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.

Read more

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.

Read more

Industry News

CA Negotiates $3.5 Billion in Damage Control on Power Contracts

LCG, April 23, 2002-Energy companies have agreed to rewrite contracts, saving California $3.5 billion in long-term power contracts.

Pressured by the energy crisis and shackled to last year's skyrocketing rates, California bought $43 billion in long-term electricity contracts. A third of these agreements were renegotiated, trimming off $3.5 billion after five months of talks between state officials and power companies.

According to state officials, energy companies Calpine and Constellation Energy also will pay $8.5 million in settlements regarding allegations that they charged illegally inflated prices during the power crisis.

The state managed to renegotiate four large Calpine contracts, one contract with Constellation and contracts with Capitol Power, Cabazon and Whitewater Hill, deflating their total of $15 billion to $11.4 billion.

According to Governor Gray Davis's chief counsel Barry Goode, the new contracts utilize stronger language, guaranteeing that new generators will be built. The state will have greater authority to deny grants and even terminate one of the contracts if power companies fail to create sufficient new generation. Calpine will face fines if it does not build new plants, including the proposed Metcalf facility, which is intended to supply Silicon Valley.

As a result of the new contracts, California will no longer demand refunds from Calpine through the Federal Energy Regulatory Commission (FERC). State agencies will not question the contracts' "reasonableness" either. However, Governor Davis plans to continue urging FERC to investigate the possibility that power companies manipulated California's electricity market.

Copyright © 2023 LCG Consulting. All rights reserved. Terms and Copyright
The Locational Marginal Price Model (LMP) Network Power Model
Day Ahead and Real Time Market Simulation
Day-ahead and real-time portfolio revenue optimization
Generator X
Generation and Transmission Planning and Optimization
The Gas Procurement and Competitive Analysis System
Database of Plants, Loads, Assets, Transmission...
Annual summary of prices, congestion and important events in ERCOT
CAISO CRR Auctions
Monthly Price and Congestion Forecasting Service