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

Calpine Contracts With California May Be Revised

LCG, Apr. 5, 2002--Negotiators for California and Calpine representatives have indicated that changes may be made within days to power-purchase contracts signed by Gov. Davis during the power crisis in early 2001.

At the time they were signed, some of the contracts with Calpine were seen as being among the better deals signed by the state. Critics of the contracts have said that some of the contracts cause the state to buy power at night, when much less power is needed. A particular contract calls for "capacity payments" to a peaking plant in order to have it available continuously. The contract is worth $80 to $90 million per year for 20 years, but does not cover any actual electricity delivery.

The state's attorney general Bill Lockyer has filed a series of complaints with the Federal Energy Regulatory Commission regarding prices charged by energy suppliers, a complaint which would likely be withdrawn in the case of Calpine if contracts are revised. Concerns about Calpine's aggressive expansion and its dependence on debt have caused its stock price to fall approximately 80% from its level at this time last year. Bill Highlander, director of public relations at Calpine, said that new contracts are not being considered to emphasize more payments within a shorter time-frame. "More money upfront is always a good thing. But we don't need it," he said.
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