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AM Power Report: Prices could shift lower to conclude week

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AM Power Report: Prices could shift lower to conclude week

Next-day power markets around the country could see choppy moves Friday, Dec. 8, amid generally softer load outlooks for the start of the new week.

Participants will also keep attuned to natural gas markets. Sinking nearly 16 cents in the Dec. 7 session, NYMEX January 2018 natural gas futures were higher early Thursday on short covering, gaining 4.6 cents to $2.809/MMBtu at 7:22 a.m. ET.

In line with the prior day's loss in futures, however, as well as the inclusion of the lower-load weekend days in the trading product, next-day natural gas prices at the major U.S. consuming hubs are likely to tip lower in most cases, offering little in the way of upside support for power values.

Looking at the weather, according to forecasts from AccuWeather.com, two storms will impact different regions of the Northeast this weekend, bringing cold and some snowfall to many areas.

In terms of demand, New England demand is called to crest at 17,000 MW on Friday and 16,600 MW on Dec. 11. New York load is likely to peak at 21,000 MW on Friday and 21,235 MW on Dec. 11.

In the Mid-Atlantic's PJM Western region, load is seen hitting highs at 57,550 MW on Friday and 56,900 MW on Dec. 11. PJM Mid-Atlantic region demand could near 37,800 MW on Friday and 37,900 MW on Dec. 11.

In the Midwest, PJM AEP region load is called to hit 19,100 MW on Friday and 18,575 MW on Dec. 11. Demand at PJM ComEd near Chicago is expected to crest at 13,900 MW on Friday and 13,130 MW on Dec. 11.

Texas demand is seen reaching 56,800 MW on Friday before sinking to 43,750 MW by Dec. 11. Load in California is expected to top out at 29,600 MW on Friday and 28,100 MW on Dec. 11.

In term trading action, January 2018 power prices were generally lower Dec. 7.

In the Northeast, January 2018 power parcels in New England traded in the mid-$70s, while parcels for the month at New York's Zone G ran in the mid-$60s. In the Mid-Atlantic, deals for January 2018 at PJM West were seen in the low $40s.

In the Midwest, January 2018 power packages at Northern Illinois traded in the mid-$30s, while parcels for the month at the PJM AEP-Dayton and MISO Indiana hubs were seen in the mid- to high $30s.

At the ERCOT North hub in Texas, power packages for January 2018 and first quarter 2018 delivery were transacted in the mid-$20s.

On the West Coast, at South Path-15 in California, January 2018 power was inked in the upper $30s, with first quarter 2018 deals assessed in the high $30s. January 2018 power at Mid-Columbia and Palo Verde was reported in the high $20s.

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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, natural gas index prices, as well as forwards and futures, visit our Commodities Pages.