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Google and AES Sign Agreements for Co-Located Generation and Data Center in Texas

LCG, February 24, 2026--The AES Corporation (AES) and Google today announced agreements for clean power generation that will be co-located with a new Google data center in Wilbarger County, Texas. The agreements include a 20-year Power Purchase Agreements (PPA) for co-located power generation. These coordinated energy projects and powered land will enable Google to rapidly expand its operations to meet demand for core services, while AES will expand its power generation portfolio.

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Amazon Announces Plans to Invest $12 Billion in Data Center Campuses in Louisiana

LCG, February 23, 2026--Amazon today announced plans to invest $12 billion to develop and construct state-of-the-art data center campuses in northwest Louisiana that will support cloud computing technologies. Amazon is partnering with STACK Infrastructure, the developer and owner of the campuses, to lead the construction and development of the data center facilities. Amazon has already invested in solar energy projects in Louisiana, bringing up to 200 MW of new carbon-free energy onto the grid.

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Industry News

Gas Costs from Energy Crisis Disputed by California

LCG, May 30, 2003--A filing by California and its major utilities on refunds that they claim they are owed for spot power purchases made during the 2000-2001 energy crisis could result in the amount of potential refunds being adjusted upward by as much as 80%, because of disagreement over whether the gas purchase costs of power suppiers have been justified.

The refunds now suggested as a starting point by a judge with the Federal Energy Regulatory Commission total $1.8 billion. California representatives have argued that while the price of gas on the spot market was relatively high during the crisis, generators, some of whom were also gas marketers, need to substantiate costs incurred specifically for generation purposes, rather than those for wholesale gas sales. Risk management mechanisms such as derivatives may also have affected the impact of gas market price fluctuations for the power suppliers.

The staff of the FERC has put forth a calculation to reflect generators' costs that is based on production costs in Canada or the Southwest, as well as transportation charges. A May 22 conference that involved generator and California attorneys brought general agreement on that formula, and thus California's argument rests mostly on obtaining proof for generators' costs. FERC has made no indications of its likely decision; filings are under docket EL00-95-045, at www.ferc.gov/Ferris.htm.

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