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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

Pepco May Buy Conectiv, Paper Says

LCG, Feb. 8, 2001Potomac Electric Power Co. is in negotiations to acquire Conectiv Inc. for around $2 billion in cash and stock, the Wall Street Journal reported this morning, speculating that a deal could be announced "within days."

According to the paper, several issues remain to be resolved and the talks could fall apart. In addition, a rival buyer could emerge at the last minute.

With those caveats, the Wall Street said Pepco is offering a half cash, half stock deal that would value Conectiv at close to $25 per share, a premium of $6 over its closing price yesterday and about $4 over its 52-week high. Pepco is also expected to assume nearly $3 billion in Conectiv debt.

Conectiv, which was created from the merger of Delmarva Power & Light Co. and Atlantic Energy Inc., serves about a million customers in Delaware, Maryland, New Jersey and Virginia, all states that have deregulated their electric industries. The company is considered small to play in a competitive market. Without any bad news, the value of its stock has dropped by about an eighth in the past two years.

Pepco has been trying to break out of its Washington, D.C., market, and in 1997 came close to merging with Baltimore Gas & Electric Co. before regulators attached onerous conditions.

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