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Bloomberg Energy Department
05/14 Bloomberg Daily Power Report
Table
Bloomberg U.S. Regional Electricity Prices
($/MWh for 25-50 MWh pre-scheduled packages, excluding transmission=
=20
costs)
On-Peak
West Coast Index Change Low High
Mid-Columbia 205.40 -185.85 175.00 225.00
Ca-Or Border 203.33 -186.67 180.00 225.00
NP15 207.75 -189.39 175.00 228.00
SP15 205.00 -186.88 175.00 225.00
Ault Colorado 185.00 -155.00 175.00 225.00
Mead 225.00 -128.00 220.00 230.00
Palo Verde 220.48 -202.02 210.00 240.00
Four Corners 207.50 -177.50 200.00 220.00
Mid-Continent
ECAR 32.75 +1.68 30.18 35.00
East 35.50 +2.00 35.00 36.00
AEP 31.94 -1.46 29.75 34.00
West 31.50 +2.00 29.50 34.00
Central 31.17 +3.52 28.00 35.00
Cinergy 31.17 +3.52 28.00 35.00
South 34.44 +2.15 28.00 37.00
North 33.50 +0.00 33.00 34.00
Main 33.63 +3.88 30.75 37.25
Com-Ed 31.25 +2.25 29.50 34.50
Lower 36.00 +5.50 32.00 40.00
MAPP 46.78 +6.86 45.00 51.00
North 46.50 +7.17 45.00 50.00
Lower 47.06 +6.56 45.00 52.00
Gulf Coast
SPP 40.13 -0.51 39.50 41.50
Northern 39.50 +0.00 39.50 41.00
ERCOT 47.50 +2.25 46.00 49.00
SERC 37.35 +0.10 33.89 39.07
Va Power 35.00 -4.50 34.50 35.50
VACAR 37.00 +3.50 36.00 38.00
Into TVA 34.44 +2.15 28.00 37.00
Out of TVA 38.23 +1.80 31.72 40.99
Entergy 41.75 -1.25 35.00 44.00
Southern 37.00 +2.00 35.00 39.00
Fla/Ga Border 38.00 -3.00 37.00 39.00
FRCC 56.00 +1.00 54.00 58.00
East Coast
NEPOOL 45.95 -6.05 45.50 47.25
New York Zone J 58.50 -4.50 56.00 61.00
New York Zone G 49.75 -3.25 48.50 51.50
New York Zone A 38.50 -5.50 38.00 39.00
PJM 35.97 -5.48 35.00 36.75
East 35.97 -5.48 35.00 36.75
West 35.97 -5.48 35.00 36.75
Seller's Choice 35.47 -5.48 34.50 36.25
End Table
Western Power Spot Prices Sink Amid Weather-Related Demand
Los Angeles, May 14 (Bloomberg Energy) -- Most Western U.S.
spot power prices for delivery tomorrow slumped as supply
outstripped demand.
At the SP-15 delivery point in Southern California, peak
power dropped $186.88 to a Bloomberg index of $205.00 a megawatt-
hour, amid trades in the $175.00-$225.00 range.
"Air conditioning load is diminishing, which is causing
prices to decline," said one Southwest trader.
According to Weather Services Corp., of Lexington
Massachusetts, temperatures in Los Angeles were expected to reach
75 degrees Fahrenheit today and a low of 59 degrees tonight.
At the Palo Verde switchyard in Arizona, peak power sank
$202.02, or 47.82 percent, to a Bloomberg index of $220.48 as
traders executed transactions in the $210.00-$240.00 range.
Traders said that Arizona's Public Service Co. 1,270-megawatt
Palo Verde-1 nuclear plant in Wintersburg, Arizona, increased
production to 19 percent of capacity following the completion of a
scheduled refueling outage that began March 31.
At the Mid-Columbia trading point in Washington, peak power
slumped 47.5 percent from Friday's Sunday-Monday package to a
Bloomberg index of $205.40, with trades at $175.00-$225.00.
According to Belton, Missouri-based Weather Derivatives Inc.,
temperatures in the Pacific Northwest will average 1.2 degrees
Fahrenheit above normal over the next seven days, with cooling
demand 84 percent below normal.
"We are expecting rain in the Pacific Northwest which is
causing temperatures to drop," said one Northwest trader.
At the NP-15 delivery point in Northern California, peak
power fell $189.39 to a Bloomberg index of $207.75, with trades at
$175.00-$228.00.
According the California Independent System Operator today's
forecast demand was estimated at 30,827 megawatts, declining 743
megawatts tomorrow to 30,084 megawatts.
-Robert Scalabrino
Northeast Power Prices Fall With More Generation, Less Demand
Philadelphia, May 14 (Bloomberg Energy) -- An increase in
available generation coupled with less weather-related demand,
caused next-day power prices in the Northeast U.S. to fall as much
as 11.3 percent this morning, traders said.
According to Weather Derivatives Corp. of Belton, Missouri,
temperatures in the Northeast will average within one degree
Fahrenheit of normal over the next seven days, keeping heating and
cooling demand 88 and 96 percent below normal, respectively.
In the Pennsylvania-New Jersey-Maryland Interconnection, peak
power scheduled for Tuesday delivery was assessed at a Bloomberg
volume-weighted index of $35.97 per megawatt hour, down $5.48 from
Friday.
"There's just no weather out there," said one PJM-based
trader. "There's no need for air conditioning, and no need for
heating. As far as I can tell, it's going to be that way all week
long."
Peak loads in PJM are projected to average less than 30,000
megawatts through Friday.
Traders also cited increased regional capacity as a cause for
the dip. Interconnection data shows 1,675 megawatts returned to
service today, and an additional 1,232 megawatts are expected to
hit the grid tomorrow.
Next-day prices fell across all three zones of the New York
Power Pool, with increased output at the Nine Mile Point 1 and 2
nuclear power facilities.
The Nuclear Regulator Commission reported Nine Mile Point 1
at 90 percent of its 609-megawatt capacity following completion of
a refueling outage, and the 1,148-megawatt Nine Mile Point 2 at
full power following unplanned maintenance. Both units are owned
and operated by Niagara Mohawk.
Zone J, which comprises New York City, slipped $4.50 to
$58.50, while Zones G and A fell $3.25 and $5.50, respectively, to
$51.25 and $40.00 indices.
~
-Karyn Rispoli
Weather-Related Demand Drives Mid-Continent Power Prices Up
Cincinnati, May 14 (Bloomberg Energy) -- Day-ahead peak
power prices rose today in the Mid-Continent U.S. as high
weather-related demand was expected in the Midwest and Southeast,
traders said.
"It's supposed to be pretty warm in the TVA (Tennessee
Valley Authority) area, so everyone is looking to go from Cinergy
to there," one East Central Area Reliability Council trader said.
"Dailies and the bal(ance of) week are both stronger because of
that."
The Bloomberg index price for peak parcels delivered Tuesday
into the Cincinnati-based Cinergy Corp. transmission system rose
$3.52 to $31.17 a megawatt-hour, with trades ranging from $29.25
when the market opened up to $35.00 after options expired.
Cinergy power for Wednesday-Friday delivery sold at $39.00
and power for May 21-25 was offered at $45.50 as demand from the
Southeast was expected to remain high into next week.
Next-day power in TVA sold $2.15 higher on average at
$28.00-$37.00, with temperatures in Nashville, Tennessee,
forecast at 87 degrees Fahrenheit through Thursday.
"Things should continue along these lines for the rest of
the week, because there's enough power to get down there but not
so much that anyone can flood the market and crush prices," an
ECAR trader said.
In Mid-America Interconnected Network trading, demand from
the Cinergy hub and the Entergy Corp. grid pulled prices up,
though traders said transmission problems limited volume.
Peak Monday parcels sold $2.25 higher on average at the
Chicago-based Commonwealth Edison hub, trading at $29.50-$34.50,
and $5.50 higher on average in the lower half of the region, with
trades from $32.00-$40.00.
Mid-Continent Area Power Pool peak spot power prices also
climbed today, showing the largest increase in the region as
above-normal temperatures were expected and transmission problems
isolated the market from lower-priced eastern hubs.
For-Tuesday power sold $7.17 higher on average in northern
MAPP at $45.00-$50.00 and $6.56 higher on average in the southern
half of the region at $45.00-$52.00.
Lexington, Massachusetts-based Weather Services Corp.
predicted tomorrow's high temperature would be 85 degrees in
Minneapolis and 91 degrees in Omaha, Nebraska.
"There's no available transmission from ComEd, and problems
getting power out of Ameren's grid too," one MAPP trader said.
"It's likely to cause problems all week, since it's hot here and
down in SPP (the Southwest Power Pool)."
-Ken Fahnestock
Southeast Power Prices Mixed as Southern Markets Heat Up
Atlanta, May 14 (Bloomberg Energy) -- U.S. Southeast spot
electricity prices were mixed today as hot weather returned to
major Southern U.S. population centers, traders said.
Forecasters from Lexington, Massachusetts-based Weather
Services Corp. predicted daily high temperatures in the Atlanta
vicinity would peak tomorrow at 86 degrees Fahrenheit, 5
degrees higher than today's projected high. Cooler weather is
expected to begin Wednesday.
Conversely, in the Nashville, Tennessee, vicinity,
temperatures will remain in the high-80s to low-90s all week,
propelling air conditioning demand, traders said.
The Bloomberg Southeast Electric Reliability Council
regional index price rose 10 cents a megawatt-hour from
equivalent trades made Friday for delivery today, to $37.20.
Trades ranged from $26.50-$42.50.
On the Tennessee Valley Authority grid, power traded an
average of $2.15 higher at a Bloomberg index of $34.44 amid
trades in the $28.00-$37.00 range.
In Texas, day-ahead power prices rose 84 cents for UB firm
energy to a Bloomberg index of $47.50, though utility traders
complained of slack demand versus the same time in 2000.
"There's just no overnight load to do anything with the
supply we have," said one Texas-based utility power trader.
"Last year at this time, we saw a bunch of 93-95 degree
(Fahrenheit) days. This year so far, the highest we've seen is
85 degrees, so that's about 10 degrees below normal for us."
On the Entergy Corp. grid, day-ahead peak power for
tomorrow opened at $38.50-$42.00, though most trades were done
at a Bloomberg index of $40.25, $1.25 less than Friday. Traders
said forecasts for cooler weather through much of the South
starting Wednesday caused day-ahead prices to trade late at
$35-$36.
Traders said Southern Co. was purchasing day-ahead energy
at $37 from utilities in the Virginia-Carolinas region because
power from VACAR was cheaper than from utilities in SERC.
Southern day-ahead power traded $2 higher at a Bloomberg
index of $37, amid trades in the $35-$39 range.
In the forward power markets, Entergy power for the
balance of this week sold early today at $47.00, though later
trades were noted as high as $48.75. Balance-of-May Entergy
power was bid at $48, though few offers were heard, traders
said.
On the TVA grid, power for the balance of this week was
bid at $40, though the nearest offer was $45. Firm energy for
the balance of May was discussed at $41, though no new trades
were noted.
-Brian Whary
U.K. Power Prices Fall as Offers Continue to Outweigh Bids
London, May 14 (Bloomberg Energy) -- Power prices in the U.K.
fell for the fourth consecutive day amid continued heavy selling
interest, traders said.
Winter 2001 baseload traded as high as 21.52 pounds a
megawatt-hour and as low as 21.35 pounds a megawatt-hour, before
closing at 21.42 pounds a megawatt-hour, 11 pence lower than
Friday.
The contract has fallen around 82 pence since the start of
the month amid aggressive selling interest, mainly from one
trading house, which intended to buy back contracts where it was
short. Volatility in the contract today stemmed from opposition
from another trading house, which bought the contract, supporting
price levels, traders said.
Shorter-term contracts also fell today as warm weather was
expected to curtail heating demand and also amid lower production
costs because of falling natural gas prices, traders said.
June baseload power contracts fell 22 pence from Friday after
last trading at 18.35 pounds a megawatt-hour.
On the International Petroleum Exchange, June natural gas
futures traded 0.31 pence lower today after last trading at 21.15
pence a thermal unit. The contract has fallen by 1.74 pence since
the start of last week.
Some traders, however, remained reluctant to give fundamental
reasons for price movements because of the immaturity of the
market, given the recent launch of the new trading agreements.
Most trading activity was in an effort to find new price levels,
they said.
-Amal Halawi
Nordic Power Soars in Active Trade on Renewed Buying Interest
Lysaker, Norway, May 14 (Bloomberg Energy) -- Longer-term
electricity prices on the Nordic Power Exchange in Lysaker,
Norway, soared in active afternoon trade after participants rushed
to buy seasonal contracts in an attempt to close positions amid
limited hydro-supply, traders said.
Winter-2 2001 closed 6.00 Norwegian kroner higher at an all
time high of 214.50 kroner a megawatt-hour after a total 603.00
megawatts were exchanged as low as 207.25 kroner a megawatt-hour.
Winter-1 2002 jumped 5.65 kroner after discussions ranged 207.50-
214.00 kroner a megawatt-hour.
"The market crash everyone was waiting for never came; now
you have to pay higher prices to develop positions,'' an Oslo-
based trader said. "I'm surprised that even at the peak of the
snow melting season and in anticipation of wet weather, prices are
steadily climbing.''
Precipitation across Scandinavia was forecast at 200 percent
above normal for the next 10 days, according to U.S. forecasters.
Still, another trader said 170 percent above normal was a "more
realistic expectation following recent over-estimation of wet
outlooks.''
Tuesday's system area average price was set below expecations
of 195.00 kroner a megawatt-hour at 185.70 kroner a megawatt-hour,
down 7.45 kroner from today's price. Still, traders said this was
a "high'' spot price for this time of the year.
Week 21 closed down 1 kroner at 189 kroner a megawatt-hour
with 140 megawatts exchanged.
Trade volumes on Nordpool totalled 5,469 gigawatt-hours
generation, up 368 percent from Friday's 1,169 gigawatt-hours.
-Alejandro Barbajosa
-0- (BES) May/14/2001 19:33 GMT
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- daily.pdf