Entergy's Palisades Nuclear Power Plant to Close in 2018

LCG, December 9, 2016--Entergy Corporation and Consumers Energy announced yesterday that they have agreed to an early termination of their power purchase agreement (PPA) for the Palisades Power Plant in 2018, when the nuclear facility will now be closed. The result is an estimated cost reduction to Consumers' customers by up to $172 million over four years. The 811-MW nuclear facility is located on the eastern shore of Lake Michigan and has been generating carbon-free electricity since December 31, 1971. The current operating license expires in 2031.

Read more

AES Plans to Construct 300-MW Battery Storage System in California

LCG, December 1, 2016--AES Corporation plans to construct a 300-MW battery storage system at its existing Southland Energy, LLC (AES) Alamitos Generating Station within the City of Long Beach, California. The proposed Alamitos Generating Station Battery Energy Storage System would provide local area capacity for electrical system reliability and flexibility. According to AES, the proposed facility would be the largest battery energy storage system (BESS) in the world. Construction is proposed to commence in 2019, with the facility operational in 2020.

Read more

Industry News

Agriculture Group Backs PG&E Hydro Plan; Independent Power Producers Don’t Like It

LCG, Aug. 11, 2000--Lobbyists began choosing sides yesterday as the California Public Utilities Commission began studying a proposal by Pacific Gas & Electric Co. to transfer its hydroelectric facilities in the state to a newly created unit of its parent holding company PG&E Corp.

The proposal, reported here yesterday, had the backing of The Utility Reform Network (TURN), theCoalition of California Utility Employees (CUE), Agricultural Energy Consumers Association(AECA), California Retailers Association, Sonoma County Water Agency, and Tuolumne UtilityDistrict.

Director Michael Boccadoro of the AECA called the settlement agreement "an historic opportunity to guarantee that these resources are operated in a reliable, environmentally sound manner and toprovide electric customers with significant economic benefits."

But the owners of independent power plants are against the proposal. Jan Smutny-Jones, executive director of the Independent Energy Producers Association, said "The best way to protect the environment and ratepayers, and to foster a truly competitive electric market is through an open, conditioned auction of these generating assets."

When PG&E first proposed transferring ownership of the hydro facilities to an affiliate, the plan was dismissed as self-serving and concerns over market power were raise. So, the utility proposed that it auction its plants, just like it did with its fossil-fueled power plants. That raised concerns by environmentalists and others who wondered what would happen to Californias rivers when competing generation companies ran the hydro turbines full time.

This time around, PG&E says its proposal should satisfy both environmentalists and free-market competitors.

As the sainted Noah Webster said in his 1802 American Spelling Book, "It makes a difference whose ox is gored."

Copyright © 2016 LCG Consulting. All rights reserved. Terms and Copyright
Generator X
Generation and Transmission Planning and Optimization
The Locational Marginal Price Model (LMP) Network Power Model
Day Ahead and Real Time Market Simulation
Day-ahead and real-time portfolio revenue optimization
The Gas Procurement and Competitive Analysis System
Database of Plants, Loads, Assets, Transmission...
Daily LMP Forecast for ERCOT
Monthly summary of prices, congestion and important events in ERCOT
CAISO CRR Auctions
Monthly Price and Congestion Forecasting Service