investor owned utilities (IOU)

By Ashley Dawson - Truthout, July 20, 2022

The Supreme Court’s recent ruling in West Virginia v. EPA dismantles one of the last regulatory tools remaining to cut carbon emissions on a federal scale in the U.S. With the failure of the Democrats to pass significant legislation and the specter of looming defeats in midterm elections, it’s now up to progressive cities and states to take the lead in fighting the climate crisis.

We got close to breaking ground on such an alternative state-level strategy this year in New York. In May, the State Senate passed the Build Public Renewables Act. The bill mandates the state’s New Deal-era public power provider — the New York Power Authority (NYPA) — to generate all of its electricity from clean energy by 2030. It also sets up a process that would allow the New York Power Authority to build and own renewables while shutting down polluting infrastructure. Although it is the largest publicly owned utility in the country, with a track record of providing the most affordable energy in the state, the New York Power Authority cannot legally own or build new utility-scale renewable generation projects at present because the state limits the public power utility to owning only six large utility-scale projects of 25 megawatts or more. This is because renewable energy developers wanted to limit competition from the New York Power Authority. The Build Public Renewables Act would remove this restriction and unleash the New York Power Authority’s game-changing power.

The Build Public Renewables Act had enough votes to pass in the Assembly and move to the governor’s desk to be signed, but Speaker Carl Heastie refused to bring the bill to a vote. Stung by criticism of this undemocratic move and over the tens of thousands of dollars in campaign donations he has taken from fossil fuel interests, Speaker Heastie has called a special hearing on the Build Public Renewables Act for late July. The Public Power NY campaign is calling for Heastie and Gov. Kathy Hochul to call a special session so that the Build Public Renewables Act can be passed.

Three years ago, when the Public Power NY campaign began work, things looked a lot more hopeful on the federal level. Presidential hopefuls like Jay Inslee centered his plan for a clean energy economy on community-owned and community-led renewables while Bernie Sanders’s climate plan called for 100 percent public power. Sanders wanted to reach this goal quickly and efficiently by using public funding and infrastructure rather than leaving the transition up to corporate investors, who have failed the public miserably.

By Sean Sweeney - New Labor Forum, July 18, 2022

How can the world end energy poverty in the Global South and simultaneously reduce greenhouse gas emissions to fight climate change? In 2021, 860 million people had no access to electricity. [1] Today, a third of all humanity lacks access to reliable power. Roughly 2.6 billion people heat their homes with polluting fuels and technologies, and using traditional stoves fueled by charcoal, coal, crop waste, dung, kerosene, and wood.[2] The majority of families in the Global South are today able to turn on an electric light—and therefore have “access to electricity” for at least some hours in the day—but for many that is as far as it goes. For other basic needs, dirty and perhaps life-threatening energy continues to be the norm.

The urgency of providing energy to the great numbers of people in the Global South who lack it runs headlong into the necessity to divert climate disaster by reducing worldwide carbon emissions. It is this challenge that sits at he center of current debates on “sustainable development.” For some years, the standard answer from the climate policy world has been the following: the Global South is well positioned to “leapfrog” the phase of centralized energy and jump feet first into the transition to modern renewables, in the same way as mobile phones have proliferated in the developing world without first having to install traditional land-line infrastructure.[3] Whereas large nuclear, coal, and gas-fired power stations and hydroelectric dams take years to build, by comparison wind, solar, and battery technologies are small, easy to install, and, the argument goes, increasingly affordable. Rural communities without electricity can set up stand-alone “micro-grids,” so there is no need for traditional transmission and distribution grids which are expensive and inefficient. The Global South—which refers broadly to Africa, Latin America and the Caribbean, the Pacific Islands, and the developing countries in Asia—is blessed with so much sun and wind, there is no reason why energy poverty cannot be consigned to history relatively quickly.[4]

That is the good news. The bad news is that it is not happening, and there are few signs that it will.

By staff - Nuclear Information and Resource Service, June 21, 2022

Over 170 organizations, including Beyond Nuclear, North American Water Office, Food & Water Watch, Institute for Policy Studies Climate Policy Program, Nuclear Energy Information Service (NEIS), Center for Biological Diversity, International Marine Mammal Project of Earth Island Institute, Nuclear Information and Resource Service (NIRS) and more sent a letter to Secretary of Energy Jennifer Granholm opposing the misuse of the Department of Energy’s Civil Nuclear Credit program (CNC) to dismantle the fossil-free phaseout and just transition plan for the Diablo Canyon Nuclear Power Plant. 

The CNC was created by the bipartisan Infrastructure Investment and Jobs Act (IIJA) to mitigate potential greenhouse gas emissions (GHG) increases due to the closure of unprofitable nuclear reactors that operate in competitive electricity markets. The letter explains how applying the CNC program to Diablo Canyon would violate the letter and intent of the law. The nuclear power plant is not eligible for funds under the CNC program because it does not meet the basic requirements of the IIJA, nor those of the CNC program guidance DOE published to implement the program. 

The letter highlights climate, economic, environmental justice, and power supply concerns with abandonment of the just transition agreement dictating the planned closure of Diablo Canyon’s nuclear reactors in 2024 and 2025. 

Over 50 organizations from the State of California signed onto the letter, including San Luis Obispo Mothers for Peace, Physicians for Social Responsibility-Los Angeles, SoCal 350 Climate Action, Tri-Valley CAREs, Physicians for Social Responsibility/Sacramento, San Francisco Bay Physicians for Social Responsibility, Oceanic Preservation Society, Electric Vehicle Association of CA Central Coast, Californians for Energy Choice, Parents Against Santa Susana Field Lab and more. 

Tim Judson, NIRS executive director said, “Diablo Canyon’s planned phaseout and just transition accelerates California’s climate and renewable energy goals, supports Diablo workers and local communities, and promotes economic and environmental justice. Misusing the CNC program to unravel that progress would betray President Biden’s commitments to climate and environmental justice.” He added, “The Diablo Canyon phaseout plan which California is implementing is a just transition model DOE should promote instead of seeking to preempt it. The basis for the plan shows how phasing out nuclear power plants along with fossil fuel generation can help accelerate emissions reductions, the growth of the renewable energy economy, and a just and equitable transition for workers and communities. Is DOE afraid to let that happen while it is spending billions of dollars to promote the idea that we need to invest in overly expensive, failure-prone nuclear power plants?”

By Sean Sweeney, et. al. - Labor Network for Sustainability, May 31, 2022

Web Editor's Note: this webinar discussion focuses on TUED Working Paper #14. Some of the arguments made by the presenters seem to frame advocates of locally controlled, decentralized distributed energy as "unwittingly plaing into the hands of neoliberalism", which is a debatable position (and one that some of the other attendeees push back on). 

By various - Trade Unions for Energy Democracy, April 19, 2022

By staff - Trade Unions for Energy Democracy, April 5, 2022

At its recent 17th National Congress, South Africa’s National Union of Mineworkers (NUM) adopted a bold position in favor of keeping the country’s electrical power utility Eskom fully public.

Attended by roughly 750 delegates, the three-day congress — held in Boksburg, South Africa, from March 30th to April 1st, 2022 — adopted a report titled “Just Transition and the Energy Sector.” The report declares:

In recent years, NUM has worked alongside the National Union of Metalworkers of South Africa (NUMSA), TUED, AIDC and the Transnational Institute to repel government-led efforts to break up and privatize the national utility Eskom.

By Thomas Hanna, Johanna Bozuwa, and Raj Rao - The Climate and Community Project, April 2022

Publicly and cooperatively owned electric utilities (community utilities) have the potential to demonstrate what an equitable, clean energy system looks like in the United States. They could become powerful “anchor institutions” in their community by grounding their decisions in democratic governance and community partnership, affordable energy and community wealth building, and access to renewable energy.

The United States urgently needs to transition off of fossil fuels and onto clean sources of energy (especially renewable energy) to maintain a livable climate. As of 2020, only around 20% of US electricity generation is from renewable energy sources. Energy utilities – the companies that run our power systems – have enormous control over the scope and scale of the transition, but have often dragged their feet or even fought against clean energy. Not only does their inaction imperil the very future of humanity, but it directly harms families – often Black, Indigenous, low income, or otherwise marginalized – who live in the shadow of toxic power plants. The current US energy system is dirty and expensive. 31% of households in the country have to make the choice between buying groceries or paying their energy bills. In response, communities across the country are beginning to mobilize to demand an energy transition.

We have a powerful tool to accelerate the energy transition in a way that builds community wealth and energy justice in our communities: publicly and cooperatively- owned energy utilities. In this report, we refer to these types of utilities as “community utilities” because they are owned by the local community. Around thirty percent of households in the United States get their energy from community utilities. This is no small part of our energy system. As non-profit utilities without faraway shareholders that are ultimately accountable to the local community, these utilities have the potential to be an example for what an equitable, clean, and democratic energy system could look like. Collective action and organizing to push community utilities toward the intersections of clean/ renewable energy and community development can be more tractable than in corporate utility areas because community utilities’ mandate is to provide a public good, not to maximize profits for shareholders.

Community utilities and cooperatives have a radical history. In the early days of electrification one hundred years ago, residents across the country rose up against profiteering private utilities who provided poor (or nonexistent) service at high prices by creating their own publicly and cooperatively owned utilities. In the state of Nebraska, for instance, they kicked all private utilities out of the state for good. To this day, there are no private utilities providing electricity to Nebraskan homes. This cause was, in turn, taken up by national leaders. For instance, Franklin D. Roosevelt started the Rural Electrification Administration (REA) after rural communities pushed for access to light in their regions. Before that, corporate actors didn’t want to enter rural areas because they didn’t see how they could profit from such unpopulated land. The REA program took electrification from ten to ninety percent in ten years as groups of farmers banded together to start their own electric cooperatives, run on cooperative principles. However, today some community utilities have forgotten their past and are not living up to their potential. Many still rely on fossil fuel energy and some have even pushed back against important climate resiliency approaches like rooftop solar. In some places, democratic governance structures have deteriorated (or been manipulated by powerful interests) and residents don’t even know that they actually own their utility. It is time to reignite the radical history of community utilities to herald the transition to a genuinely democratic, equitable, and clean energy system.

Download a copy of this publication here (PDF).

By Irene HongPing Shen, Sean Sweeney, Dominic Brown, Makgabo William Mabapa, Mbulaheni Enos Mbodi, and Brian Kamanzi - Trade Unions for Energy Democracy, February 25, 2022

By Donald Cohen - Truthout, February 17, 2022

Texas dodged a bullet earlier this month when its statewide power grid, operated by the Electric Reliability Council of Texas (ERCOT), held up during a drop in temperatures. But that’s not because state leaders, particularly Republican Gov. Greg Abbott, learned anything from last year’s horrific storm.

As Truthout’s Candice Bernd reported last week, not only did 70,000 Texans still experience power and utility services outages during the recent cold snap, but fracked gas production also saw its biggest dip in production since the February 2021 grid failure, revealing the industry’s continued vulnerability to extreme weather.

Last year, Winter Storm Uri blanketed the entire state with freezing temperatures and snow for several days, causing record energy demand. This forced ERCOT to tell energy providers to cut power as they tried to avoid a total collapse of the energy system. Nearly 5 million people lost power and at least 246 died as a result of the storm.

The latest freeze was a more typical Texas cold front. Local power outages were caused mainly by downed power lines due to trees and ice. Still, Abbott is claiming that the system is more reliable and resilient than it’s ever been.

Experts disagree. “The thing about [this month’s freeze] is, we passed the test, but it was also a really easy test, and we didn’t pass it with perfect scores,” Michael Webber, Josey Centennial Professor in Energy Resources at the University of Texas, told Truthout’s Bernd. “There’s a lot of people who had problems with their power, and there was still the gas production drop, so I think we shouldn’t take away too much false confidence that we’re all good now.”

Texas’s energy system is controlled by a complex mix of public and private actors, including the nonprofit ERCOT, oil and gas companies, the Texas Railroad Commission, and others. The details don’t matter as much as what makes the state’s system unique: It’s independent; not connected to the country’s two other national grids, the Western Interconnection and the Eastern Interconnection; and not subject to federal oversight.

This has allowed it to become one of the country’s most marketized systems, according to Johanna Bozuwa, director of the Climate and Community Project. It’s heavily deregulated, designed to allow for intense competition in the retail sale of electricity. As one portfolio manager at a financial firm put it, it’s a “Wild West market design based only on short-run prices.”