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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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Doral Renewables Selects NovaSource as Partner to Deploy the 1.6-GWdc Mammoth Solar Project in Indiana

LCG, April 21, 2025--NovaSource Power Services ("NovaSource") recently announced that it has partnered with Doral Renewables and has been selected as the Operations and Maintenance ("O&M") and Generator Operator ("GO") for the Mammoth Solar Project, one of the largest agrivoltaics facilities in the United States.

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Industry News

FERC Would Use Incentives to Encourage RTO Membership

LCG, Jan. 15, 2002--The Federal Energy Regulatory Commission has given its support to a staff proposal that aims to bring transmission assets owned by utilities under regional transmission organizations through increased rate of return incentives.

The proposal will be submitted for public comment over a 45-day period, and would permit public utilities to gain federal approval for up to an additional 2 per cent in rate of return on equity. Utilities could earn up to 50 basis points of additional return on equity for transmission investments based on their joining a regional transmission organization; 150 basis points for divested transmission assets; and 100 basis points for expansion of transmission assets. While the incentives for joining an RTO would last through 2012, the incentive for divesting transmission assets would be offered through 2022.

FERC's aim with the set of incentives is to allow greater access by independent power producers with no transmission assets. Utilities would not receive direct benefit from the incentive for divested assets; rather, they would see more profitable asset sales, which would likely be at a higher price because of the incentive. Ultimately, FERC would like dispatching of generation to be the responsibility of actors other than their owners.
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