WEST In the index market, above-average temperatures and strong hydro gen-eration have limited the volatility of Day Ahead prices throughout December. In the term market, Calendar Year 2021 remains strong because of very high forward prices in the Palo Verde curve for the neighboring Desert Southwest.
ERCOT Whereas term natural gas prices have risen by a nickel or so out the curve, term power prices have been flat to down a bit from last week, but the big news this week is the release of the Capacity, Demand, and Reserves report. Basically, given the projected onset of new renewable generation, ER-COT has called for nearly an 80% increase in the reserve margin over the next four years. Accordingly, the reaction in term prices has not been supportive. Real-time prices have settled in the mid-$20s/MWh for most of the week, ex-cept the morning-ramp hours, which have recorded some triple-digit prints at the various load zones. Consequently, the ORDC adder for the week has been negligible.
EAST In the aftermath of Winter Storm Gail in the Northeast, RT prices have skyrocketed to year-to-date highs over the past two days: NYISO’s Hudson Valley reached $188/MWh last evening, and ISO-NE’s Mass Hub rose to $148/MWh this afternoon. Prices in the Northeast are poised to remain bullish through the storm.