WEST Over the month of May, Day Ahead prices averaged around $60/MWh in CAISO and $56/MWh in Mid-C. As June bows, hydro generation should increase as warmer weather is expected to melt the snowpack in upper elevations to improve the supply stack during the nightly ramp throughout the month. In the forward market, prices have been flat this week. Market participants remain wary of any potential heatwave along the entire West Coast that could yield very high spot prices.
ERCOT Term prices remain buoyed by surging natural gas prices throughout the curve this week. Real-time prices have also stayed strong, especially in the Houston Load Zone. In fact, settled prices for last month were 300% higher than those of May 2021 in all zones save Houston, where they were 500% above those of a year ago. Temperatures and, in turn, loads are expected to climb next week, so spot prices should hold firm.
EAST Fears of price shocks fizzled over Memorial Day weekend and this short workweek after unusual heat had only a modest effect on index prices. “Peak” averages for last weekend and this week have ranged from $70/MWh to $124/MWh, in line with recent trends.