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

Renewable Tax Credits Extended

LCG, January 7, 2013--The American Taxpayer Relief Act of 2012 was signed into law by the President on January 2, 2013, and the legislation includes provisions that extend tax credits for wind energy, biodiesel, cellulosic ethanol, electric vehicles, energy-efficient new homes and appliances.

The extension of the wind energy Production Tax Credit (PTC) both changes (i) the milestone from placing a new facility into service to commencing construction, and (ii) the deadline from January 1, 2013 to January 1, 2014. Given the new milestone, the one-year extension equates to much more than a year extension for project development.

Without the extension of the PTC and with relatively low natural gas prices, the outlook had been poor for continued growth in the development of land-based and offshore wind farms in the United States.

The American Taxpayer Relief Act of 2012 also extends the ability of new wind and certain other new renewable energy facilities that qualify for the PTC to elect a 30% investment tax credit (ITC) instead of using the PTC where construction began before January 1, 2014.

The Act also extends for another year "bonus depreciation" that allows taxpayers to immediately deduct 50 percent of the adjusted basis of certain types of property when the project is placed into service. Project developers now have until January 1, 2014 to place new solar, wind, or other renewable energy equipment into service.
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