JEA Board Approves Transaction with FPL to Close 848-MW Coal Unit in Georgia

LCG, June 30, 2020--The JEA Board of Directors in a special meeting last Friday unanimously approved a transaction that will result in closing an 848-MW unit at Plant Scherer and entering into a 20-year purchase power agreement (PPA) with Florida Power & Light Company (FPL).

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Analysis of Resource Adequacy in ERCOT - July - December 2020

LCG, June 30, 2020 - LCG Consulting just released its analysis of ERCOT for the second half of 2020, July through December.

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Industry News

Creditors See SoCal Ed Bankruptcy Sure and Soon

LCG, Sept. 21, 2001--A spokesman for a committee of Southern California Edison Co. creditors said yesterday that involuntary bankruptcy for the insolvent utility was not only a sure thing but would likely occur soon.

"To me it's not a matter of if bankruptcy is going to occur, it's a matter of when," said Brett Barbre, a spokesman for a committee of SoCal Ed's unpaid creditors and those of parent holding company Edison International Inc. "We believe a bankruptcy is imminent, and it will be involuntary."

Two large independent power producers -- companies that purchased power plants from California's investor-owned utilities under a divestiture mandate contained in the state's electric restructuring law -- are known to be seeking a third creditor to join them in a court petition that would force SoCal Ed into involuntary bankruptcy.

Mirant Corp. of Atlanta and Houston-based Reliant Energy Inc. have approached the City of Long Beach and other creditors to join them in the suit. Close to a dozen creditors are ready to join the petition, observers said, as they have reached the limit of their forbearance waiting for California bureaucrats and lawmakers to cobble together a "rescue" package for the beleaguered utility.

When the state legislature adjourned for the year last Saturday without passing a measure to restore SoCal Ed to solvency, creditors began losing hope. California Gov. Gray Davis said he would call the lawmakers back to Sacramento for a special session to deal with the rescue package, but comments by a leading state senator seemed to indicate such a move would be futile.

John Burton, a San Francisco Democrat who is president pro tem of the state Senate, said on learning of the governor's intention to call a special session, said "We should have buried this baby once and for all."

Edison International's chief financial officer, Ted Craver, said earlier this week that the company would "vigorously oppose" involuntary bankruptcy for SoCal Ed. Yesterday, the company's vice president for external affairs, Brian Bennett, said he was hopeful that the creditors would "continue to forbear through the special session."

Bennett added "If they've waited this long, it's a little perplexing why they can't wait another two weeks."

The creditors committee's Barbre noted that Pacific Gas & Electric Co., the state's largest utility, was still in business even though it chose voluntary bankruptcy under Chapter 11 of the federal bankruptcy law in April. "People are looking around at the situation involving PG&E, and they're doing just fine in bankruptcy," he said. "They are on the road to becoming creditworthy once again, while Edison is still floundering."

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