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

California ISO Details Energy Producer Fines

LCG, July 9, 2002--The California Independent System Operator, which manages the state power grid, released details last week of fines it had assessed and payments that were witthheld for failure by power producers and utilities to deliver services.

The penalties, totaling over $250 million, date from the period June 1999 through June 2001, and were released now based on a request made by the Dow Jones News Service under the California Public Records Act. $122 million in fines were assessed for companies' failure to have reserve power available in the seven months up to June 2001, after their bids to have such power ready had been accepted. $95 million of that amount were assessed against Dynegy Electric Clearinghouse, Reliant Energy Services and Williams energy Services. Twelve specific generators were cited.

An additional $130 million in withheld payments applied to 19 energy providers during the earlier period prior to December 2000. The fines and withheld payments have already occurred, and do not constitute accusations of intent to manipulate the market, only findings by the ISO of companies' failure to deliver power. Dynegy spokesman David Byford said that Dynegy had not fully understood all of the tariffs and rules imposed by the ISO, and that it was not alone in its misunderstanding. "We were working with the ISO to have generation available to the greatest extent possible," he told the San Francisco Chronicle. Paula Hall-Collins, a Williams spokeswoman, said that while her company's generators "never refused to respond to a dispatch order," in some instances, "we were not able to fulfill the entire dispatch."

Total penalties against Pacific Gas and Electric Co., the utility, were nearly $11 million. Enron's wholesale energy marketing unit, which has been shown to have considered how to manipulate the state's energy market, had $991,000 in payments withheld.
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