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

Senate Retreats on Renewables Requirement

LCG, Apr. 25, 2002--The Senate yesterday voted for an amendment to a bill requiring utilities to buy renewable energy credits, cutting in half the price cap on payments utilities could make in place of mandated renewable energy purchases.

The bill, co-authored by Senate Energy and Natural Resources Committee Chairman Jeff Bingaman, D-N.M., allows utilities to buy renewable credits towards requirements for a minimum level of renewable purchases and generation provided to customers. By 2019, 10 percent of utilities' sales would be required to be renewable. The amendment, sponsored by Don Nickles, R-Okla., sets the cap at 1.5 cents per kilowatt-hour, rather than 3 cents per kilowatt-hour.

The cap was intended to limit the possibility of utilities having to pay high prices for renewable credits in lieu of high renewable costs. Nickles, who had the support of a range of business groups, called the amendment a correction to an "assault on ratepayers." Bingaman said the effect of the amendment would "make it much less likely that renewables other than wind...would be used to any significant degree. States relying on biomass, geothermal and solar would be in trouble." Renewable generation accounts for approximately 2% of the power market in the U.S., excluding hydropower.

Sen. Harry Reid, D-Nev., a supporter of the renewables requirement, thought that many utilities would decide to opt for buying the credits rather than renewable energy. A Senate vote on a comprehensive energy bill is expected today.
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