Values across major next-day markets around the country were biased higher on Friday, June 9, with prices in the East and Midwest seeing significant gains prompted by forecasts of hot weather.
At the natural gas futures arena, the front-month July contract notched a modest 1.1-cent gain and closed the workweek on the positive side of the ledger at $3.039/MMBtu. Mixed moves were noted across spot gas markets which traded a combined three-day product for June 10 to 12 delivery.
The unexpected loss of Riverstone Holdings LLC's Susquehanna 1 in Pennsylvania led to a drop in total U.S. nuclear plant availability early June 9 to 90.89%.
According to forecasts from AccuWeather.com, temperatures are expected to soar in the central and eastern U.S. by weekend through next week.
East values climb on elevated cooling demand, gas support
Power prices in the East tacked on impressive gains on Friday following increased cooling demand brought about by incoming heat and support from higher spot gas prices.
Demand in the Northeast and mid-Atlantic is projected to rise, with New England load possibly reaching a high of 21,400 MW on June 12, up by more than 7,000 MW from Friday, while New York demand should touch a peak of 27,085 MW on June 12, climbing by roughly 7,840 MW from Friday. Load in the PJM Mid-Atlantic region and PJM Western region could rise by 17,000 MW to 18,000 MW from Friday to hit June 12 peaks of 52,288 MW and 72,351 MW, respectively
Boosted by demand, next-day markets at the New England Mass hub and PJM West traded power for a premium above $25 in trades, spanning the low $50s at the former and the low to mid-$50s at the latter.
Despite trading for lower load Saturday, day-ahead markets leaned mixed to higher. DAMs at the Mass hub, New York Zone G and New York Zone J added around $1 to $2 on the session and averaged $23.33, $26.76 and $27.73, respectively, while New York Zone A transactions slipped by roughly $5 and averaged $16.45.
Midwest dailies tick higher with heat
Expectations of strong cooling demand due to hot weather countered pressures from varied gas prices and led power markets in the Midwest to exchange packages at a premium on Friday. Seeing the bulk of the session's trading action was MISO Indiana, where on-peak power was transacted in the mid- to high $50s, up by more than $20 from Thursday.
The PJM AEP region should note highs of 16,034 MW on Friday and 20,921 MW on June 12, while demand in the PJM ComEd region may top out at 15,821 MW on Friday and 20,020 MW on June 12.
Calif., Southwest dailies notch gains; Northwest values tumble
Excluding trades done in the Northwest, mixed to higher moves were seen across western power markets on Friday as projections of firm June 12 demand associated with next-day schedule revisions countered a fall in spot gas prices.
In California, heavy-load deals at South Path-15 were up by around $4 and changed hands in the mid-$20s. Hubs in the Southwest saw increases of $1 to $2 on the session with Palo Verde and Mead deals done in the mid-$20s. Defying the trend were values in the Northwest, which notched losses of $3 to $6 from Thursday and ranged in the negatives to single digits at Mid-Columbia and the low to mid-teens at the California-Oregon Border.
Saturday load in California should crest at 26,305 MW, down by roughly 2,800 MW from Friday. Demand, however, should recover at the start of the new workweek on June 12.
Texas DAMs flounder into the weekend
Day-ahead values in Texas took a small step back Friday despite strong load forecasts and some support from varied gas prices.
DAMs at ERCOT North, ERCOT South and ERCOT West shed $2 to $3 on the session and averaged $24.88, $28.70 and $22.66, respectively, while ERCOT Houston deals were nearly unchanged from Thursday and averaged $34.63.
Demand in Texas may top out at 59,508 MW on June 12, around 5,300 MW higher from Friday.
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 and coal index prices, as well as forwards and futures, visit our Commodities Pages.