Utility and Efficiency Businesses Take Key Step on New Utility Rate Designs

Site C Dam Electricity Demand underscores B.C.'s decarbonization path, enabling electrification of EVs, heat pumps, and industry, aligning with BC Hydro forecasts and 2030/2050 GHG targets to supply dependable, renewable baseload power.

Key Points

Projected clean power tied to Site C, driven by B.C. electrification to meet 2030 and 2050 greenhouse gas targets.

✅ Aligns with 25-30% by 2030 and 55-70% by 2050 GHG cuts

✅ Supports EVs, heat pumps, and industrial electrification

✅ Provides dependable baseload alongside efficiency gains

There are valid reasons not to build the Site C dam. There are also valid reasons to build it. One of the latter is the rapid increase in clean electricity needed to reduce B.C.’s greenhouse gas emissions from burning natural gas, gasoline, diesel and other harmful fossil fuel products.

Although former Premier Christy Clark casually avoided near-term emissions targets, Prime Minister Justin Trudeau has set Canadian targets for both 2030 and 2050, and cleaning up Canada's electricity is critical to meeting them. Studies by my research group at Simon Fraser University and other independent analysts show that B.C.’s cost-effective contribution to these national targets requires us to reduce our emissions 25 to 30 per cent by 2030 and 55 to 70 per cent by 2050 — an energy evolution involving, among other things, a much greater use of electricity in buildings, vehicles and industry.

Recent submissions to the Site C hearing have offered widely different estimates of B.C.’s electricity demand in the decade after the project’s completion in 2025, some arguing the dam’s output will be completely surplus to domestic need for years and perhaps decades, even though improved B.C.-Alberta grid links could help balance regional demand. Some of this variation in demand forecasts is understandable. Industrial demand is especially difficult to predict, dependent as it is on global economic conditions and shifting trade relations. And there are legitimate uncertainties about B.C. Hydro’s ability to reduce electricity demand by promoting efficient products and behaviour through its Power Smart program. But some of the forecasts appear to be deliberate exaggerations, designed to support fixed positions for or against Site C.

Our university-based research team models the energy system changes required to meet national and provincial emissions targets, and we have been comparing estimates of the electricity demand implications. These estimates are produced by academics, as well as by key institutions like B.C. Hydro, the National Energy Board, and the governments of Canada and B.C.

Most electricity forecasts for B.C., including the most recent by B.C. Hydro, do not assume that B.C. reduces its greenhouse gas emissions by 25 to 30 per cent by 2030 and 55 to 70 per cent by 2050. When we adjust Hydro’s forecast for just the low end of these targets, we find that in its latest, August 30, submission to the Site C hearing, which followed the premier’s over-budget go-ahead on the project, Hydro has underestimated the demand for its electricity by about three terawatt-hours in 2025, four in 2030 and 10 in 2035. Hydro’s forecast indicates that it will need the five terawatt-hours from Site C. Our research shows that even if Hydro’s demand forecast is too high, appropriate climate policy nationally and in B.C. will absorb all the electricity the dam can produce soon after its completion.

B.C. Hydro does not forecast electricity demand to 2050. But, studies by us and others show that B.C. electricity demand will be almost double today’s levels if we are to reduce emissions by 55 to 70 per cent, even amid a documented risk of missing the 2050 target, in just over three decades while our population, economy, buildings and equipment grow significantly. Most mid- and small-sized vehicles will be electric. Most buildings will be well insulated and heated by electric resistance or electric heat-pumps, either individually or via district heating systems. And many low temperature industrial applications will be electric.

Aggressive efforts to promote energy efficiency will make an important contribution, such that energy demand will not grow nearly as fast as the economy. But it is delusional to think that humans will stop using energy. Even climate policy scenarios in which we assume unprecedented success with energy efficiency show dramatic increases in the consumption of electricity, this being the most favoured zero-emission form of energy as a replacement for planet-destroying gasoline and natural gas.

The completion of the Site C dam is a complicated and challenging societal choice, and delay-related cost risks highlighted by the premier underscore the stakes. There is unbiased evidence and argument supporting either completion or cancellation. But let’s stick to the unbiased evidence. In the case of our 2030 and 2050 greenhouse gas reduction targets, such evidence shows that we must substantially increase our generation of dependable electricity. If the Site C dam is built, and if we are true to our climate goals, all its electricity will be used in B.C. soon after completion.

Mark Jaccard is a professor of sustainable energy in the School of Resource and Environmental Management at Simon Fraser University.

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Russia-Ukraine Energy Ceasefire explores halting strikes on power plants, safeguarding energy infrastructure and grids, easing humanitarian crises, stabilizing European markets, and advancing diplomatic talks on security, resilience, and critical infrastructure protection.

Key Points

A proposed pact to halt strikes on power plants, protect energy infrastructure, and stabilize grids and security.

✅ Shields power plants and grid infrastructure from attacks

✅ Eases humanitarian strain and improves winter resilience

✅ Supports European energy security and market stability

In a significant diplomatic development amid ongoing conflict, Russia and Ukraine are reportedly exploring the possibility of reaching an agreement to halt attacks on each other’s power plants. This potential cessation of hostilities could have far-reaching implications for the energy security and stability of both nations, as well as for the broader European energy landscape.

The Context of Energy Warfare

The conflict between Russia and Ukraine has escalated into what many analysts term "energy warfare," where both sides have targeted each other’s energy infrastructure. Such actions not only aim to undermine the adversary’s military capabilities but also have profound effects on civilian populations, leading to widespread power outages and humanitarian crises. Energy infrastructure has become a focal point in the conflict, with power plants and grids frequently damaged or destroyed.

The ongoing hostilities have raised concerns about energy security in Europe, with some warning of an energy nightmare if disruptions escalate, especially as many countries in the region rely on energy supplies from Russia. The attacks on power facilities exacerbate vulnerabilities in the energy supply chain, prompting calls for a ceasefire that encompasses energy infrastructure.

The Humanitarian Implications

The humanitarian impact of the conflict has been staggering, with millions of civilians affected by power outages, heating shortages, and disrupted access to essential services. The winter months, in particular, pose a grave challenge, as Ukraine prepares for winter amid ongoing energy constraints for vulnerable populations. A potential agreement to cease attacks on power plants could provide much-needed relief and stability for civilians caught in the crossfire.

International organizations, including the United Nations and various humanitarian NGOs, have been vocal in urging both parties to prioritize civilian safety and to protect critical infrastructure. Any agreement reached could facilitate aid efforts and enhance the overall humanitarian situation in affected areas.

Diplomatic Efforts and Negotiations

Reports indicate that diplomatic channels are being utilized to explore this potential agreement. While the specifics of the negotiations remain unclear, the idea of protecting energy infrastructure has been gaining traction among international diplomats. Key players, including European nations and the United States, with debates over U.S. energy security shaping positions, may play a pivotal role in mediating discussions.

Negotiating a ceasefire concerning energy infrastructure could serve as a preliminary step toward broader peace talks. By demonstrating goodwill through a tangible agreement, both parties might foster an environment conducive to further negotiations on other contentious issues in the conflict.

The Broader European Energy Landscape

The ramifications of an agreement between Russia and Ukraine extend beyond their borders. The stability of energy supplies in Europe is inextricably linked to the dynamics of the conflict, and the posture of certain EU states, such as Hungary's energy alliance with Russia, also shapes outcomes across the region. Many European nations have been grappling with rising energy prices and supply uncertainties, particularly in light of reduced gas supplies from Russia.

A halt to attacks on power plants could alleviate some of the strain on energy markets, which have experienced price hikes and instability in recent months, helping to stabilize prices and improve energy security for neighboring countries. Furthermore, it could pave the way for increased cooperation on energy issues, such as joint projects for renewable energy development or grid interconnections.

Future Considerations

While the prospect of an agreement is encouraging, skepticism remains about the willingness of both parties to adhere to such terms. The historical context of mistrust and previous violations of ceasefires, as both sides have accused each other of violations in recent months, raises questions about the durability of any potential pact. Continued dialogue and monitoring by international entities will be essential to ensure compliance and to build confidence between the parties.

Moreover, as discussions progress, it will be crucial to consider the long-term implications for energy policy in both Russia and Ukraine. The conflict has already prompted Ukraine to seek alternative energy sources and reduce its dependence on Russian gas, turning to electricity imports to keep the lights on, while Russia is exploring new markets for its energy exports.

The potential agreement between Russia and Ukraine to stop targeting each other’s power plants represents a glimmer of hope in a protracted conflict characterized by violence and humanitarian suffering. As both nations explore this diplomatic avenue, the implications for energy security, civilian safety, and the broader European energy landscape could be profound. Continued international support and monitoring will be vital to ensure that any agreement reached translates into real-world benefits for affected populations and contributes to a more stable energy future for the region.

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Massachusetts Solar Net Metering faces new demand charges and elimination of residential time-of-use rates under an MDPU order, as Eversource cites grid cost fairness while clean energy advocates warn of impacts on distributed solar growth.

Key Points

Policy letting solar customers net out usage with exports; MDPU now adds demand charges and ends TOU rates.

✅ New residential solar demand charges start Dec 31, 2018.

✅ Optional residential TOU rates eliminated by MDPU order.

✅ Eversource cites grid cost fairness; advocates warn slower solar.

A recent Massachusetts Department of Public Utilities' rate case order changes the way solar net metering works and eliminates optional residential time-of-use rates, stirring controversy between clean energy advocates and utility Eversource and potential consumer backlash over rate design.

"There is a lot of room to talk about what net-energy metering should look like, but a demand charge is an unfair way to charge customers," Mark LeBel, staff attorney at non-profit clean energy advocacy organization Acadia Center, said in a Tuesday phone call. Acadia Center is an intervenor in the rate case and opposed the changes.

The Friday MDPU order implements demand charges for new residential solar projects starting on December 31, 2018. Such charges are based on the highest peak hourly consumption over the course of a month, regardless of what time the power is consumed.

Eversource contends the demand charge will more fairly distribute the costs of maintaining the local power grid, echoing minimum charge proposals aimed at low-usage customers. Net metering is often criticized for not evenly distributing those costs, which are effectively subsidized by non-net-metered customers.

"What the demand charge will do is eliminate, to the extent possible, the unfair cross subsidization by non-net-metered customers that currently exists with rates that only have kilowatt-hour charges and no kilowatt demand, Mike Durand, Eversource spokesman, said in a Tuesday email. 

"For net metered facilities that use little kilowatt-hours, a demand charge is a way to charge them for their fair share of the cost of the significant maintenance and upgrade work we do on the local grid every day," Durand said. "Currently, their neighbors are paying more than their share of those costs."

It will not affect existing facilities, Durand said, only those installed after December 31, 2018.

Solar advocates are not enthusiastic about the change and see it slowing the growth of solar power, particularly residential rooftop solar, in the state.

"This is a terrible outcome for the future of solar in Massachusetts," Nathan Phelps, program manager of distributed generation and regulatory policy at solar power advocacy group Vote Solar, said in a Tuesday phone call.

"It's very inconsistent with DPU precedent and numerous pieces of legislation passed in the last 10 years," Phelps said. "The commonwealth has passed several pieces of legislation that are supportive of renewable energy and solar power. I don't know what the DPU was thinking."

 

TIME-OF-USE PRICING ELIMINATED

It does not matter when during the month peak demand occurs -- which could be during the week in the evening -- customers will be charged the same as they would on a hot summer day, LeBel said. Because an individual customer's peak usage does not necessarily correspond to peak demand across the utility's system, consumers are not being provided incentives to reduce energy usage in a way that could benefit the power system, Acadia Center said in a Tuesday statement.

However, Eversource maintains that residential customer distribution peaks based on customer load profiles do not align with basic service peak periods, which are based on Independent System Operator New England's peaks that reflect market-based pricing, even as a Connecticut market overhaul advances in the region, according to the MDPU order.

"The residential Time of Use rates we're eliminating are obsolete, having been designed decades ago when we were responsible for both the generation and the delivery of electricity," Eversource's Durand said.

"We are no longer in the generation business, having divested of our generation assets in Massachusetts in compliance with the law that restructured of our industry back in the late 1990s. Time Varying pricing is best used with generation rates, where the price for electricity changes based on time of day and electricity demand and can significantly alter electric bills for households," he said.

Additionally, only 0.02% of residential customers take service on Eversource's TOU rates and it would be difficult for residential customers to avoid peak period rates because they do not have the ability to shift or reduce load, according to the order.

"The Department allowed the Companies' proposal to eliminate their optional residential TOU rates in order to consolidate and align their residential rates and tariffs to better achieve the rate structure goal of simplicity," the MDPU said in the order.

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U.S. Power Grid Cybersecurity combats DHS-FBI flagged threats to energy infrastructure, with PJM Interconnection using ICS/SCADA segmentation, phishing defenses, incident response, and resilience exercises against Russia-linked attacks and pipeline intrusions.

Key Points

Strategies, controls, and training that protect U.S. electric infrastructure from cyber threats and disruptions.

✅ ICS/SCADA network segmentation and zero-trust architecture

✅ Employee phishing drills and incident response playbooks

✅ DOE-led grid exercises and threat intelligence sharing

The joint alert from the FBI and Department of Homeland Security last month warning that Russia was hacking into critical U.S. energy infrastructure, as outlined in six essential reads on Russian hacks from recent coverage, came as no surprise to the nation’s largest grid operator, PJM Interconnection.

“You will never stop people from trying to get into your systems. That isn’t even something we try to do.” said PJM Chief Information Officer, Tom O’Brien. “People will always try to get into your systems. The question is, what controls do you have to not allow them to penetrate? And how do you respond in the event they actually do get into your system?”

PJM is the regional transmission organization for 65 million people, covering 13 states, including Pennsylvania, and Washington D.C.

On a rainy day in early April, about 10 people were working inside PJM’s main control center, outside Philadelphia, closely monitoring floor-to-ceiling digital displays showing real-time information from the electric power sector throughout PJM’s territory in the mid-Atlantic and parts of the midwest, amid reports that hackers accessed control rooms at U.S. utilities.

#google#

Donnie Bielak, a reliability engineering manager, was overseeing things from his office, perched one floor up.

“This is a very large, orchestrated effort that goes unnoticed most of the time,” Bielak said. “That’s a good thing.”

But the industry certainly did take notice in late 2015 and early 2016, when hackers successfully disrupted power to the Ukrainian grid. The outages lasted a few hours and affected about 225,000 customers. It was the first publicly-known case of a cyber attack causing major disruptions to a power grid. It was widely blamed on Russia.

One of the many lessons of the Ukraine attacks was a reminder to people who work on critical infrastructure to keep an eye out for odd communications.

“A very large percentage of entry points to attacks are coming through emails,” O’Brien said. “That’s why PJM, as well as many others, have aggressive phishing campaigns. We’re training our employees.”

O’Brien doesn’t want to get into specifics about how PJM deals with cyber threats. But one common way to limit exposure is by having separate systems: For example, industrial controls in a power plant are not connected to corporate business networks, a separation underscored after breaches at U.S. power plants prompted reviews across the sector.

Since 2011, North American grid operators and government agencies have also done large, security exercises every two years. Thousands of people practice how they’d respond to a coordinated physical or cyber event, including rising substation attacks that highlight resilience gaps.

So far, nothing like that has happened in the U.S. It’s possible, but not likely, according to Robert M. Lee, a former military intelligence analyst, who runs the industrial cybersecurity firm Dragos.

“The more complex the system, the harder it is to have a scalable attack,” said Lee, who co-authored a report analyzing the Ukraine attacks. “If you wanted to take out a power generation station– that isn’t the most complex thing. Let’s say you cause an hour of outage. But now you want to cause two months of outages? That’s an exponential increase in effort required.”

For example, he said, it would very difficult for hackers to knock out power to the entire east coast for a long time. But briefly disrupting a major city is easier. That’s the sort of thing that keeps him up at night.

“I worry about an adversary getting into, maybe, Washington D.C.’s portion of the grid, taking down power for 30 minutes,” he said.

The Department of Energy is creating a new office focused on cybersecurity and emergency response, following the U.S. government’s condemnation of power grid hacking by Russia.

Deterrence may be one reason why there has not yet been a major attack on the U.S. grid, said John MacWilliams, a former senior DOE official who’s now a fellow at Columbia University’s Center on Global Energy Policy.

“That’s obviously an act of war,” he said. “We have the capability of responding either through cyber mechanisms or kinetic military.”

In the meantime, small-scale incidents keep happening.

This spring, another cyber attack targeted natural gas pipelines. Four companies shut down their computer systems, just in case, but they say no service was disrupted.

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UK Electricity Price Surge driven by wholesale gas costs, low wind output, and higher gas-fired generation, as National Grid boosts base load power to meet demand, lifting weekend prices toward decade highs.

Key Points

A sharp rise in UK power prices tied to gas spikes, waning wind, and higher reliance on gas-fired generation.

✅ Wholesale gas prices squeeze power, doubling weekend baseload.

✅ Wind generation falls to 3GW, forcing more gas-fired plants.

✅ Tariff hikes signal bill pressure and supplier strain.

The UK’s electricity market has followed the lead of surging wholesale gas prices this week to reach weekend highs, with UK peak power prices not seen in a decade across the market.

The power market has avoided the severe volatility which ripped through the gas market this week because strong winds helped to supply ample electricity to meet demand, reflecting recent record wind generation across the UK.

But as freezing winds begin to wane this weekend National Grid will need to use more gas-fired power plants to fill the gap, meaning the cost of generating electricity will surge.

Jamie Stewart, an energy expert at ICIS, said the price for base load power this weekend has already soared to around £80 per megawatt hour, almost double what one would expect to see for a weekend in March.

National Grid will increase its use of expensive gas-fired power by an extra 7GW to make up for low wind power, which is forecast to drop by two-thirds in the days ahead.

Wind speeds helped to protect the electricity system from huge price hikes on the neighbouring gas market on Thursday, by generating as much as 13GW by some estimates.

However, by the end of Friday this output will fall by almost half to 7GW and slump to lows of 3GW by Saturday, Mr Stewart said.

The power price was already higher than usual at £53/MWh last weekend even before the full force of the storms, including Storm Malik wind generation, hit Britain. That was still well above the more typical "mid-40s” price for this time of year, Mr Stewart added.

The twin price spikes across the UK’s energy markets has raised fears of household bill hikes in the months ahead, even as an emergency energy plan is not going ahead.

Late on Thursday Big Six supplier E.on quietly pushed through a dual-fuel tariff increase of 2.6%, to drive the average bill up to £1,153 from 19 April.

Energy supply minnow Bulb also increased prices by £24 a year for its 300,000 customers, blaming rising wholesale costs.

The UK has suffered two gas price shocks this winter, which is the first since the owner of British Gas shuttered the country’s largest gas storage facility at Rough off the Yorkshire coast.

A string of gas supply outages this week cut supplies to the UK just as freezing conditions drove demand for gas-heating a third higher than normal for this time of year.

It was the first time in almost ten years that National Grid was forced to issue a short supply warning to the market that supplies would fall short of demand unless factories agree to use less.

The twelve-year market price highs followed a pre-Christmas spike when the UK’s most important North Sea pipeline shut down at the same time as a deadly explosion at Europe’s most important gas hub, based in the Austrian town of Baumgarten.

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Western Grid Integration aligns CAISO with a regional transmission operator under FERC oversight, boosting renewables, reliability, and cost savings while respecting state energy policy, emissions goals, and utility regulation across the West.

Key Points

Western Grid Integration lets CAISO operate under FERC to cut costs, boost reliability, and accelerate renewables.

✅ Lowers wholesale costs via wider dispatch and resource sharing

✅ Improves reliability with regional balancing and reserves

✅ Preserves state policy authority under FERC oversight

A strong and timely endorsement for western grid integration forcefully rebuts claims that moving from a balkanized system with 38 separate entities to a regional operation could introduce environmental problems, raise costs, or, as critics warn, export California’s energy policies to other western states, or open state energy and climate policies to challenge by federal regulators. In fact, Yale University’s Environmental Protection Clinic identifies numerous economic and environmental benefits from allowing the California Independent System Operator to become a regional grid operator.

The groundbreaking report comprehensively examines the policy and legal merits of allowing the California Independent System Operator (CAISO) to become a regional grid operator, open to any western utility or generator that wants to join, as similar market structure overhauls proceed in New England.

The Yale report identifies the increasing constraints that today’s fragmented western grid imposes on system-wide electricity costs and reliability, addresses the potential benefits of integration, and evaluates  potential legal risks for the states involved. California receives particular attention because its legislature is considering the first step in the grid integration process, which involves authorizing the CAISO to create a fully independent board, even as it examines revamping electricity rates to clean the grid (other western states are unlikely to approve joining an entity whose governance is determined solely by California’s governor and legislature, as is the case now).

Elements of the report

The analysis examined all of California’s key energy and climate policies, from its cap on carbon emissions to its renewable energy goals and its pollution standards for power plants, and concludes that none would face additional legal risks under a fully integrated western grid. The operator of such a grid would be regulated by an independent federal agency (the Federal Energy Regulatory Commission)—but so is the CAISO itself, now and since its inception, by virtue of its extended involvement in interstate electricity commerce throughout the West. 

And if empowered to serve the entire region, the CAISO would not interfere with the longstanding rights of California and other states to regulate their utilities’ investments or set energy and climate policies. The study points out that grid operators don’t set energy policies for the states they serve; they help those states minimize costs, enhance reliability in the wake of California blackouts across the state, and avoid unnecessary pollution.

And as to whether an integrated grid would help renewable energy or fossil fuels, the report finds that renewable resources would be the inevitable winners, thanks to their lower operating costs, although the most important winners would be western utility customers, through lower bills, expanded retail choice options, and improved reliability.

Call to action

The Yale report concludes with what amounts to a call to action for California’s legislators:

“In sum, enhanced Western grid integration in general, and the emergence of a regional system operator in particular, would not expose California’s clean energy policies to additional legal risks. Shifting to a regional grid operator would enable more efficient, affordable and reliable integration of renewable resources without increasing the legal risk to California’s clean energy policies.”

The authors of the analysis, from the Yale Law School and the Yale School of Forestry and Environmental Studies, are Juliana Brint, Josh Constanti, Franz Hochstrasser. and Lucy Kessler. They dedicated months to the project, consulted with a diverse group of reviewers, and made the trek from New Haven to Folsom, CA, to visit the California Independent System Operator and interview key staff members.

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