Next-day power values in the U.S., excluding those inTexas, remained tethered to the downside Tuesday, Sept. 27, as dailiesresponded to outlooks for mixed to lower midweek demand and soft spot naturalgas prices.
After notching gains in early trade, the front-month Octobernatural gas futures contract reversed the uptick and closed the session nearunchanged at $2.996/MMBtu, slipping a scant 0.1 cent, with options expiring thesame day. Likewise, spot gas markets with the exception of TETCO-M3 edged lower.
In other supply, total U.S. regained someground early Sept. 27 as it rose to 88.13%, up from 87.21% on Sept. 26 butstill below the 88.78% reported on the same day in 2015.
Texasdailies notch gains on demand forecasts
Expectations for elevated Wednesday demand offsetpressures from retreating spot gas prices and provided dailies in Texas with aboost Tuesday.
ERCOT is anticipating a midweek load high of 52,376MW, rising more than 7,100 MW from Tuesday's forecasted peak. Owing to strongload outlooks, next-day deals at ERCOT North added roughly $3 on the session inthe high $20s.
Regional day-ahead markets traded power about $2higher from Monday at averages of $30.34 at ERCOT Houston, $27.66 at ERCOTNorth, $29.36 at ERCOT South and $28.23 at ERCOT West.
Eastdailies slide on choppy load, mixed gas prices
Power prices in the East continued to retreat Tuesdayas dailies were pressured by forecasts for mixed midweek demand and varied spotgas prices.
At next-day markets, New York Zone G and PJM Westslipped around a dollar from Monday in the low to mid-$20s and high $20s to low$30s, respectively, while deals at New York Zone A eased on the session andspanned the low $20s.
Day-ahead markets generally mirrored next-day movesand floundered as well. DAMs in New York shed $3 to $4 from Monday and notedaverages of $20.00 at New York Zone A, $22.29 at New York Zone G and $22.87 atNew York Zone J, while DAMs at NEPOOL-Mass were transacted a dollar lower andaveraged $28.07.
Load outlooks in the Northeast and mid-Atlantic remainvaried with New England possibly hitting a Wednesday high at 15,290 MW, down440 MW from Tuesday, while demand in New York could top out at 19,687 MW onWednesday, up more than 300 MW from Tuesday. Load in the PJM mid-Atlanticregion should crest at 33,429 MW on Wednesday, up but little changed fromTuesday's forecasted high, while demand in the PJM Western region may peak at46,945 MW on Wednesday, falling about 1,600 MW from the previous day.
Westmarkets flounder on sluggish fundamentals
Outlooks for slack Wednesday demand and lower spot gasprices fueled losses in the West on Tuesday.
In California, South Path-15 traded power in the high$30s for a daily loss of about $6. In the Northwest, mid-Columbia dailiesslipped by about $2 in the high $20s to low $30s, while COB deals tumbled byaround $5 from Monday and spanned the mid-$30s. In the Southwest, heavy-loadtransactions at Mead shed roughly $3 and ranged in the high $20s, while on-peaktrades at Palo Verde eased less than a dollar and were posted in the mid- tohigh $20s.
The California ISO is expecting midweek demand to runup to 37,499 MW, falling almost 2,400 MW from Tuesday.
Midwestdailies retreat on weak demand, cheap gas
Power prices in the central U.S. faltered Tuesdayowing to a lack of support from declining Wednesday demand and easing spot gasprices. MISO Indiana deals slipped by abouta dollar from Monday and ranged in the low $30s.
The Midwest may see soft midweek demand with load inthe PJM AEP region possibly reaching 14,601 MW on Wednesday, off about 500 MWfrom Tuesday, while demand in the PJM ComEd region should near 11,422 MW onWednesday, shedding more than 200 MW from the day prior.
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