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 Releases New Utility Debt Restrictions

LCG, February 20, 2003As part of its decision regarding Westar Energy Inc.s debt-related request, FERC has issued debt financing guidelines for utilities.

Today, the Federal Energy Regulatory Commission (FERC) approved Westar Energy Inc.s proposition to raise as much as $650 million in long-term and unsecured debt. The largest electric utility in Kansas, Westar Energy has been trying to reduce its debt by several means, including the sale of non-utility assets and dividend reduction.

According to the commissions decision, Westars sale or placement of long-term, unsecured debt must be accompanied by a filing of a Report of Securities, issued within 30 days of the event.

While FERC will allow Westar Energy to finance its debt, the commission simultaneously released guidelines regarding public utility debt in order to prevent borrowed funds from being used for non-utility purposes.

According to FERCs website,, these guidelines are:

Public utilities seeking authorization to issue debt backed by a utility asset must use the proceeds of the debt for utility purposes only.

If any utility assets that secure debt issuances are "spun off," the debt must follow the asset and also be "spun off."

If any of the proceeds from unsecured debt are used for non-utility purposes, the debt must follow the non-utility assets. If the non-utility assets are "spun off," then a proportionate share of the debt must follow the "spun-off" non-utility asset.

If utility assets financed by unsecured debt are "spun off" to another entity, then a proportionate share of the debt must also be "spun off."

The commission noted that the new guidelines would apply to all approved secured and unsecured debt authorized by the Commission.

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