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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

Governor Expands California Solar Roofs Plan

LCG, August 23, 2006--California Governor Schwarzenegger yesterday signed legislation to expand the California Solar Initiative. The plan is designed to result in one million solar roofs in California by 2018.

In January 2006, the California Public Utilities Commission (CPUC) approved the California Solar Initiative (CSI), a program designed to provide approximately $2.8 billion in incentives to spur development of approximately 3,000 MW of solar electric generating capacity over the period from 2006 through 2016.

With the Governor's approval yesterday of SB 1, elements of the Million Solar Roofs plan that the CPUC does not have the authority to mandate can now be implemented. For example, the plan will no longer by limited to Pacific Gas and Electric, Southern California Edison and San Diego Gas and Electric - the utilities regulated by the CPUC - but will be expanded to include the municipal-owned utilities, including the Los Angeles Department of Water and Power (LADWP) and the Sacramento Municipal Utilities Division (SMUD).

The new legislation will also increase the number of consumers that can sell surplus electricity back to the utilities by a factor of five (from 0.5 percent to 2.5 percent).

Another key element of SB 1 is that, commencing January 2011, it will require a developer of more than 50 new single family homes to offer a solar energy system alternative to all customers.

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