EnergyOnline
Services

RSS FEED

EnergyOnline.com rss

News

LCG Publishes 2024 Annual Outlook for Texas Electricity Market (ERCOT)

LCG, October 10, 2023 – LCG Consulting (LCG) has released its annual outlook of the ERCOT wholesale electricity market for 2024, based on the most likely weather, market, transmission, and generator conditions.

Read more

LCG Publishes 2024 Annual Outlook for Texas Electricity Market (ERCOT)

LCG, October 10, 2023 – LCG Consulting (LCG) has released its annual outlook of the ERCOT wholesale electricity market for 2024, based on the most likely weather, market, transmission, and generator conditions.

Read more

Industry News

California Transmission Upgrades Stalled

LCG, September 14, 2004--Plans to upgrade transmission capacity from wind farms in the Tehachapi and Antelope Valley area to California load centers must now clear a new funding hurdle, as the Court of Appeal of the State of California has annulled a California Public Utilities (CPUC) ruling that would have required Southern California Edison (SCE) to pay the upfront cost for the upgrade.

The current capacity of the wind farms in the area is about 600 MW, with up to 1,100 MW of additional wind projects planned, according to the California ISO. In late July, the California ISO approved the plan to construct the 25-mile transmission line, which is estimated to cost $94 million. The upgrade would be a key grid improvement to enable California's Renewable Portfolio Standard (RPS) to be met. The RPS requires 20 percent of the energy the Investor-Owned Utilities deliver to their customers to come from renewable resources by the year 2017.

The CPUC, in its Interim Opinion and Order Denying Rehearing, took the position that, per California Public Utilites Code section 399.25, the State could require utilities to pay the upfront costs of system upgrades necessary to connect new sources of renewable energy to the grid and roll-in the costs to ratepayers. With this policy, the financial risk associated with the $94 million upgrade would be transferred to the utility ratepayers. Under the current Federal Energy Regulatory Commission (FERC) policy, the generator would fund the upgrades and receive a monthly credit back, with interest, over time. The Court of Appeal ruled that the CPUC's interpretation is preempted by federal law, thus the financial burden cannot simply be placed on the back of SCE and its ratepayers.

The value of the transmission capacity will be more transparent after the California ISO implements locational marginal pricing (LMP), which is planned for February 2007.

Copyright © 2024 LCG Consulting. All rights reserved. Terms and Copyright
UPLAN-NPM
The Locational Marginal Price Model (LMP) Network Power Model
UPLAN-ACE
Day Ahead and Real Time Market Simulation
UPLAN-G
The Gas Procurement and Competitive Analysis System
PLATO
Database of Plants, Loads, Assets, Transmission...
CAISO CRR Auctions
Monthly Price and Congestion Forecasting Service