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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 Proposes Separate Firms for Separate States

LCG, Dec. 5, 2000--Scottish Power said yesterday that its PacifiCorp subsidiary has asked regulators in six states to approve a legal and regulatory realignment of the company that would create individual state electric companies, a generation company and a service company.

PacifiCorp has already filed with the Federal energy Regulatory Commission announcing its intention to join a regional transmission organization, RTO West, which would control its transmission facilities.

Under yesterday's proposal, PacifiCorp's state electric companies would be subject to the jurisdiction of the states in which they are located. The generation company would be regulated by the Federal Energy Regulatory Commission, which also regulates transmission. The Securities and Exchange Commission would regulate the service company.

Scottish Power said the proposal is designed to provide a permanent allocation of generation benefits and costs among the states served by PacifiCorp. This will allow each state to pursue regulatory policies deemed appropriate without affecting customers in other states or treating shareholders unfairly, the company said.

The proposal is not expected to have a significant impact on employees, or lead to downsizingbeyond the company's previously announced transition plan.

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