I am certain the West Coast is
paying way too much for power. Geeezz
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Bloomberg Energy Department
01/16 Bloomberg Daily Power Report
Table
Bloomberg U.S. Regional Electricity Prices
($/MWh for 25-50 MWh pre-scheduled packages, excluding transmission costs)
On-Peak
West Coast Index Change Low High
Mid-Columbia 274.43 +274.43 255.00 290.00
Ca-Or Border 258.75 +258.75 250.00 265.00
NP15 250.00 +250.00 230.00 260.00
SP15 227.60 +227.60 210.00 243.00
Ault Colorado 240.00 +240.00 210.00 243.00
Mead 225.00 +225.00 220.00 230.00
Palo Verde 221.88 +221.88 200.00 260.00
Four Corners 230.00 +230.00 229.00 231.00
Mid-Continent
ECAR 40.43 +1.89 38.57 43.00
East 44.00 +3.50 43.00 45.00
AEP 40.50 +0.50 39.00 42.00
West 38.00 +3.75 34.00 42.00
Central 40.59 +4.14 39.00 44.00
Cinergy 40.59 +4.14 39.00 44.00
South 37.33 -2.17 36.00 40.00
North 42.00 +0.50 40.00 44.00
Main 38.82 +4.32 34.00 43.00
Com-Ed 36.81 -2.19 33.00 40.00
Lower 40.83 +10.83 35.00 46.00
MAPP 41.00 +0.75 37.00 44.00
North 39.00 +0.50 36.00 43.00
Lower 43.00 +1.00 38.00 45.00
Gulf Coast
SPP 40.96 +2.29 37.50 44.00
Northern 41.67 +2.34 40.00 43.00
ERCOT 64.75 -1.08 60.00 68.00
SERC 44.05 +3.39 42.14 46.58
Va Power 55.00 +14.25 54.00 56.00
VACAR 46.50 +5.00 45.00 48.00
Into TVA 37.33 -2.17 36.00 40.00
Out of TVA 40.99 -6.38 39.96 44.09
Entergy 47.00 +8.48 44.00 51.00
Southern 38.00 +1.00 37.00 39.00
Fla/Ga Border 39.50 -0.50 35.00 44.00
FRCC 44.00 -2.50 40.00 47.00
East Coast
NEPOOL 77.36 +3.61 72.50 78.50
New York Zone J 70.60 +1.60 68.00 75.00
New York Zone G 66.17 +3.67 61.50 67.00
New York Zone A 50.00 +1.00 49.00 50.50
PJM 42.36 +0.11 41.00 44.00
East 42.36 +0.11 41.00 44.00
West 42.36 +0.11 41.00 44.00
Seller's Choice 41.86 +0.11 40.50 43.50
End Table
Western Power Prices Rocket With Unit Outages, Cooler Weather
Los Angeles, Jan. 16 (Bloomberg Energy) -- Western U.S. spot
power prices soared across the region because of unit outages and
cooler weather in the Southwest.
"With all the problems for shortages of power in California,
and now unit outages, prices will definitely fly,'' said one
Northwest power marketer.
Transalta Corp's two 665-megawatt Centralia coal units
located in Centralia Washington tripped overnight. It's uncertain
what was wrong with the units or when they will restart.
Peak power at the Mid-Columbia trading point in Washington
traded at $255.00-$290.00 a megawatt hour, surging $95.29 from
Friday's Monday-Tuesday packages. Off-peak power traded $73.33
higher than Friday's packages, trading at $229.00-$231.00.
"Since the Centralia coal unit has tripped prices in the
Northwest are jumping as high as $100 megawatt in some
locations,'' said one Northwest player.
Arizona's Public Service Co.'s 740-megawatt Four Corners coal
unit in New Mexico shut yesterday evening for tube leak repairs.
It's uncertain when the unit will restart.
At the Palo Verde switchyard in Arizona, prices increased an
average of $49.14 from Friday's package, selling at $200.00-
$260.00.
"Temperatures are cooler in the Southwest causing prices to
really rise,'' said one Southwest trader.
According to Belton, Missouri-based Weather Derivatives Inc.,
temperatures will average about 3 degrees below normal in Los
Angeles and across the Southwest over the next seven days.
"Prices are flying because of units being down as well as
strong Cal-Px values,'' said one Northwest trader.
The California Power exchange on peak price was $398.89 a
megawatt-hour, higher than most people expected, traders said.
The California Independent System Operator has issued a stage
3 emergency in effect until midnight local time because of
insufficient reserves of energy.
A stage 3 emergency occurs when operating reserves fall less
than 1.5 percent.
-Robert Scalabrino
PJM Daily Power Prices Little Changed as Mild Weather Continues
Baltimore, Jan. 16 (Bloomberg Energy) -- Next-day power
prices in the Pennsylvania-New Jersey-Maryland Interconnection
were little changed amid continued mild weather, traders said.
Power scheduled for Wednesday delivery to the Western Hub of
PJM averaged $42.36 a megawatt-hour amid light volume, with trades
at $41-$44.
"There was a very modest amount of activity going on this
morning," said one PJM-based trader. "Yesterday was more volatile
than this, and it was a holiday."
Traders cited low prices, the result of unseasonably warm
weather, as the reason for the lack of market participation.
"Prices are too low to attract any interest," said one
trader. "No one wants to deal at these levels."
The Weather Channel forecast the high temperature in
Baltimore at 44 degrees Fahrenheit Wednesday. Temperatures were
expected to reach as high as 52 degrees by Friday. National
Weather Service data showed the normal temperature in Baltimore
for this period to be 31 degrees.
Further out in the forward markets, prices slipped with
falling natural gas values. February parcels dropped $2, trading
down to $53 from $55; and March, which sold at $52 yesterday,
traded at $50.50 this morning, traders said.
"We're seeing prices trend down now because of what's going
on in the [natural] gas markets," one trader noted. "Power prices
are feeling the pull of gas."
The February contract for natural gas delivered to the Henry
Hub was down 37 cents at $8.10 per million British thermal units
on the New York Mercantile Exchange as of 2 p.m. local time.
Trades ranged from $8.250-$7.940 per million Btu.
In New York, day-ahead prices rose although production
increased at Consolidated Edison's Indian Point 2 nuclear reactor.
The 985-megawatt unit was operating at 45 percent of capacity this
morning following a refueling outage.
"I'm surprised to see prices up this morning," said one New
York trader. "With IP2 on it's way back up, I expected to see a
drop in prices, but I guess some are still leery because of
previous complications with the unit."
Zone G increased $1.84 to a Bloomberg index price of $67.67,
and Zone J moved up $1.60 to an index of $70.70.
-Karyn Rispoli
Mid-Continent Power Prices Rise on Position Covering, Weather
Cincinnati, Jan. 16 (Bloomberg Energy) -- U.S. Mid-Continent
peak next-day power prices rose with revised colder weather
forecasts and fewer sellers in some markets, traders said.
The Bloomberg index price for peak power on the Cincinnati-
based Cinergy Corp. transmission system rose $4.15 to $40.59 a
megawatt-hour, with trades ranging from $39.00 up to $44.00 after
options expired.
Traders said prices rose as marketers who needed to buy power
had to pay premiums in late trading when a number of sellers left
the market.
They said revised cooler weather forecasts also contributed
to higher prices at the Cinergy hub and in the Mid-America
Interconnected Network.
In MAIN, peak power on the Chicago-based Commonwealth Edison
Co. grid sold about $4.00 higher than yesterday, with trades at
$34.00-$40.00. Peak power in lower MAIN sold up about $5.00 at
$35.00-$46.00.
Belton, Missouri-based Weather Derivatives inc. predicted
high temperatures would average 1 degree Fahrenheit above normal
in Cincinnati and 2 degrees above normal in Chicago over the next
week, down from forecasts of 7 and 5 degrees above normal Friday.
In the over-the-counter market, peak Cinergy power for
delivery from Jan. 22-26 sold at $53.00 and power for Feb. at
$53.75-$54.00 as prices converged with the end of one month and
beginning of the next.
"I think next week's a sell," one trader said. "Prices are in
the $40s right now, gas prices are coming down, and the weather's
supposed to stay mild for the next week or two, so there's no
reason for the dailies to trade up at that point."
Spot natural gas prices at the Cincinnati city gate fell 58
cents to trade at $8.50-$8.60 per million British thermal units.
In the Mid-Continent Area Power Pool, peak Monday power
prices rose throughout the day as some forecasts were revised to
reflect colder weather, traders said.
Peak power in northern MAPP sold 50 cents higher at $36.00-
$43.00 and power in southern MAPP $1.00 higher at $38.00-$45.00.
"There's been some weird weather forecasts, but it's still
winter here, so people are going to be ready for it to be colder
before they'll sit back and think it's going to warm up," one MAPP
trader said.
-Ken Fahnestock
Southeast Power Prices Mixed on Warmer Weather, Higher Demand
Atlanta, Jan. 16 (Bloomberg Energy) -- Peak spot power prices
in the U.S. Southeast were mixed today on warmer weather and
higher post holiday demand, traders said.
Belton, Missouri-based Weather Derivatives Corp., forecast
Southeast temperatures would average 3.3 degrees Fahrenheit above
normal over the next week, while the six to ten day forecast would
average 2.2 degrees below normal.
Peak power on the TVA grid sold for Wednesday at $36.00-
$40.00 a megawatt-hour, with the Bloomberg index down $2.17 to
$37.33.
"Temperatures are moderating, causing prices to come off,"
said one Southeast trader.
With forecasters calling for above normal weather through
most of next week, traders said there's little need for additional
power to meet utility demand requirements.
Entergy Corp., located in Russellville, Arkansas, peak power
sold $8.48 higher than yesterday, trading at $44.00-$51.00.
Traders said prices rose because Arkansas nuclear Unit 2 was shut.
The 858 megawatt nuclear 2 unit was taken off line Saturday
because of secondary system contamination and high turbine
generator vibration.
The Bloomberg Southeastern Electric Reliability Council
region peak index plunged an average of $3.39 to $44.05 a
megawatt-hour.
In northern portions of the Southwest Power Pool, power for
Wednesday sold today at $40.00-$43.00, 2.34 higher than yesterday.
"Since the holiday is over there is also a little post
holiday demand causing some prices to increase," said one
Southeast trader.
-Robert Scalabrino
U.K. Electricity Prices Fall Amid Rising Temperatures
London, Jan. 15 (Bloomberg Energy) -- Power prices in the
U.K. fell today after today's spot power price was announced
lower, arousing concerns that mild temperatures will stifle demand
load, traders said.
February 2001 baseload traded 65.00 pence lower after being
dealt at 18.50-19.05 pounds a megawatt-hour. Peak prices fell
50.00 pence, trading at 25.20 pounds a megawatt-hour.
Low temperatures this weekend across the British Isles pushed
demand to record levels, fuelling expectations for continued high
day-ahead prices this week.
That said, temperatures for the U.K. were forecast to average
between 4-7 degrees Celsius, according to Weather Services Corp.
in the U.S.
"The weekend was so cold that most traders probably came in
expecting today's price to be above last week's highest value of
25.15 pounds, that didn't happen and all of a sudden sentiment u-
turned to negative,'' a trader said.
Today's Pool Purchase Price was set at 23.41 pounds a
megawatt-hour, 15.00 pence below last Monday's price when
temperatures were higher.
Tomorrow's PPP, calculated by the Electricity Pool of England
and Wales, rose 4.70 pounds to 28.11 pounds a megawatt-hour.
Spot prices typically rise through the week when industrial
demand increases with rising productivity.
Day-ahead traded in a wide range, many participants
struggling to anticipate the level at which today's spot value
would be set, traders said.
Day-ahead baseload EFAs dealt between 24.45-27.75 pounds a
megawatt-hour, last trading at 25.40 pounds a megawatt-hour and
8.20 pounds higher than Friday.
First quarter 2001 baseload was executed at 18.70 pounds a
megawatt-hour, 40.00 pence below its previous close.
Trade today was defined by some as "unexceptional'', many
dealers eagerly awaiting the Jan. 31 EFA meeting in the hope the
ratification of the Grid Trade Master Agreement Version 1, will
allow them to trade structures for delivery past first quarter
2001.
The disagreements over the structure of the new post-NETA
contracts has led to the emergence of three new contracts, the
Grid Master Trading Agreements, the GTMA with Schedule 5 and the
EFA (GTMA Rider). All contracts trade the same period but are
distinguishable through varying conditions. The key issue causing
a division has been who should pay the transmission cost for any
trade.
NETA is supposed to be implemented March 27, 2001.
-Nick Livingstone
Nordic Power Prices Surge on Confirmed Dry, Cold Forecasts
Lysaker, Norway, Jan. 15 (Bloomberg Energy) -- Power prices
on the Nordic Power Exchange in Lysaker, Norway, closed higher
today because dry and cold conditions were expected to stimulate
consumer demand, traders said.
Week 4, 2001 contracts closed 14.75 Norwegian kroner higher
after being traded for 986.00 megawatts at 186.25-191.50 kroner a
megawatt-hour.
Week 5, 2001 traded 14.50 kroner higher following trades at
183.00-192.50 kroner a megawatt-hour, 892.00 megawatts trading in
the process.
Prices rose today, with most volume going through during the
early hours of the trading day as participants sought to increase
the value of contracts, traders said. Adding conflicting weather
forecasts between U.S. and Europe dampened prices later in the
morning.
"I think a lot of traders knew that not all forecast were
going to be favorable for higher prices and tried to get them as
high as possible as quickly as possible,'' a trader said.
As much as 7,991 gigawatt-hours of generation were traded
today on the exchange, 861 gigawatts more than Friday when 24
terawatt-hours were dealt both bilaterally and on Nord Pool.
Today's total cleared volume was forecast to be higher than on
Friday.
Temperatures in Norway will reach minus 8 degrees Celsius
this week, whilst Sweden and Finland will likely experience
temperatures between minus 4 to plus 1 degrees Celsius, according
to Weather Services Corp. in the U.S.
By mid-day, Greenwich Mean Time, several contracts began to
return some early gains amid a combination of profit taking and
concern over tomorrow's spot price, traders said.
Many traders, having bought aggressively this morning sold
later in an effort to realize profits before the markets on
conflicting weather reports.
That said, many contracts remained well supported, with an
abundance of buying interest keeping most structures well bid,
other traders said.
Tomorrow's spot price rose as expected, which traders said
increased concerns that it may have peaked.
Tuesday's system area average price rose 25.89 kroner, or
12.54 percent, to 232.39 kroner a megawatt-hour. It has risen
66.00 percent for the two days since Sunday.
Day-ahead over-the-counter structures for delivery Wednesday
traded at 240 kroner a megawatt-hour today, highlighting the
belief by some marketers spot prices could rise still, traders
said.
Summer 2001, the nearest tradable season, was the most
actively traded contract today, trading more than the more
sensitive and volatile week-ahead parcels.
Summer 2001 rose 11.45 kroner, 1,024.00 megawatts being dealt
between 123.50-131.25 kroner a megawatt-hour.
Volatile weather forecasts have driven up liquidity on the
Exchange, forcing Nord Pool to give notice of an increase in the
margin requirements from participants to ensure the risk of
default and non-payment is kept to a minimum, the company said.
-Nick Livingstone
-0- (BES) Jan/16/2001 21:42 GMT |
