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Bloomberg Energy Department
12/13 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 362.50 -312.50 350.00 375.00
Ca-Or Border 452.50 -172.50 430.00 475.00
NP15 387.50 -206.25 325.00 450.00
SP15 307.50 -233.50 300.00 315.00
Ault Colorado 350.00 -125.00 300.00 315.00
Mead 335.00 -187.50 320.00 350.00
Palo Verde 336.25 -136.53 320.00 350.00
Four Corners 330.00 -182.50 325.00 335.00
Mid-Continent
ECAR 69.20 -22.71 63.00 75.86
East 75.00 -13.00 74.00 76.00
AEP 67.00 -25.50 59.00 75.00
West 68.00 -24.50 60.00 75.00
Central 67.90 -23.19 59.00 75.00
Cinergy 67.90 -23.19 59.00 75.00
South 70.25 -23.95 65.00 80.00
North 68.33 -25.67 65.00 75.00
Main 72.56 -19.78 62.50 87.50
Com-Ed 68.70 -21.37 60.00 75.00
Lower 76.43 -18.17 65.00 100.00
MAPP 99.92 -40.91 75.00 125.00
North 99.00 -37.67 75.00 125.00
Lower 100.83 -44.17 75.00 125.00
Gulf Coast
SPP 85.00 -18.50 80.00 92.50
Northern 88.00 -39.00 78.00 100.00
ERCOT 55.00 -40.00 50.00 60.00
SERC 77.04 -6.66 72.34 81.98
Va Power 66.00 +25.00 60.00 70.00
VACAR 67.50 -9.50 62.00 70.00
Into TVA 70.25 -23.95 65.00 80.00
Out of TVA 76.02 -24.61 69.41 84.87
Entergy 80.00 -30.80 75.00 85.00
Southern 90.00 +10.00 90.00 90.00
Fla/Ga Border 85.50 +4.50 81.00 90.00
FRCC 110.00 +65.00 110.00 110.00
East Coast
NEPOOL 90.50 +0.50 90.50 90.50
New York Zone J 91.00 +7.50 90.00 92.00
New York Zone G 74.50 +1.00 73.50 75.50
New York Zone A 68.83 +6.13 65.50 73.50
PJM 67.08 -12.75 62.00 76.00
East 67.08 -12.75 62.00 76.00
West 67.08 -12.75 62.00 76.00
Seller's Choice 66.58 -12.75 61.50 75.50
End Table
Western Power Prices Fall With Warmer Weather, Natural Gas Loss
Los Angeles, Dec. 13 (Bloomberg Energy) -- U.S. Western spot
power prices declined today from a combination of warmer weather
across the region and declining natural gas prices.
According to Belton, Missouri-based Weather Derivatives Inc.,
temperatures in the Pacific Northwest will average about 2 degrees
Fahrenheit above normal for the next seven days. In the Southwest
temperatures will be about 3.5 degree above normal.
At the California-Oregon Border, heavy load power fell
$172.00 from yesterday to $430.00-$475.00.
"What happened to all of this bitter cold weather we were
supposed to have,'' said one Northwest power marketer. Since the
weather is not as cold as expected prices are drastically lower."
Temperatures in Los Angeles today will peak at 66 degrees,
and are expected to rise to 74 degrees this weekend.
Natural gas to be delivered to the California Oregon from the
El Paso Pipeline traded between $20-$21, down $3 from yesterday.
"Gas prices are declining causing western daily power prices
to fall,'' said one Northwest power trader.
At the NP-15 delivery point heavy load power decreased
$206.25 from yesterday to $325.00-$450.00. Light load energy fell
to $200.00-$350.00, falling $175.00 from yesterday.
PSC of New Mexico's 498-megawatt San Juan Unit 4 coal plant
was shut down this morning for a tube leak. The unit is scheduled
to restart this weekend.
At the Four Corners located in New Mexico, power traded at
$325.00-$335.00 plunging $182.50 from yesterday.
-Robert Scalabrino
PJM Spot Power Prices Dip With Weather, Falling Natural Gas
Philadelphia, Dec. 13 (Bloomberg Energy) -- Peak next-day
power prices declined at the western hub of the Pennsylvania-New
Jersey-Maryland Interconnection amid warmer weather forecasts and
falling natural gas prices, traders said.
The Bloomberg index price for peak Thursday power at western
PJM declined an average of $12.75 a megawatt-hour, with trades
ranging from $62.00-$76.00.
Lexington, Massachusetts-based Weather Services Corp.
forecast tomorrow's high temperature in Philadelphia at 40 degrees
Fahrenheit, up 7 degrees from today's expected high. Temperatures
could climb as high as 42 degrees by Friday.
"Most of the day's activity took place in the early part of
the morning," said one PJM-based trader. "By options expiration
the market had pretty much dried up."
Traders said that falling natural gas prices were the main
reason for the decline in spot market prices.
Bloomberg figures show that spot natural gas delivered to the
New York City Gate declined an average of $1.25 per million
British thermal units to $8.60-$8.90 per million Btu. Since
Monday, delivered natural gas prices have declined an average of
$2.44 per million Btu, as revised 6-10 day weather forecasts
indicated reduced utility load requirements.
In New York, prices rose as utilities withheld supplies they
normally would have sold, fearing a sudden change in weather
forecast could force them into high-priced hourly markets.
Peak next-day power at the Zone A delivery point sold $6.13
higher at a Bloomberg index price of $70.33, amid trades in the
$67.00-$75.00 range. Power at Zone J sold $7.50 higher at $90.00-
$92.00.
~
-Karyn Rispoli
Mid-Continent Power Prices Drop on Revised Forecast, Gas Prices
Cincinnati, Dec. 13 (Bloomberg Energy) -- U.S. Mid-Continent
next-day peak power prices plunged as forecasts were revised
warmer and natural gas values continued to decline, traders said.
The Bloomberg index price for peak Thursday power on the
Cincinnati-based Cinergy Corp. transmission system dropped $23.19
to $67.90 a megawatt-hour, with trades ranging from $75.00 as the
market opened down to $59.00 after options expired.
In Mid-America Interconnected Network trading, peak power on
the Chicago-based Commonwealth Edison Co. grid sold $21.37 lower
on average at $60.00-$75.00, while power in lower MAIN sold $18.17
lower at $65.00-$100.00.
Belton, Missouri-based Weather Derivatives Inc. predicted
high temperatures would average 2 degrees Fahrenheit above normal
in Chicago and at normal levels in Cincinnati over the next seven
days, up from 6 and 4 degrees below normal Monday, respectively.
Traders said falling spot natural gas values also pulled
prices down. Natural gas prices were a large factor in recent
electricity market surges because of a heavy reliance on gas-fired
generation to meet increased weather-related demand.
Spot natural gas at the Cincinnati city gate sold an average
of 95 cents less than yesterday at $7.80-$8.30 per million British
thermal units. Spot gas at the Chicago city gate sold an average
of 80 cents less at $7.65-$8.15 per million Btu.
"The weather's moderating and gas is down, so you've got
people coming to their senses," one trader said. "These are much
more realistic prices."
Traders said prices could decline further tomorrow if the
outlook for weather continues to be mild. Peak Cinergy power for
delivery from Dec. 18-22 was offered at $60.00, down from $90.00
yesterday.
Mid-Continent Area Power Pool peak spot power prices plunged
with warmer weather forecasts and increased available transmission
capacity, selling $37.67 less in northern MAPP and $44.17 less in
southern MAPP at $75.00-$125.00.
"What's happening is the people who don't have firm
transmission are getting into the market early and buying at those
high prices since they have no choice," one MAPP trader said.
"Then you've got some people who were lucky enough to get a
firm path who waited until later in the morning when ComEd prices
fell off," he said, "and bought from them at those lower prices,
causing the huge gap between the day's high and low trade."
-Ken Fahnestock
Southeast U.S. Electricity Prices Slump After Mild Forecast
Atlanta, Georgia, Dec. 13 (Bloomberg Energy) -- Southeast
U.S. peak spot power prices slumped today after warmer weather was
forecast for the region this week, traders said.
Traders said Southeast utility demand has been reduced since
many large population centers like Atlanta will see temperatures
climb into the mid-50s Fahrenheit later this week.
"There was nothing going on in Florida today," said one
southern energy trader. "Everything was going to markets in the
north."
Traders said supply was being routed from Florida into
markets on the Entergy Corp. and the Tennessee Valley Authority
grid in the mid-$70s a megawatt-hour.
"Prices into TVA started in the $80s and $90s and crumbled as
forecasts came out," said on Entergy power trader. "Prices,
declined to $60 and less."
The Bloomberg into TVA index price fell an average of $23.95
to $70.25 amid trades in the $65.00-$80.00 range. Off-peak trades
were noted at $32.00, several dollars higher than recent
estimates.
Southeast power traders said revised 6-10 day weather
forecasts and lower temperatures for the balance of this week
caused prices to decline in the region.
In the Southwest Power Pool, traders said warmer weather was
the main culprit behind lower prices.
"The cold weather's backing off," said one SPP utility
trader. "It was minus 35 degrees with the wind chill yesterday and
today it's about 9 degrees with the wind chill. Yesterday, it was
bitter cold and today it was just plain cold."
Power sold in northern sections of SPP at $78-$100, though
the Bloomberg index sank an average of 39.00 to $88.00. Southern
SPP traded at $82.00, $2 more than yesterday.
-Brian Whary
U.K. Day-Ahead Electricity Prices Rise Amid Increased Demand
London, Dec. 13 (Bloomberg Energy) -- Electricity prices in
the U.K. rose today after falling temperatures were expected to
increase household consumption for space heating, traders said.
The day-ahead baseload Pool Purchase Price, calculated by the
Electricity Pool of England and Wales, rose 1.46 pounds to 20.01
pounds a megawatt-hour.
Temperatures across the U.K. were forecast to fall 6 degrees
to 4 degrees Celsius by the weekend, according to Weather Services
Corp. in the U.S.
Day-ahead Electricity Forward Agreements dealt at 19.7-20.15
pounds a megawatt-hour, 2.1 pounds higher than yesterday.
December continued to fall amid a combination of position
closing prior to its expiry and continued belief that demand will
not rise sufficiently to justify high winter prices, traders said.
December 2000 baseload EFAs traded at 17.9-18.05 pounds a
megawatt-hour, 40 pence below yesterday's last trade.
First quarter and its constituent months fell, in line with
expectations that mild forecasts into the new year would continue
to stifle demand, traders said.
January 2001 baseload EFAs dealt between 24.6-24.73 pounds a
megawatt-hour, falling 17 pence.
First quarter 2001 baseload EFAs traded at 21.6-21.7 pounds a
megawatt-hour, 10 pence below its previous close.
Season structures traded on the U.K. Power Exchange, summer
2001 baseload trading unchanged at 18.15 pounds a megawatt-hour.
Winter 2001 baseload dealt 5 pence higher at 21.75 pounds a
megawatt-hour.
Open positions on many short-term structures will likely
force many traders to deal actively on those contracts in the run-
up to Christmas, traders said. Adding that other structures will
probably remain illiquid until the new year, when demand can more
easily be assessed.
-Nick Livingstone
Nordic Electricity Prices Climb Following Cold Weather Forecast
Lysaker, Norway, Dec. 13 (Bloomberg Energy) -- Power prices
on the Nord Pool exchange in Lysaker, Norway, closed higher today
as colder weather forecasts sparked active trade, traders said.
Week 51 dealt between 145-152 Norwegian kroner a megawatt-
hour, 6.62 kroner above yesterday's closing trade on 1,076
megawatts of traded volume. Week 52 rose 6.25 kroner, with 446
megawatts dealt between 134.50-140.25 kroner a megawatt-hour.
Supply from hydro-producers was expected to recede after
forecasts indicated reduced precipitation over Scandinavia for
next week. These producers typically generate power to prevent
reservoirs from overflowing.
Consumption, currently unseasonably low, was expected to rise
with falling temperatures because of increased requirements for
space heating.
Traded volume on the power exchange increased in active
trading on the beginning of typical winter conditions, traders
said.
"The market's been waiting for this day for a long time," a
Stockholm-based trader said. "For too long, people have been
selling because winter hasn't lived up to expectations. We should
now see a noticeable increase in the spot price."
Temperatures in parts of Scandinavia were forecast to fall
below freezing to minus 5 degrees Celsius, with only limited
chances for rain during the 5-day outlook, according to Weather
Services Corp. in the U.S.
The day-ahead system average area price fell after demand was
expected to remain limited until next week, when forecasts predict
temperatures to begin falling.
Thursday's system area price fell 1.57 kroner, or 1.22
percent, to 126.43 kroner a megawatt-hour. Traded volume fell
4,134 megawatts to 295,414 megawatts.
Many dealers anticipate that the spot price will likely rise
by 10-15 kroner by the start of next week.
Winter 1, 2001 forward structures rose in line with shorter-
term contracts.
Winter 1, 2001 dealt at 136.75-138.5 kroner a megawatt-hour,
1.9 kroner below yesterday's last trade at 135.25 kroner a
megawatt-hour.
Also, the delayed restart at a Swedish nuclear unit, although
expected, will likely allow abundant supply from hydro-producers
to meet the increased demand, other traders said.
Vattenfall's Ringhals 1, an 835-megawatt nuclear reactor,
will delay its restart at least until week 52, the company said.
Today's rapid increase was likely induced by traders who used
today's news to gain momentum for future increases, traders said.
-Nick Livingstone
-0- (BES) Dec/13/2000 21:04 GMT
=0F$
- daily.pdf