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: Davis Heaps Obscenities on Lawmaker

LCG, April 18, 2001The governor of California, lost for words yesterday when challenged by a state Senator over his threats to seize power plants from out-of-state "pirates," reacted with a stream of billingsgate that would make a sailor blush.

Gov. Gray Davis, obviously angry, profanely lashed out at state Sen. Tom McClintock, a Southern California Republican, when the latter brought up the seizures as Davis was trying to drum up legislative support for his plan to buy 10,000 miles of transmission lines from Southern California Edison Co.

It was a "symphony of obscenity," said McClintock, who added "He came to sell the utility bailout, and I think he did exactly the opposite."

"As he knew not what to say, he swore," wrote Lord Byron in 1823 in a poem about the Mutiny on the Bounty.

  • Davis also blamed rising power costs on Pacific Gas & Electric Co., the state's largest utility which was forced by high power costs to seek protection under Chapter 11. Noting that the state spent an average of $45.8 million in taxpayer money buying power in each working day of the week before PG&E declared bankruptcy on Friday April 6, $57.4 million each working day the following week and an average of $73.2 million a day last week, the governor put two and two together and got PG&E.
    "Bankruptcy is not a good deal," Davis instructed, "because those additional costs are costs that taxpayers or ratepayers will have to absorb."
    Gary Ackerman, executive director of the Western Power Forum, saw the bankruptcy in another light. "If anything, I think that generators and marketers would take solace in the fact that bankruptcy brings order to an otherwise volatile situation."

  • Power plants in the Los Angeles basin have emitted twice the pollutants in the first three months of 2001 that they did in the same period last year, the Orange County Register reported this morning. In the case of oxides of nitrogen, which Southern California keeps a wary eye on because it causes smog, power plants in the region emitted 2,045 tons in the first quarter of this year against 905 tons in the first three months of 2000, according to the South Coast Air Quality Management District.

  • Average electric rates in the state capital of Sacramento will likely rise an average of 22 percent. Directors of the Sacramento Municipal Utility District indicated yesterday that they are prepared to vote in favor of the rate hike tomorrow when they take up a new rate structure scheduled to go into effect immediately after a final vote on May 3. At least five of the seven directors indicated they would vote in favor of the proposal which would raise the average residential customer's monthly electric bill by about 19 percent, or $13.

  • A few miles north of Sacramento, in Chico, top officials from the U.S. Bureau of Reclamation, the California Department of Water Resources, the Modesto Irrigation District and the California Independent System Operator were holding a meeting this afternoon explaining the relationship between water reliability and electric power reliability. Both are important in the fertile Central Valley of the state water released to generate electricity in May won't be there to irrigate crops during the heat of July.
    The meeting is being held at the Sierra Nevada Brewery, but U.S. Rep. Doug Ose, a Sacramento Republican, is there to keep things in hand.

  • Directors of the Los Angeles Department of Water and Power yesterday approved a plan to pay electric customers for cutting back their use of power this summer. Under a program that would last from June 1 to September 30, a typical residential customer would receive a $4 monthly credit if he used 10 percent less power this year than last year. The credits would be deducted from bills beginning in October. If a householder reduced consumption by 20 percent, he would get an $8 credit.
    The arithmetic works well for the LADWP. If a residential customer typically uses 500 kilowatt-hours of electricity and saves 50 he gets $4, which is 8 cents per kilowatt-hour. The LADWP can then sell that power to the state, which is currently paying ten times that and will be paying more this summer.

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