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Reuters
22-04-2025
- Business
- Reuters
New England grid demand hits record low as rooftop solar kicks in
NEW YORK, April 22 (Reuters) - Power grid use in the far northeast United States registered an all-time low over the weekend as mild weather and rooftop solar panels slashed demand on the regional electrical system, grid operator ISO New England said on Tuesday. WHY IT MATTERS The U.S. power grid is shifting as climate change, the rise of renewable electricity generation and the electrification of buildings and industries like transportation upend long-held supply and demand trends. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. On April 20, power demand on the New England power grid dropped to 5,318 megawatts after three consecutive years of registering record lows, ISO New England, the grid operator, said in a statement. This record was more than 1,200 megawatts, or about 20%, lower than last year's. After reaching a trough in the afternoon, power demand more than doubled on the grid throughout the day as the sun set, rooftop solar energy diminished, and homes and business drew more power from the grid. At its peak on the day, so-called behind-the-meter solar peaked at about 6,600 megawatts. KEY QUOTE "The trend toward more 'duck curve' days, when demand is lowest in the afternoon instead of overnight, illustrates the region's changing resource mix, and the role different types of resources play over the course of a day," ISO New England said. New England is in the midst of a broader shift in consumption, with a longer-term move away from the traditional peaking demand in the summer towards winter peaks as more buildings incorporate electric heat pumps.
Boston Globe
14-03-2025
- Business
- Boston Globe
Hydro-Quebec still isn't exporting electricity to New England. Does it matter?
Last year, the vast majority — more than 90 percent — of the electricity used in New England was produced by generators in the region, according to The rest of our electricity comes from imports. Hydro-Quebec's In all, Hydro-Quebec imports represented about 5 percent of New England's net electricity use last year. Losing that amount of power isn't enough to threaten the region's electric grid in relatively mild weather, and an ISO New England spokesperson confirmed earlier this week that the pause from the Canadian utility isn't currently affecting reliability. Advertisement Hydro-Quebec previously told the Globe that the halt in electricity sales to New England's wholesale market was due to warmer weather making those sales less economical, not The issue of electricity exports came up during a conversation on Thursday that Quebec premier Francois Legault had with Governor Maura Healey, although the focus on the call was on the relationship between Massachusetts and Quebec. Legault, in a 'We had a productive conversation with Premier Legault about our shared commitment to growing our regional economy and harnessing affordable energy,' Healey said in a statement Friday. 'Massachusetts has a longstanding partnership with Quebec and other Canadian provinces on energy issues. We will continue this important dialogue in the face of President Trump's misguided and costly tariffs.' Advertisement Dana Gerber can be reached at
Yahoo
10-03-2025
- Business
- Yahoo
Blumenthal says Trump tariff proposal will drive up Connecticut energy costs
HARTFORD, Conn. (WTNH) — On Monday, U.S. Senator Richard Blumenthal will demand President Donald Trump rescind certain tariff proposals he says will drive up energy price for Connecticut consumers if implemented. The focus here is tariffs on Canadian energy. Blumenthal said a significant share of our state's energy is sourced from there and these tariffs could send already high prices skyrocketing. President Trump's new tariffs could impact Connecticut residents He said this is troublesome for Connecticut consumers who already face some of the highest electricity rates in the nation, with an average cost of about 28 cents per kilowatt-hour compared to the national average of about 16 cents per kilowatt-hour as of December 2024. Blumenthal said a big portion of Connecticut's electricity is sourced from Eastern Canadian hydropower, a cheaper alternative to higher priced natural gas. He also said the 10 to 25 percent tariffs Trump is proposing on Canadian energy will directly impact electricity costs here in the U.S. Public hearing on electricity rates held in Hartford With taxes, that could add up to $165 million in annual customer costs, according to an estimate from ISO New England. Sen. Blumenthal is set to discuss all of this at a press conference at 11:30 a.m. in Hartford. Again, he's demanding President Trump rescind what he calls 'cost-increasing tariffs.' He's also calling on the Federal Energy Regulatory Commission to block the implementation of these tariffs to protect consumers. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Reuters
05-03-2025
- Business
- Reuters
Trump's tariffs on Canada could make US power bills even pricier
NEW YORK, March 5 (Reuters) - Swelling U.S. power prices may rise even faster in some parts of the country if 10% energy tariffs imposed by the Trump administration this week hit Canadian electricity supplies and trigger retaliation, according to energy experts and grid operators. The U.S. imports about 1% of its total power needs, according to government data, but New York state and regions like New England rely much more heavily on electricity generated in Canada, meaning they could soon be delivering higher bills to utility customers. Ontario Premier Doug Ford, meanwhile, told media outlets this week that he was prepared to halt the transmission of electricity from his province to the U.S. - something that could crimp supply and drives prices even higher. "There are gross price implications and reliability implications," said Timothy Fox, an analyst at ClearView Energy Partners. The tariff fight between the U.S. and Canada, which are each others' biggest electricity trading partners, threatens to throw off a supply-and-demand balancing act that prevents blackouts and keeps power prices in check, according to grid operator filings and energy experts. The U.S. is a net importer of Canadian power, buying 2,700 gigawatt hours last year, or about 50% more than it sold to Canada, according to EIA data. In the U.S. Northeast, where the reliance on Canadian electricity is higher than most of the country, the consequences of pricier or curtailed electricity could be steeper, Fox said. "The NYISO (New York Independent System Operator) and neighboring system operators have serious concerns that applying export tariffs to electricity may have serious adverse effects on reliability and wholesale electric markets," New York's grid operator said in its filing with the Federal Energy Regulatory Commission. Still, grid operators in New York state and New England on Friday asked federal regulators for the ability to establish rules that would allow them to impose duties on Canadian electricity imports if ordered to do so by the U.S. government. ISO New England, which covers six states from Maine to Connecticut, told FERC that 10% tariffs on power would add $66 million in annual customer costs. The New England grid operator imported about 11% of its power from Canada over the last five years, according to data from its website. Household electricity costs in New England, which already has power supply constraints and strong demand, are about 29% higher than the national average. Multiple grid operators, which oversee wholesale power markets, told Reuters it was unclear whether the tariffs will apply to electricity because there is no known precedent for them and the White House did not explicitly say power would be targeted. "This is a complex situation with many moving parts," said Randy Burlingame, a spokesperson for ISO New England. The White House did not immediately respond to a request for comment. The California Independent System Operator (CAISO), which runs California's grid, and the Midcontinent Independent System Operator (MISO), which is in charge of the grid for the Midwest, said they are assessing the possibility of tariffs, but were unclear if - or how - they would apply to power markets. "This is a fluid situation, and it is unclear whether the U.S. import tariffs apply to imports of electricity from Canada, and it is uncertain whether or when this will be resolved," MISO spokesperson Brandon Morris said.
Yahoo
14-02-2025
- Business
- Yahoo
Why Forecast Accuracy Makes or Breaks Power Suppliers in Today's Market
Between plummeting temperatures and surging demand, the record-breaking Arctic blast that swept across the Northeast in January put power suppliers to the test. Their success in managing the volatility traces back to decisions made days and weeks earlier. Those with accurate forecasting models navigated the cold spell successfully. Others faced stark choices between absorbing massive losses or passing unexpected costs to customers. This scenario keeps playing out repeatedly in power markets, where success depends on predicting future demand with remarkable precision. The stakes are especially high during extreme weather events when real-time prices in the Electric Reliability Council of Texas (ERCOT) market can spike to nearly $2,000 per megawatt hour—roughly 40 times normal rates. For suppliers managing large customer portfolios, even a slight forecasting miss during these periods can trigger millions in unexpected costs. COMMENTARY The frequency of these extreme weather events continues to rise, with the National Oceanic and Atmospheric Administration (NOAA) reporting 2024 was the fourth-costliest on record, trailing 2017 ($395.9 billion), 2005 ($268.5 billion) and 2022 ($183.6 billion). According to Climate Central, an eye-opening 80% of major U.S. power outages from 2000 to 2023 were caused by weather-related events. All of this makes sophisticated forecasting capabilities more essential than ever for supplier stability. Power suppliers need to thread the needle when securing supply for their customers across diverse regional markets. While real-time markets occasionally offer better prices, their volatility makes them unsuitable as a primary procurement strategy. Think of it like gambling with the electric bill—sometimes you win, but the risk of massive losses makes it unsustainable. The day-ahead market provides more stability but still carries significant price risk during extreme weather events. Forward markets offer the most predictability but require accurate long-term forecasting to avoid over or under-hedging positions. POWWR data shows that day-ahead and real-time price spreads during the January freeze ranged from minimal gaps of a few dollars to differences exceeding $100 per megawatt hour. And that's just the start of the complexity. Each ISO market adds its own wrinkles to this picture. In ERCOT, suppliers can take hedges to real-time settlement, while markets like PJM and ISO New England typically settle hedges against day-ahead prices. ISO New England presents unique forecasting challenges due to limitations in accessing detailed generation data, while Texas benefits from advanced smart meter infrastructure providing near-real-time consumption data. Data quality is the bedrock of accurate power forecasting. Having clean, complete data puts an energy provider lightyears ahead in terms of forecasting success. The two most important metrics are the correct number of accounts and accurate historical usage for those accounts. Without this fundamental customer information in place, even sophisticated forecasting models struggle to deliver reliable results. The path to reliable data requires both sophisticated systems and dedicated personnel. Some suppliers now employ specialized staff who focus solely on data quality, working in tandem with billing system vendors to maintain data integrity. These teams actively monitor incoming data streams and address any anomalies that could affect forecast accuracy. Smart meter infrastructure plays an increasingly crucial role. In Texas, for example, suppliers can access consumption data directly through Smart Meter Texas, providing valuable timing advantages over those who manually sift through ERCOT data. This edge proves particularly valuable during extreme weather events when market conditions change rapidly. Beyond consumption patterns, effective forecasting requires a comprehensive view of customer behavior. Power suppliers must track customer movement across utilities, shifts between rate classes, and contract transitions. This broader market intelligence becomes especially vital for long-term forecasting, which guides strategic hedging decisions that typically carry greater financial implications than short-term market optimization. The ability to offer sustainable fixed-price contracts in power markets depends heavily on accurate demand forecasting. When suppliers can reliably predict usage patterns, they can provide customers with guaranteed rates while protecting their own margins, even during periods of extreme market volatility. This ability to maintain price stability becomes particularly valuable during weather events when real-time market prices can surge. The relationship between forecasting and financial stability extends beyond short-term market fluctuations. Suppliers that excel at demand prediction can develop more advanced hedging strategies and purchase power through a mix of forward over-the-counter markets and day-ahead markets to minimize exposure to volatile real-time pricing. While real-time markets occasionally offer better prices, most suppliers choose to pay a premium for the predictability that comes with forward purchasing — a strategy that depends entirely on confidence in their demand forecasts. The benefits of reliable forecasting flow both ways in the power market. Suppliers can confidently offer fixed-price contracts knowing they've properly hedged their positions, while customers gain protection from market swings without paying excessive premiums. In today's increasingly volatile market, where a single weather event can send prices soaring, the ability to accurately predict demand has become more than a competitive advantage — it's a requirement for long-term success. Suppliers that combine quality data with sophisticated forecasting capabilities give themselves a chance to be agile as weather patterns become more extreme and market complexity continues to grow. —Ian Palao is Vice President of Strategic Energy Services at POWWR. Sign in to access your portfolio
