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The Eastern Interconnect is experiencing a short bout of above normal temperatures putting a bid to cash power across the region. PJM West cleared $64.19 for today’s DA market while tomorrow is valued at $49.25 before the rest of the week settles back into the mid-$30s as weather moderates. The Jul18-Aug18 on peak contracts rallied on the week following gas higher. PJM West summer settled $39.55 on the week representing a $1.00 increase while Mass Hub increased just shy of $1.00 to settle $37.20. Term markets rallied slightly following NYMEX but overall the move was rather inconsequential as the market is void of any real news in that tenor.

Electricity Price Trends

Price Trends At Key Trading Points ($/MWH)

price trends

June has been rather uneventful in the East as weather has moderated after the end of May. PJM West cleared $30.75 last week with prices estimated to be roughly in the same range this week. Summer PJM West retreated back to its comfortable range between $38-$39 as there still continues to only be moderate fear over extreme weather as this looks to be blunted by a healthy generation stack and unconstrained natural gas delivery capabilities. Term power prices in the region grinded lower on the week following natural gas slightly lower.

12 month strip price

strip price

Cash markets moved higher when compared to the prior week as SP15 gained $6.80 to average $34.60 while Mid C moved up $5.92 to average $21.56. Mid C continues to lose generation from hydro resources as the seasonal runoff declines and non-hydro resources replace this generation in the stack. SP15 load continues to move up as would be expected for this time of the year but summer markets were roughly unchanged on the week with Q318 settling ~ $49.00 on the week. Term markets were generally flat to down regardless of the fact gas that gas was supportive on the week with modest increases.

Other News

Natural Gas Price Trends

Northeast spot natural gas prices ($/MMBTU)

Natural gas spot

NYMEX HH 5-year futures

Natural gas spot

 

All information is pulled from Macquarie and Crius internal databases as of June 2018. All materials published on this document are based on real-time and/or historical data, and are for informational purposes only. Crius Energy makes no representations or warranties, express or implied, as to the quality, accuracy, completeness, or reliability of the information provided here. Crius Energy accepts no responsibility for any loss, damage, costs or expense (whether direct or indirect) incurred as a result of any error, omission or misrepresentation of any information on this page. This content includes predictions, estimates, or other information that might be considered forward-looking. Any forward-looking statements contained herein are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements.