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

Edison International Unit's Controversial Plant Approved

LCG, Dec. 18, 2003--The California Public Utilities Commission (CPUC) gave approval on a four-to-one vote to a 1,054-megawatt power plant to be built by Southern California Edison, a subsidiary of Edison International, under an arrangement the commission's president Michael Peevey said was a one-time deal "solely for this project at this time."

The Mountainview power plant will not operate as a regulated facility, but will be paid for by utility customers, who would also provide a specified profit on the investment. The project has elicited criticism from power producers as well as consumer groups, because the project was not the result of a competitive bidding process. Peevey himself backed the project, which he said was justified in being handled outside a normal competitive process. The commission president was president of Edison International and Southern California Edison in the early 1990s.

Former president of the CPUC Loretta Lynch dissented in the vote, and proposed that the plant instead be made a conventional utility-owned plant. The plant will operate under a 30-year contract signed by the utility, and the Federal Energy Regulatory Commission, which has been asked to approve the contract within two months, would regulate the rates under the contract, rather than the CPUC. Lynch said that allowing customers to be exposed to volatile gas prices under a 30-year arrangement would pose too great a risk.

Peevey said, "No one wishes to make this structure the model for utilities acquiring generation projects." Commissioner Susan Kennedy voiced the opinion that the plant was needed to avert an energy crisis as soon as "three years from now."
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