Recent below-average temperatures have suppressed Day Ahead prices. Over the past week, they have averaged around $45/MWh and $35/MWh in CAISO and Mid-C, respectively. Although temperatures are expected to rise this weekend, demand is projected to reach only 40 GW, which should lift index prices slightly. The soft cash prices have also pushed down forward prices in all regional trading hubs this week.
Term prices are higher this week, mainly because of rising natural gas prices. Real-time prices for August are averaging in the mid-$30s/MWh in all zones, right on par with the average for last August but well below that of August 2019.
EAST Both Real Time and Day Ahead are averaging in the $50-$60/MWh range across the main trading hubs as hot weather in the Midwest and North-east has elevated both load and prices. In MISO’s Indiana Hub, the Day Ahead average is $51/MWh, $0.60/MWh above Real Time. In contrast, the Day Ahead average of $56/MWh in ISO-NE’s Mass Hub is $4/MWh less than Real Time. Similarly, Day Ahead is averaging $48/MWh, $7/MWh below Real Time, in NYISO’s Hudson Valley. In both ISO-NE and NYISO, Real Time has blown up over the past couple of days. Mass Hub reached $375/MWh, and Hudson Valley actually hit $634/MWh.