WEST Record-breaking temperatures along the entire West Coast have driven extreme demand and very high spot prices over the past week. Because tempera-tures have been high everywhere in the West, California has had to rely less on imported electricity and more on in-state physical generation. Consequently, the Day Ahead average in SP15 since last Thursday is $214/MWh. Forward prices also continue to rise in all regions because of the searing heat and expected lack of natural gas during the upcoming winter and next summer.
ERCOT Term prices climbed higher this week, mainly because of rising term natural gas prices. The real-time market also surged over the past seven days, particularly over the weekend, which featured several hours of triple-digit prices. Moreover, the ORDC adder is now averaging just over $10/MWh for the month, raising the average for real-time prices to the low $30s/MWh in all zones but the South, where the average is near $80/MWh. All eyes will be on the development of the tropical systems in the Gulf of Mexico for their effect on next week’s activity.
EAST Prices have remained largely steady in the Northeast this week. PJM has seen the most action, Real Time prices there spiking to $115/MWh last evening because of underperforming demand in the Mid-Atlantic, which yielded strong north-south congestion on Bagley-Graceton. In PJM West Hub, yesterday’s Real Time on-peak average was $32/MWh, $8/MWh over the Day Ahead on-peak av-erage.