Weekly Energy Market Updates by Region - Archive




Issue week: February 25th, 2021  (Wk 8)





WEST After natural gas prices normalized, Day Ahead prices calmed down, aver-aging $31.92/MWh and $25.22/MWh in SP15 and Mid-C, respectively, since last Saturday. In the term market, Q3 forward prices have moved up because of below-normal snowpack in California and uncertainty about the availability of the 1,300 MW baseload supply from Diablo Canyon Unit 1 during the summer.

ERCOT  Driven mainly by falling natural gas prices, term prices retreated in the front of the curve. Term heat rates were mixed with some consolidation in the front of the curve followed by a rally in the outer years. Meanwhile, given last week’s settles near the $9,000/MWh price cap, real-time prices could do nothing but hold there or go lower. At more than $100/MWh, the ORDC adder remains incredibly high for February. Fortunately, forward weather projections have taken a milder turn, so last week’s brutal market developments should not repeat them-selves.

EAST Both Day Ahead and Real Time prices have increasingly softened every day this week across the regional ISOs. For instance, whereas Day Ahead settled above $100/MWh in the main hubs of each ISO last Thursday, it printed in the low $20s/MWh to mid-$30s/MWh yesterday. In NYISO, DART spreads have picked up at Hudson Valley and NYC, where Day Ahead is above Real Time by an average of $15/MWh. A similar trend is happening at Indian Hub in MISO, where the DART spread is averaging $27/MWh this week.






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