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

FERC Re-Raises California Price Cap

LCG, July 18, 2002--The Federal Energy Regulatory Commission yesterday took two major steps aimed at the California power market, raising the state price cap for a second time and by ordering replacements for members of the board of the California Independent System Operator.

In raising the price cap, the Commission said it found energy supply in the state too low, after a plant building boom which is nearly at an end. It hoped that a cap of $250 per megawatt-hour would encourage more plant construction, and deter possible market abuse such as megawatt laundering, or the selling of in-state power out-of-state, to be resold as coming from out-of-state.. California Gov. Gray Davis reacted negatively to the ruling, issuing a statement which said, "There is no justification for tripling the amount of money energy generators can siphon out of the pockets of California consumers."

Most power consumed by Californians has been bought under long-term contracts, at prices which are in the process of being renegotiated. Some spot sales could take place at higher prices, nonetheless. The ISO board had supported raising the cap to $108, higher than the $91.87 cap set by the FERC last week. Last week marked California's first Stage 2 alert, triggered by low reserves.

The ISO board was replaced in January 2001 by Gov. Davis, after he and the Legislature stated that its members were too connected to power generators. The current chairman, Michael Kahn, disagreed with FERC's finding that the board is not independent enough. The new board must be installed by January 2003.
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