Virginia Power spending $4 billion on reliability

By Richmond Times-Dispatch


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Dominion Virginia Power says it is spending $4 billion over three years to improve its ability to provide reliable service.

In a letter to its 2.3 million customers, Dominion Virginia Power CEO Paul D. Koonce said the company is focusing on electric circuits and areas where service reliability does not meet its system-wide average.

The electric utility, the state's largest, said its average system reliability was 99.97 percent in 2009 — an average customer would be without power for a total of about 2.6 hours in a year.

Dominion Virginia Power said the $4 billion is being used for:

• major generation projects, such as the $1.8 billion Virginia City plant being constructed in Wise County and the $619 million Bear Garden power station under way in Buckingham County;

• major electric transmission lines, such as the $255 million Meadow Brook-to-Loudoun and the $223 million Carson-Suffolk 500-kilovolt lines now under construction; and

• overall distribution system improvements.

Last year, Dominion Virginia Power "reconditioned over 350 miles of electrical circuits, including installing more than 1,000 new poles, 3,500 new lightning arrestors and other devices," Koonce said.

The utility said its distribution system's reliability has been improving since 2004, primarily through finding and fixing circuits where interruptions are more frequent.

Dominion Virginia Power's announcement of the spending on reliability measures comes as the State Corporation Commission takes up the regulated company's request for a $250.2 million rate increase. That would raise the typical residential customer's monthly bill by $5.22.

The SCC staff has said the company's rates should instead be cut by $365.3 million annually, lowering the typical residential customer's bill by $12.80 a month.

"While utilities are always capital-intensive businesses, we are and have been in a major building phase to accommodate growing demand on our system," company spokesman David Botkins said. "We have to plan ahead and spend now for the future."

Dominion Virginia Power needs 4,600 megawatts of new generating capacity by 2019 to meet energy demand, the company said.

State policy calls for ensuring the availability of reliable energy at reasonable cost. Virginia's electric-utility regulation law encourages power companies to invest in system improvements to ensure reliable service and provides for a fair return on those investments.

The company, the state attorney general's office and a group of large customers have also proposed a deal that would repay a Sept. 1 interim base-rate increase to customers and freeze rates at the pre-September 1 level, a one-year deal worth $397 million to ratepayers.

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Ontario introduces new 'ultra-low' overnight hydro pricing

Ontario Ultra-Low Overnight Electricity Rates cut costs for shift workers and EV charging, with time-of-use pricing, off-peak savings, on-peak premiums, kilowatt-hour details, and Ontario Energy Board guidance for homes and businesses across participating utilities.

 

Key Points

Ontario's ultra-low overnight plan: 2.4c/kWh 11pm-7am for EVs, shift workers; higher daytime on-peak pricing.

✅ 2.4c/kWh 11pm-7am; 24c/kWh on-peak 4pm-9pm

✅ Best for EV charging, shift work, night usage

✅ Available provincewide by Nov 1 via local utilities

 

The Ontario government is introducing a new ultra-low overnight price plan that can benefit shift workers and individuals who charge electric vehicles while they sleep.

Speaking at a news conference on Tuesday, Energy Minister Todd Smith said the new plan could save customers up to $90 a year.

“Consumer preferences are still changing and our government realized there was more we could do, especially as the province continues to have an excess supply of clean electricity at night when province-wide electricity demand is lower,” Smith said, noting a trend underscored by Ottawa's demand decline during the pandemic.

The new rate, which will be available as an opt-in option as of May 1, will be 2.4 cents per kilowatt-hour from 11 p.m. to 7 a.m. Officials say this is 67 per cent lower than the current off-peak rate, which saw a off-peak relief extension during the pandemic.

However, customers should be aware that this plan will mean a higher on-peak rate, as unlike earlier calls to cut peak rates, Hydro One peak charges remained unchanged for self-isolating customers.

The new plan will be offered by Toronto Hydro, London Hydro, Centre Wellington Hydro, Hearst Power, Renfrew Hydro, Wasaga Distribution, and Sioux Lookout Hydro by May. Officials have said this will be expanded to all local distribution companies by Nov. 1.

With the new addition of the “ultra low” pricing, there are now three different electricity plans that Ontarians can choose from. Here is what you have to know about the new hydro options:

TIME OF USE:
Most residential customers, businesses and farms are eligible for these rates, similar to BC Hydro time-of-use proposals in another province, which are divided into off-peak, mid-peak and on-peak hours.

This is what customers will pay as of May 1 according to the Ontario Energy Board, following earlier COVID-19 electricity relief measures that temporarily adjusted rates:

 Off-peak (Weekdays between 7 p.m. and 7 a.m. and on weekends/holidays): 7.4 cents per kilowatt-hour
 Mid-Peak (Weekdays between 7 a.m. and 11 a.m., and between 5 p.m. and 7 p.m.): 10.2 cents per kilowatt-hour
 On-Peak ( Weekdays 11 a.m. to 5 p.m.): 15.1 cents per kilowatt-hour

TIERED RATES
This plan allows customers to get a standard rate depending on how much electricity is used. There are various thresholds per tier, and once a household exceeds that threshold, a higher price applies. Officials say this option may be beneficial for retirees who are home often during the day or those who use less electricity overall.

The tiers change depending on the season. This is what customers will pay as of May 1:

 Residential households that use 600 kilowatts of electricity per month and non-residential businesses that use 750 kilowatts per month: 8.7 cents per kilowatt-hour.
 Residences and businesses that use more than that will pay a flat rate of 10.3 cents per kilowatt-hour


ULTRA-LOW OVERNIGHT RATES
Customers can opt-in to this plan if they use most of their electricity overnight.

This is what customers will pay as of May 1:

  •  Between 11 p.m. and 7 a.m.: 2.4 cents per kilowatt-hour
  •  Weekends and holidays between 7 a.m. and 11 p.m.: 7.4 cents per kilowatt-hour
  •  Mid-Peak (Weekdays between 7 a.m. and 4 p.m., and between 9 p.m. and 11 p.m.): 10.2 cents per kilowatt-hour
  •  On-Peak (weekdays between 4 p.m. and 9 p.m.): 24 cents per kilowatt-hour

More information on these plans can be found on the Ontario Energy Board website, alongside stable pricing for industrial and commercial updates from the province.

 

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Clean energy jobs energize Pennsylvania: Clean Energy Employment Report

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

 

Key Points

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

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

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

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

 

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

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

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

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

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

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

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

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

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

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

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

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

 

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US January power generation jumps 9.3% on year: EIA

US January power generation climbed to 373.2 TWh, EIA data shows, with coal edging natural gas, record wind output, record nuclear generation, rising hydro, and stable utility-scale solar amid higher Henry Hub prices.

 

Key Points

US January power generation hit 373.2 TWh; coal led gas, wind and nuclear set records, with solar edging higher.

✅ Coal 31.8% share; gas 29.4%; coal output 118.7 TWh, gas 109.6 TWh.

✅ Wind hit record 26.8 TWh; nuclear record 74.6 TWh.

✅ Total generation 373.2 TWh, highest January since 2014.

 

The US generated 373.2 TWh of power in January, up 7.9% from 345.9 TWh in December and 9.3% higher than the same month in 2017, Energy Information Administration data shows.

The monthly total was the highest amount in January since 377.3 TWh was generated in January 2014.

Coal generation totaled 118.7 TWh in January, up 11.4% from 106.58 TWh in December and up 2.8% from the year-ago month, consistent with projections of a coal-fired generation increase for the first time since 2014. It was also the highest amount generated in January since 132.4 TWh in 2015.

For the second straight month, more power was generated from coal than natural gas, as 109.6 TWh came from gas, up 3.3% from 106.14 TWh in December and up 19.9% on the year.

However, the 118.7 TWh generated from coal was down 9.6% from the five-year average for the month, due to the higher usage of gas and renewables and a rising share of non-fossil generation in the overall mix.

#google#

Coal made up 31.8% of the total US power generation in January, up from 30.8% in December but down from 33.8% in January 2017.

Gas` generation share was at 29.4% in the latest month, with momentum from record gas-fired electricity earlier in the period, down from 30.7% in December but up from 26.8% in the year-ago month.

In January, the NYMEX Henry Hub gas futures price averaged $3.16/MMBtu, up 13.9% from $2.78/MMBtu averaged in December but down 4% from $3.29/MMBtu averaged in the year-ago month.

 

WIND, NUCLEAR GENERATION AT RECORD HIGHS

Wind generation was at a record-high 26.8 TWh in January, up 29.3% from 22.8 TWh in December and the highest amount on record, according to EIA data going back to January 2001. Wind generated 7.2% of the nation`s power in January, as an EIA summer outlook anticipates larger wind and solar contributions, up from 6.6% in December and 6.1% in the year-ago month.

Utility-scale solar generated 3.3 TWh in January, up 1.3% from 3.1 TWh in December and up 51.6% on the year. In January, utility-scale solar generation made up 0.9% of US power generation, during a period when solar and wind supplied 10% of US electricity in early 2018, flat from December but up from 0.6% in January 2017.

Nuclear generation was also at a record-high 74.6 TWh in January, up 1.3% month on month and the highest monthly total since the EIA started tracking it in January 2001, eclipsing the previous record of 74.3 TWh set in July 2008. Nuclear generation made up 20% of the US power in January, down from 21.3% in December and 21.4% in the year-ago month.

Hydro power totaled 25.4 TWh in January, making up 6.8% of US power generation during the month, up from 6.5% in December but down from 8.2% in January 2017.

 

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Pandemic has already cost Hydro-Québec $130 million, CEO says

Hydro-Que9bec 2020 Profit Outlook faces COVID-19 headwinds as revenue drops, U.S. Northeast export demand weakens, and clean-energy infrastructure plans shift toward domestic investments, energy efficiency, EV charging stations, and grid upgrades to stabilize net income.

 

Key Points

A forecast of COVID-19 revenue declines, weaker U.S. exports, and a shift to energy efficiency and grid upgrades.

✅ Q1 profit fell 14%; net income $1.53B vs $1.77B

✅ Exports to U.S. Northeast weaker; revenue off ~$130M Mar-Jun

✅ Strategy: energy efficiency, EV charging, grid, dam upgrades

 

Hydro-Québec expects the coronavirus pandemic to chop “hundreds of millions of dollars” off 2020 profits, its new chief executive officer said.

COVID-19 has depressed revenue by about $130 million between March and June, Sophie Brochu said Monday, as residential electricity use rose even while overall consumption dropped. Shrinking electricity exports to the U.S. northeast are poised to compound the shortfall, she said.

“What we’re living through is not small. The impacts are real,” Brochu said on a conference call with reporters, noting that utilities such as Hydro One supported Ontario's COVID-19 response at the height of the pandemic. “I’m not talking about a billion. I’m talking about hundreds of millions. We have no idea how quickly the economy will restart. As we approach the fall we will have a better view.”

Hydro-Québec last month reported a 14-per-cent drop in first-quarter profit and warned full-year results would fall short of targets as the COVID-19 crisis weighs on power demand. Net income in the quarter was $1.53 billion compared with $1.77 billion a year ago, the company said.

Canada’s biggest electricity producer had earlier been targeting 2020 profit of between $2.8 billion and $3 billion, according to its current strategic plan and corporate structure currently in place.

The first quarter was the utility’s last under former CEO Eric Martel, who left to take over at jetmaker Bombardier Inc. Brochu, who previously ran Énergir, replaced him April 6.

To boost exports over time, Brochu said Hydro-Québec will look to strengthen ties with neighbours such as Ontario, where the Hydro One CEO is working to repair relations with government and investors, and the U.S. The CEO said she’s heartened by New York Governor Andrew Cuomo’s call last month for new power lines from Canada and upstate to promote clean energy.

“This is a clear, encouraging signal that must express itself through very concrete negotiations,” she said. “The United States is our backyard. This is true for Ontario, where key system staff lockdowns were even contemplated, and the Atlantic provinces as well. This is our ecosystem, and we intend to build on our footprint, on the relationships that we have.”

Though stricter environmental hurdles make it more complicated to get power lines built today than a decade ago, the CEO insists it’s still possible to sell electricity to neighbouring U.S. states.

“Is it more difficult today to build energy projects? The answer is yes,” she said. “Does this clog up the U.S. northeast market? Not at all. I believe this federation of ecosystems is very promising.”

In the meantime, Hydro-Québec is planning to speed up investments at home — for example, by building new charging stations that will be needed to serve a growing fleet of electric cars. The utility will also upgrade some of its Montreal-area facilities, as well as its massive dams on the Manicouagan River, Brochu said. The investments will result in additional capacity.

“Today we need to put water in the pump of Quebec, so we will concentrate our human and financial efforts here,” she said. “We are needed in Quebec.” 

Hydro-Québec is stepping up efforts to promote energy efficiency among its customer base, amid retroactive billing concerns, which Brochu said could postpone the need to build large dams.

“We have to move towards ‘no-regret moves.’ What’s a no-regret move? It’s energy efficiency,” Brochu said earlier Monday during a presentation to the Chamber of Commerce of Metropolitan Montreal, noting that Ontario debated peak rate relief for self-isolating customers. “This is healthy, it’s fundamental and it will contribute to Quebec’s economic rebound by lowering energy costs.”

Brochu also pledged to build a more diverse workforce after the company said last week that 8.2 per cent of staff belong to “visible and ethnic” minorities.

“This can be improved on,” she said. “What I’m expressing today is my determination, and that of the management team, to move the needle.”

 

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Climate change poses high credit risks for nuclear power plants: Moody's

Nuclear Plant Climate Risks span flood risk, heat stress, and water scarcity, threatening operations, safety systems, and steam generation; resilience depends on mitigation investments, cooling-water management, and adaptive maintenance strategies.

 

Key Points

Climate-driven threats to nuclear plants: floods, heat, and water stress requiring resilience and mitigation.

✅ Flooding threats to safety and cooling systems

✅ Heat stress reduces thermal efficiency and output

✅ Water scarcity risks limit cooling capacity

 

 

Climate change can affect every aspect of nuclear plant operations like fuel handling, power and steam generation and the need for resilient power systems planning, maintenance, safety systems and waste processing, the credit rating agency said.

However, the ultimate credit impact will depend upon the ability of plant operators to invest in carbon-free electricity and other mitigating measures to manage these risks, it added.
Close proximity to large water bodies increase the risk of damage to plant equipment that helps ensure safe operation, the agency said in a note.

Moody’s noted that about 37 gigawatts (GW) of U.S. nuclear capacity is expected to have elevated exposure to flood risk and 48 GW elevated exposure to combined rising heat, extreme heat costs and water stress caused by climate change.

Parts of the Midwest and southern Florida face the highest levels of heat stress, while the Rocky Mountain region and California face the greatest reduction in the availability of future water supply, illustrating the need for adapting power generation to drought strategies, it said.

Nuclear plants seeking to extend their operations by 20, or even 40 years, beyond their existing 40-year licenses in support of sustaining U.S. nuclear power and decarbonization face this climate hazard and may require capital investment adjustments, Moody’s said, as companies such as Duke Energy climate report respond to investor pressure for climate transparency.

“Some of these investments will help prepare for the increasing severity and frequency of extreme weather events, highlighting that the US electric grid is not designed for climate impacts today.”

 

 

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BC Hydro electricity demand down 10% amid COVID-19 pandemic

BC Hydro electricity demand decline reflects COVID-19 impacts across British Columbia, with reduced industrial load, full reservoirs, strategic spilling, and potential rate increases, as hydropower plants adjust operations at Seven Mile, Revelstoke, and Site C.

 

Key Points

A 10% COVID-19-driven drop in BC power use, prompting reservoir spilling, plant curtailment, and potential rate hikes.

✅ 10% load drop; industrial demand down 7% since mid-March

✅ Reservoirs near capacity; controlled spilling to mitigate risk

✅ Possible rate hikes; Site C construction continues

 

Elecricity demand is down 10 per cent across British Columbia, an unprecedented decline in commercial electricity consumption sparked by the COVID-19 pandemic, according to a BC Hydro report.

Power demand across hotels, offices, recreational facilities and restaurants have dwindled as British Columbians self isolate, and bill relief for residents and businesses was introduced during this period.

The shortfall means there's a surplus of water in reservoirs across the province.

"This drop in load in addition to the spring snow melt is causing our reservoirs to reach near capacity, which could lead to environmental concerns, as well as public safety risks if we don't address the challenges now," said spokesperson Tanya Fish.

Crews will have to strategically spill reservoirs to keep them from overflowing, a process that can have negative impacts on downstream ecosystems. Excessive spilling can increase fish mortality rates.

Spilling is currently underway at the Seven Mile and Revelstoke reservoirs. In addition, several small plants have been shut down.

Site C and hydro rates
According to the report, titled Demand Dilemma, the decline could continue into April 2021 and drop by another two per cent, even as a regulator report alleged BC Hydro misled oversight bodies.

Major industry — forestry, mining and oil and gas — accounts for about 30 per cent of BC Hydro's overall electricity load. Energy demand from these customers has dropped by seven per cent since mid-March, while in Manitoba a Consumers Coalition has urged rejection of proposed rate increases.

BC Hydro says a prolonged drop in demand could have an impact on future rates, which could potentially go up as the power provider looks to recoup deferred operating costs and financial losses.

In Manitoba, Manitoba Hydro's debt has grown significantly, underscoring the financial risks utilities face during demand shocks.

Fish said the crown corporation still expects there to be increased demand in the long-term. She said construction of the Site C Dam is continuing as planned to support clean-energy generation in the province. There are currently nearly 1,000 workers on-site.

 

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