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

California Governor Wants Utilities to Bail Out Customers

LCG, Dec. 20, 2000--As closed-door negotiations between California Gov. Gray Davis, state legislative leaders and top officials of the state's investor-owned utilities wore into the evening yesterday, Steve Maviglio, the governor's press secretary, said Davis was trying to see how much of a loss the utilities could absorb in a bailout of California electricity users.

All voters are electricity users, so you know whose side the governor was on. But earlier this week, Pacific Gas & Electric Co. said it had paid $4.6 billion for electricity it had delivered to customers and had not been paid for. The utility wants to get its money. Southern California Edison Co. said its customers owed it $3.5 billion and it, too, would like to be paid.

To the degree the companies have to eat that $8.1 billion, it will be a minor, major or complete bailout for California consumers. Consumer activists are hoping for complete, but the governor seems ready to accept major. It's possible there could be no bailout at all.

Last Friday, commissioner William Massey of the Federal Energy Regulatory Commission noted the companies' plight and said "Some day soon a federal court, when asked, will declare that utilities are entitled to recover these high wholesale costs from their customers."

At a press conference before yesterday's meeting, Davis said "I have made it very clear to all parties: They're not recovering all their costs. They're only recovering a portion of their costs because everybody pushed for deregulation, the manufacturers and utilities, and it hasn't worked. The consumers, while having to bear some of the burden, are not going to bear all of the burden."

Davis holds electric customers blameless in the state's power fiasco, even though they continue to consume increasing amounts of electricity to operate their air-conditioners, electronic games and television sets while at the same time they oppose building new power plants anywhere in the state.

"The customers, of course, have done nothing wrong," Davis said. "There's no party of interest more important to me than the consumers of this state. They were promised a rate reduction under deregulation. This is an experiment that has gone very bad."

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