POWER MARKETS
WEST To keep needed megawatts in the Pacific Northwest as the region has endured a brutal heatwave this week, on-peak index prices have been priced considerably higher in Mid-C than in CAISO. Indeed, whereas the averages in SP15 and NP15 are $98.48/MWh and $99.28/MWh, respectively, the average in Mid-C is $124.29/MWh. Consequently, transmissions on the high-voltage line that sends Pacific Northwest energy to serve California load have decreased by 30%.
ERCOT Real-time prices this week have come in a bit lower than last week. Across all four zones, the month-to-date average is down by approximately $15/MWH to $157/MWh, and a substantial portion of that figure comprises the ORDC adder of approximately $25/MWh, nearly 50 times what that adder was a year ago. Term forward prices have been mixed as term gas prices have stimulated an increase in the front of the curve. Although a hint of relief in near-term weather over the next few days is emerging, August remains typically the month with the highest cooling-degree days, and this year will likely not be an exception as the extreme drought conditions continue to dominate most, if not all, of the state while the tropics stay quiet.
EAST The Northeast has experienced a relatively quiet week in terms of weather and demand, yet prices remain strong. Triple-digit index prices have popped up in nearly every region, and PJM has recorded negative DART spreads in the evening hours. Averages are $103.18/MWh in PJM West Hub, $98.92/MWh in Indy Hub, and $115/MWh in NYC.