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ERCOT 2019 Summer Quarter Outlook

LCG, May 29, 2019-- LCG released a new summer (June – September 2019) report that looks at how the ERCOT grid copes with strained network conditions. Resource adequacy analysis for the region is especially important during extreme summer loading conditions. This summer the network is under particular scrutiny as the reserves have tightened because of recent retirements.

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South Field Energy Breaks Ground for 1,182-MW Power Plant

LCG, May 16, 2019--South Field Energy LLC announced yesterday its groundbreaking for an 1,182-MW, combined-cycle electric generating facility in Columbiana County, Ohio. The natural gas-fired facility is scheduled to commence operations in mid-2021 and represents a $1.3 billion investment.

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Industry News

Mirant Says 600 Megawatts Face Emissions Shutdown

LCG, July 23, 2001Mirant Corp., which operates the 2,022 megawatt Pittsburg power plant it purchased from Pacific Gas & Electric Co., warned again Friday that emissions regulations may force it to shut down four units having a combined capacity of 600 megawatts.

The result, combined with the opening two weeks ago of Calpine Corp.'s new 555 megawatt Pittsburg plant, would be a net loss to the state of 45 megawatts of much-needed generation in a city that regards power plants highly.

Mirant said it had told the state in April that it would be forced to cease operating parts of the Pittsburg plant if it could not secure emissions waivers, but the warning apparently went unnoticed by state officials.

"That's pretty big news if they're going to shut it down indefinitely," said Stephanie McCorkle, a spokeswoman with the California Independent System Operator. "I haven't heard this. Obviously, we wouldn't want to see any megawatts go away."

Even Steve Maviglio, the spokesman for Gov. Gray Davis, was surprised by the news. "It's significant, no doubt about it," he said. "We're going after every megawatt we can get. As a broad policy, as much power as we can keep on-line is beneficial until we can get new plants up and running."

Mirant had planned to tear out some of the units at Pittsburg and replace them with 530 megawatts of new generation, but tabled those plans earlier this year, citing California's "hostile" business climate as exemplified by the governor's vilification of independent power producers.

Now, the company has been ordered to cut nearly in half the average hourly nitrogen oxide emissions at Pittsburg and two other plants it owns in the San Francisco Bay Area. Faced with the massive investment in new emissions controls, coupled with the high operating costs of the old units, the company says it has little choice other than to shut down some generation.

"We're very serious about shutting them down" unless the company gets permission to exceed the emission limits, said Mark Gouveia, vice president and chief operating officer of Mirant's California division. "We're not going to violate the law to run them."

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