WEST Demand in California has been relatively soft, thanks to mild temperatures and the implementation of new stay-at-home orders. Meanwhile, strong hydro generation in Oregon has limited the upside in Day Ahead prices there. Since the beginning of December, Day Ahead prices in SP15 and Mid-C have aver-aged around $39/MWh and $29/MWh, respectively. In contrast, forward prices have increased as additional supply issues in Arizona and Nevada pose signifi-cant risks for next summer. Consequently, the fear premium has been priced back in and driven up prices for all of 2021 and Q3 in particular.
ERCOT Gas prices have recovered in the front of the curve to lend addi-tional support to term prices, particularly for CY2021. This week, real-time prices have settled in the low-to-mid-$20s/MWh in all load zones save the West, where they have been clearing in the mid-$40s/MWh because of congestion in the late-night and morning-ramp hours. The ORDC adder is still minimal for the month.
EAST Load has been strong in ISO-NE as cloud cover, weak winds, and snow covering solar panels have boosted demand. RT prices have become more vol-atile than normal this week and are averaging $33.25/MWh, up by $17/MWh from last week. The DA average is also higher than last week by $9/MWh at $29.43/MWh. Over in PJM, NYISO, and MISO, prices have held steady in the mid $20s/MWh over the past few weeks.