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

Calpine to Acquire 1,050-MW Power Plant in Texas

LCG, December 3, 2013--Calpine Corporation announced yesterday that it agreed to purchase a 1,050-MW, combined-cycle power plant for $625 million, exclusive of adjustments relating to development rights and working capital, from MinnTex Power Holdings, LLC, a portfolio company owned by a private investment fund managed by Wayzata Investment Partners LLC. The natural gas-fired electric generating facility is located approximately 30 miles northeast of San Antonio, Texas.

The Guadalupe facility is located on a 110-acre site and includes two 525-MW generation blocks. Each block includes two GE 7FA combustion turbines, two heat recovery steam generators (HRSGs), and one GE steam turbine. The acquisition includes rights to an advanced development opportunity for an approximately 400 MW quick-start, natural gas-fired peaking facilities.

Calpine's Chief Executive Officer stated, "Guadalupe is an exceptional plant with an outstanding performance record that meets Calpine's high standards for operational excellence. We strongly believe in the potential of the Texas market as electric demand increases and reserve margins tighten. Acquiring this modern, flexible and efficient plant in ERCOT's south zone at a discount to replacement cost furthers our strategic objectives in this key market. The Guadalupe acquisition exemplifies our commitment to making disciplined capital allocation decisions that will enhance shareholder value."

Calpine is targeting a transaction close in the first quarter of 2014.

The facility was a 50-50 joint venture between Panda Energy International and PSEG Americas, and the EPC was Duke/Fluor Daniel. The project commenced operations in 2001. MinnTex Power Holdings acquired the facility on March 4, 2011 for approximately $351 million.
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