Weekly Energy Market Updates by Region - Archive




Issue week: June 11th, 2020  (Wk 24)





WEST Hydro season in the Pacific Northwest remains in full swing as the abundant snow-melt pushes unregulated water through the turbines along the Columbia and Snake Riv-ers, and wind generation has been strong. However, because the AC transmission line connecting the Pacific Northwest to Northern California has been de-rated since June 2, power that would usually flow south into the Golden State instead has had to stay up north. All of these factors have brought about an oversupply, which has forced significant curtailment of hydro generation. Meanwhile, warm weather, in conjunction with the de-ration, has driven up Day Ahead prices in CAISO. Since the beginning of June, Day Ahead prices have averaged $23.63/MWh in SP15 but only $2.95/MWh in Mid-C.

ERCOT  The average for 7x24 real-time prices has stayed under $20/MWh this week. Despite average temperatures in the mid-90s across the state and a projected peak load well over 70 GW, the actual peak load for the week was just under 68 GW. Consequent-ly, summer 2020 on-peak prices dropped from approximately $127/MWh to $115/MWh. The prompt 12-month 7x24 forward curve also sank by $1.50/MWh from last week, but the outer years down the curve have remained relatively flat.

EAST Amid some of the highest temperatures of the year yesterday, system demand in both NYISO and PJM increased by 16% and 10%, respectively, from last week's peaks. NYISO's peak demand was 24.5 GW; PJM's was 131.6 GW. RT prices in NYISO held steady for most of the day but did jump in the evening hours when peak demand hit at HE18. On the other hand, PJM saw more RT volatility throughout the day, starting as early as HE11. The average DART spread for the day in PJM West Hub was $6/MWh..










With the dog days of summer basically already here, now is an ideal time for businesses in the Midwest and Northeast to avail themselves of Calpine Energy Solutions’ Capacity Obligation Reduction Effort (CORE) program. A completely voluntary program that runs each June 1 through September 30, CORE can help companies save money on their capacity costs in MISO, PJM, NYISO, and ISO-NE for next year.

A consumer’s capacity charges in those regions are a function of not only local capacity auction clearing prices but also the consumer’s peak load contribution (PLC), effectively its share of the total system load during the peak-load hour of the peakload day of the preceding year. (PJM considers the peak-load hour of each of the five highest peak-load days of the previous year.) Therefore, if a company is able to lower its PLC, the resulting reduction in capacity costs will be reflected in its electricity invoices for the next planning year.

Calpine Energy Solutions’ CORE team helps customers maximize their opportunities for such savings by using its sophisticated forecasting system to notify them of potential peak-load days, sometimes days in advance. Each notification suggests a specific date and hours for power curtailment, tailored to each customer’s unique circumstances. With the CORE team’s expert insight, a customer can then curtail its energy use however it sees fit, whether by turning some lights off, raising the thermostat setting, or shifting production outside peak hours. Then, after the ISOs publish their system peaks, Calpine Energy Solutions, for those customers that would like it, will issue a “SCORE Card” like the above image, which provides an estimate of the annual capacity savings achieved.




Previous Weekly Market Reports: Archive


Disclaimer: This report is for informational purposes only and all actions and judgments taken in response to it are recipient’s sole responsibility. Champion Energy Services does not guaranty its accuracy. This reports is provided ‘as is’. Champion Energy Services makes no expressed or implied representations or warranties of any kind. Except as otherwise indicated in this report, this report shall remain the sole and exclusive property of Champion Energy Services and shall be free from any claim or right, license, title or interest. Champion Energy Services shall not be liable for any direct, indirect, incidental, consequential, special or exemplary damages or lost profit resulting from this report.