As temperatures rise, spot prices plummet

The deep freeze that triggered near-record electricity demand and soaring spot prices in much of the country has receded.

Energy Information Administration (EIA) figures posted Jan. 10 indicate that spot power prices in New England ($100.82/MWh); New York City (77.12/MWh); the Mid-Atlantic ($38.35/MWh) and the Midwest ($33.38/MWh) are less than half what they were earlier in the business week.

Eight of the 10 EIA reporting regions recorded lower spot power prices on Jan. 10 than the previous day. New York recorded a 61% price drop from the prior day.

On the gas front, all 10 reporting regions showed a decrease in their spot natural gas prices. The largest reduction in spot gas prices were found in New York (56%) New England (51%) and the Mid-Atlantic (21%).

New England still had the highest spot natural gas price at $9/mmBtu. The Nymex future price for February delivery of natural gas was $4.01/mmBtu, which represents a 5% drop from the prior day’s energy future price for gas.

A look at the National Weather Service’s predicted high temperatures for several cities in the Midwest and East shows a heat wave compared to a couple of days earlier: Minneapolis (32 degrees F); Boston (37 degrees); Chicago (39 degrees); Baltimore (42 degrees) and New York (43 degrees).

Meanwhile, the NWS finds many areas of hazardous weather across the United States on Friday, Jan. 10.

A wintry mix of freezing rain and snow will affect the Mid-Atlantic and Northeast Friday, gradually changing to rain through the day. Flooding potential is high for the Northeast this weekend. High winds and heavy snow will impact the northern and Central Rockies, while a storm moving into the Pacific Northwest will bring heavy rain and snow to that region, according to the weather service.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.