U.S. puts Canada in time crunch

By Toronto Star


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Canadian business leaders fear major economic disruption if this country does not get in step with an American move to extend daylight saving time.

The U.S. Congress quietly adopted a provision to extend daylight hours by two months after proponents argued the scheme would help curb energy use by cutting back on the need for artificial light in the evening. Under the legislation, part of a sweeping energy package, daylight saving time across most of the United States will now start on the first weekend in March and run through the last weekend in November. Daylight time now runs from April through October in Canada and the U.S.

"There is potential for huge confusion here, and we need to be vigilant, to look at the range of implications," said Len Crispino, president and CEO of the Ontario Chamber of Commerce.

The change, expected to take effect this fall, would mean clocks in Canada and the United States would be out of sync in March and November, causing scheduling headaches for travellers and TV viewers.

And should Canada decide to follow the American lead, farmers and rural schoolchildren, who already get up in the dark, would face even gloomier mornings.

But as things now stand, the implications for business are serious because the economies of the two countries are so integrated, said Crispino.

Businesses such as airlines, transportation and even Ontario's auto sector could be affected, since many automotive manufacturers use "just in time" delivery systems to get car parts to plants, Crispino said. And the Toronto Stock Exchange, for instance, would open and close one hour after New York's markets.

While business is waking up to the risk, the issue seems to have sneaked under the political radar in Canada. "This has not been an issue that Canadians have debated at any length," Prime Minister Paul Martin's spokesperson Scott Reid said recently.

"We'll monitor how the issue unfolds in the Congress with an eye to implications for Canadians and our industry. While most people — excepting vampires — favour more daylight there are serious issues of concern to the aviation and other industries."

Although Ontario's Attorney General Michael Bryant is said to be looking into a possible response by the province, the Prime Minister's Office was still trying to figure out yesterday which department or minister would be most concerned about the time discrepancy.

In fact, though many Canadians may think we're overgoverned, the potentially significant matter of who goes along with daylight time — moving the clock ahead an hour in the spring and back an hour in the fall — is largely left up to individual provinces, even to local municipalities, mostly on a voluntary basis. Saskatchewan, for instance, has always been a daylight time holdout, as have several communities in British Columbia and northern Quebec.

While Crispino agrees the move to extend daylight hours could lead to energy savings, his bigger concern is the additional costs for business.

Gillian Bentley, spokesperson for Calgary-based WestJet airlines, said the time change could be problematic for the carrier, especially for passengers on connecting flights, or if the airline flies into airports with night curfews.

"Obviously we would have to adjust our schedules accordingly for trans-border flights. But at this point, we're not sure exactly how much of an impact it will have," said Bentley.

Steve Kee, spokesperson for the Toronto Stock Exchange, said the exchange was monitoring events south of the border.

"If it became a competitive disadvantage to us, then we would react accordingly," said Kee.

Because of advances in technology, trading hours can be set at virtually any time, said Kee. However, the issue would be whether brokers on Bay Street would want to get up an hour earlier, for example, to go to work. In Vancouver, because of the western time zone difference, brokers are already going strong in the early morning hours.

The two U.S. congressmen who sponsored the bill, Michigan's Fred Upton and Massachusetts's Ed Markey, argued when they introduced it that the energy savings of extended daylight time could amount to 100,000 barrels of oil a day, or about 0.5 per cent of the U.S. daily oil consumption. This figure was based on experience from the oil crisis of the 1970s, when the U.S. temporarily extended daylight time as a similar, energy-saving measure.

Upton estimates the move will save the country $360 million (U.S.) for the extra 60 days that daylight time will be in effect.

Some provisions in the current energy bill are still under negotiation and it must go to the White House for the signature of President George W. Bush.

The last time the U.S. moved to extend daylight time was in 1986, when then-president Ronald Reagan signed a law that put daylight time into effect at the beginning of April, instead of the end of the month, as was the previous practice.

In Canada, nervous airlines, banks and other businesses began to fret about whether this country would go along with the change. Then, as now, it didn't seem to be a matter of pressing concern.

However, late in 1986, the Ontario government suddenly snapped to attention, passing a private member's bill that called for the province to go along with the U.S. time changes. Eventually, most of the rest of Canada also went along, and for the last eight years, daylight time has stretched from the beginning of April until the end of October.

In addition to saving energy, proponents also say extra light will cut down on crime rates and traffic fatalities. But parent organizations in the United States have raised objections because there would be more mornings during which they would be taking their children to school in the dark. American farmers, too, have voiced disapproval.

The loudest opposition, however, has come from the Air Transport Association, which has estimated that cash-strapped U.S. airlines could lose $147 million (U.S.) because they will lose European and, potentially, Canadian landing slots.

Under aviation regulations, landing slots can be maintained only if airlines use them regularly at the same time. At present, Europe and North American airlines have agreed an existing one-week gap in daylight times between the continents can be accommodated.

But Europe has already made clear it will not add another six weeks to that transition period, endangering the landing rights of a number of profitable U.S. overseas routes.

Jack Evans of the ATA said Canadian airline passengers also face a number of potential inconveniences.

He said passengers beginning in Canada and connecting to European or Asian destinations through the U.S. could find themselves without enough time to catch connectors or with far too much time — or with far fewer flight options as landing slots are lost.

Evans said he believed American lawmakers were moving ahead on the daylight saving extension without calculating the problems it causes for Canada and Latin America.

Saskatchewan has years of experience being out of sync, timewise. The province has opted to remain on Central Standard Time year round, so during the summer months it shares the same time zone as Alberta, and in the winter it is in the same time zone as Manitoba.

"It's really no big deal, you get used to it," said Cathy Gourlie, a spokesperson in the province's government relations department, which is responsible for Saskatchewan's Time Act.

"We don't have to change our clocks or our sleep times, but it does become an inconvenience when you're watching television and your program is on earlier than you thought."

Picking up friends at the Greyhound bus terminal can also be problematic, but "as long as you remember that for half a year the bus comes in at noon, and the other half of the year it comes in at 1, you'll be okay," she laughs.

But the issue of whether to opt for daylight time is still a very heated one in the province. Two years ago, Premier Lorne Calvert ruled out putting daylight time on a future referendum, saying the issue is too divisive to wade into.

As for interfering with business, Gourlie doesn't see much problem, since with interprovincial or international trade, "you're always dealing with people in different time zones anyway."

And when it comes to saving energy in Canada, a University of Toronto geography professor who specializes in energy efficiency says this country would see benefits similar to the U.S.

But Danny Harvey notes that most savings would come from lighting. And since lighting makes up only about 5 per cent of a typical residential household's electricity, the switch to two extra months won't have a "huge impact," he said. "If we turned off the lights in our office buildings at night, that would have a much bigger impact," he said.

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Power bill cut for 22m Thailand houses

Thailand Covid-19 Electricity Bill Relief offers energy subsidies, tariff cuts, and free power for small meters, helping work-from-home users as authorities waive charges and discount kWh rates via EGAT, MEA, PEA for three months.

 

Key Points

Program waiving or cutting household electricity bills for 22 million homes in March-May, easing work-from-home costs.

✅ Free power for meters <= 5 amps; up to 10M homes

✅ Up to 800 kWh: pay February rate; above, 50% discount

✅ >3,000 kWh: 30% discount; program valid March-May

 

The Thailand cabinet has formally approved energy authorities' decision to either waive or cut electricity charges, similar to B.C. electricity relief measures, for 22 million households where people are working at home because of the coronavirus disease.

Energy Minister Sontirat Sontijirawong said after the cabinet meeting on Tuesday that the ministers acknowledged the step taken by from the Energy Regulatory Commission, the Electricity Generating Authority of Thailand, the Metropolitan Electricity Authority and the Provincial Electricity Authority and noted parallels with Ontario's COVID-19 hydro plan rolled out to support ratepayers.

The measure would be valid for three months, from March to May, and cover 22 million households. It would cost the state 23.68 billion baht in lost revenue, he said, a pattern also seen with Ontario rate reductions affecting provincial revenues.


"The measure reduces the electricity charges burden on households. It is the cost of living of the people who are working from home to support the government's control of Covid-19," Mr Sontirat said.

The business sector also wants similar assistance, echoing sentiments from Ontario manufacturers during recent price reduction efforts. He said their requests were being considered.

Free electricity is extended to households with a power meter of no more than 5 amps. Up to 10 million households are expected to benefit, although issues like electricity payment challenges in India highlight different market contexts.

For households with a power meter over 5 amps, if their consumption does not exceed 800 units (kilowat hours), they will pay as much as they did in their February bill. The amount over 800 units will be subject to a 50 per cent discount, while elsewhere B.C. commercial consumption has fallen sharply.

Large houses that consume more than 3,000 units will get a 30 per cent discount, at a time when BC Hydro demand is down 10%.

 

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Demise of nuclear plant plans ‘devastating’ to Welsh economy, MP claims

Wylfa Nuclear Project Cancellation reflects Hitachi's withdrawal, pulling £16bn from North Wales, risking jobs, reshaping UK nuclear power plans as renewables grow and Chinese involvement rises amid shifting energy market policies.

 

Key Points

An indefinite halt to Hitachi's Wylfa Newydd nuclear plant, removing about £16bn investment and jobs from North Wales.

✅ Hitachi withdraws funding amid changing energy market costs

✅ Puts 400 local roles and up to 10,000 construction jobs at risk

✅ UK shifts toward renewables as nuclear project support stalls

 

Chris Ruane said Japanese firm Hitachi’s announcement this morning about the Wylfa project would take £16 billion of investment out of the region.

He said it was the latest in a list of energy projects which had been scrapped as he responded to a statement from business secretary Greg Clark.

Mr Ruane, the Labour member for the Vale of Clywd, said: “In his statement he said the Government are relying now more on renewables, can I put the North Wales picture to him; 1,500 wind turbines were planned off the coast of North Wales. They were removed, those plans were cancelled by the private sector.

“The tidal lagoons for Wales were key to the development of the Welsh economy – the Government itself pulled the support for the Swansea Bay tidal lagoon. That had a knock-on effect for the huge lagoon planned off the coast of North Wales.

“And now today we hear of the cancellation of a £16 billion investment in the North Wales economy. This will devastate the North Wales economy. The people of North Wales need to know that the Prime Minister is batting for them and batting for the UK.”

Mr Clark blamed the changing landscape of the energy market for today’s announcement, and said Wales has been a “substantial and proud leader” in renewable energy during the UK’s green industrial revolution over recent years.

But another Labour MP from North Wales, Albert Owen, of Ynys Mon, said the Wylfa plant’s cancellation in his constituency is putting 400 jobs at risk, as well as the “potential of 8-10,000 construction jobs”, as well as hundreds of operational jobs and 33 apprenticeships.

He asked Mr Clark: “Can I say straightly can we work together to keep this project alive, to ensure that we create the momentum so it can be ready for a future developer or this developer with the right mechanism?”

The minister replied that he and his officials would “work together in a completely open-book way on the options” to try and salvage the project.

But in the Lords, Labour former security minister Lord West of Spithead said the UK’s nuclear industry was in crisis, noting that Europe is losing nuclear power as well.

“In the 1950s our nation led the world in nuclear power generation and decisions by successive governments, of all hues, have got us in the position today where we cannot even construct a large civil nuclear reaction,” he told peers at question time.

Lord West asked: “Are we content that now the only player seems to be Chinese and that by 2035… we are happy for the Chinese to control one third of the energy supply of our nation?”

Business, Energy and Industrial Strategy minister Lord Henley said the Government had hoped for a better announcement from Hitachi but that was not the case.

He said costs in the nuclear sector were rising, amid setbacks at Hinkley Point C, while costs for many renewables were coming down and this was one of the reasons for the problem.

Tory former energy secretary Lord Howell of Guildford said the Chinese were in “pole position” for the rebuilding and replacement “of our nuclear fleet” and this would have a major impact on UK energy policy and plans to meet net zero targets in the 2030s.

Plaid Cymru’s Lord Wigley warned that putting the Wylfa Newydd on indefinite hold would cause economic planning blight in north-west Wales and urged the Government to raise the level of support allocated to the region.

Lord Henley acknowledged the announcement was not welcome but added: “We remain committed to nuclear power. We will look to see what we can do. We still have a great deal of expertise in this country and we can work on that.”

 

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Changes Coming For Ontario Electricity Consumers

Ontario Electricity Billing Changes include OEB-backed shifts to time-of-use or tiered pricing, landlord blanket elections, LDC implementation guidance, a customer choice webpage with a bill calculator, and ENDM rate mitigation messaging.

 

Key Points

They are OEB measures enabling TOU-to-tiered switching, landlord elections, LDC guidance, and ENDM bill messages.

✅ Option to switch from TOU to tiered pricing

✅ Landlord blanket elections on tenant turnover

✅ ENDM-led bill info and rate mitigation messaging

 

By David Stevens, Aird & Berlis LLP

Electricity consumers in Ontario may see a couple of electricity rate changes in their bills in the coming months.

First, as we have already discussed, as of November 1, 2020, regulated price plan customers will have the option to switch to "tiered pricing" instead of time-of-use (TOU) pricing structures. Those who switch to "tiered pricing" will see changes in their electricity bills.

The Ontario Energy Board (OEB) has now issued final amendments to the Standard Supply Service Code to support the customer election process necessary to switch from TOU pricing to tiered pricing. The main change from what was already published in previous OEB notices is that landlords will be permitted to make a "blanket election" between TOU pricing and tiered pricing that will apply each time a tenant's account reverts back to the landlord on turnover of the rental unit. In its most recent notice, the OEB acknowledges that implementing the new customer billing option as of Nov. 1 (less than two months from now) will be challenging and directs Local Distribution Companies (LDCs) who cannot meet this date to be immediately in touch with the OEB. Finally, the OEB indicates that there will be a dedicated "customer choice webpage for consumers, including a bill calculator" in place by early October.

Second, as of January 1, 2021 low-volume consumers will see additional messaging on their bills to inform them of available rate mitigation programs.

A recent proposal posted on Ontario's Regulatory Registry indicates that the Ministry of Energy, Northern Development and Mines (ENDM) proposes that LDCs and Utility Sub-Meter Providers will be required to include a new on-bill message for low-volume consumers that "will direct customers to ENDM's new web page for further information about how the province provides financial support to electricity consumers." This new requirement is planned to be in place as of January 1, 2021. In conjunction with this requirement, the ENDM plans to launch a new web page that will provide "up-to-date information about electricity bills," including information about rate mitigation programs available to consumers. Parties are invited to submit comments on the ENDM proposal by October 5, 2020.

 

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Gov. Greg Abbott touts Texas power grid's readiness heading into fall, election season

ERCOT Texas Fall Grid Forecast outlines ample power supply, planned maintenance outages, and grid reliability, citing PUC oversight and Gov. Abbott's remarks, with seasonal assessment noting mild demand yet climate risks and conservation alerts.

 

Key Points

ERCOT's seasonal outlook for Texas on fall power supply, outages, and reliability expectations under PUC oversight.

✅ Projects sufficient supply in October and November

✅ Many plants scheduled offline for maintenance

✅ Notes PUC oversight and Abbott's confidence

 

Gov. Greg Abbott said Tuesday that the Texas power grid is prepared for the fall months and referenced a new seasonal forecast by the state’s grid operator, which typically does not draw much attention to its fall and spring grid assessments because of the more mild temperatures during those seasons.

Tuesday’s new forecast by the Electric Reliability Council of Texas showed that there should be plenty of power supply to meet demand in October and November. It also showed that many Texas power plants are scheduled to be offline this fall for maintenance work. Texas power plants usually plan to go down in the fall and spring for repairs to improve reliability ahead of the more extreme temperatures in winter and summer, when Texans crank up their heat and air conditioning and raise demand for power.

ERCOT for at least a decade announced its seasonal forecasts, but did not do so on Tuesday. The grid operator stopped announcing the reports after the 2021 winter storm event. A spokesperson for the grid operator, which posted the report to its website midday without notifying the public or power industry stakeholders, said there were no plans to discuss the latest forecast and referred questions about it to the Public Utility Commission, which oversees ERCOT. Abbott appoints the board of the PUC.

Abbott on Tuesday expressed his confidence about the grid in a news release, which included photos of the governor sitting at a table with incoming ERCOT CEO Pablo Vegas, outgoing interim CEO Brad Jones and Public Utility Commission Chair Peter Lake.

“The State of Texas continues to monitor the reliability of our electric grid, and I thank ERCOT and PUC for their hard work to implement bipartisan reforms we passed last year and for their proactive leadership to ensure our grid is stronger than ever before,” Abbott said in the release.

Abbott has not previously shared or called attention to ERCOT’s forecasts as he did on Tuesday.

Up for reelection this fall, Abbott has faced continued criticism, including from the Sierra Club over his handling of the 2021 deadly power grid disaster, when extended freezing temperatures shut down natural gas facilities and power plants, which rely on each other to keep electricity flowing. The resulting blackouts left millions of Texans without power for days in the cold, and hundreds of people died.

ERCOT’s forecasts for fall and spring are typically the least worrisome seasonal forecasts, energy experts said, because temperatures are usually milder in between summer and winter, even as ERCOT has issued an RFP to procure winter capacity to address shortages, so demand for power usually does not skyrocket like it does during extreme temperatures.

But they’ve warned that climate change could potentially lead to more extreme temperatures during times when Texas hasn’t experienced such weather in the past. For example, in early May six power plants unexpectedly broke down when a spring heat wave drove power demand up and highlighted broader heat-related blackout risks across the grid. ERCOT asked Texans to conserve electricity at home at the time.

Abbott released the seasonal report at a time when he has asserted unprecedented control over ERCOT. Although he had no formal role in ERCOT’s search for a new permanent CEO, he put a stranglehold on the process, The Texas Tribune previously reported. Since the winter storm, Abbott’s office has also dictated what information about the power grid ERCOT has released to the public.

 

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Customers on the hook for $5.5 billion in deferred BC Hydro operating costs: report

BC Hydro Deferred Regulatory Assets detail $5.5 billion in costs under rate-regulated accounting, to be recovered from ratepayers, highlighting B.C. Utilities Commission oversight, audit scrutiny, financial reporting impacts, and public utility governance.

 

Key Points

BC Hydro defers costs as regulatory assets to recover from ratepayers, influencing rates and financial reporting.

✅ $5.5B in deferred costs recorded as net regulatory assets

✅ Rate impacts tied to B.C. Utilities Commission oversight

✅ Auditor General to assess accounting and governance

 

Auditor General Carol Bellringer says BC Hydro has deferred $5.5 billion in expenses that it plans to recover from ratepayers in the future, as rates to rise by 3.75% over two years.

Bellringer focuses on the deferred expenses in a report on the public utility's use of rate-regulated accounting to control electricity rates for customers.

"As of March 31, 2018, BC Hydro reported a total net regulatory asset of $5.455 billion, which is what ratepayers owe," says the report. "BC Hydro expects to recover this from ratepayers in the future. For BC Hydro, this is an asset. For ratepayers, this is a debt."

She says rate-regulated accounting is used widely across North America, but cautions that Hydro has largely overridden the role of the independent B.C. Utilities Commission to regulate rates.

"We think it's important for the people of B.C. and our members of the legislative assembly to better understand rate-regulated accounting in order to appreciate the impact it has on the bottom line for BC Hydro, for government as a whole, for ratepayers and for taxpayers, especially following a three per cent rate increase in April 2018," Bellringer said in a conference call with reporters.

Last June, the B.C. government launched a two-phase review of BC Hydro to find cost savings and look at the direction of the Crown utility, amid calls for change from advocates.

The review came shortly after a planned government rate freeze was overturned by the utilities commission, which resulted in a three per cent rate increase in April 2018.

A statement by BC Hydro and the government says a key objective of the review due this month is to enhance the regulatory oversight of the commission.

Bellringer's office will become BC Hydro's auditor next year — and will be assessing the impact of regulation on the utility's financial reporting.

"It is a complex area and confidence in the regulatory system is critical to protect the public interest," wrote Bellringer.

 

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Costa Rica hits record electricity generation from 99% renewable sources

Costa Rica Renewable Energy Record highlights 99.99% clean power in May 2019, driven by hydropower, wind, solar, geothermal, and biomass, enabling ICE REM electricity exports and reduced rates from optimized generation totaling 984.19 GWh.

 

Key Points

May 2019 benchmark: Costa Rica generated 99.99% of 984.19 GWh from renewables, shifting from imports to regional exports.

✅ 99.99% renewable share across hydro, wind, solar, geothermal, biomass

✅ 984.19 GWh generated; ICE suspended imports and exported via REM

✅ Geothermal output increased to offset dry-season hydropower variability

 

During the whole month of May 2019, Costa Rica generated a total of 984.19 gigawatt hours of electricity, the highest in the country’s history. What makes this feat even more impressive is the fact that 99.99% of this energy came from a portfolio of renewable sources such as hydropower, wind, biomass, solar, and geothermal.

With such a high generation rate, the state power company Instituto Costariccense de Electricidad (ICE) were able to suspend energy imports from the first week of May and shifted to exports, while U.S. renewable electricity surpassed coal in 2022 domestically. To date, the power company continues to sell electricity to the Regional Electricity Market (REM) which generates revenues and is likely to reduce local electricity rates, a trend echoed in places like Idaho where a vast majority of electricity comes from renewables.

The record-breaking power generation was made possible by optimization of the country’s renewable sources, much as U.S. wind capacity surpassed hydro capacity at the end of 2016 to reshape portfolios. As the period coincided with the tail end of the dry season, the geothermal quota had to be increased.

Costa Rica remains a leader in renewable power generation, whereas U.S. wind generation has become the most-used renewable source in recent years. In 2015, more than 98% of the country’s electrical generation came from renewable sources, while U.S. renewables hit a record 28% in April in one recent benchmark. Through the years, this figure has remained fairly constant despite dry bouts caused by the El Niño phenomenon, and U.S. solar generation also continued to rise.

 

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