Weekly Energy Market Updates by Region - Archive




Issue week: June 10th, 2021  (Wk 23)





WEST  Day Ahead prices have been strong over the first third of the month. In CAISO, the Day Ahead LMP has averaged around $35/MWh, approximately 30% higher than the last three Junes. In Mid-C, that average is around $30/MWh, 65% higher than the last three Junes. The high spot prices are the byproduct of extremely anemic hydro conditions in California and the Pacific Northwest, which have compelled the activation of expensive natural gas resources to pick up the slack. In the term market, the Q3 2021 forward strip has moved higher this week because of forecasts of hot weather through the 11-to-15-day forecast period, which portend a blistering summer ahead.

ERCOT  Real-time prices have settled in the mid $20s/MWh this week, but conditions are ripe for them to take off over the next few days as load is expected to rise along with temperatures across the state. The effect of surging gas prices continues to be felt not only in this summer’s prices but also in prices for next winter. The price for CY 2022 is up by nearly $5.00/MWh from a month ago! Drought conditions continue to wane across the state save West Texas, and the ORDC adder has been minimal over the first eight trading days of the month.

EAST Prices have picked up, thanks to the heatwave that hit the Northeast this week. On-peak prices have really rallied, the main hubs showing an increase from last week of at least $10/MWh in both Day Ahead and Real Time. In ISO-NE, which has endured the highest temperatures, the on-peak Day Ahead average for the week is $42/MWh, $12/MWh below Real Time. The Day Ahead average is similar in NYISO’s NYC zone, but Real Time is $18/MWh higher there. The softest on-peak prices have been in PJM’s West Hub, where Day Ahead is averaging $37/MWh and Real Time is only $2/MWh higher.






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