POWER MARKETS
WEST Throughout July, Day Ahead prices have averaged around $69/MWh in CAISO and $38/MWh in Mid-C; strong hydro generation in the Pacific Northwest that has suppressed spot prices over the first three weeks of the month is responsible for the large spread. A heatwave featuring peak temperatures around 103 degrees in Portland is projected to hit the Pacific Northwest next week and should lift peak demand and prices there to start to close that gap. In the forward market, prices are higher than last week because of a substantial rise in the NYMEX forward curve.
ERCOT As term gas prices have made a dramatic reversal and are in the process of recapturing more than half of the gains lost last month, real-time prices continue to climb with the incessant heat. The average for the month to date is approaching $180/MWh, nearly six times the average for July 2021. Also striking is the current ORDC adder of just less than $33/MWh, whereas the value for July 2021 was a mere $0.50/MWh. The tropics may be rather quiet, but the high temperatures and triple-digit spot prices should continue into the first week of August.
EAST Widespread and persistent heat has increased both demand and prices across the Midwest and East this week. As year-to-date highs in system demand have been set in both NYISO and ISO-NE, index prices have cleared above $100/MWh in all regions. ISO-NE’s on-peak average actually cleared above $200/MWh for three days.