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

Canadians Clash Over Alberta Power

LCG, April 24, 2002-Power generators and consumers began a six-week hearing this week in Calgary over the congestion management of Alberta's transmission grid.

Alberta's transmission authority, ESBI Alberta, manages 20,000 kilometers of transmission. Expanding the aging system to meet future generation needs is estimated to cost somewhere between half a billion and one billion Canadian dollars ($319 to $638 million).

Generators and consumers, northerners and southerners must find some medium by which to operate the Alberta grid.

Large companies like TransCanada PipeLines Ltd. and TransAlta Corp. will contest ESBI's proposals, which include retaining a "postage stamp" approach to increasing production and applying transmission fees to support exports. Postage stamp fees essentially set a standard price on transmission transactions regardless of distance or path of the transaction.

Some participants contend that generators may benefit from export revenues gained from expansion, which would be paid for by customers. According to the Dow Jones, Optimum Energy Management Inc.'s Dale Hildebrand asserted, "If you believe in the market, let the market decide. Don't roll costs in to give one generator a competitive advantage over another generator."

According to the consulting firm, lower cost generation in northern Alberta will most likely profit from rolled-in costs over southern generation because Alberta's main export line is in the south and transmission is limited in the north-south power corridor.

Although Optimum Energy believes an agreement can be reached, an intervener noted, "Organizing the schedule is like herding cats, or better said, lions and Siberian tigers."

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