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ERCOT Announces Organizational Changes to Promote Grid Reliability, Rapid Demand Growth, and Innovation

LCG, December 12, 2025--Today, the Electric Reliability Council of Texas, Inc. (ERCOT) announced strategic organizational changes designed to accelerate innovation, strengthen grid reliability, and support the unprecedented growth in the demand for electricity across Texas. To meet these objectives, ERCOT created two new organizations: Interconnection and Grid Analysis, and Enterprise Data and Artificial Intelligence (AI). The two organizations will formally launch in January 2026.

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NextEra Energy Resources and Basin Electric Power Cooperative Announce MOU to Develop 1,450-MW Natural Gas-fired Power Plant in North Dakota

LCG, December 8, 2025--Basin Electric Power Cooperative (Basin Electric) and NextEra Energy Resources, LLC (NextEra) today announced that they have signed a memorandum of understanding (MOU) to explore the joint development of the River Run Energy Center, a new combined-cycle natural gas-fueled generation facility in Basin Electric's North Dakota service territory. The proposed facility will have a planned capacity of approximately 1,450 MW.

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Industry News

AES Cuts California Power Production in Half

LCG, Nov. 30, 2000--AES Corp., under threat of a lawsuit by the South Coast Air Quality Management District, has cut by half the output of its California power plants, the company said yesterday after the possibility of the suit was reported.

AES owns three Los Angeles-area power plants it purchased from Southern California Edison Co. in response to the California electric restructuring law., the 1,602 megawatt Redondo Beach Steam Plant, the 1,017 megawatt Huntington Beach Steam Plant and the 2,097 megawatt Alamitos Steam Plant in Long Beach.

The Alamitos plant has already exceeded its annual allocation for emissions of oxides of nitrogen and the air quality district may sue the company, AES said earlier this week in a filing with the Securities and Exchange Commission. Aaron Thomas, manager of AES Pacific, said the Huntington Beach and Redondo Beach plants were close to reaching their NOx allocations.

In a petition filed earlier this month, the air quality district said that the plants could operate beyond the limits of their NOx allocations if the California Independent System Operator declared a power emergency. The Cal-ISO declared more than 30 such emergencies this past summer, about 20 of them "Stage 2" emergencies under which the state's three investor-owned utilities were obliged to curtail power deliveries to customers with interruptible contracts.

Because of an insufficiency of new power plant construction, and an inability to import power in hoped-for quantities, the state suffered an electricity shortage all summer. Existing power plants were pushed to their limits to prevent rolling outages or even blackouts.

Because of the power situation in the state, power producers and utilities are being buffeted by three agencies: The California Energy Commission has been loath to override local "not in my backyard" sympathies in licensing new power plants. The Cal-ISO has all but demanded that owners of existing power plants run them whatever the cost in emissions. The South Coast Air Quality Management District is threatening lawsuits to enforce emissions restrictions.

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