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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Dominion Energy Virginia Pursues 500 MW of Renewable Projects

LCG, August 8, 2019--Dominion Energy Virginia announced Monday that it is seeking bids for up to 500 MW of renewable capacity in both 2021 and 2022 to increase its clean energy resources. Dominion Energy stated that it is committed to having 3,000 MW of solar and wind in operation or under development in Virginia by 2022. This near-term step is part of an ultimate company commitment to reduce carbon emissions by 80 percent by 2050 across the 18 states it serves.

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Industry News

Arizona Regulators Complain About El Paso Gas Pipeline Allotment

LCG, September 17, 2002-State officials in Arizona have filed complaints with FERC regarding El Paso Corp.'s gas shipping practices, which regulators allege to be unfair.

The Arizona Corporation Commission, responsible for regulating electric utilities and gas pipelines, filed complaints with FERC today, asserting that El Paso has not made its gas shipping practice equitable. On May 30, the Federal Energy Regulatory Commission (FERC) ordered El Paso Corp. to change its gas shipping practices in the southwest in order to allow for more uniform shipments. Some gas customers had complained that the company's shipping policies did not allow for sufficient regional access to gas supplies. Previous practices allowed certain customers, those with "full requirement" contracts, to have as much pipeline capacity as they wished, while other customers had to split up the remaining, limited capacity.

Californians asserted that high gas prices, due to limited supply, shared much of the blame in California's energy crisis of 2000/2001. These claims provided much of the impetus behind FERC's May order.

El Paso intends to change its policy starting November 1 and begin limiting supplies to those customers who previously enjoyed "full requirement" status. Those customers, which include Arizonans, will still have part of their necessary gas capacity reserved for them but will be subject to market forces for the remainder of their required capacity.

According to Reuters, the Arizona Corporation Commission asserts that its customers need full requirement status and that El Paso's new allotment is "unworkable, unfair, and discriminatory."

The filing awaits action under FERC docket RP00-336-002.

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