TVA faces federal scrutiny over climate goals, electricity rates

Ontario electricity shortage is looming, RBC and IESO warn, as EV electrification surges, Pickering nuclear faces delays, and gas plants backstop expiring renewables, raising GHG emissions and grid reliability concerns across the province.

Key Points

A projected supply shortfall as demand rises from electrification, expiring contracts, and delayed nuclear capacity.

✅ RBC warns shortages as early as 2026, significant by 2030

✅ IESO sees EV-driven demand; 5,000-15,000 MW by 2035

✅ Gas reliance boosts GHGs; Pickering life extension assessed

In a fit of ideological pique, Doug Ford’s government spent more than $200 million to scrap more than 700 green energy projects soon after winning the 2018 election, amid calls to make clean, affordable power a central issue, portraying them as “unnecessary and expensive energy schemes.”

A year later, then Associate Energy Minister Bill Walker defended the decision, declaring, “Ontario has an adequate supply of power right now.”

Well, life moves fast. At the time, scrapping the renewable energy projects was criticized as short-sighted and wasteful, raising doubts about whether Ontario was embracing clean power in a meaningful way. It seems especially so now as Ontario confronts the reality of being short of electricity in the coming years.

How short? A recent report by RBC calls the situation “urgent,” saying that Canada’s most populous province could face energy shortages as early as 2026. As contracts for non-hydro renewables and gas plants expire, the shortages could be “significant” by 2030, the bank report said, with grid greening costs adding to the challenge.

The Independent Electricity System Operator (IESO), which manages the electrical supply in Ontario, says demand for electricity could rise at rates not seen in many years, as the government moves to add new gas plants to boost capacity. “Economic growth coming out of the pandemic, along with electrification in many sectors, is driving energy use up,” the agency said in a December assessment.

The good news is that demand is being driven, in part, by the transition to “green” power – carbon-emission-free electricity – by sectors such as transportation and manufacturing. That will help reduce emissions. Yet meeting that demand presents some challenges, prompting the province to outline a plan to address growing needs across the system. The shift to electric vehicles alone is expected to cause a spike in demand starting in 2030. By 2035, the province could need an additional 5,000 to 15,000 megawatts of electricity, the IESO estimates.

It was perhaps no surprise then to see the province announce last week that it wants to delay the long-planned closing of the Pickering nuclear plant by a year to 2026, even as others note the station is slated to close as planned. Operations beyond that would require refurbishing the facility. The province said it’s taking a fresh look at whether that would make sense to extend its life by another 30 years.

In the interim, the province will be forced to dramatically ramp up its reliance on natural gas plants for electricity generation – and, as analysts warn, Ontario’s power mix could get dirtier even before new non-emitting capacity is built, and in the process, increase greenhouse gas emissions from the energy grid by 400 per cent. Broader electrification is expected to produce “significant” GHG emissions reductions in Ontario over the next two decades, according to the IESO. Still, it’s working at cross-purposes if your electric car is charged by electricity generated by fossil fuels.

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Germany energy liquidity crisis is straining municipal utilities as gas and power prices surge, margin calls rise, and Russian supply cuts bite, forcing state support, interventions, and emergency financing to stabilize households and businesses.

Key Points

A cash squeeze on German municipal utilities as soaring gas and power prices trigger margin calls and funding gaps.

✅ Margin calls and spot-market purchases strain cash flow

✅ State liquidity lines and EU collateral support proposed

✅ Gazprom cuts, Uniper distress heighten default risks

Germany’s fears that soaring power prices and gas prices could trigger a deeper crisis is starting to get real. 

Several hundred local utilities are coming under strain and need support, according to the head of Germany’s largest energy lobby group. The companies, generally owned by municipalities, supply households and small businesses directly and are a key part of the country’s power and gas network.

“The next step from the government and federal states must be to secure liquidity for these municipal companies,” Kerstin Andreae, chairwoman of the German Association of Energy and Water Industries, told Bloomberg in Berlin. “Prices are rising, and they have no more money to pay the suppliers. This is a big problem.”

Germany’s energy crunch intensified over the weekend after Russia’s Gazprom PJSC halted its key gas pipeline indefinitely, a stark wake-up call for policymakers to reduce fossil fuel dependence. European energy prices have surged again amid concerns over shortages this winter and fears of a worst-case energy scenario across the bloc. 

Many utilities are running into financial issues as they’re forced to cover missing Russian deliveries with expensive supplies on the spot market. German energy giant Uniper SE, which supplies local utilities, warned it will likely burn through a 7 billion-euro ($7 billion) government safety net and will need more help already this month.

Some German local utilities have already sought help, according to a government official, who asked not to be identified in line with briefing rules.  

With Europe’s largest economy already bracing for recession, Chancellor Olaf Scholz’s administration is battling on several fronts, testing the government’s financial capacity. The ruling coalition agreed Sunday on a relief plan worth about 65 billion euros -- part of an emerging energy shield package to contain the fallout of surging costs for households and businesses. 

Starting in October, local utilities will have to pay a levy for the gas acquired, which will further increase their financial burden, Andreae said.

Margin Calls
European gas prices are more than four times higher than usual for this time of year, underscoring why rolling back electricity prices is tougher than it appears for policymakers, as Russia cuts supplies in retaliation for sanctions related to its invasion of Ukraine. When prices peak, energy companies have to pay margin calls, extra collateral required to back their trades.

Read more: Energy Trade Risks Collapsing Over Margin Calls of $1.5 Trillion

The problem has hit local utilities in other countries as well. In Austria, the government approved a 2 billion-euro loan for Vienna’s municipal utility last month. 

The European Union is also planning help, floating gas price cap strategies among other tools. The bloc’s emergency measures will include support for electricity producers struggling to find enough cash to guarantee trades, according to European Commission President Ursula von der Leyen.

The situation has worsened in Germany as some of the country’s big gas importers are reluctant to sell more supplies to some of municipal companies amid fears they could default on payments, Andreae said. 

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Grid Modernization drives utilities to integrate DER, AMI, and battery storage while balancing reliability, safety, and affordability; regulators pursue cost-benefit analyses, new rate design, and policy actions to guide investment and protect customer-owned resources.

Key Points

Upgrading the grid to manage DER with digital tools, while maintaining reliability, safety, and customer affordability.

✅ Cost-benefit analyses guide prudent grid investments

✅ AMI and storage deployments enable DER visibility and control

✅ Rate design reforms support customer-owned resources

Utilities’ pursuit of a modern grid, including the digital grid concept, to maintain the reliability and safety pillars of electricity delivery has raised a lot of questions about the third pillar — affordability.

Utilities are seeing rising penetrations of emerging technologies, highlighted in recent grid edge trends reports, like distributed solar, behind-the-meter battery storage, and electric vehicles. These new distributed energy resources (DER) do not eliminate utilities' need to keep distribution systems safe and reliable.

But the need for modern tools to manage DER imposes costs on utilities, prompting calls to invest in smarter infrastructure even as some regulators, lawmakers and policymakers are concerned those costs could drive up electricity rates.

The result is an increasing number of legislative and regulatory grid modernization actions aimed at identifying what is necessary to serve the coming power sector transformation and address climate change risks across the grid.

The rise of grid modernization

Grid modernization, which is supported by both conservatives and distributed energy resources advocates, got a lot of attention last year. According to the 2017 review of grid modernization policy by the North Carolina Clean Energy Technology Center (NCCETC), 288 grid modernization policy actions were proposed, pending or enacted in 39 states.

These numbers from NCCETC's first annual review of policy activity set a benchmark against which future years' activity can be measured.

The most common type of state actions, by far, were those that focused on the deployment of advanced metering infrastructure (AMI) and battery energy storage. Those are two of the 2017 trends identified in NCCETC’s 50 States of Grid Modernization report. But deployment of those technologies, while foundational to an updated grid, only begins to prepare distribution systems for the coming power sector transformation.

Bigger advances, including the newest energy system management tools, are being held back by 2017’s other policy actions requiring more deliberation and fact-finding, even as grid vulnerability report cards underscore the risks that modernization seeks to mitigate.

Utilities’ proposals to more fully prepare their grids to deliver 21st century technologies are being met with questions about completeness and cost.

Utilities are being asked to address these questions in comprehensive, public utility commission-led cost-benefit analyses and studies. This is also one of NCCETC’s top 2017 policy action trends for grid modernization. The outcome to date appears to be an increased, but still incomplete, understanding of what is needed to build a 21st century grid.

Among the top objectives of those driving the policy actions are resolving questions about private sector participation in grid modernizaton buildouts and developing new rate designs to protect and support customer-owned distributed energy resources. Actions on those topics are also on NCCETC’s list of 2017 policy trends.

Altogether, the trend list is dominated by actions that do not lead to completion of grid modernization but to more work on it.

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PG&E Wildfire Lawsuit alleges utility negligence, inadequate infrastructure maintenance, and faulty transmission lines, as victims seek compensation. Regulators investigate the blaze, echoing class actions after Victoria's Black Saturday mega-fires and utility oversight failures.

Key Points

PG&E Wildfire Lawsuit alleges utility negligence and power line faults, seeking victim compensation amid investigations.

✅ Alleged failure to maintain transmission infrastructure

✅ Spark reports and regulator filings before blaze erupted

✅ Class action parallels with Australia's Black Saturday

Victims of California's most destructive wildfire have filed a lawsuit accusing Pacific Gas & Electric Co. of causing the massive blaze, a move that follows the utility's 2018 Camp Fire guilty plea in a separate case.

The suit filed on Tuesday in state court in California accuses the utility of failing to maintain its infrastructure and properly inspect and manage its power transmission lines, amid prior reports that power lines may have sparked fires in California.

The utility's president said earlier the company doesn't know what caused the fire, but is cooperating with the investigation by state agencies, and other utilities such as Southern California Edison have faced wildfire lawsuits in California.

PG&E told state regulators last week that it experienced a problem with a transmission line in the area of the fire just before the blaze erupted.

A landowner near where the blaze began said PG&E notified her the day before the wildfire that crews needed to come onto her property because some wires were sparking, and the company later promoted its wildfire assistance program for victims seeking aid.

A massive class action after Australia's last mega-fire, Victoria's Black Saturday in 2009, saw $688.5 million paid in compensation to thousands of claimants affected by the Kilmore-Kinglake and Murrindindi-Marysville fires, partly by electricity company SP Ausnet, and partly by government agencies, while in California PG&E's bankruptcy plan won support from wildfire victims addressing compensation claims.

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Baltimore Substation Attack Plot highlights alleged neo-Nazi plans targeting electrical substations and the power grid, as FBI and DHS warn of domestic extremism threats to critical infrastructure, with arrests in Maryland disrupting potential sniper attacks.

Key Points

An alleged extremist plot to disable Baltimore's power grid by shooting substations, thwarted by federal arrests.

✅ Two suspects charged in Maryland conspiracy

✅ Targets included five substations around Baltimore

✅ FBI cites domestic extremism threat to infrastructure

A neo-Nazi in Florida and a Maryland woman conspired to attack several electrical substations in the Baltimore area, federal officials say.

Sarah Beth Clendaniel and Brandon Clint Russell were arrested and charged in a conspiracy to disable the power grid by shooting out substations via "sniper attacks," according to a criminal complaint from the U.S. Attorney's Office for the District of Maryland.

Clendaniel allegedly said she wanted to "completely destroy this whole city" and was planning to target five substations situated in a "ring" around Baltimore, the complaint said. Russell is part of a violent extremist group that has cells in multiple states, and he previously planned to attack critical infrastructure in Florida, the complaint said.

"This planned attack threatened lives and would have left thousands of Marylanders in the cold and dark," Maryland U.S. Attorney Erek Barron said in a press release. "We are united and committed to using every legal means necessary to disrupt violence, including hate-fueled attacks."

The news comes as concerns grow about an increase in targeted substation attacks on U.S. substations tied to domestic extremism.

What to know about substation attacks

Federal data shows vandalism and suspicious activities at electrical facilities soared nationwide last year, and cyber actors have accessed utilities' control rooms as well.

At the end of the year, attacks or potential attacks were reported on more than a dozen substations and one power plant across five states, and Symantec documented Russia-linked Dragonfly activity targeting the energy sector earlier. Several involved firearms.

In December, targeted attacks on substations in North Carolina left tens of thousands without power amid freezing temperatures, spurring renewed focus on protecting the U.S. power grid among officials. The FBI is investigating.

Vandalism at facilities in Washington left more than 21,000 without electricity on Christmas Day, even as hackers breached power-plant systems in other states. Two men were arrested, and one told police he planned to disrupt power to commit a burglary.

The Department of Homeland Security last year said domestic extremists had been developing "credible, specific plans" since at least 2020 and would continue to "encourage physical attacks against electrical infrastructure," and the U.S. government has condemned Russia for power grid hacking as well.

Last February, three neo-Nazis pleaded guilty to federal crimes related to a scheme to attack the grid with rifles, with each targeting a substation in a different region of the U.S., even as reports that Russians hacked into US electric utilities drew widespread attention.

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Toronto Flood Cleanup details the citywide response to storm damage after heavy rain, stressing drainage system upgrades, emergency services, transit disruptions, infrastructure repair, financial aid, insurance claims, and climate resilience planning for future weather.

Key Points

Toronto Flood Cleanup is the city's flood response, restoring infrastructure, aiding residents, and upgrading drainage.

✅ Emergency services and public works lead debris removal.

✅ Repairs to roads, bridges, transit, and utilities underway.

✅ Aid, insurance claims, and drainage upgrades prioritized.

Toronto is grappling with significant cleanup efforts following severe storms that unleashed heavy rains and caused widespread flooding across the city. The storms, which hit the area over the past week, have left a trail of damage and disruption, prompting both immediate response measures and longer-term recovery plans.

The intense rainfall began with a powerful storm system that moved through southern Ontario, with Sudbury Hydro crews working to reconnect service as the system pressed toward the GTA, delivering an unprecedented volume of water in a short period. The resulting downpours overwhelmed the city's drainage systems, leading to severe flooding in multiple neighborhoods. Streets, basements, and parks were inundated, with many areas experiencing water levels not seen in recent memory.

Emergency services were quickly mobilized to address the immediate impact of the floods. Toronto’s Fire Services, along with other first responders and skilled utility teams, as Ontario recently sent 200 workers to Florida to help restore power, were deployed to assist residents affected by the rising waters. Rescue operations were carried out to help people trapped in their homes or vehicles, and temporary shelters were set up for those displaced by the flooding.

The storm's impact was felt across various sectors of the city. Public transportation services were disrupted, as strong gusts led to significant power outages in parts of the region, with numerous subway stations and bus routes affected by the high water levels. Major roads were closed due to flooding, causing significant traffic delays and affecting daily commutes for many residents. Local businesses also faced challenges, with some forced to close their doors as a result of the water damage.

The city's infrastructure bore the brunt of the storm's fury. Several key infrastructure components, including roads, bridges, and utilities, suffered damage. The city's water treatment plants and sewage systems were stressed by the volume of water, raising concerns about potential contamination and the need for extensive maintenance and repair work.

In the wake of the flooding, the Toronto Municipal Government has launched a comprehensive cleanup and recovery effort. The city's Public Works Department is spearheading the operation, focusing on clearing debris, repairing damaged infrastructure, and restoring essential services, as Hydro One crews restore power to hundreds of thousands across Ontario. Teams of workers are diligently addressing the damage to roads and bridges, ensuring that they are safe for use and functioning properly.

Efforts are also underway to assist residents and businesses affected by the flooding. Financial aid and support programs are being implemented to help those who have suffered property damage or loss, including customers affected by Toronto power outages as repairs continue. The city is working closely with insurance companies to facilitate claims and provide relief to those in need.

In addition to the immediate cleanup, there is a heightened focus on evaluating and improving the city's flood management systems. The recent storms have highlighted vulnerabilities in Toronto’s infrastructure, prompting calls for enhanced flood prevention measures. City officials and urban planners are assessing the current drainage systems and exploring ways to bolster their capacity to handle future extreme weather events.

The storms have also sparked discussions about the broader implications of climate change and its impact on urban areas. Experts suggest that increasingly severe weather events, including heavy rainfall and flooding, may become more common, as seen with Houston's extended power outage after severe storms, as global temperatures rise. This has led to a call for more resilient and adaptable infrastructure to better withstand such events.

Community organizations and volunteers have played a vital role in the recovery process. Local groups have come together to support their neighbors, providing assistance with cleanup efforts, distributing supplies, and offering emotional support to those affected by the disaster. Their contributions underscore the importance of community solidarity in times of crisis.

As Toronto works towards recovery, there is a clear recognition of the need for a comprehensive strategy to address both the immediate and long-term challenges posed by severe weather events. The city’s response will involve not only repairing the damage caused by this storm but also investing in infrastructure improvements, drawing lessons from London power outage disruption cases to harden critical systems, and adopting measures to mitigate the impact of future floods.

In summary, the severe storms that recently struck Toronto have led to widespread flooding and significant disruption across the city. The immediate response has involved extensive cleanup efforts, damage assessment, and support for affected residents and businesses. Looking ahead, Toronto faces the challenge of enhancing its flood management systems and preparing for the potential impacts of climate change. The collective efforts of emergency services, city officials, and community members will be crucial in ensuring a swift recovery and building resilience against future storms.

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