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US power markets tick higher with load support

Next-day power prices across the country were biased higher Tuesday, March 6, as most markets took into account forecasts of strong midweek demand.

Following lingering cold weather in forecasts that could drive up demand, the front-month April contract extended early gains and closed the session up 4.5 cents at $2.749/MMBtu.

According to AccuWeather.com, parts of the northeast may be hit by a midweek storm, bringing with it the potential for "renewed power outages, heavy snow and widespread travel disruptions."

In other supply, total U.S. nuclear plant availability saw a modest increase early March 6 to 90.62%.

East markets notch gains ahead of nor'easter

Power markets in the East swung higher Tuesday following a combination of strong load forecasts and a storm engulfing parts of the region.

Across next-day markets, power at the New England Mass hub and New York Zone A rose by $3 to $4, respectively, and changed hands in the mid-$30s at the former and the low $20s at the latter. PJM West packages were up roughly a dollar with power pegged in the mid- to high $30s.

Day-ahead deals in the Northeast also responded to elevated demand forecasts with gains. Day-ahead power at New York Zone A surged by about $10 from Monday and averaged $28.35, while the Mass hub saw deals add more than $5 with power averaging $36.47. DAM trades at New York Zone G and New York Zone J rose by $1 to $2 from Monday and averaged $33.96 and $38.74, respectively.

Load is set to rise in the Northeast and mid-Atlantic. Demand in New England could reach highs of 16,350 MW on Tuesday and 16,980 MW on Wednesday, while load in New York should touch peaks of 19,452 MW on Tuesday and 19,713 MW on Wednesday. Demand in the PJM Mid-Atlantic region might hit 36,456 MW on Tuesday and 37,623 MW on Wednesday, while load in the PJM Western region should near 52,533 MW on Tuesday and 55,254 MW on Wednesday.

Midwest dailies supported by demand ahead of midweek

Forecasts of rising midweek demand inspired daily power markets in the Midwest to tick higher Tuesday. PJM AEP-Dayton saw the bulk of Tuesday's action, with power traded in the high $20s, up from a Monday index of $34.00.

In terms of demand, load in the PJM AEP region could top out at 16,626 MW on Tuesday and 17,485 MW on Wednesday, while demand in the PJM ComEd region should crest at 12,330 MW on Tuesday and 12,664 MW on Wednesday.

Strong load forecasts lift Texas dailies

Support from elevated midweek demand forecasts helped dailies in Texas move higher Tuesday.

The Electric Reliability Council of Texas is forecasting highs of 38,284 MW on Tuesday and 41,304 MW on Wednesday. Boosted by load, next-day deals at ERCOT North ranged in the high $20s, adding about $3 from Monday.

Day-ahead markets also noted gains of about $3, with power averaging $29.11 at ERCOT Houston, $29.19 at ERCOT North, $29.50 at ERCOT South and $29.25 at ERCOT West.

Western power markets biased higher despite slack demand outlooks

Despite calls for slack midweek demand, moves were biased higher in the West on Tuesday.

The California ISO is projecting peaks of 27,546 MW on Tuesday and 27,401 MW on Wednesday. However, power at South Path-15 added roughly $5 from Monday and changed hands in the low to mid-$40s.

In the Northwest, packages at Mid-Columbia were little changed from Monday and were traded in the low $30s, while deals at the California-Oregon Border were seen in the mid-$30s adding almost $3 on the session.

Conversely, in the Southwest, transactions at Palo Verde shed less than $1 and were heard in the high $20s to low $30s.

Market prices and included industry data are current as of the time of publication and are subject to change. For more detailed market data, including power and natural gas index prices, as well as forwards and futures, visit our Commodities pages.