Houston — The lifting of coronavirus pandemic restrictions, mixed with rising temperatures, pushed up New York Independent System Operator wholesale power prices an average of 35.5% in June, the largest month-on-month jump across the country.
Receive daily email alerts, subscriber notes & personalize your experience.Register Now
NYISO peakload averaged 21,166 MW in June, a jump of 30.5% from May, as temperatures increased and the state continued the process of gradually reopening after shutting down businesses and schools due to the coronavirus pandemic. New York City started phase one of reopening June 8. June peakload was also up 2% on the year.
New York City had 38.4% more cooling-degree days in June than last year and 60.3% more than normal, according to US National Weather Service data. Temperatures averaged 73.7 degrees Fahrenheit in New York City in June, 2.3 degrees above normal.
SPOT PRICES JUMP IN JUNE
As the city initiated reopening procedures in early June, NYISO Zone J NYC day-ahead on-peak locational marginal prices had the biggest month-on-month jump of 38.5% to average $22.37/MWh in June, according to ISO data. Off-peak increased 16.7% from May to average $14.62/MWh.
In contrast, year-on-year price movements continue to be down.
NYISO Zone A West day-ahead on-peak LMPs had the biggest year-on-year movement, dropping 20.9% to average $27.11/MWh, as on-peak real-time lost 34.8% to average $25.49/MWh.
The widest day-ahead to real-time spread was at Zone A on-peak of $1.63, according to ISO data.
Power prices followed the same trend as spot gas prices.
Transco Zone 6 New York averaged $1.430/MMBtu in June, down 32% year on year, but up 6% month on month, according to S&P Global Platts assessments.
POWER FORWARDS TREND LOWER
Power forwards continue to trend lower due to uncertainty of demand with the coronavirus pandemic still in effect.
NYISO Zone J NYC on-peak July averaged $28.43/MWh, down 28.4% from where the 2019 package averaged a year ago, but ticked up 2.2% on the month, according to S&P Global Platts data. The 2020 package rolled off the curve nearly $6.50 lower than its 2019 counterpart did last year.
The biggest difference was seen at NYISO Zone A West where on-peak July rolled off the curve more than $11.75 below where the 2019 package ended a year ago.
The trend continued down the curve.
Zone J on-peak August averaged $28.67/MWh, 24.5% lower than the 2019 package a year ago, as on-peak September averaged $24.36/MWh, 26.5% lower.
FUEL MIX COMPARISON
Nuclear remained the lead fuel source at 28.8% of the total fuel mix in June, despite falling 6.3 percentage points year on year, according to PJM data.
The region was without nearly 1.7 GW of nuclear generation that it had a year ago. Dominion's 813-MW Surry-2 was offline at the beginning of the June for a refueling outage that started May 3. Exelon Generation's 855-MW Three Mile Island retired in September 2019.
Dual fuel accounted for 23.8% of market share, up 3.3 percentage points year on year and an increase of 6.2 percentage points month on month. Dual fuel output jumped 72% from May to average 90,697 MWh/d in June.
Natural gas-fired generation made up 23% of the fuel mix, up more than 6 percentage points both month on month and year on year, as output averaged 87,933 MWh/d, a jump of 77% on the month and up 39% on the year.
Hydro generation was more than 20% of the mix, down 7.5 percentage points month on month, as output averaged 75,865 MWh/d, down 11.2% year on year.
Wind output was also down, falling 24% month on month and losing 13.4% year on year to average 8,243 MWh/d.
Total generation jumped 27% month on month to average 377,172 MWh in June.