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PUC of Texas Approves Entergy Texas' Plans to Build Over 1,200 MW of Gas-Fired Capacity

LCG, September 12, 2025--Entergy announced yesterday that the Public Utility Commission of Texas (PUCT) approved Entergy Texas’ proposal to build two efficient natural gas-fired power plants to support the region’s rapid growth. The combined electric generating capacity of the two facilities, the Legend Power Station and the Lone Star Power Station, will add over 1,200 MW to the Southeast Texas power grid to support new customer demand, increase reliability and lower costs for all customers. Both facilities are scheduled to commence operations by mid-2028.

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Puget Sound Energy Starts Construction on 142-MW Appaloosa Solar Project in Washington

LCG, September 4, 2025--Puget Sound Energy (PSE) announced yesterday that phased construction has commenced on its 142-MW Appaloosa Solar Project, a utility-scale solar facility underway in southeastern Washington. The project is being built by Qcells EPC, who will serve as the module manufacturer and the engineering, procurement, and construction (EPC) solution provider. Construction is scheduled through 2026, and commercial operation is expected at the end of next year.

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Industry News

FERC Orders Market Power Investigations

LCG, December 16, 2004--The Federal Energy Regulatory Commission (FERC) issued orders yesterday for sixteen companies that had submitted market-based rate filings, which include tests of the potential for a company to exercise market power with respect to generation. Seven utilities failed one or more of the new market power tests, and the failure will institute Section 206 proceedings under the Federal Power Act, with the rebuttal presumption that the utilities have market power.

The utilities that failed the market power tests are: Duke Power, Southern Company, Entergy, Alliant Energy, American Electric Power, Kansas City Light and Power, and Public Service of New Mexico. In addition, Pinnacle West Energy and Puget Sound Energy were found not to have submitted the necessary information and will receive further scrutiny. At risk is the ability of each utility to sell wholesale electricity at market-based rates, rather than at the incremental cost of generation.

The FERC spent considerable time evaluating and revising its methods for analyzing market power. In July, the FERC issued its Order on Rehearing that confirmed and clarified the new tests to assess market power. In the Order on Rehearing, the FERC stated, "Market-based rate authority is not a right. The Commission may grant such authority under the FPA only to applicants who demonstrably lack market power." Utilities must file new market analyses at least every three years to preserve the right to sell power at market-based rates.

The two new screening tests analyze a market participant's total amount of uncommitted capacity available for wholesale sales in a market. The first screen is the pivotal supplier analysis, which examines a participant's generation market power during the peak hour of the year, and is based on a control areas annual peak demand. The hours leading up to that point are the most likely time that a participant will be a pivotal supplier.

The second screen is the wholesale market share analysis that examines the market share of a participant in all seasons. Both screens consider native load obligations, operating reserve requirements and other commitments of the participant. If the participant passes both indicative screens, it is presumed that generation market power does not exist. If the participant fails either screen, it is presumed that the generation market power exists.

Each utility that failed a market power test now has 60 days to either (1) file an additional analysis (the Delivered Price Test); (2) file a mitigation proposal developed for its specific circumstances, or (3) inform the FERC that it will adopt the default cost-base rates or propose other cost-base rates, together with supporting information. The FERC may also order a utility to refund overcharges.

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