Federal Government uses UPLAN model to examine price volatility in ERCOT

LCG, October 11, 2022--The U.S. Energy Information Administration, or EIA, released its latest supplement to the Short-Term Energy Outlook (STEO) in the Texas market, assessing various possible scenarios using LCG’s UPLAN NPM model, with a special focus on the effects on wholesale power prices and market conditions.

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Michigan Governor Supports Reopening Palisades Nuclear Facility

LCG, September 16, 2022--The Governor of Michigan last week sent a letter to the U.S. Department of Energy (DOE) in support of Holtec International’s application for a federal grant under the Civil Nuclear Credit (CNC) program to save the Palisades Nuclear Facility in Southwest Michigan. The federal grant could result in restarting the baseload, carbon-free, nuclear power plant.

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Industry News

UK Rejects Ofgem's 'Good Behavior' Rules

LCG, Dec. 11, 2000--The British Competition Commission this morning told the government's Office of Gas and Electricity Markets that it could not make "good behavior" clauses a part of the licenses of electricity generators.

Ofgem had got six companies to grudgingly accept the clauses which the regulator hoped would end what it perceived as market manipulation, but two firms, British Energy Plc and AES Corp. of the U.S. balked, saying they would take their chances with the Competition Commission.

The Commission said this morning that it was not "against the public interest" for the two companies to do business without the clauses in their contracts.

The decision was a sharp rebuff for Ofgem general director Callum McCarthy, who see abuses of market power behind every power pole. He said he was "deeply disappointed" because it would mean he couldn't enforce the clause even against those who signed it.

"I regard this as a substantial loss of measures needed by Ofgem to do our job," McCarthy said. "This is to the detriment of consumers whose protection is Ofgem's new primary objective under the law."

In its decision, the Commission said "We think such a prohibition would cause uncertainty, because of the difficulty of distinguishing between abusive and acceptable conduct, and would risk deterring normal competitive behavior."

The companies had argued that the clause gave Ofgem the combined powers of "judge, jury and executioner."

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