WEST The relatively mild temperatures over the first week of July have kept Day Ahead prices from spiking. Since July 1, they have averaged around $37/MWh in SP15 and $39/MWh in Mid-C. Despite predictions of above-average temperatures still to come throughout the summer, the forward market for August and September has been flat this week.
ERCOT Despite abundant rainfall along the Gulf Coast and the accompanying reduction in system loads, loads have still exceeded forecasts amid weak wind output to keep 7x24 real-time prices relatively strong with an average of $40/MWh for the week. Thursday’s real-time average actually approached $90/MWh. Despite the very mild start to July and forecasts of below-normal temperatures over the next 7-10 days, summer forward prices remain strong. Basically flat since last week, Bal-July 7x24 and August are trading at $50/MWh and $84/MWh, respectively. Term prices past this summer are also flat from last week as natural gas has stayed flat despite daily volatility.
EAST As hot and humid weather has pushed NYISO system demand past 28 GW and near a possible summer peak, prices have likewise risen. The mixture of heat and thunderstorms has challenged forecasting ability and invited high Day Ahead and Real Time price volatility in which Real Time has been settling higher, especially in Zones H through K. ISO-NE has had a relatively quiet week as the thunderstorms have neutralized any surges in demand. Over in PJM, demand on Tuesday and Wednesday produced the third and fourth highest peaks of the year to date, respectively.