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EPA and Texas Railroad Commission Sign Memorandum of Agreement for Permitting Geologic Storage of Carbon Dioxide

LCG, April 29, 2025--Officials from the U.S. Environmental Protection Agency (EPA) and Texas Railroad Commission (RRC) signed a memorandum of agreement (MOA) today outlining the state’s plans to administer programs related to carbon storage wells, known as Class VI wells. The MOA signing is a required step in the RRC’s application to be granted authority to permit Class VI wells in the state of Texas. EPA is currently preparing a proposed approval of RRC’s primacy application.

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Calpine and ExxonMobil Sign CO2 Transportation and Storage Agreement for CCS Project in Texas

LCG, April 24, 2025--Exxon Mobil Corporation (ExxonMobil) announced yesterday an agreement with Calpine Corporation (Calpine) to transport and permanently store up to 2 million metric tons per annum (MTA) of CO2 from Calpine’s Baytown Energy Center, a natural gas-fired facility located near Houston, Texas. This is part of Calpine’s Baytown Carbon Capture and Storage (CCS) Project that is designed to add CCS for the facility’s CO2 emissions. The Calpine facility could then provide a 24/7 supply of low-carbon electricity to the Texas grid plus steam to nearby industrial facilities.

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Industry News

PacifiCorp Asks Oregon for $85 Million Boost

LCG, Nov. 3, 2000--British utility Scottish Power Plc said yesterday its U.S. subsidiary PacifiCorp has filed a rate case with the Oregon Public Utility Commission asking for an overall net rate increase of $85 million over today's retail electricity prices.

The rate hike, if approved, will go into effect eleven months from now, on Oct. 1, 2001.

Scottish Power said most of the increase would offset the increased costs of producing power. In its filings with Oregon and other states, the company said it would need about 9 percent more than current revenues to cover those costs.

The company pointed out that this was a lot less that other utilities in the region need because of PacifiCorp's extensive generation portfolio which allows it to substantially manage its power cost risks.

On Monday, the company made separate filings with regulators in Idaho, Oregon, Utah and Wyoming asking for authority to defer accounting for its excess wholesale electricity costs. Despite its extensive generation portfolio, PacifiCorp has to purchase power now and then. Under deferred accounting the utility will be able to record those costs as they are incurred and then seek recovery in later rate cases.

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