Following mostly losses in the prior session, the price of day-ahead power could sag Wednesday, Dec. 13, as the anticipation of generally diminished demand in the latter part of the workweek conspires with recent weakness in natural gas futures.
Additionally, sharp losses in the natural gas futures market Dec. 12 are likely to weigh on next-day gas and power markets alike in the midweek session. Sinking 15 cents in the prior day to settle at a near 10-month low, NYMEX front-month natural gas futures were edging slightly higher on short covering early ahead of the opening bell Wednesday. At 7:35 a.m. ET, the contract was up 3.9 cents to $2.717/MMBtu.
On the demand side, outlooks indicate generally softer load in the latter part of the workweek.
In the Northeast, load in New England is expected to crest at 18,900 MW on Wednesday and 18,840 MW on Thursday, while demand in New York is projected to peak at 22,287 MW on Wednesday and 22,200 MW on Thursday. In the Mid-Atlantic, PJM Western region demand is forecast to top out at 62,056 MW on Wednesday and 60,020 MW on Thursday, while demand in PJM Mid-Atlantic is seen hitting highs at 42,080 MW on Wednesday and 40,755 MW on Thursday.
In the Midwest, load in the PJM AEP region is projected to reach highs at 20,495 MW on Wednesday and 18,721 MW in the latter part of the business week, while PJM ComEd load is poised to touch a high near 13,932 MW on Wednesday and 13,534 MW on Thursday.
In the South, Texas load is called to reach 45,842 MW on Wednesday and 43,592 MW on Thursday. In the West, load in California should near 30,840 MW on Wednesday and 30,940 MW on Thursday.
In term action, power for January 2018 delivery shed value in much of the country Dec. 12, in tandem with front-month natural gas futures that notched substantial losses to ultimately signal a reduction in fueling costs.
In the East, trades for January 2018 power were off almost $5 in the mid-$70s in New England and down 70 cents in the low $40s at PJM West. Along the forward curve, power for February 2018 was transacted in the low $70s in New England and in the low $40s at PJM West.
In the Midwest, losses on either side of $2 steered month-ahead power pricing to the mid-$30s at PJM AD and the low $30s at both PJM Northern Illinois and MISO Indiana. Power values for February 2018 likewise spanned the low to mid-$30s overall.
In the South, January 2018 power at the ERCOT markets gave back more than $1 in deals carried out in the low to high $20s. Regional trading activity for February 2018 power was similarly spread in the low to high $20s.
In the West, both North Path-15 and South Path-15 in California saw prompt-month power unravel more than $2 in deals assessed in the mid- to high $30s, while front-month power was quoted in the high $20s in trades up about $1 at Mid-Columbia but down roughly $1 at Palo Verde. February 2018 power was marked in the low $30s in California and in the low $20s elsewhere in the region.

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.
