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

Heat Leads to Mid-Week CA Stage 2 Emergency

LCG, July 12, 2002--A heat wave affecting California Wednesday caused a surge in demand and a Stage 2 power emergency.

The greatest demand yesterday occurred at around 3 P.M., when the Independent System Operator recorded load of 42,441 megawatts. This peak excluded the Sacramento Municipal Utility District service area, which reached a record 2,779 megawatts, beating the July 12, 1999 record of 2,759 megawatts. The Stage 2 emergency called by the Independent System Operator meant that reserves had fallen below 5 percent.

"We're not out there saying, 'Just forget it, we won't have any blackouts,' " William Keese, chairman of the Caifornia Energy Commission, told the Sacramento Bee. "(But) all things combined... we should be fine." 3,000 megawatts of new capacity have come online in California in the last two years.

In order to obtain the necessary power, the Department of Water Resources made spot-market power purchases, which accounted for 12 percent of total DWR needs. The Western states, including Nevada were generally affected by a heat wave, decreasing the likelihood of obtaining power from out-of-state.

Although no power emergency was projected on Tuesday, a Stage 1 was imposed when reserves fell below expectations.

The heat being experienced by California is atypical. Governor Davis, although he is neither a meteorologist nor an historian, told a radio interviewer that the last time the state had experienced similar temperatures was in 1913. "This is unusally hot weather up and down the state, and our resources are being severely tested," he said.
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