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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

IPL Receives Favorable Decision from IUB for Wind Farm Development

LCG, February 8, 2008--The Iowa Utilities Board (IUB) yesterday issued a decision approving a return on equity of 11.7 percent for up to 200 MW of wind development in Iowa planned by Interstate Power and Light Company (IPL), a subsidiary of Alliant Energy Corporation.

IPL plans to commence building the Whispering Willow Wind Farm in Franklin County, Iowa next year, with construction scheduled for completion in 2010. The electric generating capacity of the project is 200 MW, and the estimated project cost is $400 million to $450 million. The project will be IPL's first, company-owned wind farm. IPL has the ability to develop an additional 300 MW of wind power at an adjacent site given an acquisition from Iowa Winds, LLC. earlier this month.

IPL filed an application in September 2007 with the IUB concerning the proposed wind farms in Iowa. IPL requested approval that the proposed ratemaking principles were reasonable prior to committing to the project.

The IUB's decision approved the terms of a settlement agreement between IPL and the Iowa Office of Consumer Advocate that includes a return on equity of 11.7 percent and a 25 year depreciation life for up to 200 MW of wind capacity developed in Iowa by IPL.

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