trending Market Intelligence /marketintelligence/en/news-insights/trending/bzyfod08dvesugkoq7al0a2 content esgSubNav
In This List

US power markets diverge with demand at midweek

Podcast

Next in Tech | Episode 49: Carbon reduction in cloud

Blog

Using ESG Analysis to Support a Sustainable Future

Research

US utility commissioners: Who they are and how they impact regulation

Blog

Q&A: Datacenters: Energy Hogs or Sustainability Helpers?


US power markets diverge with demand at midweek

Editor's Note: Please be advised that S&P Global Market Intelligence will no longer publish daily articles on price trends in the U.S. natural gas, electricity and emissions markets beginning June 1, 2018. Pricing data for these energy markets will continue to be available on the Market Intelligence platform.

Next-day markets in the U.S. moved mixed Wednesday, May 23, amid outlooks for varied Thursday demand.

After posting significant gains the day prior, the front-month June natural gas futures contract managed to close the midweek session in shallow positive territory at $2.914/MMBtu, up 0.6 cent.

In other supply, total U.S. nuclear plant availability rose to 93.38% early May 23.

East values biased lower with mixed demand

Markets in the East were mixed to ultimately lower Wednesday following calls for varied Thursday demand.

At next-day markets, power deals at PJM West added roughly $2 from Tuesday and spanned the mid-$40s to low $50s, while New York Zone G deals were down about a dollar and were quoted in the low $30s. Packages at the New England Mass hub shed less than $1 and were seen in the mid- to high $20s.

Day-ahead markets also moved in different directions. New York Zone A packages added roughly $2 and averaged $31.25, while DAMs at the Mass hub saw little change from Tuesday and averaged $25.95. DAMs at New York Zone J slipped by about $1 and averaged $35.03, while DAMs at Zone G eased slightly and averaged $33.56.

Demand in the Northeast is set to fall. Load in New England may reach highs of 15,140 MW on Wednesday and 14,000 MW on Thursday, while demand in New York should touch peaks of 18,983 MW on Wednesday and 18,883 MW on Thursday.

Load in the mid-Atlantic is expected to rise. The PJM Mid-Atlantic region may top out at 35,858 MW on Wednesday and 36,346 MW on Thursday, while the PJM Western region should crest at 53,543 MW on Wednesday and 57,262 MW on Thursday.

West markets varied in revised trade

Prices in the West moved mixed Wednesday with some markets pressured by outlooks for slack Thursday demand.

Taking into account the Memorial Day holiday May 28, markets in the West traded power for May 24-25 delivery.

The California ISO is calling for peaks of 28,573 MW on Wednesday and 28,084 MW on Thursday. Pressured by load, power deals at South Path-15 slipped by roughly $3 and spanned the low $20s.

In the Northwest, packages at Mid-Columbia fell about $7 from Tuesday and were seen in the low teens, while deals at the California-Oregon Border added more than $1 and were heard in the low $20s.

Dailies in the Southwest added about $2 on the session with power ranging in the low $20s at Palo Verde and Mead.

Midwest dailies supported by load forecasts

Elevated demand forecasts boosted power dailies in the Midwest on Wednesday. MISO Indiana saw the bulk of Wednesday's activity with power prices ranging in the mid-$40s, up more than $3 from Tuesday.

In terms of load, demand in the PJM AEP region may hit peaks of 16,541 MW on Wednesday and 17,832 MW on Thursday, while load in the PJM ComEd region should near highs of 12,689 MW on Wednesday and 13,162 MW on Thursday.

Texas DAMs surge with strong demand outlooks

Strong Thursday load forecasts sent day-ahead markets in Texas higher Wednesday.

The Electric Reliability Council of Texas expects load to run up to 59,057 MW on Wednesday and 62,158 MW on Thursday.

Encouraged by demand, day-ahead markets posted gains of more than $10 from Tuesday and averaged $49.92 at ERCOT Houston, $54.65 at ERCOT North, $50.82 at ERCOT South and $49.66 at ERCOT West.

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.