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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

FERC Finds Much Room for Demand Response

LCG, July 9, 2003--Despite high natural gas prices and resulting increased power prices, staff of the Federal Energy Regulatory Commission have found little evidence of coordinated reduction in demand aimed at heading off price spikes.

Those regions of the country that have experienced the most severe power price increases include Florida, Texas and the West Coast, according to FERC's Office of Market Oversight and Investigations. It stated that FERC has tried to bring rules into effect that would increase the potential benefits of demand response. The areas of the country where demand response has received the most attention are New York, Connecticut, California and Florida.

The Office of Market Oversight and Invesigations' Summer Energy Market Assessment included remarks in the outline that "Demand response, an effective tool for dampening price spikes, is missing from electricity markets."
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