Next-day power markets could open the workweek mixed Monday, Dec. 4, as traders look to varied load outlooks and gains for natural gas.
Ending the Dec. 1 session 3.6 cents higher, front-month January 2018 natural gas futures were extending those gains early Monday in overnight trading. At 6:45 a.m. ET, the contract was up another 3.9 cents to $3.100/MMBtu amid ongoing prospects for colder weather in many regions of the country, which is seen driving natural gas demand higher.
In line with the ongoing gains in the natural gas arena, next-day gas values could run higher in many cases in the week's opening session, with the upside also supported by more bullish weather forecasts.
In terms of demand, outlooks suggest diverging load as the workweek unfolds.
In the Northeast, New England load is expected to hit highs at 16,920 MW on Monday and 16,600 MW on Tuesday, while New York demand is called to reach 19,927 MW on Monday and 19,844 MW on Tuesday. In the mid-Atlantic, load in PJM Western region is seen cresting at 51,871 MW on Monday and 52,840 MW on Tuesday, while demand in PJM Mid-Atlantic is projected to top out at 35,538 MW on Monday and 33,835 MW on Tuesday.
In the Midwest, PJM AEP region load is forecast to reach highs at 16,805 MW on Monday and 16,173 MW on Tuesday, while PJM ComEd demand is seen peaking at 12,191 MW on Monday and 12,695 MW on Tuesday.
In the South, Texas demand is expected to touch a high near 43,181 MW on Monday and 42,338 MW on Tuesday. In the West, demand in California should near 30,740 MW on Monday and 31,530 MW on Tuesday.
Along the forward curve, January 2018 power predominantly favored the upside in its first day as the front-month offering Dec. 1, in tandem with prompt-month natural gas futures that advanced on the session to ultimately drive fueling costs higher.
In the East, price activity for January 2018 power tacked on about 20 cents to average atop $80 in New England and added near 60 cents to average above $47 at PJM West. Farther out, power values for February 2018 spanned the high $70s in New England and the high $40s at PJM West.
In the Midwest, power deals for January 2018 rose by about 80 cents to an index at almost $41 at PJM AD and climbed by roughly 60 cents to an average at about $38 at PJM Northern Illinois. Similar transactions at MISO Indiana rose by nearly $2 to an index close to $39. Along the forward curve, power trades for February 2018 were assessed in the high $30s to the low $40s.
In the South, pricing for January 2018 power slumped by roughly 10 cents against the broad uptrend to average at about $26 at ERCOT West but advanced by almost 10 cents to indexes spread from $27 to $30 at the rest of the ERCOT hubs. Regional price action for February 2018 power likewise ran through the mid-$20s to the low $30s.
In the West, transactions for January 2018 power in California picked up more than $1 to average atop $42 at North Path-15 and close to $46 at South Path-15, as similar trades recoiled by 60 cents against the wider advance at Mid-Columbia and rose by about 10 cents at Palo Verde to indexes on either side of $29. Deals for February 2018 power were carried out in the low $40s in California and in the high $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.
