offer environmental benefits, they also come with challenges that can affect homeowners, builders, and the broader energy infrastructure, including options for bridging the electricity gap with Alberta to enhance regional reliability.

Stewart Muir argues that Vancouver’s policy shift is not just about natural gas appliances but represents a larger conversation about energy system choices and their implications. He suggests that the reversal of the ban provides an opportunity to address key issues related to energy reliability, affordability, and the practicalities of integrating new technologies, including electrified LNG options for industry within the province into existing systems.

One of the primary reasons behind the reversal is the recognition of the practical limitations and costs associated with transitioning to electric-only systems. For many homeowners and builders, natural gas appliances have long been a reliable and cost-effective option. The initial ban on these appliances led to concerns about increased construction costs and potential disruptions for homeowners who were accustomed to natural gas heating and cooking.

In addition to cost considerations, there are concerns about the reliability and efficiency of electric alternatives. Natural gas has been praised for its stable energy supply and efficient performance, especially in colder climates where electric heating systems might struggle to maintain consistent temperatures or fully utilize Site C's electricity under peak demand. By reversing the ban, Vancouver acknowledges that a one-size-fits-all approach may not be suitable for every situation, particularly when considering diverse housing needs and energy demands.

Muir emphasizes that the reversal of the ban should prompt a broader discussion about how to balance environmental goals with practical energy needs. He argues that rather than enforcing a blanket ban on specific technologies, it is crucial to explore a range of solutions that can effectively address climate objectives while accommodating the diverse requirements of different communities and households.

The debate also touches on the role of technological innovation in achieving sustainability goals. As energy technologies continue to evolve, renewable electricity is coming on strong and new solutions and advancements could potentially offer more efficient and environmentally friendly alternatives. The conversation should include exploring these innovations and considering how they can be integrated into existing energy systems to support long-term sustainability.

Moreover, Muir advocates for a more inclusive approach to energy policy that involves engaging various stakeholders, including residents, businesses, and energy experts. A collaborative approach can help identify practical solutions that address both environmental concerns and the realities of everyday energy use.

In the broader context, Vancouver’s decision reflects a growing trend in cities and regions grappling with energy transitions. Many urban centers are evaluating their energy policies and considering adjustments based on new information and emerging technologies. The key is to find a balance that supports climate goals such as 2050 greenhouse gas targets while ensuring that energy systems remain reliable, affordable, and adaptable to changing needs.

As Vancouver moves forward with its revised policy, it will be important to monitor the outcomes and assess the impacts on both the environment and the community. The reversal of the natural gas ban could serve as a case study for other cities facing similar challenges and could provide valuable insights into how to navigate the complexities of energy transitions.

In conclusion, Vancouver’s decision to reverse its ban on natural gas appliances in new homes is a significant development that opens the door for a critical dialogue about energy system choices. Stewart Muir’s call for a broader conversation emphasizes the need to balance environmental ambitions with practical considerations, such as cost, reliability, and technological advancements. As cities continue to navigate their energy futures, finding a pragmatic and inclusive approach will be essential in achieving both sustainability and functionality in energy systems.

 

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Judge: Texas Power Plants Exempt from Providing Electricity in Emergencies

Texas Blackout Liability Ruling clarifies appellate court findings in Houston, citing deregulated energy markets, ERCOT immunity, wholesale generators, retail providers, and 2021 winter storm lawsuits over grid failures and wrongful deaths.

 

Key Points

Houston judges held wholesale generators owe no duty to retail customers, limiting liability for 2021 blackout lawsuits.

✅ Court cites deregulated market and lack of privity to consumers

✅ Ruling shields generators from 2021 winter storm civil suits

✅ Plaintiffs plan appeals; legislature may address liability

 

Nearly three years after the devastating Texas blackout of 2021, a panel of judges from the First Court of Appeals in Houston has determined that major power companies cannot be held accountable for their failure to deliver electricity during the power grid crisis that unfolded, citing Texas' deregulated energy market as the reason.

This ruling appears likely to shield these companies from lawsuits that were filed against them in the aftermath of the blackout, leaving the families of those affected uncertain about where to seek justice.

In February 2021, a severe cold front swept over Texas, bringing extended periods of ice and snow. The extreme weather conditions increased energy demand while simultaneously reducing supply by causing power generators and the state's natural gas supply chain to freeze. This led to a blackout that left millions of Texans without power and water for nearly a week.

The state officially reported that almost 250 people lost their lives during the winter storm and subsequent blackout, although some analysts argue that this is a significant undercount and warn of blackout risks across the U.S. during severe heat as well.

In the wake of the storm, Texans affected by the energy system's failure began filing lawsuits, and lawmakers proposed a market bailout as political debate intensified. Some of these legal actions were directed against power generators whose plants either ceased to function during the storm or ran out of fuel for electricity generation.

After several years of legal proceedings, a three-judge panel was convened to evaluate the merits of these lawsuits.

This week, Chief Justice Terry Adams issued a unanimous opinion on behalf of the panel, stating, "Texas does not currently recognize a legal duty owed by wholesale power generators to retail customers to provide continuous electricity to the electric grid, and ultimately to the retail customers."

The opinion further clarified that major power generators "are now statutorily precluded by the legislature from having any direct relationship with retail customers of electricity."

This separation of power generation from transmission and retail electric sales in many parts of Texas resulted from energy market deregulation in the early 2000s, with the goal of reducing energy costs, and prompted electricity market reforms aimed at avoiding future blackouts.

Under the previous system, power companies were "vertically integrated," controlling generators, transmission lines, and selling the energy they produced directly to regional customers. However, in deregulated areas of Texas, competition was introduced, creating competing energy-generating companies and retail electric providers that purchase power wholesale and then sell it to residential consumers; meanwhile, electric cooperatives in other parts of the state remained member-owned providers.

Tré Fischer, a partner at the Jackson Walker law firm representing the power companies, explained, "One consequence of that was, because of the unbundling and the separation, you also don't have the same duties and obligations [to consumers]. The structure just doesn't allow for that direct relationship and correspondingly a direct obligation to continually supply the electricity even if there's a natural disaster or catastrophic event."

In the opinion, Justice Adams noted that when designing the Texas energy market, amid renewed interest in ways to improve electricity reliability across the grid, state lawmakers "could have codified the retail customers' asserted duty of continuous electricity on the part of wholesale power generators into law."

The recent ruling applies to five representative cases chosen by the panel out of hundreds filed after the blackout. Due to this decision, it is improbable that any of the lawsuits against power companies will succeed, according to the court's interpretation.

However, plaintiffs' attorneys have indicated their intention to appeal. They may request a review of the panel's opinion by the entire First Court of Appeals or appeal directly to the state supreme court.

The state Supreme Court had previously ruled that the Electric Reliability Council of Texas (ERCOT), the state's power grid operator, enjoys sovereign immunity and cannot be sued over the blackout.

This latest opinion raises the question of who, if anyone, can be held responsible for deaths and losses resulting from the blackout, a question left unaddressed by the court. Fischer commented, "If anything [the judges] were saying that is a question for the Texas legislature."

 

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Clean energy jobs energize Pennsylvania: Clean Energy Employment Report

Pennsylvania Clean Energy Employment surges, highlighting workforce growth in energy efficiency, solar, wind, grid and storage, and alternative transportation, supporting COVID-19 recovery, high-wage jobs, manufacturing, construction, and statewide economic resilience.

 

Key Points

Jobs across clean power, efficiency, grid, storage, and advanced transport fueling Pennsylvania's workforce growth.

✅ 8.7% job growth from 2017-2019, outpacing statewide average

✅ 97,000+ employed across efficiency, solar, wind, grid, and fuels

✅ 75% earn above median; strong full-time opportunities

 

The 2020 Pennsylvania Clean Energy Employment Report has been released, and Gov. Tom Wolf is energized by it.

This "comes at an opportune time, as government and industry leaders look to strengthen Pennsylvania's workforce and economy in response to the challenges of the COVID-19 pandemic," Wolf said Monday in a prepared statement. "This detailed analysis of data and trends in clean energy employment ... demonstrates the sector was a top job generator statewide, and shows which industries were hiring and looking for trained workers."

Foremost among the findings, released Monday, is that the clean energy sector was responsible for adding 7,794 jobs from 2017 through 2019. That is an 8.7% average job growth rate, well above the 1.9% overall average in the state, according to a news release from Wolf's office.

This report lists employment data in five industries: energy efficiency; clean energy generation; alternative transportation; clean grid and storage; and clean fuels, while some cleaner states still import dirty electricity in regional markets.

The energy efficiency industry was the biggest clean energy employer in the state last year, with more than 71,400 state residents working in construction, technology and manufacturing jobs related to energy-efficient systems.

Solar energy workers comprised the largest share of the clean energy generation workforce – 35.4%, or 5,173 individuals. Solar employment increased 8.3% from 2017 to 2019, while there was a slight decline nationwide amid clean energy job losses reported in May.

Wind energy firms employed 2,937, and policy moves such as Ontario's clean electricity regulations signal broader market shifts, with more than 21% of those roles in manufacturing.

Job losses, though, were recorded in nuclear generation (minus 4.5%) and coal generation (minus 8.6%) over the two-year period, as electricity deregulation remains a point of debate in the sector. This mirrors national declines in both categories.

Federal efforts to support coal community revitalization are channeling clean energy projects to hard-hit regions.

Natural gas electric generation capacity doubled across Pennsylvania over the past decade; even as residents could face winter electricity price increases according to recent reports, employment still grew 13.4% from 2017 through 2019. But increasing output from unconventional wells has outpaced demand, sparking reductions in siting and drilling for new wells.

The Clean Energy Employment Report was released along with – and as part of – the 2020 Pennsylvania Energy Employment Report, which asserts that energy remains a large employer in the state, and new clean energy funding announcements underscore the sector's momentum. As of the last quarter of 2019, according to the larger report, energy accounted for 269,031 jobs, or 4.5% of the overall statewide workforce.

Wolf, in summary, said: "This report shows that workforce training investment decisions can benefit Pennsylvanians right now and position the state going forward to grow and improve livelihoods, the economy and our environment."

 

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