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

Plans for Mainland China Electric Restructuring Due This Year

LCG, Oct. 29, 2001--The president of mainland China's State Power Corp. says a massive plan for restructuring the country's electric industry, including a breakup of its generating sector, should be completed by the end of this year, the South China Morning Post reported today.

Restructuring the power industry is of major interest to the Chinese government, said Gao Yan, head of State Power, because Beijing wants to make the industry more responsive and drive down costs through competition.

Premier Zhu Rongji is known to be eager to see the industry, famous for price gouging, made subject to market discipline, the paper said.

At present, State Power controls the Chinese transmission grid and has a generating capacity of 150,000 megawatts, about half the country's total. According to insiders, the restructuring plan will call for "unbundling" of State power into generation, transmission and distribution, with the formation of an electricity pool system based on market prices.

Gao said Beijing would decide before January 1 whether to lift a ban that prevents private firms from acquiring generation assets. If the ban is lifted, there would be opportunities for Chinese power producers to acquire some of State Power's facilities.

The restructuring plan also will include a provision replacing China's provincial power bureaus with power generation companies that can compete across the country.

Lifting of the ban would also benefit China's two existing power producers, Beijing Datang Power Generation and Huaneng Power International.

Huaneng Power was established in 1994 to develop, construct, own and operate large coal-fired power plants and has installed capacity of 8,700 megawatts. Beijing Datang owns and operates four power plants with a total installed capacity of 4,050 megawatts.

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