EIA Publishes Regional Electricity Supply and Pricing Forecasts Using UPLAN Model

LCG, August 13, 2019--The U.S. Energy Information Administration (EIA) announced that it is revising the presentation and modeling of its forecasts for electricity supply and market hub pricing to better reflect current electricity markets and system operations in the U.S. Beginning with the August 2019 Short-Term Energy Outlook (STEO), the new forecasting approach models electricity markets using the UPLAN production cost optimization software developed by LCG Consulting. EIA uses the solution results provided by this proprietary model to develop the STEO forecasts of monthly electricity generation, fuel consumption, and wholesale prices.

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Dominion Energy Virginia Pursues 500 MW of Renewable Projects

LCG, August 8, 2019--Dominion Energy Virginia announced Monday that it is seeking bids for up to 500 MW of renewable capacity in both 2021 and 2022 to increase its clean energy resources. Dominion Energy stated that it is committed to having 3,000 MW of solar and wind in operation or under development in Virginia by 2022. This near-term step is part of an ultimate company commitment to reduce carbon emissions by 80 percent by 2050 across the 18 states it serves.

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Industry News

Wild Goose Plans ExpansionOf California's Only Gas Storage

LCG, July 23, Wild Goose Storage Inc., which operates the only independent natural gas storage facility serving California, said on Friday it had asked the California Public utilities Commission for authorization to double the operation's storage size and triple its withdrawal capacity.

Based on a strong response from customers looking for additional storage capacity, Wild Goose wants to increase its working gas capacity from 14 billion to 29 billion cubic feet. Withdrawal capacity is expected to more than triple from 200 million to 700 million cubic feet per day, while injection capacity would increase nearly six-fold from 80 million to 450 million cubic feet per day.

"The dramatic natural gas price volatility that has recently occurred in California is a clear indication of the need for additional natural gas infrastructure in the state," said Rick Daniel, President of Wild Goose. "Construction of new gas-fired electrical generation in and around California over the next few years is anticipated to increase the need for gas storage capacity."

Wild Goose said it had recently conducted an "open season" on its expansion plans, generating many requests for additional storage capacity under terms ranging from two to 30 years. The company expects to execute binding precedent agreements with customers who filed qualified requests for additional space.

As it is today, California does not have the option of injecting unneeded gas into a storage facility and pulling it back out on another day. Because of this limitation, restrictions against shippers called "operational flow orders" are frequently declared and violators are subject to heavy fines.

Pacific Gas & Electric Co., whose gas system covers the northern two-thirds of California, had a system-wide OFO in effect on Saturday.

Wild Goose's expansion plans include construction of approximately 25 miles of transmission pipeline from the Wild Goose facility to PG&E's gas transmission system. The storage facility itself will be improved by increasing compression and by drilling new wells into the storage reservoir. Wild Goose expects the new facilities will be on-line by April 1, 2004.

Wild Goose's storage facility is located near Gridley, Calif., a community in the duck (and goose) hunting area north of Sacramento. The company is a subsidiary of Alberta Energy Company Ltd. of Canada.

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