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 Capsule: $10 Billion Bond Issue to Go Ahead

LCG, April 9, 2001California state Treasurer Phil Angelides said late Friday that the bankruptcy filing by Pacific Gas & Electric Co. will not affect the planned $10 billion bond issue to provide funds for long-term power purchases for the state.

Angelides told Reuters that the bankruptcy could actually help the state issue the bonds, as well as close a bridge loan announced last week. The bridge loan would provide funds until the bonds could be sold.

"We are moving forward," Angelides said. "(The bankruptcy) could increase certainty in the process because certain agreements will now have to go through a court."

Angelides has stressed the need for the bond issue to provide funds for the California Department of Water Resources to negotiate long-term power purchase contracts at relatively reasonable prices. The state has been buying power on the spot market at a cost of about $50 million a day, money that comes from the state's general fund.

There's more, but not much.

  • A unit of The Williams Cos. said Friday afternoon that it has received authorization from the Federal Energy Regulatory Commission to build and operate emergency facilities on its Kern River natural gas transmission system. The enhancements, which will include two new compressor stations in Utah and one in California, will add about 19 percent to the system's capacity.
    Williams said it has also received approvals from various agencies in Wyoming, Utah, Nevada and California for the system improvements. Work will begin immediately, the company said, and should be complete by July 23.

  • Calpine Corp. said this morning that it was confident that PG&E would come out of its bankruptcy and pay for power purchased from Calpine's "qualifying facilities." PG&E owes Calpine about $267 million in accounts receivable and there is also a $68 million note receivable that is not yet due. Calpine's QFs are the geothermal generation properties it owns at The Geysers, north of San Francisco.

  • The California Independent System Operator this morning declared a Stage 2 power emergency, citing colder than normal weather. The ISO also reported a loss of generating and transmission capacity as it urged Californians to conserve electricity.

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