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Hydro-Quebec NECEC Transmission Line faces Maine PUC scrutiny over clean energy claims, greenhouse gas emissions, spillage capacity, resource shuffling, and Massachusetts contracts, amid opposition from natural gas generators and environmental groups debating public need.

Key Points

A $1B Maine corridor for Quebec hydropower to Massachusetts, debated over emissions, spillage, and public need.

✅ Maine PUC weighing public need and ratepayer benefits

✅ Emissions impact disputed: resource shuffling vs new supply

✅ Hydro-Quebec spillage claims questioned without data

As Maine regulators are deciding whether to approve construction of a $1 billion electricity corridor across much of western Maine, the Canadian hydroelectric utility poised to make billions of dollars from the project has been absent from the process.

This has left both opponents and supporters of the line arguing about how much available energy the utility has to send through a completed line, and whether that energy will help fulfill the mission of the project: fighting climate change.

And while the utility has avoided making its case before regulators, which requires submitting to cross-examination and discovery, it has engaged in a public relations campaign to try and win support from the region's newspapers.

Government-owned Hydro-Quebec controls dams and reservoirs generating hydroelectricity throughout its namesake province. It recently signed agreements to sell electricity across the proposed line, named the New England Clean Energy Connect, to Massachusetts as part of the state's effort to reduce its dependence on fossil fuels, including natural gas.

At the Maine Public Utilities Commission, attorneys for Central Maine Power Co., which would build and maintain the line, have been sparring with the opposition over the line's potential impact on Maine and its electricity consumers. Leading the opposition is a coalition of natural gas electricity generators that stand to lose business should the line be built, as well as the Natural Resources Council of Maine, an environmental group.

That unusual alliance of environmental and business groups wants Hydro-Quebec to answer questions about its hydroelectric system, which they argue can't deliver the amount of electricity promised to Massachusetts without diverting energy from other regions.

In that scenario, critics say the line would not produce the reduction in greenhouse gas emissions that CMP and Hydro-Quebec have made a central part of their pitch for the project. Instead, other markets currently buying energy from Hydro-Quebec, such as New York, Ontario and New Brunswick, would see hydroelectricity imports decrease and have to rely on other sources of energy, including coal or oil, to make up the difference. If that happened, the total amount of clean energy in the world would remain the same.

Opponents call this possibility "greenwashing." Massachusetts regulators have described these circumstances as "resource shuffling."

But CMP spokesperson John Carroll said that if hydropower was diverted from nearby markets to power Massachusetts, those markets would not turn to fossil fuels. Rather they would seek to develop other forms of renewable energy "leading to further reductions in greenhouse gas emissions in the region."

Hydro-Quebec said it has plenty of capacity to increase its electricity exports to Massachusetts without diverting energy from other places.

However, Hydro-Quebec is not required to participate -- and has not voluntarily participated -- in regulatory hearings where it would be subject to cross examinations and have to testify under oath. Some participants wish it would.

At a January hearing at the Maine Public Utilities Commission, hearing examiner Mitchell Tannenbaum had to warn experts giving testimony to "refrain from commentary regarding whether Hydro-Quebec is here or not" after they complained about its absence when trying to predict potential ramifications of the line.

"I would have hoped they would have been visible and available to answer legitimate questions in all of these states through which their power is going to be flowing," said Dot Kelly, a member of the executive committee at the Maine Chapter of the Sierra Club who has participated in the line's regulatory proceedings as an individual. "If you're going to have a full and fair process, they have to be there."

[What you need to know about the CMP transmission line proposed for Maine]

While Hydro-Quebec has not presented data on its system directly to Maine regulators, it has brought its case to the press. Central to that case is the fact that it's "spilling" water from its reservoirs because it is limited by how much electricity it can export. It said that it could send more water through its turbines and lower reservoir levels, eliminating spillage and creating more energy, if only it had a way to get that energy to market. Hydro-Quebec said the line would make that possible, and, in doing so, help lower emissions and fight climate change.

"We have that excess potential that we need to use. Essentially, it's a good problem to have so long as you can find an export market," Hydro-Quebec spokesperson Serge Abergel told the Bangor Daily News.

Hydro-Quebec made its "spillage" case to the editorial boards of The Boston Globe, The Portland Press Herald and the BDN, winning qualified endorsements from the Globe and Press Herald. (The BDN editorial board has not weighed in on the project).

Opponents have questioned why Hydro-Quebec is willing to present their case to the press but not regulators.

"We need a better answer than 'just trust us,'" Natural Resources Council of Maine attorney Sue Ely said. "What's clear is that CMP and HQ are engaging in a full-court publicity tour peddling false transparency in an attempt to sell their claims of greenhouse gas benefits."

Energy generators aren't typically parties to public utility commission proceedings involving the building of transmission lines, but Maine regulators don't typically evaluate projects that will help customers in another state buy energy generated in a foreign country.

"It's a unique case," said Maine Public Advocate and former Democratic Senate Minority Leader Barry Hobbins, who has neither endorsed nor opposed the project. Hobbins noted the project was not proposed to improve reliability for Maine electricity customers, which is typically the point of new transmission line proposals evaluated by the commission. Instead, the project "is a straight shot to Massachusetts," Hobbins said.

Maine Public Utilities Commission spokesperson Harry Lanphear agreed. "The Commission has never considered this type of project before," he said in an email.

In order to proceed with the project, CMP must convince the Maine Public Utilities Commission that the proposed line would fill a "public need" and benefit Mainers. Among other benefits, CMP said it will help lower electricity costs and create jobs in Maine. A decision is expected in the spring.

Given the uniqueness of the case, even the commission seems unsure about how to apply the vague "public need" standard. On Jan. 14, commission staff asked case participants to weigh in on how it should apply Maine law when evaluating the project, including whether the hydroelectricity that would travel over the line should be considered "renewable" and whether Maine's own carbon reduction goals are relevant to the case.

James Speyer, an energy consultant whose firm was hired by natural gas company and project opponent Calpine to analyze the market impacts of the line, said he has testified before roughly 20 state public utility commissions and has never seen a proceeding like this one.

"I've never been in a case where one of the major beneficiaries of the PUC decision is not in the case, never has filed a report, has never had to provide any data to support its assertions, and never has been subject to cross examination," Speyer said. "Hydro-Quebec is like a black box."

Hydro-Quebec would gladly appear before the Maine Public Utilities Commission, but it has not been invited, said spokesperson Abergel.

"The PUC is doing its own process," Abergel said. "If the PUC were to invite us, we'd gladly intervene. We're very willing to collaborate in that sense."

But that's not how the commission process works. Individuals and organizations can intervene in cases, but the commission does not invite them to the proceedings, commission spokesperson Lanphear said.

CMP spokesperson Carroll dismissed concerns over emissions, noting that Hydro-Quebec is near the end of completing a more than 15-year effort to develop its clean energy resources. "They will have capacity to satisfy the contract with Massachusetts in their reservoirs," Carroll said.

While Maine regulators are evaluating the transmission line, Massachusetts' Department of Public Utilities is deciding whether to approve 20-year contracts between Hydro-Quebec and that state's electric utilities. Those contracts, which Hydro-Quebec has estimated could be worth close to $8 billion, govern how the utility sells electricity over the line.

Dean Murphy, a consultant hired by the Massachusetts Attorney General's office to review the contracts, testified before Massachusetts regulators that the agreements do not require a reduction in global greenhouse gas emissions. Murphy also warned the contracts don't actually require Hydro-Quebec to increase the total amount of energy it sends to New England, as energy could be shuffled from established lines to the proposed CMP line to satisfy the contracts.

Parties in the Massachusetts proceeding are also trying to get more information from Hydro-Quebec. Energy giant NextEra is currently trying to convince Massachusetts regulators to issue a subpoena to force Hydro-Quebec to answer questions about how its exports might change with the construction of the transmission line. Hydro-Quebec and CMP have opposed the motion.

Hydro-Quebec has a reputation for guarding its privacy, according to Hobbins.

"It would have been easier to not have to play Sherlock Holmes and try to guess or try to calculate without having a direct 'yes' or 'no' response from the entity itself," Hobbins said.

Ultimately, the burden of proving that Maine needs the line falls on CMP, which is also responsible for making sure regulators have all the information they need to make a decision on the project, said former Maine Public Utilities Commission Chairman Kurt Adams.

"Central Maine Power should provide the PUC with all the info that it needs," Adams said. "If CMP can't, then one might argue that they haven't met their burden."

'They treat HQ with nothing but distrust'

If completed, the line would bring 9.45 terawatt hours of electricity from Quebec to Massachusetts annually, or about a sixth of the total amount of electricity Massachusetts currently uses every year (and roughly 80 percent of Maine's annual load). CMP's parent company Avangrid would make an estimated $60 million a year from the line, according to financial analysts.

As part of its legally mandated efforts to reduce carbon emissions and fight climate change, Massachusetts would pay the $950 million cost of constructing the line. The state currently relies on natural gas, a fossil fuel, for nearly 70 percent of its electricity, a figure that helps explain natural gas companies' opposition to the project.

A panel of experts recently warned that humanity has 12 years to keep global temperatures from rising above 1.5 degrees Celsius and prevent the worst effects of climate change, which include floods, droughts and extreme heat.

The line could lower New England's annual carbon emissions by as much as 3 million metric tons, an amount roughly equal to Washington D.C.'s annual emissions. Opponents worry that reduction could be mostly offset by increases in other markets.

But while both sides have claimed they are fighting for the environment, much of the debate features giant corporations with headquarters outside of New England fighting over the future of the region's electricity market, echoing customer backlash seen in other utility takeovers.

Hydro-Quebec is owned by the people of Quebec, and CMP is owned by Avangrid, which is in turn owned by Spanish energy giant Iberdrola. Leading the charge against the line are several energy companies in the Fortune 500, including Houston-based Calpine and Florida-based NextEra Energy.

However, only one side of the debate counts environmental groups as part of its coalition, and, curiously enough, that's the side with fossil fuel companies.

Some environmental groups, including the Natural Resources Council of Maine and Environment Maine, have come out against the line, while others, including the Acadia Center and the Conservation Law Foundation, are still deciding whether to support or oppose the project. So far, none have endorsed the line.

"It is discouraging that some of the environmental groups are so opposed, but it seems the best is the enemy of the good," said CMP's Carroll in an email. "They seem to have no sense of urgency; and they treat HQ with nothing but distrust."

Much of the environmentally minded opposition to the project focuses on the impact the line would have on local wildlife and tourism.

Sandi Howard administers the Say NO To NECEC Facebook page and lives in Caratunk, one of the communities along the proposed path of the line. She said opposition to the line might change if it was proven to reduce emissions.

"If it were going to truly reduce global CO2 emissions, I think it would be be a different conversation," Howard said.

Not the first choice

Before Maine, New Hampshire had its own debate over whether it should serve as a conduit between Quebec and Massachusetts. The proposed Northern Pass transmission line would have run the length of the state. It was Massachusetts' first choice to bring Quebec hydropower to its residents.

But New Hampshire's Site Evaluation Committee unanimously voted to reject the Northern Pass project in February 2018 on the grounds that the project's sponsor, Eversource, had failed to prove the project would not interfere with local business and tourism. Though it was the source of the electricity that would have traveled over the line, Hydro-Quebec was not a party to the proceedings.

In its decision, the committee noted the project would not reduce emissions if it was not coupled with a "new source of hydropower" and the power delivered across the line was "diverted from Ontario and New York." The committee added that it was unclear if the power would be new or diverted.

The next month, Massachusetts replaced Northern Pass by selecting CMP's proposed line. As the project came before Maine regulators, questions about Hydro-Quebec and emissions persisted. Two different analyses of CMP's proposed line, including one by the Maine Public Utility Commission's independent consultant, found the line would greatly reduce New England's emissions.

But neither of those studies took into account the line's impact on emissions outside of New England. A study by Calpine's consultant, Energyzt, found New England's emissions reduction could be mostly offset by increased emissions in other areas, including New Brunswick and New York, that would see hydroelectricity imports shrink as energy was redirected to fulfill the contract with Massachusetts.

'They failed in any way to back up those spillage claims'

Hydro-Quebec seemed content to let CMP fight for the project alone before regulators for much of 2018. But at the end of the year, the utility took a more proactive approach, meeting with editorial boards and providing a two-page letter detailing its "spillage" issues to CMP, which entered it into the record at the Maine Public Utilities Commission.

The letter provided figures on the amount of water the utility spilled that could have been converted into sellable energy, if only Hydro-Quebec had a way to get it to market. Instead, by "spilling" the water, the company essentially wasted it.

Instead of sending water through turbines or storing it in reservoirs, hydroelectric operators sometimes discharge water held behind dams down spillways. This can be done for environmental reasons. Other times it is done because the operator has so much water it cannot convert it into electricity or store it, which is usually a seasonal issue: Reservoirs often contain the most water in the spring as temperatures warm and ice melts.

Hydro-Quebec said that, in 2017, it spilled water that could have produced 4.5 terawatt hours of electricity, or slightly more than half the energy needed to fulfill the Massachusetts contracts. In 2018, the letter continued, Hydro-Quebec spilled water that could have been converted into 10.4 terawatts worth of energy. The company said it didn't spill at all due to transmission constraints prior to 2017.

The contracts Hydro-Quebec signed with the Massachusetts utilities are for 9.45 terawatt hours annually for 20 years. In its letter, the utility essentially showed it had only one year of data to show it could cover the terms of the contract with "spilled" energy.

"Reservoir levels have been increasing in the last 15 years. Having reached their maximum levels, spillage maneuvers became necessary in 2017 and 2018," said Hydro-Quebec spokesperson Lynn St. Laurent.

By providing the letter through CMP, Hydro-Quebec did not have to subject its spillage figures to cross examination.

Dr. Shaleen Jain, a civil and environmental engineering professor at the University of Maine, said that, while spilled water could be converted into power generation in some circumstances, spills happen for many different reasons. Knowing whether spillage can be translated into energy requires a great deal of analysis.

"Not all of it can be repurposed or used for hydropower," Jain said.

In December, one of the Maine Public Utility Commission's independent consultants, Gabrielle Roumy, told the commission that there's "no way" to "predict how much water would be spilled each and every year." Roumy, who previously worked for Hydro-Quebec, added that even after seeing the utility's spillage figures, he believed it would need to divert energy from other markets to fulfill its commitment to Massachusetts.

"I think at this point we're still comfortable with our assumptions that, you know, energy would generally be redirected from other markets to NECEC if it were built," Roumy said.

In January, Tanya Bodell, the founder and executive director of consultant Energyzt, testified before the commission on behalf of Calpine that it was impossible to know why Hydro-Quebec was spilling without more data.

"There's a lot of details you'd have to look at in order to properly assess what the reason for the spillage is," Bodell said. "And you have to go into an hourly level because the flows vary across the year, within the month, the week, the days. ...And, frankly, it would have been nice if Hydro-Quebec was here and brought their model and allowed us to see how this could help them to sell more."

Even though CMP and Hydro-Quebec's path to securing approval of the project does not go through the Legislature, and despite a Maine court ruling that energized Hydro-Quebec's export bid, lawmakers have taken notice of Hydro-Quebec's absence. Rep. Seth Berry, D-Bowdoinham, the House chairman of the Joint Committee On Energy Utilities and Technology and a frequent critic of CMP, said he would like to see Hydro-Quebec "show up and subject their proposal to examination and full analysis and public examination by the regulators and the people of Maine."

"They're trying to sell an incredibly lucrative proposal, and they failed in any way to back up those spillage claims with defensible numbers and defensible analysis," Berry said.

Berry was part of a bipartisan group of Maine lawmakers that wrote a letter to Massachusetts regulators last year expressing concerns about the project, which included doubts about whether the line would actually reduce global gas emissions. On Monday, he announced legislation that would direct the state to create an independent entity to buy out CMP from its foreign investors.

'No benefit to remaining quiet'

Hydro-Quebec would like to provide answers, but "there is always a commercially sensitive information concern when we do these things," said spokesperson Abergel.

"There might be stuff we can do, having an independent study that looks at all of this. I'm not worried about the conclusion," Abergel said. "I'm worried about how long it takes."

Instead of asking Hydro-Quebec questions directly, participants in both Maine and Massachusetts regulatory proceedings have had to direct questions for Hydro-Quebec to CMP. That arrangement may be part of Hydro-Quebec's strategy to control its information, said former Maine Public Utilities Commissioner David Littell.

"From a tactical point of view, it may be more beneficial for the evidence to be put through Avangrid and CMP, which actually doesn't have that back-up info, so can't provide it," Littell said.

Getting information about the line from CMP, and its parent company Avangrid, has at times been difficult, opponents say.

In August 2018, the commission's staff warned CMP in a legal filing that it was concerned "about what appears to be a lack of completeness and timeliness by CMP/Avangrid in responding to data requests in this proceeding."

The trouble in getting information from Hydro-Quebec and CMP only creates more questions for Hydro-Quebec, said Jeremy Payne, executive director of the Maine Renewable Energy Association, which opposes the line in favor of Maine-based renewables.

"There's a few questions that should have relatively simple answers. But not answering a couple of those questions creates more questions," Payne said. "Why didn't you intervene in the docket? Why are you not a party to the case? Why won't you respond to these concerns? Why wouldn't you open yourself up to discovery?"

"I don't understand why they won't put it to bed," Payne said. "If you've got the proof to back it up, then there's no benefit to remaining quiet."

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NRC Advanced Reactor Licensing streamlines a risk-informed, performance-based, technology-inclusive pathway for advanced non-light water reactors, aligning with NEIMA to enable predictable regulatory reviews, inherent safety, clean energy deployment, and industrial heat, hydrogen, and desalination applications.

Key Points

A risk-informed, performance-based NRC pathway streamlining licensing for advanced non-light water reactors.

✅ Aligned with NEIMA: risk-informed, performance-based, tech-inclusive

✅ Predictable licensing for advanced non-light water reactor designs

✅ Enables clean heat, hydrogen, desalination beyond electricity

The US Nuclear Regulatory Commission (NRC) voted 4-0 to approve the implementation of a more streamlined and predictable licensing pathway for advanced non-light water reactors, aligning with nuclear innovation priorities identified by industry advocates, the Nuclear Energy Institute (NEI) announced, and amid regional reliability measures such as New England emergency fuel stock plans that have drawn cost scrutiny.

This approach is consistent with the Nuclear Energy Innovation and Modernisation Act (NEIMA), a nuclear innovation act passed in 2019 by the US Congress calling for the development of a risk-informed, performance-based and technology inclusive licensing process for advanced reactor developers.

NEI Chief Nuclear Officer Doug True said: “A modernised regulatory framework is a key enabler of next-generation nuclear technologies that, amid ACORE’s challenge to DOE subsidy proposals in energy market proceedings, can help us meet our energy needs while protecting the climate. The Commission’s unanimous approval of a risk-informed and performance-based licensing framework paves the way for regulatory reviews to be aligned with the inherent safety characteristics, smaller reactor cores and simplified designs of advanced reactors.”

Over the last several years the industry’s Licensing Modernisation Project, sponsored by US Department of Energy, led by Southern Nuclear, and supported by NEI’s Advanced Reactor Regulatory Task Force, and influenced by a presidential order to bolster uranium and nuclear energy, developed the guidance for this new framework. Amid shifts in the fuel supply chain, including the U.S. ban on Russian uranium, this approach will inform the development of a new rule for licensing advanced reactors, which NEIMA requires.

“A well-defined licensing path will benefit the next generation of nuclear plants, especially as regions consider New England market overhaul efforts, which could meet a wide range of applications beyond generating electricity such as producing heat for industry, desalinating water, and making hydrogen – all without carbon emissions,” True noted.

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ABO Wind Tunisia 10MW Solar Project will build a photovoltaic park in Gabes with a STEG PPA, fixed tariff, 2,500 m grid connection, producing 18 million kWh annually, targeted for 2020 commissioning with local partners.

Key Points

A 10MW photovoltaic park in Gabes with a 20-year STEG PPA and fixed tariff, slated for 2020 commissioning.

✅ 18 million kWh/year; 2,500 m grid tie, 20-year fixed tariff

✅ Electricity supplied to STEG under PPA; 2020 commissioning

✅ Located in Gabes; built with local partners, 10MW capacity

ABO Wind has received a permit and a tariff for a 10MW photovoltaic project in Tunisia, amid global activity such as Spain's 90MW wind project now underway, which it plans to build and commission in 2020.

The solar park, in the governorate of Gabes, is 400km south of the country’s capital Tunis and aligns with renewable funding initiatives seen across developing markets.

The developer said it plans to build the project next year in close cooperation with local partners, as regional markets from North Africa to the Gulf expand, with Saudi Arabia boosting wind capacity as well.

ABO Wind department head Nicolas Konig said: “The solar park will produce more than 18 million kilowatt hours of electricity per year and will feed it into the grid at a distance of 2500 metres.”

The developer will conclude an electricity supply contract with the state-owned energy supplier (Societe tunisienne de l’electricite et du gaz (STEG), which will provide a fixed remuneration over 20 years, a model echoed by Germany's wind-solar tender for the electricity fed into the grid.

Earlier this year, ABO Wind had already secured a tariff for a wind farm with a capacity of 30MW in a tender, 35km south-east of Tunis, underscoring Tunisia's wind investments under its long-term plan.

The company is working on half a dozen Tunisian wind and solar projects, as institutions like the World Bank support wind growth in developing countries.

“We are making good progress on our way to assemble a portfolio of several ready-to-build wind and solar projects attractive to investors, as Saudi clean energy targets continue to expand globally,” said ABO Wind general manager responsible for international business development Patrik Fischer.

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EECBG Program Funding empowers states, Tribes, and local governments with DOE grants to deploy clean energy, energy efficiency, EV infrastructure, and community solar, cutting emissions, lowering utility bills, and advancing net-zero decarbonization.

Key Points

EECBG Program Funding is a $550M DOE grant for states, Tribes, and governments to deploy clean energy and efficiency.

✅ Supports EV infrastructure and community solar deployment

✅ Cuts emissions and lowers utility costs via efficiency

✅ Prioritizes Justice40 benefits for underserved communities

The Biden-Harris Administration, through the U.S. Department of Energy (DOE), today released a Notice of Intent announcing $550 million to support community-based clean energy in state, Tribal, and local governments — serving more than 250 million Americans. This investment in American communities, through the Energy Efficiency and Conservation Block Grant (EECBG) Program, will support communities across the country to develop local programming and deploy clean energy technologies to cut emissions, advance a 90% carbon-free electricity goal nationwide, and reduce consumers’ energy costs, and help meet President Biden’s goal of a net-zero economy by 2050. 

“This funding is a streamlined and flexible tool for local governments to build their electricity future with clean energy,” said U.S. Secretary of Energy Jennifer M. Granholm. “State, local, and Tribal communities nationwide will be able to leverage this funding to drive greater energy efficiency and conservation practices to lower utility bills and create healthier environments for American families.”   

The EECBG Program will fund 50 states, five U.S. territories, the District of Columbia, 774 Tribes, and 1,878 local governments in a variety of capacity-building, planning, and infrastructure efforts to reduce carbon emissions and energy use and improve energy efficiency in the transportation, building, and other related sectors. For example, communities with this funding can build out electric vehicle infrastructure and deploy community solar to serve areas that otherwise do not have access to electric vehicles or clean energy, particularly through a rural energy security program where appropriate.  

The $550 million made available through the Bipartisan Infrastructure Law (BIL) represents the second time that the EECBG Program has been funded, the first of which was through the American Recovery and Reinvestment Act of 2009. With this most recent funding, communities can build on prior investments and leverage additional clean energy funding from DOE, other federal agencies, and the private sector to achieve sustained impacts, supported by a Clean Electricity Standard where applicable, that can put their communities on a pathway to decarbonization. 

Through the EECBG Program and the Office of State and Community Energy Programs (SCEP), DOE will support the many diverse state, local, and tribal communities across the U.S., including efforts to revitalize coal communities through clean energy, as they implement this funding and other clean energy projects. To ensure no communities are left behind, the program aligns with President’s Justice40 initiative and efforts toward equity in electricity regulation to help ensure that 40% of the overall benefits of clean energy investments go to underserved and overburdened communities. 

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India Power Sector Payment Crisis strains utilities with electricity theft, discom arrears, coal dues, and subsidy burdens, triggering outages, load-shedding, and tariff stress as record heatwave demand tests grid reliability, billing compliance, and infrastructure upgrades.

Key Points

Linked payment shortfalls, theft, and subsidies driving arrears, outages, and planning gaps across Indias power grid.

✅ Discom arrears surpass Rs 1 lakh crore, straining cash flow

✅ Coal India unpaid, fuel risk rises and tariffs face pressure

✅ Outages and load-shedding worsen amid heatwave demand spike

India is among the world leaders in losing money to electricity theft. The country’s power sector also has a peculiar pattern of entities selling without getting the money on time, or nothing at all, while Manitoba Hydro debt highlights similar strains elsewhere. Coal India is owed about Rs 12,300 crore by power generation companies, which themselves have not been paid over Rs 1 lakh crore by distribution companies. The figures of losses suffered by discoms are much higher, even as UK network profits have drawn criticism, underscoring divergent market outcomes. The circuit does get completed somehow, but the uneven transaction, which defies business sense, introduces a disruptive strand that limits the scope for any future planning. Regular and unannounced shutdowns become the norm as the power supply falls short of demand, which this time is expected to touch record highs of 215-220 gigawatts amid the scorching heatwave, and cases like deferred BC Hydro costs illustrate how financial pressures accumulate.

In debt-ridden Punjab, the power subsidy bill is over Rs 10,000 crore, a large portion of which serves farmers. The AAP government plans to provide free electricity up to 300 units for every household from July 1, even as power bill cuts in Thailand show alternative approaches to affordability. The generous giveaways cannot camouflage the state of affairs. Thirty-three government departments had outstanding electricity bills of Rs 62 crore as on March 31, the end of the last financial year. With arrears of Rs 22.48 crore, the biggest defaulter was the Water and Sanitation Department. According to the Punjab State Power Corporation Limited, around 40 police stations and posts have been found to be stealing power or failing to clear the bills, while utility impersonation scams target consumers elsewhere. Customary warnings have been issued of snapping supply if the dues are not paid, even as utility penalties for disconnection delays underscore enforcement challenges, but ‘public interest’ and ‘essential services’ will ensure that such an eventuality does not arise.

The substantial fine imposed on a dera stealing power in Tarn Taran, along with the registration of an FIR, is exemplary action that needs to be carried forward. Change is tough, but a new way of working begins with those in positions of power leading by example, be it fixing the payment mechanism, upgrading infrastructure with smart grid initiatives in mind, minimising the use of electricity or a gradual switch to alternative energy sources.

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Build Back Better Act Energy Savings curb volatile fossil fuel heating bills by accelerating electrification and renewable electricity, insulating households from natural gas, propane, and oil price spikes while cutting emissions and lowering energy costs.

Key Points

BBBA policies expand clean power and electrification to curb volatility, lower bills, and cut emissions.

✅ Tax credits for renewables, EVs, and efficient all-electric homes

✅ Shields households from natural gas, propane, and heating oil spikes

✅ Cuts methane, lowers bills, and improves grid reliability and jobs

Experts are forecasting serious sticker shock from home heating bills this winter. Nearly 60 percent of United States’ households heat their homes with fossil fuels, including natural gas, propane, or heating oil, and these consumers are expected to spend much more this winter because of fuel price increases.

That could greatly burden many families and businesses already operating on thin margins. Yet homes that use electricity for heating and cooking are largely insulated from the pain of volatile fuel markets, and they’re facing dramatically lower price increases as a result.

Projections say cost increases for households could range anywhere from 22% to 94% more, depending on the fuel used for heating and the severity of the winter temperatures. But the added expenditures for the 41% of U.S. households using electricity for heating are much less stark—these consumers will see only a 6% price increase on average. The projected fossil fuel price spikes are largely due to increased demand, limited supply, declining fuel stores, and shifting investment priorities in the face of climate change.

The fossil fuel industry is already seizing this moment to use high prices to persuade policymakers to vote against clean energy policies, particularly the Build Back Better Act (BBBA). Spokespeople with ties to the fossil fuel industry and some consumer groups are trying to pin higher fuel prices on the proposed legislation even before it has passed, even as analyses show the energy crisis is not spurring a green revolution on its own, let alone begun impacting fuel markets. But the claim the BBBA would cost Americans and the economy is false.

The facts tell a different story. Adopting smart climate policies and accelerating the clean energy transition are precisely the solutions to counter this vicious cycle by ending our dependance on volatile fossil fuels. The BBBA will ensure reliable, affordable clean electricity for millions of Americans, in line with a clean electricity standard many experts advocate—a key strategy for avoiding future vulnerability. Unlike fossil fuels subject to the whims of a global marketplace, wind and sunshine are always free. So renewable-generated electricity comes with an ultra-low fixed price decades into the future.

By expanding clean energy and electric vehicle tax credits, creating new incentives for efficient all-electric homes, and dedicating new funding for state and local programs, the BBBA provides practical solutions that build on lessons from Biden's climate law to protect Americans from price shocks, save consumers money, and reduce emissions fueling dangerous climate change.

What’s really causing the gas price spikes?
The U.S. Energy Information Administration’s winter 2021 energy price forecasts project that homes heated with natural gas, fuel oil, and propane will see average price increases of 30%, 43%, and 54%, respectively. Those who heat their homes with electricity, on the other hand, should expect a modest 6% increase. At the pump, drivers are seeing some of the highest gas prices in nearly a decade as the U.S. energy crisis ripples through electricity, gas, and EV markets today. And the U.S. is not alone. Countries around the globe are experiencing similar price jumps, including Britain's high winter energy costs this season.

A closer look confirms the cause of these high prices is not clean energy or climate policies—it’s fossil fuels themselves.  

First, the U.S. (and the world) are just now feeling the effects of the oil and gas industry’s reduced fuel production and spending due to the pandemic. COVID-19 brought the world’s economies to a screeching halt, and most countries have not returned to pre-COVID economic activity. During the past 20 months, the oil and gas industry curtailed its production to avoid oversupply as demand fell to all-time lows. Just as businesses were reopening, stored fuel was needed to meet high demand for cooling during 2021’s hottest summer on record, driving sky-high summer energy bills for many households. February’s Texas Big Freeze also disrupted gas distribution and production.

The world is moving again and demand for goods and services is rebounding to pre-pandemic levels. But even with higher energy demand, OPEC announced it would not inject more oil into the economy. Major oil companies have also held oil and gas spending flat in 2021, with their share of overall upstream spending at 25%, compared with nearly 40% in the mid-2010s. And as climate change threats loom in the financial world, investors are reducing their exposure to the risks of stranded assets, increasingly diversifying and divesting from fossil fuels. 

Second, despite strong and sustained growth for renewable energy, energy storage, and electric vehicles, the relatively slow pace to adopt fossil fuel alternatives at scale has left U.S. households and businesses tethered to an industry well-known for price volatility. Today, some oil drillers are using profits from higher gas prices to pay back debt and reward shareholders as demanded by investors, instead of increasing supply. Rising prices for a limited commodity in high demand is generating huge profits for many of the world’s largest companies at the expense of U.S. households.

Because 48% of homes use fossil gas for heating and another 10% heat with propane and fuel oil, more than half of U.S. households will feel the impact of rising prices on their home energy bills. One in four U.S. households continues to experience a high energy burden (meaning their energy expenses consume an inordinate amount of their income), including risks of pandemic power shut-offs that deepen energy insecurity, and many are still experiencing financial hardships exacerbated by the pandemic. Those with inefficient fossil-fueled appliances, homes, and cars will be hardest hit, and many families with fixed- and lower-incomes could be forced to choose between heat or other necessities.

We have the solutions—the BBBA will unlock their benefits for all households

Short-term band-aids may be enticing, but long-term policies are the only way out of this negative feedback loop. Clean energy and building electrification will prevent more costly disasters in the future, but they’re the very solutions the fossil fuel industry fights at every turn. All-electric homes and vehicles are a natural hedge against the price spikes we’re experiencing today since renewables are inherently devoid of fuel-related price fluctuations.

RMI analysis shows all-electric single-family homes in all regions of the country have lower energy bills than a comparable mixed fuel-homes (i.e., electricity and gas). Electric vehicles also save consumers money. Research from University of California, Berkeley and Energy Innovation found consumers could save a total of $2.7 trillion in 2050—or $1,000 per year, per household for the next 30 years—if we accelerate electric vehicle deployment in the coming decade.

The BBBA would help deliver these consumer savings by expanding and expediting clean energy, while ensuring equitable adoption among lower-income households and underserved communities. Extending and expanding clean energy tax credits; new incentives for electric vehicles (including used electric vehicles); and new incentives for energy efficient homes and all-electric appliances (and electrical upgrades) will reduce up-front costs and spur widespread adoption of all-electric homes, buildings, and cars.

A combination of grants, incentives, and programs will promote private sector investments in a decarbonized economy, while also funding and supporting state and local governments already leading the way. The BBBA also allocates dedicated funding and makes important modifications (such as higher rebate amounts and greater point-of-purchase availability) to ensure these technologies are available to low-income households, underserved urban and rural communities, tribes, frontline communities, and people living in multifamily housing.

Finally, the BBBA proposes to make oil and gas polluters pay for the harm they are causing to people’s health and the climate through a methane fee. This fee would cost companies less than 1% of their revenue, meaning the industry would retain over 99% of its profits. In return return we’d see substantial reductions of a powerful greenhouse gas and a healthier environment in communities living near fossil fuel production. These benefits also come with a stronger economy—Energy Innovation analysis shows the methane fee would create more than 70,000 jobs by 2050 and boost gross domestic product more than $250 billion from 2023 to 2050.

The facts speak for themselves. Gas prices are rising because of reasons totally unrelated to smart climate and clean energy policies, which research shows actually lower costs. For the first time in more than a decade, America has the opportunity to enact a comprehensive energy policy that will yield measurable savings to consumers and free us from oil and gas industry control over our wallets.

The BBBA will help the U.S. get off the fossil fuel rollercoaster and achieve a stable energy future, ensuring that today’s price spikes will be a thing of the past. Proving, once and for all, that the solution to our fossil fuel woes is not more fossil fuels.

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