Tampa Electric Plans to $800 Million Investment in New Solar Power Generation

LCG, February 24, 2020--Tampa Electric recently announced plans to expand its use of solar power to meet customer needs in Florida. The company plans to invest approximately $800 million to add 600 MW of solar electric generating capacity by the end of 2023, when the total solar capacity would exceed 1,250 MW. Solar power will then account for about 14 percent of the utility's energy.

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AWEA Issues Fourth Quarter 2019 Market Report

LCG, February 7, 2020--The American Wind Energy Association (AWEA) recently released its new U.S. Wind Industry Fourth Quarter 2019 Market Report. AWEA reports new wind turbine installations have added 5,476 MW of electric generating capacity during the fourth quarter, which results in 2019 installations totaling 9,143 MW. The total installations represent an increase over 2018, but the total for 2019 falls short of total annual installations for 2015 and 2016. In addition to new capacity additions, developers completed 2,500 MW of turbine repowerings for the year.

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Industry News

AEP Buys Two Edison International UK Power Plants

LCG, Oct. 8, 2001--American Electric Power Co. Inc. said this morning it had agreed to buy 4,000 megawatts of coal-fired generation in the UK from U.S. company Edison Mission Energy in a deal valued at $960 million.

AEP said the purchase prices for the 2,000 megawatt Fiddler's Ferry plant and the 2,000 Ferrybridge station worked out to an attractive $240 per kilowatt.

Edison Mission Energy, a subsidiary of Edison International Inc. and sister company to beleaguered utility Southern California Edison Co., found no joy in the numbers and said it will take an after-tax write-off of about $1.18 billion on the deal.

Edison paid PowerGen Plc about $2 billion for the power plants just over two years ago.

"This investment has been a major disappointment for (us)," said Al Fohrer, Edison Mission Energy's president and chief executive. "While the plants have run well, given the market conditions, the operating losses and cash requirements likely to result in the foreseeable future from the existing debt structure were too large to maintain our ownership position. It is time to sell the plants, reduce our debt and eliminate the drag on our financial performance."

AEP, on the other hand, believes owning the two power plants will increase its earnings by about 6 cents per share next year.

"The acquisition is consistent with the strategic objectives of our European business, which is to build a trading, marketing and optimization business across key aspects of the wholesale fuel and power generation value chain in Europe," said E. Linn Draper, AEP's chairman, president and chief executive.

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