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Connecticut Seeks 2,000 MW of Offshore Wind Capacity

LCG, August 22, 2019--The Connecticut Department of Energy and Environmental Protection (DEEP) on Friday released a request for proposals (RFP) for offshore wind power projects. DEEP is seeking up to 2,000 MW, as required under Public Act 19-71, An Act Concerning the Procurement of Energy Derived from Offshore Wind.

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EIA Publishes Regional Electricity Supply and Pricing Forecasts Using UPLAN Model

LCG, August 13, 2019--The U.S. Energy Information Administration (EIA) announced that it is revising the presentation and modeling of its forecasts for electricity supply and market hub pricing to better reflect current electricity markets and system operations in the U.S. Beginning with the August 2019 Short-Term Energy Outlook (STEO), the new forecasting approach models electricity markets using the UPLAN production cost optimization software developed by LCG Consulting. EIA uses the solution results provided by this proprietary model to develop the STEO forecasts of monthly electricity generation, fuel consumption, and wholesale prices.

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Industry News

CPUC Upholds Non-utility Power Deals

LCG, Mar. 22, 2002--By a 3-2 vote, the California Public Utilities Commission yesterday allowed large energy customers who signed deals with non-utility energy providers and marketers through September 2001 to continue as "direct access" customers.

The vote was supported by Jeff Brown, Henry Duque and Michael Peevey, Gov. Davis' latest appointee, after the Legislature had not yet produced legislation concerning "exit fees" that would be assessed on direct access customers. The exit fees, which Brown said would be the PUC's priority, would be a way to spread part of the costs associated with the state's power crisis among all customer groups, and would likely be assessed according to actual consumption. Brown said that if exit fee assessments are not sufficient to mitigate the additional cost impact of deregulation on small customers, he would vote to revoke contracts that were signed after July 1, 2001. A previous vote stopped new direct-access contracts signed after September 20th.

Approximately 12 percent of the energy consumed within the service territories of PG&E, Southern California Edison and San Diego Gas & Electric Co. has been purchased by direct access customers, who include large businesses, municipalities, school districts, and the state university system.

PUC President Loretta Lynch and Commissioner Carl Wood, who voted to end direct access, said that the Legislature's order last year that the PUC suspend direct access meant that the Commission should not try to interpret the law, but implement it. Doug Heller of the Foundation Taxpayer and Consumer Right said of the decision, "they're allowing the very same businesses that pushed for deregulation to escape the problems that resulted from deregulation."

Lynch said the commission voted without a clear legal ability to instate an exit fee. Earl Bouse, who chairs the California Large Energy Consumers Association, and is an executive at Hanson Permanente, a cement company in Cupertino, said that an exit fee as has been proposed by state consultants could wipe out savings realized from direct-access. The fee proposed was 2.395 cents per kilowatt hour, to which Bouse responded, "then it's a question of whether we can continue to do business in California."
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