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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

Avista Rate Agreement Reached in Washington State

LCG, Mar. 5, 2002--Effective today, an agreement has been reached between Industrial Customers of Northwest Utilities, the Public Counsel Section of the Washington Attorney General's Office, staff of the Washington Utilities and Transportation Commission (WUTC), and the Avista corporation.

Avista has been approved to recover ninety percent of deferred power costs, incurred over the second half of last year, amounting to about $196 million. These costs were found to be acquired prudently and therefore will cease to be refundable; Avista sustains a 25 percent surcharge to assuage operating costs.

Avista serves customers in four western states, including 210,000 in eastern Washington, from which it derives 67 percent of total electric revenues. Avista will write off $21.8 million of deferred expenditures that it cannot recover through customer rates, yielding a $0.30 non-cash charge per diluted share. This change brings Avista's 2001 consolidated earnings down to $0.20 per diluted share.

A five percent monthly bill increase will follow for all customers; This charge results in an additional $2.92 per month for customers using 1,000 kilowatt-hours, in a total charge of $55.81, which is still substantially below the national average.

Efforts to minimize the impact on customers include donating $50,000 to Project Share as well as extended payment programs and increasing awareness of pre-existing low-income programs.
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